Page 10 - Banking System

Inflation makes humbled central bankers scale back their ambitions

The first step for the newly humbled monetary policymakers is getting prices back under control without creating economic havoc

Financial sector reliance on big tech cos poses major risks: Axis Bank CEO

Companies providing software and other technology support like cloud services to the financial system are trickling down to a few, which can create major systemic risks later, according to a top banker. "Companies which are providing software, platforms and cloud systems to the banking and financial system are trickling down to a few," Axix Bank managing director and chief executive Amitabh Chaudhry said addressing an event on corporate governance. It was organised by ex-Sebi chairman M Damodaran's advocacy Excellence Enablers here on Thursday. Going a step further he warned that "the country's banking system now relies on two three big companies for their software service requirements, and this can lead to emerging risks in case these companies stop investing and ensuring that those platforms are adaptable to this new world". Chaudhry said such concentration is leading to pressure on the banking system to invest in technology in order to take care of the macro requirements. "We h

Amisha Vora increases stake four fold to 96% in Prabhudas Lilladher

Acquired stakes of partners Arun Sheth, Dhiren Sheth and Dilip Bhatt. Vora will now serve as chairperson and MD of PL Group

Bank borrowings up 2x amid rush to fund credit growth, shows RBI data

As liquidity shrinks, lenders' reliance on short-term funding routes increases

India considers plan to reduce short-term borrowing as yields surge

The government may avoid incremental borrowing via the bills and only borrow to meet its previous repayment needs in the next quarter

Global banking is a bright spot

The world's financial system faces an intimidating set of challenges, but the lessons of the global financial crisis are holding banks in good stead

Pakistan govt to implement 'interest-free' banking system by 2027

In a significant move, Pakistan's Finance Minister Ishaq Dhar on Wednesday announced that the country would move towards an 'interest-free' banking system under the Islamic law by 2027. The announcement came with Finance Minister Dhar conveying the government's intention of withdrawing its appeals against the Federal Shariat Court's April decision of eliminating interest from the country in five years, the Dawn newspaper reported. According to the Federal Shariat Court (FSC), the prevailing interest-based banking system in Pakistan was against the Sharia law as interest was absolute in all its forms according to the injunctions of Islam. "With the permission of the prime minister and consultation with the State Bank of Pakistan governor, I'm announcing on behalf of the federal government that the SBP and National Bank of Pakistan will withdraw their appeals from the Supreme Court and our government will fully try to as quickly as possible implement an Islamic system in Pakistan," Da

Moody's downgrades Italian economy amid inflation, energy concerns

Moody's slashed its assessment of the country's banking system from "stable" to "negative", and said it expects conditions for the banking sector to deteriorate further over the coming 12 to 18 months

The battle for deposits will intensify

The challenge before the banking system is how to keep the net interest margin healthy in a rising interest rate cycle

Private banks' net profit soars on healthy loan growth, higher margins

NIMs expanded as banks hiked rates on lending faster than those on deposits

Credit card spends touch record high of Rs 1.22 trillion in September

Banking system saw a net reduction of close to 290,000 cards during this period, impacted by RBI norms warranting deactivation of cards that are inactive for a year

UP gets digital banking footprint with four of the 75 DBUs on its soil

The DBU are being set up to ensure the benefits of digital banking reach the remotest of places

Liquidity slips into deficit on high credit growth, festival loan demand

Banks face pressure to raise deposits; weighted average call rate highest in 3 years

HSBC says exploring sale of Canadian operations for latest disposal

A potential sale of HSBC's 100% equity stake in HSBC Bank Canada is among the options being explored, the lender said in a statement.

'Upper layer' NBFC tag for Tata Sons calls for a new compliance policy

Tata Sons will have to appoint a new chief compliance officer (CCO)

Banks can boost liquidity by drawing down on CRR: RBI governor Das

The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs

Bond yields fall on short-covering; market still hopes for index inclusion

Call rate closes at highest since October 2019 as liquidity tightens

Liquidity slides into deficit for first time in over 3 years: RBI data

Days of easy money over as credit growth rises

Surplus liquidity slumps to Rs 3K cr on tax outflows, shows RBI data

The RBI's average daily absorption of excess liquidity was at Rs 3.8 trillion during June-July against Rs 5.5 trillion in May and Rs 7.4 trillion a month ago

HDFC Bank targets nearly Rs 1-trillion deposit mop-up every quarter

In the recent roadshows, the bank's management sounded confident of its ability to deliver both loan growth as well as deposit growth, a report by Macquarie Research said on Monday