Tokenisation: Industry better prepared but some glitches remain ahead of June 30 deadline

Public sector banks are still working on it and there are some discussions on whether to seek a fresh extension from RBI from The HinduBusinessLine - Money & Banking https://ift.tt/cV9UZ...

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Absence of regulation hurts investigations of crypto use in terror funding, drug smuggling

Agencies are at a loss to control, recover and trace Cryptos which are increasingly becoming the go-to currency for terror financing, narcotic smuggling and other crimes from The HinduBusinessLine - Money & Banking https://ift.tt/UckA6...

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Banks seeing private capex revival aided by infra and PLI projects

State Bank of India chairman Dinesh Khara in May said that the country's largest lender has visibility on ₹4.6 lakh crore of loans in the corporate segment. from Banking/Finance-Industry-Economic Times https://ift.tt/081Vk...

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India's richie rich investors open a new 'window' for crypto bets abroad

These ultra-high net worth individuals are using a non-banking finance company - preferably an existing local entity - to sponsor an overseas investment company, a wholly-owned subsidiary, in a financial centre like Dubai. from Banking/Finance-Industry-Economic Times https://ift.tt/E9NFQ...

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SBI loses market share in debit card spends in FY22

State Bank of India (SBI) lost market share in debit card spends between March 2021 and March 2022, even as it managed to hold on to or improve its share in most other lines of business. The lender’s annual report for FY22 showed that its share in debit card spends fell to 27.58% at the end of the year, from 29.23% at the end of March 2021. SBI grew its share in the network of point of sale (POS) terminals to over 15% from 13% in March 2021. In home loans, too, the bank gained share, accounting for 35.3% of all mortgages given by banks in India, up from 34.53% a year ago. SBI also gained some share in advances and deposits. Increasing market share in its various lines of business is an important...

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Essar Power sells transmission line to Adani Transmission

Essar Power Ltd on Friday said it has agreed to sell one of its two electricity transmission lines to Adani Transmission Ltd for Rs 1,913 crore. The sale is a part of deleveraging strategy following which Essar has repaid over Rs 1.8 lakh crore to banks and financial institutions in the last three years - the largest debt repayment in the history. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/RDNWG...

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Govt to discuss IDBI sale plan with Reserve Bank of India

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/L4IA5...

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Why are mutual funds considered as one of the tools for wealth creation?

Mutual funds are best way to invest your money for the future. from Banking/Finance-Industry-Economic Times https://ift.tt/kRtCO...

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Credit card usage, spends shrink month-on-month in April

Credit card usage and spends shrank on a month-on-month (m-o-m) basis in April, shows data released by the Reserve Bank of India (RBI). While the volume of transactions fell 0.37% to Rs 223 million, the value of spends declined 1.5% to Rs 1.05 trillion. The number of cards in force rose 2% m-o-m in April to over 75 million. In March 2022, credit card spends across the industry were up 24% m-o-m at Rs 1.07 trillion, leading analysts to expect that spends in April and May would increase further to around Rs 1.1 trillion. A post-pandemic revival in...

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Kotak bank launches investment solutions app

Kotak Mahindra Bank, through its subsidiary Kotak Investment Advisors, on Thursday launched an investment management app, Kotak Cherry. The platform will provide investment solutions ranging from stocks, bonds, mutual funds, fixed deposits and national pension scheme to progressive investment opportunities like exchange traded funds. The app is enabled as a do-it-yourself (DIY) execution platform. The bank plans to add more features to the platform such as stock baskets, robo advisory, life, medical, general insurance and enable international investing. The bank is targeting to build a base of 10 lakh customers in a year. Additional features will be added by October. It will truly revolutionise...

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Retail segment likely to be key driver: Bankers see credit growth momentum sustaining

As the credit growth picks up, top bankers are optimistic that the momentum will sustain in the coming quarters as the economy opens up. Offshoots of growth in corporate loan were visible, but retail and MSME remained the drivers of credit growth during the previous financial year.     While the rise in total advances for public sector banks was 7.2% in FY22, the growth rate of private banks was at nearly 16%, according to data compiled by Capitaline. “Recovery in economic activity, derivative effect of increased investments and spending on consumption may sustain the momentum of over 12% growth over FY22-FY25,” ICICI Securities said in a report.   For SBI, the retail segment...

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Digital payments value to grow threefold to $10 trillion by 2026: Report

The size of the India’s digital payments market is likely to grow more than threefold from $3 trillion at present to $10 trillion by 2026, said a report by PhonePe and Boston Consulting Group (BCG). As a result of this unprecedented growth, digital payments will constitute two out of every three payment transactions by 2026, the report said. Simplified customer on-boarding, continued push for consumer awareness, expanding merchant acceptance, greater merchant access to credit, infrastructure upgrades and setting up of a financial services marketplace are set to drive growth in under-penetrated regions. The Internet of Things, 5G connectivity and the launch of a central bank digital currency...

