Saloni Shukla

Kotak Mahindra Bank dived 4.7% and RBL Bank plunged 13.8%. HDFC Bank shares advanced 2.6%, emerging as sole gainer in Bank Nifty index, which shed 0.3%. Benchmark Nifty ended 0.3% lower at 24,781 in choppy trades.

"We have said we would like to continue to invest in the franchise, given the opportunity," Puneet Sharma, chief financial officer of Axis Bank, told analysts in post-earnings call. "Where we are required to tighten our belts, we do have the ability to tighten our belts. On expenses last year, we were growing at the 27% to 29% year-on-year growth range. You will see moderation in growth of costs through FY25."

On a sequential basis, for the overall portfolio, the cost of borrowing declined by 8 basis points in the September quarter, supported by a credit rating upgrade that enabled PNB Housing Finance to raise debt in the debt capital markets at a lower cost.

Indian lenders such as Kotak Mahindra Bank, IndusInd Bank, IDFC First Bank, and RBL Bank foresee ongoing asset quality issues in the microfinance sector for several more quarters. Overleveraging and rural economic slowdown are cited as major reasons, leading to increased provisions and cautious disbursement strategies.

Banks have slowed down credit card issuances due to increasing defaults among customers. The Reserve Bank of India reported a significant decline in new card additions from August to September. Experts warn that this cautious approach may continue as lenders are wary of rising delinquencies and new regulatory measures affecting unsecured loans.

Indian banks are seeing a slowdown in loan growth as they prioritize attracting deposits to improve their liquidity. The loan-to-deposit ratio has dropped to its lowest point in 30 months, but regulators remain cautious. Banks are expected to focus on attracting more deposits, even if it means higher interest rates and potential pressure on profits.

Synopsis Indian banks are seeing a slowdown in loan growth as they prioritize attracting deposits to improve their liquidity. The loan-to-deposit ratio has dropped to its lowest point in 30 months, but regulators remain cautious. Banks are expected to focus on attracting more deposits, even if it means higher interest rates and potential pressure on profits.

Indian banks are shutting down more ATMs despite record-high cash circulation. This trend is attributed to the rise of digital transactions and UPI payments. While cash remains significant, ATM numbers have declined, particularly off-site machines. Industry experts point to bank consolidation and the push for digitalization as key drivers.

Cashfree Payments has partnered with Indian companies like Swiggy and Nykaa to enable international customers to make payments in India. This pilot program caters to users of RuPay cards and UPI, which are not typically recognized for global transactions. Cashfree's cross-border payments license allows them to facilitate seamless transactions for both import and export businesses, as well as individual users.

Synopsis Several lenders said that they now prefer offering loans to customers with credit scores of more than 750 from a cap of 720 seen prior to the onset of stress. Banks are also keeping a very close watch on days past due (DPD), where collection machinery gets triggered at day zero DPD.