Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

With credit off-take increasing, <keyword id="36838" type="General" weightage="20" keywordseo="indian-banks" source="Orion">Indian banks</keyword> are expected to issue bonds to maintain their capital levels and support their advances while cost of funds -- deposits and borrowings are likely to increase, said CARE Ratings. "To support credit-off take, banks are expected to shore up their liability franchise by raising capital (<keyword id="2542652" type="General" weightage="20" keywordseo="AT1-bonds" source="Orion">AT1 bonds</keyword>, other debt instruments such as infrastructure bonds) and deposits. The market has been facing lower liquidity and elevated inflation, hence borrowing costs for deposits and the cost of raising capital are expected to increase," the credit rating agency said in a report. The banks are increasing their interest rates for deposits and plans for bonds issue. Further, profitability is also expected to support the capital base of the banks. Overall, the <keyword id="4960825" type="General" weightage="20" keywordseo="scheduled-commercial-banks" source="Orion">scheduled commercial banks</keyword> (SCB) are expected to remain adequately capitalised in the near term. All SCBs have maintained their Capital Adequacy Ratio (CAR) greater than the minimum required level for Q3FY23. The median CAR and Common Equity Tier 1 (CET-1) ratio of SCBs witnessed a rise in Q3FY23 over Q3FY22 and Q3FY21, the report notes. According to CARE Ratings, the net profit of SCBs grew by 45 per cent year-on-year (y-o-y) to Rs 0.65 lakh crore in Q3FY23 driven by a higher pre-provisioning operating profit (PPOP) growth compared to a lower growth in provisions. The net interest income growth and stability in non-interest income helped PPOP to grow by 28.5 per cent y-o-y to Rs 1.30 lakh crore in Q3Y23. Meanwhile, provisions rose by 9.1 per cent to Rs 0.38 lakh crore. Public sector banks' net profit rose by 64.3 per cent y-o-y to Rs 0.29 lakh crore in Q3FY23, meanwhile private sector banks' grew by 32.2 per cent y-o-y to reach Rs 0.35 lakh crore in Q3FY23, the report added. Return on Assets of SCBs improved by 28 bps y-o-y to 1.23 per cent. At present, banks are in a better position after navigating the Covid period and managing mounted NPAs. Healthy credit growth, improvement in asset quality, and lower growth in provisions due to lower incremental slippages and reduction in restructuring books are expected to generate healthy net profit growth. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/personal-finance/news/presumptive-taxation-the-scheme-that-eases-burden-on-small-businesses/articleshow/98183636.cms">Presumptive taxation: The scheme that eases burden on small businesses</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/elephant-will-not-march-but-run-powered-by-private-consumption-union-amc/articleshow/98182584.cms">Elephant will not march but run, powered by private consumption: Union AMC</a>

Indian banks to issue bonds to maintain capital levels: CARE Ratings

Systems of three banks have been infiltrated by <keyword id="11094" type="UNKNOWN" weightage="20" keywordseo="Hackers">hackers</keyword> to create fake trade documents that may have been used to raise finance abroad or facilitate dealings in banned items. The banks are government owned and two of them are headquartered in <a href="http://www.businessinsider.in/searchresult.cms?query=Mumbai+&amp;sortorder=effectivedate">Mumbai </a>and one in <a href="http://www.businessinsider.in/searchresult.cms?query=Kolkata&amp;sortorder=effectivedate">Kolkata</a>. 
 
The banks in question discovered that their SWIFT systems - the global financial messaging service banks use to move millions of dollars and documents across borders every day - have been compromised to create fake documents. However, they aren’t still sure about the origin of the attack and the intention of the hackers. 
 
It's learnt that soon after the breaches were reported to the <a href="http://www.businessinsider.in/searchresult.cms?query=Reserve+Bank+of+India&amp;sortorder=effectivedate">Reserve Bank of India</a>, the regulator last month directed several banks to cross-check all trade documents issued over the past one year. 
 
"The nature of the attack is unfamiliar to Indian banks. While there is no monetary loss and ransom demand as yet, there are fears that the banks' systems have been misused. There was fraudulent duplication of trade documents like letters of credit (LC) and guarantees. These the hackers may have encashed or are planning to encash with some offshore banks. It's also possible that hackers did not present the fake LCs to raise funds but to carry out trade of prohibited or illegal commodities,” a person familiar with the breaches told ET. 
 
An LC, serving as a guarantee, is a letter that one bank writes to another bank (particularly in another country) to ensure payment to the supplier of goods when certain conditions are met. Besides messages for fund transfers, the SWIFT system is also used to communicate trade documents. Thus, a cyber-criminal who generates fake LC may attempt to place it with an offshore bank for finance. The Indian bank (whose system has been misused to create false LC) may later face a monetary claim when the foreign bank tries to recover the money released against an LC or guarantee.

