🍒 SBI Q2 results: Profit surges 52% YoY to Rs 4,574 crore, beats Street estimates : Top lender State Bank of India (SBI) reported a 51.9 per cent year-on-year (YoY) rise in net profit for the quarter ended September at Rs 4,574.16 crore. The bank had reported a net profit of Rs 3,011.73 crore in the same quarter a year ago. An ET Now poll had projected the profit figure at Rs 4,400 crore.Its total income came in at Rs 75,341.80 crore, up 3.42 per cent from Rs 72,850.78 crore a year ago. The bank’s net interest income (NII) for the quarter rose 14.56 per cent to Rs 28,181 crore, while net interest margins (NIMs) came in at 3.34 per cent, compared with 3.22 per cent a year ago.It earned interest to the tune of Rs 66,814.11 crore compared with Rs 64,312.39 crore a year ago.The bank's gross NPAs came in at 5.28 per cent against 5.44 per cent in the preceding quarter and 7.19 per cent in the same quarter a year ago. Net NPAs for the quarter stood at 1.59 per cent against 1.86 per cent in the June quarter and 2.79 per cent a year ago. - economic times
🍒 SBI Q2: Improvement in disbursements, strong deposit traction are positive signs ; Significant improvement in retail loan disbursements, ramp-up in provisions, good traction in deposits, and strong capital ratios (about ₹20,000-crore capital was raised during the September quarter) are heartening trends from State Bank of India’s latest September quarter results. However, actual slippages (if not for the Supreme Court order on asset classification standstill) for the September quarter, persisting stress in the bank’s agriculture loan book, expected restructuring, slippages in the second half, and a sizeable SMA1 (payments overdue by 31-60 days) and SMA2 (overdue by 61-90 days) book suggest more pain ahead for the bank’s asset quality. - Business Line
🍒 SBI warns bad debt can worsen even as its profit beats estimates : State Bank of India warned that the ongoing coronavirus pandemic would lead to more bad debt, even as the nation’s largest lender reported better-than-expected profit after setting aside fewer provisions for problem loans. The bank’s net income jumped 52% to 45.7 billion rupees ($610 million) for the three months to September, beating the 36.9 billion rupee average estimate of 11 analysts surveyed by Bloomberg. While its bad loan ratio fell slightly to 5.28%, from 5.44% at the end of June, SBI expects a further 200 billion rupees of loans to sour over the next six months as the pandemic continues to impacts borrowers. This would result in 600 billion rupees of problem loans, or 2.5% of its loan book, at the end of March 2021. “Going forward we might see some kind of stress in small and medium enterprises, and in the agriculture sector,” Chairman Dinesh Khara said during a post-earnings call. - Business Standard
🍒 Bank of Baroda rolls out well-being programme for its employees : Bank of Baroda (BoB) on Wednesday said it has introduced an ‘Employee Assistance Program’ to help its employees to deal with their personal problems and professional issues through psychological counselling and consulting. The public sector bank, in a statement, said it has taken the first step in addressing the issues and upkeeping employees’ emotional well-being by introducing this program initially as a pilot project in Mumbai Zone and its corporate office. - Business Line
🍒 RBI Guv Shaktikanta Das chaired SAARC FINANCE Governors’ Group, member nations discussed current initiatives : Reserve Bank of India Governor Shaktikanta Das and other central bank governors in the South East Asian nations vowed to work in tandem to fight against the Coronavirus pandemic. At the 40th meeting of the SAARC FINANCE Governors’ Group, held Wednesday, they reaffirmed their commitment to continued co-operation and sharing of central bank experiences.Das chaired the meeting and highlighted the close partnership and co-operation among the member countries. The group took stock of the macroeconomic situation in the SAARC region; discussed the current initiatives by the member countries. - economic times
