Page 23 - Banking Sector

Moody's affirms IndusInd's ratings; places on review for downgrade

The action comes in the backdrop of the bank's revelations about the inadequate internal controls in accounting for derivative transactions

Moody's places IndusInd Bank's credit assessment on review for downgrade

Moody's said that the impact of the derivatives transactions, coupled with the ongoing stress in the retail unsecured loans, is likely to hurt the bank's profitability, capital and funding

Airtel Payments Bank crosses one billion transaction mark in Jan 2025

Airtel Payments Bank has surpassed one billion transactions on its platform in January 2025, reflecting a 47 per cent year-on-year growth in transaction volume across businesses, according to a top official. Anubrata Biswas, MD and CEO at Airtel Payments Bank told PTI that the "milestone" underscores increasing adoption of digital banking and payment solutions. It also highlights the diverse business model that the bank has built over the years. The bank caters to three key customer segments, urban digital, underbanked, and industries and institutions. "The bank's extensive digital presence combined with its deep distribution of over 5,00,000 banking points across India has been instrumental in making its services accessible to millions of customers in both urban and rural areas. Today, the Bank's monthly transacting users exceed well above 100 million," Biswas said. Airtel Payments Bank's 'Safe Second Account', which offers an additional layer of payment verification, has been ...

State Bank of India shelves $1.7 billion fund raising as yields elevated

The bank had planned to raise as much as Rs 15,000 crore (about $1.7 billion) through sale of bonds before the end of March, but will now tap the market in the next financial year

IndusInd Bank case a rare instance when RBI cited its 'LOLR' role

Central bank can rescue a bank that is solvent but has temporary liquidity woes

New India Bank case: Accused civil contractor in police custody till Mar 19

The Economic Offences Wing (EOW) of the Mumbai police has arrested an accused from Vadodara in the Rs 122-crore embezzlement at New India Cooperative Bank, an official said on Saturday. Civil contractor Kapil Dedhia was apprehended in the Gujarat city on Friday and brought to Mumbai on Saturday. A local court here remanded him in police custody till March 19, he said. According to the police, Rs 12 crore of the misappropriated amount was credited to Dedhia's account. He received a part of the money from real estate developer Dharmesh Paun, also an accused. Dedhia also received money from Unnathan Arunachalam, another wanted accused in the case, and prime accused Hitesh Mehta, the bank's former general manager and head of accounts. Further investigation is underway to trace the entire fund flow and identify other individuals involved in the fraud, the official said. According to the police, Rs 122 crore was embezzled from the safes of the bank's Prabhadevi and Goregaon offices in .

Global index inclusion to help IndusInd as stock faces Sensex, Nifty ouster

Lender's stock price has plunged due to concerns around losses on account of its derivatives portfolio

RBI awarded digital transformation Award 2025 for digital initiatives

The awards committee noted how these digital initiatives have reduced the use of paper-based submissions, thus transforming RBI's internal and external processes

CLSA lowers target price for IndusInd Bank to Rs 900 but sees 34% upside

Near term fraught with uncertainty but if history is a guide fundamentals could drive a recovery, says the brokerage

HDFC MF holding in IndusInd Bank crosses 5% with additional 1.6 mn shares

IndusInd Bank on Thursday said that the holding of HDFC Mutual Fund in the bank has crossed 5 per cent as the fund house purchased an additional 15.92 lakh shares from the market. The stake increase comes a day after IndusInd Bank announced a whopping Rs 2,100 crore discrepancy in accounting with an estimated impact of 2.35 per cent of the bank's net worth. Soon after the disclosure, a massive price correction in the bank's shares was witnessed. The aggregate holding of HDFC Mutual Fund Scheme in IndusInd Bank as of the close of business hours on March 11, 2025, was 5.02 per cent of the paid up equity capital of the company, the bank said in a regulatory filing. Following an additional 0.20 per cent stake purchase, HDFC Mutual Fund through its various schemes had 77.9 crore shares at the end of March 11, it said. Prior to the stake purchase, HDFC Mutual Fund's holding was 4.82 per cent but with an additional share purchase, the holding rose to 5.02 per cent. The filing however did

GenAI may boost banking operations' productivity by 46% by 2030: EY

Generative AI (GenAI) is poised to improve productivity levels of Indian financial services by 34 to 38 per cent by 2030 and up to 46 per cent, specifically for banking operations, said a EY report. The report titled 'How much productivity can GenAI unlock in India? The AIdea of India: 2025' emphasised that GenAI) is reshaping India's financial services landscape, driving significant advancements in customer engagement, operational efficiency, and risk assessment. It said the survey canvassed more than 125 C-suite executives across India. They represent diverse sectors, including financial services, retail, healthcare, life sciences, media and entertainment, technology, automotive, industrials and energy. According to the study, 74 per cent of financial firms have initiated proof-of-concept projects, and 11 per cent have moved to production-level deployments. "Investment in GenAI is also increasing, with 42 per cent of organisations actively allocating budgets toward AI initiatives

Bank's asset quality to deteriorate moderately in F26 and FY27: Moody's

Funding tightness to abate as loan-to-deposit ratio stabilizes

IndusInd Bank CEO confident of Q4 net profit despite derivatives hit

Kathpalia assures strong capital adequacy as promoters reaffirm trust in bank

IndusInd Bank's net worth to take 2.35% hit over account discrepancies

The Mumbai-based lender said the net worth impact emerged from internal derivative trades, which were not in compliance with rules enforced by the Reserve Bank of India from April 2024

IndusInd Bank shares drop 4% as RBI okays short-term CEO extension

This is the second consecutive time that the banking regulator has approved a shorter tenor, despite the board requesting a full three-year term

Small-cap banks take the lead in average spend per credit card transaction

Credit-card spending for January stood at Rs 1,841 billion, marking a two per cent slide month-on-month (MoM), but a strong 14 per cent year-on-year growth

Bank of India adds 111 new branches to expand urban, semi-urban reach

As of December 2024, BoI had 5,202 branches in the country, with 993 in metros, 838 in urban centres, 1,501 in semi-urban centres, and 1,868 in rural areas

Banks' Apr-Dec performance robust, impaired loan ratio near trough: Fitch

Fitch Ratings on Monday said Indian banks have performed robustly in the first nine months of the current financial year with the sector's impaired loan ratio close to the trough. In its commentary, Fitch said improvements in key performance metrics of Indian banks in the past few years will provide strong support for their Viability Ratings (VRs). The global rating agency also said that Indian banks' risk appetites have been more calibrated since 2018, with efforts to diversify loans and improve the quality of corporate exposures contributing to lower bad loan formation. Lower legacy bad loans drove improvement in banks' gross impaired loan ratios and earnings, Fitch said. However, these risk enhancements have yet to be fully tested, and banks have tended to vary risk appetite through cycles, such as growth in unsecured personal loans in recent years until regulatory measures discouraged this behaviour, Fitch noted. "Indian banks performed robustly in the first nine months of the

Long haul for growth: How GDP dynamics may shape up in the coming quarters

Looking at India's growth performance from the expenditure lens indicates a pickup in the private consumption expenditure to 6.9% YoY in Q3FY25 compared to 5.9% YoY in Q2FY25

BS Manthan: Bilateralism now topping the agenda, says FM Sitharaman

The global churn and India's reset played out on day one of BS thought summit, with the who's who from government, economy, banking, defence coming together