Page 29 - Banking Sector

Q1 results: SFBs' net profit growth flat as provisions jump over 2x

Provisions more than double on asset quality pressures

ICICI Bank fostering compliance, strong risk culture: CEO Sandeep Bakhshi

He also added that the bank is seeing exciting opportunities arising from the Indian economy and its global linkages and is committed to supporting the economy in its transformative journey

No need to keep minimum balance in Jan Dhan, basic savings accounts: FM

Finance Minister Nirmala Sitharaman on Tuesday said there is no need to maintain minimum balance in Jan Dhan as well as basic savings accounts, and banks impose penalties only in cases where customers fail to maintain a requisite amount in their accounts. The minister was replying to a question in Rajya Sabha during Question Hour regarding public sector banks collecting about Rs 8,500 crore in penalty from customers for non-maintenance of minimum balance in accounts in five years. "Since the member is talking about banks collecting money for basic minimum balance which is not there in the account, that does not apply to PM Jan Dhan accounts and basic accounts of the poor people. It is only for others whose minimum balance is expected to be at a certain level," Sitharaman said. It emerged in a written reply to a question in the Lok Sabha that public sector banks collected around Rs 8,500 crore under this head in five years starting FY 2019-20. Minister of State for Finance Pankaj ..

Muted treasury gains for banks in Q1 FY25 due to new investment norms

Under the new norm, banks must categorise bonds as HTM on a permanent basis, with the exception of 5% of the portfolio that can be withdrawn throughout the year

Banking system liquidity improves to touch 1-yr high; overnight rates ease

According to Bloomberg data, the weighted average call rate also declined 5 bps on Monday to 6.44%

Tamilnad Mercantile Bank Q1 results: Net profit rises 9.9% to Rs 287.29 cr

Over century-old private sector Tamilnad Mercantile Bank has recorded a 9.97 per cent rise in its net profit for the April-June 2024 quarter at Rs 287.29 crore on account of rise in interest income. The Tamil Nadu-based bank had registered a net profit of Rs 261.23 crore during the corresponding quarter of last year. For the financial year ending March 31, 2024 the net profit stood at Rs 1,072.03 crore. Total income during the April-June 2024 quarter went up to Rs 1,046.03 crore from Rs 942.98 crore registered in the year ago period. For the financial year ending March 31, 2024 the total income stood at Rs 5,492.85 crore. According to a press release, the bank's deposits rose to Rs 49,188 crore during the April-June 2024 quarter, from Rs 47,008 crore registered in the same quarter of last year. The advances of the bank has increased to Rs 40,853 crore with a growth of 10 per cent year-on-year basis. The Net Interest Income stood at Rs 567 crore for the April-June 2024 quarter, a

Omkara ARC to buy Rs 6K cr NPA book of Stressed Asset Stabilisation Fund

After the revision in reserve price, NARCL and Omkara ARC put in binding bids to acquire the portfolio of NPAs, and subsequently, an auction was conducted to determine the winning bidder

No rate cut, but dovish undertone likely

The stance can be changed, and if that doesn't happen, the hawkish underdone will not continue

Utkarsh Small Finance Bank Q1 results: Net profit jumps 28% to Rs 137 cr

Utkarsh Small Finance Bank on Saturday posted a 28 per cent increase in its profit at Rs 137 crore in the first quarter ended June 30. The bank had earned a net profit of Rs 107 crore in the same quarter a year ago. Total income increased to Rs 1,071 crore during the quarter under review against Rs 812 crore in the same period last year, the bank said in a regulatory filing. The interest income of the bank rose to Rs 966 crore as against Rs 720 crore in the first quarter of previous year. As regards asset quality, gross Non-Performing Assets (NPAs) of the bank declined to 2.78 per cent of the gross loans by the end of June 2024 from 3.13 per cent a year ago. Similarly, net NPAs came down to 0.26 per cent from 0.33 per cent at the end of the first quarter of the previous fiscal. The provision coverage ratio, including floating provision, was 91 per cent as on June 30, 2024.

