Top Indian Banking Industry News & Updates - 06 April 2024,Saturday
🗎 RBI / MoF / Govt. Policies
Our rate action not dependent on US Fed: Das
The Reserve Bank of India’s (RBI) six-member monetary policy committee (MPC) has been pre-emptive in its rate actions, basing decisions on domestic economic activities, and is independent of what the US Federal Reserve (US Fed) does, Governor Shaktikanta Das said at the post-MPC press conference. Excerpts:
RBI to review liquidity coverage ratio framework, says Governor Shaktikanta Das
Reserve Bank Governor Shaktikanta Das on Friday announced a review of the liquidity coverage ratio for banks to ensure smooth functioning even in events of acute stress. In a statement on Developmental and Regulatory Policies announced with the new fiscal year’s first monetary policy review, Das said recent events in other countries have shown that digital channels have been used by customers to quickly withdraw or transfer funds from banks.
RBI Retail Direct scheme: Soon, you can buy govt bonds directly via Reserve Bank’s new mobile app
RBI Retail Direct Scheme: The Reserve Bank of India (RBI) is planning to launch a mobile application aimed at facilitating seamless investment in government securities by retail investors. Using this app, investors can buy central and state government bonds as well as Treasury bills. The move is aimed at enhancing individual participation in government bonds.
Room for deposit rate hikes given sustained credit-deposit gap, pressure on NIMs: RBI
Mumbai: Transmission of policy rate changes in still being seen in lending and deposit rates and banks are expected to hike deposit rates further given the sustained gap in credit and deposit growth and the impact high cost deposit mobilisation on banks’ margins.
RBI to modify LCR framework to facilitate better management of liquidity risk by banks
Mumbai: The Reserve Bank of India (RBI) is planning to make certain modifications to the Liquidity Coverage Ratio (LCR) framework to facilitate better management of liquidity risk by banks. Governor Shaktikanta Das noted that the recent episodes in some jurisdictions have demonstrated the increased ability of the depositors to quickly withdraw or transfer deposits during times of stress, using digital banking channels.
RBI to allow UPI payments from PPI wallets via third party apps
Mumbai: Reserve Bank of India has proposed permitting linking of Prepaid Payment Instruments (PPIs) through third-party UPI applications, thus allowing PPI wallet holders more flexibility to make UPI payments.
RBI keeps repo rate unchanged at 6.5%
Mumbai : The Reserve Bank of India’s monetary policy committee kept the key repo rate on hold at 6.5% for the seventh consecutive time, as it looked for inflation to contract on a durable basis to meet the central bank’s target of 4%.
RBI to permit non-bank payment system operators to offer CBDC wallets
Mumbai - Reserve Bank of India has proposed allowing non-bank payments system operators (PSOs) to offer CBDC (Central Bank Digital Currency) wallets in order to make CBDC-R (Retail) more accessible to a broader segment of users. This is expected to enhance access and expand choices available to users apart from testing the resiliency of the CBDC platform to handle multi-channel transactions, the central bank said, adding that necessary changes will be made to the system to facilitate this.
UPI, the great enabler: RBI gives nod for cash deposit, money transfer from PPI wallet via UPI
In a bid to shore up liquidity and add to user convenience along with boosting digital payment options, the Reserve Bank has now proposed to facilitate deposit of cash in Cash Deposit Machines (CDMs) using UPI. This measure is also expected to make the currency handling process in the banks a lot more efficient. Earlier cash deposits through CDMs were possible using debit cards.
Would like inflation elephant to return to forest, stay there: RBI Guv Das
Highlighting strong momentum in economic activity, Das, in his customary policy statement, said: “Robust growth prospects provide the policy space to remain focused on inflation and ensure its descent to the target of 4.0 per cent.”
RBI MPC Meeting April 2024 Highlights: RBI holds repo rate at 6.5%
Here are the major updates related to the latest bi-monthly RBI Monetary Policy Committee meeting.
New LCR guidelines soon: RBI
Banks, NBFCs and other financial entities must continue to give the highest priority to quality of governance, Reserve Bank of India (RBI) governor Shaktikanta Das said, adding that the central bank will continue to constructively engage with them in this regard.
Governance must be priority for banks, financial entities: Das
Banks, NBFCs and other financial entities must continue to give the highest priority to quality of governance, Reserve Bank of India (RBI) governor Shaktikanta Das said, adding that the central bank will continue to constructively engage with them in this regard.
