Page 32 - Banking Sector

Banking sector continues to confound

It has shown remarkable resilience in the post-pandemic years despite challenges and warnings about instability

YES Bank denies report on 51% stake sale, calls it 'factually incorrect'

The bank called the news report "factually incorrect and purely speculative" in nature

Commercial banks turn cautious on lending to smaller microfinance players

Lenders wary after recent RBI guidelines on higher risk weighting for unsecured loans

Swiss challenge auction: Union Bank gets sole counter bid for Jaypee Health

Bank called for a Swiss auction for 5 accounts after receiving binding bids from a list of 25 accounts for sale

Banks should be prepared for providing credit through UPI: Zeta CEO APAC

We believe that the UPI transaction volume, using one or another form of credit, would be $1 trillion by the end of 2030, she says

Changing dynamics of Indian banking

One constant feature of banks' balance sheets over the years - in good times and bad - is the high bad loans in the agriculture sector. Can anything be done about it?

Bandhan Bank appoints Ratan Kumar Kesh as interim MD&CEO for 3 months

Kesh currently holds the position of executive director & chief operating officer at the bank

The road ahead to Viksit Bharat

The entry and exit of capital are two sides of the same coin, and both need to be facilitated while maintaining financial stability

Bank of Baroda may raise up to Rs 7,500 crore via AT1, Tier-II bonds

According to the bank's annual report for FY24, it had raised additional Tier 1 capital of Rs 2,474 crore in FY23. The bank issued Tier 2 capital of Rs 5,000 crore

RBI imposes a monetary penalty of Rs 1.32 crore on Punjab National Bank

The charges have been imposed after considering the oral submissions made in response to the show-cause notice sent by RBI to the bank

Result preview: Cost of deposits to weigh on banks' margins in Q1

According to Bloomberg analysts, listed banks are forecasted to see a 14.5 per cent year-on-year (Y-o-Y) increase in net profit

RBI bumper payout to curb major divestments, govt keeps Rs 50k cr target

The record Rs 2.1 lakh crore dividend payout by the Reserve Bank of India will limit the need for big-ticket divestment, a domestic rating agency said on Thursday. Care Ratings said the new government will retain the interim budget's Rs 50,000 crore target on receipts from divestments. "With a bumper dividend from the RBI, the central government's fiscal position remains comfortable, which may limit the urgency to push ahead with big-ticket divestments," it said. If there is a shortfall in the resource accretion, the government will prefer asset monetisation, it added. Shipping Corporation of India (SCI) sales expected to be completed during the year will make it easy sailing for the government on the FY25 target, the agency said. "After the demerger of land assets of the Shipping Corporation of India (SCI), its possible divestment looks likely in FY25, provided favourable market conditions prevail. If the government offloads its entire stake in SCI, it could generate Rs 12,500-22

Banks to see treasury gains in Q1 as government bond yields soften

Gains limited due to new investment norms

Fed officials at last meeting saw price pressures in decline, minutes show

Data released on June 12 showed the CPI had not risen at all in May on a month-to-month basis

Banks Q1 loan growth remain strong, share of low cost deposits falls

The credit-to-deposit ratio of the Mumbai-based private sector lender Yes Bank rose to 86.8 per cent at the end of June from 85.5 per cent at the end of March

Bank of India plans to raise up to Rs 5,000 crore via infra bonds

BOI's infrastructure loan book stood at Rs 58,860 crore at the end of March 2024

RBI governor Das asks banks to strengthen governance, risk management

RBI governor Shaktikanta Das on Wednesday asked banks to further strengthen the governance standards, risk management practices and compliance culture. As part of the Reserve Bank's continuous engagement with the senior management of its regulated entities, Das held meetings with the managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private banks. The governor in his opening remarks noted the continued improvement in banks' asset quality, loan provisioning, capital adequacy, and profitability, the RBI said in a statement. "While acknowledging the higher resilience and strength of the banking sector, he highlighted the importance of further strengthening the governance standards, risk management practices and compliance culture in banks," Das said. Persisting gap between credit and deposit growth; liquidity risk management and ALM-related issues; and trends in unsecured retail lending were among the issues which were discussed at length.

Liquidity surplus improves to two month high on govt spending, redemption

Consequently, the yield on 3-month and 6-month treasury bills fell by 2 basis points, whereas that on 364-day bills fell by 1 basis point compared to last week

HDFC Bank services to be temporarily limited on July 13 for system upgrade

To minimise disruption, the lender advises customers to withdraw funds before 7.30 pm on July 12

Commercial banks mobilise Rs 1.45 trn via certificates of deposits in June

Certificate of Deposit issuances in June at Rs 1.45 trillion, up 76% month-on-month