Tamilnad Mercantile Bank Q1 results: Net profit up 10% at Rs 287.3 crore

Total income has grown 15 per cent to Rs 1,515 crore during the quarter under review, from Rs 1,323 crore during the same period last fiscal

J&K govt gets Rs 7,900 crore from centre to clear dues with J&K Bank

The official said the money will be used by the J&K government to cover dues for pensions, salary payments, and other expenses of J&K Bank

Indian lenders need $1 bn to upgrade core bank systems: BCG report

Companies' legacy core systems have various problems, it says

Bank of Maharashtra raises just Rs 811 crore in infrastructure bond sale

Lender was looking to mop up Rs 3,000 crore, but bids totalled only Rs 1,390 crore

Suryoday Small Finance Bank Q1 results: Net profit rises 47% to Rs 70 cr

Suryoday Small Finance Bank on Thursday reported a 47 per cent rise in net profit at Rs 70 crore in the first quarter ended June 2024 due to decline in bad loans. The bank had posted a net profit of Rs 48 crore in April-June period of previous year. Total income in the first quarter of the current fiscal rose to Rs 558 crore as against Rs 409 crore a year ago, Suryoday Small Finance Bank said in a regulatory filing. The lender's interest income also increased to Rs 488 crore from Rs 358 crore in the same quarter a year ago. The bank's net interest income (NII) grew by 30.5 per cent to Rs 293 crore in the first quarter of current financial year, it said. Gross Non Performing Assets (NPAs) declined to 2.77 per cent of the gross advances by June 2024 from 3 per cent in the same quarter a year ago. The net NPA too declined to 0.4 per cent as against 1.6 per cent in the same period of the previous year. The capital adequacy ratio of the bank declined to 27.27 per cent at the end of J

IDBI Bank potential bidders likely to get data room access next week

This will allow interested bidders to obtain detailed financial information about the bank to carry out due diligence

IOB invites EoIs for Rs 1,067 crore bad loans through open offer

ARCs interested in acquiring the bad loans have to complete their due diligence on the accounts by August 12

Citi breaks banks safety rules, makes liquidity reporting errors: Report

Firm's subsequent reaction to breaches resulted in liquidity reporting inaccuracies, according to the document, which provides a 2023 year-end snapshot of some of Citi's work on regulatory issues

Bank of Baroda Q1 result: PAT up 10% at Rs 4,458 cr on decline in bad loans

Bank of Baroda (BoB) on Wednesday reported a 10 per cent increase in standalone net profit to Rs 4,458 crore in the June 2024 quarter, helped by a decline in bad loans. The state-owned bank had posted a net profit of Rs 4,070 crore in the year-ago period. Total income in the quarter rose to Rs 32,116 crore from Rs 29,878 crore, BoB said in a regulatory filing. The lender's interest income also increased to Rs 29,629 crore against Rs 26,556 crore in the same quarter a year ago. Gross Non Performing Assets (NPAs) declined to 2.88 per cent of gross advances by June 2024 from 3.51 per cent in FY24. Net NPAs too declined to 0.69 per cent compared to 0.78 per cent at the end of the first quarter of the previous year. As a result, provisions and contingencies came down to Rs 1,011 crore in the April-June period of FY25 against Rs 1,947 crore in the year-ago period. The capital adequacy ratio of the bank improved to 16.82 per cent at the end of June 2024 compared to 15.84 per cent in th

SBI raises $750 mn via offshore term loan facility for deployment of funds

SBI's board has approved a plan to raise long-term funds up to $3 billion in single or multiple tranches in FY25

Banks face 7-year debt recovery backlog; Government plans capacity boost

More than 200,000 cases are pending in Debt Recovery Tribunals (DRTs), which currently manage only 30,000 to 40,000 cases each year