Page 51 - Banking Sector

First time in 4 years, MFIs overtake banks in microlending with 40% share

After a gap of four years, standalone MFIs overtook banks in microlending in 2022-23 with a 40 per cent share of loans in the country, up from 35 per cent in the last year, according to an analysis. On the back of recovery after being hit hard during the pandemic when collections and disbursals plunged, MFIs have clawed back from 32 per cent share in FY20, which declined further to 31 per cent in FY21 before improving to 35 per cent in FY22. As of March 2023, MFIs held a 40 per cent share of the overall microfinance loans, registering a 37 per cent growth, compared to banks' 34 per cent, down 600 bps from the previous fiscal, Care Ratings said in a note on Wednesday. Almost all banks have an MFI book as part of meeting their priority lending targets. Banks controlled 34 per cent of the industry's Assets Under Management (AUM) in FY23 -- down from 40 per cent in FY20 and FY22. Their share had peaked at 44 per cent in FY21. The microfinance industry grew by 37 per cent in FY23 due t

India Post Payments Bank plans to double income in FY24: MD Venkatramu

India Post Payments Bank (IPPB) reported a net profit of 200 million rupees in 2022/23, Venkatramu said, as compared with a loss of 1.6 billion rupees in the previous year

Card payments in India to hit Rs 27.9 trillion mark in 2023: GlobalData

To drive card payments and reduce dependence on cash, the government had abolished merchant service fees on transactions with state-owned RuPay cards from January 2020.

PHDCCI submits recommendations related to housing, banking sectors to RBI

Industry body PHDCCI has submitted several recommendations on issues related to the housing sector, banking and foreign trade to RBI Governor Shaktikanta Das. A delegation of PHDCCI led by its president Saket Dalmia met the governor and submitted the recommendations. Amidst global economic challenges and ongoing pandemic impact, the chamber made a strong case for lowering housing sector interest rates to stimulate growth. Lower rates can invigorate investments, bolster consumption, enhance competitiveness, and aid industries facing headwinds, it said. "While we understand and appreciate the efforts of the Reserve Bank of India in stabilising the economy and ensuring liquidity, we believe that a reduction in interest rates at this juncture would provide a much-needed boost to our industry," it said in the submission to Das. The chamber highlighted several issues related to the banking sector, including the rectification of export realisation purpose codes and the protection of GST

Ex-CVC Patel to head board to examine role of top bank officials in frauds

Former Central Vigilance Commissioner (CVC) Suresh N Patel has been appointed the chairman of an advisory board to examine the role of top bank officials in fraud cases. The members of the board are Ravikant, a former secretary of the Department of Ex-Servicemen Welfare; Rajni Kant Mishra, a former director general of the Border Security Force; David Rasquinha, ex-MD of the EXIM Bank; and Partha Pratim Sengupta, ex-MD and CEO of the Indian Overseas Bank, according to an official order. The tenure of the chairman and members would be for a period of two years with effect from August 21, 2023, said the order issued by the Central Vigilance Commission. The Advisory Board for Banking and Financial Frauds (ABBFF) will examine the role of all levels of officials and whole-time directors (including ex-officials and ex-whole-time directors) in public sector banks, public sector insurance companies and public sector financial institutions in case of frauds amounting to Rs 3 crore and above

Karur Vsysa Bank raises lending rate by 0.15%, to be effective from Aug 14

Private sector Karur Vysya Bank announced a hike in benchmark lending rate by 0.15 per cent to 7.75 per cent even as the Reserve Bank left its key interest rates unchanged for the third straight meeting on Thursday. The new rate would be effective from August 14, Karur Vysya Bank said in a regulatory filing. The External Benchmark Rate - Repo linked (EBR-R) of the bank would be revised from 9.60 per cent to 9.75 per cent, it said. The Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 6.50 per cent with preparedness to act, should the situation so warrant, Reserve Bank of India Governor Shaktikanta Das said earlier in the day. "Further, with monetary transmission still underway and headline inflation remaining higher than the 4 per cent target, the MPC decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth," he said.

