Banks need to raise private capital to deal with bad loans: RBI

The mounting problem of bad loans of banks cannot be resolved by their simple recapitalisation and options like raising private capital for state-run banks need to be considered to deal with the issue, the RBI said on Friday.

"I wish to propose that we deal with the ailing public sector banks in creative ways instead of just propping them up with state aid," said Reserv

Kotak Mahindra to buy out Old Mutual stake in Kotak Life

Kotak Mahindra Bank on Friday said it has entered into an agreement to purchase the entire 26 per cent equity held by Old Mutual plc, UK, in Kotak Mahindra Old Mutual Life Insurance Ltd (Kotak Life) for Rs 1,292.7 crore.

In a statement issued here, Kotak Mahindra Bank said it will buy out the stakes in line with its philosophy to deepen and expand in Indian financial services sector.<

Buy Yes Bank Ltd For Target Rs.2,110.00 - Motilal Oswal

Inline; Asset quality impacted by one off large account

* Yes Bank’s (YES) NII grew 32% YoY (+10% QoQ) to INR16.4b, helped by 20bp YoY NIM improvement (to 3.6%) and customer assets growth of 36% YoY (+15% QoQ). Strong NII and beat on other income (27% beat; +57% YoY) drove PPoP outperformance (+38% YoY; 14% beat). However, significantly higher pr

29/04/2017 11:24:46 AM | Posted in Broking Firm Views - Long Term Report read full news
India's Forex reserves surge by $1.25 bn

India's foreign exchange (Forex) reserves rose by $1.25 billion as on April 21, 2017, official data showed on Friday.

According to the Reserve Bank of India's weekly statistical supplement, the overall Forex reserves increased to $371.13 billion from $369.88 billion reported for the week ended April 14.

India's Forex reserves comprise of foreign currency assets (

Buy IndusInd Bank Ltd For Target Rs.1,700.00 - Motilal Oswal

One-off provision mars strong operating performance

* IndusInd Bank’s (IIB) 4QFY17 PAT grew 21% YoY (in-line) to INR7.5b. Provisions were elevated at INR4.3b as they included one-off amount of INR1.22b on a bridge loan for a cement M&A transaction (account remains standard), where the receivable is in June (likely to get reversed in 1QFY18).

29/04/2017 10:46:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Federal Bank aims 3.25 percent net interest margin, growth across segments

MUMBAI  - Federal Bank , a mid-sized private sector lender, is targeting a net interest margin of 3.25 percent in the fiscal year that began in April by focusing on growing its books, improving loan recovery and deposit portfolio, its chief executive officer said.

The bank's net interest margin improved to 3.42 percent in the January-March quarter from 3.31 p

Buy HDFC Bank Ltd For Target Rs.1,750.00 - Sharekhan

Key points

* Solid performance in a challenging period: During Q4FY2017, HDFC Bank (HDFCBK) registered a strong performance (ahead of our as well as street expectation), with the Net Interest Income (NII) growing by 21.5% YoY to Rs9,055 crore on the back of asset growth of ~19% YoY and a core Net Interest Margin (NIM) of 4.3% vs 4.1% QoQ (4.2% YoY). N

28/04/2017 3:51:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Bank of Maharashtra plans to raise up to Rs 2000 cr

Public-sector lender, Bank of Maharashtra said that is planning to raise equity capital through FPO/Rights issue/QIP etc, up to Rs 2000 crore, subject to the necessary approvals. “The Board of Bank in its meeting to be held on 04th May, 2017 at Pune interalia will consider the proposal of raising of equity capital through FPO/Rights issue/QIP etc., upto Rs.2,000/- crore at an appropriate

Kotak Mahindra Bank to buy Old Mutual`s stake in insurance arm

Private sector lender Kotak Mahindra Bank (KMB) has said that it is buying out British partner Old Mutual’s entire 26 per cent stake in its life insurance arm for Rs1,292.7 crore. “In line with its philosophy to deepen and expand in Indian financial services, KMB has entered into an agreement to purchase the entire 26% equity stake held by Old Mutual in Kotak Mahindra Old Mutual Lif

Risk management: RBI asks banks to frame policy on CRO

The Reserve Bank has asked banks to lay down a policy defining responsibilites and fixed tenure of the chief risk officer as it seeks to bring uniformity in risk management system of lenders, reported PTI. As part of effective risk management, banks are required to have a system of separation of credit risk management function from the credit sanction process.

"However, it is obs

Buy Yes Bank Ltd For Target Rs.2,110.00 - Motilal Oswal

* We expect loan growth to be significantly ahead of system average at 25% YoY (nearly 5x industry growth rate) on the back of refinancing opportunities and strong growth in retail banking.

* We expect NIM to remain largely stable with falling yields negated by lower cost of funds on account of CASA inflows post demonetization and re-pricing of bulk deposits. Consequently, NII growth

27/04/2017 3:48:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,685.00 - Motilal Oswal

* We expect strong loan growth of ~24% in 4QFY17 – significantly ahead of system loan growth. Deposit growth would be strong at 32% YoY, aided by demonetization in 3Q. Continued market share gains in VF would remain a key factor to monitor.

* NIM is likely to decline marginally (by 5bp QoQ), but would remain at 3.8-3.9%. The quantum of CASA retained would be a key factor.

