Latest news with #AnindyaBanerjee
Time of India
9 hours ago
- Business
- Time of India
In a first in 14 years, PSU banks beat private ones in loan growth
MUMBAI: For the first time since 2011, public sector banks (PSBs) have surpassed private banks (PVBs) in loan growth. At the end of FY25, PSBs outpaced PVBs by 4 percentage points, with PSBs recording a 13.1% year-on-year loan growth compared to 9% for PVBs. The strong performance was across multiple segments, including traditional areas like mortgages and corporate loans, as well as various non-mortgage retail segments such as auto loans. "Private banks have historically commanded premium valuations due to their steady market share gains, growing 6-7% faster than the system growth rates," said Pranav Gundlapalle, India head for financials at Bernstein. "If the growth advantage continues to narrow in the medium-term, the case for premium valuations weakens. While private banks still offer above average profitability and trade at reasonable valuations, the current risk of a relative growth slowdown may not be fully priced in." 'Capable competitors' ICICI Bank 's price-to-book (P/B) ratio is currently around 3.5. In contrast, State Bank of India P/B is around 1.5, reflecting differing market perceptions of the two banks' growth prospects, profitability, and risk profiles. Private sector banks have been flagging this increased aggression from public sector banks and the resultant increase in growth and profitability pressures. "There are very large, capable competitors who are also priced meaningfully below us," Anindya Banerjee , group CFO, ICICI Bank, said in its post earnings analyst call on April 19. "It does create some challenges in terms of growth, but I guess that's part of life. So, we will have to keep dealing with it as we go along and look at how we can drive other levers to continue to maintain profitable growth." HDFC Bank has also been flagging the same issue for several quarters. "We have seen over last 12 months, 18 months, the larger ticket corporate loans and the larger ticket SME loans, have been competitive, particularly coming from certain public sector institutions where the growth is an objective and not necessarily margin or returns, we have seen that pricing is very, very low on those," Srinivasan Vaidyanathan , chief financial officer, HDFC Bank had said in April. Substantial Loan Base RBI data and Bernstein analysis showed that the difference between loan growth of PSU and PVB banks was around 4% at the start of 2011. This reached a high of 20% in 2016. The growth differential started to reduce with the onset of Covid when it fell again to 4%. The impressive loan growth of public sector banks becomes even more remarkable when considering their substantial existing loan base. As of the end of FY25, PSBs held a total loan portfolio of ?98.2 lakh crore, representing 52.3% of the market share. In comparison, private sector banks (PVBs) had a loan base of ?75.2 lakh crore, accounting for 40% of the total loans. While on average the top 5 PSU banks grew their corporate loans by 10%, private banks saw less than 4% growth. The numbers were skewed because of negative growth for HDFC Bank and IndusInd Bank . On retail loans, while the top five PSU banks grew their book by over 22% at the end of FY25, private banks saw less than 12% growth. Analysts suggest that PSBs also have an upper hand due to higher levels of marginal cost lending rate (MCLR) loans, as they reprice with a two-quarter lag. "PSU banks are also relatively better placed to handle margin pressures due to the high share of MCLR, which ranges between 52-60%," Yes Securities said in a note. "Private sector banks have gained from savings account rate cuts, but they now stand largely equalized with PSU banks."
The Hindu
26-05-2025
- Business
- The Hindu
Rupee volatility may be back when tariff deadline ends, say experts
With the U.S. President's 90-day pause on the liberation day tariff nearing , the current stability of the rupee may not be sustained after the first half of fiscal 2026, according to experts. In a report by MUFG, its Senior Analyst Mizhael Wan had forecast that by Q1FY26, the rupee would appreciate as high as 83 a dollar as a trade deal with the U.S. is expected to be completed and the current inflation is well within RBI's threshold. However, analysts in India flag the possibility of an uptick in volatility in the long term, while they forecast the rupee to trade between 84 to 86 a dollar in the first quarter of FY 2026. 'From September 4, I expect the volatility to pick up. because July is the time when the deadline (for the 90 day pause) expires, …and that could be the time when volatility can be back in the market,' said Anindya Banerjee, Senior Vice President at Kotak Securities adding that the rupee may even breach the 86 a dollar level. This, however, is subject to RBI's moves to arrest the volatility, he added. Some of the volatility may have already started showing, said Dilip Parmar, Senior Research Analyst at HDFC Securities. 'The Indian Rupee has recently demonstrated elevated reactivity to movements in the U.S. dollar, a trend that is widely anticipated to continue,' said Mr. Parmar.
Time of India
08-05-2025
- Business
- Time of India
Presi tie-up with Birmingham Univ
Kolkata: on Thursday signed an MoU with the . The tie-up will lead to collaborations between the two institutes and students' exchange programmes, aimed at excelling in the fields of economics, finance and governance. Tired of too many ads? go ad free now The partnership will subsequently be extended to other social science areas as well. "It's a matter of great pleasure that students will have exposure to education, research and work through this exchange programme," said Presidency VC Nirmalya Narayan Chakraborty, urging students to take advantage of this head of the economics department at the University of Birmingham, Anindya Banerjee, visited the city for the ceremony. "This MoU is a small step towards achieving something big," he said. Presidency registrar Debajyoti Konar pointed out the MoU would be especially advantageous for economics BSc students. "They can pursue courses, such as MSc in economics and financial economics as well as MSc in money, banking & finance. The process of initiating MSc in big data and analytics is on for Presidency students. There are also chances of acquiring scholarships for Indian students," he said. Presidency has tie-ups and MoUs with other global institutes, such as Hiroshima University in Japan, Waseda University in Japan, SOAS University of London, London School of Economics, University of Cambridge, University of Groningen in the Netherlands, La Sapienza in Italy, Virginia Tech in the US, The University of Chicago, Sciences Po, Paris and Sciences Po, Lille.
Yahoo
11-02-2025
- Business
- Yahoo
Rupee Rallies Most in Over Two Years on Likely RBI Intervention
(Bloomberg) -- Sign up for the India Edition newsletter by Menaka Doshi – an insider's guide to the emerging economic powerhouse, and the billionaires and businesses behind its rise, delivered weekly. Nice Airport, If You Can Get to It: No Subway, No Highway, No Bridge Sin puente y sin metro: el nuevo aeropuerto de Lima es una debacle The Forgotten French Architect Who Rebuilt Marseille In New Orleans, an Aging Dome Tries to Stay Super How London's Taxi Drivers Navigate the City Without GPS The Indian rupee rallied by the most in over two years on suspected strong intervention by the nation's central bank. The currency gained nearly 1%, the most since November 2022, to 86.6362 per dollar. The rupee is Asia's best performer amid losses in other emerging market currencies on Tuesday. 'The RBI has been heavily intervening since yesterday morning to support the rupee,' said Anindya Banerjee, currency strategist at Kotak Securities. 'RBI will continue to support the rupee to hammer out any one-way, linear expectations.' An email sent to the central bank wasn't immediately answered. Trump's Tariffs Make Currency Trading Cool Again After Years of Decline Trump Promised to Run the Economy Hotter. His Shock and Awe May Have a Chilling Effect The Reason Why This Super Bowl Has So Many Conspiracy Theories Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Business Schools Confront Trump Immigration Policies ©2025 Bloomberg L.P. Sign in to access your portfolio
