BANKING

C-Edge Technologies, a tech service provider for cooperative banks, experienced a ransomware attack that disrupted online payment services for over 100 banks. The National Payments Corporation of India (NPCI) responded by isolating C-Edge from its payment systems to prevent further issues.

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BANKING

Indian banks transferred $2.5 trillion, or 80% of GDP, through smartphones. However, the RBI is now raising liquidity requirements for mobile-linked deposits, drawing a parallel to the SVB failure. This move aims to ensure banks' stability but could affect credit growth and net interest margins.

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BANKING

The government's National Credit Guarantee Trustee Co Ltd has released ₹301 crore to Bank of Baroda (BoB) as part of its claim from loans given to the defunct Go First Airlines under the Emergency Credit Line Guarantee Scheme (ECLGS). This marks the first recovery for any lender from the bankrupt airline, with other lenders now looking to follow suit to recover their dues.

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BANKING

The government aims to receive financial bids for IDBI Bank by the end of this financial year, moving from the due diligence phase. DIPAM Secretary Tuhin Kant Pandey highlighted the complexities of strategic disinvestment, including management control shifts, regulatory approvals, and addressing employee-related issues. The disinvestment strategy aligns with broader public asset management goals.

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BANKING

Care Ratings reported that since January 2024, credit growth has been slower than deposit growth by Rs 3.5 lakh crore. Additional credit reached Rs 8.4 lakh crore, while deposits grew by Rs 11.9 lakh crore. By July 12, 2024, the credit-to-deposit ratio was 79.4%, suggesting potential difficulties for future credit expansion.

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BANKING

IDFC First Bank's CEO V Vaidyanathan mentioned that the bank reduced its need for aggressive deposit and branch expansion as it transitioned to retail deposits. Provisions were projected to remain elevated in the near term due to asset quality issues, with improvement expected from Q3 onwards. The bank adjusted its deposit and credit growth targets accordingly.

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BANKING

The RBI released new guidelines for banks and NBFCs to tackle wilful defaulters, mandating scrutiny of accounts with outstanding debts of Rs 25 lakh and above. Lenders have a six-month window to classify a borrower as a wilful defaulter. No additional credit will be given to these defaulters for a year post removal from the list.

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BANKING

Indian Bank has set a target to recover around Rs 7,000 crore during the current financial year, with approval from the Reserve Bank of India and shareholders to raise Rs 5,000 crore. The bank reported a 41% increase in net profit to Rs 2,403 crore for the April-June 2024 quarter due to a decline in bad loans. The recovery is expected to be more than the slippages during the current financial year.

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BANKING

For FY25, Ruloans aims to achieve a growth rate of 30% and reach a business volume of Rs. 50,000 crore. Ruloans have forayed into education loans as well as solar & machinery loans this financial year and will go more focussed and aggressive on the same.

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BANKING

Among lenders, Punjab National Bank charged the highest sum of Rs 633 crore followed by Bank of Baroda at ?386 crore for non-maintenance quarterly balance. Indian Bank charged Rs 369 crore as penalty for non-maintenance of average monthly balance.

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BANKING

Paying light to the banking sector, the Reserve Bank of India in its recent report has said that the adoption has improved the efficiency of banks in India, along with increasing competition. "The adoption of digital technologies has improved the efficiency of banks in India, along with increasing competition in the banking sector. Overall digitalisation in the financial sector enables banks to reduce various risks and improves integration across various financial markets, thus, boosting liquidity in these markets," said RBI in its RCF report.

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BANKING

Bain, CVC Capital also in fray; 51% stake in play in 2nd largest Housing Finance company as current promoters Kedaara & Partners Group seek to exit 8 year old investment.

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BANKING

The RBI's new norms essentially translate into a greater requirement for banks to deploy more funds in HQLA, which could be quickly liquidated in a hypothetical stress episode where lenders offering internet and mobile banking facilities are faced with quick fund withdrawals or transfers.

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BANKING

In early July, Indian banks borrowed a record Rs 1.19 lakh crore from the market due to challenges in attracting deposits, which totaled Rs 1.02 lakh crore. The Reserve Bank of India data revealed this borrowing trend as a result of the budget's lack of deposit-attracting measures. Total bank borrowings reached Rs 8.83 lakh crore, influenced by the HDFC and HDFC Bank merger. This includes short-term debt, infra bonds, and overseas loans but excludes RBI loans. The State Bank of India raised Rs 10,000 crore through infrastructure bonds. Experts cautioned that an aggressive move to increase deposits could lead to a rate war and widen the credit-deposit gap, causing liquidity and repricing risks. However, the situation has been improving with the RBI's large dividend transfer.

