Page 53 - Banks

SVB rival banks benefit as startups withdraw funds to seek new home

A few banks benefited from some startups that withdrew funds from the now-failed Silicon Valley Bank

Indian shares slide as IT firms fear high interest ahead of US jobs data

IT stocks lost 0.66%, falling for the third session in a row due to worries about rate hikes in the United States and Europe, where a majority of their clients are based

State Bank of India raises Rs 3,717 cr from its third AT1 bond sale

The nation's largest lender State Bank of India on Wednesday raised Rs 3,717 crore through additional tier 1 bond sale. The bank said this is the third Basel III compliant additional tier 1 (AT1) bond sale and the latest issue was closed at a coupon rate of 8.25 per cent. The proceeds will be used to augment its additional tier 1 capital and overall capital base of the bank and also for strengthening capital adequacy in accordance with RBI guidelines. These perpetual bonds have a call option after 10 years and every anniversary thereafter. On the investor interest, the bank said the issue attracted an overwhelming response from investors with bids of Rs 4,537 crore from 53 bids from provident and pension funds and insurance companies and was oversubscribed by about 2.27 times against the base issue of Rs 2,000 crore. Given the high response, the bank has decided to accept Rs 3,717 crore at a coupon rate of 8.25 per cent payable annually. This represents spread of 66 bps over the

Moody's downgrades long-deposit ratings of five Pakistani banks amid crisis

Moody's Investors Service has downgraded the long-term deposit ratings of five Pakistani banks to Caa3 from Caa1, The Express Tribune reported

Valuation comfort remains with PSU banks despite sharp gains

The entire sector has beaten the Nifty (up 6 per cent in the same period) comfortably - the Bank Nifty, which includes both private and PSU banks, is up 16.6 per cent

What Axis Bank's acquisition of its consumer biz means for Citi's customers

Product such as home loans and credot/debit will undergo no change; but in case there are changes, the customer will be duly informed

Banks request RBI to include more long-term bonds in H1 FY24 borrowing

Banks expressed reservations about floating rate bonds in next year's borrowing

Indian Banks Association considers 5-day work week for bank employees

If the proposal gets IBA's nod, it will be sent to the finance ministry and subsequently to the Reserve Bank of India's (RBI) for approval

Green finance: Taxonomy, a clear legal definition keenly awaited

Even as the central bank is drawing up taxonomy for this emerging business, the degree of awareness at bank board level could be the weakest link yet

Indian Bank ties up with Toyota Kirloskar Motor to offer vehicle financing

Public sector Indian Bank has inked a pact with automaker Toyota Kirloskar Motor to offer vehicle financial options to its customers, the bank said on Tuesday. The tie-up would offer various initiatives including 90 per cent on-road funding with no processing fee, foreclosure and party payment charges to prospective customers. The development will now enable bank's customers, especially in the rural and semi-urban markets to buy their vehicles from Toyota Kirloskar Motor, the city-headquartered Indian Bank said in a statement here. "This is yet another step by Indian Bank to enhance banking experience of our customers. As a bank, with pan-India presence, especially in rural and semi-urban areas. This association will further boost our auto-financing segment," Indian Bank executive director Imran Amin Siddiqui said. "Digitization of loan procedures has significantly reduced the turn around time for retail loan. We are keen to provide our customers comfort and convenience, by alignin

Bank credit grows at 16.1% to Rs 134.17 trillion in Feb 10 fortnight

About a month ago (January 13 fortnight), credit growth stood at 16.5 per cent YoY

RBI imposes Rs 5k withdrawal cap on Shankarrao Mohite Patil Sahakari Bank

The Reserve Bank of India on Friday put several restrictions on Shankarrao Mohite Patil Sahakari Bank, Akluj in Maharashtra, including a Rs 5,000 cap on withdrawal per customer, in wake of its deteriorating financial position. The restrictions or Direction under Section 35 A of the Banking Regulation Act, 1949 effective close of the banking business hour on Friday. With restrictions imposed, the bank, without prior approval of RBI, cannot grant loans, make any investment, incur any liability, and transfer or otherwise dispose of any of its properties. "In particular, a sum not exceeding Rs 5,000 of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn...," the Reserve Bank of India (RBI) said in a statement. The restrictions, RBI said, will remain in force for six months from the close of business on February 24, 2023 and are subject to review. The issue of the Directions should not per se be construed as

Banks can see rise in bad loans from retail, small businesses: SBI official

While loans to this segment have been growing fast, defaults have thus far been few

Banks, bondholders to recover less from insolvencies under new proposal

Secured creditors, typically banks and bondholders, would continue to have first claim on proceeds of an insolvency resolution plan, but only up to the liquidation value of the corporate debtor

Why is India concerned about lending programme of IMF, WB for poor nations?

Eleven nations have signed a note where they have argued against the Bank taking on the responsibility to lend more, thereby raising interest costs for the borrowers

Global Investors Summit done, Uttar Pradesh turns to banks for credit line

The state has exhorted banks and financial institutions to support the investment roadmap by providing loans to the GIS projects

Banks, financial institutions should safeguard banking security, says RBI

In view of the cybersecurity risk posed to the banking sector, Reserve Bank of India Executive Director Rohit Jain on Monday asked banks and financial institutions to adequately resource the banking security structure. He also underlined the need to be prepared for the potential impact of the emergence of cloud computing and Internet of Things (IoT) in banking. The senior RBI official was delivering a keynote address during a panel discussion on cybersecurity in the run-up to the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting and Finance and Central Bank Deputies (FCBD) here in Bengaluru from February 22 to 25. Security by design needs to be embedded as part of banking processes, and security controls should be conceived and implemented, he said. "Keeping in view the emerging environment and the risks involved, the information security function should be adequately resourced in terms of number of staff, level of expertise, the usage of tools and techniques,

FinMin to meet heads of banks on Feb 22; to review progress ECLGS for MSMEs

Extension of ECLGS and LGSCAS beyond March 31 as well as challenges related to these would be deliberated

Liquidity likely to veer towards neutral after three years of surplus

Future scenario hinges on forex market, govt spending, credit growth

Banks may recover close to Rs 15,000 crore from Srei group resolution

Lenders may get nearly 45% of the admitted claim of Rs 32,750 crore from NARCL