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SBI, 15 others sell over ₹8,000-crore Suzlon loans to REC and IREDA

The loan sale was concluded even as the wind energy company was in the midst of its second bank-led restructuring initiated in 2020. The REC and IREDA-led refinance would extend the tenure of Suzlon's loans and would also bear a lower interest rate than what it was paying banks, multiple people familiar with the contours of the deal said. from Banking/Finance-Industry-Economic Times https://ift.tt/LlWYu...

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UPI transactions cross Rs 10-trillion mark in May

Unified Payments Interface (UPI) transactions continued to grow in May with the platform processing transactions of Rs 10 trillion during the month. In volume terms, transactions were at 5.95 billion during the month, according to data released by the National Payments Corporation of India. UPI transactions more than doubled on a year-on-year basis, in terms of both volume and value. In May 2021, the value of UPI transactions stood at Rs 4.91 trillion while the number of transactions totalled to 2.54 billion. On a month-on-month basis, the number of transactions grew by close to 7% while the value rose nearly 6%. The value of such transactions stood at Rs 9.83 trillion in April. For the previous...

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SBI to accelerate digital agenda in FY23: Chairman Dinesh Khara

State Bank of India (SBI) will accelerate its digital agenda at the level of its front and back offices in the current financial year, chairman Dinesh Khara said in the bank’s annual report for FY22. The lender intends to expand the scope and reach of its app Yono and enhance the user experience of the platform. In business operations, your bank will leverage advanced analytics for deeper insights on internal data and its best possible usage,” Khara said in his message to shareholders. Mutually-beneficial partnerships with fintechs and non-banking financial companies will be further explored to increase the penetration and reach of the bank, he added. As of March 2022, SBI had 22,266 branches,...

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SBI to accelerate digital agenda in FY23: Chairman Dinesh Khara

State Bank of India (SBI) will accelerate its digital agenda at the level of its front and back offices in the current financial year, chairman Dinesh Khara said in the bank’s annual report for FY22. The lender intends to expand the scope and reach of its app Yono and enhance the user experience of the platform. In business operations, your bank will leverage advanced analytics for deeper insights on internal data and its best possible usage,” Khara said in his message to shareholders. Mutually-beneficial partnerships with fintechs and non-banking financial companies will be further explored to increase the penetration and reach of the bank, he added. As of March 2022, SBI had 22,266 branches,...

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RBI likely to raise repo rate next week

Punjab National Bank (PNB), ICICI Bank and Housing Development Finance Corporation (HDFC) went for a fresh round of hikes in lending rates on Wednesday. Most lenders had raised rates after the monetary policy committee hiked the repo rate by 40 basis points (bps) on May 4. PNB raised its marginal cost of funds-based lending rate (MCLR) by 15 bps across tenures and ICICI Bank hiked MCLRs of all tenures by 30 bps. PNB’s one-year MCLR now stands at 7.4%, while ICICI Bank’s one-year MCLR is at 7.55%. HDFC raised its retail prime lending rate by 5 bps. Loans from the mortgage lender will now attract interest rates ranging from 7.05-7.5%, up from 7-7.45% earlier. Another hike in the repo rate is expected...

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HDFC Bank targets doubling of balance sheet every five years

The merger of Housing Development Finance Corporation (HDFC) into HDFC Bank offers a significant opportunity for the bank to scale up and will help it double its balance sheet every five years, HDFC Bank MD and CEO Sashidhar Jagdishan said. Addressing sector analysts at an interaction on Tuesday, Jagdishan sought to allay the investor community’s concerns about the proposed merger. “Growth is not going to be an issue at all. It’s going to be pouring out of your ears,” Jagdishan said. The only limiting factor will be liabilities and the bank has a strategy for that, he said. The bank expects mortgage penetration to drive its growth after the merger. Despite being the largest private bank in India...

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SBI to focus on digital agenda; partner with fintech firms, NBFCs to drive growth

The momentum is expected to continue, he said, adding opening up of the economy has reduced the need for a fresh stimulus package and the current momentum appears sustainable. Thus, for the bank, it is imperative that the business keeps adapting to the new operating environment, he said in his letter to shareholders published in the annual report for FY22. from Banking/Finance-Industry-Economic Times https://ift.tt/xDs3z...

