Page 34 - Banks

Capital Small Finance Bank mobilises Rs 157 crore from anchor investors

Capital Small Finance Bank on Tuesday collected Rs 157 crore from anchor investors a day before its initial public offering. The bank has allocated 33.53 lakh equity shares to 19 funds at Rs 468 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE's website. Those who participated in the anchor round are Whiteoak Capital Fund, LC Pharos Multi Strategy Fund, Nippon Life India Trustee Ltd, 360 One Fund, Edelweiss Tokio Life Insurance Company, HDFC Life Insurance Company and ICICI Prudential Life Insurance Company. The Rs 523 crore-IPO of Capital Small Finance Bank consists of Rs 450 crore of fresh issue and the remaining Rs 73 crore of Offer For Sale through which promoters and external investors will dilute 5 per cent of their pre-issue holdings. Those selling shares in the OFS include Oman India Joint Investment Fund II, American Capital and Amicus Capital Private Equity. The bank's maiden public issue, with a price band of Rs 445-468 per

RBI cancels licence of Jai Prakash Narayan Nagari Sahakari Bank

The RBI has cancelled the licence of Jai Prakash Narayan Nagari Sahakari Bank Basmathnagar, Maharashtra, as the lender, with its present financial position, would be unable to pay its present depositors in full. The Commissioner for Co-operation and Registrar of Cooperative Societies, Maharashtra, has been requested to issue an order for winding up the bank and appoint a liquidator, the RBI said in a statement on Tuesday. On liquidation, every depositor would be entitled to receive a deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the bank, about 99.78 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC, the Reserve Bank said. As of September 21, 2023, DICGC has already paid Rs 23.89 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank. Giving ...

Finance ministry asks banks to expeditiously resolve issues of exporters

The finance ministry on Monday asked banks and insurance companies to expeditiously resolve issues of exporters and facilitate overseas trade. The meeting chaired by Financial Services Secretary Vivek Joshi was attended by senior officers from the Ministry of External Affairs, the Department of Commerce and the Ministry of Finance. They discussed issues faced by exporters and importers. During the meeting, Joshi advised banks to classify issues faced by them in different categories and indicated that they may consider seeking necessary regulatory guidance from the RBI and also develop a standard operating procedure through the Indian Banks Association (IBA), an official statement said. Functionaries of the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority (IRDAI), the chairman of the State Bank of India (SBI) and senior executives of major commercial banks were also part of the meeting. Insurance related issues faced by traders were discussed with .

Paytm working with other banks for continuity of UPI services on its app

UPI service on Paytm will continue to work as normal as the company is working with other banks to make changes in the back-end for continuity of its services, the fintech firm said on Monday. Paytm UPI service falls under the Paytm Payments Bank, which was recently restrained by the Reserve Bank of India from taking money from customers after February 29. "UPI on Paytm will continue to operate as normal. We are working in the back end to connect with other banks to ensure seamless continuity of service. Users are not required to do anything additional," a Paytm spokesperson said. According to the National Payments Corporation of India (NPCI), PPBL was the top UPI beneficiary among banks in December, with 283.5 crore transactions it received during the month. It had remitted 41 crore transactions in the period. Customers made 144.25 crore transactions on the Paytm Payment Bank App worth Rs 16,569.49 crore in December. Paytm's Bharat Bill Payment Operating Unit (BBPOU) business als

Asian Development Bank appoints Mio Oka as country director for India

Asian Development Bank (ADB) on Monday appointed Mio Oka as its country director for India. He will succeed Takeo Konishi who has been promoted as ADB Director General for South Asia at the Manila headquarters. Oka will take charge of steering ADB operations in India and fostering relations with the government and the country's other development partners, ADB said in a statement. She will lead the implementation of ADB's country partnership strategy, 20232027 that is designed to catalyse robust, climate-resilient, and inclusive private sector-led growth in India, it said. This will be achieved through accelerated structural transformation and job creation, promotion of climate-resilient green growth, and enhanced social and economic inclusiveness, it added. Since the start of its country operations in 1986, ADB has been a steadfast partner in supporting India's development goals and economic growth. "ADB remains committed to bolster India's inclusive and green growth momentum thr

Citi sees opportunity in US bank stocks to 'play offense' after turmoil

In CRE, the exposure to office loans has been the primary concern for investors, but such loans only make up for 1% to 4% of the total for banks under Citi's coverage, Citi said

UniCredit 2023 results: Profit at 8.6 billion euros, stock up 10%

Shares in Italy's second-biggest bank jumped 10% to a nine-year high after the results and as it also upgraded its outlook for a year in which interest rates are expected to start declining

Credit growth of banks could moderate in FY25 on tighter liquidity: S&P

S&P Global Ratings on Monday said strong credit growth of Indian banks could moderate to 12-14 per cent in the next fiscal if deposit growth remains tepid. "Deposit growth continues to lag credit for the Indian banks we rate, leading to tight liquidity conditions," S&P Global Ratings credit analyst Nikita Anand said. Banks may be compelled to look for wholesale funding, S&P said, adding that higher costs of such funding could further strain margins and hurt profitability. Rising cost of funds and potential rate cuts in fiscal 2025 will squeeze net interest margins, it added. "Liquidity is tightening for Indian banks. The sector's strong credit growth could moderate to 12-14 per cent in fiscal 2025 if deposit growth remains tepid, compounded by higher deposit costs and competition for funds," S&P said in a report titled 'Tight liquidity shackles Indian banks' robust credit growth'. S&P expects the share of unsecured personal loans in the banks' total loan book to ...

