Page 43 - Banking

Looking ahead: Slowing credit growth, margin pressure await banks in 2025

Resource mobilisation was a key challenge for banks over the past two years, as deposit growth lagged credit uptake

Indian banks' gross bad loan ratio may edge up by March 2026: RBI report

The bad loan ratio could rise to 5 per cent and 5.3 per cent under two separate high-risk scenarios

Cloud, AI-ML top emerging techs adopted by Indian banks, reveals RBI survey

The survey, conducted in November 2024, included responses from 12 state-owned banks and 19 private sector banks to assess the adoption of emerging technologies

NBFCs' loan growth moderates significantly to 6.5% in H1FY24: RBI report

The corporate bond market remains a significant funding avenue for NBFCs, which are the largest issuers of bonds, with private placement being the preferred mode

Private banks masking worsening retail asset quality with write-offs: RBI

The GNPA ratio for unsecured lending was marginally higher, at 1.7 per cent

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

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

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

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

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

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

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)

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

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

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

Credit Card spends fall sharply in November after festive October high

Decline due to moderation in consumer spending; issuances come down

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

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

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