Latest news with #CurrentAccountSavingsAccount
Business Upturn
08-08-2025
- Business
- Business Upturn
AU Small Finance Bank shares surge 7% after RBI nod for Universal Banking Licence, analysts expect upto 18% upside in stock
By Aman Shukla Published on August 8, 2025, 09:15 IST AU Small Finance Bank shares jumped over 7% in morning trade on August 8, 2025, after Motilal Oswal reiterated its 'Buy' rating on the stock, setting a target price of ₹875. This implies an 18% upside from its last close at ₹744.10. The bullish outlook follows a major regulatory milestone: the Reserve Bank of India has granted in-principle approval for AU SFB to convert into a Universal Bank—making it the first to do so under the revised framework. According to Motilal Oswal, the RBI's nod validates AU's strong operational execution and franchise quality. The brokerage sees this transition as a transformative move that removes existing regulatory constraints, including borrower exposure limits and portfolio granularity requirements. This opens the door for AU to expand into larger-ticket lending across retail, SME, and mid-corporate segments. In a note, Motilal Oswal highlighted that Universal Bank status could significantly enhance AU's brand visibility, aiding stronger CASA (Current Account Savings Account) mobilisation. This, in turn, is expected to reduce funding costs and reinforce its liability profile—a critical factor in supporting long-term growth. The approval also brings additional regulatory benefits. AU will now be subject to a lower Priority Sector Lending (PSL) requirement of 40%, compared to 75% earlier. Furthermore, the bank is now eligible to explore para-banking opportunities, including wealth management and forex services. These segments could help diversify revenue streams and improve overall fee-based income. Another potential catalyst, according to the brokerage, is the pending RBI decision on extending the term of MD & CEO Sanjay Agarwal, whose current tenure ends in April 2026. A favorable outcome could act as a further re-rating trigger. Looking ahead, Motilal Oswal anticipates a recovery in net interest margins (NIMs) and earnings in the second half of FY26, along with steady credit growth. The bank is also likely to pursue a capital raise to strengthen its balance sheet and support expansion plans, further boosting investor sentiment. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
The Hindu
02-08-2025
- Business
- The Hindu
Expected rebound in export growth will not happen quickly amid U.S. tariff row: CUB MD
MSMEs expecting a rebound in export growth would now have to reconcile to the fact that it would not happen quickly amid a 25% tariff imposed by the U.S., N. Kamakodi, MD and CEO, City Union Bank (CUB) said. CUB has a MSME loan book of almost 50%, he told The Hindu in an interview. About ₹1,200 crore of the ₹55,000-crore book has exposure to exports. Out of that, ₹200 crore will be focused on U.S. exports, Mr. Kamakodi said. 'MSMEs have been able to survive by diversifying into other markets and also by focusing on the domestic market. The rupee depreciation is also helping them in their exports to other countries and offering them a cushion,' he said. 'Though it is challenging, entrepreneurs would reinvent themselves and bounce back,' Mr. Kamakodi said. On financial performance, he said the bank faced growth challenges in the financial year 2022-2023 and it stabilised in the financial year 2024-2025. 'We closed the financial year 2024-2025 with 14% credit growth. The same momentum is continuing. We had a credit growth of 16% for the first quarter of 2025-2026, with growth coming from all segments,' Mr. Kamakodi said. He also said the industry-wise concerns expressed around deposit growth during the same time in the last financial year, has normalised now. The bank's deposits grew 20% in the first quarter of 2025-2026. Mr. Kamakodi said there is around ₹500 crore incremental growth in Current Account Savings Account (CASA) deposits in the first quarter of 2025-2026 from the fourth quarter of 2024-2025. He also said the bank is seeing a decline in gross and net non-performing assets (NPA) in the last 8-10 quarters and the trend is expected to continue. The bank is looking to grow 2-3% more than the industry growth in the current financial year, Mr. Kamakodi said. As per regulations, Mr. Kamakodi who has been at the helm of the bank for 14 years now, has to step down and hand over the responsibilities to his successor on April 30, 2026. 'The succession planning will kickstart from October. A panel has to send names to the regulator for approval and a final decision would be taken. It will take another 3-4 months,,' Mr. Kamakodi said.