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BANKING

Cholamandalam MS General Insurance Company Ltd reported a Gross Written Premium of Rs 1,945 crore for Q1 2024, showing a 14.3 per cent growth compared to the industry average. The company, a joint venture of Murugappa Group and Mitsui Sumitomo Insurance Group, achieved a profit before tax of Rs 179 crore, settling 1.3 lakh claims. It invested in Data Analytics and Artificial Intelligence for motor insurance claims through the SAHAI mobile app. Managing Director V Suryanarayanan emphasised the company's commitment to growth and technology transformation.

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BANKING

"Banks led by State Bank of India had come in to support the reconstruction scheme. As per regulations, banks cannot remain invested in other banks," managing director and chief executive Prashant Kumar told ET in an exclusive interaction.

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BANKING

Private life insurers in India have strategized to adhere to new IRDAI regulations requiring surrender value from the first year on non-participating policies. Companies like HDFC Life, ICICI Prudential Life, and SBI Life are adjusting their commission structures and product mixes to protect margins and maintain growth despite the regulatory changes.

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BANKING

LCR is a liquidity requirement for banks to maintain at all times a certain proportion of high-quality liquid assets (HQLA), including cash, reserves with central banks, and federal government bonds, which can easily be converted into cash.

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BANKING

India's private banks, pressured by regulators to improve credit-deposit ratios, have started selling retail loan portfolios. HDFC Bank sold a $597 million loan portfolio in June, and IDFC First Bank sold retail loans to Citigroup. Several lenders are now exploring similar deals for better CD ratios.

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BANKING

In her budget speech on Tuesday, finance minister Nirmala Sitharaman proposed to hike the short-term capital gains tax on all listed equity instruments to 20% from 15%. Long-term capital gains on listed equity instruments and specified financial and non-financial assets have been hiked to 12.5% from 10%. Moreover, the indexation benefit has also been removed from all the assets for computing long-term capital gains which will disallow any inflation adjustment, increasing the tax outgo.

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BANKING

Axis Bank witnessed a sequential decline in asset quality metrics for the June quarter due to seasonal effects on agriculture business. Gross non-performing asset ratio rose to 1.54%. Net profit marginally increased to Rs 6,035 crore as provisions doubled compared to the previous year. Credit costs are expected to rise, especially in the unsecured portfolio.

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BANKING

A bench comprising Chief Justice D Y Chandrachud and Justices JB Pardiwala and Manoj Misra stayed the high court order and issued notices to Aum Capital, representing the investors, and others on separate appeals of the RBI and the DBS Bank against the HC judgement.

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BANKING

RBI cancelled the licence of The Mahabhairab Cooperative Urban Bank due to poor financial health, effective July 24, 2024. The bank can't continue operations and will be liquidated. Depositors will receive insurance claims up to Rs 5 lakh from the DICGC. As of June 13, 2024, DICGC has already paid Rs 20.03 crore in insured deposits.

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BANKING

The Supreme Court stayed a Madras High Court order directing the Reserve Bank of India to conduct a fresh valuation of Lakshmi Vilas Bank (LVB) and DBS Bank India (DBIL) in their 2020 merger. The High Court's order included reconsideration of tier-2 bond write-offs and addressing shareholders' and bondholders' grievances.

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BANKING

HDFC Bank raises fixed deposit rates for 35 and 55 month tenures, offering 7.35% and 7.4% interest respectively. Senior citizens will receive 7.85% and 7.9% rates. CEO expresses dissatisfaction with Q1 deposit figures, focusing on deposit growth amid faster advances. RBI flags credit-deposit gap as sector concern. CEO Jagdishan aims to address this, emphasising deposit growth in Q1FY25 earnings call.

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BANKING

Indian banks are increasingly resorting to short-term borrowing, utilizing certificates of deposit, to bridge a funding gap driven by strong loan growth and slower deposit accumulation. As a result, the outstanding amount of these certificates surged to 4.3 trillion rupees ($51.4 billion) in the fortnight through July 12. This marks the highest level since June 2012.

