Tag: bank

Bank of Maha sees 15% credit growth, may not need capital infusion from govt, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Bank of Maharashtra may not need capital infusion from the government this fiscal as it has adequate funds to meet the expected credit growth of 14-15 per cent, but may raise growth capital in the next quarter.

“Our capital adequacy ratio is 14.68%. As of now we don’t require any capital from the government. Capital is also a cost, the only thing is – when to raise the capital,” Bank of Maharashtra CEO A S Rajeev told ETBFSI in an interview.

The bank has raised Rs 400 crore towards equity in the current fiscal and Rs 1,000 crore as Tier-II capital two weeks back. If the Tier II capital is considered the adequacy ratio would rise to 15.50. The bank expects Rs 1,000 crore minimum profit in the current year, which would be added to the capital. It has also provided Rs 1,000 crore for Covid, which would be added to the capital if the provisioning is not required.

Credit growth

The bank sees credit growth in the infrastructure sector and segments such as hotels that are opening up with the easing of the pandemic. The MSME segment that was witnessing restructuring is also growing.

“The retail growth is on an average 15% in all banks. In our case, it is 17-18%. MSME is around 20% in spite of all these issues. So definitely it will be above 20% in this half year,” Rajeev said.

Home loans are growing 20% growth while auto 28%. The lender expects that the chip shortage will be sorted out in the second half of this fiscal.

Bank of Maha sees 15% credit growth, may not need capital infusion from govt

Outreach programme

The bank’s outreach programme is yielding 300-350 accounts with one credit outreach programme with loans of Rs 200-250 crore, he said, adding a recent SLBC in Pune it fetched loans of Rs 348 crore for the banks involved. The bank’s core business is improving with net interest margin at 3.27%. “If you’re able to maintain a NIM of 3% and you continue with 17% core profitability. And earlier NIM was affected by huge provisioning, now risk adjusted NIM is improving because the provisioning component has come down,” Rajeev said.

FinTech collaboration

The bank is investing a huge amount for FinTech and digital, and have tied with a number of companies, especially in the analytics space. The lender has tied up with around 15 companies for joint lending, including start-ups and NBFCs. The bank is also looking at buying stakes in FinTech firms and at leasing model.

Transfer to NARCL

The lender has identified around Rs 1,800 crore of loans for transfer to the National Asset Reconstruction Company Ltd and plans to shift Rs 3,500-4,000 crore fraud reported assets to the bad bank.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

Fino Payments Bank reports 74pc jump in Jul-Sept profit, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Recently listed Fino Payments Bank on Saturday reported a 74 per cent jump in its net profit to Rs 7.89 crore in the quarter ended in September 2021. The bank had posted a net profit of Rs 4.52 crore in the year ago same period.

Revenue of the bank grew by 35 per cent year-on-year to Rs 242.15 crore on the back of a growth of 32 per cent in transaction revenue, 43 per cent in subscription income and 35 per cent in open banking, Fino Payments Bank said in a regulatory filing.

The bank completed its initial public offer (IPO) and listed its shares on November 12, 2021 on NSE and BSE.

Current account and savings account (CASA) subscription revenue grew by 78.3 per cent on the year while subscription yield increased from Rs 402 per account in Q2FY21 to Rs 481 per account in Q2FY22, it said.

“Our growth momentum in transaction volumes and throughput continues to be strong. Consumer behaviour towards convenience banking is gaining impetus,” Rishi Gupta, CEO & Managing Director said.

Ketan Merchant, Chief Financial Officer said the bank’s investment in technology and operating leverage is beginning to yield results.

“Alongside growth in our existing businesses, our digital journey in Fino 2.0 will help us tap a massive potential of cross sell in the near future,” Merchant said. PTI KPM MR MR



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Yes Bank plans legal action on police order, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Yes Bank is understood to be planning legal action against the Gautam Buddh Nagar police order disallowing the private lender from dealing with or exercising rights over shares of DishTV. This is a part of the bank’s attempts to recover loans to the group.

