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<ul><li><keyword id="6653" type="General" weightage="20" keywordseo="icici-bank" source="Orion">ICICI Bank</keyword> reported strong December quarter earnings over the weekend as its profit after tax grew by 25% on year to ₹6,194 crore ($833 million).</li><li>Brokerages say the stock price may rise up to 36% in the next one year.</li><li>Check out the latest budget news and updates on <a href="https://www.businessinsider.in/budget">Business Insider</a>.</li></ul>Analysts at brokerage firms have retained ICICI Bank stock among their top picks after the bank delivered another strong quarter over the weekend. <br /><br />Profit after tax for the bank grew by 25% on year to ₹6,194 crore ($833 million) in October to December. The bank reported a 23% on year jump in net interest income (NII) at ₹12,236 crore<br /><div type="image" title="icici bank profit" height="900" width="1200" msid="89086737" hostid="261"></div>However, revenue is expected to remain under pressure as loan growth is still quite sluggish and the recovery is still not uniform, says analyst at Kotak Institutional Equities.<br /><br />“Confidence on earnings delivery and high equity sanctity suggest ICICI is primed for the next cycle. Consistent delivery over the last few years reflects an impressive turnaround, setting a gold benchmark for financiers,” said analysts at Edelweiss.<br /><br />Meanwhile, analysts at Kotak Institutional Equities said, “With each passing quarter we see growing investor comfort in the bank’s performance, fueled by fewer negative surprises on asset quality, growth and its operating metrics.”<br /><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerages<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Implied % change from Friday’s closing price <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Institutional Equities<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹975 <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">21%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,100<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">36%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹935 <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Credit Suisse<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹930 <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JP Morgan<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹930 <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15%<br /><br /></td></tr></tbody></table>On Monday, shares of the bank were choppy, led by market volatility. The stock was up 0.76% at 9:59 a.m. <br /><br />Also, the bank has grown its credit card business quite well in the last one year when HDFC Bank was barred from selling new cards to clients from December 2020 to August 2021.<br /><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Top 5 banks<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Credit card customer base as of Nov 2021<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">1.55 crore<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">State Bank of India<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">1.29 crore<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">1.21 crore<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">79.05 lakh<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Kotak Mahindra Bank<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> 26.32 lakh<br /><br /></td></tr></tbody></table><br /><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/there-is-a-silver-lining-in-vodafone-ideas-dark-numbers/articleshow/89086056.cms">There is a silver lining in Vodafone Idea’s dark numbers</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-wilmar-is-looking-to-acquire-southern-players-in-edible-oil-fmcg-industry/articleshow/89080514.cms">Fortune oil maker Adani Wilmar is looking to acquire southern players in edible oil, FMCG industry</a>

ICICI Bank shares are sulking with the rest of the market, but analysts say it could make a lot of money for investors

<keyword id="1564214" type="COMPANY" weightage="20" keywordseo="the-Enforcement-Directorate">The Enforcement Directorate</keyword> on Monday raided at least five premises of global tours and <keyword id="9364371" type="UNKNOWN" weightage="20" keywordseo="travel-company-cox">travel company Cox</keyword> and Kings in Mumbai in connection with the <keyword id="45660" type="COMPANY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> <keyword id="6355008" type="UNKNOWN" weightage="20" keywordseo="Money-laundering">money laundering</keyword> probe case, officials said. The teams of the central agency are carrying out the searches under the Prevention of Money Laundering Act (PMLA), they said. <br /><br />Cox and Kings was one of the top borrowers of the bank and the latter had an exposure of about Rs 2,260 crore to the company, the officials said. <br /><br />The searches are aimed at gathering more evidence in the case and five premises are being covered, they said. <br /><br />The ED is probing Yes Bank and a number of other large corporate groups in connection with an alleged fraud case where huge loans issued by the bank became non-performing assets (NPAs). <br /><br />It arrested Yes Bank co-founder Rana Kapoor in March this year and recently filed its first charge sheet in the case before a special PMLA court in Mumbai. <br /><br /><strong>SEE ALSO: <a href="https://www.businessinsider.in/retail/e-commerce/news/flipkart-is-putting-the-money-where-its-mouth-is-and-its-not-food-and-groceries-yet/articleshow/76256592.cms" data-type="tilCustomLink">Flipkart is putting the money where its mouth is⁠— and it’s not food and groceries yet</a><br /><br /></strong><a href="https://www.businessinsider.in/business/corporates/news/hero-motocorp-profit-revenue-for-q4-march-2020-preview-share-price-chart-and-sales-data/articleshow/76256963.cms" data-type="tilCustomLink"><strong>Hero MotoCorp shareholders are betting that people will go for cheaper bikes after the pandemic</strong></a><br />