27/04/2017 3:29:41 PM | Posted in Broking Firm Views - Long Term Report read full news
RBI sets rupee reference rate at 64.1141 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 64.1141 against the US dollar and 69.8908 for the euro. The corresponding rates were 64.0013 and 70.0430 on yesterday. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.5854 and 57.60 per 100 yens, respectively, based on reference rates for the dollar and cross-currency q

Kotak Mahindra sees bad loans falling, credit picking up

India's Kotak Mahindra Bank Ltd forecast a decline in bad loans and provisioning costs and a pick up in credit growth this financial year after reporting a better-than-expected 40 percent rise in fourth-quarter profit on Thursday.

Kotak Mahindra -- the fourth-biggest private sector lender in the country by assets but the third most-valuable with a market capitalisation of more tha

Axis Bank dips nearly 3% on disappointing Q4

Shares of Axis Bank fell nearly 3 per cent on the Bombay Stock Exchange after the private sector lender reported a fall of 43.1 per cent in its net profit after tax at Rs 1,225.10 crore for the quarter ended March 31, 2017, on the back of higher provisions. Weighed down by Q4, shares of the bank declined as much as 2.64 per cent to hit intra-day low of Rs 503.60 apiece on the Bombay Stock Excha

RBI slaps fine on Panjabrao Deshmukh Urban Co-op Bank

The Reserve Bank of India has slapped a fine of Rs 5 lakh on Panjabrao Deshmukh Urban Co-operative Bank Ltd for violation of Know Your Customer (KYC) norms. “The Reserve Bank of India has imposed a monetary penalty of Rs 5.00 lakh on Dr. Panjabrao Deshmukh Urban Co-operative Bank Ltd., Amravati in exercise of powers vested in it under the provisions of Section 47A (1) (b) read with Sectio

Lakshmi Vilas Bank nosedives nearly 11% on profit booking

Shares of Lakshmi Vilas Bank plunged nearly 11 per cent on the Bombay Stock Exchange amid profit booking after private sector lender reported a 6.2 per cent rise in its fourth quarter profit at Rs 52.16 crore, against Rs 49.07 crore in the year-ago quarter.

Weighed down by profit booking, shares of the bank declined as much as 10.75 per cent to hit intra-day low of Rs 175.00 apiece on

RBI to circulate new10 rupee coins: Reports

The Reserve Bank has said that it will soon put into circulation new Rs 10 coins that have been minted to commemorate 125th year of National Archives of India. As per reports, the central bank will also put into circulation new Rs 5 coins to celebrate 150th anniversary of Allahabad High Court.

Commenting on the issue, a RBI Official told the media, “On the reverse of the coin, t

Bank credit demand inches up 5.5% in first fortnight of FY18

After plunging to an over six- decade low of 5.08 per cent in fiscal 2017, bank credit inched up to 5.52 per cent in the fortnight to April 14, according to the Reserve Bank data, reported PTI.

For the fortnight to April 14, bank credit stood at Rs Rs 76.31 trillion, up 5.52 per cent from Rs 72.31 trillion in the week to April 15, 2016, thus beginning the new financial year on a promi

Axis Bank`s Q4 net profit down 43%

Lending major Axis Bank on Wednesday reported a decline of 43.13 per cent in its net profit for the fourth quarter (Q4) of Fiscal 2016-17.

The company's net profit decreased to Rs 1,225.10 crore from Rs 2,154.28 crore reported in the fourth quarter of 2015-16.

"The Bank's net interest income (NII) grew 4 per cent YOY to Rs 4,729 crore during Q4FY17 from Rs 4,553

RBI issues new draft rules for M&As

The Reserve Bank has proposed a fresh set of regulations regarding mergers and acquisitions which seek reporting of such actions to be more stringent and time-bound, and provide for mandatory permission for all deals which are not on the automatic route, reported PTI. This follows the new regulations notified by Corporate Affairs Ministry under the Companies (Compromises, Arrangements and Amalg

RBI levies penalty on two Authorised Dealer Banks

The apex banking institution, Reserve Bank of India has slapped a monetary penalty of Rs 70,000 and Rs 10,000 on The Hongkong and Shanghai Banking Corporation Ltd. and Kotak Mahindra Bank respectively for violation of instructions on reporting requirements of FEMA 1999.

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of section 11(

e-SOT, e-PRAN cards launched for Atal Pension Yojana users

To benefit and digitally empower over 45 lacs Atal Pension Yojana (APY) subscribers, the facility of online viewing of the statement of transaction (e-SOT) and e-PRAN cards has been launched.

To improve the quality of service for the Atal Pension Yojana (APY) subscribers, the APY/PRAN acct details and savings bank account number details, can now be viewed on one's APY Account Stat

RBI sets rupee reference rate at 64.0013 against dollar

The Reserve Bank of India (RBI) today fixed the reference rate of the rupee at 64.0013 against the US dollar and 70.0430 for the euro.

The corresponding rates were 64.2776 and 69.8569 previously. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.1265 and 57.47 per 100 yens, respectively, based on reference rates for the dollar and cr

IDFC Bank surges nearly 7% on strong Q4

Shares of IDFC Bank rallied nearly 7 per cent on the Bombay Stock Exchange after private sector lender reported a 6.6 per cent rise in its fourth quarter profit at Rs 176 crore, against Rs 165.1 crore in the year-ago quarter.

 Following the Q4 numbers, shares of the bank gained as much as 6.81 per cent to hit intra-day high of Rs 63.50 apiece on the Bombay Stock Exchange.