Page 5 - Banking System

India Inc files ECB plans worth $4.28 bn in April, shows RBI data

The registrations for ECBs by Indian companies almost doubled to $49.2 billion in the year ended March 2024 (FY24) from $26.6 billion in FY23

Must invest adequately in IT systems: RBI Governor Shaktikanta Das to banks

Underscores urgency to keep up with growth of digital payments

RBI's dividend transfer may ease deposit rates if govt spends it: Ind-Ra

India Ratings and Research (Ind-Ra) on Thursday said the Rs 2.11 lakh crore dividend transfer by the RBI is likely to ease liquidity pressure and bring down deposit rates in the banking system if the government spends the amount. It said the mega dividend will give a fillip to the central government's fiscal position, which may lead to additional spending or fiscal consolidation or a combination of both. However, the structural challenges for banks in term of deposit accretion will continue in the medium to long term. "The agency expects the RBI's INR 2.1 trillion dividend transfer to the government will improve the liquidity conditions and alleviate heightened pressure on the banking system deposit, leading to the easing of pressure on cost of liabilities for banks in the near term," Ind-Ra said in a statement. The RBI board last week decided to transfer Rs 2.11 lakh crore dividend to the government out of the profits earned in 2023-24. If the government spends the amount, it will

State Bank of India hikes short term retail FD rates by 25-75 bps

Also hikes bulk deposit rates; other lenders may follow suit

Risk provisioning

The stability of the banking system should be paramount

Small is beautiful, but not always

For most SFBs, being a small bank is part of their journey, not the destination

Federal Bank Q4 results: Profit flat at Rs 906 cr due to pension expense

Bank in advance stages of submitting new CEO names to RBI

RBI says 97.76% of Rs 2,000 currency notes returned to banking system

The Reserve Bank of India (RBI) on Thursday said 97.76 per cent of the Rs 2000 denomination banknotes have returned to the banking system, and only Rs 7,961 crore worth of the withdrawn notes are still with the public. On May 19, 2023, the RBI announced the withdrawal of Rs 2000 denomination banknotes from circulation. The total value of Rs 2000 banknotes in circulation, which was Rs 3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of the high value banknotes was announced, has declined to Rs 7,961 crore at the close of business on April 30, 2024, the Reserve Bank said in a statement. "Thus, 97.76 per cent of the Rs 2000 banknotes in circulation as on May 19, 2023, has since been returned," it said. The Rs 2000 banknotes continue to be legal tender. People can deposit and/or exchange Rs 2000 banknotes at 19 RBI offices across the country. People can also send Rs 2000 bank notes through India Post from any post office to any of the RBI Issue Offices for

South Indian Bank Q4 results: Net profit down 14% at Rs 287.56 crore

The bank's gross non-performing asset in Q4 FY24 came down by 64 basis points from 5.14% to 4.50%

Poonawalla Fincorp Q4 results: Net profit rises 67% to Rs 332 crore

FY24 PAT up 146 per cent year-on-year to Rs 1,683 crore; AUM crosses Rs 25,000 crore

Street Signs: SFBs dive into universal banking waters, Sebi's blank canvas

SFBs will remain in focus in Monday's trade after the RBI issued guidelines for their conversion into universal banks

Lok Sabha Elections 2024 Phase 2: Banks to remain shut today, check details

Lok Sabha Elections 2024 Phase 2: Due to the general elections 2024, banks will remain closed today, April 26. However, online transactions will remain active

DCB Bank Q4 results: Net up 9% at Rs 156 cr, board approves Rs 500 cr QIP

The capital adequacy ratio of DCB Bank stood at 16.59 per cent with Tier-I at 14.53 per cent at the end of March 2024

Cautious approach: Small finance bank model in the slow lane, say experts

Unity Small Finance Bank was the last one to get a licence in the category in November 2021

NaBFID posts net profit of Rs 1,601 cr in FY24; loans stood at Rs 35,342 cr

Considering FY24 being the first full year of business operations, the Board advised that the income be continued to be accumulated as reserves to augment capital growth

Banks can't charge additional than key facts statement, says RBI

KFS is a statement of key facts of a loan agreement, in simple and easier-to-understand language, provided to the borrower in a standardised format

Election season may hit govt capital expenditure spending, FDI inflows

In case of FDI, the total FDI inflows was over $50 billion in FY20 and its share during the election months of April-May 2019 turned out to be 18.1 per cent

Monetary policy: Review of liquidity ratio framework for banks on the cards

Securities that are eligible for the statutory liquidity ratio like central and state government bonds are reckoned as HQLA for the purpose of calculating LCR. Banks have to maintain 100 per cent LCR

IndusInd Bank records 18% growth in advances at Rs 3.42 trillion in Q4

Private sector lender IndusInd Bank on Thursday said it has posted an 18 per cent growth in advances at Rs 3,42,857 crore during the March quarter. Net advances stood at Rs 2,89,924 crore at the end of the fourth quarter of the last financial year, IndusInd Bank said in a regulatory filing. The bank's deposits also rose 14 per cent to Rs 3,84,789 crore in the quarter under review, from Rs 3,36,438 crore in the same period a year ago, it said. IndusInd Bank's low-cost deposits -- current account and saving deposits (CASA) -- declined to 37.9 per cent as against 40.1 per cent of the total liabilities during the quarter. Meanwhile, Suryoday Small Finance Bank reported a 41 per cent increase in gross advances to Rs 8,650 crore for the fourth quarter ended March 2024 against Rs 6,114 crore in the year-ago period. At the same time, the bank posted a 50 per cent jump in deposits to Rs 7,775 crore as compared to Rs 5,167 crore in the same quarter a year ago, Suryoday Small Finance Bank sa

Bandhan Bank's advances increase 17.8% to Rs 1.28 trillion in Q4FY24

Bandhan Bank on Thursday said its loans and advances have clocked Rs 1.28 lakh crore at the end of the fourth quarter of the 2023-24 fiscal, registering a 17.8 per cent growth year-on-year. The lender said the same was Rs 1.09 lakh crore by the end of March 31, 2023. The bank said, in a regulatory filing, that the total deposits during the March quarter of FY'24 stood at Rs 1.35 lakh crore with a 25.1 per cent rise year-on-year. CASA deposits of the lender at the end of the quarter ending March 31, 2024 stood at Rs 50,151 crore. The CASA ratio was at 37.1 per cent. The collection efficiency ratio of the bank at the end of the fourth quarter of the last fiscal stood at 99 per cent, it said. Retail deposits of the bank (including CASA) at the end of the quarter ending March 31, 2024 stood at Rs 93,794 crore, and bulk deposits at Rs 41,404 crore.