Centre may sell stakes in five PSBs with low public float
The Centre may disinvest minority stakes in five public sector banks (PSBs) if they fail to comply with the minimum public shareholding (MPS) norm by raising fresh capital from the market in a year, official sources told FE.

When the RBI listens and communicates to bring change in the system
Something unusual happened during the post-policy press conference of the Reserve Bank of India (RBI) on April 5. Just before the close of the conference, Governor Shaktikanta Das extended new financial year wishes to everyone. In my experience – and I may be corrected by more prolific followers of the RBI – this was the first time an RBI governor had done so. While this went largely unnoticed and the policy per se was non-event as expected, the significance of Das’s wishes should not be lost. In my view this shows a paradigm shift in the RBI’s approach towards economic management. Maybe it was the governor's way of conveying that today RBI recognises the importance of the financial year in the life cycle of banks and real-sector companies. We may never know for sure, but given the deft communicator Das is, one would like to believe that not a single word in the policy statement is included without thought.

Payments banks bat for new model, pin hopes on lending licence amid stress
Payments banks are expecting to get the rights to offer small-ticket loans sometime soon, according to an industry source familiar with the matter. The industry has been in talks with the Reserve Bank of India (RBI) for some time in seeking lending rights.

MPC member Ashima Goyal: Full transmission of policy repo to loan rates not happening
Mumbai: Full transmission of the change in policy repo to loan rates may not be happening as non-food credit of banks account for less than 50 per cent of the annual flow of resources available to the commercial sector, according to monetary policy committee member Ashima Goyal.

Delink bank loans from on-lending to group cos: RBI tells Tata Sons
Mumbai: After months of negotiations with the Reserve Bank of India, Tata Sons is said to have worked out a solution which may not only help the tech to FMCG behemoth avoid the requirement for mandatory listing but also shun the non-banking finance company – upper layer (NBFC–UL) classification. According to sources, RBI has asked Tata Sons to delink the ‘on-lending’ tag on its bank borrowings.

Fixed Deposits: 24 banks offering highest interest rates on 6 month-1 year FDs
Short-term fixed deposits (FDs) offer a range of benefits. These FDs, typically with a maturity period of less than a year, provide a unique avenue for investors to park their funds and earn returns while retaining liquidity.

After stake sale reports, HDFC Bank says exploring all options for HDB Financial listing
Mumbai: Following reports of Japan-based MUFG picking up 20 per cent stake in HDB Financial Services, HDFC Bank without confirming plans to sell its stake, hinted that the proposal is being considered to meet listing requirements and the bank is exploring all options including the stake sale.

HDFC Bank’s Health Cover Fixed Deposit: Many benefits! FD rates up to 7.75%, Rs 1000 per day hospital cash cover – Details here
Leading private sector lender HDFC Bank offers a unique investment product with a dual benefit of a fixed deposit and the safety of hospital cash cover.

ICICI Bank accountholders alert! These 10 service charges to change from next month. Details here
ICICI Bank has updated its savings account service charges, effective from next month. Notable changes include revised fees for chequebook issuance, IMPS transactions, and more. Highlights of the new fee schedule include an annual charge of ₹200 for debit cards at regular locations and ₹99 for Gramin locations. As per the ICICI Bank's website, these changes will come into effect from May 1, 2024

HDFC Bank net profit up 37% at Rs 16,512 crore
HDFC Bank posted lower-than-expected growth in its net profit impacted by higher provisions. The net profit grew by 37% year-on-year and 0.84% quarter-on-quarter to Rs 16,512 crore in the fourth quarter of 2023-24, dented by floating provisions worth Rs 10,900 crore made in January-March period. Bloomberg analysts expected the bank to post Rs 17,593 crore net profit in the fourth quarter.

HDFC Senior Citizen Care FD: Last chance! Bank extends deadline to invest in special fixed deposit with higher interest rate
Good news for senior citizens looking to invest in fixed deposits! HDFC Bank has yet again extended the deadline to invest in its special senior citizen FD plan – HDFC Senior Citizen Care FD. The special fixed deposit scheme for seniors offers an interest rate of 7.75%.

HDFC Bank to keep margins at current levels
HDFC Bank will be happy to grow slow amid irrational competition, says CEO  
The Financial Express

Too much Bandhan with MFI

Bringing Bandhan Bank back on track is not going to be easy. But finding the right man for the job could be even more difficult. Founder and CEO Chandra Shekhar Ghosh's sudden exit—he will step down in early July—has paved the way for a new CEO. While, there are those who believe Ghosh should have stayed on to clean up the estimated stress pool of dose to Rs.7,000 crore, that is not the only problem that the lender has. The bigger challenge is to re-orient the business model. Although the regulator had wanted Bandhan to become a universal bank, that has not happened; the MFI mindset remains.

