Banks show strong loan and deposit growth in Q3; HDFC Bank and Yes Bank are only lenders who had deposits outpacing credit growth in December quarter.
Will credit growth sustain at the same pace in 2023? Will liquidity tighten as deposit growth lags behind? Will we see a rate hike cooling?
Gross NPAs of commercial banks dropped to seven-year low of 5% and net NPA ratio contracted to decade low of 1.3% in September 2022, RBI says in its Financial Stability Report.
Banks must ensure due diligence and robust credit appraisal to limit credit risk amid global headwinds, RBI says.
Empirical evidence suggests that a build-up of concentration in retail loans may become a source of systemic risk, the RBI warned.
Banking fraud incidents have increased but the amount involved have more than halved in FY2021-22, RBI data showed.
Punjab National Bank will now offer a maximum interest rate of 7.25% for general public, 7.75% for elderly individuals and 8.05% for super senior citizens on deposits that mature in 666 days. The increase is by 95 basis points.
HDFC Bank plans recovery of credit card biz after RBI lifts ban in August last year; is in final stages to develop new digital credit card to pull in younger customers.
ICRA upgrades outlook on banking sector to ‘positive’ from ‘stable’ on expectation that there would be healthy loan growth through next fiscal, along with benign asset quality pressures.
IDFC First Bank waives charges on number of customer-centric services such as cash deposits, withdrawals, demand drafts, IMPS and SMS alerts.
After HDFC Bank and SBI, ICICI Bank has raised interest rates on fixed deposits under Rs 2 crore with effect from 16 December; the hike has come a month after the last revision.
Shorter-duration MCLRs are in range of 7.85-8.30%; MCLR for two years is at 8.50% while for the three-year tenure it stands at 8.60%.
Axis Bank offers interest rates that range between 3.5% and 7% for general public on deposits maturing in 7 days to 10 years.
HDFC Bank hikes most of its retail fixed deposit rates by 40-75 basis points, with effect from 14 December.
State Bank of India has raised interest rates on fixed deposits ranging from 25 basis points to 65 basis points, with effect from 13 December.
