Page 19 - Banking Industry

CSB Bank Q1 results: Net profit drops 14% to Rs 113 cr as provisions rise

The provisions for non-performing assets rose 273 per cent to Rs 20 crore from Rs 4 crore in Q1 FY24

South Indian Bank is looking to expand beyond Kerala, says MD & CEO

The bank is also shifting its focus on loan mix to micro small and medium enterprises (MSMEs) and retail, from the current bias towards corporates

RBI drafts liquidity norms, adding buffers for electronic fund transfers

The Reserve Bank of India (RBI) on Thursday released draft guidelines proposing banks to assign additional liquidity buffers for accounts having internet and mobile banking (IMB) facilities to stave off any risks during times of stress. The draft guidelines follow an announcement by Governor Shaktikanta Das in the April policy review, given the high usage of technological tools in banking that can lead to moving of funds without physically queuing up at bank branches. "While increased usage of technology has facilitated the ability to make instantaneous bank transfers and withdrawals, it has also led to a concomitant increase in risks, requiring proactive management," the draft circular amending the 2014-issued guidelines on Basel-III Framework on Liquidity Standards' Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards," said. The draft suggests banks shall assign an additional 5 per cent run-off factor for retail deposits, which are enabled

Cred launches product to track expenses, view total bank account balances

The new Cred product will be rolled out to its members in phases starting Thursday, making it one of the first fintechs to launch the offering

Axis Bank Q1FY25 results: Net profit increases 4% to Rs 6,035 crore

The bank's net interest income (NII) increased 12 per cent year-on-year (Y-o-Y) and 3 per cent sequentially to Rs 13,448 crore in Q1FY25, aided by steady growth in advances

SBI Life Q1FY25 results: Net profit increases 34% to Rs 519.5 crore

The company's new business premiums grew by 13 per cent YoY to Rs 7,030 crore in Q1FY25 against Rs 6,210 crore in the year-ago period

Indian banks' short-term debt increases to 12-year high on loan demand

Depositors in India have been saving less in banks as soaring equity markets and avenues such as mutual funds, insurance funds and pension funds lure them

Aim to reduce CD ratio as fast as possible: HDFC Bank MD & CEO Jagdishan

Bank to Prioritise Engagement and Service Over Interest Rates for Deposits

YES Bank Q1 result: Net profit rises 47% to Rs 502 cr as provisions fall

Its provisions declined by 41.2 per cent to Rs 212 crore in Q1 FY25, from Rs 360 crore in the year-ago period. Sequentially, provisions declined from Rs 471 crore in Q4 FY24

No plans to allow business houses to promote banks: RBI Governor Das

Governor Shaktikanta Das on Friday said the Reserve Bank does not have any plan to allow business houses to promote banks at present. Allowing corporate houses to promote banks exposes one to conflict of interest risks and related-party transactions, Das said, speaking at an event organized by the Financial Express here. "At this point, there is no thinking in that direction," Das said, replying to a specific query on whether there is any consideration to allow business houses. The RBI had disqualified a long list of conglomerates from floating a lender in the last round of licensing around a decade ago. The issue was revived again in 2020, with a Reserve Bank of India (RBI) working group supporting it, given the potential to get the capital for helping meet the country's growth aspirations. Underlining that banks are different from other businesses, he said experience worldover has shown potential conflicts of interest and issues relating to related-party transactions, if busines

Different faces of bank frauds

Customer education is the key to combating digital fraud, while improved credit appraisal, underwriting, and risk management can help contain loan fraud

Goldman Sachs targets $2 bn for first Asia-focused pvt equity fund

Only five China-focused private equity funds were raised in the first half this year, totalling $2.2 billion

FSIB to conduct interviews for chairman's position of SBI on Saturday

FSIB will recommend the name and the final decision would be taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi

Shorter duration to comply reason for banks' delay to join BBPS

Payments industry hoping for an extension of the deadline

Legacy issues behind us, PNB on track to outperform competition: MD Goel

With legacy issues behind, Punjab National Bank (PNB) is on the right path to outpace the competition and achieve greater heights in terms of profitability during the current fiscal and subsequent years, the bank's managing director Atul Kumar Goel said. PNB topped the chart recording the highest profit growth of 229 per cent among the 12 public sector banks during the fiscal ended in March 2024. The bank's net profit increased over three-fold to Rs 8,245 crore compared to Rs 2,507 crore in the previous fiscal. Recalling the position of PNB three years ago, Goel said it was a laggard on many counts with one of the highest gross and net non-performing assets (NPAs) numbers among PSBs and Provision Coverage Ratio (PCR) was low. "Today you see my net NPA reduced to 0.7 per cent and even the PCR is more than 95 per cent. I am better than my peers," he told PTI in an interview. Going forward, he said, the net NPA would come down below 0.5 per cent and the net interest margin of around 3

3 GMs to take charge of TMB operations after Sankarasubramaniam's exit

Krishnan had resigned from the post of MD and CEO of the Tuticorin-based bank, on September 28 last year, citing personal reasons

Banks' loans rise 19.5% in two weeks to May 17, deposits up 13.3%: RBI

Outstanding loans fell Rs 23,207 crore ($2.78 billion) to Rs 166.09 trillion in the two weeks to May 17

JPMorgan to increase India headcount by 5%-7% over next few years: Top exec

The New York-based lender already employs about 55,000 people, about a fifth of its global workforce, across five Indian cities

RBI's increased scrutiny of banks, financial firms leads to restrictions

Since 2020, the RBI has placed business restrictions on many players

'Most SFBs would not clamour to become universal banks if RBI eases curbs'

Highlighting the importance of small finance banks (SFBs) in fostering financial inclusion, former Financial Services Secretary D K Mittal said most of them would not clamour to become universal banks if some restrictions are eased by the Reserve Bank. To promote financial inclusion in the country, RBI, in 2014, issued the guidelines for licensing of small finance banks (SFBs) in the private sector. Following this, RBI granted licences to a dozen entities. As per the RBI guidelines, SFBs are required to open at least 25 per cent of their branches in unbanked rural centres and are mandated to provide 75 per cent of loans to the priority sector compared to 40 per cent for the commercial banks. Last month, the RBI invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks. "While issuing guidelines for Small Finance Banks to become universal banks, it would be in the larger nationa