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Tag: indusind bank

  • IndusInd Bank launched all-in-one payment wearables

    IndusInd Bank launched all-in-one payment wearables

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    IndusInd Bank introduced ‘Indus PayWear,’ a new wearable payment solution, available on Mastercard. These wearables enable users to tokenise their IndusInd Bank cards for tap-and-pay transactions at contactless Point-of-Sale (PoS) terminals worldwide. 

    Also read: Why IndusInd Bank is a good buy

    The company reported, with a mobile app, users can easily set up their cards on the wearable and switch between them. Advanced tokenisation technology ensures transaction security by replacing actual card details with unique ‘tokens.’ Transactions below ₹5,000 can be made with a tap, while those exceeding ₹5,000 require the PIN entry as per RBI guidelines.

    Sumant Kathpalia, MD & CEO of IndusInd Bank, stated, “We aim to shape a seamless and secure payment future with innovations like Indus PayWear.” Gautam Aggarwal, Division President, South Asia, Mastercard, commented, “Indus Paywear delivers flexibility, convenience and security, reflecting Mastercard’s commitment to empowering consumers in the digital age.”

    The shares were down by 1.18 per cent to ₹1,545.70 on BSE.

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  • IndusInd Bank launches ‘eSvarna’, first RuPay corporate credit card

    IndusInd Bank launches ‘eSvarna’, first RuPay corporate credit card

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    IndusInd Bank has launched ‘eSvarna’, the country’s first corporate credit card on the RuPay network, enabling the private sector lender to become the first to integrate UPI functionality with a corporate credit card.

    The card facilitates smooth transactions at merchant outlets and allows users the flexibility to make UPI payments by linking the card with UPI-enabled apps. It also comes with an array of exclusive perks and rewards, the release said.

    Benefits

    “The launch of ‘eSvarna,’ the country’s inaugural corporate card on RuPay, represents a significant step for corporate clients to access unique corporate offerings, benefits, and seamless UPI-enabled payments. This will elevate the overall experience for large corporates and their employees, delivering an unparalleled user experience marked by simplicity and efficiency,” said Praveena Rai, Chief Operating Officer, NPCI.

    Cardholders can avail complimentary lounge access and fuel surcharge waiver. Corporate travellers can receive the added benefit of comprehensive travel insurance coverage and an exclusive rewards program meticulously crafted for corporate entities and business transactions.

     “We always believe in being one-step ahead for offering service that exceeds the customers’ expectations. The product comes from our deep understanding of the segment and we want to introduce a compelling proposition for Indian professionals and businessmen who travel extensively and has a need for lifestyle-related value added benefits,”said Soumitra Sen, Head – Consumer Banking and Marketing, IndusInd Bank.

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  • Banks, NBFCs’ provisional Q1 figures show robust credit, deposit growth

    Banks, NBFCs’ provisional Q1 figures show robust credit, deposit growth

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    Provisional figures for Q1FY24 released by banks and NBFCs show that both credit and deposit growth remained robust during the quarter led by sustained demand for retail credit and pick-up in corporate loans.

    Of the numbers declared so far, most lenders posted growth in advances or AUM (assets under management) of over 14 per cent with sector leaders HDFC Bank and Bajaj Finance seeing growth of 16 per cent and 32 per cent y-o-y, respectively. Other major lenders such as M&M Financial Services, IndusInd Bank, IDFC First Bank, RBL Bank, and Federal Bank saw loan growth of 20-28 per cent, similar to last quarter.

    While Q1 is typically a slower quarter for lenders, most of these players also reported 4-6 per cent growth in advances sequentially.

    Sustained credit growth, especially by retail-oriented lenders, reflects that domestic consumption and the demand for credit remains strong, despite rising interest rates and elevated inflation.

    YES Bank and Bandhan Bank continued to underperform the sector, posting credit growth of below 15 per cent, in the range of 6-8 per cent y-o-y. Both the lenders have been running down their microfinance and corporate exposures, respectively, leading to overall muted growth. Bandhan Bank’s advances fell 5.5 per cent on quarter.

