Page 13 - Indian Banking System

Banking system's liquidity slips into deficit for first time in FY24

Banking system liquidity stood at a deficit or 236 billion rupees ($2.84 billion) as of Aug. 21, according to RBI data

Five-day work week in banks soon as industry demand gets nod from IBA

The proposal has now been sent to the finance ministry for its final approval. If approved, all Saturdays will be declared as bank holidays

Jana Small Finance Bank refiles IPO papers, seeks to raise Rs 575 cr

The offer consists of fresh issue of shares worth up to 5.75 billion rupees ($70 million) and an offer for sale of up to 4.1 million shares, according to the draft herring prospectus

GNPAs fall to decadal best of 3.9% in March; set to improve further: RBI

The Indian banking system's asset quality strengthened to a decadal best, with the gross non-performing assets ratio falling to 3.9 per cent as of March 2023, the Reserve Bank said on Wednesday. GNPAs of the scheduled commercial banks are expected to improve further to 3.6 per cent by March 2024, as per the baseline scenario, the RBI's bi-annual Financial Stability Report said. "...the financial sector in India has been stable and resilient, as reflected in sustained growth in bank credit, low levels of non-performing assets and adequate capital and liquidity buffers," RBI Governor Shaktikanta Das said in his foreword to the report. He added that the balance sheets of corporates and banks have strengthened, which present a "twin balance sheet advantage" for growth going forward. It can be noted that the banking system NPAs peaked in the second half of the last decade after the RBI launched an asset quality review and forced banks to recognise hidden stress to ensure that books ...

Rate hikes revealed hidden stresses of banking sector: Chandrasekaran

The rise in interest rates has revealed hidden stresses in parts of the banking sector and this could impact global growth in the coming year, according to Tata Group and Tata Motors Chairman N Chandrasekaran. In his address to shareholders of Tata Motors in the annual report for 2022-23, he said, "the current year witnessed a surge in inflation requiring coordinated action by most central banks to increase interest rates to control inflationary expectations." Chandrasekaran further wrote, "While inflation is starting to moderate, the rise in interest rates has also revealed hidden stresses in parts of the banking sector that enjoyed a long run of low-interest rates and hence not prepared for the rate rise. This could impact global growth in the coming year." Recollecting his last year's message, he said, "recent history has been relentless with the global pandemic, military conflict, growing inequality, supply chain shortages and more." These challenges are resulting in structural

HDFC twins' merger may take effect July 1; boards to meet on June 30

HDFC shares will not be traded after July 13

Bank held liable for fraud by its manager

The National Commission noted that other bank officials had blamed its own manager for embezzlement, so for the bank to accuse PHFI's employees was an afterthought

FLDG guidelines: Digital lending industry seeks increase in default cover

Several players say default cover of up to 5% of loan portfolio may not be enough when compared to 100% offered by companies to banking partners earlier

India's quantitative tightening

The persistent gap between credit and deposit growth has perplexed many. Could it be due to shortfalls in money injection by the RBI?

RBI releases draft on cyber resilience, digital payment security controls

According to the RBI's release, the central bank has invited feedback from the shareholders on the same

Bank of Baroda board approves raising Rs 5,000 crore by March 2024

The capital will be raised when the market is conducive, the bank said

Liquidity surplus crosses Rs 1.75 trillion-mark on higher govt spending

The process to withdraw the Rs 2,000 note started from May 23

ICICI to move ahead with its plan to increase 4% stake in Lombard business

In a similar move, The RBI had given the HDFC Bank the permission to increase its take in HDFC Life Insurance and HDFC Ergo General Insurance beyond 50 per cent

War on inflation not over, we have to remain alert: RBI Guv Shaktikanta Das

Das said that India's GDP growth rate in FY23 may come out to be more than earlier predictions of 7%

In search of binding ties: Lack of SRO will continue to haunt shadow banks

Legacy shadow banks continue to do business without a self-regulatory body. This is far from ideal

Indian banks immune from liquidity crisis in West: Govt officials

Government monitoring developments in the West closely, says one official

IDFC First Bank expects NIM to be stable from here on

In FY23, IDFC First bucked the industry trend of a decline in CASA share in total deposits

As risks loom, RBI asks banks not to increase exposure to unsecured loans

The RBI has instructed banks to limit their unsecured loan portfolios to the levels seen in FY23, a CEO of a private bank said

LIVE: Arvind Kejriwal's fight against corruption won't stop, says AAP

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Indian financial system insulated from US, Swiss developments: RBI Guv Das

India's financial system remains "completely" insulated from the recent developments in the US and Switzerland, RBI Governor Shaktikanta Das said, asserting that the country's banking system is resilient, stable and healthy. The governor of the Reserve Bank of India (RBI) told a press conference here on Thursday that at the global level, the recent developments in the banking system in the US and in Switzerland, have once again, brought into focus the importance of financial stability and banking sector stability. He was here for the annual spring meeting of the International Monetary Find and the World Bank along with Union Finance Minister Nirmala Sitharaman. Responding to a question on the collapse of the Silicon Valley Bank, he said the developments related to failures of banks in the US and also in Switzerland have naturally renewed a lot of interest. "So far as India is concerned, the Indian banking system, the Indian financial system, remains completely insulated from the ..