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Today's Banking / Financial News at a Glance 06.12.2020

2020-12-06T00:53:00.004-08:00

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☕ 06.12.2020: Today's Banking / Financial News at a Glance

🍒 BBB recommends S Ramann for post of SIDBI chairman & managing director : The Banks Board Bureau (BBB), the headhunter for state-owned banks and financial institutions, on Saturday recommended S Ramann and Shivendra Tomar for the posts of CMD and MD of SIDBI and IFCI, respectively. The members of the Banks Board Bureau interviewed 20 candidates on December 4 and 5, 2020 for the vacancy of chairman and managing director (CMD) of Small Industries Development Bank of India (SIDBI), the BBB said in a statement. "Keeping in view their performance in the interview and their overall experience, the bureau recommends S Ramann for the position of chairman and managing director in SIDBI," it said. Ramann, 1991-batch Indian Audit & Accounts Service officer, is currently CEO of National E-Governance Services Limited (NeSL), India's first Information Utility. Besides, the Bureau recommended Shivendra Tomar for the post of MD and CEO of IFCI. - economic times

🍒 PNB to hold roadshow for proposed Rs 7,000 crore QIP next week : Punjab National Bank on Saturday said it will hold a roadshow for the proposed Rs 7,000 crore qualified institutional placement (QIP) issue next week. The bank will be participating again in the non-deal roadshow and meeting prospective investors on December 7-8, 2020, PNB said in a regulatory filing. The bank has taken approval for raising Rs 7,000 crore through Qualified Institutional Placement (QIP) route this fiscal. In a non-deal roadshow, nothing is for sale, a bank official said, adding it is an opportunity to discuss and develop interest in an upcoming offer. The bank has already taken approval from the board for raising Rs 14,000 crore by way of Tier II, Additional Tier 1 (AT-1) bonds and QIP (Qualified Institutional Placement), PNB Managing Director S S Mallikarjuna Rao had said last month. - Business Standard

🍒 Invest more in IT infrastructure for better reach: RBI Governor : The window to banking is now as wide as the worldwide web – so vast that protecting new-gen customers transacting online could soon tell success from failure in an industry that, for centuries, thrived on networking behind closed doors. With banking taking on an increasingly digital accent each passing day, Mint Road is now buttressing standards around grievance resolution and customer protection to ensure continued confidence in the burgeoning virtual channels that are crucial for financial inclusion. “Lakhs of internet banking customers cannot be put under distress,” Das said Friday, underscoring the need to strengthen both banking technology systems — and their supervision. “The financial sector is becoming increasingly IT-dependent and requisite investments by banks and NBFCs are necessary,” Das said. “We are constantly engaging with the entities around deficiencies…as the apex regulator of the banking and payment systems, certain action becomes unavoidable.”- economic times

🍒 RBI survey revises forecast for real GDP growth upwards for FY’21, FY’22 : The Reserve Bank of India’s (RBI) latest Survey of Professional Forecasters (SPF) has revised the forecast for real gross domestic product (GDP) growth upwards for FY21 and FY22 vis-a-vis the last round of SPF. The 67th round of SPF has projected a lower contraction of 8.5 per cent (median forecast) in real GDP in FY21 versus the 66th SPF round’s estimate of a 9.1 per cent contraction. Real GDP is expected to recover next year (FY22), when it is expected to grow by 9.5 per cent against earlier projection of 8.2 per cent, as per the Survey. The latest Survey has revised upwards the headline consumer price index (CPI) inflation projections for all the four quarters (Q3: October-December 2020 and Q4: January-March 2021; and Q1: April-June 2021 and Q2: July-September 2021) when compared with the previous survey round - Business Line

🍒 Consumer confidence takes a beating in November: RBI survey : Consumer confidence remained very low in November 2020 compared to a year ago, as reflected in the Current Situation Index (CSI), as per Reserve Bank of India’s (RBI) Consumer Confidence Survey. The weak confidence is attributable to consumer sentiments on the general economic situation, employment scenario, price levels and household incomes, according to the central bank. The November 2020 CSI reading came in at 52.3 against 85.7 in November 2019. The latest CSI reading, however, showed a marginal improvement over the all-time low of 49.9 recorded in the previous (September 2020) round. Households remain optimistic of the situation one year ahead, with the Future Expectations Index (FEI) remaining in growth terrain at 115.9, against 114.5 in the November 2019 round. - Business Line

🍒 ‘Investor response to PMC Bank resolution positive’ : Potential investors’ response to the Expression of Interest (EoI) floated by the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank for investment/ equity participation for reconstructing the bank looks positive at this point of time, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. To a specific question as to why YES Bank and Lakshmi Vilas Bank could be resolved quickly but not PMC Bank, Das said the situation in PMC Bank was completely different. “The last date for submission of EoI is December 15. Let us see what is the response and after that we can take a view on this,” said the Governor. The bank, and its management, are engaged with investors who have purchased the information memorandum, he added - Business Line

🍒 In growth push, RBI continues liquidity support : The Monetary Policy Committee (MPC) on Friday left the policy repo rate unchanged at 4 per cent, for the third time on the trot. This was widely expected given the sticky retail inflation which, in the RBI’s view, is likely to remain elevated. However, to support the nascent recovery in the economy, the six-member MPC persisted with its accommodative stance and decided to continue with it for as long as necessary to revive growth on a durable basis. The MPC forecast the retail inflation to hold above its midpoint target of 4 per cent in the second half of 2020-21. Its members unanimously voted to keep the policy rate unchanged. With the outlook for inflation turning adverse relative to expectations in the last two months, the MPC projected CPI (consumer price index) inflation at 6.8 per cent for Q3 FY 21 and 5.8 per cent for Q4 FY21. The CPI inflation for the first half of FY22 has been forecast at 4.6-5.2 per cent, with risks broadly balanced. - Business Line

🍒 KVG Bank launches OD facility for farmers : The Dharwad-headquartered regional rural bank, Karnataka Vikas Grameen Bank (KVGB), has launched an overdraft (OD) facility for farmers. Speaking at the launch of the ‘Kirishi OD’ scheme designed for farmers, P Gopi Krishna, Chairman of the bank, said that the farmers are provided with an OD facility based on the value of the land. The limit is capped to a maximum of ₹1.5 lakh per acre to irrigated lands and ₹1 lakh per acre to dry land. The facility can be used for working capital requirements such as maintenance of machinery and equipment, repair and replacement of machinery, agricultural allied activities and even for the repayment of private loans availed for personal use. He said the uncontrolled weather, escalating natural disasters, and the current Covid situation have made farmers vulnerable. “To ease the situation, KVGB has designed a special OD facility for the farmers to help them to cope with the situation,” he added. - Business Line

🍒 Satin Creditcare Network to expand in South India : Microfinance company Satin Creditcare Network Ltd plans to strengthen its presence in the South with the opening of a few more branches, said the company’s Chief Operating Officer K Thangaraju. As part of its expansion plan, the company opened four branches at Perundurai, Udumalpet, Kinnathukadavu and Dharapuram in this region about 10 days back, and a regional office in Coimbatore on Friday. With 84 branches in the South (of which 53 and 31 are in the states of Tamil Nadu and Karnataka respectively), the company is looking to further strengthen its network in the South. Thangaraju said that the company has extended loans amounting to ₹360 crore to women self-help groups (SHGs) over the last two years. - Business Line

🍒 Gold Prices Decline To Rs 49,209 Per 10 Gram, Gains 2.66% For The Week : Gold prices edged lower to settle at Rs 49,209 per 10 gram on December 4 as participants trimmed their long position as seen by the open interest. The precious metal after hitting a low of Rs 47,792 on Monday ended the week with a gain of 2.66 percent for the week. In the retail market, the bullion metal settled at Rs 49,316 per gram on Friday up nearly 1 percent for the week on hopes of additional US stimulus and weakness in the dollar. The gold/silver ratio currently stands at 78.19 to 1, which means the amount of silver required to buy one ounce of gold. The retail silver prices eased Rs 54 to Rs 63,064 per kg from its closing on December 3.

🍒 Sensex, Nifty Create History: Over 60 Stocks In bse500 Index Rise 10-50% In A Week : Indian market created history as bulls pushed benchmark indices beyond crucial psychological levels in the holiday-shortened week. The S&P BSE Sensex surpassed Mount 45K while Nifty50 managed to hold 13,100-13,200 levels. The S&P BSE Sensex rose 2.1 percent while the Nifty50 climbed 2.2 percent for the week ended December 4 while the action was more prominent in the broader market space.The S&P BSE Mid-cap index rose 2.8 percent while the S&P BSE Smallcap index closed with gains of 2.6 percent for the week ended December 4. There are as many as 65 stocks in the BSE500 index that rose 10-50% in just 4 sessions that include names like KNR Construction, Tata Power, Maruti Suzuki, Sun Pharma, Adani Enterprises, Hindalco, Oberoi Realty, SAIL, SpiceJet, Tata Chemicals, and Adani Power, etc. among others. - moneycontrol..

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2020-12-05T06:56:00.003-08:00

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2020-11-24T21:22:00.001-08:00

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Today's Banking / Financial News at a Glance 25.11.2020

2020-11-24T21:20:00.000-08:00

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☕ 25.11.2020: Today's Banking / Financial News at a Glance

🍒 SBI raises ₹2,500 cr from Basel-lll compliant bonds to fund business growth : State Bank of India (SBI) on Tuesday said it has raised ₹2,500 crore from bonds to fund business growth. The committee of directors for capital raising at its meeting held on Tuesday accorded approval to allot 25,000 Basel-lll compliant non-convertible, taxable, perpetual, subordinated, unsecured, fully paid-up debt instruments in the nature of debentures qualifying as AT 1 capital of the bank to the subscribers, it said in a regulatory filing.The bonds of face value of ₹10 lakh each, at par, bearing a coupon of 7.73% per annum payable annually with call option after five years and on anniversary dates thereafter, aggregates to Rs, 2,500 crore, it said.Under call option, the bond issuer can call back the bonds before the maturity date by paying back the principal amount to investors.The Basel-III capital regulations are globally accepted banking norms under which banks need to improve and strengthen their capital planning processes.Basel-III norms are being implemented in phases since 2013 by Indian banks to mitigate concerns on potential stress on asset quality and consequential impact on performance and profitability of banks.Last month, SBI had raised ₹5,000 crore by issuing Basel-III compliant bonds. - Live Mint.

