Top Indian Banking Industry News & Updates - 27 July 2024,Saturday
🗎 RBI / MoF / Govt. Policies
Untied capex loans to states to be hiked to Rs 75,000 crore
The Centre will likely enhance the untied 50-year interest-free capex loans for states to Rs 75,000 crore from Rs 55,000 crore for FY25, partly heeding the plea of the states for higher unconditional transfers to expedite utilisation of funds for projects, sources said.
RBI introduces PCA framework to improve financial health of UCBs
Mumbai: The Reserve Bank of India (RBI) on Friday prescribed a Prompt Corrective Action (PCA) framework for relatively weak urban co-operative banks (UCBs), with deposits above ₹100 crore (upper tier category), to nurse them back to health. As per the framework, a financially unsound and ill-managed UCB can be brought under PCA if it breaches the risk thresholds of identified indicators pertaining to capital and profitability (net profit).
Digital payments rise 12.6% at March-end 2024: RBI data
Digital payments rise 12.6% at March-end 2024: RBI
The Indian Express
RBI draft norms on liquidity standards: Banks’ lendable resources may come down
The Reserve Bank of India may be seeking to indirectly bring down credit growth in the banking system by proposing to prescribe additional run-off factor for deposits enabled with internet and mobile banking (IMB) facility, say experts.
Banks may need to assign higher run-off rates for LCR purposes
Banks with a higher proportion of retail deposits enabled with internet and mobile banking (IMB) may have to step up investments in liquid assets such as Government Securities (G-Secs) as RBI may require them to assign an additional five per cent run-off factor on such deposits. Run-off factor means the possibility of deposits getting withdrawn/transferred, including in stressed situations.
📝 FM Sitharaman says door wide open for private players as no sector is exclusive for the government
📝 RBI imposes penalties on 3 payment system operators
📝 RBI selects 5 entities under its regulatory sandbox scheme
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🏦 PSB / Pvt Banks
Canara Bank expects ‘margins to improve in second half of FY25’: MD & CEO K Satyanarayana
Public sector lender Canara Bank, whose net interest margin (NIM) moderated to 2.90% in Q1FY25, is open to hiking the marginal cost of funds-based lending rate (MCLR) if the cost of deposits rises more. The lender is expecting its NIM to improve by 5 basis points (bps) in H2FY25, managing director and CEO K Satyanarayana Raju tells Piyush Shukla in an interaction. Excerpts:
IndusInd Bank’s vehicle, MFI loans shrink on lower disbursements, external disruptions
Mumbai: IndusInd Bank’s microfinance (MFI) and vehicle finance portfolios shrank in Q1 FY25 as incremental disbursements slowed due to seasonal factors, election-related disruptions, and heatwaves in several parts of the country. This also led to muted collections, which combined with a fall in the assets under management (AUM), led to a jump in the share of bad loans in the MFI book.
Bandhan Bank Q1 net up 47.5% at ₹1,063.46 cr
Kolkata: Bandhan Bank on Friday reported a 47.5 per cent year-on-year jump in its net profit to ₹1,063.46 crore for the first quarter this fiscal, as its operating profit witnessed over 24 per cent y-o-y rise during the period.
ESAF Small Finance Bank net up 44% at ₹63 crore in Q1FY25
Kochi: ESAF Small Finance Bank has posted a 44 per cent rise in PAT at ₹63 crore in Q1 of FY25, compared to ₹43 crore in Q4 of FY24. Net interest income was stable at ₹588 crore, compared to ₹591 crore in Q4 FY24. The net interest margin for the quarter stood at 9.4 per cent. Total business in the quarter grew 23.4 per cent YoY to ₹40,551 crore (₹32,860 crore), while gross advances surged by 30 per cent to ₹18,783 crore (₹14,444 crore).
At Rs 2,171 crore, IndusInd Bank Q1 PAT misses estimate
IndusInd Bank on Friday reported a lower-than-expected net profit of Rs 2,171 crore for the quarter ended June 2024 on account of lower margin and higher fresh slippages. The net profit was up 2% year-on-year (YoY), but was lower than the Bloomberg consensus estimate of Rs 2,332 crore .
Cyber crime alert! Fraudsters transfer Rs 40 crore from IndusInd Bank to mule accounts
In a massive cyber heist, fraudsters recently transferred Rs 40 crore from IndusInd Bank clients into several mule accounts. However, Rs 33 crore was recovered by timely action by Maharashtra Cyber Crime division, a top police official said on Friday, July 26.
City Union Bank posts 16% rise in Q1 profit, asset quality improves
Chennai: Old private sector lender City Union Bank (CUB) has reported a 16 per cent rise in its profit after tax of ₹264 crore for the first quarter ended June 30, 2024, when compared with ₹227 crore in the year-ago quarter, aided by lower provisions amid fall in operating profit. The bank reported a drop in operating profit at ₹373 crore in Q1FY25 as against ₹414 crore in the year-ago quarter.
Canara Bank plans to open 250 branches to boost Casa deposits: MD & CEO
K. Satyanarayana Raju, managing director (MD) and chief executive officer (CEO), told Business Standard that the Board has approved the plan to open 250 branches. The bank is using the latest technology artificial intelligence to analyse data.
