Page 18 - Indian Banks

Indian banks unprepared for RBI's ESG push, survey shows: Report

A majority of domestic banks, particularly mid-sized and small ones, are grappling with issues on the ESG definitions applicable to lenders, how the norms will be built into ending decisions

Indian banks well placed to transit to Expected Credit Loss regime: S&P

This transition is not expected to change ratings on these banks

Indian banks to issue bonds to maintain capital levels: CARE Ratings

"To support credit-off take, banks are expected to shore up their liability franchise by raising capital (AT1 bonds, other debt instruments such as infrastructure bonds) and deposits," it said

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' improving performance supports intrinsic creditworthiness: Fitch

A sustained improvement in the financial performance of Indian banks bodes well for the sector's intrinsic risk profiles, according to global rating agency Fitch. The pace of asset quality and profitability improvement has exceeded expectations, while capital buffers are broadly in line with the projections, it said in a statement. The sector's impaired-loan ratio declined to 4.5 per cent in the first nine months of financial year ended March 2023 (9MFY23), from 6 per cent at FY'22, it said, adding, this was nearly 60 basis points below Fitch's FY23 estimate. Increased write-offs have been a key factor, but higher loan growth, supported by lower slippages and improved recoveries, have also played a role, it said. Fitch expects a further improvement by FY23, although banks still face the risk of asset-quality pressure associated with the unwinding of loan forbearance in FY24. "The sector's improving provision cover (9MFY23: 75 per cent, FY22: 71 per cent) also supports banks' abili

Indian banks' performance till Dec 22 exceeds expectations: Fitch Ratings

The sector's impaired-loan ratio declined to 4.5 per cent in the first 9 months of FY23 (9MFY23), from 6.0 per cent at FY22

Banks' net interest income soars by a record 25.5 pc in Q3: Analysis

Net interest income of banks grew by a record 25.5 per cent to Rs 1.78 lakh crore in the December 2022 quarter on-year, driven by a healthy credit off-take and higher yield on advances, according to an analysis. The quarter saw banks booking higher yields on advances as the system-wide core profitability metric net interest margin (NIM) rose by 17 basis points (bps) to 3.28 per cent. This was possible as banks repriced existing loans higher at a faster rate and also increased the new loan pricing, but kept deposit rates almost unchanged, according to an analysis by Care Ratings' senior director Sanjay Agarwal. But the rise in NIM was led by private sector banks, thanks to their operational efficiencies, at 4.03 per cent, up 15 bps on-year. State-owned banks registered NIM at 2.85 per cent, up 17 bps on-year. Net interest income or NII is the main revenue head for banks and is the difference between interest earned on advances and the interest paid to depositors/funds raised from ...

Indian banks' NIM to contract in FY24 as deposit costs rises: Fitch

Lenders should be able to offset impact by gradually passing on policy rate hikes to corporate loans: Agency

RBI asks banks to share information on exposure to Adani Group companies

Indian lenders have around Rs 80,000 cr exposure in conglomerate, marking 38% of the conglomerate's total debt

Gautam Adani in crisis as bonds hits distressed levels, stock sale axed

Banks either want more collateral for loans, or are scrutinizing the value of the company's debt to lend against

Markets 'overpricing' banks' risk from Adani exposure: Societe Generale

India's banking sector has been one of the hardest hit by the collateral damage from the sharp correction in the Adani group stocks over the past week post the Hindenburg report: SocGen

Bank credit growth rises to 16.5% to Rs 132.81 trillion in Jan 13 fortnight

Deposit growth has gathered pace to 10.6%

Indian banks' switch to IFRS norms unlikely to drive rating changes: Fitch

The RBI introduced a discussion paper last week that suggested banks make provisions for bad loans using the expected credit loss (ECL) method

AU Small Finance Bank net jumps 30% to Rs 393 cr on healthy core income

Of the total provision, Rs 127 crore are for the restructured book and Rs 98 crore are for contingency provisions and Rs 41 crore are floating provision

Asset quality of Indian banks will be stable in 2023, says Moody's

The asset quality of Indian banks and those in Southeast Asian countries will be stable in 2023, said Moody's Investors Service in its latest report on the banking sector in emerging markets

RBI prior approval now a must for picking up over 5% stake in banks

RBI has defined "major shareholding" as "aggregate holding" of five per cent or more of the paid-up share capital or voting rights in a banking company by a person

Bank of Maharashtra to raise up to Rs 1,000 crore from share sale in Q4: MD

As per the Sebi norms, listed entities are required to have at least 25 per cent public shareholding

Govt extends tenure of Bank of Baroda MD Sanjiv Chadha by 5 months

The government has extended the tenure of managing director (MD) and CEO of Bank of Baroda (BoB) Sanjiv Chadha for about five months till June 30. The order dated January 14, 2023 comes ahead of his three-year tenure that ends on January 19. The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Financial Services for extending the term of Chadha till June 30, 2023, when he attains 60 years, the retirement age, sources said. Meanwhile, the Financial Services Institutions Bureau (FSIB), the headhunter for directors of state-owned banks and financial institutions, on Saturday recommended elevation of Executive Director (ED) Debadatta Chand as managing director of Bank of Baroda. Besides, the Bureau recommended Union Bank of India ED Rajneesh Karnatak for the position of MD & CEO in Bank of India. The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi. Th

Indian banks gave highest returns in Asia Pacific region: S&P Global report

According to the report, the Punjab & Sind Bank had posted a returns of 118 per cent while the Jammu and Kashmir Bank gave 104.69 per cent

Is it time for state-run banks to end industry-wide wage pacts?

While there is still a large talent pool in state-run banks, the reality is that it may not walk in as in the past