Yes Bank: 7 of the worlds 10 worst-performing bank stocks are in India

Banks are the oxygen of the economy, they provide credit to businesses and individuals. For the economy to grow, outstanding bank credit has to nearly double from the current Rs 95 lakh crore over the next five years. For India to become a $5 trillion economy, credit growth needs to be at 15 per cent a year for the next five years, it is currently about 8-10 per cent. A former public sector banker explains that credit outflow is integrated with how banks are run.

In November, the RBI imposed a moratorium, capping withdrawals by account holders and creditors at Rs 25,000. The RBI also announced a draft scheme to merge it with DBS Bank India Ltd, a wholly-owned subsidiary of DBS Bank Ltd, Singapore. Consider things like whether you want a traditional bank or an online bank, what kinds of fees you’re willing to pay, and what kind of customer service you’re looking for. Fourth, you should inquire about the bank’s customer service policies.

Jammu and Kashmir Bank had an expansion of bad loans up to Rs 884 crore by 31st March 2019, the Reserve Bank of India. However, according to sources, the bank recovered a sum of Rs 54 crore. The armed revolution hard-hit Jammu & Kashmir’s banking sector erupted in the late 1980s.

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As a result, several big banks have shut down or scaled back operations, including the State Bank of India and Punjab National Bank. Forbes magazine and Statista released the third edition of the ‘World’s Best Banks’ list. These banks were rated according to their performance on general satisfaction and key attributes like trust, fees, digital services and financial advice. Here we take a look at the top 10 best banks in India, as per Forbes.

The bank has a strong network of branches and ATMs across the country. It also offers mobile and online banking services to its customers. Kotak Mahindra Bank has a very good customer service record and is known for its prompt and efficient service.

Yes Bank is a good private bank in India because it offers a wide range of banking products and services to its customers. It also has a strong focus on customer service and offers a number of value-added services to its customers. Moreover, the bank has a strong network of branches and ATMs across the country. There are a few reasons why HDFC bank is considered better than ICICI bank. Firstly, HDFC has a more widespread network of branches and ATM’s than ICICI, making it more accessible for customers. Secondly, HDFC offers a wider range of products and services than ICICI, including investment banking and insurance products.

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In the long term, India needs to radically clean up its banking. At less than 60% India’s credit to GDP ratio remains low, yet its banks have some of the highest non-performing loans in the world. Bandhan Bank has a strong focus on rural and semi-urban areas. This focus means that the bank is able to offer financial services to a large number of people who would otherwise be excluded from the formal banking system. The customer service is generally good and the bank has a large network of branches and ATMs.

• You can read more about deposit insurance on DICGC’s website using this link or this link to FAQs on RBI’s website.
• One set includes banks assessing their current exposure and identifying fraud risks under trade-based lending activities, this relates to the risks that led to the Nirav Modi-PNB scam.
• Finally, you should check to see if the bank has any branches in your city or town.
• Banks are the oxygen of the economy, they provide credit to businesses and individuals.
• Essentially it is the interest charged by the RBI when banks borrow from them – much like commercial banks charge you interest for a car loan or home loan.

It shows the difference between the face value and subscription price of shares by displaying the Share Premium Account. Punjab and Sind Bank announced its status in August 2021. Against the bank, they reported a loss of Rs 3,557 crore. YES Bank was at the bottom of the list, with the total returns plummeting nearly 50%.

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Some public sector banks offer credit to their customers to meet. These banks include the State Bank of India, Bank of Baroda, and Indian Bank. Since the direct entry of corporates into the banking sector is likely to meet political opposition, an easier intermediate step the government might consider is to allow large NBFCs to enter the sector first. Some experts say that allowing large NBFCs into the banking space will by itself afford the RBI better regulatory oversight of that segment. However, this model did not elicit much interest, a likely damper being the 15 per cent cap on promoters’ holdings. Allowing private promoters to hold 26 per cent in banks could act as a trigger for at least a few NBFCs to get into the banking space.

In addition to its worst bank in india, the bank depends on government support for capital, sources said. LIC plans to acquire a 15% stake in IDBI Bank and a 50% stake in the as part of its acquisition plan. Government officials stated that they would raise the bank’s funds for expansion. As a result, the bank will have to manage with a part-time head until it can resolve its NPAs and losses of Rs 2,400 crore. In reality, when the Government finalized the long-awaited nominations for other state-run banks, some of which had been without a full-time leader for eight months, it had not selected a new IDBI Bank chief. “Narendra was like a kid in a candy store,” a senior banker who worked with him stated, referring to his penchant for doing things without thinking about the consequences— the bank’s profitability.

Please note that I am not saying that rest of the other banks are bad or not worth banking with. It’s just that few of the above ones are very large and important banks and the government will go to any lengths to ensure that they don’t go bad. Sometime back, I had written a post on which are safe banks for fixed deposits in India. In the post, I wrote that most Indian banks are safe most of the time as RBI does its job fairly well and hence, problems if any are more or less very rare.

Topping the list for the third time in the last four years is CVB Financial, the parent company of $16.4 billion-in-assets Citizens Business Bank. Based in the Los Angeles suburb of Ontario, it has 35,000 customers and specializes in serving small and medium-sized businesses. Seven of the 10 worst-performing bank stocks globally are from Asia’s third-biggest economy, data compiled by Bloomberg show. There are likely to be more dark days ahead as the lenders, already battling with the world’s highest soured debt, face fresh challenges to their asset quality from the slowdown in economic growth and the lingering crisis at the shadow banks.

