Despite UPI’s success…Cash continues to be king
At a time, when transactions through Unified Payment Interface or UPI are growing at a tremendous clip of 40%, the demand for cash hasn’t gone down at all. In fact, the value of transactions is on the rise.

Sale of housing finance unit to help Shriram Finance augment growth capital: S&P Global
Mumbai: Divestment of Shriram Finance’s entire stake in its housing finance subsidiary is capital accretive for the NBFC and will increase capital available for faster growth, according to S&P Global. Shriram Finance, on May 13, approved the sale of an 84.8 per cent stake in Shriram Housing Finance to an affiliate of PE firm Warburg Pincus, company Mango Crest Investment for ₹4,630 crore.

Banks' underwriting standards at risk amid rapid consumer loan growth, Fitch says

Banking Sector: Valuations attractive; awaiting triggers
Private banks have relatively underperformed the public sector banks (PSBs) over the last couple of years, with the Nifty Private Bank index underperforming the Nifty PSU Bank index by 141.8%/70.4% over two-/one-year periods, respectively. Private sector names have registered even dismal performance considering the fact that PSBs delivered a staggering 175.7% over the last couple of years. The race for deposit mobilisation given stretched LDRs, some signs of weakening in retail asset quality and the RBI’s stern actions on some lenders on account of regulatory glitches have had a bearing on the performance of banks over the last one year.

Growth in profits, sales moderates for India Inc in January-March quarter
The performance of the corporate sector, which is the key driver of the economy, has remained muted, with profits and sales numbers showing a slowdown in growth in the quarter ended March 2024.

Fitch Ratings affirms EXIM Bank's rating; outlook stable

Household savings decline due to rising home, auto and personal loans
New Delhi: Household savings are estimated to have declined for the third year in a row in FY24 as liabilities on account of interest towards housing and vehicle loans have continued to rise, but the trend could reverse in 2024-25 on account of the impact of RBI’s curbs on personal loan. The net household savings declined sharply by Rs 9 lakh crore to Rs 14.16 lakh crore in three years to 2022-23, as per the National Account Statistics 2024 data released by the Ministry of Statistics and Programme Implementation (MoSPI). Explaining the data, ICRA Chief Economist Aditi Nayar attributed the declining trend in household savings to a sharp 73 per cent year-on-year increase in liabilities during 2022-23. She further said that as per the indication the trend of decrease in household savings has continued in 2023-24, the data for which is likely to be released later.

Bank CD ratio to remain at over 81% in FY25: CareEdge
The credit-to-deposit (CD) ratio of banks is expected remain at over 81% in FY25 as credit growth continues to remain above the growth in deposits.

E-rupee: Maximize its appeal
India’s central bank digital currency (CBDC) has had a test run since 2022 and it’s heartening to see it evolve. The e-rupee may soon be made accessible even offline, which will enhance its ease of use. For an edge over UPI bank-to-bank transfers, the e-rupee could also be made programmable, so that a user can set instructions for it to move as desired. For this digital money to replace cash, however, it would need anonymity of use. 

Incremental credit flow in the Indian economy from domestic sources to moderate in FY25 to ₹24.5 lakh crore: ICRA
The rating agency estimated the incremental credit flow from domestic sources (bonds, non-food bank credit/.NFBC and Commercial Papers/CPs) to moderate to ₹24.5 lakh crore in FY2025, from the all-time high of ₹25.4 lakh crore achieved in FY2024.

Infra financing guidelines: Why are banks upset?
New RBI draft guidelines on project loans are aimed at bringing credit discipline and ensuring only serious players participate. But since their release last week, shares of PSU banks and infra NBFCs have tanked. And bankers are upset. Mint explains why.

Personal loans to sustain growth in FY25: CareEdge
The personal loan segment is expected to sustain its growth momentum in FY25, CareEdge Ratings said in report.

Interest rates and prudential norms together help home loan quality: Research

Sebi gives nod to ICRA's arm to provide ESG ratings

Banks may have to slowdown loan growth in FY25: S&P

RBI action on Kotak Mahindra Bank may restrain credit growth, profitability: S&P

Sebi gives approval to CRISIL subsidiary to provide ESG ratings

Larger banks may look at securitisation route to unlock liquidity
Larger banks may explore securitisation in the current financial year to unlock liquidity and support loan growth in the backdrop of deposit growth continuing to lag credit growth. So far, non-banking finance companies, including housing finance companies, small finance banks and some small banks have tapped the securitisation route whenever they faced a situation where resource mobilisation has not kept pace with asset creation.

India’s growth aids SBI’s loan growth, asset quality, profitability: S&P Global Ratings
Mumbai: S&P Global Ratings has forecast that State Bank of India’s weak loans (non-performing loans or NPLs, and restructured loans) will remain 2.5-3 per cent of total loans over the next 12-18 months, versus 2.3 per cent as of December-end 2023.

Fitch affirms ratings of public sector banks

CRISIL Q1 Results: Profit declines 5.5% YoY to Rs 138 crore; Rs 7 dividend declared

Crisil expects RBI to initiate repo rate cuts from mid-2024

PSBs’ fresh slippages to be lower than private banks: Analysts
Public sector banks (PSBs) are likely to post lower fresh slippage ratio than private banks in FY25, experts say. Slippages essentially denote the fresh  bad loans in a year.

IIFL’s gold book could run down in next 2-3 quarters if RBI’s restrictions prolong: CARE Ratings

“The continuation of the restriction on gold loan segment is expected to have negative impact on the overall liability franchise across segments with moderation in its financial flexibility,” the agency said.

Retail asset securitisation volume for FY24 touches all-time high of ₹2,05,000 cr: CareEdge Ratings
Mumbai: The volume of securitisation of retail asset in the secondary market (including pass-through certificate [PTC] issuance and direct assignment [DA] transactions) for FY24 touched an all-time high of ₹2,05,000 crore, registering a growth of around 17 per cent compared to FY23, according to CareEdge Ratings’ estimate.

68% CX leaders say customer service interactions top grievance in BFSI sector, reveals KaptureCX survey
India’s Banking, Financial Services and Insurance (BFSI) industry has been able to maintain an upward trajectory driven by robust strategies and commitment to inclusion. Having said that, the sector’s increased focus on investing in customer acquisition has led to a steady increase in customer grievances, with little or no attention being paid towards its redressal. While the sector prides itself upon being a service vertical, the lack of efforts in effectively addressing customer grievances appears to be counterintuitive to its very essence, stated a survey report released by KaptureCX, while identifying primary causes of customer grievances in the industry.

Icra revises banking sector outlook from positive to stable

Icra revises downwards banking sector outlook to stable on credit growth moderation in FY25

BofA resumes coverage on Paytm with 'underperform' rating

PSU banks outdo private peers due to govt business: S&P