RBI penalises IDFC First Bank, LIC Housing Finance for non-compliance
The Statutory Inspection for Supervisory Evaluation for FY22 revealed that the bank had sanctioned term loans to a public sector undertaking for financing infrastructure projects without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations. Further, the repayment/servicing of the term loans was made out of budgetary resources.

For RBI, the elephantine task is still far from over
The Reserve Bank of India’s (RBI) first Monetary Policy in the new fiscal, as expected, didn’t spring any surprises in terms of rate action or stance. Consequently, both the equity and bond markets stayed almost flat, with the 10-year G-Sec rising marginally by 3 bps.

RBI may issue guidance on SFB upgradation to universal banks
Mumbai: In a move that may elevate small finance banks to universal banks, the Reserve Bank of India is expected to issue guidelines or circular which may capture the requirements that SFBs should have to convert into universal bank. An application process for upgradation to universal bank is also likely to form part of this circular.

RBI Deputy Governor stresses governance, audit function, technology at UCB conference
 

RBI economic surveys point to optimistic growth outlook
Reserve Bank of India’s forward looking surveys indicate improving macro economic sentiments across various segments. Services sector firms assessed further improvement in overall business situation, job landscape and their turnover during the fourth quarter of 2023-24. While enterprises gauged higher cost pressures stemming from input costs, pressures from salary outgo and cost of finance, however, moderated during the quarter. Respondents were more upbeat on the overall business situation and their turnover, as well as both full-time and part-time employment conditions during April-June 2024. Service sector enterprises remain highly positive on availability of finance and expect it to improve further in the ensuing quarter.

Lateral hirings in PSBs spark debate
The recent exits of some senior officials from public sector banks (PSBs), hired from the private sector, has sparked debate in the banking sector about the relevance of lateral hiring from private banks.

PNB reports 11.5 per cent loan growth in Q4, BoB's up 12.4 per cent
New Delhi: State-owned Punjab National Bank (PNB) on Friday said it has posted a credit growth of 11.5 per cent at ₹9.85 lakh crore for the March quarter. Total advances were ₹8.84 lakh crore at the end of March 31, 2023, PNB said in a regulatory filing. The lender reported a 7 per cent increase in total deposits to ₹13.70 lakh crore as against ₹12.81 lakh crore at the end of the fourth quarter of the previous financial year.

SBI plans incognito visits exercise to its branches to monitor customer services
Mumbai: State Bank of India (SBI) is planning to engage the services of an external agency to carry out incognito visits to its branches to monitor customer services from the current financial year.

Treasury income boost for banks’ Q4 earnings
Higher treasury income, supported by a fall in bond yields during the January-March period, is likely to boost earnings of banks in the fourth quarter of the previous fiscal. However, net interest margins (NIMs) are expected to shrink as the cost of funds remains elevated, with banks continuing to hike rates on deposits to mobilise funds to meet high credit growth.

Bank Holidays in April 2024: Banks to remain closed for 5 days next week. Check all details here
Bank Holidays next week in April 2024: Bank customers can look forward to a long week of non-working days at their banks next week with five holidays slotted, including the weekends. In fact, in some states, the holidays stretch out further into the succeeding week too, with Monday and Tuesday also being holidays.

SBI expects to surpass ₹1-lakh crore operating profit in FY25
State Bank of India has set its sights on surpassing the operating profit milestone of ₹1-lakh crore in FY25 and has drawn up financial targets accordingly. The country’s largest bank logged an operating profit of ₹65,050 crore in the nine months (April-December) of FY24, up 10.08 per cent year-on-year (y-o-y). In FY23, it had posted an operating profit of ₹83,713 crore.

‘We will see more M&A action post elections’
Global investment bank Moelis & Company has advised some of the biggest fund raise and merger and acquisition (M&As) deals in recent times. These include Aster DM Healthcare’s Gulf business sale to Fajr Capital and BlackRock Real Assets-led consortium’s investment of Rs 4,000 crore in Tata Power Renewable Energy, among others.  Manisha Girotra, CEO, Moelis India, tells Rajesh Kurup and Raghavendra Kamath that while private equity (PE) deals will continue in the immediate future, the big bets in the M&A space will be made post elections.