📝 Yes Bank in stake sale talks to give exit to its lenders
📝 Election, heatwave impact bring down IndusInd Bank’s Q1 disbursements
📝 Pune-Sholapur Road restructuring gives lenders Rs 334 crore
📝 IDBI Bank privatisation picks pace, govt may allow access to private data by early August: DIPAM Secy
📝 Up to 8% FD rate: SBI Amrit Vrishti FD interest rate vs other big banks’ 400-day fixed deposits
📝 ESAF Small Finance Bank Q1 Results: PAT falls 52% to Rs 63 crore
📝 Punjab & Sind Bank Q1 Results: Net profit rises 19% to Rs 182 crore
📝 IndusInd Bank Q1 Results: Cons PAT rises 2% YoY to Rs 2,171 crore, NII jumps 11%
📝 ICICI Bank Q1 preview: Up to 13% YoY PAT growth seen, NII may rise by 5-8%
📝 Bank credit continues to outpace deposit growth
📝 Tata Power Solar partners with Bank of India for rooftop solar and EV charging loans
📝 ICICI Lombard partners Karnataka Bank for bancassurance
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🏦 Foreign Banks / FIIs / I-Banks
‘Every global company has a board-level attention on India’: Citi CEO Ashu Khullar
Even after the sale of its consumer banking business to Axis Bank, Citi is still the largest foreign bank by revenue in India. In an interview, Citi CEO Ashu Khullar tells Sachin Kumar that the bank is committed to leveraging its global presence to support India’s economic growth. With over 32,000 employees, India is its second-largest workforce after the US, and a key talent provider for Citi’s global growth strategy.
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🏠 Housing Finance
Star Housing Finance records Rs 471-cr AUM in Q1FY25
Star Housing Finance Limited, a BSE listed semi-urban and rural-focused home finance company, has maintained its growth trajectory in the retail home finance space and has resultantly reported strong business and financial performance for the quarter ending on June 30, 2024, as below:
📝 PNB Housing Finance Q1 results: Profit jumps 25% to Rs 433 crore
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💳 ATMs / Credit Cards
SBI Card Q1 Results: PAT flat YoY at Rs 594 crore, revenue jumps 11%
SBI Card Q1 net flat at ₹594 crore
The Hindu Business Line
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🗎 NBFCs / FIs / MFI
Shriram Finance Q1 net profit rises 18%
Shriram Finance has posted an 18% rise in its first-quarter net profit to ₹1,981 crore, led by a strong growth in interest income. The Shriram Group company had reported a net profit of ₹1,675 crore for the corresponding quarter of the previous fiscal.
Cholamandalam posts strong double-digit growth in PAT, net income & disbursements in Q1
Chennai: Cholamandalam Investment & Finance Company Ltd has delivered a robust performance in the first quarter of this fiscal, showcasing strong double-digit growth in profit after tax (PAT), disbursements, and net income.
Microlender Aye Finance preps for IPO, to file draft papers by end October
Bengaluru : In March 2014, microlender Aye Finance disbursed its first loan to a small business manufacturing women's footwear. Since then, it has served over 900,000 micro enterprises, disbursing a total of ₹10,000 crore in loans.
📝 Credit growth continues to lag deposit growth
📝 RBI fines Visa, Ola Financial and Manappuram for contravention of PPI, KYC rules
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UPIs / Wallet / FinTech
📝 Paytm gets government nod for investment in payments arm
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🧔 Brokers / Distributors
Retail folios in index funds grow 12-fold since March 2020: Zerodha Fund House
In a compelling revelation, a study by Zerodha Fund House highlights a remarkable surge in the adoption of index funds among retail investors over recent years. The total number of retail folios in index funds has skyrocketed nearly 12-fold, growing from 4.95 lakh in March 2020 to an impressive 59.37 lakh by December 2023, highlighted the report. This meteoric rise reflects a broader trend of increased investor preference for passive investment strategies.
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Crypto
📝 Bitcoin surges 4% to over $67,000 ahead of Trump's speech at Bitcoin Conference in Nashville
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🗠 Mutual Funds / AMCs
Mirae Asset MF lifts investment cap on large- and mid-cap fund
High returns
📝 Sebi rules order exonerating HSBC AMC "erroneous", slaps Rs 5 lakh penalty on it
📝 UTI Asset Management posts 9% profit growth
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🗎 Equities, Pvt. Equity / Hedge Funds
FIIs cash out from equities post Budget 2024 on capital gains tax tweaks
The FIIs had bought shares worth Rs 25,108.69 crore (net) until July 22, 2024. However, in the next three trading sessions, they net sold shares to the tune of Rs 10,711.70 crore, shows data, thus bringing down their net monthly purchases to Rs 14,396.99 crore thus far in July.
📝 Swedish PE firm EQT sells entire holding in RBL Bank for Rs 1,091 crore via bulk deal
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🗎 Govt. Securities / Bonds
Sael raises $305 m via green bond issue overseas
The bonds were issued at a yield of 7.8 per cent for a tenor of 7 years and are expected to be rated BB+ by Fitch. This transaction marks a major milestone in Sael’s efforts to diversify its borrowing profile.
📝 Medium-term, even if the rupee goes to 84, it won't sustain there; 10-year bond yield heading to 6.75%: Jayesh Mehta
📝 G-sec demand may rise by Rs 4-5 lakh cr as new LCR norms come into play
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