Yes Bank's top borrower Cox and Kings sees raids at five of its premises

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div><span>SHANGHAI/HONG KONG (Reuters) - Squeezed between cut-throat competition from online financing firms and rising funding costs, China's midsize banks are falling out of investors' favor as they increasingly lag behind the country's top five lenders.</span></p>
<p>While margins generated from lending have remained broadly stable at the larger banks, they have shrunk considerably for the second-tier lenders like China Everbright Bank &lt;601818.SS&gt; and China Merchants Bank &lt;600036.SS&gt; over the past six months, a Reuters data analysis shows.</p>
<p>And like some of their European peers, those smaller lenders are also lagging behind the big banks in terms of balance sheet strength, analysts say, a factor that is likely to be highlighted in the banking sector's third-quarter earnings.</p>
<p>China's five biggest banks are Industrial and Commercial Bank of China Ltd &lt;601398.SS&gt;&lt;1398.HK&gt; (ICBC), China Construction Bank Corp &lt;601939.SS&gt;&lt;0939.HK&gt; (CCB), Agricultural Bank of China Ltd &lt;1288.HK&gt;&lt;601288.SS&gt;, Bank of China (BoC) &lt;601988.SS&gt; &lt;3988.HK&gt; and Bank of Communications Co Ltd &lt;601328.SS&gt; &lt;3328.HK&gt;.</p>
<p>"The divergence between big and medium or small-sized banks will increase, as the latter see higher fundraising risks due to their weaker capital base," said Fan Cheuk Wan, chief investment officer Asia Pacific in Credit Suisse's private banking and wealth management unit.</p>
<p>CCB is due to kick off the banking sector's third-quarter earnings season on Thursday.</p>
<p>Second-tier lenders, also known as joint stock banks, have, on average, a market capitalization of less than 300 billion yuan, significantly smaller than the big five lenders.</p>
<p>Chinese banks' net interest margins (NI Ms), or the gap between what the lenders pay out for deposits and rake in from loans, have come under pressure from aggressive competition from online financing firms such as e-commerce group Alibaba's <baba.n> Yuebao platform.</baba.n></p>
<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div>This is particularly a problem for smaller banks, which have to pay more to fund themselves as their regulatory capital ratio - a measure of balance sheet strength - is on average 1.5 percentage points weaker than that seen at the larger players.</p>
<p>"Net interest margins are likely to decline faster for smaller banks in China going forward, as they face rising costs of funding," said Vincent Chan, head of China research at Credit Suisse.</p>
<p>The average net interest margin for China's top five banks, has remained stable at around 2.6 percent over the last year.</p>
<p>In contrast, the next seven banks saw this key indicator of profitability drop to 1.86 percent in the second quarter from levels previously comparable to the big banks. The margins are seen falling further in the third-quarter.</p>
<p>To counter the profit squeeze, investors say second-tier lenders may look to innovate by embracing online finance.</p>
<p>"Online e-commerce is one area where the small- and mid-sized banks are a lot more flexible in partnering with a lot of the e-commerce retailers," said Tony Chu, who manages a portfolio for RS Investments, a fund with $24 billion of capital and positions in Chinese banks.</p>
<p>The big five banks also benefit from closer ties to the country's top state-owned companies, known as SOEs. Lending to these conglomerates is considered much safer because of implicit government guarantees.</p>
<p>"Large SOEs will emerge as winners and you want to be the bank that's lending to them, not the guys that are going to be driven out," said Matthew Smith, a banks analyst at Macquarie. Smith said he was positive about ICBC and CCB versus the smaller lenders since they count more large public companies among their clients.</p>
<p>(Editing by Lisa Jucca and Miral Fahmy)</p>

China's Midsize Banks Are Being Squeezed

<p>JPMorgan banks analysts led by Kian Abouhossein published a 110-page note on Wednesday about the key investment themes for the financial sector.</p><p>There are lots of interesting tidbits, covering revenue expectations for key trading lines and the prospect of additional job cuts. </p><p>This chart also jumped out. It shows the top players in fixed income, currencies and commodities, and equities, based on JPMorgan estimates. </p><p><span>The top five in each market have a combined market share of more than 50%, and it is these banks, according to JPMorgan, which will prove to the be the winners in each market over the long term. </span></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>JPMorgan</span></p></div><p></p></div></div></p><p>It is noticeable that there are a few banks that appear in both: JPMorgan, Goldman Sachs and Bank of America Merrill Lynch.</p><p>Then there are banks which feature in the top five in one business line, and are investing to make up market share in another, such as Deutsche Bank and Citigroup. The two banks are inside the top five by market share in fixed income, and have set out plans to invest in equities, where they are off the pace.</p><p>And finally, there are banks like Credit Suisse, Morgan Stanley and UBS which have a strong market position in equities, and have de-emphasized fixed income, currencies and commodities. </p>