Govt broadens access to 'vostro' accounts to facilitate rupee trade

India has allowed banks in 22 partner countries, including Russia and UK, to open "vostro" accounts in the country, the government told parliament on Tuesday, to help facilitate trade in rupees

Policy repo rate cut not likely before Q1FY25: Business Standard poll

Despite inflation worries, MPC to maintain status quo on rates in its meet this week

Punjab & Sind Bank's net profit falls 25% to Rs 153 crore in June quarter

Public sector lender Punjab & Sind Bank on Saturday reported a 25 per cent decline in net profit to Rs 153 crore for the June 2023 quarter, partly due to the provision of wage revision and fresh slippages. The lender had reported a net profit of Rs 205 crore in the April-June quarter of 2022-23. The total income increased to Rs 2,494 crore in the first quarter of 2023-24 against Rs 1,915 crore a year ago, as per a regulatory filing. During the quarter, the bank earned an interest income of Rs 2,316 crore compared to Rs 1,800 crore in the year-ago period. Explaining the reason for the decline in profit, Punjab & Sind Bank managing director Swarup Kumar Saha said the bank has made a Rs 57 crore provision towards the wage revision under negotiation and Rs 450 crore in fresh slippages, including a mid-corporate of Rs 92 crore in the quarter. The bank has made a provision of Rs 42 crore for that particular account, which is in the logistics business, he said. On the asset quality ..

Bank of Baroda to report Q1FY24 results on Aug 5; here's what to expect

Bank of Baroda Q1FY24 results preview: Analysts expect growth in personal loan book to remain robust, taking the total loan book to Rs 9.61 trillion

After reaching peak, banking profitability to moderate on deposit challenge

The structural re-allocation of savings away from deposit products may lead to muted growth in deposits

Indian Overseas Bank net profit increases 28% to Rs 500 crore in Q1

State-owned Indian Overseas Bank (IOB) on Wednesday posted a 28 per cent increase in net profit at Rs 500 crore in the June quarter, mainly due to a decline in bad loans. The Chennai-based lender had posted a net profit of Rs 392 crore in the year-ago period. The total income in the first quarter of the current fiscal rose to Rs 6,227 crore against Rs 5,028 crore, IOB said in a regulatory filing. The lender's interest income also increased to Rs 5,424 crore from Rs 4,435 crore in the same quarter a year ago. On the asset quality side, the bank witnessed an improvement with the gross Non-Performing Assets (NPAs) easing to 7.13 per cent of the gross advances by June 2023 as against 9.12 per cent a year ago. The net NPA too declined to 1.44 per cent over 2.43 per cent in the same period of the previous financial year. However, provisions for bad loans increased to Rs 809 crore as compared to Rs 133 crore a year ago. Provision Coverage Ratio is improved to 94.03 per cent as on June

State Bank of India raises Rs 10,000 crore via infra bonds at 7.54%

Prices issue at finer rate amid hardening yield; Gets bids worth Rs 21,698 crore

IDFC First Bank Q1FY24 results: Net profit rises 61% YoY at Rs 765 cr

Its net interest income grew by 36 per cent YoY from Rs 2,751 crore in Q1FY23 to Rs 3,745 crore in Q1FY24

Indian banks to witness record profitability in FY24: SBICAPS report

It added that the repo rate is expected to remain at current levels until late in FY24

PNB Q1FY24 results: Net profit up 307% to Rs 1,255.4 cr YoY, GNPAs at 7.73%

PNB's net NPAs also declined to 1.98% in the June quarter from 2.72% in the previous quarter

HDFC Bank overtakes SBI in CRISIL's corporate banking ranking for 2023

For middle market corporates, HDFC Bank again topped the list of 2023 Leaders among local banks, and joined ICICI Bank as the year's joint Greenwich Quality Leaders

Canara Bank Q1FY24 net up 74.81% to Rs 3,534.8 crore, NII up 27.7% YoY

The asset quality profile improved, with gross NPAs declining to 5.15 per cent in June 2023 from 6.94 per cent in June 2022

Private sector lender HDFC Bank expects 17-18% credit growth this year

Country's biggest private sector lender HDFC Bank expects 17-18 per cent loan growth during the current financial year as there is enough credit demand. Effective July 1, the parent mortgage firm HDFC Ltd merged with its subsidiary HDFC Bank making it the second biggest lender after State Bank of India. During the first quarter, the total advances of the bank rose by 15.8 per cent to Rs 16.15 lakh crore. "On an overall basis, we are confident that there is enough credit demand. It is for us to see which one we want and what time we start to build in," HDFC Bank Chief Financial Officer (CFO) Srinivasan Vaidyanathan said in a recent call with analysts. The bank will be selective in terms of credit and will not participate in certain loans, he said, adding, "if the price is not to our liking, we do not need it." Meanwhile, vice chairman of now merged entity HDFC Ltd Keki Mistry has become the most valued independent director. The market capitalisation of the listed companies includin

Will look at reverse merger if viable to shareholders: Utkarsh SFB MD & CEO

'During the last six years, we have created new verticals like MSME, affordable housing, and small corporates'