First, the bank has a long history dating back to 1931, making it one of the oldest banks in the country. It has been accused of aggressive lending practices, which has led to a high number of non-performing assets. The bank has been gradually increasing its fees and charges, which is not liked by many customers. The bank’s financial performance has been impacted in recent years due to the high NPAs.

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It added that the bank in 9 accounts has a further provision of Rs 702,32 crore to resolve stressed help. UCO Bank ended the day at Rs 11.49 each, up by 3.98 per cent. The bank also stopped 221 ATMs, eight branches, and 35 domestic and international locations as part of its cost-saving measures.

As per RBI data, there were 1,551 urban cooperative banks in India in 2018, down from 1,926 in 2004, highlighting the high risk of failure of these banks. Often started with small capital bases, as little as Rs 25 lakh, these banks frequently become victims of political interests and fraud. Being unlisted, most do not attract public scrutiny unless something goes amiss. Humongous NPA pile (at Rs 9.4 lakh crore as of June 2019, nearly four times India’s health budget).

You can also spread money across family members to use the Rs 5 lakh insurance angle for each one instead of just one person. And in general, given the RBI monitoring, most banks are safe in India. At least we can say that bank depositor are protected in India. And ‘safe’ or ‘safer’ here is a pretty subjective thing here. At the top of the heap, of course, is Yes Bank Ltd., which has seen its shares crash 70% this year on concerns about the lender’s thinning capital buffers and its sizable exposure to the cash-strapped shadow lenders. 13.5% to 11.2% as bad debts mounted, triggered by the turmoil in India’s—and the global—economy.

The net profit for the lender was Rs 80 crore a year ago. The Union Bank of India has launched an emergency funding window for corporate and MSME customers who have been affected by Coronavirus (Covid-19) outbreaks. In a statement, the bank, as of 1st February 2020, will receive a maximum 10 per cent reduction in working capital. In the post-liberalization era, Yes Bank was one of the private banks of the new generation that started operations.

Another entity — India Debt Resolution Company Ltd , which has also been set up — will then try to sell the stressed assets in the market. To make it work, the government has okayed the use of Rs 30,600 crore to be used as a guarantee. This time, the government has formed two companies – one which will acquire the bad loans and will be state owned; and the other, partly privately owned, will try to sell the assets. Now the government plans to float a long talked-about “bad bank” which will try to tame $27bn of bad loans and clean up the balance sheets of commercial banks. A clutch of banks is saddled with tens of billions of dollars of bad loans after years of injudicious lending to dud projects.

HDFC bank is one of the best private banks in India because it offers a wide range of products and services to its customers. The bank has a large network of branches and ATMs across the country and offers 24/7 customer service. HDFC bank also offers a mobile app and online banking services. The bank has a strong focus on customer service and offers attractive interest rates on deposits. ICICI bank is one of the best private banks in India because it has a strong focus on customer service, innovative products, and technology.

At a press conference, PNB’s managing director and chief executive officer, Sunil Mehta, said the bank had started asset management vertical to recover bad loans. Private Bank Yes Bank Ltd is facing a deteriorating economy as one of India’s major private banks. As a result, RBI had to take immediate measures to protect depositors’ money by implementing a reconstruction scheme. According to Jahangir Aziz, JP Morgan’s head of emerging markets research, the economy of India faces a risk of bank stress leaving millions of households and small businesses without access to credit. In addition, according to him, the Government, the central bank, and many analysts are underestimating the long-term effects that the contraction last year during the pandemic could have had on the Indian economy. The Government and the RBI adopted many measures last year to help alleviate the stress on businesses and consumers caused by the pandemic.

India’s benchmark indices dropped 1% on Friday, wiping out the previous day’s gains, as lenders — led by HDFC group stocks — led the selloff. Continued worries about the health of the US regional banks, which dragged Wall Street down on Thursday night, also contributed to declines. Equities are eroding wealth at a fast rate owing to persistent selling in the wake of the coronavirus pandemic, and Bank Nifty is disproportionately impacted. You can do this by withdrawing cash from an ATM or by transferring money from your checking or savings account to your new bank account.

It provided loans to those unable to raise funds elsewhere, which posed a high risk for the bank. As a result, yes banks had grown until 2017 when NPAs existed. It turned out that India dominated the Asia Pacific region’s worst banks, according to data sourced from the S&P Global Market Intelligence. 10 out of the 15 worst-performing banks between July and September were Indian banks, according to S&P Global Market Intelligence.

ICICI bank has a strong presence in India with a wide network of branches and ATMs. Additionally, private banks are usually not subject to the same level of regulation as public banks. Experts have made it clear that India cannot afford another major banking crisis as it would dash all hopes of a prudent recovery after the Covid-19 shock. In such a scenario, the RBI needs to stay vigilant and identify such bad banks much before the situation gets out of control. The IL&FS crisis did not even spare the stock and debt market, pulling down both benchmark indexes Sensex and Nifty. Borrowing became tougher for NBFCs which meant it became tougher for MSMEs to secure loans.

HDFC Bank has high fees and charges for some products and services. Based on these features I have created a list of the largest banks in the country that offer all or most of the conveniences and facilities mentioned above. The number of banks and branches is expected to increase significantly, as more foreign banks enter the market and existing banks expand their operations.

In its latest quarterly results, the bank reported a net NPA ratio of 1.16%. However, the bank has reasonably provided for the Covid-19 related impact in 2021 and the June 2021 quarter for restructuring and the subsequent rise in delinquencies. The bank is headquartered in Kerala and handles more than 15% of India’s total inward remittances. The bank’s net NPA ratio, like in the case of HDFC Bank, has consistently stayed below 0.5% over the past five years.