It's pretty clear who the long-run winners on Wall Street are going to be

New Delhi, Dec 18 () Reliance Industries has emerged as the biggest wealth creator during 2014-19 by adding Rs 5.6 lakh crore of wealth, according to a study.
 The top-100 wealth creators generated Rs 49 lakh crore during 2014-19, the highest-ever quantum of wealth added, according to Motilal Oswal's Annual Wealth Creation Study 2019.
<br /><br /> "After a gap of 7 years, Reliance Industries has once again emerged the biggest wealth creator over 2014-19. A total of Rs 5.6 lakh crore wealth created by Reliance is the highest-ever so far by a huge margin," it added.
<br /><br /> According to the study that was released on Wednesday, Reliance Industries, Indiabulls Ventures and IndusInd Bank are the biggest, fastest and most-consistent wealth creators, respectively.
<br /><br /> Indiabulls Ventures is the fastest wealth creator for the second time in a row, with stock returns at a whopping 78 per cent compound annual growth rate (CAGR).
<br /><br /> The study added that Bajaj Finance has the unique distinction of being in the top-10 biggest as well as fastest wealth creators.
<br /><br /> Also, IndusInd Bank is the most-consistent wealth creator by recording the highest CAGR of 49 per cent over the 10-year period of 2009-19.
<br /><br /> During 2014-19, Sensex's CAGR was only 12 per cent but the pace of wealth creation was at 22 per cent CAGR.
<br /><br /> "This reinforces the point that wealth creation happens in all kinds of market conditions," it said.
<br /><br /> The study by the financial services company further added that the financial sector has emerged as India's biggest wealth-creating sector over 2014-19 for the third consecutive year.
<br /><br /> The surge in wealth creation in the sector has been led by private banks and non-banking financial companies (NBFCs).
<br /><br /> Public sector undertakings' (PSUs) wealth creation performance remained weak during 2014-19. The number of PSUs in the top-100 wealth creators is only nine, namely IOC, BPCL, HPCL, Power Grid Corporation, Petronet LNG, Indraprastha Gas, LIC Housing, Bharat Electronics and NBCC.
<br /><br /> The total wealth destroyed during 2014-19 is Rs 8.6 lakh crore. Similar to last year's study, the financial sector has the unusual distinction of being the biggest wealth creator thanks to private banks and NBFCs and also the second biggest wealth destroyer thanks to state-owned banks.
<br /><br /> The Motilal Oswal's Annual Wealth Creation Study 2019 analyses the top-100 wealth-creating companies.
<br /><br /> Wealth created is calculated as change in the market capitalisation of companies between 2014 and 2019, duly adjusted for corporate events such as mergers, de-mergers, fresh issuance of capital, and buyback, among others. <br /><br /><strong>SEE ALSO:</strong><br /><a href="https://www.businessinsider.in/stock-market/news/2019-fpi-inflow-data-insurance-and-tech-stocks/articleshow/72741166.cms" data-type="tilCustomLink" target="_blank">The amount of Indian insurance stocks foreign investors hold has grown ten-fold in just about a year</a><br /><br />

The top three stocks in last five years — Reliance Industries, Indiabulls Ventures, and IndusInd Bank

<p><span style="font-size: 15px; line-height: 1.5em;"><div class="KonaFilter image-container display-table float_right"><div><div class="image"><p class="source"><span>REUTERS/Yuri Maltsev</span></p><p class="caption">U.S. strongman Andy Vincent strains as he lifts a weight during the Pacific Strong competition in Russia's far eastern port of Vladivostok August 14, 2011. Vincent and teammate Travis Ortmayer took on and beat a Russian team in various tests of strength. </p></div><p></p></div></div>This year's list of top-performing banks is</span><span style="line-height: 1.5em;"> in, and one thing's clear - Asia is definitely winning.</span></p>
<p><span style="line-height: 1.5em;">The list comes from <a href="http://www.bloomberg.com/news/2014-06-15/hang-seng-bank-tops-list-of-strongest-lenders.html">Bloomberg Markets Magazine</a>, which ranked 97 banks around the world with at least $100 billion in assets.</span></p>
<p><span style="line-height: 1.5em;">Eight out of the 21 top banks are Asian, including the number one spot. Within regions, four out of the five top banks in North America are Canadian. Only one U.S. bank made the top 21.</span></p>
<p><span style="line-height: 1.5em;"><span>The 2014 r</span><span>ankings saw some new names, since Bloomberg decided to throw private banks into the mix this year, two of which tied for second.</span></span></p>
<p><span style="line-height: 1.5em;"></span><span style="line-height: 1.5em;">Rankings were determined by five criteria, in order of importance:</span></p>
<p>1. Ratio of T<span style="line-height: 1.5em;">ier 1 capital to risk-weighted assets<br />2. Ratio of nonperforming assets to total assets<br />3. Ratio of reserves for loan losses to nonperforming assets<br />4. Ratio of deposits to funding<br />5. Ratio of costs to revenues</span></p>
<p> </p>