More than 7 years after demonetisation, ATMs are back in spotlight
State Bank of India (SBI) has floated a request for proposal for 16,000 automated teller machines (ATMs), the largest such by a bank in the country. Plus, another 17,500 for outsourcing. Keeping SBI company on this front are Bank of Baroda (7,400) and Punjab National Bank (3,500). Taken together, fresh orders for ATMs over the last six months total 44,500, or nearly six-fold of what was placed in the preceding period. “While about 20,000 are replacements for ageing ATMs, it’s still a bonanza,” says Stanley Johnson, executive director, AGS Transact Technologies, which manufactures ATMs. Why so? "Because the installed ATM base in November 2016 was around 225,000; it's now at 260,000." The numbers dialled for are more than what has been set up since.

Industry keenly awaiting implementation of 30% UPI market share cap by NPCI
New Delhi: With extended deadline for 30 per cent UPI market ceiling by NPCI approaching, industry players are keenly awaiting the implementation and measures to achieve the cap from January 1. The National Payments Corporation of India (NPCI) in December 2022 extended the deadline for third-party UPI players to meet its 30 per cent volume cap in digital payment transactions by two years to end December 2024.

Bitcoin network completes fourth ‘halving’: Know what it means for miners
The Bitcoin network on April 19 completed its fourth “halving”. The halving is expected to reduce the rewards earned by miners from 6.25 to 3.125. With insights from Coin Metrics the price of bitcoin has been volatile ahead of the event, and fell about 4 percent this week to trade around $64,100.

Equity MF inflows slow down despite bulls ruling the roost
Mumbai: Notwithstanding the heady inflows into equity mutual fund schemes, five of the 11 equity categories have registered a net outflow or lower inflow compared to last fiscal.

HDFC AMC posts Q4 profit jumps 43.8% YoY to Rs 540.84 crore, dividend declared
HDFC Asset Management Company released its fiscal fourth quarter earnings for the financial year 2023-24 with profit at Rs 540.84 crore, up 43.8 per cent in comparison to Rs 376.17 crore during the same period last year. It posted revenue from operations at Rs 695.43 crore, up 28.6 per cent on-year as against Rs 540.95 crore during the fourth quarter of FY23. The operating profit for the quarter ended March 31, 2024 was Rs 523.60 crore as compared to Rs 394.80 crore during the year ago period. 

Gold ETF assets surge 37% in India
Chennai: The net asset under management of Gold Exchange Traded Funds in India grew 37 per cent in FY24, which saw net inflows every month of the fiscal. Five new ETFs were added in the year.

Hybrid fund get attention
Source Credit: PTI, Deccan Chronicle
 

FPIs withdraw over Rs 5,200 crore in April so far from domestic equities
Foreign investors dumped domestic equities worth over Rs 5,200 crore in April so far on concerns over tweaks in India's tax treaty with Mauritius, which would now impose higher scrutiny on investments made here via the island nation. This came following a staggering net investment of Rs 35,098 crore in March and Rs 1,539 crore in February, data with the depositories showed.

Mid-sized PE, VC deals fuel funding activity, values soar
 

India's deal-making activity unfazed by elections: BNP Paribas' Murugaiyan
Underpinned by the country’s favourable macro, the outlook for India’s equity capital market (ECM), debt capital market (DCM) and mergers and acquisitions (M&A) remains positive, says GANESHAN MURUGAIYAN, head of corporate coverage and advisory, BNP Paribas India. In an email interview with Samie Modak, Murugaiyan, who oversaw close to a dozen ECM deals in 2023, says large sell-downs by private equity (PE) firms show the depth of the domestic market.

Edited excerpts:

Geopolitical jitters pause FPIs’ Indian debt investments, net outflows reach ₹6,124 crore in April
After six months of strong buying and consistent monthly inflows, Foreign Portfolio Investors (FPIs) shifted their strategy in April, becoming net sellers in the debt market. to the tune of ₹6,124 crore as of April 19.

HDFC Bank board approves ₹60,000 crore bond issuance for FY25
Mumbai: The Board of Directors of HDFC Bank on Saturday approved the annual renewal of issuance of bonds aggregating up to ₹60,000 crore over the next twelve months through private placement mode.