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BANKING

The bank stated that Krishnan Venkat Subramanian (KVS) will join the bank on September 23, 2024, a day after Shyam Srinivasan ends his term at the south-based bank. He served the bank as MD and CEO for 14 years. Manian resigned from Kotak Mahindra Bank on April 30 after serving the bank for 29 years.

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BANKING

Banks are having to respond to the changing landscape by employing various strategies to maintain and grow their deposit bases, even as customers increasingly shift their funds towards investment avenues.

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BANKING

HDFC Bank's MD, Sashidhar Jagdishan, expressed disappointment over deposit growth for the June quarter, attributing shortfalls to unexpected current account outflows. Despite deposits growing 24.4% YoY to Rs 23.79 lakh crore, gross advances surged 52.6%, causing a regulatory concern on credit-deposit imbalance. The bank aims to slow advance growth and reduce the credit-deposit ratio.

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BANKING

HDFC Bank MD expresses disappointment over deposit numbers in volatile quarter. Concerns raised over wide gap between credit and deposit growth. CASA deposits crucial for low-cost funds. Net profit up 35.3% YoY. Emphasis on day-to-day basics to avoid performance pressures.

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BANKING

“On the wholesale category, we have seen that credit demand is high but the rates are benign,” said chief financial officer Srinivasan Vaidyanathan. “The spread over government securities is thinner and competition pushes it even down. We want to be circumspect in how we price and choose (loans). In the retail segment, we are leaders on mortgages but on the unsecured side, we have seen regulators talking about being cautious of credit quality. We are cautious of the credit and calibrate accordingly.”

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BANKING

NBFCs, driven by personal loan and agriculture growth, faced RBI risk weight changes. SCBs saw 19.3% growth, with the HDFC merger aiding. Bank credit to NBFCs hit Rs 15.54 lakh crore. Capital expenditure might offset reduced bank funding, affecting corporate credit. Technological advancements hastened credit delivery. Systemic risks prompted increased RBI oversight. Non-performing assets were under 3% in March 2024.

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BANKING

HDFC Bank, India's largest private sector bank, has reported an expenditure of Rs 945.31 crore on corporate social responsibility initiatives for the past fiscal year. Under its CSR brand, Parivartan, the bank's initiatives have impacted over 10.19 crore lives, reaching thousands of villages and households across the country. With a focus on creating sustainable livelihoods for marginalized communities, the bank operates in 28 states and 8 Union Territories, addressing critical areas such as rural development, education, skill enhancement, healthcare, financial literacy, and environmental conservation.

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BANKING

L Catterton will tap investors such as banks, insurance companies, pension funds, family offices, and high net worth individuals, for deploying in India across 7-9 deals.

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BANKING

RBI Governor Shaktikanta Das noted a significant shift in household investment behavior during his speech at the FE Modern BFSI Summit 2024. Traditionally favoring banks, households are now increasingly investing in capital markets and financial intermediaries, such as mutual funds, insurance funds, and pension funds.

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BANKING

RBI has set up a review committee to revise the fee structure for white-label ATMs (WLAs) to propose a fair and sustainable model. The committee, led by Indian Banks' Association CEO Sunil Mehta, will assess current policies, ATM infrastructure, and global best practices, reporting to RBI deputy governor T Rabi Sankar. India's ATM market is forecasted to grow at a 9.2% CAGR from 2024 to 2032, with four authorized non-bank entities currently operating WLAs. The interchange fee remains at ₹17 for financial and ₹6 for non-financial transactions.

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BANKING

HDFC Bank MD Sashidhar Jagdishan stated advances will grow slower post-HDFC merger to lower the 110% credit-deposit ratio. The bank plans 900 new semi-urban branches and saw a drop in attrition despite a social media controversy. RBI’s Das cautioned against aggressive lending. Liquidity buffers and prepaying borrowings are vital steps.

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BANKING

Since its inception in 2016, India's Insolvency and Bankruptcy Code has shifted from debtor to creditor control, yielding positive outcomes. Anticipated amendments include introducing a Creditor-Led Resolution Process, mandatory admission on record of defaults, widened scope for avoidance transactions, 'group insolvency,' and nullifying key judicial precedents. These changes aim to streamline and enhance the efficiency of insolvency proceedings, crucial for economic recovery and investor confidence.

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BANKING

The Reserve Bank of India has reportedly given its 'fit and proper' approval on bidders for IDBI Bank ahead of the Union Budget 2024, except one foreign participant, putting the ball squarely in Modi government's court. The Modi government's ambitious privatization plans, including IDBI Bank, have seen limited progress due to the upcoming general elections. The upcoming budget is expected to provide key insights.

