RBI rejects Indiabulls Housing-Lakshmi Vilas Bank merger, credit growth at a 22-month low; all this and more in MoneyControl Pro
5 years, 2 months ago

RBI rejects Indiabulls Housing-Lakshmi Vilas Bank merger, credit growth at a 22-month low; all this and more in MoneyControl Pro

Firstpost  

When it came to a decision on the Lakshmi Vilas Bank-Indiabulls Housing Finance merger, it was always a lose-lose situation for the Reserve Bank of India. Credit growth at a 22-month low Bank credit growth as of 27 September 2019, fell to 8.8 percent compared to a year ago, the lowest rate of growth since November 2017. The continuing fall in bank credit growth not only indicates that GDP growth for the September quarter is likely to be low but also that far from showing any improvement, the fall in credit growth accelerated last month. While the management sounded confident about long-term structural tailwinds and deserves kudos for record deal wins in the quarter, the weak commentary on near-term growth certainly points to a soft FY20.

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History of this topic

India’s banking credit growth to remain subdued in FY2026, lowered forecast: ICRA
1 week ago

India’s banking credit growth to remain subdued in FY2026, lowered forecast: ICRA

Live Mint  

New Delhi, January 2 : Credit rating agency ICRA has lowered its banking credit growth estimate for FY2025 to 10.5-11.0 per cent, down from its previous forecast of 11.6-12.5 per cent. For FY2026, ICRA anticipates a further slowdown in credit growth, estimating a range of 9.7-10.3 per cent, influenced by the high CD ratio and upcoming changes in the liquidity …

Banking reforms need to get a lot more ambitious for the economy’s sake
1 month ago

Banking reforms need to get a lot more ambitious for the economy’s sake

Live Mint  

The 19 amendments to banking laws that were passed by the Lok Sabha on Tuesday remove various niggles in extant provisions, straighten out some others and make life easier for bank customers, especially a tweak that allows four nominees per account. While more than 90% of India’s nearly 60 million MSMEs are micro sized and best served by specialized non-bank …

At India’s largest bank, all eyes on premium customers
2 months ago

At India’s largest bank, all eyes on premium customers

Live Mint  

Mumbai: State Bank of India may be taking the higher road as it joins the scramble for customer funds without resorting to a rate war, but its outlook signals an extended industry struggle for deposit growth. India’s largest bank on Friday tempered its guidance on deposit growth to 10-11% from 12-13% for 2024-25 as customers might have now found more …

Indian banks well placed to ride on economic growth: Moody’s
6 months, 4 weeks ago

Indian banks well placed to ride on economic growth: Moody’s

The Hindu  

Indian banks and non-bank finance firms are well placed to seize opportunities from India’s strong economic prospects through lending growth in sectors like infrastructure, energy transition, manufacturing, small businesses and retail, Moody’s Ratings said on Wednesday. Moody’s said credit quality of India’s financial system has strengthened over the past 3-4 years due to record-high profitability, low delinquencies and stable domestic …

RBI action on Kotak Mahindra Bank may restrain credit growth, profitability: S&P
8 months, 2 weeks ago

RBI action on Kotak Mahindra Bank may restrain credit growth, profitability: S&P

New Indian Express  

NEW DELHI: S&P Global Ratings on Friday said the RBI's regulatory action on Kotak Mahindra Bank could restrain the lender's credit growth and profitability. The RBI on Wednesday barred Kotak Mahindra Bank from issuing fresh credit cards and onboarding new customers online. "We anticipate Kotak Mahindra Bank could potentially take a year to fully address the RBI's key concerns for …

Credit growth trajectory likely to slow down to 12-14% YoY over FY25-27, says Emkay Global
9 months, 2 weeks ago

Credit growth trajectory likely to slow down to 12-14% YoY over FY25-27, says Emkay Global

Live Mint  

India’s banking sector is expected to face a slowdown in credit growth and with banks exhausting strategies to sustain margins, the imperative for mobilizing deposits emerges, analysts said. The credit growth trajectory is expected to slow down to 12-14% year-on-year over FY25-27E from the current 16.5% YoY, according to Emkay Global Financial Services. The overall deposit growth and more so …

Keep an eye on these economic indicators in 2023
2 years ago

Keep an eye on these economic indicators in 2023

Live Mint  

Global headwinds, tightening monetary policy and the lingering effects of the pandemic have combined to create a gloomy global outlook. In its December bulletin, the Reserve Bank of India said that with balance of risks being tilted towards a darkening global outlook and emerging markets appearing more vulnerable, the Indian economy needs support from domestic growth drivers. Sectoral deployment of …

Indian banks to see record credit growth of over ₹19 trillion in FY23: Icra
2 years ago

