The economic slowdown is likely to weigh on the credit offtake of the banking system, but brokerage firm BNP Paribas says in India the sector will recover, thanks to lower cost of funds, cost efficiencies and lower tax.The brokerage said higher operational efficiency driven by digital initiatives and lower workforce requirements will ensure that the cost to income ratio maintains its downward trajectory."We believe a lower cost of funds, cost efficiencies, and the benefit from lower tax rates should lead to return on equity (RoE) accretion of 370bps for private banks. Higher RoEs should warrant much higher price-to-book ratios (P/Bs). We see a 10-15 percent upside from current valuations for private banks over the next five years," said BNP Paribas.Close Given that the asset quality cycle has peaked, the credit cost should be lower than those in the previous cycle, the brokerage said. related news Sensex at record high but midcaps likely to generate wealth; 20 stocks … [Read more...] about Banking set to see a recovery, life insurance the next big sector: BNP Paribas
Banking and credit
With banks increasingly facing the problem of bad loans, what can help them distinguish between good borrowers and bad ones? This is where the RBI’s Public Credit Registry or PCR comes in.The proposed repository of financial data will contain information about all borrowers. Sakshi Batra talks to Gaurav Choudhury, Deputy Executive Editor, Moneycontrol, to find out why this is an important step, what the implications are and the challenges in implementing this.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app. … [Read more...] about [email protected] | Why is RBI’s public credit registry important?
While a debate is going on whether the RBI should do more to ease credit to MSMEs, officials said the central bank has provided special training to nearly 11,000 officers at various commercial banks on lending to micro, small and medium enterprises. This training has been provided to officers working at nearly 3,000 bank branches covering all districts in India through more than 2,000 special workshops in the last three years, officials said.These are mostly specialised bank branches catering to the MSME sector where this multi-level training has been provided, covering branch managers, senior officers and even faculty members of staff colleges who can further pass on the training to the bank employees.Most importantly, the training exercise was executed in consultation with the government, including with the active involvement of the MSME ministry and the RBI's objective has been to create a conducive environment to help these small entrepreneurs and companies avail easy and faster … [Read more...] about RBI trains 11,000 bank officers on MSME credit, nearly 3,000 branches covered
At a time when foreign brokerages are struggling and shutting shop in India, South Korea's Mirae Asset, which already has a mutual fund in India, is planning to enter the broking business.It is also going to have verticals dedicated to private equity and investment banking.Mirae Asset Group scouting for private venture/equity investments in India and is setting up investment banking and broking business through Mirae Asset Capital Market India Pvt. Ltd.Close Swarup Mohanty, Chief Executive Officer, Mirae Asset Global Investments (India) said, " We are looking at Mirae Asset Capital Markets coming out here and establishing itself in India. We will be applying for the license soon."Himadri BuchAssistant Editor|Moneycontrol.com Essel Group stake sale in Zee: Will it release logjam for MFs?SEBI move to up minimum PMS investment could benefit mutual fundsExclusive | L&T MF CIO Soumendra Nath Lahiri resignsMohanty was speaking at Mirae Asset press meet held in Mumbai to discuss business … [Read more...] about Mirae Asset Group to foray into PE, investment banking and broking biz
Kerala-based private sector lender CSB Bank (earlier known as The Catholic Syrian Bank) will launch its initial public offering for subscription on November 22.The anchor investor offer period will be one working day prior to the IPO opening date which is November 21.The issue will close on November 26. The bank in consultation with merchant bankers will finalise basis of allotment on December 2 and will credit equity shares to shareholders' DP accounts on December 3, Axis Capital said in its note.Close Equity shares are proposed to be listed on the BSE, as well as, the National Stock Exchange on December 4. The book running lead managers to the issue are Axis Capital and IIFL Securities. related news Avoid CSB Bank: Choice Equity Broking Subscribe to CSB Bank: Hem Securities Subscribe to CSB Bank: Mehta Equities Here are 10 key things to know before subscribing the issue:Bank's ProfileCSB has a strong base in Kerala along with a significant presence in Tamil Nadu, … [Read more...] about CSB Bank IPO to open on November 22; 10 things you need to know