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CONTINGENT PROVISION BUFFERS
ET Prime Special Series: Multibagger or IBC - Part 60: This auto ancillary built its empire on one family. Can it survive the EV test?It began life making bicycle parts in Gujarat, the changed its name and business. That created scale, stability, and growth. A single custo...
RBI declares record Rs 2.87 lakh crore dividend to cushion war shockThe Reserve Bank of India announced a record surplus transfer to the government for FY26, though it falls short of budget estimates. This s...
RBI greenlights record surplus transfer of Rs 2.86 lakh croreThe Reserve Bank of India's central board approved a record Rs 2.86 lakh crore surplus transfer to the government for FY26. This significan...
RBI likely to pay record dividend to govt this yearThe Reserve Bank of India is set to transfer its highest-ever dividend to the central government. This substantial payout will offer the Ce...
Indian Bank Q4 profit rises 5% to Rs 2,956 croreIndian Bank announced a 5% increase in net profit for the fourth quarter. The bank saw its operating profit rise and its gross and net non-...
ECL norms: PSU banks face higher hit, private banks with contingent buffers better placed: Punit BahlaniThe Reserve Bank of India's new Expected Credit Loss framework presents a recurring drag on bank profitability, not a one-time capital hit....
ICICI Bank shares rise 2% after Q4 results. What Jefferies, Bernstein and other brokerages are sayingBrokerages remain bullish on ICICI Bank after a strong quarter, citing stable margins, healthy loan growth and improving asset quality. Mot...
Planned provisioning norms unlikely to hit private banks hardECL is a forward-looking accounting standard that requires banks to make provisions on expected losses based on past asset quality, instead...
IndusInd Bank utilizes Rs 1,325 crore contingency buffer amid accounting lapses and bad loan underreportingIndusInd Bank addressed financial discrepancies in the March quarter. The bank used its contingency buffer to manage the impact. Accounting...
RBI FY25 payout to govt may jump 50 per centThe relevant committee had recommended risk provisioning under the Contingent Risk Buffer (CRB) be maintained within a range of 6.5-5.5% of...
IndusInd may slip into red in Q4 on derivative lossesOn Sunday evening, IndusInd confirmed it would fully absorb the derivatives-related loss this quarter, following the conclusion of a board-...
RBI reviewing framework that can help determine appropriate level of risk provisions, surplus distributionThe central bank is currently reviewing its economic capital framework, last updated in 2019, which determines risk provisions and surplus ...
RBI carrying out internal review of Jalan panel recommendations: Sanjay MalhotraThe Reserve Bank of India is conducting an internal review of its economic capital framework as part of a periodic assessment mandated ever...
IndusInd Bank Q3 result preview: Profit, NII to grow in double digits; asset quality stableIndusInd Bank Q3 result preview: IndusInd Bank is expected to report healthy growth in net interest income for Q3, driven by solid loan gro...
Small banks may need to boost provisioning: AnalystsEven as most banks have strengthened capital buffers post Covid-19, expected credit loss (ECL)-based norms could release existing provision...
RBI's new proposal on loan loss provisions to raise bank capital needsOn Monday evening, the Reserve Bank of India released the paper proposing a shift away from the current method - where loan loss provisions...
HDFC Bank Q1 results preview: Profit may grow between 16-20% YoY; commentary on moratorium eyedIn general, there are hopes that the true picture of banks’ asset quality in Q1FY21 will be masked by the loan moratorium as this will rein...
Buy HDFC Bank, target price Rs 1,379: ICICI SecuritiesOn the cost front, the bank has been agile about consistently bringing down cost to assets by more than 40 bps and it still has a further b...
Buy Spandana Sphoorty Financial, target price Rs 620: ICICI SecuritiesAccording to the brokerage, strong pre-provision operating profit (PPoP) margin at 16% and higher contingency buffer would ensure Spandana ...
- RBI tightens prudential norms for NBFCs; interest rate to go up
Standard assets comprise those loans on which interest has been regularly by the borrowers and the possibility of default is remote.