Monetary policy: Review of liquidity ratio framework for banks on the cards
Banks covered under the Liquidity Coverage Ratio (LCR) framework must maintain a stock of high-quality liquid assets (HQLA) to cover the expected net cash outflows in the next 30 calendar days. Securities eligible for statutory liquidity ratios, like central and state government bonds, are reckoned as HQLA to calculate LCR. Banks have to maintain 100 per cent LCR.
RBI’s first monetary policy statement for the new fiscal reveals this about the interest rate trajectory
At first glance, the Reserve Bank of India’s (RBI) first monetary policy statement for the current fiscal year throws up no surprises, with the central bank’s decision to keep interest rates unchanged reflecting the consensus view on the street.
RBI Governor assures no system-wide problem with NBFCs
After taking action against two non-banking financial companies (NBFCs) due to concerns regarding their business practices, RBI Governor Shaktikanta Das stated that there is no “system-wide” problem with such lenders.
Banks, NBFCs must continue to give highest priority to quality of governance: RBI
RBI turns down request to remove 'small finance' tag from bank name
“SFBs have been conceptualised as differentiated banks with specific objectives. The tag of having an SFB after their name is a key part of that differentiator. So, I do not think there is any requirement to modify that at this point in time,” said M.
Rajeshwar Rao, deputy governor, RBI, in post monetary policy media interaction.
📝 RBI extends rate pause as food price pressure lingers
📝 RBI penalises IDFC First Bank, LIC Housing Finance
📝 RBI directs banks and finance companies to prioritise governance, adhere to rules
📝 "Be mindful..." RBI Governor Das flagged this to banks and NBFCs over public money during MPC meeting
📝 RBI leaves repo rate unchanged; retains “withdrawal of accommodation” stance
📝 Banks, financial entities must prioritise governance, compliance: Guv Das
📝 Overnight swap rates hint rate cut hopes ruled out
📝 Monetary Policy: Why RBI may have chosen to err on the side of caution
📝 Analysts see only 'shallow RBI rate actions' beginning from third quarter
📝 RBI remains cautiously optimistic on inflation in FY25
📝 RBI Policy: Stability in lending rates bodes well for housing sector, say realtors
Read More >>
🏦 PSB / Pvt Banks
Bandhan Bank CEO Chandra Shekhar Ghosh to step down when tenure ends in July
Mumbai: Chandra Shekhar Ghosh, founder of private-sector lender Bandhan Bank will step down as managing director and chief executive when his term ends on 9 July.
External candidate may replace CS Ghosh as MD and CEO of Bandhan Bank
Mumbai: After serving Bandhan Bank for almost nine year, Chandrasekar Ghosh, MD and CEO of Bandhan Bank and its founder, decided to step down from the position once his term ended on July 9, 2024. In a letter to the board recalling how Bandhan was started to where it currently is, Ghosh said, “After leading the Bank for almost a decade including three consecutive tenure as MD and CEO, I feel that the time has now come for me to assume a larger strategic role at Bandhan group level. Hence, I have decided to retire from the services of Bandhan Bank at the end of my current tenure as MD and CEO, i.e. on July 09, 2024“.
Interestingly, Ghosh’s resignation from the bank comes at a time when the forensic audit by the National Credit Guarantee Trustee Company (NCGTC) is underway. It is anticipated that the final report of the audit should be due out soon. On February 12, businessline reported that forensic audit by NCGTC is being conducted at the bank examining loans worth $23,300 crore.
RBI MPC Meeting: Patience is the buzzword; rate cut unlikely before August, says Yes Bank's Indranil Pan
Market expectation was never for any action in this Monetary Policy Committee (MPC) meeting and there were rightly no surprises. On a majority vote, the stance and the rate were kept unchanged. The Reserve Bank of India (RBI) continues to communicate well, keeping its tone well balanced. The optimism continues regarding the growth front, in continuation of the February meeting. FY25 growth is projected at 7 per cent. On the other hand, uncertainties were highlighted with respect to inflation, and as was also alluded in February, the “last mile" is proving to be the hardest. Even as inflation has been moving lower, especially the core, the uncertainty around the inflation reading is likely to continue into FY25.
Bank of Maharashtra reports 16% credit growth in Q4 at Rs 2.03 trn
The outstanding credit was Rs 1.75 trillion at the end of March 31, 2023, BoM said in a regulatory filing.
IOB’s total business crosses ₹5 lakh cr mark in FY24
Chennai-headquartered Indian Overseas Bank has ushered in the new fiscal by surpassing the ₹5-lakh crore mark in total business for the first time in the year that ended on March 31, 2024. This is a major milestone in IOB’s post-turnaround phase. “The Bank has achieved a business mix of over ₹5-lakh crore (unaudited), marking a new era of financial growth. From retail to MSME and priority sector, each segment has played a pivotal role in propelling the bank towards this remarkable achievement, according to a source with knowledge of the matter.
