Bank sector etf

- A + A KUALA LUMPUR (June 23): Maybank Investment Bank Bhd (Maybank IB) remains positive on the Malaysian banking sector’s outlook as the rising interest rates are generally positive for banks’ earnings. In a note, it said the rate hikes should also benefit the banks in terms of the return on equity (ROE), which could return to over 10% in financial year 2023 (FY23). “Additionally, we think that current Malaysian Government Securities (MGS) yields seem to already reflect future rate increases, and thus the future mark-to-market losses are likely to be contained, if any. “Moreover, we believe that the banks have sufficient provisions to buffer against potential asset quality issues arising from higher borrowing costs,” it said. Maybank IB said it expects Bank Negara Malaysia (BNM) to raise the overnight policy rate (OPR) by 50 basis points (bps) in the second half of 2022, taking the total rate hike to 75bps in 2022, with a further 50bps increase in 2023. It … [Read more...] about Maybank IB remains positive on banking sector on rising interest rates

File image: Union Home Minister Amit Shah (PTI) Asserting that urban cooperative banks (UCBs) need to focus on symmetric development, Cooperation Minister Amit Shah on Thursday asked UCBs to undertake key reforms including hiring young talent and adopting modern banking methods in order remain competitive. Structural changes, strengthening of human resources, computerising accounting process, hiring experts to handle surplus funds are the other reforms that UCBs need to undertake in order to compete with nationalised and private banks, he said. By implementing these reforms, the UCBs should make themselves more irrelevant in the current times, the minister said and assured that cooperative banks will not be treated like a "second grade citizen". "There are 1,534 urban cooperative banks, 54 scheduled urban cooperative banks, 35 multi-state cooperative banks, 580 multi-state cooperative credit societies, 22 state cooperatives. We have a wide presence but it is uneven. … We … [Read more...] about Urban cooperative banks need to focus on symmetric development, adopt modern banking methods: Cooperation Minister Amit Shah

After long years of delay, Finance Minister Nirmala Sitharaman has announced the setting up of an entity to address the stressed assets of banks. The organization will be set up through an Asset Reconstruction Company (ARC) model, she said in the 2021 Budget Speech. Details of the proposals are still awaited. This institution, what is commonly known as ‘bad bank’, will be a major boost for bad asset resolution in the financial system and has been in discussions for long. Banks can transfer bad assets to this entity at a discount. Experts will then attempt for a resolution through a professional approach, while originating banks can focus on new business. On January 27, Moneycontrol reported that a bad bank is likely to be announced in the Budget. Nearly 8 percent of the total loans have gone bad (overdue more than 90 days) at this stage. What is a bad bank? To be sure, the idea of a bad bank itself is not new. In 2018, the government announced a plan for PSBs called … [Read more...] about Budget 2021: FM announces bad bank, why it is a big step towards addressing Indian banks’ toxic assets worries

YES Bank is in the process to form the proposed asset reconstruction company (ARC) and transfer its entire pool of gross non-performing assets (GNPA) amounting to Rs 27,976 crore to the ARC by June 30, the bank’s Managing Director and Chief Executive Officer Prashant Kumar told reporters in a post-earnings press conference. The private bank on April 30 reported its January-March net profit at Rs 367 crore as against a loss of Rs 3,788 crore in the same period last year. This was led by lower provisions, higher net interest income and an improvement in asset quality. “We would be expecting that in next financial year (FY23), we would be able to have slippages within 2 percent. Our recoveries and upgrades would outnumber credit cost on account of lower slippage or ageing of NPAs and this we have been able to demonstrate in the last two financial years also,” Kumar said. Giving more guidance on advances growth for the present fiscal, Kumar said YES Bank will achieve an overall … [Read more...] about YES Bank to set up ARC by June, raise capital as buffer against uncertainties in FY23, says CEO Prashant Kumar

DCB Bank: DCB Bank appoints new CFO. The private sector lender has appointed Satish Gundewar as its Chief Financial Officer and Key Managerial Personnel, after retirement of Bharat Laxmidas Sampat from the said position. The Board of private sector lender DCB Bank has approved the appointment of Satish Gundewar as the new Chief Financial Officer (CFO) and a Key Managerial Personnel (KMP) of the Bank effective July 1, the bank informed exchanges on June 22. Gundewar, presently serving as the deputy CFO of the bank, will succeed Bharat Sampat. Sampat retires on June 30 after spending over 13 years at the bank. Gundewar has over 27 years of banking experience in risk management, and treasury operations, among others and has worked with SBI Capital Markets, Standard Chartered Bank, and Yes Bank earlier. “The terms of his appointment are as per the service conditions applicable to the employees of the Bank. The Board of Directors welcomed Mr. Satish Gundewar as the CFO and a … [Read more...] about DCB Bank appoints Satish Gundewar as new CFO effective July 1

