Banks    
SECTOR | 15 Jan 2022, 08:18AM
Impact of 3rd wave low on NBFCs as bad loans fall, collections rise
Impact of 3rd wave low on NBFCs as bad loans fall, collections rise
Economic Times
The third Covid wave hasn't significantly hurt collection efficiency and raised delinquency levels of non-bank financing companies, rating agency India Ratings said in a report. Analysts suggest that the delinquencies in 1-90 days-past-due continue to be in the range of 5%-15%, and additions to bad loans have slowed down materially.
HDFC Securities released a Sector Update report for Banks on 14 Jan, 2022.
Banks    
SECTOR | 15 Jan 2022
Banks park Rs 4.3 trn in Rs 5-trn variable rate reverse repo auction
Banks park Rs 4.3 trn in Rs 5-trn variable rate reverse repo auction
Business Standard
From this year, the central bank has moved to variable rate reverse repo auctions, instead of fixed rate auctions
Banks    
SECTOR | 14 Jan 2022
REC raises $1,175 million from a consortium of seven banks
REC raises $1,175 million from a consortium of seven banks
Business Standard
This is the single largest syndicated loan raised in the International Bank Loan market by any Indian NBFC
Banks    
SECTOR | 14 Jan 2022
HDFC Securities
We continue to prefer large banks with strong balance sheets and formidable deposit franchises - ICICIBC (TP INR939) is our conviction pick, followed by SBIN (TP INR600) among large banks; CUBK (TP INR199) and FB (TP INR120) among mid-sized banks; and CIFC (TP INR 651) and CREDAG (TP INR844) among NBFCs. We upgrade KVB from REDUCE to ADD as the risk-reward has incrementally turned positive (no change in TP) We expect our coverage universe of 23 lenders to report optically strong earnings growth of 51% YoY (+27% QoQ in Q3FY22), largely on the back of expected normalisation of provisions (150bps). The pace of collections and recoveries continues to improve, which, concurrent with normalised economic activity, is likely to moderate the stressed pool. Disbursements are likely to witness healthy growth, driven by seasonal pick-up in retail loans as large corporate Capex remains elusive. The revival in business momentum is likely to drive +10.4% YoY loan growth for our coverage universe, with large private banks and large NBFCs (BAF) continuing to clock market share gains. The third wave of the pandemic is unlikely to impact Q3 earnings except in underlying sectors like travel and tourism that are already under stress. However, we expect most lenders to maintain a surplus provisioning buffer for potential asset quality issues. We tweak our FY22E-FY24E forecasts for select lenders to factor in lower credit growth and marginally higher credit costs.
HDFC Securities released a Sector Update report for Banks on 14 Jan, 2022.
Banks    
SECTOR | 13 Jan 2022
Housing finance co, 8 NBFCs surrender certificates of registration to RBI
Housing finance co, 8 NBFCs surrender certificates of registration to RBI
Business Standard
The eight NBFCs too cannot carry out the business of non-banking financial institutions
HDFC Securities released a Sector Update report for Banks on 14 Jan, 2022.
Banks    
SECTOR | 13 Jan 2022
Banks are an odd place to keep your crypto
Banks are an odd place to keep your crypto
livemint
Figuring out the best place to buy and sell cryptocurrencies will really come down to what's most important to the investor
Banks    
SECTOR | 13 Jan 2022
ICICI Securities Limited
In this report, we attempt to directionally gauge the impact of LCR requirement on HFCs that came into force w.e.f. Dec ’21. Our objective is to assess if HFCs need to earmark further liquidity for the LCR requirement and pose a consequent drag on NIMs (if any). With HDFC disclosing in its business update that it is carrying Rs270bn of unencumbered HQLA, held entirely in G-Sec, to meet the minimum required LCR of 50%, it becomes equally relevant to understand the LCR requirement impact on other HFCs too.
HDFC Securities released a Sector Update report for Banks on 14 Jan, 2022.
Banks    
SECTOR | 12 Jan 2022
ED attaches funds of NBFC in Chinese-funded instant loan apps probe case
ED attaches funds of NBFC in Chinese-funded instant loan apps probe case
Business Standard
It said a provisional order was issued under the Prevention of Money Laundering Act (PMLA)
HDFC Securities released a Sector Update report for Banks on 14 Jan, 2022.
Banks    
SECTOR | 12 Jan 2022
Credit growth visible in NBFCs, telecom, infra, other sectors: SBI Ecowrap
Credit growth visible in NBFCs, telecom, infra, other sectors: SBI Ecowrap
Business Today
The State Bank of India's latest research report, released on Wednesday, stated that the third quarter of the current fiscal saw a visible growth in credit across sectors.
Banks    
SECTOR | 12 Jan 2022
Bank stocks broadly positive during Basel norms implementation: RBI paper
Bank stocks broadly positive during Basel norms implementation: RBI paper
Business Standard
Banking stocks have broadly reacted positively to the strict capital norms under the Basel regulations put in place for domestic banks over an 18-year period, starting October 1998, RBI paper showed