AU Small Finance Bank’s profit up 42% in March quarter

MUMBAI: AU Small Finance Bank’s profit grew 42 per cent to Rs 118 crore in the March quarter led by a 50 per cent growth in loans for vehicle purchases. Net Interest Income the difference between what it paid for funds and what it earned from lending, nearly to Rs 851 crore from Rs 464 crore. “Capital raise, stable asset quality, adequate liquidity, continued growth momentum and uptick in yields, cost to income and return ratios were key highlights of the fiscal,” said Sanjay Agarwal, CEO, AU Small Finance. The credit growth was driven by strong…

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Central banks push green finance as global warming losses rise to $160 b

With insurers shouldering a record $160 billion in climate-related losses from last year alone, a group, including 30 central banks, called for measures to spur green finance and better assessment of the risks from higher global temperatures. The move, led by the Bank of France, Bank of England and People’s Bank of China, draws the group deeper into a controversial area of policy-making, where they advocate funding for alternatives to fossil fuels. They set out a road-map for authorities to use in prodding executives and investment funds to weigh up…

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Small finance banks start on a strong wicket: ICRA

Mumbai: Rating agency ICRANSE 3.23 % expects small finance banks (SFBs) to grow at a compounded annual growth rate of 25% to 30% led by diversified loan growth, deposit mobilisation, improving asset quality and better return on equity. The rating agency estimates that SFBs would require external capital of Rs. 4,000-6,000 crore till FY2023 for meeting the growth requirements, part of which will come through IPOs. ICRA estimates that SFBs have reported an annualised growth of 33% in the assets under management (AUM) in 9M FY2019 to Rs. 64,325 crore. These banks have been able…

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RBI to launch campaign to make public aware of central bank’s regulations, initiatives

The Reserve Bank is planning to launch a full-fledged multi-media and multi-lingual campaign to create general awareness among citizens about the regulations and initiatives of the central bank. RBI’s department of communication has sought applications from advertising agencies for designing the creatives for pan-India public awareness campaign. “The campaign will be in 14 languages – Hindi, Assamese, Bangla, Gujarati, Kannada, Malayalam, Marathi, Odia, Punjabi, Sindhi, Tamil, Telugu, Urdu, and English with focus on regional languages,” said the expression of interest document floated by the RBI in this regard. The media…

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Rising NPA in education loan propelling banks’ stress

Rising NPA in education loan propelling banks’ stress New Delhi : Amid the ongoing crisis caused by increasing Non-Performing Assets (NPAs) in the banking sector, default payment in education loans is adding on to this, the data released by the Indian Banks’ Association (IBA) revealed. In the educational loans segment, the default in repayment has risen to 7.67 percent of the outstanding amount at March-end, 2017 from 5.7 percent two years ago. Further, the total outstanding education loan at end of the fiscal 2016-17 was Rs 67,678.5 crore, of which Rs…

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Finance Minister set to make ‘major’ announcement — banks recapitalisation on cards?

Finance Minister Arun Jaitley will make a major announcement on Tuesday evening, possibly in connection with the recapitalisation plans for public sector banks, sources have told CNBC-TV18. At a press conference scheduled for 4pm, the minister is likely to decide the plan for increasing capital to the weak balance sheets of banks including United Bank of India, UCO bank, Corporation bank, Allahabad Bank, Indian Overseas Bank, and Dena Bank, among other capital starved banks as the industry suffers from a decade-low credit growth at around 6 percent. According to sources, the minister may announce recap bonds (not…

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FTSE steadies near recent lows, HSBC leads banks

Britain’s top share index steadied near a recent two-week low on Wednesday, with weaker commodities and property-related stocks offsetting an HSBC-led rally in banking stocks. The blue-chip FTSE 100 index was down 0.02 percent in morning trading after hitting its lowest since mid-July in the previous session. The index’s 16-percent rally since a post-Brexit slump is losing steam, with the market facing some selling pressure in the past days. Banks were the top performers, with HSBC helping the UK banking index to gain 2 percent. HSBC shares rose 3.3 percent…

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