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BANKING

Favourable demographic dividend, rising income levels, acute housing shortage and the government’s push for affordable housing via several schemes suggest housing loan penetration should continue to inch up, Nomura said.

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BANKING

Kotak Mahindra Bank is shifting focus to physical branch expansion following ban on digital onboarding, unveiling new distribution structure to integrate branches, digital channels and voice services. Strategy aims to mitigate impact of RBI ban on credit card issuance and online customer onboarding. Analysts cautious on loan growth, but optimistic for future revival.

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BANKING

Indian banks are increasing deposit rates, with offerings ranging from 6.90% to 7.30% for various durations. This comes after the RBI's directive to narrow the gap between deposit and credit growth. Banks aim to attract more retail deposits by providing higher interest rates amidst expectations of a changing rate cycle.

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BANKING

The RBI has mandated banks to give borrowers three weeks to respond before labeling accounts as fraudulent, aligning with a Supreme Court ruling on natural justice. Banks must issue detailed notices and consider responses before final classification, ensuring transparency. Boards must review fraud risk policies every three years, with a committee overseeing cases chaired by an independent director. Auditors are to investigate flagged accounts promptly, aiding in fraud detection. These measures aim to strengthen banking integrity and safeguard against financial misconduct.

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BANKING

Banks plan to form a Section 8 entity under the Companies Act to secure an SRO license for the fintech sector. Talks have included the Payment Council of India. RBI's final guidelines require banks' involvement due to interconnected financial services. Neo banks and metaverse banking necessitate updates on fintech. The Indian Banks' Association (IBA) leads this initiative. Discussions with the Payment Corporation of India, covering over 90% of the industry, are ongoing. Lenders already collaborate with fintechs on online lending, AI credit assessment, and digital payment solutions.

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BANKING

Axis Bank faces technical glitches during the migration of Citibank customers to its systems, leading to login issues and incorrect details for some users. Customers express frustration on social media platforms. Citibank discontinued its app for retail banking customers and directed them to use the Axis Bank Mobile App. The acquisition of Citibank India's consumer businesses by Axis Bank in April last year included 2.4 million customers and Rs 39,900 crore deposits. Axis Bank did not respond to queries regarding the reported issues.

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BANKING

This new system aims to expedite the insurance claims process and make it more transparent, with real-time access to claims settlement status by the Insurance Regulatory Development Authority of India (IRDAI). Citizens will also be able to monitor their insurance claim status through their mobile devices.

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BANKING

Goldman Sachs has named Sudarshan Ramakrishnan and Devarajan Nambakam as co-heads of its investment banking business in India. Sunil Khaitan has also joined as managing director. Ramakrishnan and Nambakam will drive growth strategy, reporting to Sonjoy Chatterjee. The firm aims to leverage global expertise to deepen client relationships amidst India's economic growth.

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BANKING

SBI, India's largest lender, has raised the MCLR by 5-10 basis points for tenures from one month to three years, effective July 15. Updated rates on SBI's website range from 8.35% for one month to 9% for three years, including 8.40% for three months, 8.75% for six months, 8.85% for one year, and 8.95% for two years. This is the second consecutive hike after June. MCLR, the minimum lending rate since April 1, 2016, primarily affects corporate loans. Retail loans are tied to external benchmarks like the unchanged RBI repo rate since February 2023. One basis point is 0.

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BANKING

Caspian Debt reported disbursing Rs 5,019 crore to 140 enterprises in 2023-24 and partnering in Rs 4,001 crore debt funding with 8,700 entities. They fund clean technologies and financial inclusion, aligning impact reporting with PCAF and JIM. Their portfolio companies blend tech and tradition to uniquely contribute to SDGs in sectors like healthcare, water, and sanitation.

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BANKING

Kotak Mahindra Bank's new chief emphasizes tech transformation despite RBI ban. Auditors highlight IT system complexities affecting financial reporting. Industry experts link RBI actions to the bank's 811 offering success. The bank shows growth in customer base and financial metrics.

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BANKING

About a dozen such alternative investment funds (AIFs) have recently received notices, with the revenue department questioning why their schemes, housing the fund pools, are not registered under GST. These funds raise huge money every year and bankroll thousands of startups and listed companies.

