RBI Governor Sanjay Malhotra speaks about tools available to absorb excess liquidity, FCNR(B) deposits helping the central bank to earn additional income and reassessing growth-inflation dynamics in next policy.
SBI Chairman CS Setty dismisses concerns raised by Axis Bank head Amitabh Chaudhry about massive FCNR(B) flows leading to abnormal lending; highlights role of AI in banking sector.
Indian banks leave large part of future interest payments on $127.23 bn of FCNR(B) deposits unhedged; RBI's special swap facility is on principal amounts while lenders need to manage interest payments.
Axis Bank chief Amitabh Chaudhry cautions about ‘abnormal lending’ risks from big boost in FCNR(B) deposits; also speaks about RBI rate hike and consolidation in banking sector.
Banking system liquidity surplus jumps to Rs 9.7 lakh crore as of 3 September. RBI has complex task of managing liquidity and overnight rates.
Data centres, renewable energy, manufacturing and urbanisation are driving corporate credit demand; gold loans and borrowers from smaller cities are fuelling retail growth, says Axis Bank CEO Amitabh Chaudhry.
During the week, ICICI Bank, Kotak Mahindra Bank, IDFC First Bank, HDFC Bank and Bank of Baroda raise $4.4 bn.
S&P’s investment-grade rating comes at a time when IDFC First Bank is preparing to raise overseas capital, RBI has opened swap window for FCNR(B) deposits and lender is chasing faster growth.
Recovery from written off accounts stands at Rs 1.83 lakh cr in last 5 financial years, translating to 35.24% of the value. Top five banks account for 70.99% of public sector banks’ loan write-offs. Wilful defaulters owe Rs 2.85 lakh crore to PSBs.
After mopping up $6bn, SBI expects to add $4bn in final two months of RBI’s swap window. Is demand for FCNR(B) deposits slowing amid over-dependence on ME and tax issues in other states? SBI Chairman Setty says flows are more spread out, unlike in 2013.
RBI Governor Sanjay Malhotra says bulk of inflows is through FCNR(B) deposits; dismisses concerns that inflows represent recycling of existing deposits.
Total foreign exchange inflows until 17 July is $20.72 bn under RBI’s three concessional swap facilities; $1.97 bn is via OFCBs and $1.34 bn through ECBs.
PNB’s Q1 net up threefold; to increase focus on low-cost deposits, shedding of low-yielding advances and deployment of AI-powered solutions while mobilising FCNR(B) deposits in FY27.
Stress tests indicate that financial institutions are well-positioned to withstand adverse shocks, RBI Governor Sanjay Malhotra said.
India’s eight public sector banks have added 13,223 employees in FY26, leaving their combined workforce at over 6.28 lakh with State Bank of India (SBI) at the lead.
