Page 12 - Indian Banking System
India's bank liquidity surplus rises after a sharp drop last week
India's banking system liquidity surplus rose to more than 2 trillion rupees on Wednesday, after dropping to a near three-year low below 500 billion rupees ($6.34 billion) last week.
 "India's bank liquidity surplus rises after a sharp drop last week")
After PMC Bank, Wadhawans duped Indian Bank of Rs 279 crore
The Chennai-based public sector Indian Bank has admitted to a major loan default of Rs 279 crore by the realty group, Housing Development & Infrastructure Ltd (HDIL) Mumbai, and its suspended Directors -- Rakesh Kumar Wadhawan and son Sarang Wadhawan.
 "After PMC Bank, Wadhawans duped Indian Bank of Rs 279 crore")
State Bank of India changes ATM withdrawal rules; Check new guidelines here
In a bid to protect the customers against ATM frauds, a withdrawal of or more than Rs 10,000 from the SBI account will now be possible only on entering the OTP in the ATM
 "State Bank of India changes ATM withdrawal rules; Check new guidelines here")
Understanding Positive Pay System necessary to encash cheques from August 1
Several banks including BoB and SBI have issued notifications asking customers to register under PPS before August 1 to encash high-value cheques
 "Understanding Positive Pay System necessary to encash cheques from August 1")
Banks likely to lose Rs 11,790 cr in Q1 on bond rally, says report
Banks are unlikely to take a big hit on profitability this quarter due to rising bond yields, which may eat up 5.3 per cent (Rs 11,790 crore) of their net income in the worst-case scenario
 "Banks likely to lose Rs 11,790 cr in Q1 on bond rally, says report")
IndusInd Bank's board gives nod to mobilise Rs 20,000 cr via debt
Private lender IndusInd Bank of Monday said its board has approved a proposal to raise Rs 20,000 crore in debt to fund business growth.
 "IndusInd Bank's board gives nod to mobilise Rs 20,000 cr via debt")
HDFC Bank lost Rs 50k-cr corporate loans as competitors offered lower rates
Merger-related dispensations separately handled by RBI, says HDFC Bank CFO Srinivasan Vaidyanathan
 "HDFC Bank lost Rs 50k-cr corporate loans as competitors offered lower rates")
Negative interest rate and financial repression
Investments drive growth but how will investors get funds if the savings pile shrinks with no incentive to save in a negative interest rate regime?
Govt revamps Banks Board into Financial Services Institutions Bureau
Guidelines for selection of general managers and directors of public sector general insurance companies have been made part of FSIB
 "Govt revamps Banks Board into Financial Services Institutions Bureau")
S&P affirms ICICI Bank's 'BBB-' rating on improved asset quality
As S&P affirms ICICI Bank's BBB rating, an upgrade over the next one to two years is unlikely as that would require an improvement in the bank's financial profile
 "S&P affirms ICICI Bank's 'BBB-' rating on improved asset quality")
End arbitrary account-freeze by banks
A longer-term solution is to allow customers to easily vote with their feet
Non-banks not allowed to load credit lines on prepaid wallets, cards: RBI
RBI has asked fintech to stop this practice immediately. The change will come into effect on July 1
 "Non-banks not allowed to load credit lines on prepaid wallets, cards: RBI")
Early assessment of banking sector health encouraging: RBI deputy guv
"The asset quality of banks has improved and the gross NPAs and net NPAs of the banks have improved from the pre-pandemic levels," Rao said
 "Early assessment of banking sector health encouraging: RBI deputy guv")
Credit card linkage to UPI: Uncertainty over pricing leaves players in dark
There is no clarity on whether linking to UPI facility will be extended to credit cards of other card networks, such as Visa, Mastercard, American Express, etc
 "Credit card linkage to UPI: Uncertainty over pricing leaves players in dark")
Banks to take Rs 37,200-cr hit by liquidating 10 power projects: BofA
Combined capacity is 10.5 Gw; projects fail to find any takers under insolvency process
 "Banks to take Rs 37,200-cr hit by liquidating 10 power projects: BofA")
HDFC Bank sees profits more than doubling to $15 bn in 5 years after merger
CEO Jagdishan tells analysts merger with HDFC gives the lender the opportunity to double balance sheet every five years
 "HDFC Bank sees profits more than doubling to $15 bn in 5 years after merger")
HDFC raises interest rate by 5 bps; ICICI Bank raises MCLR by 30 bps
As of December 2021, a little over 39% of banking system loans are linked to the external benchmark, shows RBI data
 "HDFC raises interest rate by 5 bps; ICICI Bank raises MCLR by 30 bps")
Union Bank to raise up to Rs 8,100 cr in capital for business expansion
The lender's board approved raising equity capital up to Rs 3,800 crore, within overall limit of Rs 8,100 crore, said the company in filing with BSE
 "Union Bank to raise up to Rs 8,100 cr in capital for business expansion")
BOI Q4 net profit rises 142.3% to Rs 606 cr on margin improvement
The Mumbai-based BOI's net interest income (NII) expanded by 35.77 per cent to Rs 3,986 crore in Q4FY22 from Rs 2,936 crore in Q4FY21
 "BOI Q4 net profit rises 142.3% to Rs 606 cr on margin improvement")
Tamilnad Mercantile Bank's Q4 net rises 36%, total income increases 9%
Tamilnad Mercantile Bank's Q4 result: The total interest earned increased 6.23 per cent to Rs 3,833.86 crore for FY22 as compared to Rs 3,609.05 crore for the previous year
 "Tamilnad Mercantile Bank's Q4 net rises 36%, total income increases 9%")
