STATE RUN BANKS
D-St record run continues! Sensex rallies 300 pts; Nifty tops 24,300 as IT, banks lead charge
From the Sensex pack, ICICI Bank, HCL Tech, and M&M opened up to 1.5% higher while HDFC Bank, HUL and IndusInd Bank opened lower by up to 1.3%.
PSBs on the margins in credit cards, but NPAs ahead by a wide margin
Public sector banks in India are navigating the credit card market, facing challenges with high NPAs. The focus on tier-II and tier-III cities is driving credit card sales, with State Bank of India and Bank of Baroda leading in card spending through subsidiaries. Specialized skills and appealing features are crucial for success, particularly in attracting younger consumers with modern products and reward points.
For people's man Challa Sreenivasulu Setty, the challenge is to take high-flying SBI to newer heights
Challa Sreenivasulu Setty's upcoming role as the chairman of State Bank of India follows a period of remarkable growth under Chairman Khara's leadership, marked by a substantial increase in the bank's stock price and improved asset quality.
Banks told to stay vigilant amid intel on cyberattack threat
Apart from continuously checking network activities and server logs to detect malicious intrusions, banks will have to monitor critical payment systems such as SWIFT (the messaging system to confirm cross-border fund transfers), card network (which facilitates card payments), the online local fund transfer frameworks RTGS, NEFT and UPI, the real-time payment system.
Quant Mutual Fund crisis: How NAVs have been impacted since Sebi investigation
Investor concerns arise as front-running case impacts Quant Mutual Fund. Despite NAV declines in Quant Healthcare Fund and Quant Commodities Fund, stability is maintained with rising NAVs of Quant ESG Equity Fund and Quant Focused Fund.
Bank of Maharashtra to issue tier-II bonds, bankers say
The bonds have a call option at the end of five years. Here is the list of deals reported so far:
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Farm loan waivers to negatively impact banks' asset quality: Macquarie
Macquarie Capital warned that farm loan waivers could negatively impact banks' asset quality, particularly for public sector banks. States like Telangana, Jharkhand, and Punjab are either implementing or considering such waivers. Macquarie's Suresh Ganapathy highlighted that these waivers create moral hazards and deteriorate credit culture, as even reliable farmers might start defaulting.
Banks draw attention of Govt, RBI to ATM shortage
Banks have alerted the government and the banking regulator Reserve Bank of India about shortages in automated teller machines (ATMs). They have also advocated for clearer procurement norms through the government e-marketplace (GeM) portal. Industry insiders mentioned that the initial low capacity issue is linked to the 'Make in India' guidelines implemented in FY20. Vendors took time to establish operations in India, contributing to the supply constraints.
Rupee ends stronger on likely inflows, state-run banks' dollar sales
The rupee rose after drifting in a 10 paisa range last week, with multiple interventions by the Reserve Bank of India that prevented it from falling to its lifetime low of 83.5750, hit in April
Rupee ends flat; state-run banks' dollar sales aid, forward premiums slip
The Indian rupee closed nearly unchanged on Thursday as pressure due to dollar demand from local corporates was blunted by state-run banks' dollar offers, likely on behalf of the Reserve Bank of India, traders said.
State Bank of India to raise up to $3 bn via debt in FY25
State Bank of India, the country's largest lender, has approved raising up to $3 billion via debt in the current financial year. The funds will be raised in one or more tranches through a public offer or a private placement of senior unsecured notes denominated in U.S. dollars or another major foreign currency. The purpose of the fund raise was not specified. This move comes as Indian banks are bolstering their capital base to meet increasing loan demand.
Public sector banks pin hopes on new Govt for higher PLI for employees
State-run banks are optimistic about a more lucrative performance-linked incentive (PLI) for employees and are advocating for a five-day banking week as a new coalition government takes charge. Bank unions and employee associations seek a review of the current PLI scheme, introduced in 2020, which currently offers up to 15-days salary for growth exceeding 15%. Recent wage settlements have included a 17% salary increase and proposed a five-day week, pending government approval. Banks' cumulative profit exceeded ₹1.4 lakh crore in FY 2024.
Rupee falls most in over a year as vote count shows narrower win for Modi-led alliance
Traders said the Reserve Bank of India (RBI) likely stepped in to limit the rupee's decline. State-run banks were spotted offering dollars near 83.50 levels, likely on behalf of the RBI. The sales were intended to plug likely outflows instead of pushing the dollar-rupee pair lower, a foreign exchange trader at a large private bank said.