The World's 21 Strongest Banks In 2014

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Acorns</span></p><p class="caption">The Acorns app.</p></div><p></p></div></div>There was a time when retail banks had their heads in the sand when it came to embracing the mobile phone revolution - but not anymore.</p><p>A new report from App Annie shows that while apps from retail banks still lag behind those of their upstart competitors in user ratings, some have have seen their usage grow rapidly, buoyed by new features.</p><p>Take Citi, which App Annie cites as "best-in-class" for retail banks. The app saw usage balloon as Citi added features, particularly a FICO score, which App Annie points out is a central feature of popular startup Credit Karma. It seems retail banks are looking to startups for inspiration.</p><p>Here's a sketch from App Annie of how Citi's usage has climbed (MAU = monthly active users):</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="App Annie" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/582ce8d7e02ba72b318b4803-960/screen shot 2016-11-16 at 6.15.26 pm.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>App Annie</span></p></div><p></p></div></div></p><p>But it's not all about new features, App Annie's Senior Manager of Market Insights, Amir Ghodrati, tells Business insider.</p><p>The most common word App Annie sees in five-star reviews for finance apps is "easy." Their clean design is likely one reason why the top apps from finance startups, from Venmo to Robinhood to Acorns, still beat the top retail banks in user reviews, scoring an average 4.2-star review (as opposed to the 3.6 by the retail banks).</p><p>Here's a graphic that shows how the top apps stack up:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="App Annie" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/582ce987e02ba7e5008b4c7a-960/screen shot 2016-11-16 at 6.08.44 pm.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>App Annie</span></p></div><p></p></div></div> </p><p>Still, the built-in user base of retail banks is hard to deny. The top retail banking apps generally beat the top fintech startup ones. Here's a chart that shows the top five of each:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="App Annie" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/582ceae3e02ba735318b4802-960/screen shot 2016-11-16 at 6.24.22 pm.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>App Annie</span></p></div><p></p></div></div></p><p>And if you're curious what the top apps were for each category, measured by monthly active users, here they are:</p><div><strong>Top Retail Banking Apps by MAU - US - Q3 2016 - Android Phone &amp; iPhone</strong></div><ol><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000003693/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000003693/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNHt7lNNrG8ZiYJzcUIUWgItEnxDPQ">Chase Mobile</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000436522/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000436522/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNGINDVj6mWDWxVwrwW9yCDIaF4uAQ">Bank of America Mobile</a><span> </span></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000003692/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000003692/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNGjOByXXIvWCblbq3YNIBCjbiR9rQ">Wells Fargo Mobile</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000440398/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000440398/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNGIXI25O7Fh3AblCDNzeU8ttuE7nA">Capital One Mobile</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000525514/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000525514/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNFOev0dMLYl1aB7kalJafcoB8z03g">Discover Mobile</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000447248/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000447248/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNGbHOqOwzzcu83sClloSdjLS8GtCQ">Citi Mobile</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000447259/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000447259/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNGpABWbt2hxie3OyIcWt2oe8CsgUQ">USAA</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000447312/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000447312/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNFL7Gd-rE88t1k5PFChC96cFK6PiA">Amex</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000513302/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000513302/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNEI9uYeVsTzcf9ZfESLY4w0WsEhqw">U.S. Bank</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000528335/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000528335/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNFu4rjK_eh_PB9zbxK8KVEfSDHRug">PNC Mobile</a></li></ol><div><strong>Top Fintech Apps by MAU - US - Q3 2016 - Android Phone &amp; iPhone<span> </span></strong> </div><ol><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000001310/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000001310/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNFp0uKrOceyrSXhBZy8pxNHqnEEnQ">PayPal</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000447691/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000447691/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNGlTL0zRPEEbPuBQoPyeeb0WtbV5Q">Credit Karma</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000447307/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000447307/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNH5iKGqL-PALIKmuHeM0RMyq_b3wA">Venmo</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000003695/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000003695/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNH9RNP1HS4yxegozy-HbEvrMJzt8Q">Mint.com</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000521059/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000521059/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNHM23NMb60h2Q4Wl5To0bArsyU93g">Android Pay</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000447991/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000447991/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNEXoYaZr2ZN0xzm_t3ev8IM5gcXTA">Square Cash</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000487099/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000487099/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNFIQj-A9sbGIDe3eiYbnE_Gi5kFBA">Robinhood</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000523885/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000523885/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNG9-xTEoWnODNhbANnpp9vWztpLLw">Acorns Invest</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000447837/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000447837/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNG2meeKaElRIDF8_Qj3aluIUYtR-Q">Google Wallet</a></li><li><a href="https://www.appannie.com/apps/all-stores/app/1000600000512946/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.appannie.com/apps/all-stores/app/1000600000512946/&amp;source=gmail&amp;ust=1479423262774000&amp;usg=AFQjCNEtgAQJooBwzM_LEXPMZgpj4KhiGg">Mint Bills</a></li></ol><p class="tagline"><div id="categorypromo" style="border:1px solid silver; min-height:90px; padding:10px;vertical-align:top;"><a href="http://read.bi/fintechleadgen"></a><strong> EXCLUSIVE FREE REPORT:</strong><br />5 Top Fintech Predictions by the BI Intelligence Research Team. <strong><a href="http://read.bi/fintechleadgen">Get the Report Now »</a></strong></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/inside-sneaker-con-convention-sneakerheads-millions-selling-trading-2016-11">Here's what it's like inside Sneaker Con - where people spend millions selling and trading sneakers</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="tra2NuNzE6dT8OkbHBXi5lAOBxTxVFDi" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

