IDFC First Bank MD & CEO V Vaidyanathan believes that none of the stories on the bank’s projected five-year growth in deposits, loans, profitability and bad loans have fundamentally changed.
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.
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.