🍒 RBI imposes penalty totalling Rs 15 lakh on two co-operative banks : The RBI on Wednesday said it has imposed penalty totalling Rs 15 lakh on two co-operative banks, including Millath Co-operative Bank, Davangere (Karnataka) for non-compliance with directions issued by it. A penalty of Rs 10 lakh has been imposed on Millath Co-operative Bank for "non-adherence/violation of all inclusive directions and other directions imposed on the bank", the Reserve Bank of India (RBI) said in a statement. In another statement, it said a monetary penalty of Rs 5 lakh has been imposed on The Thiruvaikuntam Co-operative Urban Bank Limited, Thoothukudi (Tamil Nadu) for contravention of the directions issued by RBI on prohibition of loans and advances to directors. - economic times
🍒 Interest on interest waiver: Banks start crediting accounts; FinMin issues additional FAQs : Banks have started refunding borrowers the compound interest charged on specified loan accounts during the moratorium period. Last week, the Reserve Bank of India (RBI) had asked all lending institutions, including non-banking financial companies, to ensure that the scheme of waiver of interest on interest for loans up to Rs 2 crore for the six-month moratorium period is implemented by November 5. "Dear customer credited COVID-19 Relief ex-gratia of ... on November 3 to your account," a message from a public sector bank to a customer said.- economic times
🍒 SBI Card along with Paytm launch credit cards : SBI Cards and Payment Services (SBI Card) on Wednesday said it has launched credit cards in partnership with the digital payment platform Paytm. Available in two variants, Paytm SBI Card and Paytm SBI Card SELECT, the product has been launched on the Visa platform. This launch is in line with SBI Card's endeavour to offer customers tailored products which bring maximum value in line with spending needs and to encourage digital forms of payments for a safe and enhanced customer experience, SBI Card said in a release.- economic times
🍒 Yes Bank case: High Court rejects bail pleas of Wadhawans : The Bombay High Court on Wednesday rejected bail applications of Kapil and Dheeraj Wadhawan, promoters of Dewan Housing Finance Limited (DHFL), in the Yes Bank fraud case, holding that procedures were followed when a chargesheet was filed. Justice S V Kotwal rejected the arguments made by the Wadhawan brothers' lawyers, senior advocates Amit Desai and A M Singhvi, that the CBI failed to follow procedure while filing a chargesheet in the case. The Wadhawans had sought 'default bail', claiming that the Central Bureau of Investigation, the prosecuting agency, had not complied with the Code of Criminal Procedure (CrPC) while filing a chargesheet in a special CBI court here. A default bail is given when procedural aspects, such as filing chargesheet within the stipulated period, are not followed. - economic times
🍒 ‘Shriram Life Insurance to develop credit appraisal procedure’ : To maintain the quality of its credit portfolio amid falling interest rates and market volatility, Shriram Life Insurance is developing a credit appraisal procedure. “We are doing quite well in terms of assets under management and overall size of the book. We have focussed very much on the quality of the credit portfolio, and are also developing a credit appraisal procedure so that we scan our portfolio on a regular basis,” said Ajit Banerjee, Chief Investment Officer, Shriram Life Insurance. - Business Line
🍒 I-T refunds worth Rs 1.29 lakh cr issued to 39.49 lakh taxpayers : The Income Tax department has issued refunds worth over Rs 1.29 lakh crore to more than 39 lakh taxpayers so far this fiscal. This includes Personal Income Tax (PIT) refunds amounting to Rs 34,820 crore and corporate tax refunds aggregating to Rs 94,370 crore during this period. "CBDT issues refunds of over Rs 1,29,190 crore to more than 39.49 lakh taxpayers between 1st April, 2020 to 3rd November, 2020. Income tax refunds of Rs 34,820 crore have been issued in 37,55,428 cases & corporate tax refunds of Rs 94,370 crore have been issued in 1,93,059 cases,” Income Tax department said in a tweet. - economic times
🍒 46% people borrowed money to run their households during Covid times, reveals Home Credit India research : With job losses and pay cuts across industries during the Covid-19 pandemic, the lower middle-income group has been affected severely, says the findings of research from Home Credit India, a local arm of the international consumer finance provider with operations spanning over Europe and Asia. Home Credit India conducted a research across 7 cities to understand the borrowing patterns of people during the Covid lockdown. The pandemic has led to a shift in perspective towards loans and borrowing preferences, the research said. - Business Line