According to legal experts, the bank can seek redressal from the Allahabad HC against the police order. The police have issued a notice under Section 102 of the Criminal Procedure Code, which gives them power to seize property that is allegedly stolen or there is reasonable suspicion. The notice was issued on a case based on a complaint by Subhash Chandra, chairman of Essel Group. The FIR is understood to have been lodged in September 2020.

The private bank, which is the largest shareholder in DishTV with a stake of over 24%, has sought to oust the management. The bank had acquired a stake in the broadcaster after invoking a pledge on shares that were offered by the Essel Group promoter. The pledges were invoked after the promoter defaulted on its loans. The Essel Group, which has come under stress, had managed to extract a standstill agreement from other lenders. Yes Bank has continued to pursue recovery and moved a resolution to sack CEO Jawahar Goel and other independent directors.

However, last Saturday, DishTV informed the stock exchanges that the UP Police have issued a notice to the bank asking it not to deal with DishTV shares or exercise any rights in respect of them.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Banks, ATM operators seek RBI to review penalty scheme for dry ATMs

Banking & Finance

[ad_1]

Read More/Less


Banks and ATM operators are hopeful that the Reserve Bank of India (RBI) will soon review the penalty on ATMs that have run out of cash but many are on a wait-and-watch mode on the expansion of their ATM networks.

“With the penalty in place, it makes more sense to have ATMs on-site along with bank branches than to keep them off-site. This would ensure that the ATMs can be serviced easily and frequently,” noted a senior bank executive.

“We are hopeful that there will be some relief. Otherwise, the penalty could also impact expansion into semi-urban and rural areas as there are often logistical challenges in loading cash,” noted another banker.

The RBI had in August this year announced the scheme of penalty for non-replenishment of ATMs under which ATMs with no cash for more than ten hours in a month will attract a flat penalty of ₹10,000 each. The scheme has come into effect from October 1, 2021.

Scaling down

“The penalty may impact the deployment of ATMs in rural and remote locations. Withdrawals would become difficult in such a scenario, especially when there is a focus on financial inclusion,” said Radha Rama Dorai, Secretary, Confederation of ATM Industry (CATMi).

CATMi had recently also made a representation to the RBI pointing out that while it is supportive of the move that would help customers, the ATM industry is already under tremendous pressure due to Covid, will have no option but to scale down dramatically.

It estimates that about 70 to 80 per cent of semi-urban and rural ATMs and 20 to 30 per cent of urban ATMs will be liable for the penalty. The likely penalty on operators will be around ₹80-100 crore per month, it had said.

“We hope to get a positive response from the RBI on our representation,” said Dorai.

RBI Deputy Governor T Rabi Sankar had on October 8 also said the RBI is reviewing this penalty scheme after getting feedback from lenders.

“We have received various feedback — some positive and some raising concerns. There are issues specific to locations. We are trying to take all the feedback and have a review and see how best it can be implemented,” he had told reporters.

There are about 2.13 lakh ATMs in the country as of September 30, 2021, of which 1.15 lakh are on-site and the balance 97,383 are off-site.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

ESAF Bank join hands with Nabard for local economic development

Banking & Finance

[ad_1]

Read More/Less


Esaf Small Finance Bank has joined hands with Nabard for local economic development. K. Rajan, the State Revenue Minister inaugurated the state-level Local Sustainable Economic Development Training Program organized by the bank in this regard.

Speaking on the occasion, the Minister said ESAF Small Finance Bank’s state wide initiative on Local Sustainable Economic Development Training Program in collaboration with Nabard is a step towards building financial literacy at grass root levels.

K. Paul Thomas, MD and CEO, ESAF Small Finance Bank, presided over the function. The project is aimed at bringing financial empowerment and economic independence at the local level through training and enabling the elected representatives of the Panchayati Raj Institutions to meaningfully intervene and build the well-being of the people in the constituencies they represent. Initially, this project will benefit 300 panchayats across Kerala.

