News headlines for jaiib2023

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🍒  Loan growth: Elephant racing faster than the system, says SBI Chief : State Bank of India (SBI) may not go aggressive and hike interest rates to mop up deposits as it still has excess Statutory Liquidity Ratio (SLR) to the extent about ₹4-lakh crore, which it can leverage to support credit growth in FY24. In FY24, India’s largest bank expects its deposits and loan book to grow about 9 per cent and between 12 to 14 per cent, respectively. Chairman Dinesh Kumar Khara likened his Bank’s FY23 loan book growth of 15.99 per cent (vis-a-vis banking system’s 15 per cent growth) to “elephant racing faster than the system.” - economic times

🍒  Bank of Maharashtra tops PSU lenders chart in profit and loan growth in FY23 : State-owned Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in terms of loan and deposit growth in percentage terms during 2022-23. The Pune-headquartered lender also recorded highest growth in profitability with bottomline growing almost 126 per cent to Rs 2,602 crore during the year. However, all the 12 public sector banks together recorded 57 per cent jump in net profit at Rs 1,04,649 crore in FY23, according to published yearly numbers of public sector banks (PSBs). In terms of percentage increase in gross advances, BoM recorded 29.4 per cent jump in loans at Rs 1,75,120 crore as of March 2023. It was followed by Indian Overseas Bank and UCO Bank with 21.2 per cent and 20.6 per cent growth, respectively. - Economic Times

🍒  HDFC-HDFC Bank merger in 4-5 weeks; bank's margin to drop, say analysts : The HDFC-HDFC Bank Ltd merger is just 4-5 weeks away and would result in lower net interest margin (NIM) for the lender this year, brokerages said on Thursday, a day after the management met analysts. The bank expects NIM - a key profitability measure - to fall to 3.7%-3.8% in 2023-24 from 4.1% a year ago due to the merger, Nomura analysts wrote in a report. However, lower credit costs and operating leverage will largely offset the impact, Nomura said, citing the management, which was represented by HDFC Bank CEO Sashidhar Jagdishan. - economic times

🍒  Bankers seek fee on RuPay debit card use : India's high-street banks have reached out to the government seeking a merchant discount rate (MDR) on RuPay debit cards on the grounds that it will provide them with the much-needed funds to enhance payment network security and develop innovative payment solutions.  MDR is charged to a merchant for the payment processing of debit and credit card transactions. At present, there is zero MDR for transactions through the RuPay debit card. A senior banker said the Indian Banks' Association (IBA) has also written a letter to the finance ministry seeking restoration of MDR on RuPay debit cards. - 

🍒  Banks mull common framework on hearing borrowers before fraud tag : Banks are considering a common framework for borrowers to respond before their loan accounts are classified as fraudulent, said executives aware of the development. This follows a Supreme Court ruling in March that borrowers need to be heard before such a decision is taken. A committee will be set up soon to draw up the framework, said the people cited above. It will detail the process of approaching borrowers, the documents to be submitted and reports to be given to them, along with timelines and the course of action. "Banks will share this common framework with the Reserve Bank of India (RBI) before finalising the guidelines to be followed by all lenders in such cases," said a senior executive aware of the matter. - economic times

🍒  Cash withdrawals at ATMs rise 235% since 2016 demonetisation :  Cash is still king more than 76 months after demonisation. Cash withdrawals from ATM rose 235% to ₹2.84 lakh crore at the end of March 2023, data released by CMS Infosystems a banking logistics and technology services provider, showed. The pan-India ATM cash replenishments carried out by CMS Info Systems witnessed an annual growth of 16.6% in fiscal year 2023. "We have seen 10.1% growth in monthly average cash replenishment at ATMs and a strong 1.3X increase in average cash collection per point with e-commerce companies in FY23," said Anush Raghavan, president, Cash Management Services, CMS Info Systems.- economic times

🍒  Acquirer of Silicon Valley Bank announces layoffs at the failed institution: The bank that acquired the remnants of Silicon Valley Bank after it failed amid a March bank run announced layoffs Wednesday. First Citizens Bank of Raleigh, North Carolina, said it was cutting about 500 jobs, or about 3% of its workforce. CEO Frank Holding said the move would only affect "select" corporate Silicon Valley Bank positions, adding that neither employees in customer-facing jobs, nor members of a team based in India, would be impacted. Silicon Valley Bank was caught unprepared when the Federal Reserve hiked interest rates earlier this year, a move that reduced the value of its reserves of Treasury bonds. It was walloped again when the tech clientele it had courted rushed to withdraw their funds. The bank served mostly technology workers and venture capital-backed companies, including some of the industry's best-known brands. - economic times