These 3 Indian banks are attacked by hackers and this is scary

New Delhi, Mar 8 () Allaying concerns over banking sector health in the wake of Yes Bank fiasco, Chief Economic Adviser Krishnamurthy Subramanian on Sunday said Indian banks are well capitalised and there is no reason to worry.He further said that it is a wrong method to assess a lender's health based on the ratio of deposit to m-cap (market capitalisation)."What I want to emphatically state that the m-cap ratio is a totally incorrect metric for assessing the safety of the banks. No banking sector expert or banking regulator uses this measure," Subramanian said while addressing a select mediapersons at his office here.After what all unfolded about the crisis-hit Yes Bank recently, top government functionaries including Finance Minister Sitharaman, RBI Governor Shaktikanta Das and the chief economic advisor have been trying to assuage panicked investors.The CEA said that no banking sector experts or regulators use deposit/m-cap ratio as a measure to gauge resilience of banks rather it is the capital to risk weighted assets ratio (CRAR) and other such metrics that can rightly gauge the health of banks."What banking sector experts and regulators use is what is called the CRAR. It is important to keep this in mind that the international norms for CRAR is 8 per cent and Indian banks on an average have a CRAR of 14.3 per cent. "So, 8 per cent is the mandated minimum norm and our banks on the average have 14.3 per cent (CRAR). Now 14.3 per cent versus 8 per cent almost translates into 80 per cent greater capital than the international norms," he said.He further said that the Reserve Bank of India (RBI) mandates the Indian banks to keep CRAR at 9 per cent. "Even compared to that our banks have 60 per cent more capital. So this is something that is very important."Giving reasons as to why the deposit/m-cap ratio is an incorrect measure to assess the health of the banks, he said the m-cap ratio is essentially the ratio of the deposits that a bank has to its market capitalisation."Now if you compare for instance any bank lets say a private sector bank with the State Bank of India, State Bank of India would have an order of magnitude of higher m-cap ratio. "But the State Bank of India is as safe as the any other bank in the world. In fact it is the only Indian bank to be the part of the top 100 banks internationally."So this ratio does not really capture the safety of a bank because it is actually affected by the market capitalisation. "As you all know the stock price of a bank can change minute to minute, as a result the m-cap ratio will also change minute to minute but the solvency cannot change minute to minute," Subramanian said.He also emphasised that the Indian banks on an average have a CRAR of 14.3 per cent, which is way more higher -- about 80 per cent greater than the global measures."So our banks on an average are very-very well capitalised, so there is absolutely no reason to worry. Also, the government has increased the limit for deposits that are insured to up to Rs 5 lakh, which covers a large majority of the deposits."Together with the fact that our banks are well capitalised and the fact that the deposits are well taken care of, there is absolutely no reason for anyone to worry," he said. A day after imposing a 30-day moratorium on Yes Bank and capping withdrawal limit at Rs 50,000, the RBI on Friday evening had issued a draft reconstruction scheme for the private sector lender. As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. KPM MKJ

Indian banks well capitalised, no reason to worry: CEA

Chennai, Mar 26 (): Public sector Indian Bank onThursday announced five special emergency loans for itscustomers, including corporate clients, Self-Help Groups,retail borrowers and pensioners.The five special emergency loans -- the IND-COVIDEmergency Credit Line for corporate customers, IND-MSE COVIDEmergency loan for micro, small and medium enterprises, SHG-COVID (SAHAYA Loan) for self help groups, IND-COVID emergencysalary loan for retail borrowers and an emergency pension loanfor pensioners, the city-based bank said in a press release."In these challenging times, Indian Bank is committed tostand by its customers. We expect that these credit lines willmeet the immediate liquidity requirements of businesses,"Indian Bank Managing Director Padmaja Chunduru said."SHGs has always been an important part of our businessand with our initiatives we ensure that the group gets all thedesired support for financial independence," she said."We have made these loans repayable over a longer periodbusiness is back on track again," Chunduru, who is also theCEO of the bank, said. The IND-COVID Emergency Credit Line would provideadditional funding of upto 10 per cent of the working capitallimits (both fund based and non-fund based limits) with amaximum limit of Rs 100 crore.Large corporates and medium enterprises would be eligiblefor the loan.The tenure of the loan would be for 36 months with aninitial moratorium of upto six months and would carry fixedinterest rate of 1 year MCLR (Marginal Costs of Funds-basedLending Rate), the release added. VIJ APRRAVINDRANATH APRRAVINDRANATH

Indian Bank unveils five special emergency loans

New Delhi, Jan 27 () The government has nominated additional secretary at the Ministry of Finance, Sanjeev Kaushik, as director on the board of Indian Bank.
 He will replace Amit Agrawal, joint secretary in the Department of Financial Services, Ministry of Finance.
 The union government, through its notification dated January 24, nominated Sanjeev Kaushik, Additional Secretary, Department of Financial Services as nominee director on the board of the bank with immediate effect, Indian Bank said in a regulatory filing.
 Kaushik, a 1992 IAS officer, in his previous stint in the government of India served as Director capital market division of the Finance Ministry. He also served as CEO of Industrial Finance Company (IFCI) and as Deputy Managing Director of India Infrastructure Finance Company (IIFCL). DP DP ANS
ANS