Indian banks to see record credit growth of over ₹19 trillion in FY23: Icra

Live Mint  

New Delhi: Indian banks are likely to witness a record high credit growth, surpassing the ₹19 trillion in the current fiscal year, domestic rating agency Icra said on Monday. Further, the growth momentum is expected to remain strong in FY2024 as well, even though rising interest rates and tight liquidity conditions could moderate the growth,” said Anil Gupta, senior vice …

India's GDP growth turns positive, but experts caution against celebrating 0.4% growth
3 years, 10 months ago

India's GDP growth turns positive, but experts caution against celebrating 0.4% growth

India Today  

Though India’s economic health continues to slowly improve, a comprehensive recovery is yet to be seen. It had contracted by 23.9 per cent in April-June 2020 and by 7.5 per cent in July-September 2020; in the October-December 2020 period, it grew 0.4 per cent. The Finance Ministry’s Economic Survey 2020-21 projects that India’s real GDP growth in FY22 will be …

Indian Economy Weak, Credit Growth Bottoming Out: Report
3 years, 11 months ago

Indian Economy Weak, Credit Growth Bottoming Out: Report

News 18  

American brokerage BofA Securities on Friday said the Indian economy continues to be weak, pointing to activity indicators tracked by it. On the credit growth front, it said the rise in banking system advances seems to have bottomed out and the system will close with a growth of 6.2 per cent in the financial year 2021. The credit growth for …

Bank Credit Grows at 5.4 per cent in September Quarter, Says RBI
4 years ago

Bank Credit Grows at 5.4 per cent in September Quarter, Says RBI

News 18  

Bank credit growth on a year-on-year basis stood at 5.4 per cent in September quarter of the current fiscal year compared to 5.7 per cent growth in the previous quarter, RBI data showed. Credit growth for metropolitan branches, which have major share in bank credit, decelerated to 3.3 per cent year-on-year in September 2020 quarter as compared to 4.7 per …

Bank Credit Rises 5.67%, Deposits Up 10.63%, RBI Data Shows
4 years, 1 month ago

Bank Credit Rises 5.67%, Deposits Up 10.63%, RBI Data Shows

News 18  

Bank credit grew by 5.67 per cent to Rs 104.04 lakh crore, while deposits increased by 10.63 per cent to Rs 143.80 lakh crore in the fortnight ended November 6, according to RBI data. In the previous fortnight ended October 23, 2020, bank credit had risen by 5.06 per cent and deposits by 10.12 per cent. On a year-on-year basis, …

RBI Announces Draft Scheme to Merge Lakshmi Vilas Bank with DBS Bank- Here's All You Need to Know
4 years, 1 month ago

RBI Announces Draft Scheme to Merge Lakshmi Vilas Bank with DBS Bank- Here's All You Need to Know

News 18  

Immediately after placing loss-making private bank Lakshmi Vilas Bank under moratorium and superseding its Board of Directors, the Reserve Bank of India announced a draft scheme for its amalgamation with DBS Bank India Ltd. RBI has placed LVB under a moratorium for 30 days that would end on December 16, according to statements from the regulator. Lakshmi Vilas Bank saw …

Bank Credit Rises 5.15% in Fortnight Ended September 25: RBI Data
4 years, 3 months ago

Bank Credit Rises 5.15% in Fortnight Ended September 25: RBI Data

News 18  

Bank credit grew by 5.15 per cent to Rs 102.72 lakh crore, and deposits rose by 10.51 per cent to Rs 142.64 lakh crore in the fortnight ended September 25, according to RBI data. In the previous fortnight ended September 11, 2020, bank credit had increased by 5.26 per cent to Rs 102.24 lakh crore, and deposits surged by 11.98 …

Bank Credit Grows 5.52% in Fortnight Ended Aug 14: RBI Data
4 years, 4 months ago

Bank Credit Grows 5.52% in Fortnight Ended Aug 14: RBI Data

News 18  

Bank credit grew 5.52 per cent to Rs 102.19 lakh crore and deposits increased 11.04 per cent to Rs 140.80 lakh crore in the fortnight ended August 14, according to RBI data. In the previous fortnight ended July 31, 2020, bank credit grew 5.51 per cent while deposits witnessed a growth of 11.11 per cent. On a year-on-year basis, non-food …

Bank Credit Grows 5.51% and Deposits 11.11%, Shows Latest RBI Data
4 years, 4 months ago

Bank Credit Grows 5.51% and Deposits 11.11%, Shows Latest RBI Data

News 18  

Bank credit and deposits grew 5.51 per cent and 11.11 per cent to Rs 102.65 lakh crore and Rs 141.61 lakh crore, respectively, in the fortnight ended July 31, according to the latest data from the RBI. On a year-on-year basis, non-food bank credit growth was at 6.7 per cent in June 2020, nearly the same as in May 2020 …

