SBI chairman Dinesh Khara said higher risk weights will have 0.02-0.03% impact on its net interest margins in December quarter but better picture to emerge in next quarter.
Sustainability of credit growth, deep interconnectedness of NBFCs with banks, high pricing of loans by microfinance institutions and overreliance on analytics are areas of concern, said RBI Governor Shaktikanta Das.
Having a high credit card portfolio, normal impression would be that RBL Bank’s margins would be deeply impacted; CEO Subramaniakumar does not think so.
Bank of Baroda plans to raise Rs 5,000 crore through tier-II bonds and Rs 10,000 crore through infrastructure bonds.
A macro-prudential step aimed at making unsecured lending costlier; demand to be hit but impact on overall consumption to be fairly limited.
The impact of the increased risk weight on personal loans, including credit cards, will be 55-60 basis points, SBI chairman Dinesh Khara said.
Mobilising CASA deposits, protection of margins at 3%, reduction of NPAs, increasing yield on advances and aggressive recovery target. This is how CEO Manimekhalai wants Union Bank of India to strategically move in FY24 with operating profit the key pillar.
SBI may see lending margin get compressed by 3-5 basis points but has no worry on unsecured loans turning bad; to build CASA focus, with more emphasis on current accounts.
Growth in unsecured loan segment to remain strong even if RBI increases risk weights for such lending.
Bank of Maharashtra retains top spot among public sector lenders in loan and deposit growth in percentage terms during Q2 of current financial year.
State Bank of India’s operating profit fell 8% YoY in September 2023 quarter, mainly due to higher provision for a proposed wage hike and pension provisions.
More than 97% of Rs 2,000 banknotes have returned to banking system; only about Rs 10,000 crore worth of such notes still with public, says RBI.
The decision by State Bank of India to accept slightly higher-than-expected yields at its Tier-II bond sale on Wednesday is likely to push up the cost of borrowing for other lenders.
RBI Governor Shaktikanta Das also said India’s GDP number for second quarter will surprise everyone on the upside.
IDFC First Bank’s net interest income grew 32% YoY to Rs 3,950 crore in September quarter; net interest margin rose to 6.32% from 5.83% a year ago.
