Page 13 - Banking

Banks' underwriting standards at risk amid consumer loan growth: Fitch

Fitch Ratings on Monday said Indian banks' risk appetite through higher loan growth will remain a key consideration for their creditworthiness despite improved financial performance. It said asset quality pressures from the previous credit cycle are subsiding, creating a favourable business environment. This has bolstered banks' potential and appetite for growth. Bank loans grew by 16 per cent in the financial year ended March 2024, similar to FY23, exceeding the 8 per cent CAGR (compound annual growth rate) over FY15-FY22. Retail loans constitute around 10 per cent of system loans, and grew at a 20 per cent CAGR since FY21, fuelled by a shift towards unsecured credit to expand margins, the US-based rating firm said. Large private banks gained significant market share in the last credit cycle and continue to grow rapidly; state banks also returned to brisk growth but lagged large private banks, Fitch said in a report titled 'Risk profile weighs on Indian banks' viability ratings ..

Q4 Results update: Canara Bank profit surges 18% to Rs 3,757 crore

State-owned Canara Bank on Wednesday reported an 18 per cent rise in its net profit to Rs 3,757 crore during the fourth quarter ended March 2024. The Bengaluru-based lender had earned a net profit of Rs 3,175 crore in the year-ago period. During the quarter, the bank's total income increased to Rs 34,025 crore as against Rs 28,685 crore a year ago, Canara Bank said in a regulatory filing. Interest income grew to Rs 28,807 crore during the period under review from Rs 23,910 crore in the corresponding quarter a year ago. The bank's board recommended a dividend of Rs 16.10 per equity share (i.e., 161 per cent) of face value of Rs 10 each to the shareholders for 2023-24, subject to approval at the ensuing Annual General Meeting. On the asset quality side, the bank's Gross Non-Performing Assets (NPAs) moderated to 4.23 per cent of gross advances as of March 31, 2024, from 5.35 per cent by the end of March 2023. Net NPAs also came down to 1.27 per cent of the advances from 1.73 per cen

Axis Bank to bring in expats in latest move to woo global companies

Axis is focused on companies from countries like South Korea, Japan, US, Germany, Italy and France that have good ties with India

Banks could boost revenues by 6% with Generative AI: Accenture report

Banks can significantly increase employee productivity and revenues by incorporating generative AI (GenAI) in their operations, according to a report by IT company Accenture. Accenture analysed publicly available employee data to estimate the impact of generative AI on banking tasks. The company modelled the financial implications for over 150 large banks globally, including Indian public and private sector banks, over a three-year period. "Banks that move quickly to scale generative AI across their organisations could increase their revenues by up to 600 bps (basis points) in three years," the research revealed. Banks which effectively adopt and scale generative AI could increase employee productivity by up to 30 per cent by streamlining numerous language-related tasks, it said. "Operating income could increase by around 20 per cent, while return on equity levels could rise by 300 bps...By helping banks operate more efficiently, the technology could lead to 1-2 per cent in cost ..

RBI asks all regulated entities to review their lending practices

The regulator has also asked the entities to take corrective measures, including system-level changes

Over 73% of KYC records validated, systems in place for remaining: KRAs

15% under KYC Registered status, 12% on hold as of March 31

Five-day week not there yet, but bank wage settlement has a lot for bankers

While the wait for a five-day week gets longer, the most interesting developments that make the agreement progressive and humane relate to leave

US banks seen booking more commercial property losses, loan sales

Buschbom said office loans remain the "biggest pain points" for banks, but he also expects stress in the multifamily sector especially construction loans

RBI rejects Tamilnad Mercantile Bank's proposal for CEO candidate

Bank has been asked to submit "fresh panel of candidates with suitable experience" for the position of chief executive

RBI imposes curbs on Shirpur Coop Bank over declining financial position

The Reserve Bank of India (RBI) on Monday imposed several restrictions on Maharashtra-based Shirpur Merchants' Co-operative Bank, including withdrawal of funds by customers, in the wake of the lender's deteriorating financial position. In a statement, the RBI said from the close of business on Monday, the bank will not grant or renew any loans and advances, make any investment, incur any liability, transfer or otherwise dispose of any of its properties or assets, without prior approval of the central bank in writing. "Considering the bank's present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions stated in the above RBI directions," the central bank said. The RBI further said the eligible depositors would be entitled to receive deposit insurance claim amount of his/her deposits up Rs 5 lakh fr

