Page 6 - Indian Bank

Poor biz models may have triggered crisis in US banks: RBI Governor Das

Governor Shaktikanta Das on Thursday said the Reserve Bank is having a closer look at domestic lenders' business models as it feels that poor strategies can trigger a crisis. The Governor of the Indian central bank also said that the recent developments in the US, which has seen the implosion of lenders like Silicon Valley Bank and a rush to limit the contagion of stress across the system, may be because of poor business models. He added that Indian banks have been able to stay resilient and have not been impacted adversely by the "recent sparks of financial instability seen in some advanced economies" courtesy the work done in this aspect by RBI and the banks themselves. "The recent developments in the US raise a question whether the business model of individual banks that have faced challenges whether the business models were right," Das said. "The RBI has started looking at the business models of banks more closely deficiencies (in it) can spark a crisis," Das said, speaking at

PSBs extend gains on hopes of firm Q4; Nifty PSB index zooms 13% in 1 month

Among the individual stocks, Indian Bank and Uco Bank were up 3 per cent, Bank of Baroda, Indian Overseas Bank, Central Bank of India, Canara Bank and State Bank of India were up 2 per cent on the NSE

Public sector Indian Bank signs MoU with Tamil Nadu e-Governance agency

Public sector Indian Bank has signed a memorandum of understanding with the Tamil Nadu e-Governance Agency, the city-headquartered bank said on Tuesday. The agreement is to integrate the Indian Bank Payment Aggregator platform with the e-Governance Applications of various departments in Tamil Nadu. "With this MoU, all government departments can avail plug and play platform for any payment related needs. The Indian Bank Payment Aggregator platform services shall offer timely and cost effective solutions to departments besides providing citizens and businesses with a seamless payment experience," Indian Bank said in a statement. Minister for Information Technology and Digital Services T Mano Thangaraj exchanged documents with the bank's executive director Mahesh Kumar Bajaj at an event here on Tuesday. "This MoU will enable easy access, transparency and quick delivery in services and cater to one of the top priorities of the TN government." Bajaj said. "Our payment aggregator servic

Russia's Gazprombank deepens ties with Indian banks for bilateral trade

Trade between India and Russia has surged since the West imposed sanctions against Russia for its invasion last year of Ukraine, which has altered flows of oil and other goods

RBI imposes penalty on Mahindra & Mahindra Financial Services, Indian Bank

The Reserve Bank has imposed a penalty of Rs 6.77 crore on Mahindra & Mahindra Financial Services Ltd, Mumbai, for non-compliance with norms related to disclosure of interest rates to borrowers at the time of sanction of loans, a release said on Thursday. In another release, the RBI said a Rs 55 lakh penalty has been imposed on Indian Bank for contravention of certain Know Your Customer (KYC)) norms. A penalty of Rs 10.50 lakh on Muthoot Money Limited, Ernakulam for non-compliance with certain provisions of the Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016', has also been imposed. The RBI said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by them with customers. The RBI said the statutory inspection of Mahindra & Mahindra Financial Services was conducted with reference to its financial position as on March 31, 2019, and March 31, 2020. RBI said it

Indian banks to gain $36 bn in deposits as mutual funds get taxed

The move comes as a respite for the financiers as the widening gap between credit off-take and deposits has sparked risks of asset-liability mismatches and pushed up funding costs

FSIB recommends Ashwani Kumar for the post of managing director of UCO Bank

FSIB, the headhunter for directors of state-owned banks and financial institutions, on Thursday recommended the name of Indian Bank executive director Ashwani Kumar for the post of managing director of UCO Bank. Prior to joining Indian Bank, Kumar was serving as chief general manager of Mumbai Zone of Punjab National Bank (PNB). The Financial Services Institutions Bureau (FSIB) interviewed 11 candidates from various public sector banks (PSBs) for the forthcoming positions of MD & CEO in PSBs, the Bureau said in a statement. "Keeping in view their performance in the interface, their overall experience and the extant parameters, the Bureau recommends Ashwani Kumar for the position of MD & CEO in UCO Bank vice Soma Sankara Prasad who is completing his tenure on May 31, 2023," it said. The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi. FSIB is headed by former secretary, Department of ...

Credit rated Indian banks can move over to IFRS 9: S&P Global Ratings

Credit rated banks in India are well placed to transition to the expected credit loss approach under the International Financial Reporting Standard 9 (IFRS 9) which is more forward looking, said S&P Global Ratings.

We continue to be selective on corporate loans: Indian Bank MD & CEO

Our margins in the first quarter was 3.1 per cent, while it was 3.2 per cent in Q2 and 3.7 per cent in Q3, says Shanti Lal Jain

Indian Bank nears 52-week high in a weak market; stock up 19% in 3 months

Indian Bank said it is in a better financial health, well capitalised and the asset quality is continuously improving.

