IDBI Bank PAT jumps 53% YoY on higher NII growth

IDBI Bank on Friday reported a 53% year-on-year (y-o-y) rise in its net profit to Rs 578 crore during the October-December quarter, mainly on the back of healthy net interest income (NII). On a sequential basis, the lender’s bottomline grew 2%. For the quarter ended December, IDBI Bank’s NII or the difference between interest earned and expended, grew 31% on year to Rs 2,383 crore. The lender’s net interest margin (NIM) improved by 101 basis points (bps) on a yearly basis to 3.88% during the reporting quarter. As on December-end, IDBI Bank’s gross advances stood at Rs 1.67 lakh crore, up 6.2% on quarter and 4.8% on year. Retail loans accounted for 63% of the lender’s loan portfolio while corporate...

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Bandhan Bank net rises 36% riding on growth of non-interest income

Bandhan Bank on Friday reported a 35.79% year-on-year jump in net profit to Rs 858.97 crore for the third quarter this fiscal year from Rs 632.59 crore in the same period last financial year as the lender’s non-interest income grew and provisions fell. The private sector lender had posted a whopping net loss of Rs 3008.59 crore for the second quarter in the current financial year on the back of Rs 5613.48-crore provisions as it had seen a huge surge in bad loans. Its non-performing assets (NPAs), in absolute terms, rose 7.74% quarter on quarter to `9441.57 crore in Q3FY22 as against Rs 8773.60 crore in Q2FY22. On a year-on-year basis, its NPAs soared tenfold from Rs 859.22 crore in the third...

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Interview| A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC – ‘FPIs to find India relatively more attractive versus other EMs in 2022’

Inflows by Foreign Portfolio Investors (FPIs) in India are expected to be higher amid higher visibility of economic and earnings growth that India provides, compared to other emerging markets (EMs), says A Balasubramanian, managing director and chief executive officer, Aditya Birla Sun Life AMC, in an interview with Manish M Suvarna and Ruchit Purohit. Edited excerpts: Do you see RBI increasing repo rate or reverse repo rate, or a change in stance in this calendar year after normalisation of liquidity in last two policies? What is bond market’s view on RBI’s stance? RBI has been at the forefront in policy response to pandemic and they have done a remarkable job in supporting economy through...

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Bankers await RBI nod on revised bad bank structure

Banks are waiting to hear from the Reserve Bank of India (RBI) on the revised structure for the bad bank proposed by the Indian Banks’ Association (IBA). According to three bankers in the know, the industry has offered to structure a principal-agent relationship between the National Asset Reconstruction Company (NARCL) and the India Debt Resolution Company (IDRCL) and the central bank’s nod is expected any day now. The reason for planning a new structure is the RBI’s objection to approving the dual-entity structure of the bad bank. The original plan put forward by the government involved the setting up of an ARC, which would aggregate non-performing assets (NPAs) worth Rs 500 crore or more and...

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Banks seek ECLGS extension, payments companies want zero-MDR gone

Banking industry lobby Indian Banks’ Association (IBA) has requested the government to extend the Emergency Credit Line Guarantee Scheme (ECLGS) by another year to March 31, 2023. The Covid-era credit guarantee scheme is targeted at smoothening financing for small enterprises and an extension will support micro, small and medium enterprises (MSMEs), who still need help, bankers said. According to the latest notification issued by the National Credit Guarantee Trustee Company (NCGTC) on October 4, 2021, the ECLGS will be in force till March 31, 2022, or till guarantees for loans worth Rs 4.5 lakh crore have been issued. In its first iteration, issued in May 2020, the scheme offered a 100% government...

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Interview| A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC – ‘FPIs to find India relatively more attractive versus other EMs in 2022’

Inflows by Foreign Portfolio Investors (FPIs) in India are expected to be higher amid higher visibility of economic and earnings growth that India provides, compared to other emerging markets (EMs), says A Balasubramanian, managing director and chief executive officer, Aditya Birla Sun Life AMC, in an interview with Manish M Suvarna and Ruchit Purohit. Edited excerpts: Do you see RBI increasing repo rate or reverse repo rate, or a change in stance in this calendar year after normalisation of liquidity in last two policies? What is bond market’s view on RBI’s stance? RBI has been at the forefront in policy response to pandemic and they have done a remarkable job in supporting economy through...

