Page 5 - Banking Finance September 2023

BANK UPDATE

Banking

News

Karnataka Bank net profit said that Regional Rural Banks (RRBs) growth (vis-a-vis the July 1, 2022 out-
should continue their focus on the flag- standing) to Rs. 95,347 crore, per RBI
zooms 225%
ship schemes of the Central Govern- data on sectoral deployment of bank
Karnataka Bank's net profit rose by
ment such as PMJJBY, PMSBY, PM credit.
224.66 per cent Year on Year (YoY) to
SVANidhi, Atal Pension Yojana, PM Jan
As on July 1, 2022, growth of the afore-
Rs 370.7 crore in the quarter ended
Dhan Yojana, PM Mudra Yojana, KCC,
mentioned portfolio was muted at 1.4
June 2023 (Q1Fy24) on improvement in
KCC Animal Husbandry & Fisheries, and
per cent (vis-a-vis the July 2, 2021 out-
net interest Margin (NIM) and non-in-
aim for their saturation.
standing) to Rs.75,659 crore.
terest income.
Chairing a review meeting with chair-
Its net interest income expanded by
persons and senior officials of Regional
18.5 per cent in the reporting quarter M&M gets 3.53% in RBL
Rural Banks from Southern Region in
to Rs 814.68 crore from Rs 687.56
Chennai, Sitharaman said that RRBs Bank
crore in Q1Fy23. Its NIMs improved by
and Sponsor Banks should improve their Mahindra & Mahindra Limited has
35 basis points to 3.68 per cent in
Current and Savings Account (CASA) picked up 3.53 per cent stake in RBL
Q1Fy24 from 3.33 per cent a year ago,
Ratio. Bank as an investment at a cost of Rs.
the bank said in a statement. Its stock
417 crore, the company informed the
closed 5.9 per cent higher at Rs 215.7 Sitharaman also highlighted the CD
exchanges.
per share on BSE. Ratio, Gross NPAs, and Provision Cov-
erage Ratio (PCR) of RRBs. "We may consider further investment
The other income more than doubled
subject to pricing, regulatory approv-
to Rs 323.84 crore in Q1Fy24 from Rs
Banks' gold jewellery loan als and required procedures.
132.79 crore in Q1Fy23.
The deposits grew by 7.92 per cent to top Rs.1 lakh crore mark
YoY to Rs 86,959.86 crore and its Rs. 48,461 crore unclaimed
soon
advances grew at 5.36 per cent YoY at
Banks' loans against gold jewellery deposits transferred
Rs 61,489.41 crore at the end of June
(LAGJ) portfolio could cross the Rs. As of March 31, 2023, the banks had
2023.
1lakh crore mark in the next few transferred unclaimed deposits of Rs
Finance minister Sitharaman months, going by the strong year-on- 48,461.44 crore from 16,79,32,112
year (y-o-y) growth recorded by them accounts to the Depositor Education &
asks RRBs to focus on flag-
as at June-end 2023. Awareness Fund, Parliament was in-
ship schemes As on June 30, 2023, banks' LAGJ port- formed.
Finance minister Nirmala Sitharaman folio recorded a robust 26 per cent In a written reply in Rajya Sabha, Min-
BANKING FINANCE | SEPTEMBER | 2023 | 5