Page 28 - Banking Sector

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

Conundrum of the credit-deposit ratio: Understanding RBI's concerns

The RBI is also concerned that the banks have turned to bulk deposits and certificates of deposit to mobilise funds, as retail deposits (both savings and term deposits) have become stagnant

BoB raises Rs 5,000 cr through infra bond issue, second in a fortnight

State-owned Bank of Baroda on Monday announced that it has raised Rs 5,000 crore through a 10-year infrastructure bond issuance subscribed by domestic investors. This is the second issuance from the lender in a fortnight after the Rs 5,000 crore sale on August 26 and comes amid a raft of such issuances. Banks have become more aggressive at tapping into such avenues given the slower deposit growth in the system. The bank was able to squeeze the pricing of the newest offering to 7.26 per cent, 0.04 per cent lower than its last one, officials said, adding this is the tightest pricing for an issuance in recent times. Both the issuances were oversubscribed nearly three times, and it was investor feedback on missing out at the last issuance that prompted the bank to come back with another offering sooner. With the latest issuance, the bank has exhausted the board's approved limit to raise Rs 10,000 crore from infra bond issuances and there are no immediate plans to raise more, the offic

Airtel Finance offers FD service, partners with NBFCs, small finance banks

Bharti Airtel on Monday announced the launch of a fixed deposits marketplace under its digital arm Airtel Finance, backed by partnerships with leading NBFCs and small finance banks. The marketplace enables Airtel Finance to provide an assured return and fixed-income investment option on the digital platform that is built on top of Airtel's Thanks App framework, according to a release. "Bharti Airtel today announced the launch of a fixed deposits marketplace under its digital arm, Airtel Finance. These fixed deposits come at an attractive interest rate of up to 9.1 per cent per annum," it said. Airtel Finance has offered the fixed deposit service through partnerships with multiple small finance banks and NBFCs including Utkarsh Small Finance Bank, Shivalik Bank, Suryoday Small Finance Bank and Shriram Finance. This will help customers lock in assured returns at high rates of interest. Anshul Kheterpal, Chief Business Officer, Airtel Finance said, "We have partnered with the best ban

Sanjeev Mehta quits Standard Chartered Bank, set to launch new venture

Sanjeev Mehta Sanjeev Mehta has stepped down as Standard Chartered Bank's managing director and head of transaction banking sales for corporate, commercial and institutional Banking for South Asia after a 17-year career at the bank. Mehta resigned in July this year with plans to launch a greenfield venture, a statement said on Friday. His departure from the bank comes at a time when the Indian financial landscape is undergoing rapid change, presenting both challenges and opportunities for new entrants, it said.

The shift: Households turn net borrowers from banks, says BCG report

The report highlighted that unsecured lending as a proportion of GDP in India is as high as it is in the United States

Finance ministry plans 'One State, One RRB' policy to boost efficiency

RRBs reported their highest-ever consolidated net profit of Rs 7,571 crore for FY24, with a gross non-performing assets (GNPA) ratio of 6.1 per cent - lowest in 10 years

Banks to set up a Unified Recovery Interface to enhance efficiency

IBA mulls special apprenticeship scheme for banking sector

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

State-owned Canara Bank mobilises $300 mn through IFSC banking unit

State-owned Canara Bank on Wednesday said it has mobilised USD 300 million via the IFSC Banking Unit. The net proceeds from the issue of the notes will be applied by the Issuer's IFSC Banking Unit at Gandhinagar towards the general corporate purposes, Canara Bank said in a regulatory filing. The bonds with maturity of 5 years carry a coupon rate of 4.896 to be paid semi annually, it said. Commenting on the occasion, Canara Bank MD and CEO K Satyanarayana Raju said, "We are delighted on the successful launch and pricing of this transaction, which enabled us to achieve a 30-bps tightening from the initial price guidance to final price guidance." The issuance was widely subscribed by investors across Asia, Middle East and Europe demonstrating the strong confidence in the Canara Bank's credit, he said.

Credit-deposit ratios of banks spark debate: Is there a cause for worry?

Though increased lending generally leads to more deposits through the credit multiplier effect, reduced liquidity has led to shrinking deposit pools

Bank holidays in September 2024: Check the full list before making a visit

Essential financial services will be functional through digital channels such as online platforms, ATMs, mobile banking apps, and bank websites

New MSME credit assessment model for PSBs may see March 2025 launch

Credit model goes beyond credit scores, evaluates supply chains, digital footprints

Stable currency fosters internationalisation, says Zarin Daruwala

The rupee was the third most stable Asian currency against the US dollar in the financial year 2023-2024 after the Hong Kong dollar and Singapore dollar, primarily due to timely intervention by RBI

Competition for deposits but no rate war, says SBI chief C S Setty

SBI is aiming to get 90 per cent of its retail unsecured loans from the digital channels, going forward, Setty said

Banks will lose out if they don't partner fintechs: Axis Bank CEO

He highlighted that as customers transact more digitally, the banks' operating costs will come down

Bank-fintech tie up will boost innovation, risk management: RBL CEO

The experience of banks and non-banking financial companies (NBFCs) in risk underwriting and risk assessment will help in improving customer experience

SBI to focus on neglected, small-ticket deposits to boost liquidity: MD

The lender will focus on accounts under a government scheme called 'Jan Dhan', or people's wealth, that provides access to various financial services to low income groups, Tewari said

National Bank of Canada's profit rises on wealth management, strong markets

National Bank of Canada's upbeat results come in contrast to rival Bank of Montreal, which reported a drop in quarterly adjusted profit on higher loan loss provisions