SBI's gross non-performing loans jump to 5.15 per cent from 4.19 per cent
Six public sector banks have been identified as having a particularly problematic housing loan portfolio.
Currently, banks are closed every second and fourth Saturday of a month. Why shouldn't they be shut every Saturday? When most customers carry their banks in their pocket (the app on the mobile phone), there is no need to keep banks open on Saturdays, argues Tamal Bandyopadhyay.
In his address at a conference of state secretaries, Rajan stressed the need to strengthen state-level coordination committees by ensuring participation, conducting meetings more frequently and sharing quality information among all stakeholders, including state government agencies.
Rating agency Care Ratings said the gross non-performing assets ratio of domestic banks will increase to 4.5 per cent by March 2014 and impact the profitability by up to 30 per cent.
The Reserve Bank on Thursday proposed tighter norms for treatment of wilful defaulters under which banks and other lenders will be required to examine all accounts with outstanding amount of Rs 25 lakh and more to see if the borrower is deliberately not repaying the loan. The central bank has issued a 'Draft Master Direction on Treatment of Wilful Defaulters and Large Defaulters' on which comments have been invited till October 31. According to Reserve Bank of India (RBI), the draft Master Direction expands the scope for regulated entities which can classify borrowers as wilful defaulters and broadens the definition of wilful default.
The benchmark Nifty and Sensex could see another 8-10 per cent from the current levels, said HDFC Securities in its outlook for equity markets in 2024. The brokerage said that the market movement in the next year will not be linear, and there will be more volatility. When asked about the market reaction to the General Elections in 2024, Dhiraj Relli, managing director and CEO of HDFC Securities, said more than the outcome of the elections, the market movement in the next three to four months will decide the market trajectory post elections.
Moderate credit growth at around 22 per cent and relatively higher deposit growth has placed the liquidity situation of banks in more comfortable zone.
There has been a "sharp decline" in collection efficiencies in retail asset pools across asset classes in May due to the second wave of the pandemic, with microlenders witnessing a dip of up to 20 per cent, a report said on Monday. "ICRA has observed a sharp decline in the collections of its rated securitisation transactions in April 2021 (i.e. May 2021 payouts), following the rise of COVID-19 cases and imposition of lockdowns/movement restrictions which has impacted the operations and collection activities of the NBFCs and HFCs," the report from domestic rating agency ICRA said. A major part of the country was undergoing localised lockdowns till May-end in the second wave, which saw new cases top 4.14 lakh and resulted in over 4,500 deaths daily at its peak.
Risk aversion leading to 'lazy banking'; lenders prefer govt securities
'Factors such as working professionals seeking better lifestyles, traditional housing challenges, community and networking, and urban migration for jobs are driving the growth in the co-living segment.'
Analysts had on average forecast a net profit of 23.21 billion rupees, according to Thomson Reuters data.
'India has formed tremendous resilience and still a strong growth.'
Rating agency Fitch on upgraded outlook of 10 financial institutionals, including SBI, ICICI Bank and EXIM Bank of India to 'stable' from 'negative' earlier following revision in the country's outlook.
If you're a beginner eager to embark on wealth-building journey in the real estate sector, Karan Shetty shares this comprehensive guide on how to get started.
Vrde currently manages about $14 billion globally, and has invested nearly $500 million in India in the past five years
The 30-share Sensex ended 50 points lower at 21,143 and the 50-unit Nifty was down 23 points at 6,291.
These schemes are a good choice for investors contemplating a large investment in equity funds. Instead of investing all the money in one go, they can do so in a staggered manner by parking it in these schemes and then transferring it to equity mutual funds through a systematic transfer plan.
ICICI Bank, HDFC Bank and Axis Bank reported healthy loan growth and asset quality.
Superseding the boards of two non-banking financial companies (NBFCs) in the Srei group will neither create liquidity challenges for sound entities, nor build systemic crises because the markets have factored in the problems with the Kolkata-based firms. Such regulatory steps will help in making the NBFC space more robust, bankers and market experts said. The action should have begun earlier because the Reserve Bank of India (RBI) had done a special audit last financial year and asked the group to make provisions for assets considered stressed, analysts said.
Moody's rates a total of 15 public sector and private sector banks, which together accounted for about 66 per cent of the banking system's estimated total assets on March 2012.
Even as concerns over PSU Banks' asset quality and growth rates remain, there are few that offer a favourable risk-reward equation.
HDFC Bank was the top gainer in the Sensex pack, rallying over 4 per cent, followed by SBI. IndusInd Bank, ICICI Bank, Axis Bank and HDFC were also among the gainers. NSE Nifty soared 269.25 points to 15,175.30.
'Investors need to expect steady returns over the next one to two years with bouts of high volatility.'
Banks are in need of government support to manage the stressed assets
Fondly remembering the contribution of retiring members from the Rajya Sabha, Chairman Jagdeep Dhankhar on Thursday said the wisdom shared by them would be greatly missed and their departure would leave a void.
It appears the two banks are now convinced that increasing their credit card portfolios will not lead to significant erosion in asset quality.
Mark-to-market risks to the Indian banking sector are limited and manageable, says RBI
Besides financials, shares of telecom, IT, auto and pharma were in demand.
Conceding that there has been risk aversion among the lenders stemming from their rising asset quality concerns, the Governor said banks should lend to productive sectors, notwithstanding the importance of asset quality, by being discerning.
HDFC Bank's 12-month forward price-to-book ratio is estimated to be the highest among 166 large and mid cap banks in Asia Pacific.
Global ratings agency Moody's on said it has a "negative" outlook on the country's banking system due to concerns over asset quality and the high interest rates.
State-run lenders will take a lead in creation of the bad bank, but the sick asset resolution platform needs the support of private banks and other lenders to be successful, State Bank of India managing director Swaminathan J said on Thursday. If all lenders come on board, the National Asset Reconstruction Company (NARC) announced in the budget will be able to aggregate 100 per cent of a sick company's outstanding loans, which shall ultimately lead to better resolution of the asset quality stress for all. The government is yet to announce the specific contours of the NARC or the bad bank and has also only said that it is willing to provide some sovereign guarantee to help the platform.
Bankers are confident that unlike the last time, there would not be significant erosion in asset quality, since their expansion strategies are backed by rich information on borrowers' credit histories.
International credit ratings agency Moody's Investors Service changed its outlook for India's banking system to negative from stable due to concerns that an increasingly challenging operating environment will adversely affect asset quality, capitalisation, and profitability.
Assuming we still have a Modi-led majority government after May 2024, there is no guarantee that reforms will move at anything more than a snail's pace, though we must be thankful even for that, notes R Jagannathan.
Chidambaram also asks these not to rush for bulk deposits to bloat balance sheets.
The report said resilience of the banks has increased with a sharp improvement in the provision coverage ratio to 60.6 per cent in March 2019 from 52.4 per cent in September 2018 and 48.3 per cent in March 2018.
Rishi Piparaiya lists three simple steps to manage the impact of rising prices and protect your financial future
Following alterations in the tax structure, mutual fund (MF) schemes that invest in overseas securities have experienced a sharp decline in inflows. In the first five months of 2023-24 (FY24), international MF schemes have received an average monthly gross inflow of only Rs 270 crore, compared to Rs 490 crore during the same period in the previous year. This decline persists despite nearly all fund houses opening subscriptions for such schemes, with higher redemptions creating headroom for fresh investments.