RBI to allow third-party apps for UPI payments through PPI wallets

Cash deposit facility in banks through UPI soon

Average salary hike in India likely to be 8-11% this year: Randstad India

The junior professionals are likely to outshine senior professionals in terms of salary hike percentage

PM asks RBI to consider innovative credit policies for youth in new sectors

PM attributes the banking sector's profitability and credit growth surge to the decade-long collaboration between his government and the RBI

Growth with trust should be RBI's top most priority next decade: PM Modi

The Reserve Bank has to accord "top-most priority" to growth and at the same time focus on trust and stability, Prime Minister Narendra Modi said on Monday. Addressing the inauguration of the event commemorating 90 years of the Reserve Bank of India (RBI) here, Modi said the next decade is as important for attaining the goal of developed India as it is for the RBI, which will complete 100 years of existence in 2035. Modi said as per the "mantra" of the central bank, "The RBI should make fast growth its top-most priority, along with focusing on trust and stability." Since 2016, keeping inflation under check has become the primary goal of the RBI. Often, there are voices who have pitched for additional attention to growth through measures like rate cuts. The comments come days ahead of the first monetary policy review of the new fiscal year. Modi said the "reflection" of double-digit inflation rate was not visible in the financial policies earlier, and claimed credit for giving the

Bank Holidays in April 2024: Here's the full holiday list for April month

In the month of April, banks will remain shut for 12 days. If you are planning to visit banks this month, here is the full holiday list you should know

Banks closed for 14 days in April; Check the state-wise list of holidays

On the account of public holidays, regional holidays, and regular closures on second and fourth Saturdays and all Sundays, banks will remain in various states across the month

Govt invites feedback on draft accessibility guidelines for banking sector

The government has invited feedback and suggestions on its draft accessibility guidelines for the banking sector with the aim to ensure that banking services are accessible to all, including persons with disabilities. The draft rules by the Department of Disabilities Affairs covered various aspects of physical infrastructure, automated machines, digital platforms, and training initiatives within the banking sector. By providing detailed specifications and requirements, the guidelines said it aims to create an environment that is welcoming and accommodating to individuals with diverse abilities. According to the draft guidelines, banks are required to ensure that their information or service counters are accessible to all users. This includes provisions for wheelchair users, individuals of short stature, and those with sensory disabilities. Specific measures such as tactile guiding indicators, adjustable counter heights, and hearing enhancement systems are mandated to facilitate ..

RBI directs all bank branches dealing in govt biz to remain open on Mar 31

The Reserve Bank of India (RBI) on Wednesday advised banks to keep its branches dealing with government business to remain open on March 31. The last day of the current financial year is a Sunday. "The Government of India has made a request to keep all branches of the banks dealing with Government receipts and payments open for transactions on March 31, 2024 (Sunday) so as to account for all the Government transactions relating to receipts and payments in the FY2023-24 itself," the RBI said in a statement. Accordingly, agency banks are advised to keep all their branches dealing with government business open on March 31, 2024 (Sunday), it said.

Reit industry pitch for direct bank lending, classification as equity

Indian Real Estate Investment Trust (REIT) industry on Wednesday pitched for the entities to get access to direct bank lending and classification as equities. At present, such vehicles can issue bonds or borrow from non-bank lenders or mutual funds, but are prohibited to borrow from banks, said the Indian REITs Association (IRA), a newly formed umbrella body for the five-year-old sector, which comprises four listed entities. The body's Chairman and Embassy REIT's Chief Executive Arvind Maiya told reporters it is in touch with the RBI (Reserve Bank of India) for allowing banks to lend to such vehicles. The real estate industry is asset-heavy and needs funds regularly to buy assets for which it should be allowed to borrow directly from banks, he added. Typically, banks have access to deposits which brings down the cost of funds, and hence, the cost of borrowing can become softer for a borrowing entity. Alok Aggarwal, the Managing Director and Chief Executive of Brookfield India Real

40% campus hires in 2023 were women; IT attracts highest participation

HirePro report reveals 5% surge in female participation in campus hiring, with south India leading the trend