Banks

SVB crisis: How a little-known bank plunged markets globally into

Consider 2023 as a year to invest for long term, says Sankaran Naren

Sankaran Naren, executive director and chief investment officer at ICICI Prudential Asset Management Company, in conversation with Puneet Wadhwa

After a decade in wilderness, Indian banks healthy, but still not cautious

With everything going well, lenders should be turning cautious. But recent full-yr results show an opposite trend: Provisions for future loan losses are beginning to decline. This may not be prudent

Share of Casa in overall deposits at 7-year low of 11.6% by FY23-end

Worse still, Casa deposits' share of incremental deposits has fallen to single digit (6.7%), for the second time in 10 years

Post office saving schemes compete with bank FDs after 3 rate hikes by govt

Post office term deposits, which were fetching lesser returns than bank FDs in the recent past, have again become competitive with the government effecting three back-to-back increases in interest rates on small savings schemes. The return on post office term deposits of two years under the small savings schemes is 6.9 per cent, the same as offered by most banks on deposits of similar maturity. After a series of repo rate hikes by the RBI since May 2022, the transmission to retail deposit rates gathered pace in the second half (H2) of the last fiscal after remaining subdued in April-September (H1) period as banks intensified their efforts to garner retail deposits to fund robust credit growth, a central bank analysis. The Weighted Average Domestic Term Deposit Rate ( WADTDR) on fresh deposits (including retail and bulk) of banks increased by 222 basis points (bps) from May 2022 to February 2023. During H1, banks had focussed on mobilising bulk deposits. This was reversed in H2 wit

Banks sanction Rs 23.2 trn to about 400 mn beneficiaries under Mudra Yojana

Banks and financial institutions have sanctioned Rs 23.2 lakh crore to over 40.82 crore beneficiaries under the Mudra Yojana since its launch in 2015. Pradhan Mantri MUDRA Yojana (PMMY) was launched on April 8, 2015, by Prime Minister Narendra Modi to facilitate easy collateral-free micro-credit of up to Rs 10 lakh to non-corporate, non-farm small and micro-entrepreneurs for income-generating activities. Loans under PMMY are provided by Member Lending Institutions (MLIs) -- banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs) and other financial intermediaries, the finance ministry said in a statement on Saturday. "#PMMudraYojana has played a vital role in funding the unfunded and ensuring a life of dignity as well as prosperity for countless Indians. Today, as we mark #8YearsOfMudraYojana, I salute the entrepreneurial zeal of all those who benefitted from it and became wealth creators," Prime Minister Narendra Modi said in a tweet. Speaking on the occas

Better net interest margins likely to help bottom line of banks in Q4

Net profit of listed commercial banks is projected to grow by 43.6% YoY

It's big vs small as banks square off to avoid new rules after failures

Before the collapse of Silvergate Capital Corp and other regional institutions, bigger banks were steeling themselves for more regulations since Michael Barr took over as the Fed's No. 2 official

Interest from central banks for rupee trade: RBI deputy guv T Rabi Sankar

The stakeholders on either side are getting adjusted to it, said RBI Governor Shaktikanta Das

You make the tea or the tea makes you?

Move over Reserve Bank of India. It's the commercial banks, which are creating money and moving the economy

Embattled Adani Group trumpets stable ties with international lenders

Several of the banks already have business relationships with the group, ties which the conglomerate has previously pointed to as a sign of its strength to counter Hindenburg's allegations

FY23 bank credit growth highest since FY12, up 15%, shows RBI data

Banks were engaged in intense competition by offering higher interest rates on term money to mop up funds

SBI digital services impacted due to tech glitch, resolved later

Earlier in the day some customers complained in social media that they were unable to access net banking, Unified Payment Interface (UPI) of SBI

SBI's online banking services impacted for 'few hours' due to tech glitch

The country's largest lender SBI's online banking services were impacted for a few hours due to a technical glitch on Monday, inconveniencing scores of customers. SBI, which serves nearly a fourth of the over 130 billion Indians, admitted to a "technical glitch" on Monday. Many customers took to social networking sites to voice their concerns of service disruptions. Customers complained of inability to access the bank's 'Yono' banking app and also undertake any banking transactions online during the period while some said that services have been impacted since late last week itself. "We regret to inform you that due to a 'technical glitch', some of our digital services were impacted for a few hours on April 3, 2023. "However, the issue stands resolved, and the digital services are live and restored," the bank said in a late evening statement. Details about the exact issue, services impacted and the total duration of the downtime were not disclosed. In the past, the RBI had penal

Stronger buffers for Indian bank deposits as world faces financial crisis

Customer confidence may improve if recovery time, insurance coverage is better

An amazing and scary month

March was a month for the history books, marked by the collapse of a systemically important financial institution and a bond market wipeout. Caution may be the need of the hour

'Digital Dukaan': Axis Bank launches biz management solution for merchants

Axis Bank in partnership with Visa on Monday launched an app that will empower merchants to accept payments through various digital modes and also enable them to manage their day-to-day business digitally. The app 'Digital Dukaan' has been specifically designed to address business requirements such as accepting digital payments, inventory management and billing, among others, Axis Bank said in a statement. This Android Smart POS application has an in-built camera with LED flashlight that will enable scanning of product barcodes, allow tap and pay option for transactions up to Rs 5,000 and also support other value-added services such as EMI, acceptance of Sodexo card, Buy Now Pay Later, etc, it said. Digital Dukaan will also enable merchants to set up an online store and grow their business effortlessly by creating new channels, the bank said.

Private lender Bandhan Bank adds 50 new branches to its existing network

Private lender Bandhan Bank on Friday said it has added 50 more branches to its existing network of around 1350 others across the country. The majority of the new branches opened are in Bihar, Gujarat and Madhya Pradesh, the Kolkata-based bank said in a statement. It said that the spread of the new branches is a testament to the bank's commitment to expand its reach across the country and serve the needs of all segments of customers. The bank is also well on its journey of diversification of asset book and geographical presence. It also plans to introduce new products and increase the width of services in the next financial year, the statement added. Chandra Shekhar Ghosh, MD and CEO of the bank, said, "Our country needs a deeper penetration of banking outlets to ensure that everyone has access to banking. Bandhan Bank is committed to being a bank for all and we are invested in increasing our presence to serve all kinds of customers".

SVB lessons

Inflation management versus public debt management - the RBI's two roles are at odds with each other

Bank rules under review in wake of SVB debacle: US Fed official

The Federal Reserve's bank supervisors informed Silicon Valley Bank's management as early as the fall of 2021 of risks stemming from its unusual business model, a top Fed official said on Tuesday, but the bank's managers failed to take the steps necessary to fix its problems. The Fed official, Michael Barr, the nation's top banking regulator, said during a Senate Banking Committee hearing that the Fed is considering whether stronger bank rules are needed to prevent a similar bank failure in the future. Supervisors had rated the bank at a very low rating," Barr said. At the holding company level it was rated deficient, which is also clearly not well-managed. The timeline that Barr laid out for when the Fed had alerted Silicon Valley Bank's management to the risks it faced is earlier than the central bank has previously said the bank was on its radar screen. Silicon Valley's deposits grew rapidly and were heavily concentrated in the high-tech sector, which made it particularly ...