BUSINESS
Budget 2020: Lack of effective liquidity measures may delay revival of weaker NBFCs
After the slew of measures announced in September 2019, markets were anticipating a second wave of supportive policy actions that would ensure quicker revival of the shadow banking sector.
BUSINESS
Budget 2020: Government to exit IDBI Bank by selling balance stake
While there was no specific amount allotted for public sector banks (PSBs) in the Union Budget 2020-21, the government said that it will undertake recapitalization as and when needed. PSBs will also be encouraged to approach capital markets to raise additional funds.
BUSINESS
Q3 earnings: Private lenders deliver on profitability, but slippages a concern
With interest rates on the downtrend, thanks to five consecutive rate cuts by the Reserve Bank of India (RBI) in 2019, and surplus liquidity conditions since past few months, banks were able to reset their deposit rates leading to lower cost of funds in the third quarter.
BUSINESS
Banks should focus on building 'digital trust' amid rising cyber threats, says IBM executive
Vaidyanathan Iyer, Security Software Leader, IBM India and South Asia, said that user training and experience are as important as the regulatory framework and technology in building digital trust.
BUSINESS
Kotak Mahindra Bank goes slow on loan growth as slippages remain high
The bank saw Rs 1062 crore worth of new additions to bad loans in the third quarter. The lender had reported slippages of Rs 800 crore in the first and Rs 1000 crore in the second quarter of current financial year.
BUSINESS
HDFC Bank clarifies why its mobile, online services were recently disrupted
The bank said that it had underestimated the growth in volumes across payment products through multiple channels like cards, Unified Payments Interface (UPI).
BUSINESS
Bank frauds: RBI looking into role of forensic audits
The banking authority will also issue norms for declaration and processing of red-flagged accounts.
BUSINESS
Indian lenders’ exposure to real estate doubled in last 4 years: RBI report
Loans given to real estate companies rose to Rs 2.01 lakh crore in June 2019, from Rs 1.05 lakh crore in June 2016, the RBI said in the Financial Stability Report released on December 27.
BUSINESS
Urban Cooperative Banks’ capital adequacy dips, bad loans rise: RBI report
The report also stated that as of September 2019, the capital adequacy ratio of SUCBs fell 9.8 percent, down from 13.5 percent in the quarter that ended in March. Also, the gross NPA ratio rose to 10.5 percent, down from 6.4 percent in the same period.
BUSINESS
Bad loans of banks may rise to 9.9% by September 2020: RBI
"This is primarily due to change in macroeconomic scenario, marginal increase in slippages and the denominator effect of declining credit growth," the central bank noted.
BUSINESS
Banking sector’s health hinges on macroeconomic turnaround: RBI report
RBI said that it is monitoring the health of banks that are currently under the Prompt Corrective Action framework.
BUSINESS
2020 preview: Top 5 things to watch out for in the banking sector
After an eventful 2019, the Indian banking sector is poised for bigger developments in the coming year. Here's a look at the top five changes anticipated in 2020:
BUSINESS
RBI to carry out US-style 'Operation Twist' to bring down interest rates
‘Operation Twist’ is when the central bank uses the proceeds from sale of short-term securities to buy long-term government debt papers, leading to easing of interest rates on the long term papers.
BUSINESS
Imperative that monetary and fiscal policies work in close coordination: RBI Policy minutes
Das added that while there is policy space for future rate reduction, the cuts need to be appropriately timed to ensure optimal impact.
BUSINESS
Banking wrap 2019: Top 5 changes for bank customers
Let's take a look at the major changes in banking regulations
BUSINESS
Powered by data, unsecured loans set to soar over next 5 years in India
Personal loans, credit cards and consumer durable loans are all likely to clock over 20 percent growth in the next five years, as per the report.
BUSINESS
Yes Bank fund raising: 5 reasons likely keeping marquee investors away
While the market is abuzz on what could be stopping them from closing the deals, here's a look at five reasons why the country's fourth largest private lender is not able to attract interest from top quality investors:
BUSINESS
RBI keeps rates unchanged, FY20 growth forecast cut to 5% from 6.1%
This is the first pause after five consecutive rate cuts this year. Prior to this, the Monetary Policy Committee (MPC) lowered the repo rate by 135 basis points between February-October 2019.
BUSINESS
Consumer durable loans jump on festive season demand
Strong demand, fuelled by lucrative discount offers and backed by retail loan push from banks led to a boost in consumer durable loans in months of August, September and October.
BUSINESS
Lenders on thin ice as Karvy mess may expose due diligence failure
Also, norms for brokers and banks laid down by their respective regulators do not seem to be on the same page.
BUSINESS
RBI Policy preview: MPC likely to cut repo rate by 25 basis points on growth concerns
The dismal GDP growth in July-September quarter, read in line with the MPC's decision to stay accommodative for "as long as it is necessary to revive growth" from October policy review, makes a case for the sixth consecutive rate cut this year.
BUSINESS
NBFC liquidity crunch: Banks await relaxation in government's partial credit guarantee scheme
The government had set the target of Rs 1 lakh crore of disbursement under the scheme by February 2020. But lenders have identified pools of around Rs 15,000 crore only as of now.
BUSINESS
Soon, website for PSB loans will track repayments too
The platform was created with an aim to provide easy access to working capital loans from commercial banks to MSME borrowers with the help of an algorithm that processes eligibility for such loans and cuts turnaround time for lenders.
BUSINESS
DHFL resolution: What happens to public deposits?
According to experts, DHFL’s depositors need to gear up for a haircut after a long-drawn legal process. The haircut may not be much if the HFC is able to attract valuable bids from new investors.
