Banking
CS Setty gets FSIB approval to head SBI as next chairman
Challa Sreenivasulu Setty has been selected as the next chairman of the State Bank of India (SBI) by the Financial Services Institution Bureau (FSIB). Setty, who has worked at SBI for 35 years, will succeed current chairman Dinesh Khara, who will end his term on August 28.
Government panel recommends Challa Sreenivasulu Setty as next SBI Chairman
"Financial Services Institutions Bureau interfaced with 3 candidates on June 29, 2024 for the position of Chairman in State Bank of India," the panel said in a release. The Bureau added that taking performance and experience into consideration, Setty was their choice for the job.
India Ratings pegs bank credit growth at 15.4% for FY25
India Ratings has forecasted a 15.4% loan growth for banks in FY25. The rating agency believes a turnaround in private capital expenditure could alleviate any pressure on overall credit growth during the fiscal year.
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.
Rates on fresh loans and deposit moderate sequentially in May
In May 2024, the Reserve Bank of India reported a marginal decline in weighted average lending rates on fresh loans and deposits by 16 and one basis points, respectively. The WALR on fresh rupee loans fell to 9.39%, while the WADTDR on fresh term deposits dropped to 6.47%.
Retail loans moderate for the 10th straight month
The Reserve Bank of India reported that bank lending to the retail sector moderated for the tenth consecutive month in May, reaching 17.8% from 19.1% a year ago. Corporate loans grew faster at 8.9% compared to 6% in May 2023. Non-food bank credit saw a 16.2% growth in May 2024 compared to 15.5% a year ago.
RBI imposes Rs 29.6 lakh penalty on HSBC
The Reserve Bank of India (RBI) has imposed a Rs 29.6 lakh penalty on The Hongkong and Shanghai Banking Corporation Limited (HSBC) for non-compliance with certain directions related to cards. The bank failed to ensure no negative amortisation while computing Minimum Payment Due in certain credit card accounts. The RBI found that the charge against the bank was sustained, warranting the imposition of monetary penalty.
Bandhan Bank commences online collection of direct taxes
Bandhan Bank provides diverse tax payment options, including internet banking, cash, and cheque, across 35 states and UTs. With a wide network and efficient services, we ensure seamless tax payment experiences for millions of customers, supporting the government's e-governance initiatives.
Bank Unions write to Finance Minister for merger of RRBs with Sponsor Banks
The merger of Regional Rural Banks with Sponsor Banks, as demanded by bank unions, aims to enhance efficiency, viability, and sustainability in the banking sector. This strategic move will not only improve employee skills and governance but also mobilize deposits, streamline credit delivery, and benefit the rural population significantly.
RBI cautions against surge in private credit between corporates and non-banks
The Reserve Bank of India (RBI) warns of systemic risks from the rapid growth of private credit, which has quadrupled in the past decade, especially due to its opacity and interconnectedness with banks and non-banks. The RBI highlights potential vulnerabilities in this segment, including the risk of sharp losses during a credit cycle downturn and challenges posed by complex structures and liquidity risks.
Must Watch
Fintech lenders have high delinquency levels in small value loans says RBI
The RBI has highlighted concerns over consumer loans, noting that over half of borrowers have three or more loans simultaneously. The Financial Stability Report flags high delinquency rates, especially among personal loans under ₹50,000 and loans from fintech lenders. Despite overall improvements in credit quality, stress in retail loans remains significant, particularly for private sector banks.
Indian banks' gross NPA ratio at multi-year low of 2.8%, net NPA down to 0.6% in FY24: RBI Fin Stability Report
The Reserve Bank of India reported that Indian banks' gross NPA ratio reached a multi-year low of 2.8%, with net NPA at 0.6% by March 2024. The global economy faces risks from geopolitical tensions and high public debt, but India's financial system remains robust, supporting economic growth through sustained credit expansion, the RBI said.
Consumer spending peaks in non-metro Indian cities: Visa
Visa, a global digital payments provider, revealed on Thursday that non-metro cities in India such as Dharamshala, Mullanpur, and Vishakapatnam are emerging as the biggest daily spenders. This insight comes from Visa Consulting and Analytics' consumer spending trends for the 2024 summer cricket season. Notably, there has been an overall increase in online transactions across all segments, with food and grocery delivery apps showing a 23% surge in usage.
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.
Bandhan Employees' Welfare Trust to move court following allegation against Chandra Shekhar Ghosh
Bandhan Employees' Welfare Trust, managed independently by employees, faces baseless allegations. Trust members seek explanations on financial matters, with legal action initiated against disruptors. The Trust aims to resolve disputes through legal channels for a fair outcome.
Banks seek clarity from RBI on credit card network norms
Several banks have sought clarity from the Reserve Bank of India (RBI) regarding guidelines that mandate offering existing credit card customers a choice of networks like Rupay, Visa, and MasterCard. As per RBI's guidelines issued in March, card issuers must provide this choice both during initial issuance and at the time of renewals. A senior bank executive informed ET that banks have sought clarification on whether this choice of networks should be extended to all existing customers or only implemented during renewal processes.
BANKING STOCKS
NSEBSE
| Company Name | Latest | Change | %Change | Volume |
|---|---|---|---|---|
| HDFC Bank Ltd. | 1683.8 | -12.36 | -0.73 | 13238023 |
| ICICI Bank Ltd. | 1199.6 | -20.31 | -1.67 | 12507092 |
| State Bank of India | 848.95 | 4.96 | 0.59 | 23636388 |
| Axis Bank Ltd. | 1265.25 | -23.71 | -1.84 | 7167069 |
| Kotak Mahindra Bank Ltd. | 1802.5 | -28.05 | -1.54 | 4969007 |
