Page 42 - Banks

'Bad bank' sees loan transfers dwindle on valuation, liability woes: Report

NARCL, which started in July 2021 to buy 2 trillion rupees in bad loans, has bought 213.5 billion rupees of such loans as of July 17, according to a government statement to parliament

UBS ends Swiss govt's rescue packages that aided Credit Suisse takeover

UBS said Friday it has shut down rescue packages agreed with Swiss authorities that made available up to 200 billion Swiss francs (about USD 230 billion) to help shepherd through its takeover of ailing rival Credit Suisse and avert an international banking crisis. The Zurich-based banking giant, which completed the takeover on June 12, said it had moved to voluntarily terminate" rescue programmes that aimed to help mop up billions of losses and provide liquidity to the banks as they moved forward on the complex deal. UBS said it had repaid 50 billion francs in loans from the Swiss National Bank and 100 billion francs in liquidity support from the Swiss government, while ending a 9 billion franc loss protection agreement with the government. In total, UBS also paid some 730 million francs in commitment fees and risk premiums to Swiss authorities, comprised of 200 million to the government and 530 million to the national bank. Swiss authorities and UBS announced the hastily arranged

10% incremental CRR temporary, will drain out Rs 1 trn from system: RBI

Short-term rates on money market instruments like call money rates, treasury bills and commercial paper are likely to increase by 15-20 bps in the near term: ICRA

RBI to introduce framework to switch from floating to fixed interest rates

The Reserve Bank on Thursday said it will come out with a framework allowing borrowers to switch to fixed interest rate from floating interest rate, a move that would provide relief to borrowers of home, auto and other loans reeling under the impact of high interest rate. Unveiling the bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das said under the framework, to be put in place shortly, the lenders will have to clearly communicate with the borrowers about tenor and EMI. "The supervisory reviews undertaken by the Reserve Bank and the feedback and references from members of public have revealed several instances of unreasonable elongation of tenor of floating rate loans by lenders without proper consent and communication to the borrowers," he said. To address the issue, it is proposed to put in place a proper conduct framework to be implemented by all Regulated entities to address the issues faced by borrowers, he said. "The framework envisages that lenders should ..

Banks to maintain 10% additional CRR from Aug 12 as temporary measure: RBI

Action is part of central bank's efforts to reduce surplus liquidity, it says after monetary policy announcement

Large exposures carefully scrutinised; will remain vigilant in good times

The slippage went high due to the recognition of one mid-corporate account into NPA with an exposure of Rs 92 crore

Banks write off Rs 14.56 trn NPAs in last nine financial years: Centre

Banks have written off bad loans worth Rs 14.56 lakh crore in the last nine financial years starting 2014-15, Parliament was informed on Monday. Out of the total Rs 14,56,226 crore, written off loans of large industries and services stood at Rs 7,40,968 crore. Scheduled Commercial Banks (SCBs) have recovered an aggregate amount of Rs 2,04,668 crore in written-off loans, including corporate loans, since April, 2014 and up to March, 2023, Minister of State for Finance Bhagwat Karad said in a written reply to Lok Sabha. Loans written-off during the financial year, net of recovery in written-off loans during the financial year (net write-off) in public sector banks (PSBs) was Rs 1.18 lakh crore in the financial year (FY) 2017-18, which has declined to 0.91 lakh crore in FY 2021-22 and to Rs 0.84 lakh crore (RBI provisional data) in FY 2022-23, he said in another reply. Net write-off loans by private sector banks stood at Rs 73,803 crore (RBI provisional data) in FY 2022-23, he said. N

Five-day work week in banks soon as industry demand gets nod from IBA

The proposal has now been sent to the finance ministry for its final approval. If approved, all Saturdays will be declared as bank holidays

SBI Q1 results: Net profit up 178% to Rs 16,884 cr, NII rises 25%

Credit growth robust in all segments, says chairman of public sector lender

Banks' profitability may have reached peak, set to fall: Mckinsey

Banks' profitability may have reached its peak and is set to fall going ahead due to a slew of factors, global consultancy Mckinsey & Company said on Wednesday. The firm also said that the banking system is meeting less than a third of the credit demand for green finance, and recommended moves like inclusion of such finance under priority sector lending and creating a credit guarantee platform. Aspects like rise in deposit costs due to the lagged effect of rate hikes and the war for deposits, higher operational costs on tech spends and hiring of specialized talent, and higher credit costs as the stress on the books goes up will hurt the profitability, its senior partner Peeyush Dalmia told reporters here. "We expect RoAs (return on assets) to absolutely fall..., if I were to take a 12-18 month view, it will (fall) absolutely," he said, pointing to his outlook on the key ratio arrived at by dividing net income with the total assets. Dalmia said in the next 24-30 month period, he ...

Standard Chartered sees senior banker exits in India as rivals circle

Standard Chartered Plc is losing several senior long-serving executives in its India operations, with some heading for new opportunities at rival local banks

Jana Small Finance Bank refiles IPO papers, seeks to raise Rs 575 cr

The offer consists of fresh issue of shares worth up to 5.75 billion rupees ($70 million) and an offer for sale of up to 4.1 million shares, according to the draft herring prospectus

Banks to remain shut for 14 days in August 2023, check full list here

Banks will remain shut for a total of 14 days in the month of August. However, banking services like Internet banking and ATMs will remain operational throughout the country on all holidays

Canara Bank Q1FY24 net up 74.81% to Rs 3,534.8 crore, NII up 27.7% YoY

The asset quality profile improved, with gross NPAs declining to 5.15 per cent in June 2023 from 6.94 per cent in June 2022

Nil return: A must-do even for those with income below threshold level

Banks, passport and visa authorities ask for your ITR, and it's a prerequisite for tax refund

Top Headlines: Welfare schemes in poll-bound states, Q1FY24 results, more

Business Standard brings you the top headlines at this hour

Financial services secy asks banks to achieve financial inclusion targets

Financial services secretary Vivek Joshi has urged public sector banks to achieve the targets allocated to them under various schemes for financial inclusion for the current financial year at the earliest. During a review meeting with the top management of state-owned banks and Nabard chairman, Joshi exhorted the banks to expeditiously clear the sanction and disbursement pendency of applications under PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme. He further urged banks to devise the strategy and step up efforts to increase the digital onboarding of street vendors and scale up their digital payments, the finance ministry said in a statement on Thursday. PM SVANidhi scheme envisages empowerment of street vendors through hassle free access to affordable credit and their digital onboarding for their economic development. During the meeting, he reviewed the progress under various social security (Jan Suraksha) schemes, including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradh

IDFC First Bank looks to raise Rs 2,000 crore in second half of FY24

IDFC First Bank has board approval to raise 40 billion rupees. It has already raised close to half that amount through a preferential allotment to IDFC Ltd

Wage talks between bank employees unions and banks to start on July 28

"IBA was positive to our demand and agreed to work out an amicable resolution of this issue at the earliest", AIBEA claimed

RBI buys $7.37 billion in spot foreign exchange market in May: Bulletin

The Indian rupee depreciated by over 1% against the dollar in May