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Ex-SBI executive Natarajan Sundar appointed NARCL chief

Former State Bank of India (SBI) executive Natarajan Sundar has been appointed MD & CEO of the National Asset Reconstruction Company (NARCL) with effect from May 30. Another former SBI employee, Karnam Sekar, who also headed Indian Overseas Bank (IOB) till June 30, 2020, has been appointed non-executive chairman of the bad bank. Sundar retired on April 30 as deputy managing director and chief credit officer at the bank, after having worked there for over 37 years. “After his name was recommended for the position by NARCL board, the fit and proper approval was granted by the sectoral regulator, RBI on May 24, 2022. The previous incumbent, Mr. Padmakumar Nair, who was on a secondment basis...

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HDFC merger has the blessings of PMO, Reserve Bank, says Sashidhar Jagdishan

Jagdishan said the banking regulator had asked it to keep the structure of the merged entity simple, with HDFC Bank being the holding company. from Banking/Finance-Industry-Economic Times https://ift.tt/QwavA...

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Bank credit to industry in April grows fastest in 8 yrs

Bank credit to industry grew at its fastest pace in eight years in April 2022, showed sectoral data released by the Reserve Bank of India (RBI) on Tuesday. The value of loans deployed in the industrial sector — including large, medium, small and micro industry — grew 8.1% year-on-year (y-o-y) to `31.52 trillion as on April 22. Credit to medium enterprises grew at the fastest pace of 53.5% y-o-y, while loans to micro and small enterprises grew 29%. Growth in the large enterprises segment lagged at 1.6%. Over the last two years, banks have increased their exposure to medium and small enterprises while implementing the government’s Emergency Credit Line Guarantee Scheme (ECLGS), aimed at supporting...

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SBI to Swiss auction KSK loans

The bank decided to hold a Swiss auction to avoid glare from investigative agencies in future, a bank executive said on condition of anonymity. "The bank would not like to be questioned for selling loans without attempting to get the best offer," the person said. from Banking/Finance-Industry-Economic Times https://ift.tt/EyQCa...

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Srei net worth 'fully eroded', but company posts Rs 325 crore consolidated net in Q4

The quarterly profit was on account of a rise in recovery of loans, which helped total income to grow, and a sharp fall in expenditure. Total income rose to ₹795 crore from ₹595 crore, while expenses fell to ₹482 crore from ₹3,986 crore. from Banking/Finance-Industry-Economic Times https://ift.tt/Np4OC...

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Chinese banks overflow with cash that nobody wants to borrow

Housing sales have continued to slump, indicating a lack of appetite for mortgages and subdued credit demand among developers and sectors linked to the property industry. from Banking/Finance-Industry-Economic Times https://ift.tt/r7fnL...

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Bank loans rise across sectors in April

Credit to large companies rose 1.6% in April from the same month a year earlier, when it had contracted 3.6%, according to latest data on sectoral flow of bank credit released by the Reserve Bank of India. Credit to medium industries increased 53.5% year-on-year in April this year compared with 44.8% last year. from Banking/Finance-Industry-Economic Times https://ift.tt/vlArE...

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States can cut fuel taxes by Rs 2-5 per litre: SBI

A report by State Bank of India (SBI) has said that state governments have gained Rs 49,229 crore from value-added tax (VAT) revenue on fuel when oil prices were increasing and will forego Rs 15,021 crore because of the cut in excise duty. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/8qrYV...

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HDFC bank customers turn 'crorepatis' in Chennai

A few HDFC Bank account holders in the city became rich for a few hours on Sunday after their bank balances shot up by lakhs and even crores in certain cases. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/OnqHs...

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Advance action on bank privatisation under way: DFS secy

The government is at an advanced stage of finalising plans to privatise two state-run banks in sync with the Budget announcement made last year. Speaking at an event here on Monday, financial services secretary Sanjay Malhotra said, “In so far as bank privatisation is concerned, there is already a statement on the floor of the House by the finance minister for making enabling provision. Advance action on this is under way.” In the Budget for 2021-22, the government had announced its intent to privatise two public sector banks and one general insurer. Sources had earlier said NITI Aayog had recommended Central Bank of India and Indian Overseas Bank as possible candidates to the core group of...

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NBFC-MFI sector stressed assets drops 800 bps to 14% in March

Stressed assets of non-banking financial companies-microfinance institutions (NBFC-MFIs) has declined to around 14% as of March 2022 on account of improved economy and increased collections, Crisil Ratings said in a report. The current stressed assets of NBFC-MFI, which include loans that were unpaid for more than 30 days, declined by 800 basis points in March from 22% in September 2021. However, the stressed assets are significantly higher than the pre-pandemic levels of 3%. “The reduction in stressed assets, along with improved collection efficiencies mark a recovery in the asset quality of NBFC-MFIs, supported by economic revival, limited impact of the omicron variant, and acclimatisation...

