The quarterly earnings season is back and 3 banks posted decent results but the month ahead will see more trouble brewing for the treasury books of most banks denting their profitability
Kotak pushing growth
At the beginning of the week, we had said the banking sector this results season will hold little cheer for banks, as the steep drop in bond prices is expected to add to the existing bad loan problem.
Although to talk about some positive news for the lenders, IndusInd Bank which declared a 25 percent jump in its profits, witnessed some fresh demand for capital expenditure from corporates giving a boost to the multi-year low credit growth and mounting NPAs faced by banks.
Kicking off the results season for December quarter,Kerala-based old private sector lender South Indian Bank posted almost flat growth in its net profit at Rs 115 crore.
Karnataka Bank reported a whopping 27.6 percent growth in profit for quarter ended December 2017, with improving asset quality. The growth was driven by net interest income, operating income and other income.
Aadhaar data security issue also continued to be in the news with UIDAI introducing new measures such as virtual ID and limited KYC -- to strengthen the privacy and security of the identity and critical information of citizens.
The Reserve Bank, however, distanced itself from its research scholar who raised concerns on Aadhaar, India’s first biometric identity card.
And the government has assured of the safety of every fingerprint and iris data stored in the Aadhaar system and that it cannot be breached even by "billions of efforts".
In a wait of nearly five months post the retirement of AP Hota in August last year, National Payments Corporation of India (NPCI) — the umbrella organisation for operating retail payments and settlement systems in India — now has a chief in the form of Dilip Asbe.To end on a happy note, the WhatsApp rumours of removal of free service charges by banks was denied by the RBI. However, this may not necesasarily mean banks will provide all services for free. Watch out when you transact with your bank.