🍒 PNB customers complain TDS deduction on every cash withdrawal : Several depositors at Punjab National Bank were at their wits' end as the bank had deducted TDS (tax deducted at source) on every cash withdrawal they did. The incidents happened at the erstwhile United Bank of India branches, which saw complaints pouring right from the start of the banking hours Tuesday. "The bizarre development came to my notice last night," said Abhijit Sen, a resident of Salt Lake who withdrew Rs 30,000 from a branch in his locality on Monday morning. He got a message later in the day saying the bank deducted Rs 6,000 as TDS! ET found out that customers of several other branches (formerly UBI branches) faced a similar plight. "This happened due to wrong data entry when data cleaning was taking place," a senior PNB executive said. "There is no question of panic. All amounts will be refunded within 24 hours," he said. - economic times

🍒 Union Bank of India proposes to raise ₹1,000 crore from bonds : The Union Bank of India on Tuesday said it will raise up to ₹1,000 crore from bonds to fund business growth. "The bank is issuing Basel III compliant Tier II bonds in the nature of debentures aggregate issue size not exceeding ₹1,000 crore, with a base issue size of up to ₹500 crore and a Green Shoe option to retain over subscription up to ₹500 crore," the lender said in a BSE filing. The bonds of face value of ₹10 lakh each, bearing a coupon of 7.18% per annum, will have maturity of 15 years, it said. The bonds have fixed allotment date of 26 November, 2020. The Basel-III capital regulations are globally accepted banking norms under which banks need to improve and strengthen their capital planning processes. The state-owned bank reported a net profit at ₹517 crore for the quarter ended September, against a net loss of ₹1,194 crore in the year-ago period. - Live Mint

🍒 Central bank rejects Muthoot Finance proposal to acquire IDBI MF : Muthoot Finance on Tuesday said its plan to acquire IDBI Mutual Fund was not accepted by Reserve Bank of India. “We would like to inform that Muthoot Finance Limited’s request for a no objection certificate was not acceded to by the Reserve Bank of India on the ground that, ‘the activity of sponsoring a Mutual Fund or owning an Asset Management Company is not in consonance with the activity of an operating NBFC’,” it said in a regulatory filing. It has accordingly informed SEBI through a letter on November 23 that it would be unable to proceed with the proposed transaction. Muthoot Finance had, in November last year, entered into a share purchase agreement with IDBI Bank, IDBI Capital Markets and Securities, IDBI Asset Management and IDBI MF Trustee Company to acquire 100 per cent equity shares of IDBI Asset Management and IDBI MF Trustee Company. The deal was estimated at ₹215 crore and would have paved the way for Muthoot’s entry into mutual fund asset management space. - Business Line

🍒 AIBEA to join trade unions in nationwide general strike on Nov 26 : The All India Bank Employees' Association ( AIBEA) on Tuesday said it would be joining the one-day nationwide strike on November 26 called by central trade unions to protest against the government's anti-labour policies. Ten central trade unions, except Bharatiya Mazdoor Sangh, will observe a nationwide general strike on November 26. "Lok Sabha in its recently held session has passed three new labour enactments by dismantling existing 27 enactments in the name of 'Ease of Business', which are purely in the interest of corporates. In the process, 75 per cent of workers are being pushed out of the orbits of labour laws since they will have no legal protection under the new enactment," the AIBEA said in a release. - economic times

🍒 AIBEA threatens strike over RBI panel’s idea to give banking license to corporates : The All India Bank Employees Association (AIBEA) has termed a Reserve Bank of India (RBI) internal panel’s recommendation to give banking license to corporate houses as “most retrograde and unwarranted”. The Association threatened to unleash countrywide agitation and organise repeated strikes if the Government and RBI allow corporate houses to take over banks. - Business Line

🍒 Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P : Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is "masking" problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of Non-performing loans (NPL) to total loans declined consistently so far this year. "While financial institutions performed better than we expected in the second quarter, much of this is due to the six-month loan moratorium, as well as a Supreme Court ruling barring banks from classifying any borrower as a non performing asset," S&P Global Ratings credit analyst Deepali Seth-Chhabria said. - economic times

🍒 Half of NBFCs which qualify for bank licence are corporate-owned : Around half of the finance companies with assets of over Rs 50,000 crore that meet the RBI’s size criteria to get a bank licence are part of corporate groups, while two are already part of banking groups. Not many standalone non-banking financial companies (NBFCs) are likely to qualify for the bank licence norms. The RBI’s internal working group in its report had said that well-run NBFCs, with an asset size of above Rs 50,000 crore, including those which are owned by a corporate house, may be considered for conversion into banks. Among the top 10 finance companies in terms of assets under management, Aditya Birla Capital, Bajaj Finance, L&T Finance Holdings, Mahindra Finance, Piramal, and Tata Capital are part of a corporate group. Of the remaining NBFCs, HDFC is already a promoter of a bank, while the Life Insurance Corporation, promoter of LIC Housing Finance, owns IDBI Bank. PNB Housing Finance, another large NBFC, is owned by Punjab National Bank. The RBI has said that companies have to wait till laws are changed to give the central bank powers to supervise corporate groups before giving them a bank licence. - economic times

🍒 RBI’s supervisory purview may not enthuse corporates : The possibility of their other businesses coming under the Reserve Bank of India’s (RBI) supervisory purview may hold back large corporate/industrial houses from applying for a bank license, say experts. An RBI internal working group recently recommended that large corporate/industrial houses may be allowed as promoters of banks. They will be allowed entry into the banking space only after necessary amendments to the Banking Regulations Act, 1949. These amendments will deal with connected lending and exposures between the banks and other financial and non-financial group entities; and strengthening of the supervisory mechanism for large conglomerates, including consolidated supervision. - Business Line

🍒 Mercedes-Benz India, SBI in a retail marketing pact : In a first-of-its kind collaboration, the country’s top luxury car maker Mercedes-Benz India has entered into a retail marketing tie-up with State Bank of India (SBI), to access latter’s HNI (high net-worth individual) customer base for selling its premium cars. Mercedes-Benz’s collaboration with the SBI is a unique initiative to generate enquiries as well as provide online booking facility coupled with attractive benefits through the bank’s extensive national penetration to reach potential customers. SBI and Mercedes-Benz will promote the partnership over online and offline channels, including across branches and dealerships in order to reach the maximum number of customers. SBI’s HNI customers in all 17 circles pan India, will have access to the collaboration with Mercedes-Benz. - Business Line

🍒 AU Small Finance Bank sells Aavas Financiers' shares worth Rs 530 crore : AU Small Finance Bank (AU SFB) sold 3.5 million shares of Aavas Financiers on the BSE on Monday, according to bulk deals' data. The value of these shares, at Rs 1,515.2 apiece is Rs 530.3 crore, as per data from the exchange. Part of this, worth Rs 236.4 crore, was bought by Nomura India Investment Fund Mother Fund (Rs 136.4 crore) and SBI Life Insurance Company (Rs 100 crore). The stock of Aavas Financiers was up 2.3 per cent at Rs 1,527.05 on Monday, while AU SFB closed 1.22 per cent lower at Rs 869.20. According to exchange data, AU SFB held 3.582 million shares in Aavas Financiers as on end September 2020. - Business Standard

🍒 Good performance masks problem assets for Indian banks, says S&P : The forbearance – moratorium on repayments for six months-- is masking problem assets for Indian banks arising out of Covid-19. Financial institutions, including banks, are likely to have trouble maintaining momentum after the proportion of non-performing loans (NPL) to total loans declined consistently in 2020, according to Standard and Poor’s (S&P). Rating agency S&P, in a statement, said while financial institutions performed better than we expected in the second quarter, much of this is due to the six-month loan moratorium, as well as a Supreme Court ruling barring banks from classifying any borrower as a non-performing asset. It released a report "The Stress Fractures In Indian Financial Institutions." The loan repayment moratorium ended on August 31, 2020. The non-performing loans in the banking sector will likely shoot up to 10-11 per cent of gross loans in the next 12-18 months, from 8 per cent on June 30, 2020. - Business Line

🍒 RBI rejects Muthoot Finance's plan to buy IDBI AMC over lack of consonance : The Reserve Bank of India has rejected Kerala-based Muthoot Finance's proposal to acquire IDBI AMC. Muthoot Finance today said that its request for a no-objection certificate was not acceded to by RBI on the ground that, “the activity of sponsoring a Mutual Fund or owning an AMC is not in consonance with the activity of an operating NBFC. Consequently, Muthoot informed Sebi that it is unable to proceed with the proposed transaction. Muthoot Finance Limited (MFIN), a Kerala-based gold loan NBFC, had signed a share purchase agreement to acquire IDBI Asset Management Limited and IDBI MF Trustee Company Limited in November 2019, for a consideration of around Rs 215 crore. Through this acquisition MFIN was planning to enter the Mutual Fund Asset Management space. - Business Standard

🍒 Retail loans pull credit growth back from brink : Outstanding non-food credit grew for the first time on a year-to-date basis in FY21, aided by the demand for retail loans during the festive season, according to data released by the Reserve Bank of India (RBI). In the fortnight ended 6 November, outstanding non-food credit stood at ₹103.2 trillion, slightly more than ₹103.1 trillion reported by banks as on 27 March. On an absolute basis, outstanding credit has grown ₹5,804 crore. Credit data is released by the central bank every fortnight, with details on outstanding bank loans, net of repayments made by borrowers. Credit growth is still languishing in the 5-6% range on a year-on-year (y-o-y) basis, but the festive season offered some respite when people spent more than earlier, bankers said. - Live Mint

🍒 Muthoot Finance ties up with Bajaj Allianz : Muthoot Finance said on Monday that it has has tied up with Bajaj Allianz General Insurance to provide insurance on gold jewellery as part of their new initiative. Known as ‘Muthoot Gold Shield’,the policy provides insurance coverage of gold jewellery for individuals at the time of closure of gold loan and release of gold ornaments. It will provide insurance coverage to the customers of Muthoot Finance as a loyalty product. The policy covers burglary, robbery, theft from insured person’s home,loss-intransit and 13 other disasters - financial express

