Page 5 - Indian Banking Sector
NBFCs to rely more on funding from banks, cost may rise, says report
Non-bank finance companies (NBFCs) are likely to rely more on banks for their funding requirements as interest rates are hardening in the capital market, says a report. As the sector moves towards banks for meeting its funding requirements, smaller NBFCs could witness a sharp increase in their funding costs, India Ratings and Research said in a report. "The borrowings of non-bank finance companies (NBFCs) could get skewed to banks in FY23, given the hardening of rates in the capital markets," the agency said in a report on Wednesday. The shift in the NBFCs' funding mix in FY23 will be driven by a rise in the proportion of short-term funding by way of commercial papers and debenture funding getting replaced by bank funding to a certain extent. A huge quantum of borrowings to be raised by large NBFCs would lead to a further increase in the banks' exposure to the sector, and small NBFCs thus could face crowding out, the report said. The agency said with the rise in interest rates, ..
 "NBFCs to rely more on funding from banks, cost may rise, says report")
Banks may incur Rs 13,000 cr MTM losses in Q1 on rising bond yields: Icra
State-owned lenders, which hold large quantities if G-Secs, to face brunt of yield spike
 "Banks may incur Rs 13,000 cr MTM losses in Q1 on rising bond yields: Icra")
Bank of Maharashtra bucks the trend, cuts MCLR by 20-35 basis points
The state-owned lender cut overnight and one-month MCLR by 25 bps to 6.90 per cent and 7 per cent
 "Bank of Maharashtra bucks the trend, cuts MCLR by 20-35 basis points")
TCS beats street estimates with 16.2% Q1 revenue growth; margins disappoint
The consolidated revenue of the IT major grew to Rs crore in the quarter under review from Rs 45,411 crore a year ago
 "TCS beats street estimates with 16.2% Q1 revenue growth; margins disappoint")
PSBs back on growth path as India's economic recovery gains traction
While the impetus to double-digit credit growth was from wholesale lending, retail credit growth continued to be robust
 "PSBs back on growth path as India's economic recovery gains traction")
Economic recovery gradual, uneven amidst global headwinds: RBI report
Corporate sales and profitability increasing and gross NPA of banks is at 6-year low
 "Economic recovery gradual, uneven amidst global headwinds: RBI report")
HDFC Bank to shift payments from core banking, ensure minimal downtime
This would pave way for minimal payments downtime
 "HDFC Bank to shift payments from core banking, ensure minimal downtime")
HDFC Bank to double network in 5 yrs; to add 1,500-2,000 branches annually
The bank proposes to nearly double its network of branches in the next three to five years by opening 1,500 to 2,000 branches every year: CEO Sashidhar Jagdishan.
 "HDFC Bank to double network in 5 yrs; to add 1,500-2,000 branches annually")
Early assessment of banking sector health encouraging: RBI deputy guv
"The asset quality of banks has improved and the gross NPAs and net NPAs of the banks have improved from the pre-pandemic levels," Rao said
 "Early assessment of banking sector health encouraging: RBI deputy guv")
Growth of shadow banks poses threat to financial stability: RBI report
Balance sheet expanded but asset quality deteriorated, says RBI report
 "Growth of shadow banks poses threat to financial stability: RBI report")
Dhanlaxmi Bank's Q4 net profit jumps over four-fold to Rs 23 crore
Private sector lender Dhanlaxmi Bank on Thursday reported over four-fold jump in its net profit at Rs 23.42 crore in quarter ended March 2022, on fall in bad loan ratio as well as interest income
 "Dhanlaxmi Bank's Q4 net profit jumps over four-fold to Rs 23 crore")
Please change the definition of 'fraud', bankers to urge RBI: Report
All the high-street bank CEOs decided to make a representation to RBI at a meeting to discuss issues faced by the lenders
 "Please change the definition of 'fraud', bankers to urge RBI: Report")
DCB Bank March quarter net profit jumps by 44.87% to Rs 113 crore
Private sector lender DCB Bank on Saturday posted a 44.87 per cent rise in its net profit at Rs 113 crore for the quarter ended March 2022
 "DCB Bank March quarter net profit jumps by 44.87% to Rs 113 crore")
Axis Bank's shares tumbled over 5% on Friday after earnings announcement
Shares of Axis Bank tumbled over 5 per cent in early trade on Friday a day after the company reported a 49.77 per cent jump in its consolidated net profit for the March quarter.
 "Axis Bank's shares tumbled over 5% on Friday after earnings announcement")
Indian banking in pink of health but what next?
Banks are caught in their own narrative: credit growth. Soon, one may see bubbles in certain pockets.
 "Indian banking in pink of health but what next?")
Gamechanger? Private equity is set to play a bigger role in Indian banks
Whichever way you look at it, a PE wave is set to enter banking
 "Gamechanger? Private equity is set to play a bigger role in Indian banks")
FM Nirmala Sitharaman asks banks to be more customer-friendly
The minister also made it clear that banks do not have to be lenient on credit underwriting standards by taking any adverse risks on a proposal
 "FM Nirmala Sitharaman asks banks to be more customer-friendly")
SBI Q3 net profit jumps 62% to Rs 8,432 cr, asset quality improves
Lender posts highest quarterly profit in Q3FY22, sees improvement in interest margins
 "SBI Q3 net profit jumps 62% to Rs 8,432 cr, asset quality improves")
Despite privatisation of PSU banks, low-cost banking needs digital approach
The scope of banking is much more than can be read from the current rate of credit growth to industry, which has only picked up to 4.1% in October 2021 from a contraction of 0.7% a year ago
 "Despite privatisation of PSU banks, low-cost banking needs digital approach")
City Union Bank's net profit rises 15% to Rs 182 crore in Sept quarter
The bank on Friday reported a rise in its net profit
 "City Union Bank's net profit rises 15% to Rs 182 crore in Sept quarter")
