BUSINESS
Yes Bank Q1: Worst is behind for the lender, but a likely asset quality shock lies ahead
The biggest take away is the growth in deposits from March-quarter which indicates some confidence is returning to the bank after a tumultuous phase.
BUSINESS
Quick Take| Kotak Mahindra Q1 numbers signal asset quality pressure; COVID-19 impact visible
Most bank managements have given a cautious guidance on business outlook. So what’s different for Kotak? The pressure on asset quality that is already visible and uncertainty.
BUSINESS
Why Deepak Parekh doesn’t like the idea of a moratorium extension
The moratorium scheme announced by the RBI, initially for three months, March-May, and later for another three months, June-August, is only temporary relief for companies. This, in a way, hides the actual stress on the books of banks for the time being.
BUSINESS
Banking Central | Who will save India’s public sector banks from politicians?
Unless banks are given the freedom to decide on business decisions, banking sector NPAs can’t be addressed. In a highly competitive industry, PSBs need to be given a level playing field.
BUSINESS
ICICI Bank Q1: COVID-19 caution dominates yet another quarter; future uncertain
Moratorium loans decline to 17.5 percent in June, provisions jump, mood cautious.
BUSINESS
RBI Financial Stability Report | Moratorium impact on NBFCs, HFCs may be substantial
The RBI launched TLTRO and TLTRO 2.0 to help NBFCs get liquidity support. However, the scheme benefited only top-rated, big NBFCs since banks remained risk-averse.
BUSINESS
Urjit Patel highlights issue of 'creeping banking sector fiscalisation' in his new book
As successive governments have found their capacity for further fiscal expansion becoming constrained, it has used the banks that it owns to fire up and pump-prime the economy; hence the term banking sector-fiscalization.
BUSINESS
RBI neglected to take away the ‘punch bowl’ from the credit-binge ‘party’, says Urjit Patel in new book
In his book, Patel has elaborated on how excessive government ownership has weakened the government banks in the country
BUSINESS
Do not reward wrongdoers by bestowing awards; do some background checks: Urjit Patel’s memo to financial media
The context here is the annual awards given by financial media houses to banks. The recipients, sometimes, include even those banks who have been fined by the RBI and other regulators, sometimes more than once, for rule violations.
BUSINESS
Urjit Patel cautions on rising bank frauds, wants boards, managements to act
A look at the latest data of large banks shows a spike in the number of frauds and the money involved over the previous year. Subsequently, there is a corresponding rise in provisions made.
BUSINESS
Auto loan controversy in HDFC Bank could haunt Aditya Puri’s successor
‘GPS for vehicle loan’ episode has damaged HDFC Bank’s speckless reputation just when the private lender is preparing to hand over the reins to a new boss.
BUSINESS
IBA, Bank unions agree on 15% wage hike
A 15 per cent hike in wage cost will mean a yearly burden of Rs 7900 crore for the banking industry.
BUSINESS
Wilful defaulters owe Rs 1.5 lakh crore to public sector banks: How big is the mess?
A wilful defaulter is a borrower who has the ability to repay the bank but wouldn’t so deliberately. Here, the intent to pay back the money to the lender is absent.
BUSINESS
Axis Bank Q1: High caution visible, fall in moratorium book in line with industry
In the fourth quarter of the last fiscal, Axis Bank had said that about a quarter of its loan book was under moratorium (25-28 percent). From there, the value of moratorium loans has substantially declined and extra caution against future uncertainties is visible.
BUSINESS
Smuggling racket thrusts Kerala’s insatiable love for gold back into spotlight
The unraveling of a smuggling racket originating from the Gulf once again underscores the state’s ungodly penchant for the yellow metal.
BUSINESS
Analysis| Bajaj Finance remains steady, cautious in COVID times
Extra caution and decline in moratorium book are good news to Bajaj Finance investors in uncertain times. That is despite a 19 percent fall in net profit to Rs 962 crore in Q1 from Rs1195 crore in the year ago quarter.
BUSINESS
Banking Central | 51 years of bank nationalisation: Indira Gandhi’s ‘drama’ or India’s biggest banking reform?
Bank nationalisation took root in 1969 and altered the Indian banking industry landscape forever. A look at the effects of the epochal action through the years.
BUSINESS
Analysis | Urjit Patel’s scathing attack on RBI, UPA for the NPA mess: 3 critical insights
Reasons for India’s NPA crisis are well known. However, this is probably the first time a former RBI governor has launched such a scathing attack on the central bank criticising the inefficiency and laxity to monitor the build-up of bad loans in the system.
BUSINESS
Bad loan write-offs by state-run banks accelerated in past 6 years to hit nearly Rs 5.5 lakh crore, show data
The write-offs illustrate the recurring — and unbridled — problem of the mountain of bad loans, or non-performing assets, that banks are saddled with as borrowers struggle to pay off debt in a slowing economy.
BUSINESS
Analysis | Raghuram Rajan’s latest warning on bank NPAs is an understatement of the real problem
Banks have sensed the danger already which is why they are on a capital raising spree. A number of private banks -- including ICICI Bank, HDFC Bank, Axis Bank and Yes Bank -- have announced plans to raise capital even though they have adequate capital levels
BUSINESS
Fund-starved small, medium NBFCs say govt, RBI liquidity measures didn’t help; write again to FM seeking relief
The RBI announced targeted long term repo operations (TLTRO) while the government, as part of the economic package, announced partial credit guarantee scheme and special liquidity schemes to help NBFCs But, these measures have largely benefited only the big NBFCs while smaller once are starving for funds, said the FIDC letter.
BUSINESS
Analysis| Bandhan Bank Q1: With 64% book in micro loans, lender walks a cautious path; Collections pick up but COVID holds the key
The message here is clear: the management expects pain on the asset quality going ahead and doesn’t want to lower the guard
BUSINESS
Exclusive | Bandhan Bank may look at merger with holding company to cut promoter stake; awaits clarity on RBI rules
Bandhan Bank's holding company Bandhan Financial Holdings owns 60.95 percent stake in the bank, even after five years of inception.
BUSINESS
Bank fraud cases see a major spike in 2019-20: How prepared is the RBI?
A look at the latest data of large banks shows a spike in number of fraud cases and the money involved over the previous year. Subsequently,there is a corresponding rise in provisions made.