🍒 Taking banking services to last mile: Women self-help groups driving financial inclusion in India : India’s policy towards financial inclusion as a propeller of economic growth is at the forefront of the Government’s considerations for some time now. In January 2020, the Reserve Bank of India published the National Strategy for Financial Inclusion 2019-2024 in a bid to integrate the country’s existing 190 million unbanked population into the financial mainstream. As part of the strategic objectives identified, the RBI laid out certain milestones, the foremost of which is to provide banking access to every village. Easier said than done for a country as vast and populous as India. To achieve this objective, the more effective model that has been identified and being adopted is the Banking or Business Correspondent model. While this model’s merit was acknowledged way back in 2007, its complex economics and logistics require the support of the Federal Government, the Banking System, and the States. While India’s banking sector is witnessing a paradigm shift led by technological evolution, infrastructure remains a veritable constraint, which limits access to financial services for poor people living in remote areas. - financial express

🍒 NBFCs cautious on RBI working group proposals on banking entry : Non-banking finance companies (NBFCs) are highly cautious in responding to the recent proposals from an RBI-working group on the conversion of large NBFCs into banks. One of the recommendations of the RBI working group was that well-run large NBFCs, with an asset size of Rs50,000 crore and above, including those which are owned by a corporate house, may be considered for conversion into banks. This should be subject to completion of 10 years of operations and meeting due diligence criteria and compliance with additional conditions specified in this regard, the working group said. To be sure, these are suggestions. The regulator will take a final call based on the report proposals. “There are already on-tap licensing norms existing in India,” said George Alexander Muthoot, Managing Director of Gold-loan NBFC, Muthoot Finance. “The RBI working group is only giving some modifications to the existing guidelines. And these are only suggestions. We will study when the final guidelines come,” said Muthoot. - moneycontrol.

🍒 Muthoottu Mini Financiers targets ₹1,000-cr business this fiscal : Muthoottu Mini Financiers Ltd, the Kerala-based NBFC, is aiming to achieve a business growth of ₹1,000 crore in the current fiscal through its expansion and restructuring strategy. The company has opened a zonal office in Vijayawada and 13 new branches in Andhra Pradesh as part of its expansion plan. The new branches were inaugurated digitally by Mathew Muthoottu, Managing Director of the company, from its Kochi head office. With the inclusion of these new branches and the zonal office, the company will now have 806 branches across 10 States. The company also plans to spread its network to Gujarat, Maharashtra, Delhi, Haryana, Telengana, and a few more branches in Andhra Pradesh, in the coming years, he said. - Business Line

🍒 Gold price plunges by Rs 1,049 to Rs 48,569 per 10 gram; silver price tumbles by Rs 1,588 to Rs 59,301 per kg : Gold prices plunged by Rs 1,049 to Rs 48,569 per 10 gram in the national capital on Tuesday following weak global cues and rupee appreciation, according to HDFC Securities. In the previous trade, the precious metal had closed at Rs 49,618 per 10 gram. Silver also faced selling pressure as it tumbled by Rs 1,588 to Rs 59,301 per kg from Rs 60,889 per kg in the previous trade. In the international market, gold was quoting lower at USD 1,830 per ounce and silver was flat at USD 23.42 per ounce. - moneycontrol.

🍒 Rupee settles 10 paise higher at 74.01 against US dollar : The rupee appreciated by 10 paise to close at 74.01 against the US dollar on Tuesday on sustained foreign fund inflows and positive development over coronavirus vaccine. Traders said investor risk sentiment improved amid growing hopes of an early rollout and efficacy of COVID-19 vaccines. Besides, strong domestic equities, sustained foreign fund inflows and weak American currency also supported the local unit.

🍒 NSE declares Karvy Stock Broking a defaulter; expels from membership : The National Stock Exchange (NSE) has declared Karvy Stock Broking as a defaulter for non-compliance with the regulatory provisions of the bourse. In addition, Karvy Stock Broking has been expelled from the membership of the exchange, the NSE said in a circular. The move, effective from November 23, was taken as the broker failed to comply with NSE’s guidelines, it added.

🍒 Lakshmi Vilas Bank stock tanks over 53 per cent in 6 days : Shares of Lakshmi Vilas Bank continued to face selling pressure for the sixth consecutive day and have tanked over 53 per cent during the period amid negative reports around the company. On Tuesday, the stock plunged 9.88 per cent to Rs 7.30 -- its lower circuit limit as well as one year low -- on BSE. At NSE, it plummeted 9.88 per cent to Rs 7.30 -- its lowest trading permissible limit for the day. Since last Tuesday (November 17), the stock has tanked 53.35 per cent on the BSE.

🍒 Bank stocks drive Nifty above 13,000; Sensex at a new high : The benchmark indices ended at record highs on November 24, with Nifty going past 13,000 for the first time. At the close, the Sensex was up 445.87 points, or 1.01%, at 44,523.02, and the Nifty ended 128.70 points, or 1%, higher at 13,055.20..

🙏 “All the Best… Have a Good n safe day.

Today's Banking / Financial News at a Glance 09.11.2020

2020-11-08T19:44:00.005-08:00

🙏 Good Morning All...

☕ 09.11.2020 : Today's Banking / Financial News at a Glance

🍒 Fresh investment demand from corporates is some time away, says SBI Chairman Dinesh Kumar Khara : Although corporates have started utilising their working capital limits on the back of a very clear trend for demand revival in the economy, any fresh investment demand from corporates is some time away, State Bank of India chairman Dinesh Kumar Khara said on Saturday. “My sense is from the next financial year we (economy) will be nearer to the normal,” Khara said addressing the annual general meeting of The Bengal Chamber of Commerce and Industry here. He said in October all the high-frequency indicators were portraying a very positive scenario. “I think partly it is also attributed to the fact that there is a lot of Covid fatigue. Everybody would like to get into the mainstream economic activity as soon as possible. That is also one of the reasons for the kind of enthusiasm seen in the economy. Earlier, we have felt that it is pent up demand, which is there from the consumers. But, I think now the way indicators are showing, there is a very clear trend for the demands,” the SBI chief said through video-conferencing.He said in October all the high-frequency indicators were portraying a very positive scenario. “I think partly it is also attributed to the fact that there is a lot of Covid fatigue. Everybody would like to get into the mainstream economic activity as soon as possible. That is also one of the reasons for the kind of enthusiasm seen in the economy. Earlier, we have felt that it is pent up demand, which is there from the consumers. But, I think now the way indicators are showing, there is a very clear trend for the demands,” the SBI chief said through video-conferencing. - financial express

🍒 Indian Overseas Bank seeks about Rs 1,000 cr capital support from government : Indian Overseas Bank (IOB) has sought a capital support of about Rs 1,000 crore from the government in order to create buffer for any exigency, a top official of the bank said. The state-owned lender, which has posted profit for the last three consecutive quarters, expects to continue the trend in the remaining part of the current fiscal year with increased focus on recovery and business pick up.For September quarter, the bank posted a profit of Rs 148 crore as compared to a net loss of Rs 2,254 crore in the same period a year ago. Net profit in the quarter grew 22.3 per cent from Rs 121 crore in April-June."We expect the trend to continue and book profit quarter after quarter aided by prospects of better recovery. There will be no question of going back," IOB Managing Director P P Sengupta told PTI.Asked about capital needs, he said, "we want our profit to strengthen our capital. That is our internal aim and we are marching towards that goal. As a prudent measure, we have sought some capital support, let us see how much we get. We want to keep capital as buffer for any exigency or contingency." - Economic Times

🍒 Lakshmi Vilas Bank makes its stance clear to Clix group on Religare deposit case : Lakshmi Vilas Bank has reached out to the Clix Group with “all the documents” on its contingent liability related to Religare Finvest deposits, instruments the bank had set off against unpaid loans given to private firms of the erstwhile Religare promoters Malvinder and Shivinder Singh. Clix wanted Lakshi Vilas to make full provisions against the liability amounting to Rs 794 crore ahead of the proposed merger. The bank holds a contingent provision of Rs 200 crore, which is not included in tier I/tier II capital calculations. Hence, Clix wanted it to provide the balance Rs 594 crore. “We have submitted all the documents justifying our stance as to why making full provision is not necessary. We are the rightful owner of the money,” a senior bank official told ET. The bank has taken legal opinion on the matter and believes the appropriation is lawful and tenable, requiring no further provisions. - economic times

🍒 Less than half of ₹8,000-crore Covid claims filed so far have been settled : Seventy-seven year old Asesh Prasad Ghosh died after a three-day battle with Covid at one of the premier city-based private hospitals. His total bill for three days added up to nearly ₹3 lakh, with the ICU room charges and ventilator alone costing his family a whopping ₹88,000 a day. Luckily, he was under his son’s corporate health insurance cover and got back nearly 90 per cent of the total claims. But having an insurance policy may not be enough to ensure that you get fully covered, and there have been instances where patients have received only 50-70 per cent of their claims. Insurance companies on their part have clarified that they would only be able to honour claims to the extent that they are “reasonable and customary”, indicating that they may not be able to honour claims that are “unreasonable” arising primarily due to overbilling by hospitals. - Business Line

🍒 Closely monitoring inventory, asking builders to start selling: PNB Housing : With economic activity gradually improving post lockdown, PNB Housing Finance is closely monitoring the inventory levels of builders and asking them to start selling as demand for home loans is nearly getting back to normal, its MD and CEO Hardayal Prasad said. "Economic activity is still at a low ebb, but it has started picking up. The economic activity in certain areas is obviously returning back to pre-Covid days, I would say. When we talk to the builders and our sales team and people who are on the ground, who go and talk to the consumers and prospective borrowers, there are green shoots that we are seeing everywhere," Prasad told PTI in an interview. "The kind of enquiries that we used to get at one point of time, we are already almost at about 80-85 per cent of the pre-Covid level," he added. - Business Standard

🍒 Early-stage VC firm Inflexor aims to close Rs 500-crore fund by March : Early-stage venture capital firm Inflexor Ventures aims to close its Rs 500-crore fund by March next year, and the proceeds will be invested in about 25 companies over the next few years, a top executive said. Inflexor Technology Fund, which was set up by the founders of the erstwhile Parampara Fund, had made the first close of the Rs 500 crore fund in August this year, at Rs 230 crore.Speaking to PTI, Inflexor Ventures Managing Partner Venkat Vallabhaneni said the latest fund is focussed on technologies that are making a deep impact on the society. "Mostly, we invest in early-stage companies that are making some revenue and have customers. Generally, we enter with a Rs 5-7 crore cheque and after that we stay with the company through their growth," he said adding that there is a follow-on funding of up to Rs 15-20 crore based on performance, growth and capital requirements. - - Business Standard'