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Payments ecosystem not fully ready for tokenisation

By Shashank Didmishe With the June-end deadline for the mandated card-on-file tokenisation system fast approaching, bankers are concerned that the payments ecosystem as well as most of the merchants are unprepared for the new regime. Given that a significant volume of transactions take place through cards, they fear this could result in some loss of business. The Bank of Baroda (BoB) management said with merchants unable to migrate to the new system, we could see some breakdown in settlements, reconciliation and services such as refunds, cash-backs and charge-backs. BoB has so far tokenized more than 20% of its active e-commerce debit card base. “From the perspective of an acquirer, we will...

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RBI working to expand use of UPI for cross-border remittances

The Reserve Bank of India (RBI) is working to establish Unified Payments Interface (UPI) as a channel for making cross-border remittances. In its recently-released annual report for FY22, the central bank said the enablement will help reduce the cost of remittance transactions. The first such linkage between UPI and another country’s fast payments system was the link with Singapore’s PayNow, activated in September 2021. “While the efforts with various countries are at various stages, the interlinking of UPI with PayNow has been formally announced and is expected to be operationalised in the second half of 2022,” the report said. The interlinking will further anchor trade, travel and remittance...

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India finalising consultation paper on crypto: DEA secy

The government will soon finalise a consultation paper on cryptocurrencies with inputs from various stakeholders and institutions, including the World Bank and the IMF, economic affairs secretary Ajay Seth said on Monday. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/Po7IT...

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PSU banks double net profit to record ₹66.5k cr in FY22

Public sector banks (PSBs) have doubled their net profit during financial year 2021-22. The collective profit of 12 state-owned banks during 2021-22 worked out to Rs 66,539 crore, an increase of 110% over Rs 31,816 crore in FY21. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/RZb05...

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Govt’s stake in Union Bank to go below 75%

Union Bank of India aims to bring down the government’s stake in the lender to around 75% from 83% by raising fresh equity capital. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/G5S8q...

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Public-sector bank top brass to get extra cover for bonafide decisions

The government is considering a proposal to grant greater protection to senior executives of state-run banks, akin to the immunity enjoyed by government servants, to shield them from easy arrests and harassment for “honest business errors” and encourage them to lend without fear, official and banking sources told FE. One of the proposals being weighed aims to ensure that public-sector bankers are granted protection (like government officials) under Section 197 of the Code of Criminal Procedure (CrPC). This section prohibits the courts from taking cognisance of criminal charges against government servants without prior sanction of the competent authority. “The finance ministry and the Indian...

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Retro Tax: I-T department withdraws Sanofi appeal from Supreme Court

While Sanofi, like many other multinationals, settled this with the taxman under India's plan to rescind the indirect transfer of assets amendment or retrospective tax amendment in December, the appeal in Supreme Court was yet to be withdrawn. In a May 6 order, the apex court dismissed all the appeals. "In terms of the request made before the court, the appeals are dismissed as withdrawn," the court ruled. from Banking/Finance-Industry-Economic Times https://ift.tt/3lQSo...

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How a display error hit HDFC Bank's Chennai branch

Due to the freeze, those customers could not transfer any fund to other accounts but could receive cash. A small number of remaining ones, according to the bank, will be completed soon within the next few hours. About two and half years ago, the central bank had ordered the bank to temporarily hold all digital launches and new sourcing of credit card customers. from Banking/Finance-Industry-Economic Times https://ift.tt/Z0FBC...

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Organic growth, tie-ups start delivering, aims 20pc share in credit cards in 3 years: Axis Bank official

The fourth-largest private sector bank clocked the highest ever quarterly growth with over 1.1 million credit card acquisitions in the March quarter of 2021-22. from Banking/Finance-Industry-Economic Times https://ift.tt/xz1nk...

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Bank of Maharashtra tops PSU lenders chart in loan growth in FY22

State-owned Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in terms of loan and deposit growth in percentage terms during 2021-22. The Pune-headquartered lender recorded a 26 per cent increase in gross advances at Rs 1,35,240 crore at the end of March 2022, according to the BoM data. It was followed by State Bank of India and Union Bank of India with 10.27 per cent and 9.66 per cent growth, respectively. However, in absolute terms, aggregate loans of SBI were nearly 18 times higher at Rs 24,06,761 crore while Union Bank of India’s five times higher at Rs 6,99,269 crore compared to that of BoM’s at the end of fourth quarter. With regard to deposit growth,...

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HDFC bank leads among 7 of top-10 firms adding ₹1.16-lakh crore in m-cap

Reliance Industries, TCS and Life Insurance Corporation (LIC) emerged as the laggards from The HinduBusinessLine - Money & Banking https://ift.tt/1ghBf...

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