ED probing Paytm, its bank unit over currency transactions: Report

The sources did not indicate what specific provisions of the Foreign Exchange Management Act (FEMA), which covers individual

Jana Small Finance Bank, Capital SFB IPOs to open on February 7

Bangalore-based Jana SFB is looking to raise Rs 570 crore with Rs 462 crore worth of shares through fresh issuance

Deutsche Bank will cut 3,500 jobs even as it records $4.5 billion profit

Deutsche Bank said on Thursday that it would cut 3,500 jobs as part of efforts to slash costs by 2.5 billion euros (USD 2.7 billion) through next year and boost profits even as Germany's largest lender benefits from higher global interest rates. The bank said it would seek to streamline its marketing network and computer systems and software as it seeks to cut costs. It said the reduction in the number of positions would mostly be for jobs that don't involve directly dealing with customers. The announcement came alongside the release of annual profit figures showing the bank made 4.2 billion euros (USD 4.5 billion) last year, a decline of 16 per cent compared with 2022. It was, however, the fourth straight year in which the bank made a profit. The bank has benefited along with its peers from the global rise in interest rates, which can increase the profit margin between what the bank pays out in interest and what it can earn. CEO Christian Sewing said the results demonstrated ...

Tamilnad Mercantile Bank non-exec director quits for 'compelling reasons'

Bank's performance and share price mute compared to peers, says P C G Asok Kumar

Govt projected to receive Rs 1.02 trn as dividend from RBI, PSBs in FY25

The government on Thursday projected a dividend income of Rs 1.02 lakh crore from the RBI and public sector financial institutions in the next financial year. The government is set to earn a higher dividend of Rs 1.04 lakh crore in the current fiscal against the Budget Estimate of Rs 48,000 crore. The current financial year estimate exceeded the Budget Estimate as RBI paid a dividend of Rs 87,416 crore in May last year. In the previous financial year, the government mobilised Rs 39,961 crore from RBI and public sector financial institutions. Meanwhile, the government estimated Rs 43,000 crore as dividend payments from Central Public Sector Enterprises (CPSEs). Other investments also rose to Rs 50,000 crore during the current fiscal. In all, the government projected to mobilise Rs 1,54,407 crore as dividend from the RBI, public sector banks and CPSEs in the current fiscal. For the next financial year, it is slightly lower at Rs 1.50 lakh crore from CPSEs, RBI and banks. The highe

China merges hundreds of rural banks amid looming financial crisis

After engineering mergers of rural cooperatives and rural commercial banks in at least seven provinces since 2022

Punjab & Sind Bank Q3 results: Net profit drops 69% to Rs 114 crore

State-owned Punjab & Sind Bank on Wednesday reported a 69 per cent decline in its net profit to Rs 114 crore for the third quarter ended December 2023. The Delhi-headquartered bank had earned a net profit of Rs 373 crore in the same quarter a year ago. Its total income increased to Rs 2,853 crore during the quarter under review against Rs 2,245 crore in the same period last year, Punjab & Sind Bank said in a regulatory filing. The interest income rose to Rs 2,491 crore against Rs 2,107 crore in the year-ago period. On the asset quality front, gross non-performing assets (NPAs) declined to 5.70 per cent of the gross loans by the end of December 2023 from 8.36 per cent a year ago. Similarly, net NPAs or bad loans came down to 1.80 per cent from 2.02 per cent at the end of the third quarter of the previous fiscal. Capital Adequacy Ratio of the bank improved to 16.13 per cent compared to 15.57 per cent at the end of December 2022. During the quarter, the bank crossed a business ...

Banks' valuation discount to Sensex hits 10-year high, shows data

This is due to a relatively poor showing by top banking stocks on the exchanges in recent months. Analysts attribute this to the prospects of their muted earnings growth in the next few quarters

New IMPS fund transfer rules coming soon: Here is all you need to know

New IMPS rules will be implemented from February 1, 2024. This will facilitate fund transfers using a mobile number and bank name

Goldman Sachs senior exec Jim Esposito to retire after 3 decades at bank

In his work across fixed income, equities and investment banking, "Jim has also helped our businesses navigate extraordinary change in our industry

PNB board approves fund raising of Rs 7,500 cr via share sale in FY25

State-owned Punjab National Bank (PNB) on Monday said the board of the bank has given green signal for raising Rs 7,500 crore through Qualified Institutions Placement (QIP)/Follow-on Public Offer (FPO) during 2024-25. The decision in this respect was taken in a meeting held on January 29. The board gave nod for raising of equity capital for an amount aggregating up to Rs 7,500 crore in one or more tranches during FY2024-25 through Qualified Institutions Placement (QIP)/Follow-on Public Offer (FPO) or any other permitted mode or a combination, PNB said in a regulatory filing. The fund raising should be done in such a manner that the shareholding of the Government of India does not fall below 52 per cent, it added.

UBS, Credit Suisse lost ground in combined Swiss fund business over 2023

The market share of the combined bank, which became a single entity last year after UBS stepped in to rescue Credit Suisse, fell to 37.6% in 2023, down from 39.3% the previous year