Page 3 - Indian Banking Sector

Fresh NPAs of private, public banks to pick up in FY25, says ICRA

Experts said that the expectation of an increase in fresh slippage rate in FY25 is built on the premise of seasoning of recently originated credit portfolios

Credit growth, quality assets likely to spur bank profits in Q4 FY24

Reserve Bank of India data showed bank loans grew by 20.2 per cent YoY growth in advances to Rs 164.34 trillion and deposits expanded by 13.5 per cent growth on YoY basis

HDFC Bank's gross advances surge 55.4% to Rs 25.08 trn in Q4 FY24

The bank's domestic retail loans grew by around 108.9% over the year-ago period and rose by 3.7% over Q3 FY24 figures

Banks' GNPAs set to improve further to 2.1% by FY25: Care Rating

The gross non-performing assets (GNPA) of the Indian banking system are set to improve further to up to 2.1 per cent by the end of FY25, a report said on Friday. GNPAs are likely to come at 2.5-2.7 per cent in FY24 and will improve further to 2.1-2.4 per cent by the end of FY25, domestic rating agency Care Ratings said in the report. It can be noted that the Reserve Bank of India (RBI) began the comprehensive exercise in the middle of the last decade by instructing banks to classify certain stressed assets as NPAs so that the balance sheets represent a true picture. The rating agency also flagged a list of downside risks, which may result in its estimate not coming true, including a material weakening in asset quality due to the elevated interest rates, the impact of regulatory changes, a tighter liquidity environment and global issues. It said GNPAs surged to 11.2 per cent in FY18 from 3.8 per cent in FY14 due to the AQR process of 2015-16, which pushed banks to recognise NPAs and

TMB shareholders take the legal route to fast track MD appointment

Krishnan Sankarasubramaniam, TMB's managing director and chief executive officer, resigned from his position on September 28, 2023. He continues to serve until a new appointment is confirmed

6 in 10 find hidden charges on online banking platforms, shows data

The survey received over 44,000 responses from users of online banking located in 363 districts of India. Its findings are related to 'dark patterns'

Banks' lending rate hit 46-month high in Jan; for fresh deposits in Aug

The weighted average lending rate by scheduled commercial banks on fresh loans increased to 9.45 per cent in January 2024 compared to 9.32 per cent in December 2023

After muted Q3 results, HDFC Bank stock may have bottomed out

However, HDFC Bank seems to have bottomed out in mid-February when it hit a 52-week low of Rs 1,363

Rs 2,000 notes withdrawal: Currency-in-circulation growth dips to 3.7%

The growth in currency in circulation decelerated to 3.7 per cent for the week ended February 9 from 8.2 per cent a year ago, reflecting the impact of the decision of the Reserve Bank of India (RBI) to withdraw Rs 2,000 banknotes. Currency-in-circulation (CiC) refers to notes and coins in circulation, while currency with the public comprises notes and coins in circulation minus cash with banks. According to the RBI, commercial banks have reported double-digit growth in deposits in January, which too can be attributed to withdrawal of Rs 2,000 currency notes. The growth of Reserve Money (RM), as per the RBI data, decelerated to 5.8 per cent as on February 9, 2024 from 11.2 per cent a year ago (8.8 per cent adjusted for the first-round impact of change in Cash Reserve Ratio (CRR). Components of RM include CiC, banks' deposits in RBI and other deposits with the central bank. The growth in CiC , the largest component of RM, decelerated to 3.7 per cent from 8.2 per cent a year ago, ..

RBI allows banks, non-banks to issue PPIs for public transport systems

The regulator amended guidelines for prepaid payment instruments for mass transit systems (PPI-MTS). It said such PPIs can be issued without Know Your Customer (KYC) verification of the holders

@Paytm UPI handles to be smoothly migrated from Paytm Payments Bank: RBI

NPCI asked to help Paytm app continue operations

Goldman Sachs downgrades SBI, ICICI Bank, says 'Goldilocks period' ending

The brokerage has downgraded SBI and ICICI Bank to 'Neutral' from 'Buy'; and downgraded YES Bank to 'Sell' from 'Neutral'

Bandhan Bank's micro challenges: Unsecured loan book, CEO's tenure

Microloans are unsecured. Conscious of this, the Kolkata-based Bandhan acquired affordable housing finance company Gruh Finance in 2019 from what was then HDFC Ltd

Bandhan Bank appoints Rajeev Mantri as CFO effective from February 22

Ghosh took charge as the Interim CFO from October 20, 2023, after Sunil Samdhani resigned from the post of CFO effective September 30, 2023, to explore opportunities outside the bank

Axis Bank's profitability under pressure on NIM contraction: Moody's

Affirms 'Baa3' long-term deposit ratings

Paytm app may face a permanent loss of integrated mobile wallet feature

RBI unlikely to issue new wallet licence due to previous track record: Sources

RBI Governor asks bank CEOs to maintain vigil around risks build-up

Das also highlighted the issue of high growth in personal loans, which has been an outlier among other categories. He also talked about banks' exposure to non-banking finance companies

Need more 'SBI-sized' banks: Nirmala Sitharaman on India's economic push

Experts suggest that given the economic size of India and its acceleration towards being the third largest economy, at least a couple of banks of global size are required to facilitate the growth

CSB Bank Q3 results: Profit falls 4% to Rs 150 cr, NPAs declines to 1.22%

CSB Bank on Monday posted a 4 per cent decline in its profit at Rs 150 crore in the third quarter ended December 2023. The Kerala-based private sector bank had earned a net profit of Rs 156 crore in the same quarter a year ago. The total income increased to Rs 887 crore during the quarter under review, as against Rs 682 crore in the same period last year, CSB Bank said in a regulatory filing. The interest income of the bank rose to Rs 762 crore, as against Rs 592 crore in the third quarter of previous year. As regards, asset quality, gross Non-Performing Assets (NPAs) of the bank declined to 1.22 per cent of the gross loans by the end of December 2023, from 1.45 per cent a year ago. Similarly, net NPAs or bad loans came down to 0.31 per cent, from 0.42 per cent at the end of the third quarter of the previous fiscal.

Tight liquidity spurs high demand at RBI's variable rate repo auction

Banks bid for Rs 3.08 trillion against notified amount of Rs 2.5 trillion