    Deposit accretion too maintained its momentum and most major lenders reported deposit growth of over 13 per cent y-o-y, barring RBL Bank, South Indian Bank, and Dhanlaxmi Bank. Sequential trends too showed steady deposit growth, albeit RBL Bank, YES Bank, Bandhan Bank, and Dhanlaxmi Bank likely slowed down deposit mobilisation due to muted loan growth. CSB Bank’s deposits were 0.1 per cent lower sequentially.

    HDFC Bank saw muted q-o-q growth in both advances and deposits, as the bank is expected to have minimised balance sheet growth ahead of the merger of HDFC with itself effective July 1. The lender’s advances were up 0.9 per cent and deposits 1.6 per cent.

    Banks such as HDFC Bank, IDFC First Bank, Federal Bank, YES Bank, and Bandhan Bank saw their deposits growing faster than advances on a y-o-y basis. Bajaj Finance’s fixed deposits also surged by 46 per cent, albeit on a much smaller base.

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  • IndusInd Bank to apply for insurance licence 

    IndusInd Bank to apply for insurance licence 

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    IndusInd Bank is set to approach the IRDAI to seek licence to operate in the insurance industry.

    In a press conference held to discuss March FY23 quarter results, Sumant Kathpalia, MD & CEO, IndusInd Bank, said the bank will apply for the licence. “I think it’s a process which may take one–two years,” he said. When asked what sort of synergies he envisages with insurance operation, Kathpalia sounded optimistic about the non-life business.

    “We have CV business where we are among the top three players in any category which you talk. (So) it makes immense sense for us to get into non-life business. We love these businesses because they complement our core businesses in the banking sector,” he explained.

    With some of the bank’s peers holding stake in insurance companies, Kathpalia dismissed the proposition of being an investor. “I don’t want to be an investor in a company, I want to be the manufacturer,” he asserted. While he did not delve more information on the insurance sector aspirations it appears that the bank may start the regulatory processes in a quarter or so and may pursue inorganic opportunities once the licence comes through.

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  • AT-1 Bonds: Market has become polarised towards larger/ quality banks, says Jefferies

    AT-1 Bonds: Market has become polarised towards larger/ quality banks, says Jefferies

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    The Additional Tier (AT)-1 bond market has polarised towards large/quality banks post the writedown of these bonds aggregating ₹8,415 crore by Yes Bank in the fourth quarter of FY20, according to Jefferies.

    This observation comes in the backdrop of UBS’ acquisition of the troubled Credit Suisse entailing a write-down of the latter’s AT-1 bonds aggregating $17.2 billion.

    Explained: How will the Credit Suisse crisis impact India?
         Explained: How will the Credit Suisse crisis impact India?
     

    “India had a Credit Suisse-like AT-1 bond issue right around Covid when Yes Bank wrote-down AT-1 bonds and still there was some franchise value assigned to equity through capital infusion by leading banks/ NBFC.

    “Since then, the issuances have been lower and market has become polarised towards larger/ quality banks,” Brokerage firm Jefferies said in a report.

    Top contributors

    Among banks, the top three issuers are the State Bank of India (SBI), HDFC Bank, and Canara Bank with public sector banks (PSBs) having higher contribution from this.

    PSBs have a higher share of AT-1 bonds in capital structure compared to private sector peers, Jefferies said.

    Among PSBs, SBI had AT-1 capital of ₹41,500 crore, followed by Canara Bank (₹12,400 crore), Punjab National Bank (₹8,700 crore), Bank of India (₹2,900 crore), and Indian Bank (₹2,000 crore), the firm said.

    Among private sector banks, HDFC Bank had AT-1 capital of ₹12,300 crore, followed by ICICI Bank (₹5,100 crore), Axis Bank (₹4,800 crore), IndusInd Bank (₹1,500 crore), and Kotak Bank (₹500 crore)

    “Interestingly, smaller banks have a lower contribution from AT-1 bonds. Local bond market investors aren’t really seeing risks here for Indian stocks,” Jefferies said.

    ‘Better-placed’

    The report observed that Indian financials (banks and NBFCs) have also borne the rub-off effect of global dislocations. But, they are better placed with a higher share of retail deposits, limited ALM (asset-liability mismatch) gap & MTM (mark-to-market), limited dependence on AT-1 bonds, and lower exposure to riskier segments like promoter/acquisition finance.

    While equities and global bonds saw pressure off late, the local bond market is stable. Post correction, valuations of some are near/below Covid lows, the firm said.

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