IndusInd Bank is “doing well on the whole” now and the resignation of managing director and CEO Sumant Kathpalia should be seen as a "good enough" step from an accountability perspective, said RBI Governor Sanjay Malhotra.
RBI’s higher-than-expected cut in interest rate by 50 bps is set to bring down cost of loans, stimulate domestic consumption, support investment cycle, boost credit growth and lower earnings from fixed deposits.
Three successive repo rate cuts ensure deposits across tenures will head south; CRR cut by 100 bps to 3% will provide ample liquidity and also push FD rates down.
Three trends mark SMBC’s agreement to buy 20% stake in Yes Bank. Timing turns favourable as mid-sized IndusInd Bank struggles; RBI more open to foreign investments; trade unions go weak.
IndusInd Bank faces an uphill task as it searches for a new chief executive to resurrect its financials, stung by accounting discrepancies, frauds involving employees and loss in investor trust.
Armed with commitment of new capital of Rs 7,500 crore from two marquee investors, IDFC First Bank MD & CEO Vaidyanathan plans scale up; on agenda is raising return on equity to 15% and displaying operating leverage.
SBI accounts for over 40% of total earnings of state-owned banks in FY25; as per percentage increase, PNB reports highest net profit growth of 102% while Punjab & Sind Bank comes second.
SBI anticipates loan growth to moderate to 12-13% in FY26 from an earlier guidance of 14-16%; lending margins would also remain under pressure as RBI is expected to cut repo rate further, chairman Setty said.
HDFC Bank’s Q4 net profit rises amid higher NII and improvement in asset quality; deposits see higher growth than credit.
Yes Bank looks to grow its loan book by 12-15% for FY26; expects deposits to grow slightly higher than loans.
ICICI Bank will continue to monitor its unsecured loan portfolio closely; net interest margins could see some impact as RBI has moved to an interest rate-cutting cycle.
Only few private sector banks have responded early to repo cut as deposits lagging behind loan growth is a constraint; RBI’s assurance of liquidity surplus may encourage more banks to cut deposit rates.
RBI expects to keep sufficient surplus in the banking system to ensure policy transmission and is looking at a level of around 1% of deposits, Governor Sanjay Malhotra said.
Accounting lapses in IndusInd Bank or crisis in New India Cooperative Bank are ‘episodes’ and can’t be termed as ‘total failure’, RBI Governor Sanjay Malhotra said.
Amid missed targets, liquidity crunch and market slide, most banks have seen deposits lag behind loan growth in the March quarter.
