Page 44 - Banks

Tech startups find one of their last funding sources shrinking up

Climbing interest rates have made the funding more expensive for companies, and one of the biggest venture lenders faced a run on the bank that forced government regulators to seize it and sell it

Bank of Baroda launches electronic bank guarantee on its digital platform

State-owned Bank of Baroda on Wednesday announced the launch of electronic bank guarantee (e-BG) on its BarodaINSTA platform, in partnership with National E-Governance Services Limited (NeSL). NeSL is India's first and only Information Utility and is regulated by the Insolvency and Bankruptcy Board of India (IBBI) under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC). With this launch, Bank of Baroda said it has joined a select group of banks to issue electronic bank guarantees. Electronic bank guarantee is a start-to-end digital process across the complete lifecycle of a BG including issuance, amendment and closure resulting in substantial reduction in the turnaround time in issuing a BG, while at the same time bringing in greater security and accessibility. The conventional paper-based process of issuing inland Bank Guarantees normally takes a few days to execute from BG issuance to receipt by the beneficiary, the lender said. Further in the absence of a central

The tap still left open

Continuing fiscal laxity in the US means monetary policy must do more of the inflation fighting, increasing risks of financial accidents

Indian Bank logs Rs 5,281 cr net profit, plans to raise Rs 7,000 cr funds

Indian Bank closed FY23 with a net profit of Rs 5,281.70 crore and plans to raise about Rs 7,000 crore through equity and bond issues.

Banking system sheltered from wider sector turmoil seen globally: FSDC

FSDC considers the country's banking system to be protected from any spillover from issues in the sector globally, country's economic affairs secretary said

FSDC pitches for a special drive to settle unclaimed deposits in banks

High-powered Financial Stability and Development Council (FSDC) headed by Finance Minister Nirmala Sitharaman on Monday underlined the need of launching a drive to help people get their unclaimed deposits in banks and other financial institutions. Briefing reporters about the discussions in the meeting, Economic Affairs Secretary Ajay Seth also said there is no spillover effect of the failure of American banks on the Indian financial system, which is "well protected". The 27th meeting of the FSDC was attended by all financial sector regulators, including RBI Governor Shaktikanta Das. The secretary also said there was a view that the government should expedite the required legislative changes to give effect to the proposals announced in the Union Budget. On the unclaimed deposits matter, Seth said the FSDC was of the view that a drive should be undertaken to ensure people get their unclaimed deposits lying with financial institutions. About Rs 35,000 crore unclaimed deposits as of

Canara Bank consolidated net profit jumps 74% to Rs 3,337 cr in March qtr

State-owned Canara Bank on Monday reported a 74 per cent jump in March quarter consolidated net profit to Rs 3,336.51 crore, helped by higher core income and lower provisions. The Bengaluru-based lender had reported a net profit of Rs 1,918.80 crore in the year-ago period. For FY23, its post tax profit grew to Rs 11,254.75 crore from Rs 6,124.83 crore in FY22. In the latest March quarter, the lender's core net interest income grew 23 per cent to Rs 8,617 crore. This was due to a 17 per cent growth in advances and a 0.14 per cent expansion in the net interest margin to 3.07 per cent. Its other income grew 7 per cent to Rs 4,776 crore but was also hit by a 72 per cent decline in the treasury income. Canara Bank's managing director and chief executive K Satyanarayana Raju said the bank will aim to grow its overall loan book in double-digit in FY24, and denied it being a moderation, saying the lender believes in over-delivering. Raju said the bank registered a corporate loan book ...

Indian Bank's Q4 profit up 47% to Rs 1,447 cr, driven by fall in bad loan

State-owned Indian Bank on Monday reported a 47 per cent rise in net profit to Rs 1,447 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The bank had earned a net profit of Rs 984 crore in the year-ago period. During the quarter, the bank's total income increased to Rs 14,238 crore against Rs 11,405 crore a year ago, Indian Bank said in a regulatory filing. Interest income grew to Rs 12,244 crore during the period under review from Rs 9,832 crore in the corresponding quarter of the preceding fiscal. The bank's board has recommended a dividend of Rs 8.60 per share or 86 per cent of Rs 10 face value for the year ended March 31, 2023. Gross non-performing assets (NPAs) were reduced to 5.95 per cent of gross advances as of March 31, 2023, from 8.47 per cent by the end of March 2022. Net NPAs also came down to 0.90 per cent of the advances from 2.27 per cent a year earlier. The fall in the bad loans ratio helped cut the provisions towards N

Warren Buffett says executives must be accountable for failed banks

Buffett also called out regulation overseeing the banking sector as riddled with skewed incentives, as well as poor messaging by regulators, politicians and the press to the American public

Five-day work for bank employees soon, FinMin to issue notification: Report

However, bank employees will be required to work an additional 40 minutes per day from 9:45 am to 5:30 pm