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Bajaj Housing Fin board to meet on Apr 24 to discuss listing requirement
"For the company to comply with the regulatory timelines stipulated under the regulations applicable to companies classified as NBFC - Upper Layer, the Board of Directors of the Company will undertake discussions concerning the  mandatory listing requirement, including considering various options based on the prevailing market conditions, at its meeting scheduled on April 24, 2024," the company informed the exchanges.
 

In my view. NBFC assets grow from strength to strength
The assets under management (AUM) of non-banking financial companies (NBFC) are back in focus since fiscal 2023, after having weathered multiple challenges exacerbated by the pandemic.

SIDBI partners fintech platform KarmaLife for micro loans to gig workers
New Delhi: Small Industries Development Bank of India (SIDBI) has entered into an agreement with a fintech Onion Life Private Limited to use the latter’s technology platform KarmaLife for a pilot to provide micro loans to gig workers. This is expected to support the gig workers’ financial inclusion to formal institutional credit. KarmaLife will help gig workers access micro loans through a mobile app and eliminates the hassle of extensive paperwork or physical documentation.

Recency bias, global cues underpin elevated valuations: Sailesh Raj Bhan
Overall revenue growth in the fourth quarter (Q4) is likely to remain muted as sectors like consumer staples and information technology (IT) struggle for growth, says SAILESH RAJ BHAN, chief investment officer of equities at Nippon India Mutual Fund. In an email exchange with Abhishek Kumar, Bhan highlights that quick-service restaurants (QSRs), large banks, select utilities, and commodity businesses are a few market segments that are still sensibly valued.

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Mutual fund: Key things to keep in mind while investing in a MF scheme
Mutual funds are considered a good investment instrument for those seeking a higher return on investment and portfolio diversification without directly investing in the stock and debt markets due to time constraints or other reasons.

Mutual fund: Key things to keep in mind while investing in a MF scheme
Mutual funds are considered a good investment instrument for those seeking a higher return on investment and portfolio diversification without directly investing in the stock and debt markets due to time constraints or other reasons.

‘Most returns likely in first half of 2024’: Taher Badshah, the chief investment officer at Invesco Mutual Fund
As we enter 2024, Taher Badshah, the chief investment officer at Invesco Mutual Fund, suggests that the bulk of returns could come in in the initial months, with the latter half of the year potentially witnessing less activity, albeit not necessarily signalling a correction. Speaking on the market's exuberance, Badshah noted that the 2017-18 rally appeared more frothy, largely due to fund flows. However, this time, he observed a blend of fund flows and robust fundamentals. So, he anticipates fewer reasons for significant corrections in future. Edited excerpts:

Gaming and Sports tech. Getting funds and fans together
Source Credit: Haripriya Sureban, The Hindu Business Line

Focused on sports tech and gaming industry, newbie venture capital firm Centre Court Capital has launched a ₹350-crore fund. It is founded by Mustafa Ghouse, former CEO of JSW Sports, along with Alok Samtaney, former investment director with TVS Capital, and Sabre Partners.

Filter Capital says it raised ₹800 cr, closed debut fund
 

PEs love a mature market: Subhrajit Roy, Bank of America
Subhrajit Roy, Head, India Global Capital Markets, Bank of America, explains in an interview to businessline how the current trend of block deals in the equity market can deepen private equity participation in India.

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Will investing in bonds be made easier in India?
Indian investors love fixed income, and equity. Bonds, however, have not made the cut yet. The discomfort to invest in bonds is further accentuated due to lack of information and illiquidity. Having twin regulators at the helm— with the Reserve Bank of India (RBI) supervising government bonds and market regulator Sebi overseeing corporate bonds—has not helped active market reforms. Even today, simple information like yield and interest— that is inbuilt but not paid —is not displayed at exchanges where small lots of bonds trade.

Bond market analysts remain upbeat on prospects of yields softening in long term
 

HSBC helps overseas funds navigate India's bond market as inclusion nears
HSBC Holdings Plc is engaging with over 200 overseas funds to help establish their presence in India ahead of the nation’s entry into global debt indexes.