P Balachandran, Chief General Manager, NABARD released a handbook to enable the elected representatives to equip the citizens with skills and knowledge for their long-term financial needs, in turn fostering local sustainable economic development. Three videos on Intelligent Borrowing, Credit Discipline, and Debt Distress Management were released at the function.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Dhanlaxmi Bank Q2 net declines 74pc at Rs 3.66cr on soaring bad assets, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Dhanlaxmi Bank on Friday reported a nearly 74 per cent plunge in its net profit to Rs 3.66 crore in quarter ended in September 2021 as provisions rose due to a spike in bad loans. The private sector bank had posted a net profit of Rs 14.01 crore in the corresponding period a year ago.

Total income of the bank during the July-September period of 2021-22, however, grew to Rs 266.59 crore from Rs 249.66 crore in the same period of 2020-21, Dhanlaxmi Bank said in a regulatory filing.

Interest income was down at Rs 229 crore in Q2FY22 from Rs 243.97 crore in Q1FY21, even as the other income was higher at Rs 37.58 crore, as against Rs 5.69 crore.

Provisions for the bad loans and contingencies for the reported quarter rose to Rs 22.40 crore from Rs 4.29 crore in September 2020.

The bank’s gross non-performing assets (NPAs) rose to 8.67 per cent of the gross advances as of September 30, 2021, from 6.36 per cent in the year-ago same period.

However, sequentially from gross NPAs were down compared to 9.27 per cent in June 2021 quarter. Value-wise, the gross NPAs were worth Rs 604.15 crore, up from Rs 448.72 crore.

Net NPAs too rose to 4.92 per cent (Rs 329.55 crore) from 1.66 per cent (Rs 111.45 crore).

“During the quarter ended September 30, 2021, NPA for which provision had already been made amounting to Rs 7,786 lakh has been technically written off,” the bank said.

Provision coverage ratio (including technical write off) as of September 30, 2021 is 74.18 per cent, it added.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Bank credit picks pace as economy revives, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Lenders are seeing a pick-up in loan demand with demand from medium sized firms and retail borrowers as the economy is slowly coming back on track as COVID restrictions ease.

Bank credit rose 6.8 per cent in October compared to 5.1 per cent in the same period a year ago, according to the latest figures released by the Reserve Bank of India on Wednesday. Outstanding credit amounted to Rs 110.5 lakh crore as of October 22, up Rs 7 lakh crore over a year.

The pick up in loan demand is largely due to the push from government schemes even as large corporates and top rated borrowers continue to rely on capital markets and the overseas markets where they manage to raise funds at much cheaper rates. India’s Weighted Average Lending rates were at 7.20% in September, according to the RBI data. At the same time, the average rates for triple-A rated five-year corporate bonds were at 6% and at 5.29% for three-year maturity, show Bloomberg data compiled by ETIG

The latest data on sectoral flow of credit offtake that lending to Medium sized firms rose 49 per cent year-on-year to Rs 1.75 Lakh crore as of end September compared to the same period a year ago. Much of the lending is reckoned to be under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) MSME sector, under which the government provides 100% Guarantee to banks in respect of eligible credit facility extended by it to its borrowers.

In addition consumer durable loans have risen by 40 per cent compared to 14.9 per cent in the same period a year ago, with borrowers taking advantage of the reduced interest rates. With the government’s renewed thrust on the social sector, lending to infrastructure more than doubled to Rs 1323 crore in September from Rs 1081 crore a year ago.

On the liability side, the pace of deposit pick-up has slowed down to 9.9 per cent compared to 10.1 per cent in the same period a year ago. But deposit growth still continues to outpace the credit growth. In absolute terms banks raised almost double the amount of deposits at Rs 14 lakh crore than the amount they lent during the period.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Banks with 95% cards implement RBI order on recurring payments, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


MUMBAI: A month after the RBI’s fresh rules on mandates for recurring card payments kicked in, banks accounting for over 95% of credit cards in the market are compliant with the new system. Over 20 lakh e-mandates have been registered by cardholders with a host of merchants.

According to payment industry sources, the banks whose credit cards are eligible for new standing payment mandate include SBI, Axis Bank, HDFC Bank, Yes Bank, American Express, Bank of India, Bank of Baroda, ICICI Bank, HSBC, RBL Bank, IndusInd Bank and Kotak Mahindra Bank. Several banks have enabled the mandate for both debit cards as well as credit cards.