How the top banking apps stack up against their startup competitors

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Shutterstock</span></p><p class="caption">Atlanta, Georgia, is one of the top contenders for Amazon's HQ2.</p></div><p></p></div></div></p><ul><li><strong>Bank of America Merrill Lynch revealed its top five picks for <a href="http://www.businessinsider.com/category/amazon">Amazon</a>'s <a href="http://www.businessinsider.com/category/amazon-hq2">HQ2 project</a>.</strong></li><li><strong>Atlanta, Georgia; Denver, Colorado; Washington, DC; Boston, Massachusetts; and Raleigh, North Carolina, all made the list.</strong></li><li><strong>HQ2 will have drastic economic impacts on the chosen city.</strong></li></ul><p>The race is on for <a href="http://markets.businessinsider.com/stocks/amzn-stock">Amazon</a>'s second headquarters project.  </p><p>According to Bank of America's analytics, the top contenders are currently Atlanta, Boston, Denver, Colorado, Raleigh, and Washington, DC. <a href="http://www.businessinsider.com/amazon-hq2-could-be-in-washington-dc-heres-the-evidence-2018-3">DC's inclusion on the list</a> also includes Montgomery County, Maryland, and Northern Virginia. These results are in alphabetical order and are not ranked otherwise.</p><p><a href="http://www.businessinsider.com/amazon-reveals-hq2-candidates-2018-1">Amazon released a short list of 20 cities</a> it was still considering in January. </p><p>Bank of America considered two factors in choosing the cities: how closely each city mirrors Seattle, and how attractive the city's financial, employment, education, business, housing, transportation, and innovation sectors are. </p><p>Both methodologies were ranked equally, and a composite score was awarded, which is how Bank of America arrived at the top five cities.</p><p>The analysts judged each factor equally, as Amazon hasn't given too much information about how it will rank each one when considering cities. One thing that could potentially sway Amazon's favor is the tax benefits and incentives each city will offer, which are being negotiated behind closed doors at this stage of the game and aren't available to the public for ranking.</p><p>Amazon's HQ2 project is one of the most closely watched business endeavors in America right now. And for good reason, as the chosen city stands to inherit a bevy of benefits, like $5 billion in local investment and 50,000 new jobs.</p><p>Looking at credit-card data, Bank of America found that Seattle's <keyword id="6354851" type="ORGANIZATION" weightage="100" keywordseo="Retail">retail</keyword> sales, excluding cars and gas, grew 30% from 2011 to 2017, while nationally the average rate of growth was only 21% over that period. Both airlines and car dealerships operating out of the five cities identified by Bank of America stand to gain substantially, the bank noted.</p><p>A <a href="http://www.businessinsider.com/amazon-hq2-worth-billions-to-local-economies-2018-2">study funded by the state of Maryland</a> found that HQ2 could have economic effects of up to $17 billion a year on the state once everything is up and running.</p><p class="tagline"><div id="categorypromo" style="border:1px solid silver; min-height:90px; padding:10px;vertical-align:top;box-sizing: content-box;"><a href="http://read.bi/retail-2018"></a><strong>EXCLUSIVE FREE SLIDE DECK:</strong><br>The Future of Retail 2018 by the BI Intelligence Research Team.<br><strong><a href="http://read.bi/retail-2018">Get the Slide Deck Now »</a></strong></br></br></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/rise-and-fall-of-hooters-airline-myrtle-beach-bob-brooks-atlanta-airplanes-2018-2">The rise and fall of Hooters Air - the airline that lost the 'breastaurant' $40 million</a></h3>        <div>                    </div>    </div>

