Pressure to dial interest rates down intensifies after GDP growth slows to shocking 5.4%; will inflation at 14-month high of 6.2% be deciding factor as MPC meets amid uncertainty over tenure of RBI Governor Shaktikanta Das?
Among top 10 banks in terms of highest amount of loans written off in FY24, six report increase; Union Bank of India, SBI, Bank of Baroda and Central Bank of India buck the trend.
Share of term deposits in total mix rise to 61.4% in September quarter from 59.8% a year ago, RBI data shows; deposits over 7% interest increase to 68.8% from 54.7%.
Canara Bank MD & CEO Satyanarayana Raju sheds nearly Rs 40,000 crore of low-yielding advances in corporate sector; taps alternative resources to bridge gap between credit and deposit growth and lends at higher cost.
IDFC First Bank MD & CEO V Vaidyanathan believes that none of the stories on the bank’s projected long-term growth in deposits, loans, profitability and bad loans have fundamentally changed.
Banks have seen a surge in gold loans as prices for the yellow metal have soared and the RBI has worried that aggressive lending in this segment can lead to a build-up of bad debt if irregular practices are not corrected.
Aggregate business of public sector banks jump 11% YoY to Rs 236.04 lakh crore in first six months of current fiscal; net profit up 26% to Rs 85,520 crore and bad loans fall.
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.
SBI lowers deposit growth forecast to 10%-11% but retains credit growth guidance at 14-16% for FY25; bank to stay away from deposit rate war and margins to remain stable, says 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%.
IDFC First Bank posts 73% YoY fall in standalone net profit to Rs 201 crore for quarter ended September, mainly due to increased provisions for its microfinance business and a legacy toll account.
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.
