Latest news with #SubrataPanda
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Business Standard
01-07-2025
- Business
- Business Standard
Indian scheduled commercial banks' gross NPA ratio at 15-year low
Private sector banks' gross NPA ratio was stable at 2.8 per cent while foreign banks saw a decline to 0.9 per cent from 1.2 per cent Subrata Panda Listen to This Article The Indian scheduled commercial banks' (SCBs') asset quality continues to improve, with gross and net non-performing asset (NPA) ratios at a multi-year low, according to the Reserve Bank of India's (RBI's) latest Financial Stability report. While overall gross NPAs were lower at 2.3 per cent (of gross advances) as of March 31, 2025, compared to 2.8 per cent a year ago, public-sector banks saw a sharp reduction from 3.7 per cent in March 2024 to 2.8 per cent in March 2025. Private-sector banks' gross NPA ratio was stable at 2.8 per cent, while foreign banks declined to 0.9 per cent
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Business Standard
26-06-2025
- Business
- Business Standard
ICICI Bank raises ₹1,000 cr via Tier-II bonds at 7.45% amid demand
The lender's first Tier-II bond issue in FY26 drew strong investor interest, allowing tight pricing despite rate volatility; bonds have 15-year maturity with 10-year call Subrata Panda ICICI Bank, India's second-largest private sector lender, on Thursday tapped the domestic debt capital market to raise ₹1,000 crore through Tier-II bonds at a coupon of 7.45 per cent, said sources aware of the development. The base issue was ₹500 crore and had a green shoe option of ₹500 crore. The Tier-II bonds have a maturity of 15 years, with a call option available after 10 years, sources said. 'Amidst a volatile and uncertain rate environment, initial market indications were in the range of 7.50 per cent. However, strong investor interest—driven by the fact that this is ICICI Bank's first Tier-II issuance of the fiscal year (FY26) and the relatively moderate issue size—enabled the bank to achieve tighter pricing. For a long-dated Tier-II instrument with a 10-year call, the cut-off yield of 7.45 per cent is considered competitive and reflects robust investor appetite despite prevailing rate uncertainty,' said a market participant. Tier-II bonds are subordinated debt instruments issued by banks to strengthen their Tier-II capital—a key component of regulatory capital under Basel III norms. These bonds carry higher risk than senior debt but rank above equity in the capital structure. As of March 2025, ICICI Bank's capital adequacy ratio stood at 16.55 per cent, with CET-I ratio at 15.94 per cent and Tier-II at 0.61 per cent.
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Business Standard
22-06-2025
- Business
- Business Standard
Looking at double-digit growth for SME banking in India, says Xie Wen
India is one of the largest small and medium enterprise (SME) hubs for London-headquartered Standard Chartered (StanC) Bank. Xie Wen, global head of SME banking at StanC, speaks to Subrata Panda and Manojit Saha in Mumbai about the bank's SME portfolio in the country, growth prospects, the impact of tariff-related uncertainties, and how the bank has supported its SME clients in navigating this challenging period. Edited excerpts: How much of the SME banking revenues come from India? In terms of revenue, it is 18–20 per cent. But in terms of assets, it is close to 40 per cent. It is the biggest in terms of SME assets. India is a big market for StanC, and it is also its fastest growing market for the SME segment, as India is the fastest growing economy in the world. In India, which are the business segments in SME banking where you are seeing maximum growth? Trader working capital. We are growing in double digits. SMEs are usually part of the supply chain of multinational and larger corporations. The working capital loan helps them manage their operating cycle and cash flow much better. So we do see that, with business activity and the economy growing, the need for working capital loans is also growing. Which are the sectors among SMEs that you are more bullish on? We are actually quite diversified across different segments — trading, manufacturing, services, and information technology. But I see that in India, manufacturing is certainly growing, and services continue to be a very important and big driver of the economy. How is StanC affected by the increasing stress in unsecured lending to businesses and SMEs? Our portfolio is holding up very well. We continue to invest in data and digital capabilities. India has very good credit bureau infrastructure — both the commercial bureau and the personal bureau. When we do underwriting, we look into bureau data. We also plug into the goods and services tax, where you get a sense of how businesses run. We also have strong monitoring capabilities for understanding how businesses are doing. So our business is performing well. SMEs are more vulnerable to business cycles. Are you concerned about asset quality, given the current circumstances? In general, SMEs are more vulnerable everywhere to market uncertainties, volatility, and