Banks In India

Banks offering more green loans have better financial stability: IIM study

Banks that have a greater proportion of green loans experience long-term improvements in financial stability, according to research by the Indian Institute of Management (IIM), Lucknow. The study published in the prestigious Finance Research Letters journal found that expansion of non-carbon intensive lending can improve the core of loan portfolios of Indian banks. The findings underscore the strategic importance of sustainable lending in the Indian banking system. A green loan is a form of financing that enables borrowers to use the proceeds to exclusively fund projects that make a substantial contribution to an environmental objective. According to Vikas Srivastava, ONGC Chair Professor, IIM Lucknow, despite global initiatives to create uniform frameworks for green lending, there are significant gaps in providing incentives, particularly in developing economies such as India. "Most Indian banks are heavily dependent on lending to carbon-intensive industries as there is no clear

Action against banks, NBFCs if they violate gold auction norms: Sitharaman

Finance Minister Nirmala Sitharaman on Monday said action will be taken in case there are violations of well laid down processes for auctioning of gold by banks and NBFCs when a borrower fails to pay the gold loan. During Question Hour in Lok Sabha, she said Non Banking Financial Companies (NBFCs) and Scheduled Commercial Banks (SCBs) are guided by similar rules. There are very well laid down and tight processes in place for auctioning of gold by NBFCs and banks in case a borrower fails to pay the gold loan. These processes are followed by NBFCs and banks, she told Lok Sabha. There is a process for giving enough number of notices to bank account holders to say their servicing is not up to the mark. In the eventuality of a borrower not coming back to pay, the bank or NBFC will be forced to go for an auction, the minister said. Sitharaman stressed that even while going for an auction, there are very well laid out procedures and tight processes. "... if these processes are violated,

Bank holidays in February 2025: Banks to remain closed on these days

A list of bank holidays in February 2025 has been released by the Reserve Bank of India (RBI). Due to regional festivals, banks will be closed for 14 days next month

Investors grow selective with weaker Indian shadow banks after debt binge

For investors, buying into India's debt presents a chance to tap into one of the world's fastest-growing economies, earn higher yields, and diversify away from China

Bank Holiday on Lohri 2025: Will banks be closed on Jan 13? Details here

Bank Holiday on Lohri 2025: During holidays, while banks may be closed, several banking services such as ATMS and online banking will remain available

Low NPAs, credit growth to help PSU banks cross Rs 1.5 trn profit in FY25

Low NPAs and double-digit credit growth are expected to drive profits of public sector banks past the Rs 1.5 lakh crore milestone in 2024-25. PSBs reported a 25 per cent jump in their total net profit to Rs 85,520 crore in the first half of 2024-25 compared to Rs 68,500 crore in H1'FY23 and the trajectory is likely to continue in the second half as well. Public lenders recorded their highest-ever aggregate net profit of Rs 1.41 lakh crore in 2023-24 on the back of significant improvement in asset quality, credit growth, healthy capital adequacy ratio and rising return on assets. The Gross NPA ratio of PSBs has witnessed a remarkable improvement, declining to 3.12 per cent in September 2024 from a peak of 14.58 per cent in March 2018. This significant reduction reflects the success of targeted interventions aimed at addressing stress within the banking system. Another indicator of the improved resilience of PSBs is their Capital to Risk (Weighted) Assets Ratio (CRAR), which rose by

Banks mobilise Rs 8 trn via Certificates of Deposits issuance in '25 so far

According to data compiled by Primedatabase, CD issuances in FY25 (up to December 13) have totalled Rs 7.93 trillion

NOTTO urges states, UTs to act against eye banks not meeting targets

The step comes as NOTTO looks to link all cornea transplant centres and tissue banks, including eye banks, with a national registry database of patients maintained by it

Banks can claim deductions for broken period interest: Supreme Court

Broken period interest is the interest paid by a bank when purchasing government securities between coupon payment dates

