Reliance, Birla
join the payment bank rush
Some of India’s top
business houses such as Reliance Industries Ltd (RIL) and Aditya Birla Group
are among about 100 entities that have applied for payment and small bank
licences, the application deadline for which ended on Monday.
Many in the
fray are not so well known
A number of
relatively unknown companies have thrown in their hats for taking the niche
banking licence. Most of these players already have some presence in the
microfinance segment or service distribution.
Profits up, but
asset quality still a concern for private banks
While the
October-December period was good for private banks in terms of profitability,
asset quality issues plagued the sector severely, with many of them reporting a
rise in NPAs. India’s largest private lender, ICICI Bank, for instance,
reported gross NPAs of Rs. 13,083 crore (3.40%) in Q3FY15, up 25.8% y-o-y.
India to run
current account deficit for foreseeable future: RBI Governor
An article by Reserve Bank of India Governor, released on
Monday, says that he sees India running a current account deficit in the
foreseeable future, needing net foreign financing. Governor's forecast comes a
day before the central bank's bi-monthly monetary policy review, due on
Tuesday.
December core
output at 3-month low of 2.4%
Annual growth in production of the eight key infrastructure
industries declined to a three-month low of 2.4 per cent in December, compared
with 6.7 per cent the previous month and four per cent in December 2013. RBI
might consider the slow rate of output growth ahead of its monetary policy
review on Tuesday.
Jan Dhan costs
banks capex of Rs 2,000 cr
Banks have so far made capital expenditure (capex) of around
Rs 2,000 crore for opening accounts under PMJDY, Mr. T M Bhasin, chairman, IBA,
said. He, also MD of Indian Bank, added: "Opening one account incurs a
cost of Rs 140, against the estimation of Rs 80 per account."
India can
achieve target of 90% of citizens having access to banking services by 2034,
says PwC
Branchless banking solutions could be a smarter choice for
enabling scale, said a report —The Future of India: The Winning Leap — by PwC.
As a result, India could expand the percentage of citizens who have access to
formal banking services (and actively using those services) from 35% in
2012-2013 to 70% in 2024 and 90% in 2034 through investments of $28 billion,
much lower than what needs to be spent using traditional methods.
Bank of
Maharashtra to reduce exposure to corporate loans
BOM is planning to
scale down the share of corporate loans to 60% of the total credit portfolio
during the current financial year from the 70% level. The bank wants to lower
its exposure because these loans are less profitable as the corporate sector
has a bargaining capacity to negotiate the interest rates to its advantage,
according to bank executive director Mr. R Athmaram.
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