Indian Banking Sector

Banking liquidity deficit hits highest in 6 months on advance tax payments

Indian companies' advance tax payments, which come due in the last month of each quarter, are adding to the liquidity strain

IndusInd Bank share drops 3%, hits 52-week low as UBS slashes target price

The fall in the IndusInd Bank share price came after Zurich, Switzerland-based brokerage UBS slashed its target price to Rs 1,150 per share, according to reports

Indian banks reviewing exposure to Adani Group after US indictment

SBI has the largest exposure to the Adani Group among Indian banks, with sanctioned loans of Rs 33,800 crore ($4 billion)

AIBEA deplores govt's order to PSBs on employee performance review

The need of the hour is to stand by the side of the employees and officers to boost their morale and ensure a congenial working atmosphere, AIBEA added

IBPS Clerk 2024: Prelims scorecard now available at ibps.in; details inside

The Institute of Banking Personnel Selection has declared the IBPS Clerk Prelims Score Card 2024 today, October 4, 2024 on the official website of IBPS at ibps.in

Banks record a higher deposit growth rate in Q2 FY25 than Q1 FY25

Four out of five banks have recorded growth at least 2-3 per cent higher than the pace seen in the quarter ended June 2024

HDFC Bank says sequential rise in deposits outpaced loan growth in Q2

Deposits rose 5.1 per cent from the previous quarter to Rs 25 trillion, after no sequential change in April-June

Finance Ministry urges DRTs, banks to expedite loan recovery processes

FinMin calls on DRTs to engage borrowers in smaller cases outside tribunals to alleviate pendency burden

Finance ministry asks banks to set up oversight mechanism for pending DRTs

The Finance Ministry on Saturday asked banks to put in place effective monitoring and oversight mechanisms for efficient management of pending cases in Debt Recovery Tribunals (DRTs). Financial Services Secretary M Nagaraju, who chaired a meeting with chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery of Tribunals (DRTs) also discussed some of the best practices followed in DRTs. It has been emphasied that some of the best practices can be adopted across DRTs for better outcomes, an official statement said. During the meeting it was also deliberated that banks should clearly define the policy for small and high-value cases pending in DRTs for optimising the recovery and all stakeholders should work collectively to reduce pendency and take effective measures for optimisation of recovery. Faster recovery would help in ploughing back the capital stuck in pending cases to the economy for productive use, it said. While formulating settleme

HDFC Bank likely to close $1 billion loan sale this month: Report

HDFC Bank merged with parent Housing Development Finance Corp in July 2023, adding a large pool of mortgage loans to the bank's portfolio but a much smaller amount of deposits

Axis Bank expands wealth management services across 15 new cities

Axis Bank on Monday said its private banking business Burgundy Private will expand its wealth management services to 15 new cities, increasing its presence to 42 locations across India. With this strategic move, Burgundy Private will now offer its bespoke wealth management services tailored to the unique needs of discerning clients in India's rapidly evolving Tier 2 markets, Axis Bank said in a statement. The new locations, to start with, include Bhubaneswar, Patna, Raipur, Agra, Ghaziabad, Jodhpur, Udaipur, Jalandhar, Meerut, Belgaum, Kozhikode, Thiruvananthapuram, Aurangabad, Nagpur, and Gandhidham, it said. By leveraging its expertise, technology, and data analytics, Burgundy Private aims to deliver personalised solutions that meet the evolving expectations of affluent clients in these emerging geographies, it said. Burgundy Private has an AUM of nearly Rs 2.07 trillion, a 33 per cent increase YoY, and currently manages wealth for over 13,000 families across 27 cities.

Consumption loan portfolio expands 15% to Rs 90 trillion in FY24: Report

India's consumption loan portfolio grew by 15.2 per cent year-on-year (YoY) to Rs 90.3 lakh crore as of March 2024, according to the latest credit bureau report. The fourth edition of CRIF High Mark report noted a slowdown from the 17.4 per cent growth recorded in March 2023, largely due to a deceleration in the home loans segment, which accounts for 40.1 per cent of the overall consumption loan portfolio by value. The home loans portfolio saw growth slowing down to 7.9 per cent YoY in FY24, from the 23 per cent expansion seen in FY23. This was mainly due to muted growth in "originations", which increased by 9.2 per cent in FY'24 compared to 18.2 per cent in the previous fiscal year. Origination refers to the process by which a lender creates or initiates a new loan or credit, including evaluating, processing, and approving a borrower's application. The report finds a shift toward higher ticket sizes, with a growing preference for loans above Rs 35 lakh, although the average ticket

