Page 25 - Banks

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

RBI cancels licence of K'taka-based Shimsha Sahakara Bank Niyamitha

The RBI has cancelled the licence of Shimsha Sahakara Bank Niyamitha, Maddur (Karnataka) in the wake of its worsening financial position. Consequently, the bank ceases to carry on banking business, with effect from the close of business on Friday (July 05, 2024), the Reserve Bank said in a statement. The Registrar of Cooperative Societies, Karnataka has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the bank, RBI said about 99.96 per cent of the depositors are entitled to receive the full amount of their deposits from the DICGC. Giving details, RBI further said the bank does not have adequate capital and earning prospects, and its continuance is prejudicial to the interests of its depositors. "The bank with i

Indian banks see climate change as their biggest source of systemic risk

It wasn't until earlier this year that the RBI finally released a draft framework that would require financial institutions to devise and disclose their strategies to mitigate climate-related risk

Strong loan growth for small finance banks in Q1FY25, Casa declines

The deposits of the SFBs posted a double-digit increase from the quarter ended in June 2024. Deposits of Equitas SFB grew by 35.40 per cent, Capital SFB by 10 per cent, and Suryoday SFB by 42 per cent

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

Rule changes can help with pan-India customer onboarding: Deutsche Bank

German lender Deutsche Bank will be focussing on the digital channel over the branch model to grow its business in the country, a top official said. Changes in rules by the RBI mandating geographical location restrictions while onboarding customers will be of help, Kaushik Shaparia, chief executive of Deutsche Bank Group, India, told PTI. "If the regulator were to permit digital access over and above the geographical restrictions, I am convinced we can do more. "Currently, there are restrictions as to where you can onboard clients, where your locations are, and the customer has to have an office near one of your locations etc," he said on the sidelines of a bank event here. When asked about the branch strategy in the country, Shaparia quipped that "geography is history", and added that the bank's aim will be to focus more on digital. "Maybe in the past, having a robust branch strategy was critical but with digitisation, geography has become history. So, I think our approach would

China's finance elite face $400,000 pre-tax pay cap, bonus clawbacks

Several Chinese mutual fund managers proposed capping staff salaries at about 3 million yuan, people familiar with the matter said in April

Financial system resilient, banks GNPAs fall to multi-year low at 2.8%: RBI

Indian economy and the financial system remain robust and resilient as the gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent at the end-March 2024, RBI said in its June Financial Stability Report (FSR). Scheduled Commercial Banks' gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent and the net non-performing assets (NNPA) ratio to 0.6 per cent at end-March 2024, it said. "The Indian economy and the financial system remain robust and resilient, anchored by macroeconomic and financial stability. With improved balance sheets, banks and financial institutions are supporting economic activity through sustained credit expansion," it said. The capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of SCBs stood at 16.8 per cent and 13.9 per cent, respectively, at end-March 2024, it said. According to the report, macro stress tests for credit risk reveal that SCBs would be able to comply with mini

Bank holidays in July 2024: Banks to remain closed for 12 days; check list

According to the RBI list, banks will remain closed for 12 days in July, including second and fourth Saturdays and Sundays. Check the full list of bank holidays in July here

ABN Amro nears deal to buy HSBC's German private bank: Report

The takeover of the business, formerly known as Trinkaus & Burkhardt, could be announced over the next two to three weeks, the paper said

Rising deposit costs to weigh on NIMs, RoA of banks: CRISIL Ratings

Deposit costs are seen increasing 25-30 basis points in FY25, after rising about 140 basis points since May 2022

Banks urge RBI to separate pvt, public infra projects in financing norms

Banks are dissatisfied with this arrangement and prefer a graded approach with an initial allocation requirement of 1-2 per cent, which is an increase from the current requirement of 0.4 per cent

Budget wishlist: MFIs seek equity support, govt guarantee for bank loans

Sa-dhan has also suggested a special fund for the northeastern states in view of the unrest in Manipur, which has hit micro lenders that extended loans in the state

DICGC exceeds global average with month-long depositor payout: Patra

In India, deposit insurance is mandatory for all banks, including foreign banks. As of now, 1,997 banks are covered, which includes 140 commercial banks and 1,857 co-operative banks

SBI expects 14-15% credit growth in current fiscal, says Chairman Khara

Given the current economic growth rate, SBI is expecting 14-15 per cent loan growth during the fiscal year 2024-25, the bank's chairman Dinesh Kumar Khara said. "Normally the way we look at it is that the GDP growth rate plus inflation and 2-3 per cent over that. That gives us the number around 14 per cent or so," Khara told PTI in an interview. "Hence, 14-15 per cent credit growth depends upon the opportunities available for lending, and it meets our risk appetite. We will be happy to grow at this pace," he said. As far as deposits are concerned, he said, it grew by 11 per cent last year. "And we have some elbow room available in terms of excess SLR and which ensures that we don't have any pressure on us to raise the deposit rates for supporting our loan-to-deposit ratio," he said. The bank has an excess Statutory Liquidity Ratio (SLR) between Rs 3.5 lakh crore and Rs 4 lakh crore. "Incidentally, I may add here that our loan-to-deposit ratio is around 68-69 per cent only. That l

PSBs outshine private, foreign peers in technical efficiency: SBI report

SBI report says takeover of weaker banks affected productivity of acquiring ones

You may have to pay more for ATM withdrawals as operators seek hike in fees

The Confederation of ATM Industry has approached the RBI to hike the ATM interchange fees by Rs 2

IBA to ask RBI to not alter capital requirement for infra projects: Report

If the RBI's proposal is implemented as is, "the impact will be very modest", Girishkumar Kadam, senior vice president and group head - corporate ratings at ICRA, said at a media briefing

State Bank of India plans to raise up to $3 billion via debt in FY25

Several state run-lenders, including Canara Bank, Punjab and Sind Bank and Punjab National Bank , plan to raise funds via debt this fiscal year

Banks need to revise plans to deal with credit and deposit growth gap: Das

Banks need to re-strategise their business to deal with the persistent gap between credit and deposit growth, RBI Governor Shaktikanta Das said on Friday. He also said that further actions on moderating growth in unsecured loans could be taken, if required. In November last year, RBI had flagged certain concerns on excessive growth in the unsecured retail loans and over-reliance of NBFCs on bank funding. "Recent data suggests that there is some moderation in these loans and advances. We are closely monitoring the incoming data to ascertain if further measures are necessary," he said while announcing the bi-monthly policy. "The message is to convey that RBI is watchful of every aspect of financial sector especially in the banking sector. We are agile, we are watchful and if and when some further measures are required, we will come," he said during an interaction with reporters. The Reserve Bank increased risk weights on unsecured consumer credit and bank credit to NBFCs on Novembe