Banking news update

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PSBs need higher capitalisation to deal with NPAs: RBI: Deputy Governor Mr. R Gandhi said PSBs needed higher capitalisation than budgeted to strengthen their balance sheets and deal with NPAs. Follow-on public offers (FPOs) and capital infusion by the government were two ways to raise capital, he said. (BS)

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Pressure remains for banks: Banks’ earnings growth for the first quarter  of 2015-16 (April-June) are expected to remain tepid, brokerage houses and analysts have predicted. Treasury income that had been a cushion for banks’ earnings in the last three to four quarters would not be able to shield the earnings growth in the first quarter due to the rising bond yields. (BS)

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Stressed asset ratio peaked in FY15: Fitch: The worst might be over for banks in terms of stressed assets. However, the pressure on asset quality might not subside any time soon, a report by rating agency Fitch said. Gross NPAs for banks have registered an uptick but the accretion rate is easing, the report added. (BS)

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Credit quality shows continued improvement in Q1: CARE Ratings: Consolidating the gains over the previous quarters, Indian companies' credit quality improved across sectors in the first quarter of FY16, according to CARE Ratings. The rating upgrades have outnumbered downgrades in FY14 and FY15, reflecting the improved credit quality prevailing in the system. (BS)

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Banks to auction KFA ground support equipment: SBI, which leads a consortium of lenders to Kingfisher Airlines, is planning to auction the carrier’s ground support equipment on the premises of Mumbai International Airport (MIAPL). (FE)

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Spain wants Greece stay in Euro Zone: Spain said it is open to negotiating a new bailout for Greece, which should remain in the eurozone, after Greek voters rejected creditors' austerity demands in a weekend referendum. (BL)

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India insulated from Greek crisis, rupee may be affected: Taking a jibe at some economic commentators, finance minister said that though they had forecast that Greek referendum against the bailout offer could create turmoil in the markets, it had not happened. (IE)

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SBI to monitor branches in real time: To strengthen physical security and surveillance and increase the efficiency of incident response, SBI has decided to hook about 6,000 of its ‘critical and high-value’ branches across the country to a central monitoring system (CMS). (BL)

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Union Bank to open 100 digital branches this year: PSBs are typically viewed to be slow adopters of technology. But with lenders like Union Bank of India focusing heavily on digital, this myth is being dispelled. Mr. Arun Tiwari, CMD looking at launching 100 digital branches this year that will be unmanned. (BS)

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Life insurers to see 12-15% growth on annual premium equivalent basis in FY16: ICRA: Life insurance industry in India is expected to grow at a rate of 12-15% Annual Premium Equivalent (APE) basis in FY16, said ICRA. (BS)

Quote of the day : Weakness of attitude becomes weakness of character.

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