These are the top 5 contenders for Amazon's HQ2, according to Bank of America

Andhra Bank, Punjab and <keyword id="149809" type="COMPANY" weightage="20" keywordseo="Sind-Bank">Sind Bank</keyword> and <keyword id="6361176" type="CITY" weightage="20" keywordseo="State-Bank">State Bank</keyword> of No matter whether the banks got a logo makeover or looks chic inside, not a single public service bank has secured a position in Top 10 chart of service standards, as shown by the <keyword id="414760" type="ORGANIZATION" weightage="20" keywordseo="Banking-Codes-and-Standards-Board-of-India">Banking Codes and Standards Board of India</keyword> (BCSBI).<br />And the ones coming in the top 5 are RBL Bank, Standard Chartered Bank, Yes Bank, Citibank and HSBC. Punjab National Bank, State Bank of Bikaner and Jaipur, Andhra Bank, Punjab and Sind Bank and <keyword id="4376212" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Patiala">State Bank of Patiala</keyword> have hit the lowest position. The BCSBI - a body set up by the Reserve Bank of India (RBI) - is a society of banks that prescribes minimum service standards for lenders. By promising adherence to the codes, banks spell out the minimum service standards customers can expect.<br /><br />According to <keyword id="6474066" type="COMPANY" weightage="20" keywordseo="economic-times">Economic Times</keyword> report, the survey was conducted using five parameters - information dissemination, transparency, grievance redressal, customer centricity and customer feedback. Banks have been ranked in each of the parameters and an overall rank has been provided. When compared to the last such survey in 2015, both public sector and private sector banks have seen their score drop across all parameters, except grievance redressal. Foreign banks have improved their performance on transparency, customer feedback and customer centricity.<br />Andhra Bank, Punjab and Sind Bank and State Bank of No matter whether the banks got a logo makeover or looks chic inside, not a single public service bank has secured a position in Top 10 chart of service standards, as shown by the Banking Codes and Standards Board of India (BCSBI).<br />And the ones coming in the top 5 are RBL Bank, Standard Chartered Bank, Yes Bank, Citibank and HSBC. Punjab National Bank, State Bank of Bikaner and Jaipur, Andhra Bank, Punjab and Sind Bank and State Bank of Patiala have hit the lowest position. The BCSBI - a body set up by the Reserve Bank of India (RBI) - is a society of banks that prescribes minimum service standards for lenders. By promising adherence to the codes, banks spell out the minimum service standards customers can expect.<br /><br />According to Economic Times report, the survey was conducted using five parameters - information dissemination, transparency, grievance redressal, customer centricity and customer feedback. Banks have been ranked in each of the parameters and an overall rank has been provided. When compared to the last such survey in 2015, both public sector and private sector banks have seen their score drop across all parameters, except grievance redressal. Foreign banks have improved their performance on transparency, customer feedback and customer centricity.<br /><br />

These government banks have the worst service record, according to RBI approved body

