Fairfax has not taken call yet on future of CSB Bank; have two years to decide whether to sell or merge it with IDBI Bank, says Prem Watsa.
Three bank deals have come on back of cleaner balance sheets, stronger capitalisation and lighter bad loans; two deals are in NBFC sector.
Cabinet approves India’s largest cross-border deal in financial sector; Govt and LIC to sell 30.48% and 30.24% stake, respectively, while retaining 34% holding in IDBI Bank.
Inflation climbs to 5.4% in September from 4.83% in August; economists expect two 25-basis-point rate hikes in Dec and Feb.
RBL Bank’s loan book rises 42% YoY to Rs 1.42 lakh crore in Q2; deposits up 34% to Rs 1.56 lakh crore as lender mops up $3.4 bn in FCNR(B) deposits under RBI’s swap window.
RBI to supply dollars to Indian Oil, Hindustan Petroleum and Bharat Petroleum from 12 October; slashes threshold for unbacked derivative positions from $100 mn to $5 mn.
Banks need to maintain 99% of required cash reserve ratio daily from earlier 90%, effective 16 Oct; RBI’s move aimed at tightening liquidity management.
A day after RBI hiked repo rate by 25 bps, SBI Chairman CS Setty said the tightening of monetary policy will help banks to expand their net interest margins for up to three quarters.
Along with one-time joining bonus of Rs 7.35 crore in equity, Anup Bagchi's potential compensation as HDFC Bank CEO in first year could reach Rs 43.24 crore; annual remuneration of Rs 35.9 cr to consist of Rs 8.97 crore as fixed pay and Rs 26.92 cr as performance-linked variable pay.
Several banks have announced an increase in their lending rates from tomorrow, following the RBI hiking repo rate by 25 basis points. Loans will get expensive, including for home loan borrowers.
Economists expect further tightening of up to 75 basis points to take repo rate to around 6% by end of FY27, if inflation, oil prices and geo-political conditions stay adverse.
RBI Governor Sanjay Malhotra says rupee may be “undervalued” as per many estimates; same day currency falls to 96.85 per dollar, barely above all-time low of 96.96 on 20 May.
HDFC Bank raises $11.5 bn via FCNR(B) deposits under RBI’s swap window; Q2 loan book up 16.3% YoY to Rs 32.2 lakh crore while deposits rise 18.8% to Rs 33.28 lakh crore;
Axis Bank's Q2 loan book rises 22.7% YoY to Rs 13.85 lakh crore; deposits stand at Rs 14.52 lakh crore, up 20.7%.
Kotak Mahindra Bank’s loan book rises 24.7% to Rs 5.77 lakh crore in Q2; deposits up 23% to Rs 6.5 lakh crore.