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BANKING

In a rare move, the Reserve Bank of India (RBI) has raised concerns about Asheesh Pandey's conduct as an executive director at Bank of Maharashtra, influencing his candidacy for MD & CEO at Indian Bank. The RBI highlighted issues related to regulatory compliance during a 2023 exit meeting. Despite being shortlisted, Pandey's final approval hinges on the Appointments Committee of the Cabinet (ACC), which includes the Prime Minister and Home Minister. The decision awaits responses from the finance ministry and Department of Personnel and Training (DoPT) following RBI's communication.

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BANKING

The Insolvency and Bankruptcy Code (IBC) is seeing a rise in resolved cases, with a focus on innovative approaches and transparency to improve recovery rates. Efforts to save firms from liquidation and address delays in resolution processes are being emphasized by regulators and industry experts.

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BANKING

The Reserve Bank of India on Thursday evening approved Jio Financial's conversion from a Non-Banking Financial Company (NBFC) to a Core Investment Company (CIC), the company said in a filing.

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BANKING

India's insurance regulator, IRDAI, has issued a show cause notice to Care Health Insurance, a subsidiary of Religare Enterprises, regarding the grant of stock options to Rashmi Saluja, who serves as the chairperson of Religare. The notice alleges that Care Health Insurance violated IRDAI directions by issuing stock options to Saluja despite prior refusal in May 2022. Saluja, an executive chairperson at Religare, was granted these options as an employee, though she is a non-executive director at Care.

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BANKING

PNB and SAIL signed a concessional loan MoU on Thursday to improve SAIL employees' financial well-being and expand PNB's customer base. Attendees included PNB's Sudhir Dalal from Business Acquisition and Relationship Management Division, Bibhu Prasad Mahapatra, Sunil Agrawal, Mohit Dhawan, and SAIL's Lavika Jain, Bikram Uppal, Praveen Nigam, and BS Popli, according to a statement.

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BANKING

It is in talks with a group of foreign banks for a loan of 12-15 years, people familiar with the matter said, asking not to be identified as the discussions are private. The funds would be raised for Ethane Crystal LLC, a subsidiary of Reliance Ethane Holding Pte., the group’s business of buying ships to transport ethane, they said.

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BANKING

Chandra Shekhar Ghosh, founder of Bandhan Bank, transitioned from CEO to a strategic role after starting as an NGO and growing it into India's largest microfinance institution turned universal bank. Overcoming his humble beginnings, Ghosh's journey inspires entrepreneurs as he reshapes the banking landscape with his innovative vision and dedication.

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BANKING

First Abu Dhabi Bank clarified it is not considering a stake in Yes Bank, contrary to media reports. Bloomberg had reported potential suitors, including Japanese firms, evaluating a $5 billion stake. Following the news, Yes Bank shares rose 8.5%. Additionally, Moody's upgraded Yes Bank’s outlook to ‘positive,’ reflecting expected profitability improvements.

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BANKING

Retail asset securitisation market shrinks by 13% to Rs 48,000 crore in June quarter. Originators flush with liquidity cited as primary reason. Increase in investor demand for PSL assets noted. MBS transactions lead DA volumes. Prediction of strong market performance in FY25.

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BANKING

On April 29, the banking regulator directed all lenders to charge interest from the date of actual disbursement of the funds to the customer after its annual inspection revealed instances of lenders resorting to unfair practices in charging of interest. "Earlier, lenders were taking about 30-45 days to consummate a loan agreement, and they were freely charging interest rate during the period without the actual amount being disbursed to the customer," the CEO of a housing finance company said on the condition of anonymity.

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BANKING

India's general insurance sector saw strong growth with an 8.76% increase in premiums for June and a 13.33% rise for the first quarter, driven by higher demand for motor and health insurance. Companies like ICICI Lombard and Star Health Insurance reported significant gains, especially in retail health and motor segments. However, New India Assurance faced slower growth, losing market share. Overall, the industry's gross premiums reached ₹72,757 crore, reflecting steady expansion and shifting consumer preferences towards comprehensive insurance coverage.

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BANKING

The banking sector in India has reached a decadal high in terms of financial parameters and is poised to support the country's economic growth, said Reserve Bank deputy governor Swaminathan J on Tuesday. He was speaking at a conference attended by statutory auditors, chief financial officers of commercial banks, and all Indian financial institutions.

