ICRA’s Post

Mark your Calendar! ICRA's exclusive webinar discussing the Indian Banking Sector and the risks to asset quality as credit growth slows down. Join industry experts on 8th Oct, 4:00 PM onwards, to explore key insights on how this slowdown may impact profitability and asset quality. Register here: https://bit.ly/3N5oZA7 Key Discussion Points: - Banks’ resource profile – trends and outlook - Why is credit growth likely to slow down meaningfully - Implications for asset quality and profitability Speakers: - Mr. Karthik Srinivasan - Senior Vice President & Group Head - Financial Sector Ratings - Mr. Anil Gupta - Senior Vice President & Co Group Head - Financial Sector Ratings - Mr. Sachin Sachdeva, CFA, FRM - Vice President & Sector Head - Financial Sector Ratings #ICRA #ICRAWebinar #IndianBankingSector #BankingIndustry #AssetQuality #CreditGrowth #FinancialSector

Save the date! October 1st, 4:00 PM. Join us for an in-depth discussion on ICRA’s Ratings Performance in H1 FY2025! Gain valuable insights into key rating trends, sector-specific movements and the current credit cycle. Register now: https://bit.ly/3XMIu6F Discussion Agenda: - What are the trends in rating actions conveying? - Which sectors are seeing heightened rating activity? - How long is the runway to the prevailing benign credit cycle? - How is the macro and the sectoral risk landscape looking? Our panel of speakers: - K.Ravi chandran, Executive Vice President & Chief Ratings Officer, ICRA Limited - Jitin Makkar, Senior Vice President & Head of Credit Policy, ICRA Limited - Pratik Singhania, Vice President, ICRA Limited #ICRA #FinancialTrends #CreditRatings #Webinar #Finance #SectorAnalysis

The Reserve Bank of India (RBI) recently conducted separate conferences for Heads of Assurance functions of Non-Banking Financial Companies (NBFCs) and Urban Cooperative Banks (UCBs). The discussions highlighted a significant shift in the regulator's approach from transaction-based supervision to a more comprehensive risk-based and governance-focused framework. Key takeaways from these conferences are summarized in this document, which is essential for auditors to align their audit procedures with the new regulatory expectations.

🚀 Thrilled to present Value at Risk (VaR) analysis of ICICI Bank Ltd—delving into the metrics that drive informed financial decisions.🚀 ➡️ What is Value at Risk (VAR)? It is a financial metric used to estimate the risk of an investment & to measure the amount of potential loss that could happen in investment portfolio. ➡️ Types of methods used to assess VAR? 1. Historical Approach 2. Monte Carlo Simulation To explore this topic further, check out The Valuation School. A special thanks to Parth Verma Sir for delivering such premium finance content! Lets connect with Tabish Khan for growing together. #linkedinfamily #CFA #CA #Financialmodelling #Equityresearch #Finance

ICRA's H1 FY2025 Credit Quality Trends reflect stability in the ratings assigned, indicating resilience across sectors despite market fluctuations. Stay updated on the performance of ICRA-assigned ratings as we continue to monitor key developments in the credit landscape.  #ICRA #CreditQuality #FinancialTrends #CreditRatings #MarketInsights #ICRATrends #H1FY2025 

K.Ravi chandran, Executive Vice President & Chief Rating Officer at ICRA, shares views on the Performance of ICRA-Assigned Ratings in H1 FY2025. As the overall credit conditions in the corporate and the financial sector have remained conducive in the past three years, which has contributed to a much higher proportion of rating upgrades than downgrade. CNBC-TV18 #ICRA #ICRAInsights #EconomicOutlook #Corporate #Debt #CNBCTV18 #ratings #upgrade #downgrade

🏦✨ Episode 5 of Legacy Lessons: PMC Bank's Journey 📉 Explore the rise, scandal, and collapse of PMC Bank, once a trusted institution in India's banking sector. From its humble beginnings in 1984 to the shocking revelations of financial irregularities in 2019, uncover the crucial lessons learned about transparency and regulatory compliance in the banking industry. #PMCBank #LegacyLessons #BankingScandal #FinancialIrregularities #RegulatoryCompliance #Transparency #BankingCrisis #IndianBanks #BankingSector #CommunityBanking #CooperativeBanks #FinancialTransparency #BankingRegulations #RiskManagement #FinancialIntegrity #CrisisManagement #CustomerTrust #FinancialStability #BankingLessons #BusinessEthics #FinancialAccountability #BankingReforms #BankingRegulatoryAuthority #DepositInsurance #FinancialGovernance #StrategicExecution #SE

