Authored by a team led by Michael Patra, who recently stepped down as RBI Deputy Governor, the article highlights that domestic demand is strengthening across the board. “Rural demand, in particular, is gaining momentum, underpinned by resilient consumption and brighter prospects for agriculture,” it noted.
The government currently holds a majority stake in 12 public sector banks, with ownership exceeding 90% in four of them:
The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2023
For private sector banks (PVBs), profitability is anticipated to remain subdued. Emkay Global attributes this to a noticeable deceleration in credit growth, which directly impacts interest income. Adding to the strain are shrinking net interest margins (NIMs), driven by rising funding costs, and escalating operational expenses. Furthermore, increased provisioning for loan losses is expected to take a toll on the bottom line, leaving private banks grappling with profitability pressures.
With the liquidity deficit, which has come about due to RBI’s intervention (aimed at ensuring gradual depreciation of the Rupee against the Dollar) in the forex market, estimated at about ₹2 lakh crore as on January 14, market players say the move couldn’t have come at a better time.
The Company engaged with global investors in Hong Kong, Singapore and London. On the back of strong investor interest, the transaction was launched with an initial price guidance of UST + 125 bps. Following a strong book building, supported by high quality investors, the Company was able to tighten pricing by 33bps to UST + 92 bps.
The monetary policy department, which was handled by Patra, has been allocated to M Rajeshwar Rao. Rao will also handle portfolios such Co-ordination, Department of Communication, Department of Economic and Policy Research, Department of Regulation, Department of Statistics and Information Management and Enforcement Department among others.
HDFC Bank Ltd., the country’s largest private-sector bank by assets, stayed at the top of the ranking with a market cap of 13.6 trillion rupees, up 2.6% from the previous quarter. Two other private-sector banks, The Federal Bank Ltd. and ICICI Bank Ltd., also logged an increase in market cap for the quarter, with Federal Bank gaining 1.7% to 490.7 billion rupees and ICICI Bank 0.9% to 9.05 trillion rupees.
Prices of cereals rose by 6.5% from a 6.88% increase in November, while those of pulses rose 3.83% compared to a 5.41% growth in the same period.
The Indian rupee logged its steepest single-day fall in nearly two years and ended the session 66 paise down at its historic low of 86.70 against the US dollar on Monday, weighed down by a stronger American currency and surging crude oil prices.