Page 6 - Banking Finance May 2021

BANK UPDATE

Bank unions have also begun engaging demand and the bank's focus on is the lowest since 2016 when it stood
with customers and the public at large, capturing market share in better- at USD 127.4 million. On an annualised
on what they believe are the ill-effects rated corporates. The bank expects the basis, this was 33.7% down from the
of privatization. momentum to continue as the private Q1 of 2020, the report read.
According to the statement by the investment cycle is likely to revive from The biggest drop was loan syndication
AIBEA, "Public sector banks provide H2FY22." fees that more than halved (down
permanent jobs for the educated 50.5%) to USD 44.7 million, followed
youth. But we know the plight of the SBI signs $1-billion loan by M&A advisory fees which plunged
employees working in the new private deal with JBIC 47% to USD 33.1 million and DCM
banks where job security is totally (debt capital market) underwriting
absent. Fair wages are denied. Trade SBI has recently entered into a loan fees that fell 34.9% to USD 53.0
union rights are non-existent. Thus, agreement amounting to up to $1 million.
privatisation of banks will enslave the billion with Japan Bank for SBI Caps took the top spot in overall
young employees into these adverse International Cooperation. The loan is investment banking fee league table
conditions." intended to promote smooth flow of
funds for the whole range of business with 13.8% wallet share, collecting USD
operations of Japanese automobile 26.9 million.
HDFC Bank loans grow manufacturers in India. Axis Bank topped the ranking for bonds
14% in FY21 Dinesh Kumar Khara, Chairman, SBI, underwriting worth USD 2.5 billion

HDFC Bank has reported 16.3% growth remarked, "The COVID-19 crisis has from 30 issues or 11%b market share.
in deposits and 14% in advances during delivered a significant shock to global
the financial year 2020-21. IndusInd trade, disrupted production lines, and Private banks to report
Bank and Yes Bank too have reported depressed global demand. At a time strong deposit growth for
high deposit growth of 27.7% and when people are preferring personal
54.7% respectively, indicating a gain in mode of transport, this collaboration March, 2021 quarter
market share after a turbulent fourth between SBI and JBIC will help the Indian private banks are expected to
quarter in FY20. bank in extending loan facility to entire report robust deposit growth in the
In a statement to the exchanges, HDFC supply chain of Japanese automobile March quarter, going by initial
Bank stated that its deposits stood at industry, including suppliers, dealers numbers announced by three banks.
Rs. 13.4 lakh crore at the end of March and ultimately to the end users." HDFC Bank, IndusInd Bank and Federal
2021 - an increase of 5% over the Bank have recently reported key
previous quarter and a 16.3% increase I-banking fees plunge 34% business performance indicators,
for the financial year. in Q1 to USD 194.5 million including loan and deposit growth, to
stock exchanges. India's largest private
HDFC Bank's loans stood at Rs. 11.3 Despite a record year for primary
lakh crore - an increase of 4.6% over share issues, investment banking sector lender HDFC Bank said its
the previous quarter and 13.9% year- activities declined in the first quarter deposit base rose to about Rs. 13.35
on-year. This shows that a large chunk of the year, pulling down their fees by trillion as of March 31, 2021,
of the banking sector's loan growth has almost 34% to USD 194.5 million and registering a growth of around 16.3%
come from HDFC Bank. making it the lowest start to a year from a year earlier.

According to a research report by since 2016. However, the ECM Federal Bank reported provisional total
Emkay Global, the bank has underwriting fees reached a three-year deposits of Rs. 1.72 trillion as of March
accelerated the purchase of mortgage high of USD 63.8 million, growing 7.2% 31, an increase of 13% from a year
loans from HDFC to Rs. 7,500 crore in over the same period in 2020, earlier. IndusInd Bank also reported
Q4 from Rs. 7,100 crore in Q3. according to the data collated by strong deposit growth of 27% to Rs.
Refinitiv. 2.56 trillion at the end of the March
The report said, "Corporate growth
remains strong at 21% year-on-year According to the report, at USD 194.5 quarter of FY21.
owing to healthy working capital million, the fee collected by I-bankers While banks are trying to build their

6 | 2021 | MAY | BANKING FINANCE