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Kotak Mahindra Bank received approval from the Reserve Bank of India (RBI) for the appointment of Ashok Vaswani as the bank's Managing Director and Chief Executive Officer (MD & CEO) for a three-year term. Vaswani, who previously worked at Barclays, will succeed Uday Kotak, who resigned as MD of the bank. Commenting on the appointment, Vaswani said, "We will ensure that Kotak Mahindra Bank plays a meaningful role in India's journey to being one of the top 3 economies in the world in the next 5 years."from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/ltvP9ZJ
Private lender ICICI Bank reported a 35.8% increase in net profit for the July-September quarter on Saturday.Standalone net profit rose to a record Rs 102.61 billion ($1.23 billion) in the second financial quarter, from Rs 75.58 billion in the same period a year earlier.That was sharply higher than analysts' forecast of Rs 96.26 billion, according to LSEG data. Net interest income - the difference between interest earned and paid - rose 23.8% to 183.08 billion rupees.
The Monetary Policy Committee (MPC) members of the Reserve Bank of India (RBI) expressed concerns about inflation increasing due to price shocks, especially in the food sector. RBI Governor Shaktikanta Das emphasized the need for a disinflationary policy and aligning inflation with the 4% target. The hawkish statements from the MPC members indicate that the central bank is unlikely to ease monetary policy soon. RBI may focus on controlling prices through liquidity management.
The Reserve Bank of India (RBI) governor, Shaktikanta Das, announced that interest rates will remain high and the central bank is focused on monitoring inflation dynamics to ensure a sustained decrease in price pressures. Das stated that India's macroeconomic fundamentals are strong and the country is well-positioned in uncertain times. He also highlighted that retail inflation has decreased to 5% in September 2023, but cautioned about uncertainties in food inflation.
Reserve Bank Governor Shaktikanta Das emphasized the need for an actively disinflationary monetary policy to ensure a smooth decline in inflation. He stated that price stability and financial stability go hand in hand and that the RBI is focused on managing both effectively. Retail inflation fell to a three-month low of 5.02% in September, within the RBI's comfort level. Das also highlighted the challenges of global inflation, slowing growth, and risks to financial stability. He expressed confidence in India's ability to maintain minimum capital requirements.
The stock market in India opened in the red and slipped into negative territory due to global headwinds and geopolitical tensions. Bajaj Auto, Mindtree, Hero Motocorp, Nestle India, and Ultra Cement were the top gainers, while Wipro, Tech Mahindra, Sun Pharma, NTPC, and UPL were the top losers. Analysts highlighted crucial support levels at 19,500-19,300 for the Nifty and identified potential opportunities in IT, Banks, Media, Metal, Pharma, and FMCG sectors. Despite the challenges, experts remained cautiously optimistic about the resilience of the Indian markets.
The Adani group's $3.5 billion loan deal, anticipated to rank among the top 10 largest loans in Asia for the year, is reportedly on the verge of completion. The loan is expected to have an all-in-cost ranging between 450 to 500 basis points over the benchmark secured overnight finance rate. This agreement will encompass three distinct tenors: 6-month, 18-month, and 3-year. The deal could be finalised this week and comes after months of negotiations with banks.
The Reserve Bank of India (RBI) has published a report stating that high-frequency indicators show a broad-based gaining of growth momentum in the Indian economy. The report also highlights moderating inflation, which is bolstering macroeconomic fundamentals. The growth of e-commerce is expected to continue, especially during the festival season, with increased consumer confidence and demand for online shopping. However, tractor sales remain negative.
Indian shares fell on Thursday, driven by global stock selloffs due to tensions in the Middle East. However, gains in key Nifty 50 constituents limited the losses. The NSE Nifty 50 index settled 0.24% lower, while the S&P BSE Sensex fell 0.38%. Metals and high-weightage banks were among the top losers, while the auto and consumer indices saw gains. Rising US Treasury yields and foreign portfolio investor (FPI) selling were also concerns. Wipro and Ultratech Cement were among the top losers and gainers, respectively.
Bank of Baroda has reportedly suspended over 50 employees, including assistant general managers, as part of its crackdown on irregularities in customer onboarding for its mobile banking app, bob World. The action comes after the Reserve Bank of India (RBI) banned the bank from onboarding new customers onto the app following the discovery that staff were entering third-party numbers to inflate registered users.