Following today's earlier post regarding the shared presentation covering the changes under the Fundamental Review of the Trading Book (#FRTB), this document presented in 2022 during the 5th Webinar on Banking, Finance and Investments organized by the Institute of Actuaries of India covers in full the requirements regarding the 𝗙𝗥𝗧𝗕-𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝗶𝘇𝗲𝗱 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵-Market Risk. It is an important reference presentation prepared by Mr. Harshit Gupta, Executive Director and covering the following: 𝟭-𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄 𝗼𝗳 𝗺𝗮𝗿𝗸𝗲𝘁 𝗿𝗶𝘀𝗸  𝟮- 𝗗𝗿𝗶𝘃𝗲𝗿𝘀 𝗼𝗳 𝗺𝗮𝗿𝗸𝗲𝘁 𝗿𝗶𝘀𝗸  𝟯- 𝗦𝗼𝘂𝗿𝗰𝗲𝘀 𝗼𝗳 𝗺𝗮𝗿𝗸𝗲𝘁 𝗿𝗶𝘀𝗸 𝗳𝗼𝗿 𝗮 𝗯𝗮𝗻𝗸  𝟰- 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀 𝗳𝗼𝗿 𝗺𝗮𝗿𝗸𝗲𝘁 𝗿𝗶𝘀𝗸 𝘂𝗻𝗱𝗲𝗿 𝗕𝗮𝘀𝗲𝗹  𝟱- 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹 𝗥𝗲𝘃𝗶𝗲𝘄 𝗼𝗳 𝘁𝗵𝗲 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗕𝗼𝗼𝗸 (𝗙𝗥𝗧𝗕)  𝘢. 𝘉𝘰𝘶𝘯𝘥𝘢𝘳𝘺 𝘣𝘦𝘵𝘸𝘦𝘦𝘯 𝘵𝘳𝘢𝘥𝘪𝘯𝘨 𝘢𝘯𝘥 𝘣𝘢𝘯𝘬𝘪𝘯𝘨 𝘣𝘰𝘰𝘬𝘴  𝘣. 𝘚𝘵𝘢𝘯𝘥𝘢𝘳𝘥𝘪𝘻𝘦𝘥 𝘢𝘱𝘱𝘳𝘰𝘢𝘤𝘩  𝘤. 𝘚𝘦𝘯𝘴𝘪𝘵𝘪𝘷𝘪𝘵𝘺 𝘉𝘢𝘴𝘦𝘥 𝘈𝘱𝘱𝘳𝘰𝘢𝘤𝘩  𝘥. 𝘋𝘦𝘧𝘢𝘶𝘭𝘵 𝘙𝘪𝘴𝘬 𝘊𝘩𝘢𝘳𝘨𝘦  𝘦. 𝘙𝘦𝘴𝘪𝘥𝘶𝘢𝘭 𝘙𝘪𝘴𝘬 𝘈𝘥𝘥-𝘰𝘯  #GRC #marketrisk #riskmanagement #fundamentalreview #tradingbook #Standardizedapproach #SA #capitaladequacy #RWA #Riskweightedassets #Basel #Solvency #defaultrisk #tradingbook #bankingbook #knowledge #futurerisk #resources #residualrisk #sensitivity #addon

On August 5, the Reserve Bank of India (RBI) released a draft circular titled ‘Regulatory Principles for Management of Model Risks in Credit’. This draft addresses potential risks associated with the use of various models by Regulated Entities (REs) in their credit management processes, such as credit appraisal, borrower scoring, pricing, and risk management. The goal is to ensure the robustness and reliability of these models in credit decision-making. Purpose: To mitigate risks arising from the use of models in credit management and enhance the robustness of model deployment by REs. Scope: Applicable to all REs using models for credit appraisal, borrower scoring, pricing, and risk management. Invitation for Comments: Comments and feedback on the draft circular are invited from the public and stakeholders by 4th September 2024. For more updates on regulatory developments and risk management in credit, follow Global Regulatory Insights! #RBICircular #CreditManagement #ModelRisk #BankingRegulations #RiskManagement #GRI

𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐉𝐚𝐧 𝐕𝐢𝐬𝐡𝐰𝐚𝐬 𝐀𝐜𝐭, 2023 𝐨𝐧 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐇𝐨𝐮𝐬𝐢𝐧𝐠 𝐁𝐚𝐧𝐤 𝐀𝐜𝐭, 1987 - 𝐏𝐚𝐫𝐭 1. In our ongoing exploration of the Jan Vishwas Act's extensive impacts, we turn our attention to the key amendments made to National Housing Bank Act, 1987. 𝐓𝐡𝐞 𝐉𝐚𝐧 𝐕𝐢𝐬𝐡𝐰𝐚𝐬 𝐀𝐜𝐭, 2023 introduces several modifications to 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐇𝐨𝐮𝐬𝐢𝐧𝐠 𝐁𝐚𝐧𝐤 𝐀𝐜𝐭, 1987 aiming to introduce new provisions relating to the powers of the Banking Authorities under the Act and omission of a few sections that have become obsolete. Key changes include omission of provisions relating to punishments and introduction of a new provision that empowers the National Housing Bank or the Reserve Bank of India (RBI) to take actions against the Auditors whilst providing them a reasonable opportunity of being heard. 𝐅𝐨𝐫 𝐝𝐞𝐭𝐚𝐢𝐥𝐞𝐝 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐨𝐧 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐬𝐞𝐜𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐩𝐞𝐧𝐚𝐥𝐭𝐢𝐞𝐬, 𝐩𝐥𝐞𝐚𝐬𝐞 𝐫𝐞𝐟𝐞𝐫 𝐭𝐨 𝐭𝐡𝐞 𝐚𝐜𝐜𝐨𝐦𝐩𝐚𝐧𝐲𝐢𝐧𝐠 𝐏𝐃𝐅. ➡ 𝐒𝐭𝐚𝐲 𝐭𝐮𝐧𝐞𝐝 𝐚𝐬 𝐰𝐞'𝐥𝐥 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐞 𝐰𝐢𝐭𝐡 𝐏𝐚𝐫𝐭 2 𝐨𝐟 𝐭𝐡𝐞 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐓𝐡𝐞 𝐉𝐚𝐧 𝐕𝐢𝐬𝐡𝐰𝐚𝐬 𝐀𝐜𝐭, 2023, 𝐨𝐧 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐇𝐨𝐮𝐬𝐢𝐧𝐠 𝐁𝐚𝐧𝐤 𝐀𝐜𝐭, 1987.  Ramanuj Mukherjee Priyanka Karwa Divya Dwivedi