BUSINESS
Vault matters: The changing face of Indian private banks
In recent years, the landscape of private banks in India has significantly shifted, reliance on public sector banks (PSUs) for support has also risen. While PSU bankers are competent, the dependence on them raises concerns about innovation and adaptability within private banking.
BUSINESS
MC EXclusive | RBI may not budge on 26% voting rights cap for bank promoters
Capping voting rights at 26 percent is unique to India. Most countries permit promoters to enjoy voting rights commensurate to their shareholding
BUSINESS
MC Exclusive | Japan looking to collaborate with India on UPI, says NTT Data Payment’s India head
Takeo Ueno said that India is the lodestar when it comes to online retail payments, and the UPI roll-out is something Japan can learn from and optimise.
BUSINESS
Mizuho leads race for acquiring Avendus, but other options remain in play
Avendus Capital co-founder Gaurav Deepak is putting together a counteroffer to challenge Mizuho and Nomura’s preliminary bids, but valuation differences and unclear exit paths for potential investors may hinder his efforts.
BUSINESS
Vault Matters: Who should own banks and non-banks?
The RBI governor in his MPC speech mentioned that non-banks to satisfy the expectations of their investors end up chasing high returns which in turn leads to high growth, not necessarily reflective of the real demand. The subtext is PE-led lenders can pose financial stability issues in pursuit of eye-popping returns. The way out may be to harmonise rules of ownership structures between banks and top-tier NBFCs
BUSINESS
RBI MPC Analysis: Don’t read too much between the change in stance
From ‘withdrawal of accommodation’, RBI Monetary Policy Committee has altered its stand to ‘neutral’ in the gone by October policy. But this shouldn’t tempt one to think that a rate cut is around the corner because the animal called inflation may have changed its form from an elephant to a horse, but still remains to be quite a lethal one.
BUSINESS
Follow ‘compliance first’ culture: RBI governor Shaktikanta Das sends out a stern message to NBFCs
The governor elaborated that a few NBFCs may be aggressively chasing growth without building sustainable business practises and risk management frameworks commensurate scale, and complexities of their portfolios.
BUSINESS
Three reasons why October RBI MPC is crucial
This is the first policy after the US Federal Reserve slashed its benchmark rate by 50 basis points
BUSINESS
MC Exclusive | Search for the next Sebi chief may have started, say sources
Sources say the search process has been started so that a replacement is in place if incumbent Madhavi Puri Buch does not get an extension after her three-year tenure ends on February 28, 2025
BUSINESS
Vault Matters: Priority sector lending or profitable sectors lending?
Priority sector loans have for banks become a source of profitability because RBI’s assumption that harmonising regulations for certain asset classes across intermediaries will unleash competition and drive down interest rates hasn’t worked. Rates today are relatively high for borrowers at the bottom of the pyramid. This has social implications
BUSINESS
MC Exclusive | RBI ban is like baptism by fire, cannot let a crisis go wasted: Ashok Vaswani, MD & CEO, Kotak Mahindra Bank
Stating that resolving the issue around digital onboarding of customers through the bank’s mobile app is not just about satisfying the RBI, but about building the backbone to take the bank to the next level, Vaswani, told Moneycontrol that working on lifting the ban is his top priority.
BUSINESS
MC Exclusive | Reserve Bank ban ‘lit a fire under us’: Ashok Vaswani
I don’t feel different or like an outsider: MD & CEO, Kotak Mahindra Bank
BUSINESS
MC Exclusive | Uday Kotak is my greatest strategic asset, says Ashok Vaswani, MD, Kotak Mahindra Bank
Talking about the relationship with Uday Kotak, the bank's founder and non-executive director, Vaswani said that while he didn't know him previously, Kotak deserved credit for stepping away from something he had built.
BUSINESS
MC Exclusive | Will look at every inorganic opportunity: Ashok Vaswani, MD & CEO, Kotak Mahindra Bank
When asked if the bank would be interested in picking up a majority stake in IDBI Bank, Vaswani said the bank would evaluate all inorganic growth options
BUSINESS
Yes Bank’s return on assets to rise by 10 bps in FY25: CEO Prashant Kumar
The bank is exploring acquisitions in the microfinance sector as part of its plan to focus on higher-yielding products
BUSINESS
MC Exclusive: Our deposit growth will always be higher than loan growth: Prashant Kumar, MD and CEO, Yes Bank
Speaking exclusively to Moneycontrol, Prashant Kumar, MD & CEO, Yes Bank explains why he is confident about the turnaround experienced by the bank from March 2020 to now. In this interview, he addresses an array of topics concerning the bank, starting from the deposit strategy to the ongoing stake by SBI.
BUSINESS
Vault Matters: Banks may be slightly shortsighted on their deposit plans
While there is definitely a rush deposits, what is increasingly becoming a matter of concern is kind of efforts is being put into building deposits in the 2 - 3 years’ bulge. What this means is that the banks are increasingly preferring to build assets around the tenure. But is this good to meet the longer duration credit requirements
BANKING
MC Exclusive: Manappuram’s MFI arm Asirvad Micro Finance defers listing plans
Unfavouable market conditions and differences in valuation expectations seen as key reasons for Asirvad Micro Finance to postpone its listing plans. The company was supposed to roll out its IPO by September 30.
BANKING
IIFL Finance board to evaluate listing of mortgage, microfinance units: Nirmal Jain
Move is critical to mitigating possible business risks, Jain says, adding 360 One WAM and IIFL Securities did not face any issues when the RBI barred IIFL Finance from taking on new customers for gold loan business
BUSINESS
The system has stood the trial by fire, and confidence has increased: Nirmal Jain of IIFL Finance
There are small loans rated by CARE and the company is immediately repaying those loans so that the CARE rating can be withdrawn, says Jain
BUSINESS
Vault Matters: Are banks steady to absorb a rate cut?
While loans may get less expensive thereby sprucing demand, on deposits front banks cannot afford to be complacent about reducing deposit rates and yet be comfortable about deposit mobilization. A rate cut may do more harm than good for banks at this juncture
BUSINESS
TVS Credit, Baring EQT, Kedaara Capital in race to acquire Indostar Home Finance
Proceeds from stake sale of the housing unit is expected to be utilised by Indostar Capital Finance to meet growth requirements
BANKING
Lenders expect little relief from RBI on project finance norms
According to sources, the central bank may not budge on the demand by the industry to relax the 5 percent provisioning requirement. A few lenders are, however, hopeful that some leeway may come through on existing project loans.
BUSINESS
Northern Arc Capital open to inorganic growth options, says CEO Ashish Mehrotra
Small and medium business is of keen interest to Northern Arc and so is the secured lending segment.
