Page 7 - Banking Finance September 2023

BANK UPDATE

Profit on sale of investments were Rs Ratings and Research's Director (core
Attention Subscribers
3,847 crore during the quarter due to analytical group) Soumyajit Niyogi.
softening of bond yields, as compared Please renew your Subscription of The
to a loss of Rs 6,549 crore during the Insurance Times Journal to receive
YES Bank to buy microfi-
same period last year. Total non-inter- copy of the journal uninterruptedly.
nance firms in FY24 to
est income was Rs 12,603 crore against
You can now pay by GPAY, Phonepe,
Rs 2,312 crore in the first quarter of boost priority sector lend-
Paytm, Amazon, ICICI Pay, BHIM UPI
the previous financial year.
ing
YES Bank is evaluating microfinance
Banks likely to raise de-
companies to acquire in order to boost
posit rates to meet credit its PSL (priority sector lending) portfolio
and reduce the drag of legacy PSL is-
demand
sues, MD and CEO Prashant Kumar said.
With the excess liquidity in the bank-
"During Q1, the bank has bought PSL
ing system getting absorbed due to the
certificates amounting to Rs. 4,300
Reserve Bank of India's (RBI) incre-
crore. For reducing RIDF (Rural Infra-
mental cash reserve ratio (I-CRR) mea-
structure Development Fund) drag,
sure, banks are likely to raise deposit
the bank continues to actively engage
rates on select tenors to meet higher
with select BC (banking correspondent)
credit demand ahead of the upcoming
partners for organic growth opportu-
festive season.
nities while we simultaneously evaluate
Recently RBI asked banks to maintain target for potential acquisition as
an incremental cash reserve ratio (I- well," he said.
CRR) of 10 per cent on the increase in
While it is still evaluating microfinance
their net demand and time liabilities
entities and the entire process is tak-
(NDTL) between May 19, 2023, and
ing some time, the bank has main-
July 28, 2023. Lenders have to main-
tained the guidance of making such an
tain I-CRR from the fortnight starting
acquisition in FY24, Kumar said, adding
on August 12.
that the bank is also looking at other
According to experts, banks will wait options such as co-lending and portfo- Sashi Publications Easy Payment
for a fortnight to gauge the liquidity lio buyouts even as it grows the agri- Modes :-
situation, and demand for credit, and culture and SME loan books.
i) UPI ID: SASHIBOOKS@KOTAK
later take a call on the quantum of the
"The focus is on the rural market, we ii) GPAY: 9830171022@okbizaxis
increase in deposit rates.
would definitely like to see much
iii) PAYTM: 9830171022@paytm
The hike in deposit rates could be in higher disbursements and a higher
iv) NEFT: Current A/C
the range of 25-50 basis points (bps), book on the rural side," he said.
402120110000327 of 'SASHI
they said. One basis point is one-hun-
As of June 30, YES Bank’s entire rural PUBLICATIONS PRIVATE
dredth of a percentage point.
portfolio qualified under granular PSL
LIMITED, Bank of India, VVK
"Banks could increase deposit rates by targets, whereas over 90 per cent of
Road Branch., Kolkata, India,
25-50 basis points in different buckets the SME book was PSL compliant. The IFSC Code : BKID0004021
depending upon the demand for credit rural portfolio for the bank was up 33
v) Credit Card:
and liquidity conditions in the coming per cent as at the end of June, ac-
www.sashipublications.com
few months. After a long time, com- counting for 2 per cent of retail assets.
For any query please call
petitive dynamics in the deposit mar- Rural disbursements for the quarter
9073791022/9883398055
ket have intensified, mostly owing to were at Rs. 717 crore, up 34 per cent
revivals in credit demand," said India y-o-y and 62 per cent q-o-q. www.sashipublications.com
BANKING FINANCE | SEPTEMBER | 2023 | 7