🍒 M-cap of nine of top-10 most valued firms zooms over Rs 2.30 lakh crore : The combined market valuation of nine of the top-10 most valued companies zoomed by Rs 2,30,219.82 crore last week, with HDFC twins leading the pack. During the last week, Sensex soared 2,278.99 points or 5.75 per cent.Barring Reliance Industries Ltd, the country''s most valued firm, all nine companies witnessed rise in their market valuation for the trading week closed on Friday. The market capitalisation of HDFC Bank jumped by Rs 68,430.18 crore to Rs 7,19,948.29 crore, emerging as the biggest gainer among the most valued companies. - financial express

🍒 CII writes to finance ministry, suggests ECLGS scheme for stressed sectors : The Confederation of Indian Industry (CII) has written to the finance ministry, urging to explore an Emergency Loan Credit Guarantee Scheme to support the stressed sectors and argued that prolonged strain on employment-intensive sectors could impede economic recovery. The industry chamber on Sunday said it has recommended this intervention to assist the stressed segments, primarily in the service sectors like hospitality, tourism aviation and retail, as this would not have any impact on the fiscal deficit this year but will provide the much needed liquidity to these sectors which employ a large number of people. "CII appreciates the revenue constraints faced by the government and its impact on the widening fiscal deficit. This intervention, similar to what has been done for the MSMEs will be a win-win for all," Chandrajit Banerjee, Director General CII, said. - economic times.

Have a Good day. All the Best.

Today's Banking / Financial News at a Glance 08.11.2020

2020-11-07T22:18:00.004-08:00

🙏 Good Morning All...

☕08.11.2020: Today's Banking / Financial News at a Glance

🍒 Economy expected to bounce back from next fiscal: SBI chairman : The country's economy, which has shown resilience to come out from a downturn caused by the COVID-19 pandemic, is expected to bounce back from the next fiscal, State Bank of India chairman Dinesh Kumar Khara said on Saturday. There will be a "paradigm shift" which will lead to a more matured economy" with economic players learning to contain costs, he said. Addressing the virtual annual general meeting of Bengal Chamber of Commerce and Industry, Khara said, "The economy is expected to bounce back from the next fiscal starting from April 2021. The next normal will see a paradigm shift and some of them will be permanent." Khara said the economy had shown "resilience to come out from the downturn" and some positive traction was witnessed towards the end of the first quarter of the current fiscal. - Economic times

🍒 Canara Bank cuts MCLRs by 0.05-0.15 pc for various tenors from Nov 7 : State-owned Canara Bank on Friday said it has cut the marginal cost of fund based lending rates (MCLR) by 0.05-0.15 per cent with effect from November 7. The one-year MCLR -- the benchmark for most of the consumer loans -- has been reduced by 0.05 per cent to 7.35 per cent from 7.40 per cent currently, Canara Bank said in a regulatory filing.The six-month MCLR too has been lowered by a similar quantum to 7.30 per cent. Among others, the overnight and one-month MCLRs are cut by 0.15 per cent each to 6.80 per cent, while the three-month MCLR stands revised to 6.95 per cent, against 7.10 per cent. The new rates will come to effect from November 7, 2020, Canara Bank said. On Thursday, Indian Overseas Bank had announced to cut the one, two and three-year MCLRs by 0.05 per cent each to 7.45 per cent. The overnight and one-month MCLR will be priced at 6.85 per cent each from 7.05 per cent and 7.35 per cent, respectively, at present. The new rates will come to effect from November 10, 2020, Indian Overseas Bank had said. - Business Line

🍒 Bank of Maharashtra cuts Repo Linked Lending Rate to 6.90 per cent : Bank of Maharashtra (BoM) has cut its Repo Linked Lending Rate (RLLR) to 6.90 per cent from 7.05 per cent earlier. The Pune-headquartered public sector bank, in a statement, said customers availing home loan, car loan, education loan, personal loan along with MSME (micro, small and medium enterprise) loan products can benefit following the 15 basis points RLLR cut, with effect from November 7. - Business Line

🍒 Ujjivan Small Finance Bank Q2 profit up marginally at Rs 96 cr : Ujjivan Small Finance Bank (SFB) on Saturday reported a marginal rise in net profit at Rs 96 crore for September quarter as provisions spiked.The bank posted a net profit of Rs 93 crore in the same quarter a year ago. In June quarter, the profit was Rs 55 crore. Total income during July-September 2020-21 increased to Rs 818.01 crore from Rs 729.36 crore in the year-ago period on the back of healthy interest income. Core income or the interest income increased 15.2 per cent to Rs 753.61 crore from Rs 654.33 crore in the same quarter of 2019-20. Net interest income grew 21 per cent to Rs 470 crore. - Business Line

🍒 Significant progress in proposed merger with Clix Group: Lakshmi Vilas Bank : Lakshmi Vilas Bank said that it has made "significant progress" with Clix Group for the proposed merger of the two. The bank also said that it has completed a minor incremental due diligence this week as requested by Clix Group. "Now, the respective sides are in the process of a workable and mutually acceptable framework," the bank announced Saturday. Meanwhile, the ailing private sector lender has seen its capital adequacy ratio (CAR) turning negative (-2.85%) for the first time while its tier 1 capital has been in the negative zone since March. Tier 1 capital was a negative 4.85% at the end of September against the minimum requirement of 8.875%. If the proposed merger of Clix Capital Service and Clix Finance India into the bank goes through, the issue of capital would be addressed. - Economic Times

🍒 Lakshmi Vilas Bank posts net loss of Rs 396.99 crore for Q2FY21 : The Lakshmi Vilas Bank on November 7 posted a net loss of Rs 396.99 crore during the quarter ending September 2020. The bank extended its net loss of Rs 357.17 crore from the second quarter of the previous financial year. Net interest margin shrunk to 1.37 percent for Q2FY21 against 1.47 percent for same period the previous year, the bank said in an exchange filing. Operating loss narrowed to Rs 5.66 crore against Rs 40.37 crore for Q2 the previous year. - Moneycontrol.

🍒 World Bank cautions against fake credit, debit cards with its name, logo : The World Bank on Friday cautioned the public against fraudulent issuance of debit and credit cards carrying its name and logo. The advisory came after its attention was drawn to such fraudulent issuance of debit/credit cards in India, according to the multilateral lending agency. "The World Bank Group does not issue debit/credit cards. The Bank Group has no involvement with individuals/groups who have issued these fake cards, and would like to caution the public to be wary of such fraudulent practices," it said in the advisory. "Please feel free to visit the World Bank's website www.worldbank.org to clarify about World Bank's programs and policies," it added. - Business Standard

🍒 Over 11 lakh MSMEs registered on Udyam online system since July: Govt : Over 11 lakh MSMEs have registered on the new online system of Udyam Registration launched in July, the government said on Saturday. Out of these, 3.72 lakh enterprises have registered under manufacturing category whereas 6.31 lakh enterprises under service sector. The share of micro enterprises is 93.17 per cent whereas small and medium enterprises are 5.62 per cent and 1.21 per cent, respectively. - moneycontrol.

🍒 Huge deviation in Bank Nifty and Nifty likely to narrow by December-end : Bank Nifty continues to act as a trailblazer, rallying by 12 percent during the week. The recent structure suggests that it has more room on the upside with the presence of a series of bullish anchor columns and positive follow-through. We expect, the leadership index to retrace 2/3 (i.e. 27,170) of its January-March 2020 decline. Ratio of Bank Nifty/Nifty since October month has seen the formation of bullish anchor columns followed with positive follow-through on P&F charts, implying strength & outperformance of banks against the benchmark Nifty. As per our pattern projection, the ratio can move higher towards 2.29 levels. Positive crossover is observed in XO zone. We believe a huge deviation between BankNifty and Nifty (in play for the most part of 2020), is likely to narrow down by year-end. Comparative out-performance and improved internal structure of the Indian markets are likely to attract positive traction. - Moneycontrol..

🙏 "Have a Good day...

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2020-11-04T19:33:00.006-08:00

Today's Banking / Financial News at a Glance

2020-11-04T19:20:00.002-08:00

Good Morning All....

☕ 05.11.2020: Today's Banking / Financial News at a Glance

🍒 SBI Q2 results: Profit surges 52% YoY to Rs 4,574 crore, beats Street estimates : Top lender State Bank of India (SBI) reported a 51.9 per cent year-on-year (YoY) rise in net profit for the quarter ended September at Rs 4,574.16 crore. The bank had reported a net profit of Rs 3,011.73 crore in the same quarter a year ago. An ET Now poll had projected the profit figure at Rs 4,400 crore.Its total income came in at Rs 75,341.80 crore, up 3.42 per cent from Rs 72,850.78 crore a year ago. The bank’s net interest income (NII) for the quarter rose 14.56 per cent to Rs 28,181 crore, while net interest margins (NIMs) came in at 3.34 per cent, compared with 3.22 per cent a year ago.It earned interest to the tune of Rs 66,814.11 crore compared with Rs 64,312.39 crore a year ago.The bank's gross NPAs came in at 5.28 per cent against 5.44 per cent in the preceding quarter and 7.19 per cent in the same quarter a year ago. Net NPAs for the quarter stood at 1.59 per cent against 1.86 per cent in the June quarter and 2.79 per cent a year ago. - economic times

🍒 SBI Q2: Improvement in disbursements, strong deposit traction are positive signs ; Significant improvement in retail loan disbursements, ramp-up in provisions, good traction in deposits, and strong capital ratios (about ₹20,000-crore capital was raised during the September quarter) are heartening trends from State Bank of India’s latest September quarter results. However, actual slippages (if not for the Supreme Court order on asset classification standstill) for the September quarter, persisting stress in the bank’s agriculture loan book, expected restructuring, slippages in the second half, and a sizeable SMA1 (payments overdue by 31-60 days) and SMA2 (overdue by 61-90 days) book suggest more pain ahead for the bank’s asset quality. - Business Line

