Page 37 - Banking
RBI proposes lookup facility for NEFT, RTGS; banks to comply by April 1
This facility will allow users to view and verify the name of the beneficiary before initiating a transaction, similar to the existing feature on India's real-time payment systems
 "RBI proposes lookup facility for NEFT, RTGS; banks to comply by April 1")
Banks to provide beneficiary account name facility in NEFT, RTGS by Apr 1
The RBI circular said that all banks that are direct members or sub-members of RTGS and NEFT system are advised to offer this facility no later than April 1, 2025
Mswipe's payment business turns profitable, FY24 revenues grow 6%
In FY24, payments revenue grows 6.25% to Rs 275 crore; total payment value more than doubles to Rs 50,417 crore
 "Mswipe's payment business turns profitable, FY24 revenues grow 6%")
Banks' gross bad loan ratio seen worsening by March 2026: RBI report
This key measure could rise to 3 per cent by the end of March 2026 from a 12-year low of 2.6 per cent in September 2024 for 46 banks under the so-called baseline scenario
 "Banks' gross bad loan ratio seen worsening by March 2026: RBI report")
High employee attrition of 25% in private banks pose operational risk: RBI
Employee attrition rates are high across select private sector banks and small finance banks (SFBs), the report, which was released by the Reserve Bank of India (RBI) said
 "High employee attrition of 25% in private banks pose operational risk: RBI")
Credit and deposit grow at 11.5% in fortnight ending Dec 13: RBI data
Credit growth in the economy, which had previously been driven primarily by retail credit, has tapered off from its peak
 "Credit and deposit grow at 11.5% in fortnight ending Dec 13: RBI data")
Low NPAs, credit growth to help PSU banks cross Rs 1.5 trn profit in FY25
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 H1FY23
 "Low NPAs, credit growth to help PSU banks cross Rs 1.5 trn profit in FY25")
Small ticket transactions drag avg retail payments value by 48% in 3 years
The increasing adoption of digital transactions is evident in the robust growth of India's real-time payments system, Unified Payments Interface (UPI)
 "Small ticket transactions drag avg retail payments value by 48% in 3 years")
Banks post sixth year of profit growth in FY24, bad loans decline further
At the same time, banks resorted to borrowings at higher interest rates and increased deposit rates to bridge the credit-deposit growth gap in FY24
 "Banks post sixth year of profit growth in FY24, bad loans decline further")
Banking frauds rise in H1FY25, amount involved jumps eightfold: RBI report
The report said the number of frauds during April-September stood at 18,461 involving Rs 21,367 crore compared to 14,480 cases involving Rs 2,623 crore in the comparative period of last FY
 "Banking frauds rise in H1FY25, amount involved jumps eightfold: RBI report")
Banks' balance sheets stay robust, bad loans decline more: RBI report
The report said that net bad loans of banks fell to 0.57 per cent of total loans at September-end, from 0.62 per cent at end-March, driven by stronger loan-loss buffers
 "Banks' balance sheets stay robust, bad loans decline more: RBI report")
Credit Card spends fall sharply in November after festive October high
Decline due to moderation in consumer spending; issuances come down
 "Credit Card spends fall sharply in November after festive October high")
Big banks, business groups sue US Federal Reserve over annual stress tests
These tests determine the capital banks must set aside to meet their obligations and also dictate the scope of dividend payouts and stock buybacks
 "Big banks, business groups sue US Federal Reserve over annual stress tests")
Supreme Court removes 30% interest cap on late credit card bill payments
RBI stated that while it has directed banks not to charge excessive rates of interest, it does not directly regulate the rates charged by banks
 "Supreme Court removes 30% interest cap on late credit card bill payments")
Banca cap may impact banks' net profit by 1-2%, says IIFL Securities
It could shave off 15-30% of banks' fee income that they earn by selling insurance
 "Banca cap may impact banks' net profit by 1-2%, says IIFL Securities")
Forex reserves drop $2 bn to $652.86 bn, a nearly six-month low: RBI data
Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves
 "Forex reserves drop $2 bn to $652.86 bn, a nearly six-month low: RBI data")
Business activity between India, UK flourishes in 2024, shows HSBC data
In the nine months to October 2024, the value of payments made by HSBC UK business clients to India reportedly rose by 32 per cent and the bank received 36 per cent more new business client referrals
 "Business activity between India, UK flourishes in 2024, shows HSBC data")
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
 "Banking liquidity deficit hits highest in 6 months on advance tax payments")
RBL Bank re-appoints R Subramaniakumar as MD & CEO for a period of 3 years
R Subramaniakumar was initially appointed for a period of three years as MD and CEO of the bank in June 2022
 "RBL Bank re-appoints R Subramaniakumar as MD & CEO for a period of 3 years")
PSBs were UPA's ATM for cronies: FM Sitharaman hits out at Rahul Gandhi
Banking sector, especially Public Sector Banks (PSBs), have seen a remarkable turnaround under the leadership of Prime Minister Narendra Modi, she said
 "PSBs were UPA's ATM for cronies: FM Sitharaman hits out at Rahul Gandhi")