stress. The bank needs to be dynamic in understanding the market. We also have to be more dynamic in investing in digital capabilities because if you don't enhance your tools and investment to get the latest data, you will be left behind. SMEs are the core of the economy, so any volatility in the market will affect them. But it's important for banks to continue to invest in capabilities to support them, to understand the risk, and to manage the data and information asymmetries. What is the growth you see in this segment going forward? I will be looking at double-digit growth for India. Globally and in India, how have your SME clients been impacted due to tariff related uncertainties? I think globally it's not just SMEs that are concerned — big multinationals are also worried. The concerns are around supply chain reliability and rising trade costs. At the same time, we see our region doing relatively better because there is huge trade within the region. So I see a lot of businesses looking to diversify. We are seeing an increase in trading within Asia, and between India and West Asia and the Association of Southeast Asian Nations. We are also seeing businesses looking to diversify their supply chains. So, to some extent, India will benefit from the China+1 phenomenon. India also has the benefit of a huge, growing middle class. So we are very positive about urbanisation. The growth of the middle class will help propel consumption, and that will be another engine for growth. Uncertainty is there, and challenges are there. These have certainly increased this year globally, but I think those who do will be relatively better off — and that is where more opportunity will come from. Unlike in other regions, in India you cannot offer interest on current account offerings. How do you navigate this challenge in SME banking? It's actually a level playing field. Everyone is subject to the same regulations. In this environment, you have to grow the business by doing a few things. You need to provide good service. It is online banking — we call it S2B, Street to Bank. So that is the platform we provide to SMEs, where they can manage their liquidity. For SMEs, we provide direct data linkages to the enterprise resource planning system, which helps them with efficiency. We provide them with good advice. Service, capabilities and tools, and advice are three key things. Have you seen a slowdown in activities in SMEs? I saw a bit of a slowdown at the beginning of the year because of uncertainty related to tariffs. The cost of funds was a challenge. But I see that improving now. There is good movement on interest rate cuts by the Indian regulator. At the same time, we see that, given the developments in the tariff space, activity is picking up. The second quarter has certainly picked up. What are the strategies the bank has adopted to allay the fear of its SME clients? Stay close to the clients; have dialogues, work together with them. So far, our clients have weathered this uncertainty pretty well. It will be difficult for us to give a breakdown. But in India certainly it's quite significant.
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Business Standard
09-06-2025
- Business
- Business Standard
Three months after Panda's exit, Irdai chairperson post remains vacant
Absence of a regulator stalls key insurance reforms including Bima Trinity, composite licence, and risk-based capital framework Subrata Panda Aathira Varier Mumbai Listen to This Article Nearly three months have passed since Debasish Panda completed his term as Chairperson of the Insurance Regulatory and Development Authority of India (Irdai), yet the position remains vacant. The Ministry of Finance had invited applications for the post, with the last date for submission being April 6. However, the government is yet to make an appointment. Panda, who took charge as Irdai Chairperson in March 2022, had himself been appointed nearly 10 months after the departure of his predecessor, Subhash Chandra Khuntia. With Panda completing his term on March 13 this year, several initiatives he had spearheaded now
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Business Standard
04-06-2025
- Business
- Business Standard
Indian cos raise over ₹12k cr through bonds ahead of RBI policy outcome
Indian firms including Vedanta, Jubilant and HUDCO raised over Rs 12,000 crore from bonds ahead of the RBI's expected 25 bps repo rate cut, with strong demand from mutual funds Subrata Panda New Delhi Listen to This Article Several major Indian companies, including metals-to-mines conglomerate Vedanta, Jubilant Beverages, Housing and Urban Development Corporation (HUDCO), and Bajaj Housing Finance, together raised more than Rs 12,000 crore from the domestic debt capital market on Wednesday. This comes ahead of the Reserve Bank of India's rate-setting panel's policy decision, which is expected to cut the repo rate by another 25 basis points (bps). Vedanta Ltd has raised Rs 5,000 crore in three tranches. It raised Rs 2,400 crore through bonds maturing in two years and five months at a coupon rate of 9.31 per cent. Additionally, it raised Rs 1,750 crore