Rupee falls most in over a year as vote count shows narrower win for Modi-led alliance
The Indian rupee slumped on Tuesday after vote counting trends signalled that Prime Minister Narendra Modi's Bharatiya Janata Party-led alliance would win a narrower majority than was expected, spurring a selloff in local equities.
View: Bye, Bye PSUs, Capex Plays
State-owned companies' valuations, capital expenditure beneficiaries, and Aatmanirbhar supporters face a downturn post electoral results, impacting markets. Midcap and smallcap indices plummet over 10% amid fears of excessive valuations. The market's euphoria pre-elections led to inflated valuations, especially in the defense sector.
Banks want to regain power to issue lookout notices, to move Finance ministry
Banks primarily issued LOCs to fraudulent borrowers and wilful defaulters - who they suspected could run off to take the residency or even citizenship of another country. However, last month, the Bombay High Court struck down the powers of chairmen, managing directors and CEOs of all public sector banks to issue LOCs on the grounds that the 'right to travel abroad' cannot be taken away by an executive action and the powers given to bank chiefs is arbitrary and unreasonable.
Indian rupee closes little changed ahead of key US CPI data
The Indian rupee sidestepped gains in its broader Asian peers to end barely changed on Wednesday, as traders awaited the U.S. consumer inflation data for cues on when the Federal Reserve may kick off rate cuts.
Rupee inches up on foreign banks' dollar sales, uptick in Asia FX
The dollar index was down 0.1% at 104.9, while most Asian currencies rose. The offshore Chinese yuan was up nearly 0.2%, while the Philippine peso was up 0.4%, leading gains.
Rupee closes little changed, state-run banks' dollar offers cap downside
The Indian rupee ended mostly unchanged on Tuesday as dollar sales from state-run banks aided the local unit which has remained under pressure over the last few sessions amid elevated outflows from equities.
Rupee ends flat as foreign banks' dollar buys eat into uptick
The rupee ended at 83.5075 against the U.S. dollar, barely changed from its previous close at 83.5175. The currency had risen to a high of 83.4475 early in the session, before shedding some of the gains.
State-run cos thriving under PM Modi's leadership: FM Nirmala Sitharaman
A high-level expert panel on floor wages in India is set to re-examine the wage rates finalised earlier, considering minimum wages notified by all states across three categories. The panel, led by SP Mukherjee, will hold its final meeting on May 27 and submit its report to the new government by June 2024. The three-year term of the expert committee, established in 2021, will end on June 30, 2024. The report is expected to outline a roadmap for periodic review of floor wages based on updated data sets and methodology changes.
Rupee ends little changed; forward premiums inch up
The Indian rupee closed nearly flat on Wednesday as expectations that the Reserve Bank of India would likely intervene to cap a sharp weakness supported the local currency despite a decline in its Asian peers.
Paytm market cap nears $2.5 billion; state-run banks turn to GenAI
Paytm’s market capitalisation is down to nearly $2.5 billion after a ninth straight session of declines on the BSE.
Rupee ends flat as state-run banks' dollar sales offset fall in Asian peers
The rupee closed at 83.5075 against the U.S. dollar, against 83.4875 in the previous session. It hovered in a tight band of 83.4775 and 83.5175 during the session.
PSBs set to develop road map for deploying GenAI systems
According to sources familiar with the matter, state-owned banks are preparing to devise a comprehensive strategy and roadmap for implementing generative artificial intelligence (GenAI) systems. Pilot projects are slated for launch within the current fiscal year.
Rupee ends weaker pressured by oil cos' dollar buys, forward premiums inch up
The Indian rupee ended lower on Monday as dollar demand from local oil companies and other importers, pressured the local currency even as most of its Asian peers gained.
Rupee ends higher on inflows, dollar sales by state-run banks
The currency had dropped to a record low of 83.5750 on Friday but has since recovered modestly helped by the central bank's intervention and as fears of escalation in the Middle East conflict ebbed.
NBCC to set up shadow lender to help save over $100 mn
India's state-run NBCC plans to establish its own NBFC to reduce borrowing costs for infrastructure projects, potentially saving $108 million over two years. The company's board discussed the proposal in March, aiming for approval from the new administration post-elections. NBCC eyes RBI license; past attempts to set up NBFC failed.
Public sector banks told to spell out 3-year business plans by March-end
The business plans will cover strategies to increase low-cost deposits, raise capital, resolve bad loans, improve cybersecurity and undertake financial inclusion outreach, said a senior government official.
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