🍒  Strong performance of Indian banks to continue, says S&P analyst : S&P Global Ratings on Thursday said Indian banking sector profitability will stabilise at a healthy level, and asset quality will continue to improve. "Indian banks' earnings will likely remain healthy. The sector has improved substantially in the past seven years, from a period when many public-sector lenders were grappling with bad loans," S&P Global Ratings credit analyst Deepali Seth Chhabria said. A strong recovery is underway in the Indian banking sector, and lenders have just reported their best results in a decade, S&P Global Ratings said. It expects the sector profitability to stabilise at a healthy level, and that banks' asset quality will continue to improve. - economic times

🍒  Capri Global Holdings acquires 51% stake in CarLelo for ₹150 crore : Capri Global Holdings Pvt Ltd (CGHL) has acquired 51 per cent stake in CarLelo, an online new car selling platform, for ₹150 crore. CGHL is the holding company of non-banking financial company, Capri Global Capital Ltd (CGCL). “This investment is a testament to our commitment to driving the growth of the online new car sales and financing market while empowering new-age techpreneurs to overcome existing market challenges,” said Rajesh Sharma, Managing Director and Founder, CGHL. - Business Line

🍒  Spread between 10-year G-Sec and repo rate halves : The spread between the 10-year government security (G-Sec) and the repo rate has almost halved since the paper was first issued in early February. This is due to spurt in demand for G-Secs and thaw in retail inflation. The spread (difference in yields) between the benchmark 10-year G-Sec and the repo rate has shrunk to 51 basis points (bps) as on May 25 from 101 basis points on February 6, when this paper was first issued. - Business Line

🍒  LIC Chair talks about Q4 performance, dividend & Adani investment and more : Siddhartha Mohanty, Chairperson, LIC, says because group insurance contributes substantially to LIC kitty, there was some dip in the last quarter, though the group contributed for an entire year’s growth of more than 20%. For LIC as a whole, total first year premium income growth for the entire year is 16.67%. With such a large base and growth rate, everybody should appreciate that. If you break up our quarterly performance Q4 of ‘23, we have shown good growth in our individual business. Individual premium has gone up over that period of last year.- economic times

🍒  Tax exemption limit on leave encashment increased to Rs 25 lakh for non-government salaried employees : In line with the budget 2023 proposal, the finance ministry has notified the increased ceiling for encashment of earned leave that is exempt from income tax via a notification dated May 24, 2023. This will come into effect from April 1, 2023. “In exercise of the powers conferred by sub-clause (ii) of clause (10AA) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to the maximum amount receivable by its employees as cash equivalent of leave salary in respect of the period of earned leave at their credit at the time of their retirement, whether superannuation or otherwise, hereby specifies the amount of Rs. 25,00,000 (twenty-five lakhs rupees only) as the limit in relation to employees mentioned in that sub-clause who retire, whether on superannuation or otherwise.This notification shall be deemed to have come into force with effect from the 1st day of April, 202,” stated the finance ministry circular. - economic times

🍒  Sensex, Nifty bounce back from intra-day lows; settle higher on fag-end buying : In a volatile trade amid the monthly derivatives expiry, the 30-share BSE Sensex climbed 98.84 points or 0.16 per cent to settle at 61,872.62. During the day, it hit a high of 61,934.01 and a low of 61,484.66. The NSE Nifty gained 35.75 points or 0.20 per cent to end at 18,321.15 after beginning the trade on a weak note. From the Sensex pack, Bharti Airtel, ITC, Kotak Mahindra Bank, Larsen & Toubro, Power Grid, Bajaj Finance, Infosys, Nestle, Asian Paints, and Mahindra & Mahindra were among the major gainers. Wipro, Tata Motors, IndusInd Bank, HDFC, Hindustan Unilever, State Bank of India, and Tata Steel were the major laggards.- Business Line

🍒  Rupee falls 7 paise to close at 82.75 against US dollar : The rupee fell 7 paise to close at 82.75 (provisional) against the US dollar on Thursday, weighed down by the strength of the American currency in the overseas market. At the interbank foreign exchange, the domestic unit opened at 82.76 against the dollar, and finally settled at 82.75 (provisional), down 7 paise from its previous close. During the day, the rupee touched a high of 82.70 and a low of 82.78 against the greenback. On Wednesday, the rupee had settled at 82.68 against the dollar. - - Business Line

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