Page 20 - Banking Sector

Results preview: Banks' net profit growth likely moderated in Q3FY25

Margin pressures, sluggish loan offtake may weigh on performance

Banks' profitability at inflexion point, to moderate in FY26: India Ratings

The rating agency said in a release that banks' rapid improvement in financial metrics seen over financial years 2021 to 2024 is likely to have peaked and will see an "inflexion point" in 2024-25

RBI releases master direction on reporting of customers credit information

The RBI on Monday came out with a master direction consolidating various instructions issued to banks and other financial institutions on reporting of the credit information of their customers. As per the master direction, credit information companies (CICs) will have to send alerts through SMS/ email to customers when their Credit Information Report (CIR) is accessed by the specified users (SUs). "The alerts shall be sent by CICs only when the CIR enquiry reflects in the CIR of the customer," said the Master Direction Reserve Bank of India (Credit Information Reporting) Directions, 2025. Also, Credit Institutions (CIs), which include banks and Non-Banking Financial Companies (NBFCs), will have to inform customers the reasons for the rejection of their request for data correction, if any, to enable such customers to better understand the issues in the CIR. "Complainants shall be entitled to a compensation of Rs 100 per calendar day in case their complaint is not resolved within a

Muted deposit and credit growth sends PSB stocks into a tailspin

While state-owned Union Bank of India reported a 2.2 per cent sequential growth in advances in Q3FY25, its deposits shrank by 2 per cent during the same period

DFS Secy launches 'Baanknet' portal as a one-stop property e-auction hub

According to a Finance Ministry statement, this platform consolidates information on e-auction properties from all PSBs and offers a one-stop destination for buyers and investors

Karur Vysya Bank's Q3 FY25 business rises 15% to Rs 1.82 trillion

The lender's advances increased by 13.96 per cent Y-o-Y to Rs 82,842 crore, while deposits grew by 15.75 per cent Y-o-Y to Rs 99,155 crore as of the end of December 2024

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

RBI's Financial Stability Report flags rising NPAs, global economic risks

Indian banking sector stable, but global debt and economic volatility loom large

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

Banks to provide beneficiary account name facility in NEFT, RTGS by Apr 1

The RBI has asked the National Payments Corporation of India to develop a facility to allow customers using online fund transfer systems, RTGS and NEFT, to verify the name of the bank account to which money is being transferred before initiating the transaction for avoiding mistakes and prevent frauds. All banks that are direct members or sub-members of Real Time Gross Settlement (RTGS) System and National Electronic Funds Transfer (NEFT) System are advised to offer this facility no later than April 1, 2025, the Reserve Bank said in a circular on Monday. Currently, the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS) systems enable a remitter to verify the name of the beneficiary before initiating a transfer. "It has been decided to put in place a similar facility that would enable a remitter to verify the beneficiary bank account name before initiating a transaction using RTGS or NEFT system," it said. RBI has advised the National Payments Corporation of Indi

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

HomeStreet Bank offloads $990 mn multifamily loans to BofA in profit push

The deal marks a major milestone for HomeStreet as it maps out a path to profitability after four consecutive quarters of adjusted losses

Banking frauds rise in H1FY25, amount involved jumps eightfold: RBI report

The number of bank frauds witnessed a significant on-year increase in the first half of the current fiscal to 18,461 cases and the amount involved jumped more than eight-fold to Rs 21,367 crore, according to RBI data released on Thursday. The Reserve Bank of India has released the Report on Trend and Progress of Banking in India 2023-24 which presents the performance of the banking sector, including commercial banks, co-operative banks and non-banking financial institutions, during 2023-24 and 2024-25 so far. 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 the last financial year, based on the date of fraud reporting. It further said frauds present multiple challenges for the financial system in the form of reputational risk, operational risk, business risk and erosion of customer confidence with financial stability implications. Regarding 2023-24 fis

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

Russian bank VTB says on track for record profit of $5.5 billion in 2024

Bank said it was still on track to hit profit target of 550 billion roubles in 2024 despite a significant depreciation in the value of many of its assets in November as a result of monetary tightening

Surety bonds vs bank guarantees: A financial shift in project risk-sharing

The surety bonds market in India has the potential to generate billions of dollars in premiums over the coming years

Banks' average daily reserves fall after FIT framework: RBI report

RBI introduced ASISO facility in August 2020 to offer greater flexibility in managing day-end cash reserve ratio balances

Credit Card spends fall sharply in November after festive October high

Decline due to moderation in consumer spending; issuances come down

Banks lobby RBI to approve new benchmark for overnight indexed swaps

The move is intended to improve price discovery in the interest-rate swap market

99% of Tripura villages now have banking access within 5 km: CM Saha

CM Saha stated that Tripura has achieved complete financial inclusion, with every village in the state now having access to a banking touchpoint or outlet, in line with the National Strategy