Page 49 - Banks

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 ...

After a decade in wilderness, Indian banks healthy, but still not cautious

With the incremental credit-to-deposit ratio running at 111%, Indian banks will have to pay more to savers - sacrificing some part of their high profitability

Looking closely at banks' business models: RBI governor Shaktikanta Das

Citing the recent bank failures in the US and in Europe, Das said risks for individual banks would crop up from their balance sheet, which might have been considered safer

Resilient bank must be financially, organisationally strong: RBI Guv Das

Hinting at cyber risks, the RBI Governor said that it has been identified as the foremost in top 10 operational risks for 2023 based on a global survey of financial institutions

First Republic Bank plunges on report of potential buyers for new shares

These banks have an incentive to deal as the political fallout of the FDIC making them whole on their $30 billion of deposits could be serious

Asian Development Bank operations reach $20.5 bn in 2022: Report

The lender financed institutional reforms to support economic recovery, strengthened public service delivery and growth in key economic sectors

Bank of Maharashtra reports more than double profit to Rs 840 cr in Q4

State-owned Bank of Maharashtra (BoM) on Monday reported a more than two-fold jump in its net profit to Rs 840 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 355 crore in the year-ago period. During the quarter, the bank's total income increased to Rs 5,317 crore as against Rs 3,949 crore a year ago, BoM said in a regulatory filing. Interest income grew to Rs 4,495 crore during the period under review, from Rs 3,426 crore in the corresponding quarter a year ago. The bank's board has recommended a dividend of Rs 1.30 per share or 13 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2023. Gross Non-Performing Assets (NPAs) were reduced to 2.47 per cent of gross advances as of March 31, 2023 from 3.94 per cent by the end of March 2022. Net NPAs also came down to 0.25 per cent of the advances from 0.97 per cent at the end of 2022. The fall in bad loans ratio helped cut

Bank of Maharashtra Q4 net profit more than doubles to Rs 840 crore

Bank has announced a dividend of Rs 1.3 per share with a face value of Rs 10

Biz of moving currency booming, with new revenue streams set to open up

Millions of rural Indians now have debit cards, yet lack access to ATMs. Such drivers are expected to contribute to the growth of ATMs in the rural regions

Banks refuse to take coins worth lakhs from Shirdi temple. Here's why

Due to space constraints, four state-owned banks in Shirdi have already stopped accepting coins

Overnight rates stay above repo as banks borrow before VRRR maturity

The current reporting fortnight ends on Friday, and banks are scrambling to borrow funds to maintain the mandatory reserve requirements, traders said

RBI calls meeting of all bank boards to discuss governance, supervisory

Ethics, supervisory expectations may also figure in May 29 meeting

IndusInd Bank signs $100 mn loan deal with JBIC to push Japanese equipment

Under the deal, IndusInd Bank will offer credit to firms in the supply chain of Japanese OEMs in India, and to final buyers of construction machinery made by Japanese firms

After insurance firms, now private banks under income tax scanner

Two large private banks are suspected of taking advantage of their position as intermediaries to get additional revenue from insurance companies

Banks to remain closed today? Check bank holidays in April 2023 here

Ambedkar Jayanti is an Indian national holiday commemorating the life and contributions of Dr BR Ambedkar

G20 can borrow a leaf from RBI's book

India must use its presidency of the G20 to showcase RBI's banking practices as these are more rigorous than those of many of its counterparts elsewhere