Page 6 - Banking Finance April 2025
P. 6

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
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