📝 PNB reports 11.5 pc loan growth in Q4, BoB's up 12.4 pc
📝 SBI MD on RBI policy, LCR framework & more
📝 HDFC Bank loan book crosses Rs 25L cr mark; stock rallies over 3%
📝 HDFC Bank’s ADR jumps over 6 pc post business performance update
Read More >>
🏦 Foreign Banks / FIIs / I-Banks
📝 Radhika Rao’ 3 takeaways from the RBI’s latest monetary policy
📝 SVB effect: RBI to review cash buffer for banks
Read More >>
💳 ATMs / Credit Cards
Preference for credit cards increasing; demand for debit & prepaid cards down
Source Credit: Vijay C Roy, The Tribune
📝 UPI users to soon get cash deposit facility at ATMs, RBI reveals decision to…
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🗎 NBFCs / FIs / MFI
📝 RBI holds rates, auto retail to stay flat and first time car buyers to defer entry as financing remains expensive
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UPIs / Wallet / FinTech
PhonePe’s subsidiary Share.Market introduces F&O segment with focus on intelligence
Bengaluru: PhonePe’s new offering Share.Market has launched its Futures and Options (F&O) segment adding on its platform with comprehensive trading tools.
Cardless cash deposits via UPI apps: Everything you may want to know
With the Unified Payments Interface (UPI) having gained massive popularity for an array of transactions, depositors will soon be able to use this phone banking interface service to deposit cash at cash deposit machines (CDMs) at ATMs and bank branches.
📝 Paytm parent One97 Communication approves grant of 91,250 stock options
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🧔 Brokers / Distributors
Angel One garners Rs 1,500 cr via QIP to fund working capital requirements
The issue, which was opened on March 26 and concluded on April 2, received an overwhelming response from both domestic and foreign institutional investors, Angel One said in a statement.
Read More >>
🗠 Bourses
📝 NSE awaiting Sebi nod for IPO: Chauhan
Read More >>
Crypto
📝 Crypto Gems: Top crypto assets to watch & buy in April 2024
📝 Cryptocurrency Price on April 5: Bitcoin rises above $67,500; Bitcoin Cash, Shiba Inu jump up to 10%
Read More >>
🗠 Mutual Funds / AMCs
DSP Healthcare Fund: Why taking the active fund route makes sense in this sector
In the last one year, S&P BSE Healthcare fund has returned 62 per cent, bettering the broader BSE Sensex returns of 25 per cent. A strong revival in pharma and continued momentum in hospitals has ensured that the sector stands tall once again after the Covid rally of 2020-21. From the current vantage, stock picking from the sector should be a tougher ask compared with the past year. While structural changes can continue to drive incremental returns from the sector, some headwinds and rich valuations can temper outsized returns. For investors looking for long-term healthcare exposure, DSP Healthcare Fund, with the right mix of portfolio and strong return history, can be a suitable choice.
📝 RBI's policy will create stability in financial market and growth for Indian economy: Nilesh Shah
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🗎 Equities, Pvt. Equity / Hedge Funds
Private equity investments decline for second consecutive year in 2023
Chennai: Private equity (PE) investors are feeling the pinch of the funding winter and taking a cautious approach to investments as geopolitical uncertainties, tough macro environment and tighter credit markets play spoil sport. PE investments (other than in real estate) hit a six-year low in calendar year 2023 as big ticket investments dry up.
Equity markets gain marginally to scale new peaks after RBI policy decision
Equity markets gain marginally to scale new peaks after RBI policy decision
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🗎 Govt. Securities / Bonds
RBI develops app for easy retail access to G-Sec market
Mumbai: The RBI said a mobile application of the Retail Direct portal is being developed to further improve ease of access by retail investors to the government securities market. The app will enable investors to buy and sell instruments/ government securities (Government Dated Securities, State Development Loans, Treasury Bills and Sovereign Gold Bonds,) on the go, at their convenience. The app will be available for use shortly, Governor Shaktikanta Das said.
Foreign investors in IFSC will be permitted to invest in Sovereign Green Bonds: RBI
Mumbai: The RBI has decided to permit eligible foreign investors in the International Financial Services Centre (IFSC) to also invest in Sovereign Green Bonds (SgrBs). This is with a view to facilitating wider non-resident participation in SgrBs. At present, foreign portfolio investors (FPIs) registered with SEBI are permitted to invest in SGrBs under the different routes available for investment by FPIs in government securities.
📝 RBI permits FPIs to invest in sovereign green bonds via IFSC
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