In view of sluggish growth in deposit, banks are aggressively selling deposits during the last fortnight of the financial year 2012-13. Banks collectively raised about Rs 1 lakh crore in the fortnight ending March 8. To be specific, aggregate deposits, including demand and term deposits, rose Rs 99,1
Tag: Banks
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Experts advocate private regulatory mechanism
While the debate on regulating large conglomerates of financial companies continues, some experts argue that private (or market-based) regulatory mechanisms may be more efficient in certain cases compared to government regulatory mechanism. These experts argue that government regulators could be captured by special interestsĆāof both the corporate and populist kind. And there is good reason to believe that instances of this kind have occurred in India, expe
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Performance indicators of banks deteriorate
A survey by industry body Confederation of Indian Industry (CII) shows that key performance indicators of banks like credit growth, net interest income deteriorated in 2012-13. The survey, in which 5 public sector banks (PSBs), 3 private sector banks and 7 foreign banks participated, showed that growth in profit after tax (PAT) and return on equity also deteriorated in the current financial
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RBI wants banks to mitigate risks on infra loans
In a communication to banks, the the Reserve Bank of India (RBI) asked lenders to take steps to mitigate loans given for infrastructure projects under the public-private partnership (PPP) model. The RBI asked banks make provisions such as pre-determined increase in user charges for infrastructure projects in order to ensure sufficient risk mitigation. There has t
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Govt’s Rs 1.9 trillion debt recast scheme fails to enthuse SEBs
Reports indicate that the Rs 1.9 lakh crore debt restructuring package announced by the central government for state electricity boards (SEBs) has not received much response. It is learnt that no major state has yet entered into a memorandum of undertaking (MoU) with the centre for debt recast. states such as Rajasthan are negotiating with ban
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Angel expects banking license norms to be a game changer
Angel Broking feels that the final new bank licensing guidelines released by the Reserve Bank of India (RBI) are potentially game-changing for the banking sector. The brokerage firm expects six to eight very serious corporates, with deep-pockets (far more than was earlier being anticipated), may get a banking license
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Banks may find it difficult to raise non-equity core capital
Crisil Ratings President Ramraj Pai opined that banks may find it difficult to raise Rs 1.4 trillion worth of non-equity-based tier-I capital, as mandated by Basel III norms, because of complexity involved in these debt instruments. According to Basel III norms, banks will have to raise
1.3 trillion as equity capital and up to Rs 1.4 trillion as non-equity tier-I capital
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S&P expects improvement in bank performance in FY15
Ratings agency Standard & PoorĆās (S&P) expects the performance of Indian banks to improve only in 2014-15. The agency feels that till then the banking sector would continue to face hurdles, in terms of asset quality and earnings. In 2013-14, the agency expects improvement in the economic growth and corporate performance aided by vario
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Bad loans of banks rises
According to the Economic Survey 2012-13, overall non-performing assets (NPAs) of the banking sector rose from 2.36 per cent of total credit in March 2011 to 3.57 per cent in September 2012. Slowdown and the high leverage levels have caused loans to a few industry and infrastructure sectors turning NPAs, the survey notes. Sectors particularly under
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Care expects banks to recast Rs 577 bn worth loan
According to a report by ratings agency Care, banks in the country would restructure new loan worth Rs 57,782 crore and this would raise the total recast loan book to Rs 312,022 crore next fiscal (2013-14). The report expects banks to carry out most of the restructuring in pipeline during the fourth quarter of this fiscal and through next fiscal if the draft RBI guidelines on re