Here's how banks are coping with surge in cyber attacks, phishing, fraud

An RBI report on financial stability highlighted that the overall number of online banking frauds and card frauds increased from 1,532 in H1FY22 to 2,321 in H1FY23

RBI updates KYC instructions on wire transfers for banks, institutions

The Reserve Bank on Thursday instructed banks and other financial institutions to ensure cross-border as well as domestic wire transfers contain complete information about the originator and beneficiary. The central bank has updated instructions in the Master Direction on Know Your Customer (KYC) related to wire transfers and also aligned the same with the relevant recommendation of the Financial Action Task Force (FATF). "All cross-border wire transfers shall be accompanied by accurate, complete, and meaningful originator and beneficiary information...," as per the updated instructions in the Master Direction. Also, domestic wire transfers, where the originator is an account holder of the ordering regulated entity (RE), should be accompanied by originator and beneficiary information, as in the case of cross-border wire transfers. "Domestic wire transfers of Rs 50,000 and above, where the originator is not an account holder of the ordering RE, shall also be accompanied by originato

IndusInd Bank likely to get added to MSCI during Aug rebalancing exercise

The addition will be a boost for the private sector lender's stock price as it could result in inflows of over $300 million (Rs 2,500 crore)

38 new branches, ATMs to be opened in Arunachal Pradesh: Union minister

Union Minister Dr Bhagwat Kishanrao Karad has said that the banking industry would expand its network in Arunachal Pradesh as 38 new branches and an equal number of ATMs will be opened in the state in the next six months, according to an official statement issued here on Wednesday. The expansion of the banking network is aimed at improving the economy of the northeastern state, Karad, the minister of state for finance, said after reviewing various financial schemes during a state-level bankers' committee meeting on Tuesday. "To fulfil Prime Minister Narendra Modi's dream to expand the country's economy to USD 5 trillion, there is an urgent need to work in every sector," the minister said, as quoted by the communiqu. For penetration of banking services in rural areas, the state government and bank officers need to work tirelessly, he said. A programme for financial literacy among people in urban and rural areas is going on through four mobile vans of NABARD. He, however, said, "Mor

Fino Payments Bank's net profit jumps 25% to Rs 22.08 cr in March quarter

Fino Payments Bank on Tuesday reported a 25 per cent increase in its post-tax net profit for the March 2023 quarter at Rs 22.08 crore. The Navi Mumbai-headquartered company had posted a post-tax net profit of Rs 17.62 crore in the year-ago period. Its total income increased to Rs 323.43 crore, up from Rs 285.29 crore in the year-ago period, and Rs 314.10 crore in the preceding December quarter. Its operating expenses rose to Rs 287 crore from Rs 263 crore in the year-ago period, the payments bank said in a statement.

Interest on bank deposits rising faster than on loans: CARE Ratings

The one year median Marginal Cost of Fund based Lending Rate (MCLR) of SCBs increased from 8.55 per cent in March 2023 to 8.60 per cent in April 2023

Punjab & Sind Bank's Q4 net profit up 32%, gross NPAs down to 6.97%

In FY23, the net profit was up 26.3 per cent to Rs 1,313.03 crore

Timeline: Road to First Republic Bank's collapse; to be sold to JPMorgan

Last week, First Republic reported a more than $100 billion plunge in deposits in the first quarter that sparked a brutal sell-off in the lender's shares

Large corporates will never be allowed to open a bank in India: N Vaghul

Large corporates will never be allowed to open a bank in India, veteran banker N Vaghul has said. Vaghul said India has learnt from its pre-bank nationalisation experience and will never repeat the same mistakes by allowing large corporations into banking. In the last round of licensing before it was made on-tap, a slew of corporates had unsuccessfully applied for a banking license. Two years ago, a RBI discussion paper made a case for allowing the large corporations because of their ability to get capital which will in turn fund economic growth. That discussion led to a raft of criticism by many, including former RBI top brass, and did not move ahead. Speaking to reporters, Vaghul suggested that the capital needed for economic growth will come from the public, which is keen to invest in a lender which is run professionally. Industrial houses "cannot be banking", Vaghul said, recalling the past experiences with them and how state ownership of banks became popular. "There used to

Fed's review report of supervision in Silicon Valley Bank collapse out

The Federal Reserve is scheduled Friday to release a highly-anticipated review of its supervision of Silicon Valley Bank, the go-to bank for venture capital firms and technology start-ups that failed spectacularly in March, setting off a crisis of confidence for the banking industry. The review, due to be released at 11 a.m. eastern, is expected to examine how regulators may have missed warning signs in Silicon Valley Bank's business and whether they could have been addressed before the bank failed. Further, the report is expected to look at what regulators could do better to prevent a similar bank failure in the future. Federal regulators seized Silicon Valley Bank on March 10 after customers withdrew tens of billions of dollars in deposits in a matter of hours. Two days later, they seized Signature Bank of New York. Although regulators guaranteed all the banks' deposits, customers at other midsize regional banks rushed to pull out their money often with a few taps on a mobile ...