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Reuters</span></p></div><p></p></div></div>European investment banks, particularly Deutsche Bank, are in trouble - and for the first time since the tail end of the financial crisis not a single European lender is in the top five global investment banks, according to the latest data from Coalition.</p><p>Coalition, which monitors the investment banking industry and produces a league table of the top performers twice per year,<a href="http://uk.businessinsider.com/wall-street-banks-ranked-2016-9/#jpmorgan-is-a-clear-winner-with-a-top-three-position-in-every-business-except-cash-equities-1"> says that in its most recent ranking, released on Friday, </a>Deutsche Bank has now dropped to be just the sixth "best" investment bank on the planet.</p><p>The ranking is based on a series of factors, including how much revenue banks make from trading on the markets in equities, fixed income, commodities etc, but also looks at traditional IB activities, like advice, deal making, and financing.</p><p><a href="http://uk.businessinsider.com/wall-street-banks-ranked-2016-9/#jpmorgan-is-a-clear-winner-with-a-top-three-position-in-every-business-except-cash-equities-1">All five of the world's top banks are now located in the United States of America,</a> after Morgan Stanley leap-frogged Deutsche Bank in the list. Prior to last year, Germany's biggest bank was a near permanent feature in the top three of Coalition's lists, but since CEO John Cryan began a major restructuring of the bank to protect its struggling overall business, investment banking has taken something of a back seat.</p><p><span>Obviously falling in Coalition's ranking is not in of itself particularly worrying, but it does reflect a broader malaise in the bank, and will add to the heaping pile of worries affecting the lender. Earlier this week for instance, <a href="http://uk.businessinsider.com/fdic-report-on-leverage-ratio-names-deutsche-bank-as-riskiest-2016-9">the United States Federal Deposit Insurance Corporation named Deutsche Bank the "riskiest" of all the globally systemically important banks</a> - those banks </span><span>whose failure would threaten a financial crisis and economic collapse.</span></p><p><span> The FDIC noted that t</span>he bank has a leverage ratio of 2.68%, lower than any other GSIB. The leverage ratio is a measure of a bank's financial sustainability, and shows how much equity capital a lender has against assets such as loans.<span><br /><br /></span><span>"The Coalition results reflect the strategic decisions we have taken to streamline our products, geographical footprint and client base. These decisions impacted first-half revenues but will make us more efficient and profitable. We remain the leading non-US investment bank globally and a top two player in Emea," Deutsche Bank commented, <a href="http://www.ft.com/cms/s/0/2a2b370c-80d6-11e6-bc52-0c7211ef3198.html?siteedition=uk#axzz4KhdDZqYR">according to the Financial Times.</a></span></p><h2><span>It's not just Deutsche Bank feeling the pain</span></h2><p><span>Deutsche Bank may be the clearest example of the woes being felt by European banks, but it certainly is not the only one struggling. </span>Other big firms have been scrambling to find a new business model that more than covers the cost of their capital. Credit Suisse is a good case in point.</p><p>The bank's CEO, Tidjane Thiam, has tried to steer away from trading towards providing more services for high-net worth individuals. <a href="http://uk.businessinsider.com/credit-suisse-cutting-trading-jobs-2016-5">In May, the bank cut around 100 jobs in its London-based global markets division.</a></p><p>As a result, the Swiss lender has slipped from seventh to eighth in Coalition's ranking for the first half of 2016, swapping places with Barclays, whose IB business has likely received a boost since new CEO Jes Staley - who is an investment banker through and through, having spent 34 years working for JP Morgan's IB arm - took the reins late last year.</p><p><span>Coalition's latest ranking comes <a href="http://uk.businessinsider.com/coalition-survey-of-the-death-of-investment-banking-in-4-charts-2016-9/#the-cuts-arent-working-yet-despite-these-cost-savings-coupled-with-reductions-in-rwaleverage-exposure-investment-bank-roe-remains-under-pressure-reflecting-the-negative-revenue-dynamic-1">at a time when investment banking across the globe is facing serious challenges, with revenues falling for banks across the board</a>. Coalition noted earlier in September that r</span>egulation, sluggish economic activity, and political uncertainty have all combined to depress revenues.</p><p>Tougher capital and conduct rules, in the wake of the financial crisis and market manipulation scandals, have made it more difficult to make money from trading debt, currencies and commodities.</p><p><span><span>Revenues for investment banks started falling five years ago, and haven't stopped yet. Investment banking income for the first half of 2016 was lower than that of 2008 - the year that saw the fall of Lehman Brothers and the peak of the financial crisis - Coalition data showed.</span></span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/australia-new-bill-transparent-5-bank-note-holograms-2016-9">Australia's new money is literally transparent</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="xmNmF1NTE6vMy3djpoxnOjWgZmTuU74q" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Deutsche Bank is losing its place at the top table of investment banking

