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CEA Nageswaran pitches for MSME-specific approach to NPA classification norms

V Anantha Nageswaran emphasized the need to revise non-performing asset classification norms for micro, small and medium enterprises. He highlighted that existing norms do not consider diverse cash flow cycles and working capital requirements. The Chief Economic Advisor pointed out that a uniform global framework is unsuitable for India’s business practices. Additionally, he suggested reducing compliance costs for MSMEs to improve their operational efficiency. from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/c5mdarl via IFTTT

Crude oil, uneven monsoon pose risk to banks despite benign asset quality: Report

Higher crude oil prices and drought conditions in five states may impact Indian banks' asset quality outlook. This follows a stable credit cost scenario for private and public sector banks. The report suggests monitoring external factors affecting borrowers' repayment capacity. While deposit growth has improved, there are risks to profitability and net interest margins. Investors are advised to keep an eye on these developments in the coming quarters. from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/wx3vp4Y via IFTTT

Bank profits may rise 25% in Q2FY27, margins to recover gradually in second half: Report

According to a report by Emkay Research, Indian banks might report a 25.4 percent year-on-year increase in net profit. Higher foreign currency deposits could exert pressure on lending margins, impacting profitability. Loan growth remains healthy, contributing to income increases and reduced provisions for loan losses. Overall banking system growth is anticipated to moderate as FCNR-B funding normalizes. from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/2MTu5A9 via IFTTT

Surging bond yields likely to slash banks' treasury income

Banks are expected to report a nearly 60% decline in treasury income for the July-September quarter. Analysts predict treasury gains to decrease from ₹13,100 crore last year to ₹5,500 crore this year. Rising government bond yields have negatively impacted investment portfolios, leading to lower gains. Public sector banks will feel a more pronounced effect due to their larger government securities portfolios. from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/309YGIt via IFTTT

Deposit rate hikes unlikely for 3 months; RBI action to help NIMs: SBI chairman C S Setty

State Bank of India Chairman C S Setty stated there will be no deposit rate hikes for the next three months. He cited sufficient liquidity in the system as a key reason for this prediction. Setty mentioned that credit growth is expected to sustain at 14 to 15 percent over time. He emphasized that banks need to ensure positive real interest rates for depositors amid rising inflation. from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/MC5j6SI via IFTTT

At Rs 35.9 crore, HDFC Bank's incoming boss Anup Bagchi set to be India's highest-paid bank CEO

HDFC Bank has proposed an annual compensation package of up to Rs 35.90 crore for Anup Bagchi. This remuneration could increase to Rs 43.24 crore with performance-based stock bonuses. Bagchi's package is significantly higher compared to previous CEO Sashidhar Jagdishan's total remuneration. HDFC Bank is seeking shareholder approval for this proposed compensation and Bagchi's appointment. His leadership aims to improve retail loan growth and strengthen investor confidence. from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/ryYRHMB via IFTTT

Govt asks banks to develop a sector-wide quantum transition along with an AI resilience framework

According to the industry, major concerns in this segment include 'harvest now, decrypt later' threats, where cyber adversaries stockpile encrypted banking data for future quantum decryption. The finance ministry has also asked banks to assess post-quantum vulnerabilities and initiate mitigation measures, said an official, who did not wish to be identified. "Each bank can prepare its internal strategy, but there has to be some common industry parameters," he added. from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/p9QehTk via IFTTT