Don’t expect further fall in NIM as interest rates on deposits have peaked and yield on advances is set to improve, says SBI chairman CS Setty.
Canara Bank’s Q2 net profit came on the back of higher interest income and lower bad loan accretion; net interest margin reduced to 2.88% from 3.02% a year ago.
Punjab National Bank posts Q2 net profit of Rs 4,303.5 crore, its highest in 16 quarters; global business rises 11.93% to Rs 25,20,246 crore and CD ratio improves to 72.82%.
Current conditions present variables for banks which are tough, said Axis Bank CEO Amitabh Chaudhry; deposit rates are not coming down and some asset quality is worsening in unsecured loans.
NIM rises to 3.98% in Q2 from 3.88% a year ago; Bank of Maharashtra MD Nidhu Saxena says net profit for FY25 is expected to cross Rs 5,000 cr.
RBI has proposed that banks should be barred from using group entities to circumvent regulations applicable to them.
Excluding food prices from headline inflation would erode the ‘great faith’ of people in the RBI, said Raghuram Rajan.
The sale is part of HDFC Bank’s exercise to lighten its credit load amid regulatory pressures on the industry; buyers are about half a dozen state-owned banks.
Punjab National Bank allocates about 48.19 crore equity shares at an issue price of Rs 103.75 per share.
Federal Reserve cuts interest rates by 50 basis points. But India’s own rate-cutting cycle will start only when RBI feels inflation has been durably tamed to reside in the target zone of 4%.
The 6.75% interest rate offer is for deposits with tenures ranging from seven to 180 days; there is no penalty for early withdrawal.
HDFC Bank is under regulatory pressure to improve credit-to-deposit ratio which has worsened post-merger; is in talks with Barclays, Citigroup, JPMorgan Chase and ICICI Bank to offload Rs 8,400 crore in loans.
The move from collaterals to cash flow-based lending will give enough traction to the growth of micro enterprises to become small and small to become medium, says SBI chairman CS Setty.
Indian Banks’ Association likely to ask RBI to reduce amount of additional funds lenders will need to set aside against some retail deposits.
Competition for deposits expected to continue for some time, says SBI chairman CS Setty; rather than rates, bank to focus more on customer service and wider network to drive deposit growth.