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Private sector lender RBL Bank on June 14 said that rumors linking the appointment of R Subramaniakumar with asset quality challenges for the bank in the near future are unfounded and baseless. The lender said that it does not foresee any asset quality challenges going ahead and has built adequate provisions to tide against bad loans. "There has been considerable speculation and rumours linking the appointment of the new MD & CEO of the Bank, Mr. R. S. Kumar, with asset quality challenges for the Bank in the near future. We wish to reiterate that such speculation is baseless and unfounded and purely speculative in nature," the lender said in a regulatory filing. "For the year ended March 31, 2022, the Bank’s gross and net NPA were 4.4% and 1.3%, with a provision coverage ratio of … [Read more...] about Rumors linking appointment of R Subramaniakumar with asset quality challenges unfounded: RBL Bank

Representative image Private sector major HDFC Bank will open between 1,500 and 2,000 branches each year for the next three to five years and will roll out new product features every three weeks, the lender’s Managing Director and Chief Executive Officer Sashidhar Jagdishan said in the bank’s FY22 annual report. “The branch will be digital from a customer on-boarding and transaction/servicing perspective. It will provide the emotional connect and relationship management necessary for offering financial solutions to our customers. These branches will be small in size and will be phygital relationship centres,” Jagdishan said. “This will enable us to go after the catchment more aggressively and build the required liability franchise that we are known for, and we are confident that we would execute well,” he added. As on March end, HDFC Bank’s total banking outlets stood at 21,683, while total branches including 4 overseas ones stood at 6,342. The lender’s total ATMs and cash … [Read more...] about HDFC Bank to open up to 2,000 branches in FY23, roll out new features every three weeks, says MD Sashidhar Jagdishan

File image of HDFC Bank HDFC Bank, India’s largest private sector lender, is on an aggressive drive to recover lost ground in the credit card business. On March 11, the Reserve Bank of India lifted a ban imposed on the bank in December 2020, allowing the lender to launch digital products. In an exclusive interview to Moneycontrol on March 16, HDFC Bank’s group head of payments, consumer finance and digital banking, Parag Rao, said the bank has used the interim period to relook at fault areas and revamp strategy. Rao is optimistic the bank can get back lost market share in cards in 2-3 quarters. Rao also spoke about digital initiative plans in FY23 and on forming a digital-only bank. Edited excerpts: Q: The RBI had barred HDFC Bank from issuing credit cards and launching fresh digital initiatives in December 2020. What are the lessons learned? A: We are thankful to the RBI for pointing out some of the areas where we needed to improve. HDFC Bank has consistently … [Read more...] about Exclusive Interview| After RBI green light, HDFC Bank will take 2-3 quarters to regain credit card market share, says Parag Rao

The Board of private sector lender DCB Bank has approved the appointment of Satish Gundeswar as the new Chief Financial Officer (CFO) and a Key Managerial Personnel (KMP) of the Bank effective July 1, the bank informed exchanges on June 22. Gundeswar, presently serving as the deputy CFO of the bank, will succeed Bharat Sampat. Sampat retires on June 30 after spending over 13 years at the bank. Gundewar has over 27 years of banking experience in risk management, and treasury operations, among others and has worked with SBI Capital Markets, Standard Chartered Bank, and Yes Bank earlier. “The terms of his appointment are as per the service conditions applicable to the employees of the Bank. The Board of Directors welcomed Mr. Satish Gundewar as the CFO and a KMP of the Bank,” the bank said. Close … [Read more...] about DCB Bank appoints Satish Gundeswar as new CFO effective July 1

Bank stocks are on the cusp of a bear market , and further declines may be ahead as the result of a slowing economy and an inverted yield curve . One popular barometer of bank stock prices, the SPDR S&P Bank ETF ( KBE ), opened trading down by 21% from its 2018 high, technically a bear market. And another key index, the KBW Nasdaq Bank Index (BKX) , wasn't far behind, down 18%. Financial stocks represented 13.3% of the capitalization-weighted S&P 500 Index (SPX) as of the end of February, per MarketWatch , and thus exert a significant impact on the market as a whole. "The underperformance of the banking sector has really started to accelerate since the Fed went dovish . Banks make money by making loans, so if the Fed is seeing a weaker economy possibly, then loan growth is going to be tough," as Michael Binger, president of Gradient Investments, told CNBC . Banks May Face More Steep Declines Ahead (Declines From 2018 Highs) KBW Nasdaq Bank … [Read more...] about Why Bank Stocks On Brink of Bear Market May Plunge Further