Banks facing challenge in getting cyber security talent: SBI chairman

He said SBI has been able to create resilience in the system. While ensuring this, the country's largest lender had to ensure an improved customer experience against the backdrop of legacy systems

Root of C-D mismatch: Major banks aren't competing for savings deposits

The savings bank deposit interest rate was the last one to be deregulated by the RBI after all other interest rates were deregulated

IBA likely to seek easing of proposed norms for retail deposits: Report

The RBI had sought feedback on the proposal until Aug 31, after which it would finalise them for implementation from April 2025

SBI working on new version of digital banking platform: Dinesh Khara

Former SBI Chairperson Dinesh Khara on Thursday said the country's largest lender is working on a new version of its digital banking platform to take care of its customers' requirements and preferences. In his special address at the Global Fintech Fest 2024 here, Khara, who superannuated on Thursday, also said that a banker should always keep risks in mind, even though people tend to ignore the risk but that shouldn't happen. "We had envisaged YONO only as a retail solution and initially it was thought to replace internet banking but when we launched it, we thought that it should be much more than that, (as) it serves all banking and financial needs today. We're working on YONO 2.0 where it should be made more modular and faster in terms of processing," Khara said. Stating that YONO has 80 million registered users today with almost 10 million users logging in at the platform each day, he said in many respects, it would be a record of sorts across the globe. Last year, the platform

Sonata Finance to merge with BSS Microfinance: Kotak Mahindra Bank

As per the scheme of amalgamation approved on Monday, Sonata would merge with BSS Microfinance Ltd on a going concern basis, Kotak Mahindra Bank said in a regulatory filing

Dhanlaxmi Bank Q1 results: Total income down at Rs 338 cr, loss at Rs 8 cr

Dhanlaxmi Bank on Monday reported a loss of Rs 8 crore for the first quarter of the current financial year. Against this, the bank had earned a net profit of Rs 28 crore in the April-June quarter of FY24. The bank's total income declined to Rs 338 crore in the first quarter as against Rs 341 crore in the same period a year ago, Dhanlaxmi Bank said in a regulatory filing. During the quarter the bank earned interest income of Rs 306 crore as against Rs 289 crore in the same period a year ago. The bank's gross non-performing assets (NPA) of the total advances declined to 4.04 per cent in the first quarter from 5.21 per cent at June-end last year. However, net NPAs rose to 1.26 per cent in June 2024 against 1.09 per cent same period a year ago.

Banks should bring in innovative products to mobilise deposits: Sitharaman

Finance Minister Nirmala Sitharaman on Saturday asked banks to come up with innovative and attractive schemes to mobilise deposits. Addressing the media after the board meeting of the Reserve Bank of India, she said that deposits and lending are the two wheels of a cart and "deposit is moving slowly." The banks, she stressed, need to focus on core banking business which is mobilising deposits and lending to those who need funds. In order to overcome the mismatch between deposits and lending, Sitharaman asked banks to come up with "innovative and attractive" deposit schemes to mobilise funds from the people. RBI Governor Shaktikanta Das said that interest rates are deregulated and often banks raise deposit rates to attract funds. "Banks are free to decide on interest rates", Das added. RBI Governor Shaktikanta Das while unveiling the bi-monthly monetary policy earlier in the week, also had expressed concern of deposit-lending mismatch in the banking sector. He had said that banks

CSB Bank Q1 results: Profit falls 14% to Rs 113 cr due to rise in bad loans

CSB Bank on Monday reported a 14 per cent decline in the June quarter net profit at Rs 113 crore due to an increase in bad loans. The private sector lender had earned a net profit of Rs 132 crore in the year-ago period. However, total income increased to Rs 1,004 crore from Rs 803 crore a year ago, CSB Bank said in a regulatory filing. Interest income grew to Rs 832 crore during the period under review, from Rs 683 crore a year ago. The bank's asset quality worsened as Gross Non-Performing Assets (NPAs) rose to 1.69 per cent of gross advances as of June 30, 2024, from 1.27 per cent at the end of the first quarter of the previous fiscal. Net NPAs also increased to 0.68 per cent of the advances, from 0.32 per cent at the end of the first quarter last year. As a result, provisions and contingencies increased to Rs 20 crore from Rs 5 crore earmarked during the same quarter a year ago. The capital adequacy ratio of the bank improved to 23.61 per cent, as compared to 25.99 per cent on