Latest news with #NirmalaSitharaman
Economic Times
a day ago
- Business
- Economic Times
Govt tells state-run banks to start up lending game
The government has asked public sector banks (PSBs) to step up lending to startups. They have been asked to collaborate with educational institutions and incubation centres to identify and monitor early-stage startups to establish formal banking linkages, said people familiar with the development.'These issues were a part of the discussion during the performance review meeting of banks in June,' said an official who didn't want to be identified. 'We have asked banks to look at other measures, including specialised branches, to ensure that such ventures get credit support.' The country's biggest state-owned banks such as Bank of Baroda, Punjab National Bank and Central Bank of India did not sanction any loans to startups in FY25. 'This needs to change, and banks can learn best practices from each other to scale up lending,' said the recommendations have been underscored in follow-up meetings of finance ministry officials with banks on progress made and action taken in the past month.A bank executive said lenders are already exploring tie-ups with leading incubators such as Startup India, Nasscom and Sidbi for credible pipeline sourcing. 'We have also made a case for a separate rating framework or model for risk profiling startups, and it is being discussed internally among banks,' he said. A common rating framework will help in risk assessment and lead to early sanctions, said the bank executive. India has the third-largest startup ecosystem in the world and is expected to witness consistent annual growth of 12-15%, according to government the past, the government has made a case for startups to lower their reliance on funding from overseas lenders and explore the Indian banking system as part of their organisational government has also asked banks to conduct annual hackathons in association with the Indian Institutes of Technology (IITs), universities and science institutions as a part of an initiative to develop and encourage new initiatives in the fintech her review meeting in June, finance minister Nirmala Sitharaman had urged PSBs to proactively identify emerging commercial growth areas for the next decade that can bolster profitability and were also asked to deepen corporate lending in productive sectors, with a strong focus on maintaining robust underwriting and risk-management standards. Under the EASE reforms agenda for FY26, the core focus will be on fortifying risk management systems of PSBs, enhancing their capacity to absorb economic shocks and upholding financial stability, according to the Indian Banks' Association's latest report. EASE is the Enhanced Access & Service Excellence programme of the Department of Financial Services aimed at improving PSBs.
Mint
2 days ago
- Business
- Mint
Weak Credit Growth And Rate Cuts to Squeeze Profit at India's HDFC, ICICI Banks
(Bloomberg) -- India's top private-sector banks HDFC Bank Ltd. and ICICI Bank Ltd. could see profits come under pressure from loan growth at a three-year low and thinning margins driven by central bank rate cuts, as they report earnings this weekend. Margins face pressure from the Reserve Bank of India's rate cuts — 100 basis points since the start of the year — and a reduction of the cash reserve ratio to boost liquidity and further reduce funding costs in order to buoy the economy. The moves came as lending growth weakens, with gross bank credit growth hitting a three-year low in May. India's finance minister Nirmala Sitharaman asked government-owned banks to boost lending in order to fuel economic growth, according to Mint. Her ministry is also said to be considering issuing new banking licenses for the first time in almost a decade. Efforts to shore up the economy are under way as the country is gradually recovering after a consumption slowdown last year. Firms like Nestle India Ltd. — due Thursday — should show an acceleration in revenue growth led by better product volumes. Tariff concerns will cloud Infosys Ltd.'s Wednesday update after rival Tata Consultancy Services Ltd. said many American clients were cautious about tech investments given ongoing economic uncertainty. Shares in Tata Consultancy Services, HCL Technologies Ltd. and Tech Mahindra Ltd. all dropped after reporting earnings. Highlights to look out for: Saturday: HDFC Bank (HDFCB IN) and ICICI Bank (ICICIBC IN) profit growth is seen limited by thinning margins, as loans typically re-price faster than deposits when interest rates change. HDFC Bank said earlier in July gross advances grew 0.4% on the quarter, trailing deposit growth of 1.8%, as it continues efforts to bring down its loan-deposit ratio. HDFC Bank will also consider issuing bonus shares for the first time. Meanwhile, ICICI Bank is expected to set aside higher provisions as unsecured lending rises, raising asset quality risks, according to Bloomberg Intelligence. Monday: Eternal's (ETERNAL IN) first-quarter profit is expected to halve on losses at its quick-commerce business Blinkit. The unit is investing in expanding its 'dark stores' network, where it services quick-commerce orders, and analysts will watch for updated guidance on when profits are expected. Strategic steer on its new 'Going Out' business will equally be in focus. Tuesday: No major earnings. Wednesday: Infosys (INFO IN) could lower or pull its revenue growth guidance as demand for new projects deteriorates amid worsening economic conditions, BI said. Watch for commentary on whether clients are canceling projects, especially in industries hit by US tariffs, Kotak Institutional Equities said. Thursday: Nidec's (6594 JP) sales would likely be affected by uncertainties in the auto market, as demand for electronic parts and motors slow in Japan, according to BI. Founder Shigenobu Nagamori said the firm's appetite for takeovers remains intact, following its earlier decision to withdraw a $1.8 billion hostile bid for Makino Milling Machine Co. Friday: No major earnings. More stories like this are available on
