Page 12 - Indian Banking Sector

Banks raise over Rs 1 trn through CDs in Dec amid liquidity crunch

CDs, which are short-term debt instruments, are utilised by banks to raise funds

Banks bid Rs 3 trn against notified amount of Rs 1.25 trn in VRR auction

The deficit liquidity in the banking system widened to Rs 2.7 trillion on Thursday, according to data by the central bank

PNB board clears equity raise upto Rs 7,500 cr in FY25 to aid biz growth

Options open for institutional placement, follow-on issue

RBI defers implementation of norms on penal charges levied by banks

Initially issued in August, these norms were set to be implemented from January 1, 2024

Credit growth to dip to 12-13% in FY25 from 16.5% in early Dec 2023: ICRA

Tight liquidity, hike in risk weights to impact bank loan growth

Bad assets of banks decline multi-year low to 0.8% in Sept: RBI report

The Reserve Bank on Thursday said net non-performing assets ratio of banks declined to a multi-year low of 0.8 per cent at the end of September 2023 and the country's domestic financial system remains resilient. "The resilience of the non-banking financial companies (NBFCs) sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return on assets (RoA) at 2.9 per cent, respectively, in September 2023," said the RBI's Financial Stability Report (FSR). The gross non-performing assets (GNPA) ratio of banks also declined to a multi-year low of 3.2 per cent, it said. The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system. It further said that the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBS) stood at 16.8 per cent and 13.7 per cent, respective

RBI approves CS Rajan's appointment as Kotak Mahindra Bank chairman

Rajan, an IAS officer of the 1978 batch, was appointed as an Independent Director on the Board of Kotak Mahindra Bank, with effect from October 22, 2022

Further strengthen balance sheets even if financials remain strong: RBI

Gross NPAs lowest in a decade; tighter norms on unsecured loans for stability

Banks bid 3.2 times against notified amount of Rs 50,000 cr at VRR auction

Market participants speculate that this might be the last VRR auction conducted by the central bank as the liquidity condition is expected to improve in a few days due to government spending

State Bank of India hikes retail, bulk deposit rates up to 50 bps

The term deposits upto Rs two crore are categorised as retail deposits and those above it are considered as bulk deposits

Banks' asset quality improves to decadal high at end-Sept: RBI report

The central bank said the banking system and the non-banking financial companies (NBFCs) remain resilient, backed by high capital ratios, improved asset quality and robust earnings growth

S K Kalra appointed interim MD & CEO of North East Small Finance Bank

The Reserve Bank of India and the board of NESFB have approved the appointment of Kalra, a former managing director of Andhra Bank

The future of finance

Strategic sense about the forces reshaping banking

SBI slows down unsecured retail loans, to focus on healthy growth

Chairman Khara says corporate loan sanction pipeline is at Rs 4.7 trn

The good and not so good of Indian banking story

The drop in provisions is a healthy sign - 21 of 32 listed banks have less than 1% net NPAs. But their CASA and NIM are under pressure

Total income of Indian banks' overseas branches more than doubles in FY23

The total income of branches more than doubled to Rs 60,596 crore in FY23 from Rs 22,947 crore in FY22. The expenses grew to Rs 51,479 crore in FY23 from Rs 19,709 crore

RBI to establish cloud facility for financial sector to secure data privacy

Focusing on digital banking, the RBI announced a regulatory framework for web-aggregation of loan products and proposed the establishment of a fintech repository by April 2024

Private sector banks increase fixed deposit market share: RBI data

The market share in the first quarter of FY24 stood at 33 per cent for private banks and 61 per cent for PSBs

Bank credit to NBFCs grows 22% in Oct, exposure to sector at Rs 14.8 trn

The RBI norms on an increase in risk weights exclude bank loans to housing finance companies or bank loans backed by priority sector loans (PSL)

November sees highest issuances of certificates of deposit in FY24

In November, banks issued CDs worth Rs 75,884 crore