Page 3 - Bs Banking Annual

BS Banking Annual 2018: 'Prepare for growth and margin squeeze'

Over the past 10 years, non-banking financial companies (NBFCs) and housing finance companies (HFCs) have grown from being specialist financiers to companies grabbing market share from banks, especially state-owned ones, in the wake of various issues plaguing the banking sector. However, some of that success has come undone recently in the wake of the defaults by Infrastructure Leasing & Financial Services (IL&FS). Top experts discuss the way ahead for NBFCs. Edited excerpts from the Business Standard NBFC Round Table:How do you see the present situation of non-banking finance companies (NBFCs) after the IL&FS problem?Gagan Banga: There is undoubtedly a crisis. Any financial services company should build its business with the realisation that it will go through a liquidity crisis every three to five years, for one reason or the other. This is the fourth crisis in the last 10 years, and the reason and the trigger every time are different. In the 2008 crisis, banks and mutual

BS Banking Annual 2018: A few million users going digital is not enough

The banking technology environment continues to see disruption. Traditional finance was challenged by fintech players like the wallet and payments players or even distribution players selling mutual funds or insurance using technology. Meanwhile, techfins ? technology companies like Google and Amazon getting into finance ? are challenging the incumbents. Leading experts discuss what the future of banking technology will be. Edited excerpts:Has the WhatsApp moment arrived in India? How do you see the fight between fintech and techfin panning out?Nitin Chugh: The WhatsApp moment arrived when we launched the Unified Payments System (UPI), which opened up the payments infrastructure for everybody ? fintech and other players. WhatsApp is yet to arrive in India (in the payments space) but the WhatsApp moment has already arrived. I don?t think there is any fight between fintech and banks, it?s only a perception. What most people are talking about is promoting a collaborative ecosystem.B Madhi

BS Banking Annual 2019: Credit demand is firming up, says SBI chief

There may not be a sharp rise in demand for credit anytime soon, even as some pockets show signs of promise. Can this be sustained?

BS Banking Annual 2017: 'Balance of power shifts from borrower to lender'

Edited excerpts from a discussion at the Business Standard Banking Round Table held in Mumbai

BS Banking Annual 2019: 'Conventional, digital banking will co-exist'

'The divide between rural and urban is slowly reducing and it's largely owing to the way telecom has improved across the country'

BS Banking Annual 2018: Capital: Is it a punishment?

I have started with a question on capital: Why? Well, there has been much discussion in the media about the level of capital banks need to hold ? should the capital adequacy ratio (ratio of capital to risk-weighted assets) ? CAR ? be 9 per cent as per Reserve Bank of India (RBI) norms? Or why not 8 per cent as per Basel norms? Should government-owned banks need to hold the same level of capital as other banks?To discuss this, we first need to appreciate and distinguish between the roles of provisions and of capital. In a sentence, provisions are meant to cover the expected losses whereas capital is meant to capture unexpected losses, beyond the expected losses, at a certain level of confidence.Is the RBI being unfair in asking banks to hold 9 per cent CAR and higher risk weights than what Basel prescribes for some credit ratings? Let me put this in perspective.The Basel capital adequacy norms, under the standardised approach for credit risk capital which India follows, are calibrated a

Financial sector needs to rebuild trust, says YES Bank CEO Ravneet Gill

Edited excerpts from a discussion at the Business Standard Banking Round Table held in Mumbai

BS Banking Annual 2017: Need to empower PSBs, says Arundhati Bhattacharya

Former State Bank of India Chairman Arundhati Bhattacharya says the only way out for public-sector banks is to have a strong board