Economic Times
2 days ago
- Business
- Economic Times
Weak credit growth and rate cuts to squeeze profit at HDFC, ICICI Banks
Margins face pressure from the Reserve Bank of India's rate cuts — 100 basis points since the start of the year — and a reduction of the cash reserve ratio to boost liquidity and further reduce funding costs in order to buoy the economy. ADVERTISEMENT The moves came as lending growth weakens, with gross bank credit growth hitting a three-year low in May. India's finance minister Nirmala Sitharaman asked government-owned banks to boost lending in order to fuel economic growth, according to Mint. Her ministry is also said to be considering issuing new banking licenses for the first time in almost a decade. Efforts to shore up the economy are under way as the country is gradually recovering after a consumption slowdown last year. Firms like Nestle India Ltd. — due Thursday — should show an acceleration in revenue growth led by better product volumes. Tariff concerns will cloud Infosys Ltd.'s Wednesday update after rival Tata Consultancy Services Ltd. said many American clients were cautious about tech investments given ongoing economic uncertainty. Shares in Tata Consultancy Services, HCL Technologies Ltd. and Tech Mahindra Ltd. all dropped after reporting earnings. Saturday: HDFC Bank (HDFCB IN) and ICICI Bank (ICICIBC IN) profit growth is seen limited by thinning margins, as loans typically re-price faster than deposits when interest rates change. HDFC Bank said earlier in July gross advances grew 0.4% on the quarter, trailing deposit growth of 1.8%, as it continues efforts to bring down its loan-deposit ratio. HDFC Bank will also consider issuing bonus shares for the first time. Meanwhile, ICICI Bank is expected to set aside higher provisions as unsecured lending rises, raising asset quality risks, according to Bloomberg Intelligence. ADVERTISEMENT Monday: Eternal's (ETERNAL IN) first-quarter profit is expected to halve on losses at its quick-commerce business Blinkit. The unit is investing in expanding its 'dark stores' network, where it services quick-commerce orders, and analysts will watch for updated guidance on when profits are expected. Strategic steer on its new 'Going Out' business will equally be in focus. Tuesday: No major earnings. ADVERTISEMENT Wednesday: Infosys (INFO IN) could lower or pull its revenue growth guidance as demand for new projects deteriorates amid worsening economic conditions, BI said. Watch for commentary on whether clients are canceling projects, especially in industries hit by US tariffs, Kotak Institutional Equities said. Thursday: Nidec's (6594 JP) sales would likely be affected by uncertainties in the auto market, as demand for electronic parts and motors slow in Japan, according to BI. Founder Shigenobu Nagamori said the firm's appetite for takeovers remains intact, following its earlier decision to withdraw a $1.8 billion hostile bid for Makino Milling Machine Co. ADVERTISEMENT - SK Hynix's (000660 KS) second-quarter operating profit likely rose 63%, consensus shows. Margins could reach 45% to 47%, BI said, supported by robust average selling prices for memory chips. Meanwhile DRAM shipments might have risen above its guidance. Seasonal demand could kick up DRAM and NAND shipments in the third quarter, BI added.- Nestle India's (NEST IN) first-quarter earnings may be supported by higher revenue contributions from both its domestic and export segments. The company is expected to be on an improving growth trajectory, Citi said. Watch out for strategic initiatives following a change in leadership. - Bajaj Finance's (BAF IN) lending growth is expected to slow in keeping with sector peers. Asset quality trends may be softer in the non-banking finance sector as a weaker macro environment has slightly exacerbated usual seasonal weaknesses, according to Jefferies. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
2 days ago
- Business
- Time of India
Weak credit growth and rate cuts to squeeze profit at HDFC, ICICI Banks