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BANKING

Bengaluru-based hospital chain Narayana Hrudayalaya (NHL) has introduced the Aditi insurance scheme, offering a Rs 1 crore cover for surgeries and Rs 5 lakh for medical treatments at NHL hospitals for an annual premium of Rs 10,000 for a family of four. The managed care model aims to provide affordable healthcare with controlled costs.

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BANKING

Yes Bank clarified that it has not received any in-principle approval from the Reserve Bank of India for a stake sale, countering a speculative media report. The bank emphasized the report's inaccuracies and confirmed no such approval from RBI. Yes Bank's shares rose 1.25% amidst this news report and the eventual clarification.

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BANKING

RBI met CFOs and auditors to enforce zero tolerance for compliance lapses. Deputy governors stressed accurate balance sheets, aggressive lending risks, and ever-greening of loans. Recent CEO talks included credit-deposit growth gaps. Governor Das emphasized risk awareness. Digital banking restrictions on Kotak Bank, IIFL Finance, and others were due to regulatory lapses.

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BANKING

Hyderabad-based Star Finserv India was offering the service under 'Progcap' (owned and operated by Desiderata Impact Ventures Private Limited). Polytex India, headquartered in Mumbai, was providing services under the 'Z2P' mobile application (owned and operated by Zaitech Technologies Private Limited).

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BANKING

EXIM Bank of India signed a $2.5 million credit line with Guyana for a solar plant at Cheddi Jagan International Airport, effective June 24, 2024. 75% Indian goods, works, and services; 25% can be external. Signed February 29, 2024. Disbursement is within 48 months of project completion, the Reserve Bank of India noted.

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BANKING

Budget 2024: The State Bank of India (SBI) has suggested that the government should proceed with disinvestment of public sector banks (PSBs) as they are in good condition. The SBI's research report, titled 'Prelude to Union Budget 2024-25', argues for the consolidation of existing government-owned banks. The report also seeks clarity on the privatisation of IDBI Bank, which is being sold by the government and Life Insurance Corporation of India.

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BANKING

Ghosh, who will retire from the bank on July 9 as managing director, will oversee Bandhan's insurance and mutual fund ventures, besides the bank's activity, two people familiar with the matter said.

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BANKING

The finance company will offer 8.40% a year from July 16 against 8.60% now for 42 months' maturity, people familiar with the matter said. Senior citizens will get 8.65% against 8.85% currently. There will be no change in other maturity slabs.

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BANKING

Incremental loans increased Rs 2.79 lakh crore or 1.7 % this fiscal year up to June 14 compared to Rs 3.48 lakh crore or 2.5 percent a year ago reflecting a slowdown in credit demand for investments as well as working capital needs- and indicator of level of economic activity.

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BANKING

The bank plans to more than double its BC network during the current fiscal, Punjab & Sind Bank Managing Director Swarup Kumar Saha said, adding, that the bank is trying to expand this network to 4,000 by the end of the current financial year against 1,700 at present.

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BANKING

The government is examining a proposal to increase the tax-deductible amount on savings account interest to Rs 25,000. Current limits are Rs 10,000 (Section 80TTA), Rs 50,000 for seniors (Section 80TTB), under the old tax regime. Banks have been advocating for incentives on deposits due to rising concerns over the increasing credit-deposit ratio.

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BANKING

The bank's CASA ratio fell to 36.7% at the end of June 2024 from 39.9% a year ago, disclosures made by the bank showed. Retail deposits and deposits from small business customers amounted to ₹1.74 lakh crore as of June 2024, up from ₹1.69 lakh crore in March 2024, the bank said.

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BANKING

State Bank of India is expected to enter the debt market next week to raise up to Rs 10,000 crore via infrastructure bonds, with Bank of India likely to follow a week later to raise Rs 5,000 crore. These bonds help reduce lenders' overall funding costs as they are exempt from CRR and SLR

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BANKING

Ujjivan Small Finance Bank expanded its secured loan portfolio to 31.5%, a 440 basis point increase over the past year, aiming for 40% in three years. The total loan portfolio grew 19% to ₹30,091 crore. Despite this growth, its gross NPA ratio slightly increased to 2.3%. Deposits rose 22% to ₹32,500 crore.

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BANKING

The OTS offer, its acceptance and the sanction letter constitute a sufficient contract, the judge said. “Thus, the Punjab and Sind Bank, which is a nationalised bank and an instrumentality of the state, cannot act arbitrarily or whimsically in matters of contract.” The Punjab and Sind Bank (PSB) withdrawing the OTS was a “cryptic order, bereft of any reasons”, Justice Pushkarna said.

