GNPA
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.
Improving asset quality, reach to keep Jana SFB on growth path
JSFB provides micro financing, secured business loans, loans against property, micro, small and medium enterprises loans, loans against deposits and gold, and loans to finance companies. The bank strives to reduce reliance on unsecured loans by expanding the portfolio of secured loans. At the end of March 2024, its total loan book was worth Rs 24,746 crore.
PNB Q4 results: Net profit surges 160% YoY to Rs 3,010 crore; NII rises 9%
Public sector lender Punjab National Bank (PNB) on Thursday reported a 160% year-on-year (YoY) surge in Q4 net profit at Rs 3,010 crore, while the net interest income (NII) rose to Rs 10,363 crore in the quarter, rising 9% YoY.
Canara Bank Q4 results: Net profit up 18% on retail growth, fall in provisions
CEO K Satyanarayana Raju said the bank expects to deliver 11-12% loan growth in the current fiscal year despite conscious efforts to shed low-yielding corporate loans.
IOB to sell 92 NPA accounts having Rs 13,472 cr loan outstanding
Indian Overseas Bank to e-auction 92 non-performing loans worth Rs 13,471.68 crore. Loans include consortium arrangements, NCLT cases, sole banking ventures. Gross NPA reduced to 3.90% by December 31, 2023.
KVS Manian joining Federal Bank? Lender mum on new chief decision, gives a hint over succession plans
Federal Bank declined to comment on reports of KVS Manian as MD & CEO candidate, emphasizing their search for the best candidate, internal or external. Manian, a former Kotak Mahindra Bank executive, is speculated for the role. Federal Bank reported Q4FY24 earnings, with a net profit of Rs 906 crore
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Banks' GNPAs set to improve further to 2.1 pc by FY25: Report
The gross non-performing assets (GNPA) of the Indian banking system are set to improve further to up to 2.1 per cent by the end of FY25, a report said on Friday. GNPAs are likely to come at 2.5-2.7 per cent in FY24 and will improve further to 2.1-2.4 per cent by the end of FY25, domestic rating agency Care Ratings said in the report.
Union Budget 2024: What is in store for Indian banks?
Finance Minister Nirmala Sitharaman is set to announce measures in the Union Budget 2024 on February 1. The health of public banks, highlighted as relatively healthy by the Reserve Bank of India, will be closely monitored by executives and shareholders. With 2024 being an election year, a vote on account is expected in February, and the full budget presentation will follow after the General Elections.
RBI’s warning on exuberant retail lending has deeper dimensions
A recent RBI research delves into the empirics of retail credit growth and concludes that the quality of retail loan portfolio is healthy across banks, product categories, and borrower risk classes, even as growth continues to surge.
Karnataka Bank posts all-time high profit
Mangaluru-based Karnataka Bank recorded a net profit of Rs 1,032.04 crore for the nine months of the financial year ending December 2023, a 25% YoY growth. The bank's Q3FY net profit stood at Rs 331.08 crore, a 10.11% increase YoY. The board of directors meeting in Mangaluru approved the financial results. Karnataka Bank's business turnover reached Rs 1,61,936.36 crore with advances of Rs 69,740.97 crore and deposits of Rs 92,195.39 crore. The bank's asset quality improved, with GNPA declining to 3.64% and NNPA declining to 1.55%.
Karnataka Bank shares tank 12% on lower YoY NIMs, higher GNPA
Karnataka Bank reported the December quarter NII at Rs 827.60 crore down by 0.86% from Rs 834.76 crore reported in the year-ago period. Meanwhile, the NIMs were lower by 35 bps at 3.46% for the October-December quarter versus 3.81% reported in Q3FY23.
Finance Minister Nirmala Sitharaman meets heads of PSBs, reviews financial performance
This is the probably last full review meeting before the presentation of Budget 2024-25 and general elections later next year. As per PTI sources, issues related to fraud and wilful defaulters and progress on the National Asset Reconstruction Company Ltd (NARCL) came up for discussion during the meeting.
Bad assets of banks decline multi-year low to 0.8% in September: RBI report
The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system.
Indian banks reports card: Asset quality improves to fresh 10-year high, balance sheet grows by highest in 9 years
RBI Report on Trend and Progress of Banking in India: Key highlights include a 12.2% expansion in the consolidated balance sheet of scheduled commercial banks, driven by credit to the retail and services sectors. Deposit growth increased but lagged behind credit growth. The capital to risk-weighted assets ratio (CRAR) of scheduled commercial banks was 16.8% at the end of September 2023, meeting regulatory requirements .The improvement in asset quality continued, with the gross non-performing assets (GNPA) ratio at 3.2% at the end of September 2023.
RBI asks NBFCs to broad-base fundraising, reduce dependence on banks
The consolidated balance sheet of scheduled commercial banks (SCBs) in 2022-23 expanded by 12.2 per cent, driven by credit to retail and services sectors. Deposit growth also picked up, although it trailed credit growth, it said.
