Banking
Tamilnad Mercantile Bank reports a 10% rise in net profit for June quarter
Tamilnad Mercantile Bank saw a 10% rise in net profit for the June quarter, reaching Rs 287 crore compared to Rs 261 crore in the same period last year. Operating profit increased to Rs 469 crore, and gross non-performing assets decreased to 1.44%. The bank also grew its advances by 9.6% and deposits by 4.6% year-on-year.
RBI highlights inconsistencies in BDDR treatment; issues revised instructions to standardise co-operative banks' practices
All provisions as per Income Recognition, Asset Classification, and Provisioning (IRACP) norms, regardless of whether they are accounted for under “BDDR” or another head, must be charged as an expense to the P&L Account in the accounting period in which they are recognised. These provisions will continue to be eligible for regulatory capital purposes as defined in existing capital adequacy guidelines.
Reliance Capital resolution: Lenders warn of remedial action against Hinduja's IIHL
Lenders of Reliance Capital cautioned Hinduja Group's IndusInd International Holdings for missing NCLT-imposed deposit conditions, including Rs 250 crore in a domestic escrow account and Rs 2,500 crore offshore. Given a final extension till August 10, IIHL has yet to meet deadlines, prompting lenders to reserve remedial rights.
HSBC India's profit up 7% to $798 million
HSBC's Indian operations' profit rose by 4% year on year, driven by 7% growth in global banking and commercial banking divisions. With India as its fourth-largest profit center, the bank's total loan book saw a 17% increase, reflecting stronger wholesale and personal loan segments during the six months ending June 2024.
Indian banks allocate only 5% revenue on IT spends
According to the BCG report “The Poster Child”, 75% of digital payments and loans and 25% of new digital accounts will originate from third-party platforms by FY26.
UPI clocks Rs 20 lakh crore for the third straight month in July
UPI Payments, a part of “India Stack”, has emerged as the flagship Indian fintech product over the recent years. It has seen remarkable growth, rising from 6% of non-cash retail transactions in FY18 to 80% in FY24, with projections to reach 90% by FY26, as per estimates by Boston Consulting Group.
Small Indian banks back online after ransomware attack, payments authority says
About 300 small Indian banks were temporarily offline following a ransomware attack on C-Edge Technologies, which provides tech services to the banks. The National Payments Corporation of India isolated these banks to contain the attack, which has now been resolved. A forensic review confirmed the breach did not extend to the banks' own systems.
NPCI connectivity with C-Edge Technologies re-established
“The impact was limited to C-Edge systems hosted in their data center and not on any of the co-operative banks or regional rural banks' own infrastructure,” NPCI said. “The services of co-operative banks and regional rural banks, which were dependent on C-Edge, have now been restored.”
Rs 2000 banknotes: 97.92 pc returned; Rs 7,409 cr worth notes still with public
The Reserve Bank of India (RBI) announced that 97.92 per cent of the Rs 2000 denomination banknotes have returned to the banking system, with only Rs 7,409 crore worth of these notes still with the public. This announcement follows the RBI's decision on May 19, 2023, to withdraw Rs 2000 denomination banknotes from circulation.
Micro lenders cut rates, vow to improve ops as RBI governor flags 'usurious' charges
The industry body Microfinance Institutions Network (MFIN) announced that microfinance entities have begun reducing loan interest rates and implementing borrower protections. This move comes in response to repeated criticisms from Reserve Bank Governor Shaktikanta Das regarding the "usurious" charges imposed on borrowers.
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India's private sector banks lead market cap gains on stronger metrics
India's biggest private lender, HDFC Bank Ltd., posted a 16.5% increase in its market capitalization to 12.811 trillion rupees. Barring IndusInd Bank Ltd., the market capitalization of all private sector banks among the 20 largest banks in the country improved from the previous quarter.
Bank loans to shadow lenders drop, credit card outstanding rises
By June 2024, growth in bank credit to NBFCs had fallen to 8.5% from 16% in May. Credit card and gold jewellery loans, however, saw substantial growth. Commercial real estate and personal loans, particularly home loans, also grew significantly, influenced by the HDFC-HDFC Bank merger.
Kotak to buy IDBI Bank? RBI identifies eligible bidders for state bank's stake sale
The Reserve Bank of India has approved Fairfax Financial Holdings, Emirates NBD, and Kotak Mahindra Bank as bidders for a majority stake in IDBI Bank. The Indian government and Life Insurance Corp plan to sell 60.7%. Approved bidders will receive access to IDBI Bank's private data after evaluation. Bid submissions are expected by the end of the fiscal year.
RansomEXX ransomware strikes Indian banks: CloudSEK
A ransomware attack by the RansomEXX group has disrupted India's banking system and payment firms, affecting around 300 small-sized lenders across the country. The attack, attributed to the RansomEXX v2.0 group, began with a misconfigured Jenkins server, exploiting a vulnerability to gain unauthorized access.
PNB hikes lending rate by 5 bps across tenors
The benchmark one-year tenor MCLR, which is used to price most consumer loans such as auto and personal, will be at 8.90 per cent against the earlier rate of 8.85 per cent, PNB said in a regulatory filing. The three-year MCLR stands at 9.20 per cent, up 5 basis points.
NPCI likely to restore retail payment operations of co-op banks by today: Sources
C-Edge Technologies, a tech service provider for cooperative banks, experienced a ransomware attack that disrupted online payment services for over 100 banks. The National Payments Corporation of India (NPCI) responded by isolating C-Edge from its payment systems to prevent further issues.
BANKING STOCKS
NSEBSE
| Company Name | Latest | Change | %Change | Volume |
|---|---|---|---|---|
| HDFC Bank Ltd. | 1659.15 | 20.36 | 1.25 | 22059619 |
| ICICI Bank Ltd. | 1196.55 | -13.55 | -1.12 | 10735395 |
| State Bank of India | 847.85 | -14.8 | -1.72 | 12609331 |
| Axis Bank Ltd. | 1160.85 | -11.46 | -0.98 | 10581445 |
| Kotak Mahindra Bank Ltd. | 1803.45 | 10.8 | 0.61 | 3242589 |