🍒 Banks offer competitive rates to woo home buyers : Competitive home loan rates by banks could further boost the demand for home loans. Private sector lender Kotak Mahindra Bank, which is offering one of the lowest interest rates, is keen on acquiring good quality customers in the home loan segment. “Our cost of funds has gone down apart from the policy rates. We have very competitive cost of funds. Also, home loan is one of the best asset categories. It is a relatively safer, long-term product,” said Shanti Ekambaram, Group President, Consumer Banking, Kotak Mahindra Bank. Speaking to BusinessLine, she said there is a lot of demand across the spectrum as “deals being offered by the eco-system as a whole are very interesting”. “We are seeing a lot of demand across the top five to six metros,” she said. - Business Line
🍒 Rs 1,800-cr fund infusion in pipeline; to be used to repay high-cost borrowings: PNB Housing CEO : With about Rs 1,800 crore equity fund raise in the pipeline, PNB Housing Finance plans to repay its high-cost borrowings and will ask its lenders to sweeten the lending rates as the firm is working consistently to improve profitability parameters besides enhancing the value proposition for the investors, its MD and CEO Hardayal Prasad said. PNB Housing Finance’s board has okayed to raise up to Rs 1,800 crore through a preferential or rights of shares. Of this, promoter Punjab National Bank (PNB) has already given its nod to infuse Rs 600 crore. Prasad said there is a large number of investors, of whom almost 84-85 per cent are institutional investors, who are all interested in the company. “But, we are also getting inquiries from many other players who feel that they have the ability to invest in the company directly. So, as far as the interest of our investors are concerned, it is high for the company and the franchise that has been built,” Prasad told PTI in an interview. He added that there is a strong retail book and second-highest deposit book also. “There is a massive amount of interest in the company.” - financial express
🍒 Credit cost for MFIs to rise to 6-7% in two years as loans remain unpaid : With about 12 per cent of their customers not having repaid loans till end of August, the credit costs of Micro Finance Institutions (MFIs) could rise to 6-7 per cent over two years from 1.5 per cent in FY20, according to Icra. The rating agency said 12 per cent of borrowers of 21 entities with collective assets under management (AUM) of around Rs 54,213 crore availed a complete moratorium during April-August 2020.Consequently, near-term delinquencies (30+ days past due) are expected to increase to double digits. They would remain at these levels for a few months as it will be difficult for such borrowers to clear their dues. However, the rise in credit costs could be lower at 6-7 per cent (spread over two years FY2021-FY2022; 1.5 per cent in FY2020). Entities with a higher share of such borrowers may face higher credit costs, said Supreeta Nijjar, Vice President and Sector Head, Financial Sector Ratings, ICRA. - Business Standard
🍒 PMC Bank trying to use the escape hatch used by tiny cooperative banks : Punjab and Maharashtra Co-operative Bank’s (PMC) proposal to convert deposits into equity is not a novel idea, but certainly the most visible one. Although not reported anywhere, every year depositors of one or two tiny cooperative banks undergo this fate. In most cases, deposits are converted into subordinated debts, to be serviced over at least 10 years, or the banks are merged with other cooperative banks and deposits beyond a certain amount are converted into equity with a deep discount. Both the options are done after getting consent from the depositors. The harassed depositors prefer the debt route as liquidating the equity is next to impossible. Besides, if the merged entity incurs loss, which is more often than not, then the equity holders have to bear the loss too. This erodes their deposits even further. But with a deposit base of more than Rs 11,600 crore, PMC is not a small cooperative bank. And therefore, PMC’s conversion to equity has attracted public attention. - Business Standard