🍒 SBI warns bad debt can worsen even as its profit beats estimates : State Bank of India warned that the ongoing coronavirus pandemic would lead to more bad debt, even as the nation’s largest lender reported better-than-expected profit after setting aside fewer provisions for problem loans. The bank’s net income jumped 52% to 45.7 billion rupees ($610 million) for the three months to September, beating the 36.9 billion rupee average estimate of 11 analysts surveyed by Bloomberg. While its bad loan ratio fell slightly to 5.28%, from 5.44% at the end of June, SBI expects a further 200 billion rupees of loans to sour over the next six months as the pandemic continues to impacts borrowers. This would result in 600 billion rupees of problem loans, or 2.5% of its loan book, at the end of March 2021. “Going forward we might see some kind of stress in small and medium enterprises, and in the agriculture sector,” Chairman Dinesh Khara said during a post-earnings call. - Business Standard

🍒 Bank of Baroda rolls out well-being programme for its employees : Bank of Baroda (BoB) on Wednesday said it has introduced an ‘Employee Assistance Program’ to help its employees to deal with their personal problems and professional issues through psychological counselling and consulting. The public sector bank, in a statement, said it has taken the first step in addressing the issues and upkeeping employees’ emotional well-being by introducing this program initially as a pilot project in Mumbai Zone and its corporate office. - Business Line

🍒 RBI Guv Shaktikanta Das chaired SAARC FINANCE Governors’ Group, member nations discussed current initiatives : Reserve Bank of India Governor Shaktikanta Das and other central bank governors in the South East Asian nations vowed to work in tandem to fight against the Coronavirus pandemic. At the 40th meeting of the SAARC FINANCE Governors’ Group, held Wednesday, they reaffirmed their commitment to continued co-operation and sharing of central bank experiences.Das chaired the meeting and highlighted the close partnership and co-operation among the member countries. The group took stock of the macroeconomic situation in the SAARC region; discussed the current initiatives by the member countries. - economic times

🍒 RBI imposes penalty totalling Rs 15 lakh on two co-operative banks : The RBI on Wednesday said it has imposed penalty totalling Rs 15 lakh on two co-operative banks, including Millath Co-operative Bank, Davangere (Karnataka) for non-compliance with directions issued by it. A penalty of Rs 10 lakh has been imposed on Millath Co-operative Bank for "non-adherence/violation of all inclusive directions and other directions imposed on the bank", the Reserve Bank of India (RBI) said in a statement. In another statement, it said a monetary penalty of Rs 5 lakh has been imposed on The Thiruvaikuntam Co-operative Urban Bank Limited, Thoothukudi (Tamil Nadu) for contravention of the directions issued by RBI on prohibition of loans and advances to directors. - economic times

🍒 Interest on interest waiver: Banks start crediting accounts; FinMin issues additional FAQs : Banks have started refunding borrowers the compound interest charged on specified loan accounts during the moratorium period. Last week, the Reserve Bank of India (RBI) had asked all lending institutions, including non-banking financial companies, to ensure that the scheme of waiver of interest on interest for loans up to Rs 2 crore for the six-month moratorium period is implemented by November 5. "Dear customer credited COVID-19 Relief ex-gratia of ... on November 3 to your account," a message from a public sector bank to a customer said.- economic times

🍒 SBI Card along with Paytm launch credit cards : SBI Cards and Payment Services (SBI Card) on Wednesday said it has launched credit cards in partnership with the digital payment platform Paytm. Available in two variants, Paytm SBI Card and Paytm SBI Card SELECT, the product has been launched on the Visa platform. This launch is in line with SBI Card's endeavour to offer customers tailored products which bring maximum value in line with spending needs and to encourage digital forms of payments for a safe and enhanced customer experience, SBI Card said in a release.- economic times

🍒 Yes Bank case: High Court rejects bail pleas of Wadhawans : The Bombay High Court on Wednesday rejected bail applications of Kapil and Dheeraj Wadhawan, promoters of Dewan Housing Finance Limited (DHFL), in the Yes Bank fraud case, holding that procedures were followed when a chargesheet was filed. Justice S V Kotwal rejected the arguments made by the Wadhawan brothers' lawyers, senior advocates Amit Desai and A M Singhvi, that the CBI failed to follow procedure while filing a chargesheet in the case. The Wadhawans had sought 'default bail', claiming that the Central Bureau of Investigation, the prosecuting agency, had not complied with the Code of Criminal Procedure (CrPC) while filing a chargesheet in a special CBI court here. A default bail is given when procedural aspects, such as filing chargesheet within the stipulated period, are not followed. - economic times

🍒 ‘Shriram Life Insurance to develop credit appraisal procedure’ : To maintain the quality of its credit portfolio amid falling interest rates and market volatility, Shriram Life Insurance is developing a credit appraisal procedure. “We are doing quite well in terms of assets under management and overall size of the book. We have focussed very much on the quality of the credit portfolio, and are also developing a credit appraisal procedure so that we scan our portfolio on a regular basis,” said Ajit Banerjee, Chief Investment Officer, Shriram Life Insurance. - Business Line

🍒 I-T refunds worth Rs 1.29 lakh cr issued to 39.49 lakh taxpayers : The Income Tax department has issued refunds worth over Rs 1.29 lakh crore to more than 39 lakh taxpayers so far this fiscal. This includes Personal Income Tax (PIT) refunds amounting to Rs 34,820 crore and corporate tax refunds aggregating to Rs 94,370 crore during this period. "CBDT issues refunds of over Rs 1,29,190 crore to more than 39.49 lakh taxpayers between 1st April, 2020 to 3rd November, 2020. Income tax refunds of Rs 34,820 crore have been issued in 37,55,428 cases & corporate tax refunds of Rs 94,370 crore have been issued in 1,93,059 cases,” Income Tax department said in a tweet. - economic times

🍒 46% people borrowed money to run their households during Covid times, reveals Home Credit India research : With job losses and pay cuts across industries during the Covid-19 pandemic, the lower middle-income group has been affected severely, says the findings of research from Home Credit India, a local arm of the international consumer finance provider with operations spanning over Europe and Asia. Home Credit India conducted a research across 7 cities to understand the borrowing patterns of people during the Covid lockdown. The pandemic has led to a shift in perspective towards loans and borrowing preferences, the research said. - Business Line

🍒 Banks offer competitive rates to woo home buyers : Competitive home loan rates by banks could further boost the demand for home loans. Private sector lender Kotak Mahindra Bank, which is offering one of the lowest interest rates, is keen on acquiring good quality customers in the home loan segment. “Our cost of funds has gone down apart from the policy rates. We have very competitive cost of funds. Also, home loan is one of the best asset categories. It is a relatively safer, long-term product,” said Shanti Ekambaram, Group President, Consumer Banking, Kotak Mahindra Bank. Speaking to BusinessLine, she said there is a lot of demand across the spectrum as “deals being offered by the eco-system as a whole are very interesting”. “We are seeing a lot of demand across the top five to six metros,” she said. - Business Line

🍒 Rs 1,800-cr fund infusion in pipeline; to be used to repay high-cost borrowings: PNB Housing CEO : With about Rs 1,800 crore equity fund raise in the pipeline, PNB Housing Finance plans to repay its high-cost borrowings and will ask its lenders to sweeten the lending rates as the firm is working consistently to improve profitability parameters besides enhancing the value proposition for the investors, its MD and CEO Hardayal Prasad said. PNB Housing Finance’s board has okayed to raise up to Rs 1,800 crore through a preferential or rights of shares. Of this, promoter Punjab National Bank (PNB) has already given its nod to infuse Rs 600 crore. Prasad said there is a large number of investors, of whom almost 84-85 per cent are institutional investors, who are all interested in the company. “But, we are also getting inquiries from many other players who feel that they have the ability to invest in the company directly. So, as far as the interest of our investors are concerned, it is high for the company and the franchise that has been built,” Prasad told PTI in an interview. He added that there is a strong retail book and second-highest deposit book also. “There is a massive amount of interest in the company.” - financial express

🍒 Credit cost for MFIs to rise to 6-7% in two years as loans remain unpaid : With about 12 per cent of their customers not having repaid loans till end of August, the credit costs of Micro Finance Institutions (MFIs) could rise to 6-7 per cent over two years from 1.5 per cent in FY20, according to Icra. The rating agency said 12 per cent of borrowers of 21 entities with collective assets under management (AUM) of around Rs 54,213 crore availed a complete moratorium during April-August 2020.Consequently, near-term delinquencies (30+ days past due) are expected to increase to double digits. They would remain at these levels for a few months as it will be difficult for such borrowers to clear their dues. However, the rise in credit costs could be lower at 6-7 per cent (spread over two years FY2021-FY2022; 1.5 per cent in FY2020). Entities with a higher share of such borrowers may face higher credit costs, said Supreeta Nijjar, Vice President and Sector Head, Financial Sector Ratings, ICRA. - Business Standard

🍒 PMC Bank trying to use the escape hatch used by tiny cooperative banks : Punjab and Maharashtra Co-operative Bank’s (PMC) proposal to convert deposits into equity is not a novel idea, but certainly the most visible one. Although not reported anywhere, every year depositors of one or two tiny cooperative banks undergo this fate. In most cases, deposits are converted into subordinated debts, to be serviced over at least 10 years, or the banks are merged with other cooperative banks and deposits beyond a certain amount are converted into equity with a deep discount. Both the options are done after getting consent from the depositors. The harassed depositors prefer the debt route as liquidating the equity is next to impossible. Besides, if the merged entity incurs loss, which is more often than not, then the equity holders have to bear the loss too. This erodes their deposits even further. But with a deposit base of more than Rs 11,600 crore, PMC is not a small cooperative bank. And therefore, PMC’s conversion to equity has attracted public attention. - Business Standard

🍒 Indian private banks shed Covid-19 woes, net profit rises by 159% : Indian private banks seem to have weathered the severe economic shocks inflicted by the Covid-19 pandemic, at least for now. Backed by a steady rise in net interest income (NII) and contraction in provisions, private banks posted 159 per cent growth (year-on-year) in net profit at Rs 18,814 crore in the second quarter (Q2) ended July-September 2020-21 (Q2FY21). While the asset quality held up during Q2, the real picture is masked by the Supreme Court’s (SC’s) directive that accounts not declared non-performing assets (NPAs) as of August 31 should not be classified as such until further orders. The NII in the September quarter rose 15 per cent to Rs 52,101 crore in Q2FY21, while provisions and contingencies declined 4.2 per cent to Rs 18,414, according to a Business Standard analysis of 17 listed private lenders.- Business Standard

