TOP NEWS IN BANKING & FINANCIAL SERVICES
* The Reserve Bank of India said in a statement its monetary policy committee decided unanimously to raise the policy repo rate under the liquidity adjustment facility by 40 basis points to 4.4%, with immediate effect. The board also decided to adjust the standing deposit facility to 4.15% and the bank rate to 4.65%.
* National Australia Bank Ltd. said in a release its cash earnings for the fiscal first half inched up 4.1% year over year to A$3.48 billion from A$3.34 billion. The bank's net profit jumped 10.7% to A$3.55 billion, from A$3.21 billion in the prior-year period. The lender proposed an interim dividend of 73 Australian cents to be paid July 5.
➤ Asian banks' bond issuance fell in March amid interest rate uncertainties
Banks from Singapore, Japan and China raised a total of $3.24 billion in debt in March, down from $5.91 billion in the prior month and $9.94 billion in March 2021, according to data compiled by S&P Global Market Intelligence.
➤ Australian banks to rely on stronger investment demand as rates start rising
Australia's biggest lenders are likely banking on a stronger economy to fuel investment demand after the central bank hiked its benchmark interest rate for the first time in over a decade.
READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.
BANKING
* Executives from HSBC Holdings PLC and its largest shareholder, Ping An Insurance (Group) Co. of China Ltd., are looking to initiate discussions this month to explore the latter's proposal to spinoff its Asian operations, Reuters reported, citing a source close to the matter.
* Nomura Holdings Inc. appointed Wu Sheng vice chairman of investment banking for China and Jason Zhang to tackle the Japanese lender's advisory business for sustainable technology and infrastructure companies and projects in China, Bloomberg News reported, citing internal memos. Meanwhile, Nomura rehired Wayne Yue to focus on deals in the healthcare sector.
* Indonesian lender PT Bank Victoria International Tbk said it plans to issue 7.04 billion shares at 100 Indonesian rupiah apiece as it aims to fulfill the minimum capital requirement of at least 3 trillion rupiah, Bisnis Indonesia reported. The bank will seek approval for the rights issue plan at a June 3 shareholding meeting.
* Kotak Mahindra Bank Ltd.'s consolidated net profit after tax rose 50.3% year over year to 38.92 billion rupees in the fiscal fourth quarter ended March from 25.89 billion rupees in the prior-year period. Net interest margin stood at 4.78%, while EPS rose to 19.40 rupees from 12.86 rupees. The lender's board recommended a dividend of 1.10 rupees per equity share, up from 90 Indian paise per share in the fiscal fourth quarter of 2021.
* South Korea's KEB Hana Bank signed a business cooperation deal with BuildBlock, an investment platform for South Korean users to invest in U.S.-based real estate properties, The Chosun Ilbo reported, citing an announcement from the bank.
FINANCIAL SERVICES
* Life Insurance Corp. of India's IPO was 67% subscribed on the first day of bidding, Bloomberg News reported. India's largest public issue, which has attracted 123 anchor investors, including sovereign wealth funds from Norway and Singapore, will likely lure retail investors and policyholders with an emotional attachment to the insurer, the news wire noted.
* Thai microfinance company Ngern Tid Lor PCL plans to open 300 new branches in 2022 to reach more local customers, Post Today reported, citing Supachoke Akkarakulyos, senior vice president of sales and branches. Around 80 of these new branches will be located in gas stations, department stores and community malls.
POLICY AND REGULATION
* The People's Bank of China increased its relending quota for coal projects by 100 billion yuan to support clean and efficient use of coal, bringing the total special quota to 300 billion yuan.
* Murtaza Syed, a deputy governor of the State Bank of Pakistan, will take over as interim governor of the central bank, Pakistani Finance Minister Miftah Ismail said in a tweet. Syed was temporarily appointed after Reza Baqir vacated the role upon the expiration of his tenure, Ismail noted.
INDUSTRY NEWS
* Moody's said Malaysia's six largest banking groups by assets will be able to fend off the competition from innovative digital banks, following the licenses given by Bank Negara Malaysia to five new digital entrants, Bernama reported. The six largest banking groups are Malayan Banking Bhd., CIMB Bank Bhd., Public Bank Bhd., RHB Bank Bhd., Hong Leong Bank Bhd. and AMMB Holdings Bhd.
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As of May 4, US$1 was equivalent to 6.61 Chinese yuan, 34.33 Thai baht, 14,448.00 Indonesian rupiah and 76.23 Indian rupees.
Eden Estopace, Arra Igno, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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