Indian Bank Q3 net profit doubles to Rs 1,396 cr as bad loans decline

State-owned Indian Bank on Wednesday reported nearly two-fold jump in profit at Rs 1,396 crore in the quarter ended December 2022, driven by increase in interest income and decline in bad loans. The net profit of Chennai-based lender stood at Rs 690 crore in the same quarter of the preceding financial year. Total income increased to Rs 13,551 crore in the quarter from Rs 11,482 crore in the year-ago period, the bank said in a regulatory filing. At the same time, Net Interest Income increased by 25 per cent to Rs 5,499 crore as against Rs 4,395 crore in the same quarter a year ago. On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 6.53 per cent of gross advances as compared to 9.13 per cent at the end of the third quarter of 2021-22. Net NPAs too eased to 1 per cent from 2.72 per cent in the same quarter a year ago. As a result, provisions for bad loans declined significantly to Rs 1,474 crore from Rs 2 439 crore in t

State-owned Indian Bank hikes lending rates by up to 25 basis points

State-owned Indian Bank on Monday increased lending rates, including the marginal cost of funds-based lending rates (MCLR), by up to 25 basis points. The new rates are effective from January 3, Indian Bank said in a regulatory filing. The Asset Liability Management Committee (ALCO) of the bank has reviewed the Marginal Cost of funds based Lending Rate (MCLR), Treasury Bills Linked Lending Rates (TBLR), Base Rate and Benchmark Prime Lending Rate (BPLR) and decided for an upward revision in MCLR, TBLR, Base Rate and BPLR across various tenors, it noted. The one-year rate is used to fix most consumer loans, such as auto, personal and home loans. The overnight MCLR rate has been revised upward by 25 basis points to 7.75 per cent, while that of one month to six months tenure hiked by 20 basis points, the bank said. For one-year maturity, it said the new rate will be increased to 8.30 per cent against 8.20 per cent. Besides, the lender also revised the treasury bills benchmark lending

Indian Bank unveils QR bill-based payment system for CESC-Mysuru

Public sector Indian Bank on Sunday said it has unveiled QR code bill payment system for Chamundeshwari Electricity Supply Corporation Ltd (CESC) making it as the first power distribution company to offer such an initiative to customers in Mysuru. By using the dynamic QR code linked to the unified payments interface (UPI) on printed electricity bill, customers would be able to make their payments without visiting any online portal or physically going to any payment centre. Instant acknowledgement is issued and the QR code is disabled once the transaction is completed, the Chennai-headquartered bank said in a statement here. Karnataka Minister of Energy V Sunil Kumar formally unveiled the QR code solution in the presence of senior government officials including CESC managing director Jayavibhava Swamy. The CESC is in the process of introducing a new type of bill generation and payment system in coordination with Indian Bank besides a facility to make RTGS-NEFT payments for bulk ...

Nifty PSU Bank index rebounds 11% in 3 days: PSB, BoB climb up to 5%

At 11:35 am; Nifty PSU Bank index, the top gainer among sectoral indices, was up 2 per cent, as against 0.06 per cent decline in the Nifty50

Honda Cars India ties up with Indian Bank to provide vehicle loans

Honda Cars India (HCIL) on Friday said it has tied up with Indian Bank to provide vehicle finance for its customers. The partnership will offer easy loan disbursement, reasonable interest rates, special offers, flexible policies and simplified process, the company said in a statement. The customers can avail financing benefits across over 5,700 branches of Indian Bank and HCIL dealer network across the country, it added. ********* MBRDI, Mercedes-Benz India partner for electric vehicle module course at RV College of Engineering * Mercedes-Benz Research and Development India (MBRDI) on Friday said it has partnered with Mercedes-Benz India to introduce an all-new electric vehicle module in its Advanced Diploma Automotive Diploma (ADAM) course offered at RV College of Engineering in Bengaluru. MBRDI has also contributed a high-tech EV lab to upskill the talent pool in the country and support the industry as it transitions towards electric mobility, the company said in a statement.

Banks need to scale up investments in technology, says RBI's MK Jain

Financial institutions must build capacities in analytics and HR, says central bank deputy governor

Fintech lenders align business model with RBI's digital lending norms

The RBI came out with the guidelines on digital lending in September and gave time until November 30 for players to comply with the 'existing loan' category

PSBs' asset quality challenges to pull down FY23 banking outlook

State Bank of India and leading private-sector banks have largely addressed their asset quality challenges, and their profitability is improving more sharply than the system's, S&P added

Indian Bank Q2 net profit up 12% to Rs 1,225 crore in July-Sept quarter

Public sector major Indian Bank has posted a 12 per cent rise in net profit during the second quarter of the financial year to Rs 1,225 crore,

Indian Bank Q2 net up 13% to Rs 1,225 cr as provisions for bad loans fall

Indian Bank on Thursday reported 13 per cent rise in net profit at Rs 1,225 crore for September quarter 2022-23 as provisions for bad loans fell. The bank had posted a net profit of Rs 1,089 crore for the year-ago period. Total income in the quarter increased to Rs 12,538 crore from Rs 11,440.42 crore in the same period a year ago, Indian Bank said in a regulatory filing. Net interest income during the quarter was higher 15 per cent at Rs 4,684 crore. Fee income grew 18 per cent to Rs 723 crore. Asset quality of the bank improved as gross non-performing assets (NPAs) fell to 7.30 per cent of gross advances (equivalent to Rs 31,959 crore) as of September 30, 2022 from 9.56 per cent (Rs 36,886 crore) by the end of same period a year ago. Similarly, net NPAs or bad loans came down to 1.50 per cent (Rs 6,174 crore) from 3.26 per cent (Rs 11,749 crore). However, total provisions for bad loans and contingencies were kept higher at Rs 2,404 crore for the quarter, up 10 per cent from Rs