Page 3 - Retail Loan Growth

Mahindra Finance Q3 results: Net profit down 12% due to higher credit costs

The net profit of the company stood at Rs 629 crore in Q3 FY23. However, sequentially, the profit increased by 135 per cent from Rs 235 crore in Q2 FY24

Punjab National Bank raises profit guidance to Rs 7,500 crore for FY24

With a 253 per cent jump in the net profit in the third quarter, the bottom line of the bank in the three-quarters of FY24 crossed Rs 5,230 crore

RBL Bank targets 20% loan growth over next two financial years: CEO

"We are trying to get into areas which are futuristic ... and have a better management of the capital," R Subramaniakumar told Reuters in an interview

Spandana Sphoorty Financial net profit jumps 79% to Rs 127 crore

Microlender Spandana Sphoorty Financial on Monday reported a 79 per cent jump in net profit at Rs 127 crore in the October-December quarter of current fiscal on improved asset quality, loan growth and higher interest income. The Hyderabad-based lender said its income jumped to Rs 657 crore, up 75 per cent, in the quarter under review from Rs 375 crore registered during the same period of last fiscal. Its net interest income also grew by 60 per cent to Rs 407 crore in October-December period. Loan book grew 52 per cent to Rs 10,404 crore at the end of the reporting period from Rs 6,852 crore a year ago, while net disbursement went up 8 per cent to Rs 2,543 crore on addition of 3.4 lakh customers. The lender's total borrower count rose to 29.6 lakh. Asset quality improved with gross bad loan ratio declining to 1.51 from 5.31 and net bad loans ratio to 48 basis points from 2.52, Shalabh Saxena, managing director of the company said in a statement. He further said the company's provi

State-owned PNB, BoM record double-digit loan growth during Oct-Dec quarter

State-owned Punjab National Bank (PNB) on Tuesday said it has posted a 13.5 per cent growth in advances to Rs 9.72 lakh crore for the December quarter. Total advances stood at Rs 8.56 lakh crore at the end of the third quarter of the last financial year, PNB said in a regulatory filing. Another public sector lender Bank of Maharashtra (BoM) in a separate filing said it saw a 20.28 per cent increase in loan growth to Rs 1.88 lakh crore as against Rs 1.56 lakh crore in the third quarter of the previous fiscal. The Pune-based lender recorded a 17.90 per cent improvement in deposit growth at Rs 2.45 lakh crore as compared to Rs 2.08 lakh crore at the end of December 2022. At the same time PNB's deposits rose a tad lower at 9.4 per cent to Rs 13.23 lakh crore during the quarter from Rs 12.10 lakh crore in the year-ago period, it said. As a result, the total business of the bank increased 11.1 per cent to Rs 22.95 lakh crore at the end of December 31, 2023, it added.

Federal Bank's advances increase 18% to Rs 2.02 trillion in Q3 FY24

On a segmental basis, the bank said that as per its internal classification, its retail credit book grew by 20 per cent year-on-year, and its wholesale credit book grew by 17 per cent

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Unsecured loan growth to remain strong even with high risk weights: Report

The growth in the concerning unsecured loans segment will remain strong even if the Reserve Bank ups the risk weights for such lending, a domestic brokerage said on Tuesday. The RBI has asked lenders to be more diligent about such lending to ensure that no undue risk gets built up in the system because of high growth in unsecured assets such as personal loans and credit cards. According to some reports, the regulator may increase the risk weights for such loans, which moderates a lender's ability to lend to such segments as the capital charge goes up. "Growth can remain strong even with higher risk weights," the report by Axis Capital Research said. The note said the RBI had reduced risk weights on unsecured personal loans to 100 per cent from 125 per cent in September 2019, while credit cards continue to carry 125 per cent risk weight. If the RBI reverts the risk weight on personal loans back to 125 per cent, the core capital for banks will get hit under 0.40 per cent, the note .

Bank of Baroda reports 28.4% rise in Q2 profit led by robust loan growth

That was higher than analysts' forecast of Rs 4,004 crore, according to LSEG data

Unsecured retail loans burgeoned on banks' books in Covid-19's aftermath

As regulated entities expand the retail portfolio and tap the new-to-credit segment, more through unsecured loans and with less-than-ideal emphasis on credit histories, delinquencies could rise

BoB announces increased interest rates on domestic retail term deposits

/ -- Bank of Baroda (Bank), one of India's leading public sector banks, today announced increase in interest rates on Domestic Retail Term Deposits, including NRO and NRE Term Deposits, by up to 50 basis points across various tenors up to 3 years. These rates are applicable on deposits below Rs 2 crore, with effect from October 9, 2023. The Bank is offering interest rates of up to 7.40% p.a. for general citizens and up to 7.90% p.a. for senior citizens, which includes 0.50% p.a. of additional interest for senior citizens and 0.15% for non-callable deposits. The Bank has also realigned interest rates on its Tiranga Plus Deposit Scheme for 399 days. Senior Citizens will earn 7.80% p.a. on non-callable deposits under the scheme. Shri Ravindra Singh Negi, Chief General Manager - Retail Liabilities & NRI Business, Bank of Baroda said, "We are pleased to offer attractive interest rates to customers, enabling them to earn higher assured returns. In the 2 to 3 years investment tenor, ...