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Bankers await RBI nod on revised bad bank structure

Banks are waiting to hear from the Reserve Bank of India (RBI) on the revised structure for the bad bank proposed by the Indian Banks’ Association (IBA). According to three bankers in the know, the industry has offered to structure a principal-agent relationship between the National Asset Reconstruction Company (NARCL) and the India Debt Resolution Company (IDRCL) and the central bank’s nod is expected any day now. The reason for planning a new structure is the RBI’s objection to approving the dual-entity structure of the bad bank. The original plan put forward by the government involved the setting up of an ARC, which would aggregate non-performing assets (NPAs) worth Rs 500 crore or more and...

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Banks seek ECLGS extension, payments companies want zero-MDR gone

Banking industry lobby Indian Banks’ Association (IBA) has requested the government to extend the Emergency Credit Line Guarantee Scheme (ECLGS) by another year to March 31, 2023. The Covid-era credit guarantee scheme is targeted at smoothening financing for small enterprises and an extension will support micro, small and medium enterprises (MSMEs), who still need help, bankers said. According to the latest notification issued by the National Credit Guarantee Trustee Company (NCGTC) on October 4, 2021, the ECLGS will be in force till March 31, 2022, or till guarantees for loans worth Rs 4.5 lakh crore have been issued. In its first iteration, issued in May 2020, the scheme offered a 100% government...

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'Include EVs in RBI’s priority sector lending guidelines'

Including electric vehicles in the Reserve Bank of India’s (RBI) priority sector lending (PSL) guidelines can complement the $300 million facility and encourage the financial sector to mobilise necessary capital, a Niti Aayog report has recommended. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/33U3g...

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South Indian Bank registers Rs 50-crore loss in Q3

South Indian Bank on Thursday announced a net loss of Rs 50.31 crore in its third quarter results largely due to higher provisions. The Thrissur-based lender had reported a net loss of Rs 91.62 crore during the third quarter of FY21 and a net loss of Rs 187.06 crore in the preceding second quarter. Murali Ramakrishnan, MD & CEO of the bank, said that the bank could reduce the net loss due to good recovery and collections. But for the additional provision of Rs 43 crore in Q3,the net loss of the Bank would have been Rs 18.05 crore only, he added. “The bank managed to contain fresh slippages for the quarter to Rs 380 crore, much below the anticipated Rs 400-450 crore. During the nine-month...

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FACE applies to RBI to become self-regulatory organisation for digital lending

Industry body Fintech Association for Consumer Empowerment (FACE) on Thursday said that it has applied to the Reserve Bank of India (RBI) to take on the role of a self-regulatory organisation (SRO) in the digital lending industry. The report of the RBI working group on digital lending, released on November 18, recommended, among other things, the constitution of an SRO covering the participants in the digital lending ecosystem. Member companies of FACE cater to more than half of the consumer lending market volumes in India and serve a cumulative consumer base of over 90 lakh consumers across 19,000 pin codes, the association said. Another industry body, Digital Lenders’ Association of India,...

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Aditya Birla Sun Life AMC gets IFSCA nod to carry out portfolio management services in GIFT City

The company's move to set up new unit at the Gujarat International Finance Tec-City (GIFT City) is a strategic step towards growth of its international business to expand its reach and service global clients, including NRIs for investing in India, the asset management firm said in a statement. from Banking/Finance-Industry-Economic Times https://ift.tt/3KnFp...

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PNB Housing Finance’s Q3 PAT down 19% as NPAs rise

PNB Housing Finance on Thursday reported a 19% year-on-year (YoY) fall in its net profit to Rs 188 crore during the October-December quarter, mainly due to a rise in gross non-performing assets (GNPA) post Reserve Bank of India’s (RBI) November 12 circular on upgradation of bad loans. During the quarter ended December, PNB Housing’s assets under management (AUM) de-grew 5% on a sequential basis and 14% on a year-on-year basis to Rs 66,539 crore. The degrowth in AUM is primarily on account of loan sell down, accelerated payments and no new sanctions...