A delegation of experts, including representatives from the World Bank, visited Thane to discuss the state government's plan to revamp its statistics sourcing system. Officials said the state wants real-time data of all districts at the click of a button. Presently, the state relies on outdated data which is compiled and relayed to it months later or in some cases even a year late.
IndusInd Bank has reported a 22% increase in its consolidated net profit for the September quarter of 2023-24, reaching Rs 2,202 crore. This growth was supported by a decrease in bad loans and an increase in interest income. The bank's total income increased to Rs 13,530 crore during the quarter under review, as against Rs 10,719 crore in the same period last year, IndusInd Bank said in a regulatory filing.
The European Union's data protection watchdog on Wednesday called for stronger privacy safeguards in EU draft legislation to underpin a digital euro. The European Central Bank (ECB) is due to say shortly that it will push ahead with further preparations for a digital euro, one of many central banks across the world seeking to keep ahead of technological advances in payments.
HSBC has increased its loan arrangement to a subsidiary of Mukesh Ambani's Reliance Industries, nearly doubling the size of the loan. The London-based bank initially provided a £60 million loan facility for Reliance's acquisition of the Stoke Park estate in England. The loan arrangement has been extended three times, with the latest increase taking it to £115 million. HSBC has been involved in financing arrangements for Stoke Park for over a decade.
RBI inspected the books of ICICI Bank in 2020 and 2021 to evaluate its financial status. During the inspection, RBI found that the bank had given loans to companies where two of the lender’s directors held board positions — in violation of RBI guidelines. The bank also marketed and sold non-financial products, which are outside the remit of a commercial bank.
Banks have scaled back credit card perks, including reward points and cashbacks, during the festive season. The move is aimed at increasing profitability in the loan segment as banks strive to gather deposits after recent interest rate hikes.
Federal Bank has reported its highest-ever quarterly net profit of Rs 954 crore for the September quarter, an increase of 36% over Rs 703 crore in the year-ago period. The increase in net profit followed a 20% year-on-year increase in loans to Rs 1.9 lakh crore and a 23% growth in deposits to Rs 2.3 lakh crore.
HDFC Bank reported a net profit of Rs 15,976 crore for the September quarter, following its amalgamation with parent HDFC. The bank's consolidated net profit stood at Rs 16,811 crore, better than expectations. However, the bank's margins declined due to the additional funds raised for the merger and the different nature of HDFC Bank's business compared to HDFC. The bank's net interest margin dropped to 3.4% post-merger.
Several countries are becoming more open to providing capital to multilateral development banks (MDBs) such as the World Bank, according to N K Singh, co-chair of an expert group on MDB reform. However, he cautioned that it may take time before large amounts of private resources can flow to these entities. Singh said that there appeared to be consensus among G20 countries and MDBs on the need for reform, and that this should encourage other MDBs to make changes.
The dollar strengthened as tensions in the Middle East increased and investors awaited a speech by Federal Reserve Chair Jerome Powell for insight into the US central bank's rate outlook. The Israeli shekel fell to an eight-year low against the dollar after Prime Minister Benjamin Netanyahu vowed to "demolish Hamas".
Finance Minister Nirmala Sitharaman has called on the private sector to support the Sustainable Development Goals (SDGs), stating that it is the collective responsibility of all stakeholders to contribute. Speaking at an event in Morocco, Sitharaman expressed confidence that reforms in multilateral development banks (MDBs) prompted by G20 deliberations will increase investments in developing nations. She highlighted the need for global cooperation and innovative financing approaches to bridge the financing gap for achieving the SDGs by 2030. Sitharaman also emphasized the need for MDBs to be reformed in order to address the challenges of the 21st century.
Reserve Bank of India (RBI) Governor Shaktikanta Das has been awarded an 'A+' ranking in the Global Finance Central Banker Report Cards 2023. The report cards recognize central bank governors who have outperformed their peers in terms of originality, creativity, and tenacity. Das was placed at the top of the list alongside Switzerland's Thomas J Jordan and Vietnam's Nguyen Thi Hong.