BoB's festival offer: Home loans at 8.4%, 80-bps discount on personal loans

Offers 80 bps discount on personal loan

HDFC Bank-HDFC's combined loan book up 13.1%; deposits up 16.2% in Q1

Sequentially, merged entity's advances rose by 0.7% to Rs 22.30 trillion as of March 31

Bank of Maharashtra clocks credit growth of 25% at Rs 1.75 trn in June

State-owned Bank of Maharashtra (BoM) on Monday said it has posted a credit growth of 24.93 per cent at Rs 1.75 lakh crore in the June quarter. The outstanding credit was Rs 1.40 lakh crore at the end of June 30, 2022, BoM said in a regulatory filing. The Pune-headquartered lender registered a 24.82 per cent growth in total business (total advances and total deposits) to Rs 4.19 lakh crore at the end of June 2023 as against Rs 3.36 lakh crore at the end of the same quarter of previous fiscal. Total deposits of the bank increased by 24.73 per cent to Rs 2.44 lakh crore as against Rs 1.95 lakh crore at the end of the first quarter of the previous financial year. During the quarter, it said, the Current Account and Savings Account (CASA) ratio stood at 50.97 per cent of the total deposits. With regard to Credit Deposit (CD) ratio, it said, the number has increased to 71.86 per cent at the end of June 30, 2023 as against 71.75 per cent in the year-ago period. Gross investment of the

Pace of retail loan growth double of total advances, says RBI report

Share of SMA loans relatively high at 7.4%: FSR

Digital lenders' disbursement grows 2.5 times to Rs 92,848 crore in FY23

Growth in disbursement value improved though the pace slowed in the second half of FY23, says industry group

Bank of Maharashtra tops PSU lenders chart in profit, loan growth in FY23

State-owned Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in terms of loan and deposit growth in percentage terms during 2022-23. The Pune-headquartered lender also recorded highest growth in profitability with bottomline growing almost 126 per cent to Rs 2,602 crore during the year. However, all the 12 public sector banks together recorded 57 per cent jump in net profit at Rs 1,04,649 crore in FY23, according to published yearly numbers of public sector banks (PSBs). In terms of percentage increase in gross advances, BoM recorded 29.4 per cent jump in loans at Rs 1,75,120 crore as of March 2023. It was followed by Indian Overseas Bank and UCO Bank with 21.2 per cent and 20.6 per cent growth, respectively. However, in absolute terms, aggregate loans of the country's biggest lender SBI were nearly 16 times higher at Rs 27,76,802 crore. With regard to deposit growth, BoM witnessed 15.7 per cent rise and mobilised Rs 2,34,083 crore at the end

Maintaining high loan growth difficult, but book will grow robustly: ABCL

Maintaining the high loan growth seen in FY23 will be difficult for Aditya Birla Finance, but the company is confident of growing the book robustly given the opportunities it sees in the market, a top official said on Wednesday. The company, a wholly-owned subsidiary of Aditya Birla Capital (ABCL), the financial services arm of the conglomerate, had posted a 46 per cent growth to Rs 80,556 crore in FY23. "46 (per cent) is a large number, it is very difficult to continue to maintain that kind of a thing. As I said that we have created scale and size in our business, and we see the opportunities in the market (are) immense. "We have put all the building blocks in place, so I don't see a reason why we shouldn't grow robustly as we go forward," Aditya Birla Capital's chief executive Vishakha Mulye told reporters. She also said the robust loan growth it is planning will also outperform the market. When asked if the Rs 3,000 crore capital infusion ABCL is planning will go to the lending

Infra lender NaBFID to sanction loan worth Rs 1 trillion this fiscal

MUMBAI (Reuters) - The Indian government-backed National Bank for Financing Infrastructure and Development (NaBFID) expects to sanction close to 1 trillion rupees ($12.23 billion) in loans this financial year, its top executive told Reuters on Tuesday.

Loan securitisation up by a healthy 41% to Rs 1.8 trn in FY23: Icra

NBFCs, HFCs drive loan sell-downs to raise funds for rising credit demand; HDFC-HDFC Bank merger may dampen volume in FY24