Federal Bank Q1 results: Profit rises 17% to Rs 1,027 cr on loan recoveries

South India-based Federal Bank on Wednesday reported a 16.74 per cent growth in consolidated net profit to Rs 1,027.51 crore for the June quarter, helped by higher recoveries from written-off accounts. The private sector lender's net profit grew to Rs 1,009.53 crore on a standalone basis, up from Rs 853.74 crore in the year-ago period. Its core net interest income moved up 19 per cent to Rs 2,292 crore during the reporting quarter on the back of a nearly 20 per cent growth in advances, while margin moderated to 3.16 per cent from 3.21 per cent in the preceding March quarter. Federal Bank Managing Director and Chief Executive Shyram Srinivasan, who will be demitting office in September after being at the helm for 15 years, told reporters that the bank is aiming to keep the net interest margin (NIM) between 3.15 and 3.25 per cent. The bank is aiming to keep all credit costs at 0.30-0.35 per cent, he said, adding that the bank is not focused on looking at the NIM number in isolation,

Jana SFB Q1 result: Net profit rises 89% to Rs 171 cr, NII up at Rs 610 cr

Jana Small Finance Bank on Monday reported an 89 per cent jump in its post-tax net profit to Rs 171 crore for the April-June quarter. The lender had reported a profit after tax of Rs 90 crore in the year-ago period. The core net interest income grew to Rs 610 crore from Rs 462 crore in the year-ago period on the back of a 25 per cent growth in advances and a 0.4 per cent expansion in the net interest margin to 8 per cent. The non-interest income was flat at Rs 189 crore for the reporting quarter. Amid the sluggish deposit growth in the system, the bank seems to have ducked the trend with a 41 per cent growth in the number. Its gross non-performing assets ratio increased to 2.62 per cent in June against 2.11 per cent at the end of the preceding March quarter, which was attributed to seasonal and event-driven factors by its managing director and chief executive Ajay Kanwal. The overall capital adequacy as of June 30 stood at 19.3 per cent against 18.7 per cent in the year-ago ...

Bank holidays in July: Banks to remain closed for 12 days; details here

The RBI publishes a list of bank holidays each month, advising customers to check the list to avoid unnecessary trips to the bank on holidays

Banks seek clarification on RBI's credit card network choice guidelines

The Reserve Bank of India's directive, which will go into effect in September, requires banks and non-banking financial companies to provide customers options to choose multiple card networks

CLSA thinks pvt banks may outperform PSBs ahead; check reasons, top picks

CLSA expects private sector banks, which have been stock market laggards over the past few months, to give better returns ahead, given a good business outlook and inexpensive valuations

Banks could boost revenues by 6% with Generative AI: Accenture report

Banks can significantly increase employee productivity and revenues by incorporating generative AI (GenAI) in their operations, according to a report by IT company Accenture. Accenture analysed publicly available employee data to estimate the impact of generative AI on banking tasks. The company modelled the financial implications for over 150 large banks globally, including Indian public and private sector banks, over a three-year period. "Banks that move quickly to scale generative AI across their organisations could increase their revenues by up to 600 bps (basis points) in three years," the research revealed. Banks which effectively adopt and scale generative AI could increase employee productivity by up to 30 per cent by streamlining numerous language-related tasks, it said. "Operating income could increase by around 20 per cent, while return on equity levels could rise by 300 bps...By helping banks operate more efficiently, the technology could lead to 1-2 per cent in cost ..

Banks form special panel to address corruption cases, guard executives

The committee will include representatives from three state-run banks and be led by former CBI Special Director DC Jain

Banks urge return to call option valuation for perpetual bonds: Report

They added that the recommendation was currently under review with the NFRA, a regulator that oversees auditing, which will submit its views to a panel of top regulators

Banks, finance companies lost out in 2023 despite record earnings

BFSI firms hold a weighting of 34.5%, down from 36.7% at the end of Dec 2022

Total income of Indian banks' overseas branches more than doubles in FY23

The total income of branches more than doubled to Rs 60,596 crore in FY23 from Rs 22,947 crore in FY22. The expenses grew to Rs 51,479 crore in FY23 from Rs 19,709 crore

Higher credit demand likely to lead to further upsides for banks

The RBI's increased risk weightage will hit growth in personal loans, credit cards and NBFCs