State-run banks are proposing to create a central talent pool and finalise a three-year business strategy for individual banks, aiming to improve their performance and competitiveness. In April, after the PSB Manthan conclave, the government asked PSBs to set up a three-year roadmap for their business strategy and suggested that they explore more collaboration among themselves, with larger banks sharing best practices with smaller ones and guiding them in areas where they need expertise.
​​The release also stated that the researchers are of the view that instead of a big bang approach, a gradual approach as announced by the government would result in better outcomes.
"SBI initiated open offer e-auction towards sale of fund based exposure of KSK Mahanadi Power Co. Ltd on 100 per cent cash basis on April 20, 2022 for a reserve price of Rs 1,544.08 crore," SBI said in a regualtory filing on Thursday.
The RBI wants to strike a better balance between the ability of digital lending to democratize credit and its potential to suck people into a debt trap. The typical fixed cost of originating, servicing and collecting a loan is Rs 5,000 for banks; for online platforms it’s a few hundred rupees.
The paper argued that while private sector lenders are more efficient in profit maximisation, public sector banks (PSBs) have done much better at promoting financial inclusion, delivering farm loans and achieving monetary transmission, which are key objectives of both the government and the RBI.
The Reserve Bank sold a net of $3.7 billion in the spot market and $18 billion in the forward market in June according to the latest data released by the Reserve Bank of India.
Bank credit expanded 14.5% year-on-year to Rs 123.7 lakh crore as on July 29 this year. By contrast, deposit mobilisation climbed 9.1% to Rs 169.7 lakh crore. Banks are required to mandatorily set aside a part of deposits to meet prudential norms.
" Several Indian private sector banks including HDFC Bank Ltd. and Axis Bank Ltd. are expanding their local branch networks, contrary to expectations that digitalization would obviate the need for physical branches" said a release by the market intelligence unit.
Based on supervisory data, in quarter-ending December 2021, the consolidated balance sheet of NBFCs grew at a faster pace than the corresponding period in the previous year. The bottom lines of the NBFC sector also improved in Q2 and Q3: 2021-22 with the waning of the second wave of COVID-19.