RBI asks NBFCs to broad-base their fundraising to limit reliance on banks; calls for strengthening balance sheets and guarding against frauds.
Indian banking system is facing a widening liquidity deficit, reaching levels last seen in 2016; RBI may provide another round of short-term cash infusion.
RBI Governor Shaktikanta Das explains why interest rate was unaltered, GDP growth revised upwards and inflation forecast retained. Indianbankingnews.com puts his monetary policy speech in Q&A form. Here are the edited excerpts:
IDFC First Bank has launched the First SWYP Credit Card in partnership with Mastercard.
IDFC First Bank’s executive director Madhivanan Balakrishnan has tendered his resignation.
Share of term deposits see sharp YoY jump in September while bank lending to private corporate sector witness 14.9% rise, RBI data shows.
Reserve Bank’s risk weight tinkering will have an impact of up to 0.50% on Bank of Baroda's capital buffers, says CEO Debadatta Chand.
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.
