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Business Standard
6 days ago
- Business
- Business Standard
RBI to continue with supervisory measures for early risk identification
The Reserve Bank on Thursday affirmed its commitment to continue with its supervisory measures aimed at early identification of risks and vulnerabilities. The central bank would also focus on enhancing cyber resilience and capabilities of Supervised Entities (SEs) by implementing the recommendations of the inter-regulatory Working Group, which has uniform baseline cybersecurity guidelines for financial entities, it said in its annual report. It can be noted that over the last two-three years, the RBI has taken a slew of supervisory actions against entities, including business curtailment actions. "The Reserve Bank would continue with the supervisory initiatives aimed at early identification of risks and vulnerabilities, increasing the focus on the root cause of vulnerabilities, and harmonising the supervisory rigour across various segments of the financial system," the RBI said in its annual report. In the report, the RBI said the Indian banking sector is resilient, but added that given the heightened global uncertainties, proactive risk management is a necessity. "Considering the dynamic nature of the interest rate risk, banks need to address both trading and banking book risks, especially in light of moderation in Net Interest Margin (NIM)," the annual report recommended. On the regulatory policies front, the annual report said the Reserve Bank would consolidate and streamline regulations to improve business efficiency and simplify compliance. The report said several regulatory and supervisory guidelines were issued in FY25 to strengthen governance, risk management practices and operational resilience at lenders. In the new fiscal, the RBI will be undertaking a review of the citizens' charter for further improving the timeliness of regulatory approvals and citizen-centric services. It will also undertake a review of the Integrated Ombudsman Scheme, 2021, to enhance the quality and speed of grievance resolution, the annual report said, adding that technology initiatives will be undertaken to upgrade the complaint management system. The central bank will also be embarking on drafting a new Payments Vision document, which would aim to build on the growth of payment systems in the last decade and provide further impetus to entities in the payments ecosystem to develop and deploy solutions in this space. Enhancing security, customer protection and fraud prevention will remain key priorities when it comes to digital payments in FY26, the report said. The RBI also said that it will undertake a review of the financial inclusion index in FY26, after the revision in the priority sector lending master directions.
The Hindu
14-05-2025
- Business
- The Hindu
Karnataka Bank attributes marginal decline in net profits to RBI's changed accounting policy
Karnataka Bank's net profits for the year 2024-25 and the fourth quarter of FY 25 declined slightly to ₹1,272.37 crore from ₹1,306.28 crore and to ₹252.37 crore from ₹274.24 crore, respectively. However, the corresponding previous year figures are not directly comparable due to changes in accounting policy for investments (as per master direction issued by RBI) since April 2024. Had the Bank continued to follow the earlier accounting policy, the net profit would have been ₹372 crore for Q4 FY25 (Y-o-Y growth of 35.6%) and ₹1,467 crore for the Full Year of FY25 (Y-o-Y growth of 12.3%), said a release from the Bank. In its meeting here on Wednesday, the Board of Directors of the Bank approved the financial results for the quarter and full year ended March 31, 2025. The Bank has clocked an all-time high Aggregate Business at ₹1,82,766.21 crore. The Bank has made notable improvements in its three primary objectives of expanding the distribution network, improving the quality of asset book and working towards improving financial metrics. Bank's Aggregate Deposits stood at ₹1,04,807.49 crore, registering YoY growth of 6.96%, while Gross Advances stood at ₹77,958.72 crore, registering YoY growth of 6.79%. Retail advances grew by 15.44% while retail deposits improved to 93.4%. CASA Deposits grew by 6.35%, from ₹31,293 crore as in March 2024 to ₹33,281 crore as in March 2025. Announcing the results here, Managing Director and CEO Srikrishnan Hari Hara Sarma said, 'Karnataka Bank's focus on developing retail, mid-market and direct-to-corporate lending businesses is picking up steam as reflected in the book growth during the last few quarters. The bank is well-positioned in the liability franchise, digital, and branch-led distribution. Based on sound financial parameters achieved during the year, substantial improvement in the book quality and improved technology platforms and processes, the outlook for FY'25-26 looks very promising.' Executive Director Sekhar Rao said, 'FY25 was a year marked by macroeconomic headwinds, tightening liquidity, and pressure on Net Interest Margins (NIMs). Despite these, we demonstrated resilience and adaptability, delivering a stable performance and reinforcing our strategic priorities.
