Page 62 - Banking Sector

Judiciary to the rescue of banks?

For past three months, the government, banks and corporate borrowers have been pleading with the RBI to relax the norms laid down in its resolution framework

Bad news from banking sector now taking a toll on Indian economy and Modi

The broad uncertainty hovering over the financial sector comes just as the economy was showing early signs of recovering from a disruptive tax system overhaul and the 2016 cash ban

The deepening crisis in India's banking sector

A financial crisis always affects economic growth for long periods. Attempts to shut the stable door by eliminating LoUs etc will simply raise the costs for exporters

Decline in defaults on credit given to women-led self-help groups

Data showed that even after the NRLM change, there were wide regional variations in the extent of loans given to women-led groups turning bad

Letter to BS on attitudinal change across the banking sector in India

Profit maximisation needs to be in the central theme, and various business combinations must be based strictly on profit

Invest 5-10% in a banking sector fund

Ensure that mutual fund's portfolio includes all three players -private sector banks, public sector banks and NBFCs

Business stresses in Modi's backyard spur India's great bank rescue

The series of electoral tests comes as the economy has slowed to its slackest pace of growth in three years

Time to review banking sector valuations

Private sector banks saw credit growth averaging out at around 10-11% in 2016-17

Q1 FY18 results: What to expect from the banking sector

Impact of NCLT provisions may be seen marginally in Q1 and may largely flow to next few quarters

Banking sector: More of a crisis than opportunity

There are some positive signals, as NPAs are growing at slower rates and interest costs have fallen

SBI chief Bhattacharya earned Rs 2.37 cr less than ICICI Bank chief in FY17

While Chanda Kochhar got a pay of Rs 2.66 crore, Arundhati Bhattacharya took home only Rs 28.96 lakh

Banks to take a haircut for insolvency of non-performing assets

49 indebted firms have debt of Rs 2.8 lakh cr, backed by Rs 1.67 lakh cr of fixed assets

Banks' asset quality to improve after FY18: Icra

PSBs are expected to report relatively healthy return on equity at 10-12 per cent for FY18

Why banks don't need as many branches as they have right now

UPI as revolutionary an idea as ATMs were 20 yrs ago, says Stuart Milne, Head, HSBC India

Despite automation, banking to see big rise in hiring

Every year, around 12,000-15,000 people are recruited in PSBs in both clerical and officer positions

Bank unions take realistic view, sign MoU on turnaround plan

Nearly ten banks have signed an MoU with bank unions to formalize a turnaround pact. Earlier, unions had laid out the condition that they would sign the MoU only after the details of turnaround plan was discussed with them. Deviating from the earlier stand, the unions have now signed an MoU with a clause stating employees and officers' union would be consulted before implementing the plan. Redefining the age-old management and union relationship, while unions are becoming more accommodative, banks are now more transparent in their dealings with the unions. Earlier bank unions had said that the turnaround would be signed only after the turnaround plan was shown to them.In the recent days, Bank unions have adopted a realistic stand towards the changing dynamics of the banking sector.SBI Caps is in the process of formulating the turnaround plan for the banks "In the last week of March unions signed the MoU for implementing the turnaround plan, which will be discussed with us before ..

Band-aid solution

Avoid linking bank employee benefits to recapitalisation

Banks must remain prudent about NPAs, says Pranab Mukherjee

President reminds bankers of their sacred duty to safeguard the money of those who have reposed trust in them

Have the banking sector's losses bottomed out?

While gross non-performing assets (NPAs) of the Indian banking system are expected to rise further in this financial year, the pace of deterioration is likely to moderate, as banks, prodded by the Reserve Bank of India (RBI), were aggressive in recognising bad loans in FY16.According to a new report by India Ratings and Research, fresh slippages to the non-performing loans category are likely to be a minimum of 1.5 per cent of total bank credit in the current financial year. In large part, these slippages will come from loans turning out in the Infrastructure and construction sectors, followed by the power sector. But, it is possible that actual slippages may turn out to be higher if companies find it difficult to service loans that were restructured in the earlier financial years. At the end of FY16, gross NPAs in the banking system stood at 7.2 per cent.Banks' credit costs are likely to remain high, compared to the previous financial year, although these are expected to moderate. Cre

Corporate leverage in decline, banking strain remains: DBS

Leveraged firms continue to hive off their non-core businesses or are in midst of a debt restructuring exercise with banks