Several state-owned banks, including the country’s largest lender, State Bank of India (SBI), are likely to tap debt markets and raise close to ₹20,000 crore by the end of the month, as lenders step up fundraising activities amid faster credit growth than deposit growth. SBI is likely to raise ₹5,000 crore-10,000 crore through the issuance … Read more
Ashwini Kumar Tewari, MD, SBI, says rural growth is coming back, consumption is improving and of course, whether it has reached the levels that we want and whether it is sustainable is something we have to see. But with the agricultural growth doing good and the monsoon having improved significantly, we are in for a … Read more
Debadatta Chand, CEO & MD, Bank of Baroda, says the bank’s guidance on the NIM has been 3.15% plus-minus 5 bps. And the good part of this quarter, the June quarter results is that we maintain the NIM vis-a-vis the last year. The last full year NIM was 3.18 and if you look at the … Read more
Gaurav Kochar, Fund Managers, Mirae Asset Investment, says for banks with very strong liability franchises, large private banks, the large PSU banks, deposit mobilisation is not that big a challenge. While the challenge is real for all banks, but the larger banks relatively are better placed in this given that they have the distribution and … Read more
V Vaidyanathan, MD & CEO, IDFC First Bank, says massive floods in Tamil Nadu five or six months ago disturbed the joint liability group (JLG) portfolio. IDFC First has taken extra provisions on that book because people at the bottom of the pyramid suffer during a calamity as it affects their earnings and hence the … Read more
Bank credit rose 14% on-year as of June 28, outpacing deposit growth at 11%, putting the spotlight yet again on central bank’s concerns over the gap that could lead to asset-liability mismatches. Latest Reserve Bank of India (RBI) data showed the growth in deposits and credit was lower than the year-ago period, reflecting a slowdown … Read more
Voicing concerns yet again, the Reserve Bank of India on Thursday said that credit expansion in excess of 18% could put the financial system to the test given the widening gap between credit and deposit growth. The central bank has been advising banks to review business strategy to make it sustainable with credit growth outpacing … Read more
On a sequential basis, HDFC Bank, ICICI Bank, and Axis Bank reported a faster growth in deposits for the March quarter compared with the credit growth while IndusInd Bank and Yes Bank showed marginally lower growth in deposits than advances. Synopsis While these lenders were able to increase deposits at a faster clip during the … Read more
