Page 6 - Banking Finance February 2023

BANK UPDATE

In an interview, DBS Bank India man- The issue by NABARD had a base size vances grew moderately at Rs. 1.53
aging director and chief executive of- of Rs 2,000 crore plus a green-shoe lakh crore, according to RBI's Sched-
ficer Surojit Shome clarified that it option of Rs 3,000 crore. uled Banks' Statement of Position in
would take another 18 months for the India.
Investors like pension and insurance
bank to shed the impact of the amal-
funds are required to invest part of the A break-up of the deposits accretion
gamation on profitability.
corpus in public sector undertaking during the reporting fortnight shows
(PSU) bonds in line with regulations. that time deposits and demand depos-
UCO Bank posts Rs. 652.9 its rose by Rs. 2.13 lakh crore and Rs.
Meanwhile, Rural Electrification Cor-
crore net profit poration (REC) is likely to raise up to Rs 1.68 lakh crore respectively.
UCO Bank has posted a net profit of 3,000 crore through a 10-year paper
Rs.652.97 crore for the current fiscal (maturing in January 2033). The base SIDBI teams up with IBA
as against Rs.310.39 crore a year ago, size is Rs 500 crore with a green-shoe
for preparing MSME credit
registering year-on-year growth of option of Rs 2,500 crore.
110.37 per cent which is the highest scores
REC is also looking at issuing medium-
ever quarterly net profit in 80 years Small Industries Development Bank of
term paper (about 41-42 months) to
history of the bank. India (SIDBI) is working with Indian
raise up to Rs 3,000 crore from the
The net profit for nine months ended market. The actual issuance would Banks' Association to get the member
December, 2022 rose to Rs.1,281 depend on market conditions. banks to provide borrower details so as
crore which is also the highest ever net to enable it to pull out alternate
profit for a nine-month period, it sources of data to come up with credit
Exim Bank raises $1 billion
added. Net Interest Income (NII) for scores for MSME customers.
via 10-yr sustainability
the current fiscal increased to According to Sudatta Mandal, DMD,
Rs.1,951.87 crore as against Rs. bond SIDBI, it will generate "fit" rank based
1,762.61 crore for the previous year, on GST data, bank statements and in-
Export-Import Bank of India (India
registering year-on-year growth of come tax returns so as to get a proper
Exim Bank) has raised $1 billion via a
10.74% fuelled by healthy growth in credit score for MSME borrowers and
10-year Sustainability Bond issue in the
loan book and improved yield on ad- enable them to avail a bank loan. SIDBI
144A/Reg-S format under its Environ-
vances, the release said. has collaborated with TransUnion Cibil
mental Social Governance (ESG) Frame-
work. and Online PSB Loans (OPL) for the
Nabard raises Rs. 5,000
same.
This issuance at a coupon rate of CT10
crore via 3-year bonds
(US 10-year Treasury Bond) +190 basis
In the first issue of fund raising through To avert fraud, Govt allows
points makes India Exim Bank the first
bonds in 2023, National Bank for Agri-
Indian issuer to open the markets for banks to use face recogni-
culture and Rural Development
dollar and sustainability bond issuances
(NABARD) has raised close to Rs 5,000 tion, iris scan for some
in 2023, the development finance in-
crore via three-year bonds.
stitution said in a statement. transactions
The coupon for the three-year bond The Indian government is allowing
was 7.63 per cent. The yield on gov- Bank deposits surged by banks to verify individual transactions
ernment bonds with similar maturity that exceed a certain annual limit us-
Rs. 3.82 lakh crore in the
was above 7.16 per cent. ing facial recognition and an iris scan
last fortnight of third
Bonds by corporates and financial sec- in some cases, in a bid to reduce fraud
tor players carry a spread over govern- quarter and tax evasion, three sources told
ment paper. Reuters.
Deposits of all scheduled banks collec-
Bond dealers said NABARD was able to tively surged by a whopping Rs. 3.82 A few large private and public banks
get fine rates as supply of paper in the lakh crore in the fortnight ended De- have begun using the option, said one
market is low. cember 30, 2022, even as their ad- of the sources, a banker, who declined

6 | 2023 | FEBRUARY | BANKING FINANCE