External commercial borrowings of firms jump 50% in April-September
5 years, 1 month ago

External commercial borrowings of firms jump 50% in April-September

Live Mint  

External commercial borrowings of Indian companies jumped nearly 50% in the six months ended 30 September from a year ago, thanks to cheaper overseas funds, easier overseas borrowing norms and weakened local banks. “The constrained and relatively high-cost lending of domestic banks and financial institutions on account of stressed asset quality, heightened risk aversion and strained liquidity conditions has, in …

Credit crunch worsens as loan growth slows to 6% in Q2
5 years, 1 month ago

Credit crunch worsens as loan growth slows to 6% in Q2

Live Mint  

The Indian economy continues to face a credit crunch as loan growth slowed to a low of 6% in the second quarter, which was last seen during demonetization, foreign brokerage firm Credit Suisse said on Monday. Analysing the second quarter numbers, the Credit Suisse report said non-banking financial companies witnessed a 36% drop in disbursements, while growth in bank lending …

Indiabulls Housing Finance shares plunge after merger setback
5 years, 2 months ago

Indiabulls Housing Finance shares plunge after merger setback

Live Mint  

Indiabulls Housing Finance Ltd. plunged on Thursday, as the rebuff to its plan to merge with Lakshmi Vilas Bank Ltd. put a dent in hopes that shadow lenders could use such combinations to get better access to liquidity. The Reserve Bank of India rejected the merger plan, Chennai-based Lakshmi Vilas said in an exchange filing late Wednesday, without disclosing the …

Shares of Indiabulls Housing Finance, Lakshmi Vilas Bank hit 52-week lows after RBI rejected their merger proposal
5 years, 2 months ago

Shares of Indiabulls Housing Finance, Lakshmi Vilas Bank hit 52-week lows after RBI rejected their merger proposal

Firstpost  

New Delhi: Shares of Indiabulls Housing Finance and Lakshmi Vilas Bank plummeted up to 20 percent on Thursday after the Reserve Bank of India rejected their merger proposal. Indiabulls Housing Finance stock tumbled 18.02 percent to trade at Rs 197 on the BSE. Shares of Lakshmi Vilas Bank sank 5 percent to hit lower price band as well as one-year …

Lakshmi Vilas Bank-Indiabulls Housing Finance merger plan shot down by RBI
5 years, 2 months ago

Lakshmi Vilas Bank-Indiabulls Housing Finance merger plan shot down by RBI

Live Mint  

Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country Lakshmi Vilas Bank-Indiabulls Housing Finance merger plan shot down by RBI The Reserve Bank of India on Wednesday rejected the proposed merger between Lakshmi Vilas Bank and Indiabulls Housing Finance Ltd, scuppering the first ever attempt by a non-bank lender to merge with …

Bank credit growth slows to 10.24%, deposits at 9.73%
5 years, 3 months ago

Bank credit growth slows to 10.24%, deposits at 9.73%

India TV News  

Bank credit and deposits growth slowed to 10.24 percent and 9.73 percent to Rs 96.80 lakh crore and Rs 127.80 lakh crore, respectively, in the fortnight to August 30, show the latest RBI data. In the previous fortnight to August 16, advances grew 11.64 percent to Rs 96.82 lakh crore and deposits by 10.15 percent to Rs 126.80 lakh crore. …

Opinion | Bank mergers are no silver bullet for India
5 years, 4 months ago

Opinion | Bank mergers are no silver bullet for India

Live Mint  

With every passing day, India’s economic indicators are turning a little bleaker. Thus, one of the few areas where there’s new investment may be affected, especially with a sharp rise in debt levels of the government agency that gives out the contracts. State Bank of India, the largest lender, will require ₹15,000 crore in the current fiscal year, according to …

Lakshmi Vilas Bank Q1 net loss widens to ₹237 cr
5 years, 5 months ago

Lakshmi Vilas Bank Q1 net loss widens to ₹237 cr

Live Mint  

Mumbai: Lakshmi Vilas Bank on Tuesday said its net loss widened to ₹237 crore in the first quarter of FY20, mainly on account of higher provisioning and lower growth in net interest income. In the June quarter of FY20, provisions of the lender stood at ₹211.70 crore as compared to ₹478.77 crore in Q4FY19 and ₹161.53 crore in Q1FY19. Net …

The case for doubting India’s GDP numbers
5 years, 6 months ago

The case for doubting India’s GDP numbers

Live Mint  

Arvind Subramanian was the chief economic advisor to the Government of India from October 2014 to June 2018. Arvind Subramanian wrote an article in The Indian Express summarizing his findings on the econometric work he had done on India’s gross domestic product growth estimates. I concluded—without any statistical estimation—that India’s real GDP growth rate might be overstated by 1-1.5 percentage …

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