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Bank of Maharashtra’s net profit jumps 110.70% to Rs 325 crore

Bank of Maharashtra on Thursday reported a 110.70% y-o-y rise in its net profit at Rs 325 crore during the October-December quarter. A S Rajeev, managing director and CEO, BoM attributed this growth in profit to higher net interest income, growth in all business segments including retail, agriculture and MSME loans and an improvement in the asset quality. BoM’s net interest margin during Q3FY22 was at 3.11 per against 3.06% a year ago. Net interest income increased by 16.90% to Rs 1,527 crore. Gross NPA declined to 4.83% as on December 31, 2020, compared to 7.69% on December 31, 2020. Net NPA fell to 1.24% from 2.59% in the comparable period last year. The bank’s provision coverage ratio has...

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Overnight call rate surges to 21-month high prompting RBI to act

The shortfall prompted the Reserve Bank of India to announce an immediate borrowing window for Rs50,000 crore. The central bank’s move has underscored its commitment to ensuring liquidity needs even as it unwinds excess cash through Variable Reverse Repo Rate (VRRR) auctions amid the diminishing threat of coronavirus infections. from Banking/Finance-Industry-Economic Times https://ift.tt/3GPdl...

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ICRA revises AUM growth outlook for FY22 for retail NBFCs to 5-7 per cent

from The HinduBusinessLine - Money & Banking https://ift.tt/3GM0P...

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Y Combinator-backed Invoid joins Credenc, a Capital India company to build Neobank for students

Founded by Sarthak Goel and Kunwar Raj Sethi, Invoid simplifies customer onboarding and digital KYC through its technology product. The company has secured user onboarding journeys for over 50 financial companies so far. from Banking/Finance-Industry-Economic Times https://ift.tt/3qT0p...

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Karnataka Bank launches online KYC updation portal

from The HinduBusinessLine - Money & Banking https://ift.tt/3GLDg...

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Insurance industry seeks cut in GST, increase in 80C investment limit in Budget 2022

The surge in claims and the attendant payouts that both life and medical insurance companies faced this fiscal has led to a steep 30% rise in premiums as reinsurers look to recover their losses. Though insurance premiums in India are still lower compared to many markets, the hefty premiums could impact demand at a time when awareness for life and health insurance is high. from Banking/Finance-Industry-Economic Times https://ift.tt/3nFTp...

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Y Combinator-backed Invoid in pact with Credenc to build neobank for students

from The HinduBusinessLine - Money & Banking https://ift.tt/3rxIh...

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pi Ventures announces first close of its second fund at ₹300 cr

from The HinduBusinessLine - Money & Banking https://ift.tt/3qIHO...

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Lenders to be reimbursed ₹974 cr for Pandemic loan moratorium

On March 27, 2020, the Reserve Bank of India (RBI) had announced a loan moratorium on payment of instalments of term loans falling due between March 1 and May 31, 2020, due to the pandemic, which was extended to August 31. from Banking/Finance-Industry-Economic Times https://ift.tt/3tQfU...

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Kotak case: BharatPe’s Ashneer Grover goes on leave till March-end

BharatPe co-founder and MD Ashneer Grover, who was recently embroiled in a controversy over the use of alleged abusive language against an employee of Kotak Mahindra Bank, has taken voluntary leave till March-end, a statement from the company on Wednesday said. BharatPe will continue to be led by its existing CEO Suhail Sameer and the rest of the management team will remain intact. “Ashneer has co-built BharatPe from scratch and his decision is consistent with his passionate commitment to the future success of the company. For now, the Board has accepted Ashneer’s decision which we agree is in the best interests of the company, our employees and investors, and the millions of merchants we support...

