Banking Sector
PSBs well-capitalised; Not to require major infusion in FY23
According to Brickwork Ratings, in FY23, banks will be able to achieve credit growth of 8-9 per cent.
"Between FY17-FY20, the government injected Rs 3,000 billion in PSBs in order to help the banks maintain the minimum capital requirement, as well as manage huge amounts of bad assets in their books," the agency said.
Third Covid wave subdues India's Jan core sector growth sequentially
Covid's third wave subdued India's eight core industries' production in January 2022 on a sequential basis, official data showed on Monday.The growth rate of the eight major industries in January 2022 rose to 3.7 per cent from 4.1 per cent in December 2021. The Index of Eight Core Industries' (ICI) index reading rose on a year-on-year basis, at 1.3 per cent during January 2021.
Centrum Broking sees large banks' outlook attractive on strong Q3FY22 growth
Asset quality further improved for banks during the quarter, the brokerage said, adding that the economy bouncing back sharply in Q3FY22 which also coincided with the festive season, helped lenders report better sequential loan growth. In housing finance space, the brokerage bets on Can Fin Homes, whereas UTI Asset Management and Aditya Birla Sun Life Asset Management as preferred picks among the asset management companies.
IndusInd Bank moves NCLT against Zee Entertainment
"An application has been filed against the Company, under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy Rules 2016, by IndusInd Bank Limited, claiming to be a 'Financial Creditor', before the Hon'ble National Company Law Tribunal, Mumbai Bench for initiation of Corporate Insolvency Resolution Process against the Company, claiming a default of Rs.83,08,00,000," the filing said.
India's PSBs expected to source capital to be competitive
Accordingly, the ratings agency said that the state is inclined to place the burden of raising growth capital on its banks, as indicated by a lack of capital allocation for state banks in the government's latest budget. "This lack of capital allocation arguably indicates the government's belief that bank financials will remain healthy in the near term, enabling banks to support capital adequacy by sourcing fresh capital on their own," Fitch said.
Banking indices outperform broader markets, rise 10-20% in Jan
In the past one-month period, Nifty bank index rose nearly 11 per cent to 39,330 points. Just on Wednesday, it gained over 2 per cent. Besides, credit card spending also continued to be strong, the brokerage house said. During the past month, Nifty PSU bank and Nifty private bank rose 21 per cent and 10 per cent, respectively. On Wednesday too, these two indices jumped sharply.
Indian Overseas Bank's Q3FY22 net profit up 113%
The net profit rose to Rs 454 crore during the period under review as against Rs 213 crore for the quarter ended December 2020. Besides, interest income stood at Rs 4,198 crore for the quarter ended December 31, 2021 compared to Rs 4,244 crore for the corresponding period of the previous year. The lender's gross NPA as on December 31, 2021 stood at Rs 15,427 crore as against Rs 16,753 crore as of December 31, 2020. "The GNPA reduced by 1.74% on a YoY basis," the IOB said.
Banking indices outperform broader markets, rise 10-20% in Jan
In the past one-month period, Nifty bank index rose nearly 11 per cent to 39,330 points. Just on Wednesday, it gained over 2 per cent. "Payment activity continues to be strong. Loan growth saw some signs of revival as it climbed up to 8 per cent YoY led by retail and MSMEs. The interest rate environment seems to be turning, accompanied by a narrowing of term spreads and credit spreads," said brokerage house Kotak Securities.
Pandemic's economic shock 'weathered well' by banking system: EcoSurvey
According to it, reserve and broad money supply growth in 2021-22 so far was lower than in the previous year. The Survey noted that reserve money growth did not fully translate into commensurate broad money supply growth due to the smaller (adjusted) money multiplier reflecting large deposits by banks with the RBI under reverse repo window.
Centre gives nod for amalgamating PMC Bank with Unity Small Finance Bank
As per the Reserve Bank of India, the amalgamation will come into force with effect from the date of the notification of the scheme i.e. January 25. "All the branches of the PMC Bank will function as branches of Unity Small Finance Bank Ltd. with effect from this date. "USFBL is making necessary arrangements to implement the provisions of the scheme," it said.
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