Page 6 - Banking Finance April 2025

BANK UPDATE

14.2% year-on-year in the fortnight profits by as much as Rs. 12,000 crore, has emphasised the growing demand
ending January 24, 2025, driven by according to credit rating agency for innovative and on-the-go banking
slower credit uptake in vehicle loans ICRA. This would translate to a four services in India, driven by favourable
and credit card segments, according to basis point (bps) dip in Return on As- demographics and rising digital adop-
data released by the Reserve Bank of sets (RoA) and a 40 bps drop in Return tion. Speaking at the virtual launch of
India (RBI). on Equity (RoE). State Bank of India's platinum jubilee
celebrations, she noted that the entry
The data, collected from 41 major If the insurance premium is also raised-
commercial banks, showed that over- from Rs. 0.12 to Rs. 0.15 per Rs. 100 of new banks and non-bank entities,
all non-food credit grew by 12.5%, a of deposits-the cumulative impact coupled with stringent regulation, pre-
sents both opportunities and chal-
three-month high, though lower than could reach seven bps on RoA and 68
lenges for established financial institu-
the 16.2% recorded in the same period bps on RoE. The insured deposit ratio
a year earlier. Credit to agriculture and (IDR), currently at 43.1% as of March tions. Sitharaman inaugurated 70 new
branches and 501 women-led cus-
allied sectors grew at a slower pace of 31, 2024, could rise to 47.0-66.5% de-
tomer service points (CSPs) as part of
12.2% compared to 20% in the previ- pending on the revised limit. The De-
ous year. The subdued demand re- posit Insurance and Credit Guarantee the celebrations.
flects cautious consumer sentiment Corporation last increased coverage in Commending SBI's adaptability, she
and tighter lending norms. February 2020 to Rs. 5 lakh per deposi- said the bank has remained agile and
tor per bank. competitive despite recent disruptions,
ICRA Warns Deposit Insur- and is well-positioned to generate sus-
FM Highlights Surge in De- tainable growth through operational
ance Hike May Impact excellence in lending, asset quality, and
mand for Tech-Driven,
Bank Profitability capital generation.
Customised Banking
A proposed increase in deposit insur- Bank forum to Prez: Stop
ance limits could reduce annual bank Finance Minister Nirmala Sitharaman
SBI Kolkata unit shift
Bank Bachao Desh Bachao Manch, a
India, World Bank may sign $500 mn housing project civil society forum of former bankers

The Government of India and the World Bank have signed a $500 million and eminent citizens, has written to
agreement to construct the Green National Highway Corridors Project President Droupadi Murmu to stop SBI
(GNHCP), spanning 781 kilometers across Himachal Pradesh, Rajasthan, shifting a significant portion of its Glo-
Uttar Pradesh, and Andhra Pradesh. bal Market Unit (GMU) operations
The total project cost is estimated at $1.29 billion (Rs. 7,662.47 crore). This from Kolkata to Mumbai.
information was provided by Union Minister for Road Transport and High- "As per our information, SBI plans to
ways, Nitin Gadkari, in a written reply in the Lok Sabha. relocate its Centralised Global Back
Scheduled for completion by May 2026, the GNHCP includes several inno- Office (CGBO), which operates across
vative approaches to reduce carbon emissions and conserve natural resources global financial hubs, including Sydney,
throughout its lifecycle. Bahrain, Hong Kong, London and New
Key components of the project include the conservation of natural resources York, along with its Forex Treasury,
by using cement-treated sub-base and reclaimed asphalt pavement, and Derivatives and Structured Products
promoting the use of local and marginal materials such as lime, fly ash, and divisions. It is noteworthy that since its
waste plastic. For slope protection, bio-engineering measures will be em- inception, the GMU (formerly known as
ployed, including coco fiber/jute erosion control blankets with shrub and the Foreign Department, Kolkata) has
grass plantations, hydroseeding, shotcrete crib walls with vegetation, bam- successfully carried out these opera-
boo plantations, hedge brush layers, interlink chain mesh with grass strips, tions from Kolkata," the letter says.
and geocells with hydroseeding. The forum has said this is not the first

6 | 2025 | APRIL | BANKING FINANCE