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Credit card utilisation stays lower than pre-Covid levels

The level of utilisation of credit card limits by consumers remains below pre-Covid levels as worries around successive waves keep them on the edge. According to a report by Kotak Institutional Equities (KIE), utilisation stood at 21% in FY21, down from 24% before the outbreak of Covid. Part of the problem was the decision of banks to lower credit limits for their card customers in the immediate aftermath of the outbreak in 2020. While for some banks, lower limits were a short-lived phenomenon, lasting through the first eight-nine months of the pandemic, others were more conservative and retained lower limits in 2021. The tightening of credit limits may have made customers accustomed to spending...

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ICICI Pru Life posts improvement in PAT

from The HinduBusinessLine - Money & Banking https://ift.tt/3rvH7...

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Technology, bank stocks drag Wall Street to new low for 2022

The S&P 500 fell 1.8%, with about 90% of the stocks in the benchmark index closing in the red. The Nasdaq, which is heavily weighted with technology stocks, slid 2.6%. The Dow Jones Industrial Average fell 1.5%. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/3fA6W...

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Axis Finance sends legal notice to ZEE, seeks ₹146-crore in dues

Denying all the contentions of Axis Finance, ZEE has said in its response that neither the company nor its MD and CEO Punit Goenka are party to any of the loan documents. from Banking/Finance-Industry-Economic Times https://ift.tt/3GIV0...

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IBA seeks extension of Rs 4.5L cr loan guarantee scheme by 1 year

The Indian Banks’ Association (IBA) has suggested that the government extend the validity of its Rs 4.5-lakh-crore guaranteed loan scheme for companies and individuals preferably by one year through March 2023.It has also pitched for providing an additional dose of 10% of the eligible finance for all eligible borrowers, who continue to be affected by the Covid-induced extended disruptions, under the existing Emergency Credit Line Guarantee Scheme (ECLGS). In September 2021, the government had extended the validity of the scheme by six months through March 2022, or until the limit is used up, whichever is earlier.In a letter to the department of financial services secretary Debasish Panda on...

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SIDBI sanctions Rs 650 cr financial assistance to AU SFB and Jana SFB

Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of Micro, Small and Medium Enterprises (MSMEs), has sanctioned financial assistance of Rs 650 crore to two small finance banks (SFBs), AU Small Finance Bank and Jana Small Finance Bank.SIDBI, in a release on Tuesday, said it has sanctioned the financial assistance to the two small finance banks so as to reach out, through the SFBs, to small-sized Non-Banking Financial Companies(NBFCs)/Micro Finance Institutions (MFIs), who in turn provide financial assistance to the small businesses and micro entrepreneurs. “The role of relatively smaller NBFCs and MFIs,...

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Best Crypto Exchange 2022 - 5 Lowest Fee Bitcoin Exchanges

from Banking/Finance-Industry-Economic Times https://ift.tt/3fGrs...

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3rd Covid wave could slash 200 basis points off estimated AUM growth for HFCs: Crisil

from The HinduBusinessLine - Money & Banking https://ift.tt/3tyoq...

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5 Best Cryptocurrency Apps for Beginners 2022

from Banking/Finance-Industry-Economic Times https://ift.tt/3rrtH...

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Recovery encountering headwinds in 3rd wave: RBI article

from The HinduBusinessLine - Money & Banking https://ift.tt/3KkZF...

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Union Budget 2022: Startups pitch for further booster dose via fiscal incentives

from The HinduBusinessLine - Money & Banking https://ift.tt/3fvv5...

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As credit growth picks up, banks hike deposit rates

Some large banks have raised their retail deposit rates by 10-25 basis points (bps) over the last two weeks in an environment where the pace of credit growth has quickened. Bankers said the rate adjustments are also somewhat technical in nature, as lenders need to adjust their asset liability management (ALM) positions in keeping with regulatory norms. State Bank of India (SBI) has raised its interest rate on one-year deposits of under Rs 2 crore by 10 basis points to 5.1% per annum, effective January 15. HDFC Bank will pay 5-10 basis points more than earlier on retail deposits with maturities of over two years. Yes Bank has raised rates by up to 75 bps in some buckets. One-year deposits of...

