Indian Banks

Emkay Global Financial Services expect HDFC Bank, ICICI Bank, Indian Bank and RBL Bank to be outliers, with Axis Bank, Federal Bank, Bandhan Bank, Canara Bank and Union Bank of India reporting softer quarter due to weak margins and elevated credit costs

The debate over foreign ownership of Indian banks: How the rules might change

Technically today, a foreign bank can own even 51% in an Indian bank. But as said before, the Banking Regulation Act doesn’t allow a single entity to have more than 26% voting rights in a bank.

Private bank CEOs see muted salary hikes in FY25, Kotak Bank CEO drew highest pay

The combined take home salaries of top 10 state-owned banks chief stood at Rs 5.13 crore in FY25, less than half of HDFC Bank CEO's take home pay.

Private banks beat PSBs on deposit growth in Q1FY26, per provisional data

Nonetheless, tepid growth in current and savings account deposits has sustained in the April-June quarter.

Gross NPA of 46 banks may marginally rise to 2.5% by March 2027: RBI Financial Stability Report

Schedule commercial continued to record improvement in their asset quality, with the gross NPA ratio and net NPA ratio declining to multi-decadal lows of 2.3 per cent and 0.5 per cent, respectively.

PSU bank chiefs see 52-66% y-o-y jump in FY25 salaries

In FY25, state-owned banks’ profitability rose sharply due to higher income from lending, treasury gains and lower provisioning for bad loans.

India is the only market with falling bank employee productivity and decreasing operating leverage: BCG’s Saurabh Tripathi

While Indian banks are benefitting from emerging trends like mutual fund distribution and insurance sales, much of the fee income is volume-driven and not rooted in differentiated, high-value services, he said.

Uday Kotak’s stark warning and what it means for banks

India’s banking sector is facing an unusual dilemma—one that threatens profitability and long-term sustainability. With borrowing costs exceeding lending rates, banks are caught in a tight spot, struggling to maintain their traditional business models.

RBI starts industry-wide review of derivative positions after IndusInd Bank fiasco

The RBI wants to ascertain if more banks are in non-compliance of its derivative trade rules and also wants to compliance on the treasury front

Private banks more successful than PSU banks in attracting deposits this fiscal

A lower deposit growth this fiscal has meant that PSU banks have lost the deposit market share by 10-70 basis points (bps) on-year, the IIFL Capital report said.

MC Exclusive| Banks said to request RBI to defer implementation of LCR norms

Draft norms for management of liquidity by banks are due for finalisation by new RBI governor Sanjay Malhotra, and the original schedule called for them to take effect from April 1.

Banks turn innovative to retain depositors as liquidity tightens

Banking sector's liquidity has reduced from Rs 1.26 lakh crore surplus to Rs 2.22 lakh crore deficit in the past six months

Banks' Q3FY25 Outlook: Brokerages see weak earnings amidst slow loan growth, pressure on NIMs

Profit after tax of state-owned and private banks are expected to grow in the range of 10-70 percent in Q3FY25. Some banks are expected to report a fall.

Banks’ treasury income to remain muted in Q3 on narrow yield movement of govt securities

The yields have moved in a narrow range due to low demand from foreign portfolio investors and stable domestic conditions. Further, sluggish growth and widened merchandise trade deficit, and rising US Treasury yield kept yields on government securities in the tight range.

Loan write-off by banks hits 7-year low in 2024 on better asset quality

Even though the total write-offs have fallen to seven-year lows, it remains over three times higher than it was before AQR

Banks moves a few loans from EBLR to fixed rates in anticipation of 25 bps rate cut 

Banks are bracing for a minimum 25 bps rate cut in the February 2025 policy. Retail loans not mandatorily required to be priced on external benchmark rates are being repriced as fixed rate loans by banks to protect their profitability.

Banks' SMA-2 loans rise in Q2FY25 even as overall asset quality improves

Even though few banks have seen an increase in SMA-2 loans, the asset quality of most banks have improved in the reporting quarter.

Fall in yields on G-sec aids banks' treasury gains in Q2FY25

Yield on the government securities, especially 10-year benchmark fell by around 25 basis points in the second quarter of FY25. According to Bloomberg data, yield on 10-year benchmark bond stood at 7.011 percent on July 1, as against 6.750 percent on September 30.

RBI’s latest penal charges norms hurt PSU banks' interest income by 9-11 bps

While most PSU banks guided for a dent in profitability owing to this reason, impact on private banks could not be ascertained as most private players did not share data on this front. 

PSU banks outshine private banks in Q2FY25 as profitability, asset quality improve

In the July-September quarter, private banks reported better net interest income and margins, as compared to their state-owned peers because of higher impact felt by the latter due to penal charges norms of the RBI, which were implemented earlier this year.

Private banks trump state-owned peers on return on assets despite weak show in Q1FY25

RoAs of private banks was in the range of 1.70-2.40 percent, while that of PSU banks was 0.70-1.13 percent in Q1. That said, in terms of ROE, state-owned banks fared better than their private peers.

RBI’s draft LCR norms to increase SLR demand, lowers NIMs

IIFL Securities report also said that the draft norms could lower the banks LCR ratio by 12-18 percent from the current levels.

India’s banks know climate is their biggest threat

They say global warming is now the top contributor to systemic risk. So why aren’t regulators moving faster?

What the new government must do to make public sector banks world-class

The Indian banking system is in a good place and this is the best time for the government to fix niggling issues

Banks may hike lending, deposit rates if credit growth remains strong post monetary policy, budget

Per RBI data, the weighted average lending rate on fresh rupee loans of scheduled commercial banks was 9.55 percent in April 2024, compared to 9.37 percent in March 2024.