BS Banking Annual 2019: Banking is a very long-term biz, says USFB chief

Becoming a bank has given us more strength, says Jana SFB MD & CEO Ajay Kanwal

BS Banking Annual 2018: In full flow at IndusInd

When the Hindujas, the promoters of IndusInd Bank, buzzed Romesh Sobti to take over as its helmsman in late 2008, it hardly had any investor coverage worth the name. A tad over a decade on, it?s among the marquee private banks in the country. And for his steady hand on the IndusInd steering wheel, Sobti is Business Standard Banker of the Year for 2017-18, an honour he is receiving for the second time from the publication after being named Best Banker in 2013-14.A closer look at the bank?s book is revealing: It?s still largely corporate at 61 per cent ? as of end-December 2018, the share of large corporates was Rs 50,833 crore or 29 per cent; mid-size came in next at Rs 32,312 crore (19 per cent); and the share of small enterprises was Rs 21,991 crore (13 per cent). The rest was accounted for by the auto finance and consumer finance businesses. But despite the stress in India Inc, and small businesses in particular, the bank?s net non-performing assets to net advances was 0.51 per cent,

BS Banking Annual 2017: Arundhati Bhattacharya, leading from the front

Arundhati Bhattacharya has shown what public sector banks are capable of when they get their act together

BS Banking Annual 2018: The jury gives its verdict

Romesh Sobti, managing director (MD) and chief executive officer (CEO) of IndusInd Bank, is the Business Standard Banker of the Year for 2017-18, a recognition he will be receiving for the second time from the publication after being named the Best Banker in 2013-14.Sobti, 68, was selected unanimously by a high-profile five-member jury headed by former Reserve Bank of India deputy governor S S Mundra. Other jury members were former State Bank of India chairman Arundhati Bhattacharya, ICRA MD and Group CEO Naresh Takkar, IIFL Group Chairman Nirmal Jain, and Ican Investment Advisors Chairman Anil Singhvi.In the first screening, banks with a total asset size of less than Rs 50,000 crore and those that did not report a year-on-year increase in their pre-provisioning profit in the last three years were excluded. With 17 banks from the private and the public sector on the shortlist, the jury members rigorously evaluated a number of parameters ? compound annual growth rate (CAGR) in assets, r

NPA norms may be tougher than Basel's: RBI deputy governor N S Vishwanathan

RBI working on corporate governance rules in line with global standards, says Vishwanathan

BS Banking Annual 2017: Bhattacharya chosen Banker of the Year unanimously

State Bank of India stands out in digital banking, rural inclusion and management of subsidiaries

BS Banking Annual 2018: The worst may finally be over

Anup RoyIn the past few years, bank chiefs have repeatedly asserted ?the worst is over?, only to produce more lemons and sloppy numbers in the next quarter.After a batch of emphatic bank chiefs retired uttering these words, their successors were more circumspect, preferring to say ?we are nearing the end?. They were disappointed too, as Reserve Bank of India (RBI) auditors unearthed more bad debts than the bankers would have wanted their investors to believe.Bankers faced the RBI?s wrath for hiding bad debts, and a few had to leave their positions after getting roughed up by the regulator. Some three years after the central bank started the asset quality review (AQR), bankers are wiser now.?Whenever we use this phrase, usually that quarter is bad with something different. We are now fed up of making this statement,? said Union Bank of India MD and CEO Rajkiran Rai G.It is perhaps ironic then, that though bankers are actually in a position to declare ?the worst is over?, they cannot yet

BS Banking Annual 2019: Tighter norms, coexistence with banks, NBFCs future

The single biggest learning is that percentages after a certain size are not relevant, both on the asset and the liability side, says IndiaBulls Housing MD Gagan Banga

BS Banking Annual 2019: Indian banks safe, say SBI, HDFC Bank chiefs

HDFC Bank MD Aditya Puri and SBI Chairman Rajnish Kumar discuss the present and the future of the industry in a fireside chat

Bandhan Bank stands out at BS Banking Annual 2019 for all-round performance

Ghosh was commended for his deep knowledge of lending, having technology-focused lending operations and keeping the work force motivated

BSD Banking Annual 2017: A new lease of life for public-sector banks

While recapitalisation will put public sector banks back on the growth path, governance reforms will be critical for a genuine turnaround

BS Banking Annual 2017: Bringing about a transformation in banking

Digital payments, blockchain, artificial intelligence and robotics will revolutionise the way banks function and engage with customers