Mumbai, Jul 10 () Top five private sector banks may see their slippages double to 5 per cent this fiscal due to the poor loan offtake and the moratorium-driven contraction in net interest margins, warns a report. <p>These five banks--HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank and Yes Bank--collectively control a quarter of the system and three-fourths of the private banking space, according to a report by India Ratings on Friday. </p><p>"We forecast FY21 slippages to nearly double to around 5 per cent for these banks from 2.3 per cent in FY19 and 2.7 per cent in FY20, even though net slippages would be lower if refinancing remains a challenge, resulting in a 4 per cent contraction in their net interest margin," says the report. </p><p>As loan demand remains tepid, banks are parking their excess liquidity in low yielding alternatives such as government bonds and top-rated corporate securities due to their higher credit risk perception and widening duration spreads, even as deposit inflows have been robust. </p><p>On the other hand, growth in deposits for these top five private banks in FY20 was 18.8 per cent which was 18.5 per cent in FY19, while loan growth declined to 15 per cent from 19.1 per cent during this period. Additionally, the Reserve Bank has injected Rs 1.7 lakh crore of liquidity into the system over the last six months through open market operations and secondary market purchases. </p><p>Without quantifying, the report expects a significant spike in delinquent assets due to the deep troubles the economy is facing due to the impact of the GDP destruction on the banking sector in the aftermath of COVID-19 pandemic. </p><p>Additionally, banks have moved a large amount of the surplus liquidity into reverse repo where the rates have declined by 215 bps in the last one year, yielding 3.35 per cent and with cost of funds falling to 5-6 per cent, this could result in a negative carry. </p><p>Over FY17-FY20, net advances of these five private banks and bank credit grew at a CAGR of 15.7 per cent and 9.1 per cent, respectively, while the unsecured retail portfolio grew at a CAGR of 21.8 per cent, and these give banks have increased the proportion of unsecured retail portfolio over the same period. </p><p>Analysts at the agency also expect pre-provisioning operating profit or operating buffers of these lenders to be about 80 bps lower than their steady state pre-provisioning operating profit, which in FY20 was 4.9 per cent which may curtail their ability to withstand credit costs without capital erosion, the report warned. </p><p>Analysts at the agency attributed fall in operating buffers as outcomes of lower portfolio yields due to an increase in slippages; poor loan growth and transaction volumes and the resultant lower fee and other income; slower pace of repricing for deposits reflecting the falling interest rates; and higher liquidity deployed in low earning government securities or under reverse repos. </p>Stating that the impact of the rising bad loans "will not be benign," the report notes that this comes at a time when sector was putting its house in order after the last six painful years on the corporate side, even though retail, SME and agri loans were already showing up pain areas before the pandemic hit all of us. BEN MR

Top 5 pvt banks stare at NPAs doubling to 5% in FY21

<ul class="summary-list"><li>The Fed's Bank Term Funding Program may inject $2 trillion into US banking, JPMorgan said.</li><li>The emergency lending mechanism was created after SVB's failure to help prevent similar bank runs.</li></ul><p>After the collapse of three lenders last week, the Federal Reserve may inject up to $2 trillion into the banking system, according to a Wednesday note from <a href="https://markets.businessinsider.com/stocks/jpm-stock?miRedirects=1">JPMorgan Chase</a>. </p><p>The estimate comes after the central bank's <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm" target="_blank" rel="noopener">weekend announcement</a> that it's creating an emergency loan mechanism dubbed the Bank Term Funding Program. The initiative is meant to prevent the kind of run on deposits that sank Silicon Valley Bank last week after it sold a bond portfolio for a <a href="https://www.businessinsider.com/svb-failure-what-the-hell-happened-2023-3">$1.8 billion loss</a>.</p><p>"The usage of the Fed's (Bank Term Funding Program) BTFP is likely to be big," JPMorgan analysts said.</p><p>The BTFP will allow banks to obtain liquidity by putting up their bond holdings as collateral. The Fed will accept the bonds at face value, instead of the current lower market values that weighed on SVB's holdings.  </p><p>Although no official quantity has been put on the BTFP by the Fed, it has said the program is big enough to cover all uninsured deposits in the US.</p><p>JPMorgan put that around $7 trillion but noted that the five largest banks are unlikely to use the BTFP, bringing the amount the Fed will actually provide closer to $2 trillion.</p><p>That volume of liquidity would help loosen financial conditions after a year of aggressive rate hikes from the Fed as well as its <a href="https://markets.businessinsider.com/news/bonds/federal-reserve-balance-sheet-inflation-rate-hike-monetary-policy-crash-2022-11">quantitative tightening</a>.</p><p>In fact, the Fed's monetary policies have worsened a reserve scarcity in US banking, JPMorgan said. The scarcity issue is made more problematic by an uneven distribution of liquidity: of the $3 trillion of reserves held by US banks, almost half is concentrated among the top five banks. </p><p>Meanwhile, <a href="https://www.google.com/search?q=depositors+move+to+big+banks+insider&amp;source=lnms&amp;sa=X&amp;ved=2ahUKEwi3y9mq1OD9AhVGFFkFHfUKBjoQ_AUoAHoECAEQAg&amp;biw=1440&amp;bih=821&amp;dpr=2" target="_blank" rel="noopener">small-bank depositors</a> have been fleeing to bigger institutions in the aftermath of SVB. And as many regional banks lack the funds to settle these withdrawals, they are pressed to sell more of their bonds, uncovering further reserve weakness, JPMorgan added. </p>

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