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BANKING

RBI’s financial stability report warns of climate change risks despite declining loan defaults. Concerns exist over exposure to energy and construction sectors. A 2023 framework mandates climate strategies by March 2028. Regulatory delays persist, with a 2021 task force and low foreign interest in green bonds. Efforts to attract global investors continue. Public sector banks are particularly vulnerable.

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BANKING

Equitas Small Finance Bank, with a priority sector focus, achieved a 35.4% year-on-year deposit growth to Rs 37524 crore by the end of June, surpassing the sectoral average of 12%. Advances increased 17.8% to Rs 34872 crore, although the CASA ratio fell to 31% due to faster term deposits growth. Provisional figures submitted to stock exchanges confirmed these results.

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BANKING

A day after the Reserve Bank of India (RBI) urged banks to bridge the gap between deposit and credit growth, two public sector banks, Bank of Maharashtra and Uco Bank, reported subdued deposit mobilisation. Both banks reported sub-10% deposit growth, while advances grew at high teen percentages year-on-year at the end of the first quarter, June 30.

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BANKING

Bank of Maharashtra reported a 19% growth in credit to Rs 2.09 lakh crore for the April-June quarter, with outstanding credit at Rs 1.75 lakh crore. Total deposits increased by 9.44% to Rs 2.67 lakh crore, with Current Accounts and Savings Accounts declining to 49.86%. Credit Deposit ratio increased to 78.18%.

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BANKING

Banks are grappling with new regulations from the Telecom Regulatory Authority of India (Trai) requiring digital consent for commercial communication. This has prompted lenders to seek government clarity on whether consent is needed for sharing transaction details, as per Reserve Bank of India guidelines. The move aims to combat cyber fraud, with banks also requesting special prefixes for customer calls following last month's finance ministry directive.

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BANKING

Federal Bank led in gross loan expansion with a 20% year-on-year increase to Rs 2.24 lakh crore by June's end. Meanwhile, CSB Bank recorded the highest deposit growth among Kerala-based lenders, marking a 22.4% rise to Rs 29,920 crore. Other banks like South Indian Bank also saw notable loan portfolio growth, with CSB Bank reporting a 17.8% increase to Rs 25,099 crore and South Indian Bank reaching Rs 82,510 crore, up 11.4%.

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Paytm Payments Bank Ltd faces audit qualification disputes over viability, seeking RBI intervention. Compliance issues led to operational restrictions, prompting directions to transfer businesses. KYC guideline non-compliance has halted income generation and eroded net worth.

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BANKING

Wipro disputes Ivalua's insolvency plea over $100,000 unpaid dues for unfulfilled cloud services, seeking dismissal at NCLT.

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Borrowers will have attractive interest rates with affordable EMIs and the option to choose a repayment tenor of up to 20 years. With this, Bajaj Housing Finance will offer a full suit of offerings in the housing finance sector covering all customer categories.

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Hindenburg Research rebuts Sebi's allegations of collusion with Kingdon Capital Management in shorting Adani Group stocks. Sebi's 46-page notice claims Hindenburg's actions facilitated significant gains for Kingdon Capital, but Hindenburg dismisses these as baseless and accuses Sebi of neglecting investor protection. Kotak Mahindra Bank's alleged involvement adds to the controversy, with Sebi and Kotak yet to comment.

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Kotak Mahindra International Limited (KMIL) clarified on Tuesday that Hindenburg has never been a client or investor of the firm. The company made the statement to address any confusion regarding their relationship with Hindenburg.

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BANKING

Public sector banks in India are navigating the credit card market, facing challenges with high NPAs. The focus on tier-II and tier-III cities is driving credit card sales, with State Bank of India and Bank of Baroda leading in card spending through subsidiaries. Specialized skills and appealing features are crucial for success, particularly in attracting younger consumers with modern products and reward points.

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BANKING

HDFC Bank announces temporary unavailability of UPI systems on Saturday, July 13, 2024, from 3:00 am to 3:45 am and 9:30 am to 12:45 am for migrating its Core Banking System to a new platform. The move aims to enhance customer experience by improving performance, capacity, reliability, and scalability. The upgrade is scheduled on a bank holiday to reduce inconvenience, prompting customers to plan ahead for banking activities.

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