Page 5 - Indian Banking Sector

MSME lending a new driver of credit growth? Asset quality a key test

Credit growth to small and medium enterprises is outpacing all other sectors, but the test of asset quality lies ahead

How digital technology platforms are lubricating the NPA disposal process

The digitalisation of the entire process, has the potential to reduce costs for banks and buyers, speed up recovery for banks, and provide fair access to buyers

Muted loan growth, margin woes may weigh on listed banks' Q1 profits

On a sequential basis, profit after tax may decline by 2.2 per cent, due to pressure on interest margins and muted credit growth

AI in currency: How it is quietly rewriting the rules of modern banking

Artificial intelligence is quietly transforming consumer-facing industries

New project finance norms: Banks seek exemption for smaller loans

On June 19, the RBI announced the final norms for project finance, prescribing a one per cent general provision for all projects, as compared to 0.4 per cent now

Karnataka Bank shares recover after CEO, ED resign; bank reassures clients

Following the surprise resignations of its MD & CEO and Executive Director, Karnataka Bank says it remains strong and well-capitalised, and begins search for replacements

Banking system may face near-term margin pressures, says RBI report

RBI's Financial Stability Report warns banks may see tighter margins and lower credit growth due to rate resets, liability shifts and weaker retail loan asset quality

SBI plans to solarise 4 million homes by FY27, marks 70 years of service

As it celebrates 70 years, SBI commits to solarising 4 million homes by FY27, scaling rooftop projects, modernising ATMs, and advancing AI-driven customer solutions

Slice SFB aiming to close FY26 in black, not looking to raise any capital

Slice Small Finance Bank has turned profitable on a monthly basis and is aiming to close FY26 in the black, a top official has said. The entity, which came out of a surprising merger between the fintech Slice and the North East SFB a few months ago, is adequately capitalised and not looking to raise any capital, its executive director Rajan Bajaj told PTI. The current focus is to build a pan-India business using the low-cost digital channels, and the entity is not interested in any more mergers, Bajaj said, adding that it may look at transitioning to a universal bank in the next five years. Before the merger, the North East SFB had reported a loss of Rs 441 crore, and Slice was also reporting losses. "We have turned profitable post-tax on a monthly basis and will close the year in profits," Bajaj said. The bank is adequately capitalised and the buffers will also be supported by the profits, he added. As per recent media reports, the bank was aiming to raise up to USD 300 million

Indian banks ready to lend, but tycoons show little appetite to borrow

Private sector expansion plans are at a three-year low, with bank exposure to key industries like roads, power and telecom down to 11% of their loan book, half the level seen a decade ago

Bank's group coverage: Affordable, easier to acquire; but check for limits

Group insurance from banks may be affordable and easy to onboard but customers must watch for coverage limits, exclusions, and renewal risks before signing up

Strong FY25 performance supports standalone credit profiles of banks: Fitch

Fitch Ratings on Monday said Indian banks' strong financial performances in the financial year ended March 2025 support the standalone credit profiles of rated banks and position the sector for future growth. The sector reported improved asset quality, stronger capital buffers and stable profitability despite the slowest sector loan growth in four years. "We expect steady performance to continue, though sustaining sound core financial metrics that strengthen loss-absorption buffers and resilience to economic shocks relative to the previous cycle would support positive momentum for rated banks' standalone credit profiles," Fitch said. The rating agency believes banks can sustain steady performance across most credit metrics in FY26, except for earnings due to cyclical pressures on margins and credit costs. "Indian banks' strong financial performances in the financial year ended March 2025 (FY25) support the standalone credit profiles of rated banks and position the sector for future

Good show by banks as most register a rise in profit, but challenges ahead

Overall, public sector banks have put up a better show than private banks on most parameters

94 candidates apply for six executive director positions in PSBs

FSIB likely to hold interviews month-end

Supervisory Data Quality Index of commercial banks improves in March: RBI

Supervisory Data Quality Index of commercial banks has improved to 89.3 in March 2025 compared to 88.6 in the year-ago period, the Reserve Bank said on Wednesday. The RBI has created a Supervisory Data Quality Index (sDQI) that measures data quality in terms of the accuracy, timeliness, completeness and consistency in various key financial parameters, including bad loans, asset-liability and capital adequacy. The index will help the regulator to assess the financial health of commercial banks, including small finance banks. "The sDQI score of Scheduled Commercial Banks (SCBs) has improved in March 2025 as compared to March 2024," it said. The sDQI for SCBs covers 87 SCBs and their key returns, including return on asset liability and off-balance sheet exposures, return on asset quality, return on operating results, risk-based supervision return (RBS), and liquidity return. The entity-level sDQI score is arrived at by aggregating the scores for Accuracy, Completeness, Timeliness and

Indian Bank launches new savings accounts for NRIs with global access

The Bank's new offerings aimed at a seamless combination of traditional trust and modern conveniences, reinforcing its position as a trusted banking partner for NRIs around the globe

Karur Vysya Bank expects 2% more credit growth than industry in FY26

Private sector Karur Vysya Bank expects its credit growth to be more than 2 per cent over the industry's overall growth during the current financial year, a top official said. The Tamil Nadu-based bank has lined up plans to open 28 new branches before the first half of the current financial year, particularly in Southern and Western parts of the country, the Bank's Managing Director and CEO, Ramesh Babu, said. The financial landscape is witnessing a dramatic transformation globally as well as in India, driven by technological innovations, changing consumer preferences and the emergence of alternative business models, he said. "The Reserve Bank of India is expected to adopt a more accommodative monetary policy stance. This could involve further rate cuts to stimulate domestic demand and support economic growth. The sudden escalation at the border has also added more uncertainties for the coming year," Babu told analysts recently, during the Q4 FY2025 Earnings Conference ...

Finance ministry pulls up public-sector banks over staff misconduct

Ministry asks lenders to strengthen handling customer grievances following several incidents

Biz correspondents' body to raise Atal Yojana renewal commission with banks

BCRC may take up the issue with the Indian Banks' Association; in January, it had raised the matter with the insurance regulator

Indian Bank Q4 profit rises 32% to ₹2,956 crore on improved core income

State-owned Indian Bank on Saturday reported a 32 per cent jump in net profit to Rs 2,956 crore for the March quarter of 2024-25, helped by a decline in bad loans and a rise in core income. The Chennai-based lender had earned a net profit of Rs 2,247 crore in the year-ago period. During the quarter, the bank's total income increased to Rs 18,599 crore from Rs 16,887 crore a year ago, Indian Bank said in a regulatory filing. Interest income grew to Rs 15,856 crore from Rs 14,624 crore in the fourth quarter of the previous financial year. Net Interest Income (NII) in the quarter also improved to Rs 6,389 crore from Rs 6,015 crore in the same period a year ago. On the asset quality front, the bank's gross Non-Performing Assets (NPAs) moderated to 3.09 per cent of gross advances as compared to 3.95 per cent by the end of March 2024. Similarly, Net NPAs came down to 0.19 per cent of the net advances over 0.43 per cent at the end of 2024. Provision Coverage Ratio of the bank rose to 98