🍒 SBI’s asset quality numbers warrant a closer look : Country’s largest lender, State Bank of India (SBI) has received applications for loan restructuring to the tune of Rs 6,495 crore in October, the bank said while announcing its second quarter results. Overall restructuring numbers could go up as customers have time till December to apply for the one-time loan recast for Covid-linked stressed assets. The total estimated slippages in Q2 (July-September) is Rs 14,388 crore, the bank said. But, if one includes the loans that are not tagged as bad following a recent interim Supreme Court order, the total fresh slippages in Q2 would stand at over Rs 17,144 crore. Overall gross NPAs also have stayed at elevated levels if one takes into account the portion of bad loans excluded under Supreme Court’s interim order. - moneycontrol.com

🍒 Gold recycling hits 8-year-high on record prices : High gold prices pushed the recycling of the yellow metal to an eight-year-high of 41 tonnes in the September quarter, with both consumers and some of the distressed jewellers recycling their inventory to meet immediate cash requirements. Average gold prices jumped 37 per cent in the September quarter to ₹45,640 per 10 grams, against ₹33,329 logged in the same period last year. In fact, prices jumped 65 per cent from ₹27,861 logged in 2018, according to the World Gold Council data. - Business Line

🍒 Gold prices remain flat at Rs 51,306 per 10 gram; silver falls by Rs 1,007 a kg : Gold prices were steady at Rs 51,306 per 10 gram in the Mumbai retail market on a sharp fall in rupee and weak global cues. The precious metal traded lower amid growing worries over the possibility of the contested US election outcome and firm dollar. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,996 plus 3 percent GST, while 24-carat 10 gram was Rs 51,306 plus GST. The 18-carat gold quoted at Rs 38,480 plus GST in the retail market. The gold/silver ratio currently stands at 83.77 to 1, which means the amount of silver required to buy one ounce of gold. Silver prices declined Rs 1,007 to Rs 61,243 per kg from its closing on November 3.

🍒 Sensex rallies 355 pts; Nifty reclaims 11,900 : Rising for the third straight session, the Sensex rallied 355 points on Wednesday following gains in Reliance Industries, Infosys and Kotak Bank amid a positive trend in global markets ahead of the outcome of the US presidential elections. After a volatile session, the 30-share BSE index ended 355.01 points or 0.88 per cent higher at 40,616.14. Similarly, the broader NSE Nifty climbed 95 points or 0.80 per cent to 11,908.50. IndusInd Bank was the top gainer in the Sensex pack, surging around 5 per cent, followed by Sun Pharma, Reliance Industries, Infosys, Kotak Bank and Tech Mahindra. On the other hand, HDFC, PowerGrid, Axis Bank, ICICI Bank, NTPC and L&T were among the laggards.

🍒 Rupee falls to over 2-month low of 74.66 amidst tight US vote : Most emerging market shares scored small gains while currencies were broadly weaker on hints of a tight race, sparking a bout of volatility across financial markets. The partially convertible rupee was at 74.66/67 per dollar at 0506 GMT versus its previous close of 74.40. The unit touched 74.78 earlier in the session, its weakest since August 24. Traders said they expect the rupee to weaken further with the unit having hit a low of 75.0550 in the overnight spot non-deliverable forwards market..

All the Best… Have a Good day

Today's Banking / Financial News at a Glance 03.11.2020

2020-11-03T01:20:00.002-08:00

🙏 Good Morning All....

☕ 03.11.2020: Today's Banking / Financial News at a Glance

🍒 PNB posts Q2 profit of ₹621 crore : Aided by lower provisioning for bad debts, PNB, on Monday, reported a standalone net profit of ₹621 crore for the second quarter ended September 30. This was more than double the net profit of ₹308 crore recorded in first quarter of this fiscal. It may be recalled that the country’s second-largest public sector bank had, from April 1, this year amalgamated two PSBs – Oriental Bank of Commerce and United Bank of India – with itself. For the second quarter ended September 30, 2019, PNB had recorded net profit of ₹507 crore. The latest Q2 performance is not comparable with the same quarter last fiscal in view of the three-way amalgamation from April 1 this year, PNB said in a filing with the stock exchanges. - Business Line

🍒 HDFC Q2 net profit down at ₹2,870 crore : Mortgage lender HDFC Ltd reported a 27.5 per cent decline in standalone net profit in the second quarter of the current fiscal at ₹2,870.12 crore, compared with ₹3,961.53 crore in the same period a year ago. “To facilitate a like-for-like comparison, after adjusting dividend, profit on sale of investments, fair value adjustments, net gains on loans assigned, charge for employee stock options and provisioning the adjusted profit before tax for the quarter ended September 30, 2020 is ₹ 3,366 crore compared to ₹ 2,646 crore in the previous year, reflecting a growth of 27per cent,” it said in a statement on Monday, adding that the profit numbers for the quarter ended September 30, 2020 are not directly comparable with that of the previous year. - Business Line

🍒 City Union Bank net slips to ₹158 cr in Q2 : Kumbakonam-headquartered City Union Bank’s profit after tax slipped to ₹158 crore for the quarter ended September 2020 when compared to the ₹194 crore clocked during the corresponding quarter of the earlier fiscal. The bank, in a statement, said that the profit before tax for the quarter was impacted on account of additional provision of ₹115 crore made towards Covid to meet future contingencies. The bank already made a provision of ₹225 cr for Covid-19 as on June 30, 2020; during the current quarter, with the additional provision of ₹115 crore, total provision towards Covid-19 at the end of the first half of the current fiscal has touched ₹340 crore. - Business Line

🍒 Karur Vysya Bank Q2 net profit jumps 81% to Rs 115 crore : Private sector Karur Vysya Bank (KVB) on Friday reported an 81.4 percent jump in its net profit at Rs 114.89 crore in the second quarter of FY 2020-21, helped by lower provisioning for bad loans. The south-based lender had posted a net profit of Rs 63.33 crore in the corresponding three months a year ago.Total income though fell to Rs 1,666.26 crore in the July-September period of FY21 as against Rs 1,815.24 crore in the same quarter of 2019-20, KVB said in a regulatory filing. - moneycontrol.

🍒 Centre extends Emergency Credit Line Guarantee Scheme till the end of November : The government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) by a month till November 30 until the entire Rs 3 lakh crore made available under the scheme is sanctioned, according to a finance ministry statement on Monday. Lending institutions under the scheme have sanctioned loans amounting to Rs 2.03 lakh crore to 60.67 lakh borrowers and disbursed loans totaling Rs 1.48 lakh crore as of date, it said. The decision was taken in view of the further easing of Covid-19 restrictions on various sectors of the economy and the expected rise in demand during the festive season, it said. - economic times

🍒 Covid stress: Banks confident provisions are good enough : Rising collection efficiencies helped by a rebound in economic activities and benign initial requests for restructuring have made banks increasingly confident that the provision they carry on their books should be good enough to deal with Covid related stress. Both private and public sector banks are confident that stress in their books will not go out of hand by the end of the fiscal as they have all increased their provision coverage ratio (PCR) to deal with any increased stress. However, analysts say that the real test for banks will come in the third and fourth quarters as the Supreme Court stay on classification of NPAs will be lifted and more clarity emerges on the restrcuturing requests to banks.- economic times

🍒 Aditya Puri appointed as a senior adviser in Asia for Carlyle Group : Global investment firm The Carlyle Group has announced that Aditya Puri, former CEO of India’s largest private sector bank, HDFC Bank, has been appointed as a senior advisor to Carlyle in Asia, said a statement issued today. Puri will advise the Carlyle team on investment opportunities across Asia. He will provide guidance on the evolving market landscape and new investment opportunities, while also advising the company’s investment professionals and portfolio management teams on building differentiated high quality businesses. - economic times

🍒 IDFC First Bank logs strong September quarter, expects restructuring at 4% of loan book : IDFC First Bank is factoring in total restructuring of about 4% of its loan book of Rs 1.06 lakh crore under the Covid-19 recast window, chief executive V Vaidyanathan told ET. The bank has received retail restructuring proposals worth Rs 200 crore through its online portal, while a few corporate restructuring requests are also under consideration, he added. “On our website, we have provided an end-to-end-restructuring journey for our retail customers, where we have received proposals worth Rs 200 crore, which is 0.4% of our customer base; some requests have come on the corporate side which are under consideration,” Vaidyanathan said. The restructuring window is open for corporates till December 31. According to a previous estimate by India Ratings, the banking system could restructure loans worth Rs 8.4 lakh crore due to the Covid-19 pandemic. - economic times

🍒 Bandhan Bank prunes Covid-related risk projections with better repayment collection : Bandhan Bank has lowered its Covid-related risk projections with repayment collection showing steady improvement over the last six months giving the lender confidence about further recovery and asset quality strength. The bank said it has made additional Covid-related provision of Rs 2100 crore covering 2.8% of its portfolio, and it might not need to top it up substantially going forward if the current repayment trend continues, bank chief executive Chandra Shekhar Ghosh told ET. During the initial days of the pandemic, the lender thought of creating an additional provision buffer of 3.5% of its loan book. At the end of September, it has Rs 76615 crore as loan outstanding including Rs 5000 crore of off-balance sheet exposure .- economic times

🍒 HSBC appoints new head of debt financing business in India : HSBC has elevated old hand Chetan Joshi as head of its debt financing business in India, according to sources. Joshi was previously managing director and head of the bank's debt capital markets business in which role he led the UK-headquartered lender to the position of the top-ranked arranger of foreign debt issuances from India. The bank is also said to have announced the appointment of Vinod Venkatesh in Joshi’s role. Joshi will also be overseeing the debt capital markets business in addition to taking added responsibilities for acquisition and leveraged finance, these sources said.. - economic times

🍒 RBI extends deadline for banks' compliance with new guidelines for existing current accounts : The Reserve Bank of India has given more time to banks to comply with the revised current account opening norms to ease their operational glitches. The regulator changed the rules to prevent the misuse of the current account facility and fund duversions. The new deadline is December 15 instead of November 5. RBI suggested that banks should not route drawal from term loans through current accounts. Since term loans are meant for specific purposes, the funds should be remitted directly to the supplier of goods and services.- economic times