Mint
07-07-2025
- Business
- Mint
Public sector banks may scrap minimum balance fines: These PSU banks have waived the penalty
Public Sector Banks (PSBs) are in discussions with the Ministry of Finance to reconsider their stance of mandating customers to maintain a minimum balance in their savings deposit accounts amid the falling share of CASA deposits in the banks, reported the news portal Times of India on Monday, 7 July 2025. According to the news portal's report, the CASA or Current Account Savings Account deposits are declining in their share amongst the total deposits in the PSBs. In a meeting with the Finance Ministry, government officials have questioned the PSU banks on the need to penalise customers who do not maintain a minimum balance for their deposit accounts, according to the news report. The rising concerns of the Ministry were over the slowdown in the low-cost CASA deposits of the banks. Bankers citing Jan Dhan data told the news portal that many of these customer bank accounts were 'initially dormant', and the balances rose steadily. They said this was due to the influence of the national policy shift. Jan Dhan data is financial information collected under the Pradhan Mantri Jan Dhan Yojana (PMJDY), the national mission for financial inclusion. The data includes details of basic savings bank accounts opened under the scheme, the number of accounts, the total deposits, and the usage of India-made RuPay cards and other financial services. India's banking regulator, the Reserve Bank of India (RBI), in its financial stability report released on 30 June 2025, also said that the growth in term deposits and the share of the higher-cost term deposits continued to outpace the current account and savings account deposits for the banks. According to Mint's earlier report, many public sector banks, such as the State Bank of India in 2020, Bank of Baroda, Punjab National Bank, Indian Bank, and the most recent Canara Bank on 1 June 2025, have dropped their mandate for customers to maintain a minimum account balance (MAB). In these banks, if a customer fails to maintain their MAB, the PSU lender will not charge any penalty for the same. However, private sector banks like Axis Bank, HDFC Bank, and ICICI Bank are among others who has penalties imposed on the account holders who fail to maintain the minimum balance. The news portal reported that the PSU banks had started to remove the minimum balance requirement after a Right to Information (RTI) revealed that penalties collected for non-maintenance of balances surpassed the bank's net profits, which are offset by provisions for bad loans. Private banks offer certain products for their customers, like zero-balance accounts and salary accounts, which waive the need for a minimum account balance. However, the customers who opened their Jan Dhan accounts immediately got this minimum balance requirement waived. According to the news portal's report, banks have historically used returns from low-interest savings accounts to cross-subsidise banking services. However, the major costs have been reduced after pivoting towards digital banking, and the new approach is to recover the costs from the maintenance charges and via debit card fees and charges for transactions beyond the free limits. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
07-07-2025
- Business
- Time of India
IndusInd Bank shares in focus after Q1 business update shows 4% YoY drop in advances
IndusInd Bank shares may remain under pressure after its Q1FY26 business update showed a 3.9% YoY drop in net advances and a 0.3% fall in deposits. The corporate banking segment saw a sharp 14.4% decline in loans, while CASA ratio and LCR also weakened. The stock is still down over 40% in the past year despite recent short-term gains. Tired of too many ads? Remove Ads Segment highlights: Tired of too many ads? Remove Ads Corporate Banking net advances declined sharply by 14.4% YoY and 6.2% QoQ. Consumer Finance portfolio rose 4.8% YoY but edged lower by 0.9% QoQ. Retail and Small Business Deposits stood at Rs 1.84 lakh crore as of June 30, 2025, slightly down from Rs 1.85 lakh crore in March. The bank's daily average Liquidity Coverage Ratio (LCR) for Q1FY26 was 141.27%, marginally lower than 145.26% as of June 30. IndusInd Bank share price history Shares of IndusInd Bank are expected to be in focus on Monday, July 7, after the lender released its Q1FY26 business update post-market hours on Friday, reporting a 3.9% year-on-year (YoY) decline in net advances and a 0.3% YoY fall in per regulatory filings, the bank's net advances stood at Rs 3.34 lakh crore as of June 30, 2025, compared to Rs 3.47 lakh crore a year ago. Sequentially, advances declined 3.1%, down from Rs 3.45 lakh crore at the end of March also saw a mild annual dip, falling to Rs 3.97 lakh crore as of June 30, 2025, from Rs 3.98 lakh crore a year earlier. On a quarter-on-quarter (QoQ) basis, deposits dropped 3.3%, from Rs 4.10 lakh crore in Current Account Savings Account (CASA) ratio declined both annually and sequentially, falling to 31.49% in Q1FY26 from 32.81% in Q4FY25 and 36.67% in Q1FY25, indicating a shift in the deposit the past year, shares of IndusInd Bank have declined by 40.67%. On a year-to-date (YTD) basis, the stock is down 11.66%, and over the last six months, it has dropped 14.22%. However, in the shorter term, the stock has gained 25.50% in the past three months and 5.11% over the last Friday, IndusInd Bank shares closed 0.7% lower at Rs 856.20 on BSE.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
01-07-2025
- Business
- Time of India
PSU Bank Index up 2.5% on FinMin call for monetisation
Mumbai: The Nifty PSU Bank Index jumped more than 2.5% Monday after the finance ministry urged these lenders to offer more credit and monetise subsidiaries through IPOs and stake sales. They bucked the declines in the rest of the banking space. The Nifty PSU Bank Index gained 2.7%, while the Bank Nifty and benchmark Nifty lost 0.2% and 0.5%, respectively. All 12 stocks in the PSU Bank index closed higher. Bank of Maharashtra soared 5.3% while Punjab National Bank and Bank of Baroda rallied 3.9% and 3% respectively. Union Bank, Canara Bank, UCO Bank and Indian Bank gained over 2.5% each. Analysts said the gains could be limited but PSU Banks could outperform its private peers in the near term. "Although it was known, recent nudge to public sector lenders by finance minister to monetise their subsidiaries via IPOs and stake sales led to uptick in these stocks as the managements of these banks are expected to start working on the same," said Kaitav Shah, Lead BFSI Analyst, Anand Rathi Institutional Equities. "SBI is our top stock pick as it has multiple catalysts in place and its fund-raising would be book accretive." Shah said that the gains could fizzle out as it was largely a knee jerk reaction as bond yields have hardened post the interest rate cut and net interest margin compression is also anticipated. So far this year, the Nifty PSU Bank Index gained 10.1% while the benchmark Nifty index rose 7.5% in the same period. "The finance minister urged PSU banks to raise credit growth which was perceived positively," said Vishal Narnolia, AVP research, ICICI Securities. "PSU Banks can outperform private peers in the near term due to limited margin compression given their better Current Account Savings Account (CASA) ratio and lower Credit-Deposit (CD) ratio." Narnolia said that the valuations in the sector are also reasonable and there is room for further upside potential in these stocks in the near-term. Shrikant Chouhan, head of research, Kotak Securities said despite encouraging results, investors should not be swayed solely by short-term momentum and has a positive view on State Bank of India and Union Bank of India.