🍒 Indian private banks shed Covid-19 woes, net profit rises by 159% : Indian private banks seem to have weathered the severe economic shocks inflicted by the Covid-19 pandemic, at least for now. Backed by a steady rise in net interest income (NII) and contraction in provisions, private banks posted 159 per cent growth (year-on-year) in net profit at Rs 18,814 crore in the second quarter (Q2) ended July-September 2020-21 (Q2FY21). While the asset quality held up during Q2, the real picture is masked by the Supreme Court’s (SC’s) directive that accounts not declared non-performing assets (NPAs) as of August 31 should not be classified as such until further orders. The NII in the September quarter rose 15 per cent to Rs 52,101 crore in Q2FY21, while provisions and contingencies declined 4.2 per cent to Rs 18,414, according to a Business Standard analysis of 17 listed private lenders.- Business Standard
🍒 SBI’s asset quality numbers warrant a closer look : Country’s largest lender, State Bank of India (SBI) has received applications for loan restructuring to the tune of Rs 6,495 crore in October, the bank said while announcing its second quarter results. Overall restructuring numbers could go up as customers have time till December to apply for the one-time loan recast for Covid-linked stressed assets. The total estimated slippages in Q2 (July-September) is Rs 14,388 crore, the bank said. But, if one includes the loans that are not tagged as bad following a recent interim Supreme Court order, the total fresh slippages in Q2 would stand at over Rs 17,144 crore. Overall gross NPAs also have stayed at elevated levels if one takes into account the portion of bad loans excluded under Supreme Court’s interim order. - moneycontrol.com
🍒 Gold recycling hits 8-year-high on record prices : High gold prices pushed the recycling of the yellow metal to an eight-year-high of 41 tonnes in the September quarter, with both consumers and some of the distressed jewellers recycling their inventory to meet immediate cash requirements. Average gold prices jumped 37 per cent in the September quarter to ₹45,640 per 10 grams, against ₹33,329 logged in the same period last year. In fact, prices jumped 65 per cent from ₹27,861 logged in 2018, according to the World Gold Council data. - Business Line
🍒 Gold prices remain flat at Rs 51,306 per 10 gram; silver falls by Rs 1,007 a kg : Gold prices were steady at Rs 51,306 per 10 gram in the Mumbai retail market on a sharp fall in rupee and weak global cues. The precious metal traded lower amid growing worries over the possibility of the contested US election outcome and firm dollar. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,996 plus 3 percent GST, while 24-carat 10 gram was Rs 51,306 plus GST. The 18-carat gold quoted at Rs 38,480 plus GST in the retail market. The gold/silver ratio currently stands at 83.77 to 1, which means the amount of silver required to buy one ounce of gold. Silver prices declined Rs 1,007 to Rs 61,243 per kg from its closing on November 3.
🍒 Sensex rallies 355 pts; Nifty reclaims 11,900 : Rising for the third straight session, the Sensex rallied 355 points on Wednesday following gains in Reliance Industries, Infosys and Kotak Bank amid a positive trend in global markets ahead of the outcome of the US presidential elections. After a volatile session, the 30-share BSE index ended 355.01 points or 0.88 per cent higher at 40,616.14. Similarly, the broader NSE Nifty climbed 95 points or 0.80 per cent to 11,908.50. IndusInd Bank was the top gainer in the Sensex pack, surging around 5 per cent, followed by Sun Pharma, Reliance Industries, Infosys, Kotak Bank and Tech Mahindra. On the other hand, HDFC, PowerGrid, Axis Bank, ICICI Bank, NTPC and L&T were among the laggards.
🍒 Rupee falls to over 2-month low of 74.66 amidst tight US vote : Most emerging market shares scored small gains while currencies were broadly weaker on hints of a tight race, sparking a bout of volatility across financial markets. The partially convertible rupee was at 74.66/67 per dollar at 0506 GMT versus its previous close of 74.40. The unit touched 74.78 earlier in the session, its weakest since August 24. Traders said they expect the rupee to weaken further with the unit having hit a low of 75.0550 in the overnight spot non-deliverable forward
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