Margins face pressure from the Reserve Bank of India 's rate cuts — 100 basis points since the start of the year — and a reduction of the cash reserve ratio to boost liquidity and further reduce funding costs in order to buoy the economy. The moves came as lending growth weakens, with gross bank credit growth hitting a three-year low in May. India's finance minister Nirmala Sitharaman asked government-owned banks to boost lending in order to fuel economic growth , according to Mint. Her ministry is also said to be considering issuing new banking licenses for the first time in almost a decade. Explore courses from Top Institutes in Select a Course Category Product Management Degree Finance Data Analytics PGDM Project Management Cybersecurity Healthcare CXO Data Science Data Science Technology Others Operations Management Design Thinking Public Policy healthcare Artificial Intelligence Leadership MBA Digital Marketing others Management MCA Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details Bloomberg Efforts to shore up the economy are under way as the country is gradually recovering after a consumption slowdown last year. Firms like Nestle India Ltd. — due Thursday — should show an acceleration in revenue growth led by better product volumes. Tariff concerns will cloud Infosys Ltd.'s Wednesday update after rival Tata Consultancy Services Ltd. said many American clients were cautious about tech investments given ongoing economic uncertainty. Shares in Tata Consultancy Services, HCL Technologies Ltd. and Tech Mahindra Ltd. all dropped after reporting earnings. Live Events Highlights to look out for: Saturday: HDFC Bank (HDFCB IN) and ICICI Bank (ICICIBC IN) profit growth is seen limited by thinning margins, as loans typically re-price faster than deposits when interest rates change. HDFC Bank said earlier in July gross advances grew 0.4% on the quarter, trailing deposit growth of 1.8%, as it continues efforts to bring down its loan-deposit ratio. HDFC Bank will also consider issuing bonus shares for the first time. Meanwhile, ICICI Bank is expected to set aside higher provisions as unsecured lending rises, raising asset quality risks , according to Bloomberg Intelligence. Monday: Eternal's (ETERNAL IN) first-quarter profit is expected to halve on losses at its quick-commerce business Blinkit. The unit is investing in expanding its 'dark stores' network, where it services quick-commerce orders, and analysts will watch for updated guidance on when profits are expected. Strategic steer on its new 'Going Out' business will equally be in focus. Tuesday: No major earnings. Wednesday: Infosys (INFO IN) could lower or pull its revenue growth guidance as demand for new projects deteriorates amid worsening economic conditions, BI said. Watch for commentary on whether clients are canceling projects, especially in industries hit by US tariffs, Kotak Institutional Equities said. Thursday: Nidec's (6594 JP) sales would likely be affected by uncertainties in the auto market, as demand for electronic parts and motors slow in Japan, according to BI. Founder Shigenobu Nagamori said the firm's appetite for takeovers remains intact, following its earlier decision to withdraw a $1.8 billion hostile bid for Makino Milling Machine Co. - SK Hynix's (000660 KS) second-quarter operating profit likely rose 63%, consensus shows. Margins could reach 45% to 47%, BI said, supported by robust average selling prices for memory chips. Meanwhile DRAM shipments might have risen above its guidance. Seasonal demand could kick up DRAM and NAND shipments in the third quarter, BI added. - Nestle India's (NEST IN) first-quarter earnings may be supported by higher revenue contributions from both its domestic and export segments. The company is expected to be on an improving growth trajectory, Citi said. Watch out for strategic initiatives following a change in leadership. - Bajaj Finance 's (BAF IN) lending growth is expected to slow in keeping with sector peers. Asset quality trends may be softer in the non-banking finance sector as a weaker macro environment has slightly exacerbated usual seasonal weaknesses, according to Jefferies.
The Hindu
2 days ago
- Business
- The Hindu
Delhi to get ₹600 cr. central grant for development: CM Gupta
New Delhi The Delhi government will receive ₹600 crore in Central assistance by the end of July to accelerate key development projects, Chief Minister Rekha Gupta announced on Thursday after a meeting with Union Finance Minister Nirmala Sitharaman. The financial aid under the Centre's Special Assistance to States/UTs for Capital Investment (SASCI) will be deployed to expedite various infrastructure and civic projects across the Capital, including traffic management, drainage systems, green energy initiatives, and waste management reforms. A formal proposal for the allocation will soon be submitted to the Union Ministry of Finance, the Chief Minister's Office said in a statement. Launched in 2020-21, the SASCI scheme offers 50-year, interest-free loans to States and Union Territories to fund capital investment projects. Delhi's allocation under the scheme is expected to give major momentum to infrastructure projects already outlined in the government's recent budget. 'Cultural hub' Noting that the scheme will be implemented with full dedication, Ms. Gupta said the government aims to transform Delhi into a world-class city. 'Delhi is not just the national capital, but also the cultural, administrative, and economic hub of India. Its governance and development model should set an example for others,' she said. The Chief Minister emphasised that the meeting marked a milestone in Delhi's development trajectory and underscored the importance of cooperative federalism in delivering results to citizens. She said the people of the city are reaping the benefits of the growing collaboration between the Centre and the Delhi government.
