Punjab National Bank and Canara Bank join SBI and Bank of Baroda in the Rs 30 lakh crore total business club. Read the state-run banking sector tier breakdown.
Despite RBI’s 25-basis-point repo rate hike, banks may take time to raise FD rates as they have huge stock of FCNR(B) deposits; Bajaj Finance raises rates and other NBFCs are expected to follow suit.
New CEO Anup Bagchi will need to resurrect HDFC Bank’s shares, accelerate loan growth, revive low-cost deposits and expand margins even as his former employer bank closes in on the leader.
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.