Automatic recurring payments also require the merchant to be on-boarded to the new e-mandate framework. The compliant businesses include most of the OTT (over-the-top) streaming platforms, private life & general insurance companies, global IT giants like Google, Facebook, Microsoft and McAfee, as well as some edtech companies.

Interestingly, Indian cardholders who have registered with overseas service providers, having payment gateways abroad, are not subject to the new rules. This is because the RBI has no jurisdiction to impose second-factor authentication in those markets. It is up to the customer to disable international transactions on their cards.

What has facilitated the fast on-boarding of merchants is IT solutions like SI Hub developed by BillDesk and Mandate HQ developed by Razorpay. However, some domestic banks like Canara Bank & Punjab National Bank and Standard Chartered Bank were until last week in the process of making the necessary system changes.

According to the sources, card-based recurring transactions are 2.5% in terms of the number of transactions and 1.5% in terms of the value of the total card payments done in the country. On average, approximately 75% of domestic recurring transactions are of values of up to Rs 5,000. The corresponding figure for cross-border recurring transactions is approximately 85%.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

RBI Central Board reviews bank grievance redress systems

Banking & Finance

[ad_1]

Read More/Less


The Central Board of the Reserve Bank of India on Friday took stock of a nationwide survey among bank customers regarding banks’ grievance redress system and the functioning of ombudsman schemes.

To improve the efficacy of the internal grievance redress mechanism of banks and to provide better customer service, a comprehensive framework has been put in place comprising certain measures, according to RBI.

The measures include enhanced disclosures on customer complaints by the banks and the Reserve Bank, recovering the cost of complaints’ redress from banks when maintainable complaints are higher than their peer-group averages. intensive review of grievance redress mechanism, and supervisory/regulatory actions against banks that fail to improve their redress mechanism in a time bound manner.

Integrated ombudsman

The Banking Ombudsman Scheme (BOS), launched in 1995, has served as a flagship alternate grievance redress mechanism for the redress of customer complaints against banks received by the Reserve Bank.

Subsequently, the ombudsman scheme for NBFCs and the ombudsman scheme for digital transactions were launched in 2018 and 2019, respectively.

An in-house committee, set up to review the ombudsman framework and suggest measures to improve its efficacy, recommended convergence of the three ombudsman schemes into an integrated “Reserve Bank of India Ombudsman Scheme”, expanding the ambit of this scheme to all regulated entities presently not covered under the existing schemes to provide a single window for grievance redress.

Centralised processing

The committee also recommended setting up of a centralised receipt and processing centre for receipt and initial processing of complaints under the ‘One Nation – One Jurisdiction’ approach, reducing the turnaround time (TAT) for the redress of complaints, and introducing delegation by appointing a deputy ombudsman.

The Board, in its meeting, reviewed the current domestic and global economic situation and challenges. It deliberated on possible measures for addressing the emerging challenges.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Union min, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Guwahati, Union Minister of State for Finance Bhagwat Kishanrao Karad on Wednesday said 57 new bank branches will be set up in Assam by March next year to bring more people under the ambit of banking. At an event to launch a ‘credit outreach programme’ here, Karad said the central government is taking all possible steps to expedite the economic development of the Northeastern region.

“By March 31, 2022, we will have 57 new branches of various banks. This step has been taken as Assam has less number of branches against its population as per the standard norm and people are facing difficulties because of this,” he added.

Considering the problems of the people, Prime Minister Narendra Modi has taken various initiatives to accelerate the economic growth of the northeast and Jammu and Kashmir, he said.

Karad said, “I have come to visit Assam, Manipur, and Tripura to assess the economic issues faced by the common man. We will try to solve the problems of these states.”

He expressed happiness over Assam achieving satisfactory results in implementing various financial schemes such as Mudra Loan and Kishan Credit Card among others.

“The state’s economic growth is directly related to financial literacy. If people are literate about financial aspects, only then overall economic growth will be achieved,” Karad said. PTI TR

MM MM



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,
1 2 3 4 … 9