Govt nominates Sanjeev Kaushik on board of Indian Bank

Chennai, July 1 () Public sector Indian Bank on Wednesday announced the elevation of Arun Kumar Bansal as its new Chief Financial Officer (CFO) with immediate effect. Prior to taking up the new role, Bansal was serving the city-based lender as its general manager, the bank said. Bansal succeeds P A Krishnan, who retired from services on June 30 on superannuation, it said in a BSE filing. Bansal(49) has over 29 years of service in the banking sector. He has served the bank in rural, urban and metro branches and also in the treasury and wealth management among many others, the bank said. VIJ ROH ROH

Arun Kumar Bansal is new CFO of Indian Bank

With less than a month left for the rollout of the <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>, the Indian Banks' Association (<keyword id="50362" type="ORGANIZATION" weightage="20" keywordseo="IBA">IBA</keyword>) has informed a Parliamentary panel that lenders are not yet geared up for implementation of the new indirect tax regime, according to a PTI news report. "Since the GST will be operational from July 1, 2017, banks have to make lot of changes in their systems and other procedures. The preparedness of all banks for implementation of GST on July 1, 2017, is a question mark," the IBA has conveyed to the Parliamentary Standing Committee on <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">Finance</keyword>. The IBA further said that several services by banks to customers are centralised while several others are localised. Banks will have to make changes in the existing infrastructure which would be a huge challenge for the banks. The IBA had taken up the case for central registration, the association added. Touted as the biggest taxation reform since independence, the GST will subsume central excise, service tax, VAT and other local levies to create a uniform market. The new indirect sales tax is expected to boost the GDP growth by about 2 percentage points and check tax evasion. The powerful GST Council, comprising representative of Centre and states, has recommended a four-tier tax structure -- 5, 12, 18 and 28 per cent for goods and services. On top of the highest slab, a cess will be imposed on luxury and demerit goods to compensate the states for revenue loss in the first five years of GST implementation. All the states have agreed for the roll out of the new indirect tax regime from July 1.

Banks not yet prepared for GST roll-out: Indian Banks' Association

Mumbai, Mar 26 () The coronavirus-related worries are likely to aggravate difficulties for Indian banks, ratings agency Fitch said on Thursday, revising down the operating environment score for the critical sector by a notch. The score has been revised to "BB" from "BB+" earlier, the agency said, pointing out that COVID-19 outbreak ups the worries for the sector, which is already reeling under weak business and consumer confidence. The outlook on the score is "negative", given the uncertainty surrounding the severity and duration of the pandemic, and the associated effects on India's banks of restrictions on economic activity, it said. The operating environment score was last revised down in 2019 due to the weakness in business and consumer confidence, it said. The lockdown will impact industrial production and domestic demand, it said, adding this will exacerbate the economic slowdown of the past few quarters that was partly caused by weaker credit availability from non-bank lenders from September 2018. It however said the closed nature will help restrict the impact on economic growth in India as compared with Asian peers. The agency said Indian banking system is under-capitalised and continues to to saddled with bad loans, despite some successes. "We believe recent developments will add to these issues and slow the resolution process. It will further test the underwriting standards of those banks that expanded the fastest in recent years, including the private-sector banks, as the sharp disruption in economic activity will lead to worsening asset quality," it explained. From a banking perspective, travel, which forms 2.2 per cent of all loans and small business lending that accounts for 5.4 per cent will be the hardest hit, along with sectors such as auto that depend on inputs from China. It also warned that the retail segment, especially the unsecured ones, may face headwinds as unemployment rises. It said Indian banks' Issuer Default Ratings will face downward rating pressure in the near term as they are based on support from the India sovereign and are at their Support Ratings Floors. But banks like Axis Bank and ICICI Bank, whose viability ratings are above the mid-point score for the system, are susceptible to downward pressure on viability ratings, it said. It acknowledged that both the private sector lenders have better income and capital buffers. AA ANUANU

You Searched For "Indian Bank" and got 8 results

Indian banks to issue bonds to maintain capital levels: CARE Ratings

IANS

These 3 Indian banks are attacked by hackers and this is scary

BI India Bureau

Indian banks well capitalised, no reason to worry: CEA

PTI

Indian Bank unveils five special emergency loans

PTI

Govt nominates Sanjeev Kaushik on board of Indian Bank

PTI

Arun Kumar Bansal is new CFO of Indian Bank

PTI

Banks not yet prepared for GST roll-out: Indian Banks' Association

BI India Bureau

Coronavirus impact to bring more worries for Indian banks: Fitch

PTI

Popular Keywords

Buying Guides