Page 6 - Banking Finance June 2023

BANK UPDATE

Govt asks banks to plan clean-up of bad Gross non-performing assets (NPAs) witnessed a 32.7 per cent decline in its
loans of Rs. 12 lakh crore were reduced to 5.95 per cent of gross net profit at Rs 717 crore, it said in a
The finance ministry has asked public advances as of March 31, 2023, from regulatory filing.
sector banks to draw up a campaign 8.47 per cent by the end of March
Profits for both the March quarter and
for a one-time clean up strategy for 2022.
the fiscal year have been impacted by
clearing over 1 lakh bad loan recovery
accelerated provisioning, the bank
cases pending in debt recovery tribu-
South Indian Bank : Flex- said.
nals (DRTs).
ible savings accounts for For the quarter under review, its core
The ministry has asked banks to use an
net interest income grew 15.4 per
alternate dispute resolution platform NRIs
cent to Rs 2,105 crore, while the non-
like Lok Adalat to bring down the num- South Indian Bank has introduced SIB interest income was up 22.8 per cent
ber of cases. SEAFARER and SIB PULSE, two flexible to Rs 1,082 crore.
According to banking sources, there saving accounts for NRI customers.
The bank, which had to be rescued in
are over 2 lakh cases pending with With these products, NRIs now have
FY20 in a SBI-led effort, backed by both
debt recovery tribunals of which over the option to keep either deposits or
the Reserve Bank and the govern-
1.5 lakh are original applications for the required minimum amount in their
ment, said this is the second consecu-
over Rs.12 lakh crore exposure. Of savings accounts. Healthcare person-
tive year where it has been able to
these, the 12 public sector banks have nel and mariners both now have access
post profits.
over 1 lakh pending cases where the to flexible savings accounts, which
original exposure is around Rs.7.4 proves that South Indian Bank has been
Bank credit grows 15.7%;
crore. The issue was discussed in the working to streamline banking require-
finance ministry in the presence of law ments and offer top-notch customer deposits increase 10.2%
ministry officials. Banking system's credit rose by 15.7
service.
per cent year-on-year (YoY) basis in the
Mr. Murali Ramakrishnan, Managing
Indian Bank Q4 profit up fortnight ended April 7 to Rs 138.45
Director & Chief Executive Officer
47% to Rs. 1,447 crore (CEO), South Indian Bank, said, "It has trillion. This was the first fortnight in
the current financial FY24.
Indian Bank reported a 47 per cent rise been our constant endeavor to provide
in net profit to Rs 1,447 crore for the our customers with banking products The credit rose by 15 per cent YoY in
March quarter, helped by a decline in that fulfil their needs. Accordingly, our FY23. Reserve Bank of India data
bad loans and a rise in interest in- flexible savings products will offer tar- showed while advances grew by Rs 1.7
come. geted NRI segments with convenient trillion in the reporting fortnight, ac-
cretion to deposits more than doubled
The bank had earned a net profit of Rs avenues to park their savings. We are
to Rs 4.06 trillion. The growth in de-
984 crore in the year-ago confident that SIB SEAFARER & SIB
posits was 10.2 per cent YoY basis to
period.During the quarter, the bank's PULSE will lay the foundation for more
Rs 184.5 trillion at end of April 7.
total income increased to Rs 14,238 such products in the banking domain.
crore against Rs 11,405 crore a year I'm sure these products will create a
ICICI Bank posts 27% jump
ago, Indian Bank said in a regulatory new & universal template for the way
filing. NRI depositors transact with banks." in Q4 net profit
Interest income grew to Rs 12,244 ICICI Bank reported a 27.64 per cent
crore during the period under review Yes Bank Q4 net drops jump in consolidated net profit to
from Rs 9,832 crore in the correspond- Rs.9,852.70 crore for the January-
45% to Rs. 202 crore
ing quarter of the preceding fiscal. March quarter of 2022-23 compared
Yes Bank posted a 45 per cent decline to the year ago period.
The bank's board has recommended a
in its March quarter net at Rs 202
dividend of Rs 8.60 per share or 86 per On a standalone basis, the largest pri-
crore.
cent of Rs 10 face value for the year vate sector lender reported a nearly
ended March 31, 2023. For the entire fiscal FY23, the bank 30 per cent jump in its net profit for

6 | 2023 | JUNE | BANKING FINANCE