Balance sheet of banks expanded by 12.2% in 2022-23, shows RBI report
The expansion was driven by credit to retail and services sectors, the report said. Deposit growth also rose; this, however, trailed credit growth, it added.
Higher credit demand, lower NPAs to boost banking sector; public sector banks' total profit likely to touch Rs 1.50 lakh cr
India's banking sector is poised for another strong year, with public sector banks expected to achieve a total profit of Rs 1.50 lakh crore. The robust economic growth and stable non-performing assets are contributing to this positive outlook. However, slower deposit growth remains a challenge for banks. The RBI Governor Das has indicated that interest rates will remain high for the next six months.
Finance minister Niramala Sitharaman to meet heads of PSBs on Sat; review progress of implementation of govt schemes
Finance Minister Nirmala Sitharaman is set to meet managing directors of public sector banks (PSBs) to review their financial performance. Public sector banks have reportedly earned a net profit of around Rs 68,500 crore during the first six months of the current financial year. The meeting will assess the progress made by banks in achieving targets for government schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Kisan Credit Card (KCC), Stand-Up India, and Pradhan Mantri Mudra Yojana (PMMY).
Arcil among investors eyeing IDBI bad loans
Around twelve investors, including Asset Reconstruction Company India (Arcil), Aditya Birla ARC, Invent ARC, Omkara ARC, ASREC, UV ARC, Alchemist ARC, Phoenix ARC, and Prudent ARC, have shown preliminary interest in acquiring IDBI Bank's bad loans amounting to ₹8,842 crore. These distressed assets span 12 accounts, including VOVL, Jaiprakash Associates, and Wind World India.
Aiming to have best asset quality among HFCs: Girish Kousgi, PNB Housing Finance
I think we had a very good quarter two. We stick to our book growth guidance of 17 to 18%. So as I mentioned earlier, first we will catch up with disbursement and then the book growth would follow.
Credit growth to moderate to 13.2 pc in FY24; NPAs will improve further: Icra
Credit growth in the banking system is expected to moderate to 12.1-13.2% in the current fiscal, down from 15.4% in the previous year, according to rating agency Icra. The agency also predicts a decrease in the Gross Non-Performing Assets (GNPA) ratio to 2.8-3% by March 2024.
Asset quality from retail book perspective still not big concern for HDFC Bank: Kajal Gandhi
I think HDFC Limited is already selling whatever they felt were the pain assets or they may be wanting to get rid before they get into the merger.
Banks face a highly uncertain outlook, RBI report says
The consolidated balance sheet of Indian banks saw double-digit growth in 2021-22, after a gap of seven years, said the Reserve Bank of India in its report on the Trend and Progress of Banking in India 2021-22. "With global growth set to deteriorate in 2022 and with rising prospects of a recession in 2023, credit growth could procyclically decelerate across major economies which, in turn, could shrink bank profitability," RBI said.
Bank credit growth at 16.2 %, more than double last year's pace
ank credit rose 16.2 percent to Rs 125.5 lakh crore as of September 9'22 over last year's levels. This is reckoned to be the highest growth in more than eight years and more than double the pace of 6. per cent growth in September'21. Analysts attribute this to a surge in corporate demand besides a steady growth in retail and MSME loans.
Bad loan ratio of banks likely to fall to 5-5.5% by March 2024, says S&P Global
The small and midsize enterprise sector and low-income households are vulnerable to rising interest rates and high inflation, but it expects these risks to be limited, the agency added.
Credit growth expected to improve aided by govt's push on public spending
As the Indian economy has navigated the pandemic-induced shocks, Care Edge report said, the bank credit growth by scheduled commercial banks (SCBs) improved post-August 2021 to reach 13.1 per cent in early June 2022, a rate last recorded in March 2019. Apart from retail, the major driver of this growth has been the wholesale credit, which reported double-digit growth after witnessing a significant slowdown last year, it said.
Bad loans of banks expected to decline further to 5.3% by March 2023: RBI report
"Under the assumption of no further regulatory reliefs as well as without taking the potential impact of stressed asset purchases by NARCL into account, stress tests indicate that GNPA ratio of all SCBs may improve from 5.9 per cent in March 2022 to 5.3 per cent by March 2023 under the baseline scenario driven by higher expected bank credit growth and declining trend in the stock of GNPAs, among other factors," the RBI said.
Asset quality worries completely unfounded: RBL Bank
“There has been considerable speculation and rumours linking the appointment of the new MD & CEO of the Bank, Mr. R. S. Kumar, with asset quality challenges for the Bank in the near future,” it said. “We wish to reiterate that such speculation is baseless and unfounded and purely speculative in nature.”
IBA expert panel to vet loan recast proposals
The committee, which will be set up by the Indian Banks' Association, will comprise financial services experts and persons of eminence from the industry, they said. It will conduct process validation of the restructuring without interfering in the commercial judgment of the lenders.
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