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Banks want tax sops for 3-year FDs

Ahead of the Budget, the Indian Banks' Association (IBA) has made a fresh pitch for reducing the lock-in period for fixed deposits (FDs) to be eligible for tax breaks from the current five years to three so that they are able to compete more favourably with other products. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/3qBfG...

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Banks’ e-biz ambitions set to face talent crunch

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/3GMyB...

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UPL Corporation raises $700-m loan from global banks

The proceeds of the loans will be used to repay part of the debt it had raised to fund the $4.2-billion acquisition of Arysta Life Sciences in 2019. from Banking/Finance-Industry-Economic Times https://ift.tt/3fvMv...

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Banks want tax sops for 3-year FDs

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/328bg...

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Covid blues: Banks fear credit slowdown as cases surge

Sustaining a pick-up in credit growth is turning into a challenge for banks not merely because of the disruptions to businesses and households but also because of fears of asset quality worsening. That top corporates continue to de-leverage and that banks remain risk averse are also reasons why loan growth could slow in the coming months. The fourth quarter, which is when banks book 35-40% of their business for the full year, may be hurt in FY22 amidst dampening sentiment and fresh curbs on movement, bankers told FE. According to data released by the Reserve Bank of India (RBI), non-food credit grew 9.28% year-on-year (y-o-y) during the fortnight ended December 31, picking up sharply from the...

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PMC Bank merger with Unity Small Finance Bank awaits govt approval

The proposed merger of debt-ridden Punjab and Maharashtra Cooperative Bank with Unity Small Finance Bank (USFB) is being examined and the process of amalgamation will start after the government approval, sources said. Various aspects of the scheme of amalgamation have been examined and the government would soon send its suggestions, if any, to the RBI, sources said. The RBI in December extended the restrictions on Punjab and Maharashtra Cooperative (PMC) Bank for another three months till the end of March, 2022 as all necessary process on the draft scheme for the takeover was not complete. As per the Banking Regulation Act, the draft scheme of amalgamation is required to be placed before the...

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PMC Bank merger with Unity Small Finance Bank awaits govt approval

As per the Banking Regulation Act, the draft scheme of amalgamation is required to be placed before the government for its sanction and the Centre may sanction the scheme without any modifications or with such modifications as it may consider necessary. from Banking/Finance-Industry-Economic Times https://ift.tt/326zp...

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NARCL Chairman to be External Expert for Search panel to identify candidates for RBL Bank Chief’s position

from The HinduBusinessLine - Money & Banking https://ift.tt/33iCn...

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IPO-bound India1 Payments aims to deploy 20,000 ATMs in next 4-5 yrs

"The hike in interchange fees by RBI coupled with various structural growth drivers, including expected increase in cash withdrawal transactions, will accelerate White Label ATMs deployments in the country," he said. from Banking/Finance-Industry-Economic Times https://ift.tt/3A5jj...

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Punjab & Sind Bank cuts MCLR by 5-10 bps

from The HinduBusinessLine - Money & Banking https://ift.tt/3GAH5...

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HDFC Bank net profit rises 18% to Rs 10,342 crore in Q3

The country's largest private sector lender HDFC Bank on Saturday reported an 18.1 per cent rise in its standalone net profit at Rs 10,342.20 crore for the third quarter ended December 2021. The bank had registered a net profit of Rs 8,758.29 crore in the corresponding quarter of the previous fiscal year. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/33fWl...

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Q3 performance: HDFC Bank net jumps 18% on higher income

HDFC Bank on Saturday reported an 18% year-on-year (y-o-y) growth in net profit for the quarter ended December to Rs 10,342 crore on the back of a 13% y-o-y rise in net interest income (NII) to Rs 18,443.5 crore, with non-interest income growing 10% y-o-y.  The core net interest margin (NIM) in Q3 remained unchanged from the previous quarter at 4.1%. Total advances as on December 31, 2021, stood at Rs 12.61 lakh crore, up 16.5% over December 31, 2020. Retail loans grew by 13.3%, commercial and rural banking loans grew by 29.4% and corporate...

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