🍒 ICICI Lombard gets CCI nod to acquire Bharti AXA’s non-life insurance business : The Competition Commission of India (CCI) has given its nod for the merger of Bharti AXA’s non-life insurance business with ICICI Lombard General Insurance, paving the way for creating the country’s third-largest non-life insurance company. “Commission approves acquisition of General Insurance Business of Bharti AXA @BhartiAXAGI by ICICI Lombard @ICICILombard”, the CCI tweeted on Monday.- Business Line

🍒 RBI to increase trading hours for various markets : The Reserve Bank of India (RBI) has decided to increase trading hours for various markets regulated by it by up to 90 minutes with effect from November 9. With the graded roll-back of the lockdown and easing of restrictions on movement of people and functioning of offices, it has been decided to restore trading hours for regulated markets in a phased manner, the central bank said in a statement. The timings of markets for call/notice/term money; Commercial Paper and Certificates of Deposit; Repo in Corporate Bonds; Government Securities; Foreign Currency (FCY)/Indian rupee (INR) Trades, including Forex Derivatives; and Rupee Interest Rate Derivatives, will be increased to 10 am to 3.30 pm from 10 am to 2 pm. - Business Line

🍒 ICICI Bank shares jump nearly 6 per cent as Q2 profit zooms to record high : Shares of ICICI Bank on Monday jumped nearly 6 per cent after the company reported an over four-fold jump in consolidated net profit for the September quarter. The stock gained 6.64 per cent to Rs 418.65 on the BSE. On the NSE, it jumped 6.59 per cent to Rs 418.50. . - Business Line

🍒 ‘Fresh corporate bond issuances to rise up to ₹8.2-lakh crore in FY21’ : Fresh corporate bond issuances are expected to rise to ₹8.0-8.2-lakh crore in FY21 from ₹6.55-lakh crore in FY20, as spreads on these bonds over government securities (G-Sec) of similar tenure are likely to remain narrow over the next few quarters, according to ICRA. The spreads on corporate bonds over G-Secs of similar tenure declined to pre-Covid levels by the end of Q2 (July-September) FY21, the credit rating agency said.- Business Line

🍒 PNB Housing Finance set to prune corporate loan book by Rs 1,500 cr : Mortgage lender PNB Housing Finance (PNB HFC) plans to reduce corporate loan book by Rs 1,500 crore by March 2021 and is going in for a second round of rationalisation. Hardayal Prasad, managing director (MD) and chief executive officer (CEO) said the company has built a strong balance sheet and will continue to rebalance its portfolio to build a robust retail franchise. There was a sell down and accelerated pre-payment of Rs 477 crore in the corporate book. "HFC remains steadfast in its strategy to bring down share of corporate book by end of the current fiscal year," Dayal said in an analysts’ call. - Business Standard

🍒 10-year G-Sec yields will average 6.2% by March 2021: Crisil : Credit rating agency Crisil believes that 10-year Government Security (G-Sec) yields will average 6.2 per cent by March 2021 versus its previous estimate of 6.5 per cent. The agency reasoned that the Reserve Bank of India (RBI) has looked through the current spurt in inflation and stated its commitment to stay accommodative and provide liquidity to the system. In this regard, Crisil observed that the central bank increased purchase of G-secs by conducting Open Market Operations (OMOs), Operation Twists (OTs), introduction of OMOs for State G-secs, and increase in banks’ limits for statutory liquidity ratio (SLR) securities under held-to-maturity (HTM) to ensure that the demand for G-secs remains strong. - Business Line

🍒 Paytm Postpaid targets 15 million users by end March 2021 : Paytm, a leading digital financial services provider, on Monday said it is aiming a total of 15 million users for its Postpaid micro credit service by March 20-21. This would be more than double the current customer base of 7 million for its Postpaid service. With Paytm Postpaid, users can avail instant credit for their Paytm purchases, which they can repay next month. Paytm Postpaid is offered in partnership with two leading NBFCs with an instant credit line for various payments to Paytm App users. - Business Line

🍒 PhonePe hits 250 mn user mark, registers 925 mn transactions in October : Flipkart-owned fintech platform PhonePe on Monday said it has crossed the 250 million registered user milestone. The company reported over 100 million monthly active users (MAU) and 2.3 billion app sessions in October, a statement said. “PhonePe had a record month in October, processing 925 million transactions – its highest so far – with an annual TPV (total payment volume) run rate of USD 277 billion. PhonePe also processed 835 million UPI transactions in October, for a market leading share of over 40 per cent,” it added. Sameer Nigam, CEO and founder of PhonePe, said the company has set a target of crossing 500 million registered users by December 2022. - financial express

🍒 Four ex-RBI governors including Raghuram Rajan, YV Reddy warn of NPAs delaying recovery : Domestic banks, which have the highest bad loan pile in the world, pose a huge risk to the recovery of the pandemic-ravaged economy unless the government rescues them, four former Reserve Bank governors warn in a soon-to-be-released book. While Raghuram Rajan blames excessive investments by companies and the exuberance of bankers, coupled with inability to act fast as the prime causes for NPAs (Non-Performing Assets), Yaga Venugopal Reddy opines that the bad loans are not only a problem but a consequence of other problems. Duvvuri Subbarao sees NPAs as a big and real problem that needs to be contained, and Chakravarthy Rangarajan blames the lingering real sector problems, partly policy-driven most recently seen with demonetisation, aggravated the crisis. "Yes, the bad loan problem is big and real," says Subbarao, who was the governor for five years from September 2008 to September 2013, in the book by senior journalist Tamal Bandyopadhyay titled 'Pandemonium: The Great Indian Banking Tragedy'. - moneycontrol.

🍒 BoB, ICICI Bank announce fees for certain cash transactions; more may follow : Some of the large commercial banks have introduced or tweaked convenience fees on certain cash transactions from November 1. Two banks - Bank of Baroda (BoB) and ICICI Bank - have made announcements that essentially say that they will now levy a fee or hike existing fees that will be charged to customers for certain type of cash transactions. BoB has said it will levy a higher cash handling charges for cash transactions beyond certain limits - a minimum Rs 50 and a maximum Rs 20,000, the bank said on its website. Earlier, BoB, used to charge a minimum of Rs 10 and maximum of Rs 10,000 for certain kind of cash deposits. Similarly, ICICI Bank too has said it will charge a convenience fee of Rs 50 per transaction from customers for cash deposits at ATMs during non-business hours and bank holidays. Customers will be charged for every such transaction done on bank holidays and between 6:00 pm and 8:00 am on working days. - moneycontrol.

🍒 Gold prices back above Rs 51,000/10 gm on safe haven buying ahead of US election, silver gains Rs 1,941/kg : Gold prices rose by Rs 197 to Rs 51,037 per 10 gram in the Mumbai retail market on the weaker rupee and positive global cues. The precious metal was trading firm on safe-haven buying ahead of the US Presidential election on November 3. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,750 plus 3 percent GST, while 24-carat 10 gram was Rs 51,037 plus GST. The 18-carat gold quoted at Rs 38,278 plus GST in the retail market. Silver prices jumped Rs 1,941 to Rs 61,867 per kg from its closing on October 30.

🍒 Rupee slumps 32 paise to close at 74.42 against US dollar : The rupee depreciated 32 paise and settled at 74.42 (provisional) against the US dollar on November 2 tracking strong American currency amid global risk aversion. The local unit opened at 74.40 at the interbank forex market, then lost further ground and finally closed at 74.42 against the greenback, down 32 paise over its last close.

🍒 Sensex ends 144 pts higher; banking, financial stocks sparkle : Equity benchmark Sensex ended 144 points higher on Monday, tracking strong buying sentiment in financial stocks amid positive cues from global markets. After gyrating 633.11 points in a choppy session, the 30-share BSE index settled 143.51 points or 0.36 per cent higher at 39,757.58.Similarly, the broader NSE Nifty advanced 26.75 points or 0.23 per cent to 11,669.15.IndusInd Bank was the top gainer in the Sensex pack, rallying around 7 per cent, followed by ICICI Bank, Axis Bank, HDFC, Bharti Airtel, SBI, Bajaj Finance and HDFC Bank.On the other hand, Reliance Industries (RIL) was the top laggard, crashing over 8 per cent. HCL Tech, TCS, Tata Steel, Asian Paints, Bajaj Auto, Maruti and UltraTech Cement also ended in the red..

🙏 “All the Best… Have a Good day

Kadhal kavithaigal

2020-11-01T18:56:00.002-08:00

மனதை இரும்பாக்கி

கொண்டாலும்
இழுக்கின்றதே
உன்திசை நோக்கி
உன் நினைவும்
என்ன காந்தமா

Amma | உன் அம்மா யார்?

2020-10-28T08:51:00.002-07:00

ஒரு பெண் இளமை முதல் காத்து மறைத்த பெண்மையை தன் கணவனுக்குப்பின் அறியாதவர் முன்னிலையில் தன்னிலை மறந்து ஆடை விளக்குவது

பிரசவத்தின் போதே.

அந்த நொடி மரணத்தின் வாயிலில் #துடிப்பதால் தன் ஆடை விளகுவது கூட அறியா நிலை அவளுக்கு.

துடிதுடிப்பாள்.

#உடல்_வதைப்பாள்

#தசை_கிழிப்பாள்

உன்னை குறை இன்றி பெற்றெடுப்பதற்காக.

தன் மானத்தை மறந்து வலியை மறந்து உன் முகம் பார்த்ததும் பூரிப்பில் சிரிப்பாள். நீ பசித்து துடிக்கும் போது தன் சுற்றம் மறந்து பசி தீர்க்க மாராப்பை திறந்தவள் அவள்.

அவளின் தன் மானத்தை இழந்து அதில் பிறந்த நீ என்பதை மறவாதே!!!!

Nila | Nizhal | நிலா vs நிழல்

2020-10-24T09:37:00.006-07:00

நிலவின் மேல் நிலவின் நிழல்... !

இரவு நேர கடற்கரையில் என்னவளின் முகம்.... !!

