Page 46 - Banks

Long queues in banks across Delhi as Rs 2,000 notes exchange begins

As process for exchange of Rs 2,000 currency notes began on Tuesday, long queues were observed at various bank branches in Delhi as customers eagerly exchanged currency notes for smaller denominations

RBI meet: Focus turns to public sector bank boards' strategic role

Lenders seek a raise in independent directors' remuneration

Banks express concern over high overnight funding costs, ask for RBI's help

Indian banks put forth their concerns over elevated overnight rates at a money markets association meeting last week and have informally asked the Reserve Bank of India to help manage liquidity

Russian firms investing rupee surplus in Indian govt debt: IBA chief

IBA chief Sunil Mehta is the first senior official to confirm that Russian funds in Indian banks were being invested into government securities as it gives them the advantage of easy liquidity

Was unaware of bank's problems when stocks were sold, says ex-SVB CEO

Becker, who sold SVB shares through the first quarter - the largest sale of which occurred on Feb 27, less than two weeks before the bank collapsed on March 10

Banks request RBI for 1 more year to implement new loan provisioning system

Banks have requested the RBI for one more year's time to implement the system of Expected Credit Loss (ECL) for provisioning of loans. At present, banks set aside money after an asset turns bad, and once the new system is put in place, it is widely expected to have an one-time impact on banks' profits. "We have requested the regulator to allow us little more time to prepare ourselves for this," industry lobby grouping IBA's chief executive Sunil Mehta told reporters on the sidelines of a Fintech event here on Tuesday. Answering a specific question on the time sought, Mehta said, "we have requested them (RBI) for one more year" He also added that in the "worst case scenario", the banking system is gearing up for the switch to the new system. "... the banking sector is already geared up, few of the banks have already developed their systems (and) have got their data in place on which they can design their ECL-based risk models," he said. The Reserve Bank of India (RBI) has already

Banks tighten rules around lending money to airlines after Go Air crisis

Repeated company failures dent the entire aviation industry's creditworthiness, the chief financial officer of an airline said

Give banks an oversight over lending practices of NBFC borrowers: SBI MD

SBI's managing director C S Setty on Friday pitched for banks to have an oversight on lending practices of borrowers from the non-bank lenders' segment. Speaking at a conference organised by industry lobby grouping IMC, he said non-bank lenders should follow the same risk underwriting and credit monitoring principles as done by larger banks from whom they borrow money. He said a good proportion of banks' lending comprises lending to Non Banking Finance Companies (NBFCs) or Micro Finance Institutions (MFIs), and while the bank books may look clean from the outside, it may not be a proper representation of the incipient stress if any. "...the lending practices of these institutions which are borrowing from us, I think the banks have to have oversight on that," Setty told reporters, adding that the issue is "not serious". Banks which have access to low-cost deposits often get into on-lending arrangements with smaller entities like NBFCs who have a better reach, wherein the NBFCs execu

Banks could not hold hearing before classifying account as fraud: SC

The Supreme Court on Friday clarified its March 27 verdict, saying it had not directed banks to accord a personal hearing before classifying a borrower's account as fraud. The clarification came on the plea of State Bank of India which flagged two issues pertaining to the March 27 judgement and said now the NPA account holders, against whom the proceedings were initiated before the verdict, may come and say that stall everything as they were not heard by banks and the hearing should not mean personal hearing. We never stated that the personal hearing be granted to the borrowers. Rather we had said that they should be given adequate notice and an opportunity to make a representation," a bench comprising Chief Justice D Y Chandrachud and Justices P S Narasimha and J B Pardiwala said. On the issue of applicability of the verdict with prospective effect, the bench said that a review petition will have to be filed against the judgement by the SBI. A bench headed by the Chief Justice, on

Banks to launch 100 days campaign to trace, settle unclaimed deposits: RBI

The Reserve Bank of India on Friday said a special 100 days campaign will be launched under which banks trace and settle their top 100 deposits in every district of the country. The banks will commence the campaign from June 1, 2023. Balances in savings/current accounts which are not operated for 10 years, or term deposits not claimed within 10 years from date of maturity are classified as "unclaimed deposits". These amounts are transferred by banks to "Depositor Education and Awareness" (DEA) Fund maintained by the Reserve Bank of India. "The Reserve Bank of India today announced a 100 Days 100 Pays' campaign for banks to trace and settle the top 100 unclaimed deposits of every bank in every district of the country within 100 days," the central bank said in a statement. This measure, it added, will complement the ongoing efforts and initiatives by the Reserve Bank to reduce the quantum of unclaimed deposits in the banking system and return such deposits to their rightful ...

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