Vadivelu version Kavithai Tamil Kathal Kavithai இது புது டிரெண்ட்

2020-10-20T20:23:00.001-07:00

கவிதை களம் Vadivelu Version

Today's Banking / Financial News at a Glance 10.10.2020

2020-10-09T23:53:00.004-07:00

☕ 10.10.2020: Today's Banking / Financial News at a Glance

🍒 RBI delivers without a policy rate cut : As widely expected, the Monetary Policy Committee maintained status quo on the key policy rate, with inflation rate holding above the RBI’s comfort level. But the MPC brought pre-Diwali cheer by giving a ‘whatever it takes’ assurance to revive growth, as it looked at the “current inflation hump as transient”. The 5:1 vote of the six-member MPC in favour of a continued accommodative stance “at least during the current financial year and into the next financial year”, also offered markets an extended comfort on rates and liquidity. - Business Line

🍒 Bankers' reaction to RBI keeping status quo on rates, maintaining 'accommodative' stance : The six-member Monetary Policy Committee (MPC) on Friday unanimously voted for keeping the policy repo rate unchanged as retail inflation has been above its upper tolerance level of 6 per cent for several months. The Committee decided to continue with the accommodative stance as long as necessary – at least during the current financial year and into the next financial year – to revive growth on a durable basis and mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward. To provide impetus towards reviving the economy, the Reserve Bank of India (RBI) announced specific additional measures to enhance liquidity support for financial markets; provide regulatory support to improve the flow of credit to specific sectors, among others.- Business Line

🍒 RBI policy overall positive, growth-oriented, say experts : Financial sector participants on Friday said RBI's decision to keep the key repo rate unchanged is an accommodative approach to manage inflation while keeping growth as target, amid the current economic conditions. The Monetary Policy Committee (MPC) evaluated domestic and global macroeconomic and financial conditions and voted unanimously to leave the policy repo rate unchanged at 4 per cent, RBI Governor Shaktikanta Das said in his policy statement for the bi-monthly monetary policy review. "It also decided to continue with the accommodative stance of monetary policy as long as necessary - at least during the current financial year and into the next year - to revive growth on a durable basis and mitigate the impact of COVID-19, while ensuring that inflation remains within the target going forward," Das said. - economic times

🍒 SBI urges SC to dismiss plea against wind up UBHL : The State Bank of India (SBI) on Thursday urged the Supreme Court to dismiss a plea by Vijay Mallya’s firm United Breweries Holdings (UBHL) against its winding up for failure to pay admitted liabilities to creditors as per the corporate guarantees extended to the defunct Kingfisher Airlines. SBI senior counsel Mukul Rohtagi told a bench led by Justice UU Lalit that Mallya is facing bankruptcy proceedings in the UK, besides extradition proceedings. “Appeals should be dismissed as Mallya is behind all this and is playing ducks and graces,” he said, requesting the apex court to give it some more time to seek “other instructions and also find about the ongoing proceedings.” - Financial express

🍒 RBI raises retail exposure threshold for banks : The Reserve Bank of India (RBI) has upped the absolute threshold limit for maximum aggregated retail exposure of banks to one counterparty to ₹7.5 crore from ₹5 crore. This move is aimed at facilitating higher credit flow to the retail segment, which mainly consists of individuals and small businesses (with turnover of up to ₹50 crore). This increased exposure limit is in respect of all fresh as well as incremental qualifying exposures, and is in harmonisation with the Basel guidelines. “This measure is expected to expand credit flow to small businesses,” the RBI said.- Business Line

🍒 HDFC Bank takes festive offers to rural India to pump up credit growth : Private lender HDFC Bank has taken its “festive treats” offering to its semi-urban and rural markets in a bid to prop up credit growth. The bank will use its network of 1.2 lakh village level entrepreneurs (VLEs) and tap over 3,000 plus hyperlocal merchants and traders to offer customized deals at the regional level. According to the lender, customers will get special deals on all banking products from loans to bank accounts. This includes home loans, 2-wheeler loans, car loans, tractor loans, gold loans or business growth loans. Customers can avail of flat 5% to 15% off in various categories of products.- economic times

🍒 RBI’s move to rationalize home loan risk weightage to support higher lending : The Reserve Bank of India’s decision to rationalize the risk weights on home loans and link them to Loan-to-Value (LTV) ratio is expected to bolster the real estate sector with higher lending, property developers said. Until now, the risk was linked to both size of the home loan and loan to value and the move to link it to only the latter is likely to help lenders on the capital adequacy front enabling them to provide more loans. “The decision to rationalise the risk weights on home loans and link them to Loan to value ratios only will give a boost to the real estate sector. Particularly this step would benefit borrowers of higher value loans. It would ensure that more credit is available to borrowers,” said Niranjan Hiranandani, President (National) NAREDCO. “This move is a much appreciated step recognising the role of the real estate sector in generating employment and economic activity.” The decision, according to property developers, has come at the right time and will help projects in all segments and price points. - economic times

🍒 Relief to exporters: RBI discontinues automatic caution-listing system : The Reserve Bank of India on Friday announced discontinuing the system-based automatic caution-listing of exporters, a move aimed at providing flexibility to exporters in terms of realisation of export proceeds. Exports have been adversely impacted by the pandemic-related contraction in external demand, RBI Governor Shaktikanta Das said during a virtual press conference after the meeting of the Monetary Policy Committee. "In this environment, it is crucial to provide flexibility to exporters in the realisation of export proceeds and to empower them to negotiate better terms with overseas buyers," he said.- economic times

🍒 RTGS to be available 24x7x365 from Dec 2020 : The Reserve Bank of India (RBI) in its Statement on Development and Regulatory Policies has announced that the money transfer facility, RTGS, will be available round the clock, 24 hours a day, 7 days a week from December 2020. Under the current rules, the transfers can be made between 7 AM and 6 PM on all working days except for the second and fourth Saturday of the month and on Sundays. The announcement comes after the RBI made the NEFT facility available 24X7 from December 16, 2019. In its statement the central bank said, "In December 2019, the National Electronic Funds Transfer (NEFT) system was made available on a 24x7x365 basis and the system has been operating smoothly since then. The large-value RTGS system is currently available for customers from 7.00 am to 6.00 pm on all working days of a week (except 2nd and 4th Saturdays of the month). - economic times

🍒 Digital Apnayen campaign gives further push to digital payment adoption : The Digital Apnayen Campaign, which was rolled out on August 15 to encourage customers to use digital banking channels, has propelled digital payment adoption with banks having on-boarded 1.58 crore customers in less than two months since launch, the Finance Ministry said on Friday. It has also resulted in deployment of 50,000 Point of Sales (PoS) terminals, over three lakh QR codes, and 18,000 BHIM Aadhaar pay devices in just 45 days, the Department of Financial Services tweeted on Friday. This campaign was launched under the aegis of the government’s Digital India initiative. .- Business Line

🍒 RBI expects real GDP to fall by 9.5% : India’s recovery is likely to be a three-speed recovery predominantly, with individual sectors showing varying paces depending on sector-specific realities, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. For the year 2020-21 as a whole, the central bank expects real GDP to decline by 9.5 per cent, with risks tilted to the downside: (-)9.8 per cent in Q2 (July-September) 2020-21; (-)5.6 per cent in Q3 (October-December); and 0.5 per cent in Q4 (January-March 2021). Real GDP growth for Q1 (April-June) 2021-22 will see a rebound, with the RBI placing it at 20.6 per cent. “There is currently an animated debate about the shape of the recovery. Will it be V, U, L, or W? More recently, there has also been talk of a K-shaped recovery. “In my view, it is likely to predominantly be a three-speed recovery, with individual sectors showing varying paces, depending on sector-specific realities,” said the Governor in his bi-monthly monetary policy address. - Business Line

🍒 Co-origination scheme expanded to include all NBFCs, HFCs : All non-banking financial companies, including housing finance companies, will now be included in the co-origination scheme as part of efforts for greater financial inclusion and give more operational flexibility to lending institutions. The move is also expected to give a boost to housing finance. “Based on the feedback received from the stakeholders to better leverage the respective comparative advantages of the banks and NBFCs in a collaborative effort, and to improve the flow of credit to the unserved and underserved sector of the economy, it has been decided to extend the scheme to all NBFCs (including HFCs) to make all priority sector loans eligible for the scheme and give greater operational flexibility to the lending institutions, while requiring them to conform to the regulatory guidelines on outsourcing, KYC,” said the RBI’s Statement on Developmental and Regulatory Policies. - Business Line

🍒 With ‘slog overs’ and ‘strike form’, RBI chief describes state of play : With the IPL season in full swing, Reserve Bank of India Governor Shaktikanta Das on Friday chose cricketing terminologies to suggest that some of the worst-hit sectors of the economy can use “slog overs” to rescue the “innings”. “Open their accounts” and “strike form” also found a place in the Governor’s statement as he shared his views on the pandemic-hit economy after the Monetary Policy Committee (MPC) decided to leave key benchmark rate unchanged and maintain an accommodative stance. Trying to explain the process of recovery for the Covid-19-hit economy, Das said, “In my view, it is likely to predominantly be a three-speed recovery, with individual sectors showing varying paces, depending on sector-specific realities.” He added that sectors that would “open their accounts” the earliest are expected to be those that have shown resilience in the face of the pandemic and are also labour-intensive. - Business Line

🍒 CBI books HDIL promoters Wadhawans for Rs 200-crore loan fraud in YES Bank : The CBI has booked HDIL promoters Rakesh Wadhawan and Sarang Wadhawan, along with other directors and auditors in the firm, in an alleged Rs 200-crore loan fraud in Yes Bank involving Mack Star, officials said Friday. After registering the case, the CBI searched the residence of Rakesh Wadhawan and his son Sarang in Mumbai, they said. The agency also carried out searches at nine other premises in Mumbai, including two offices of HDIL, they said. It is alleged that Yes Bank had given loan to Mack Star in which HDIL was a minority shareholder. - Business Line

🍒 Cheaper big-ticket home loans to give realty sector a boost : Home loans over ₹75 lakh may get cheaper, with the RBI’s move to link risk weights for home loans with the loan-to-value (LTV) ratio. The LTV is the ratio of the loan amount to the value of the property.In a move that could reduce banks’ capital requirement and ease rates to boost demand, the RBI has rationalised risk-weights for new housing loans sanctioned up to March 31, 2022. Such loans will now attract a risk weight of 35 per cent where the LTV is less than or equal to 80 per cent, and a risk weight of 50 per cent where the LTV is more than 80 per cent but less than or equal to 90 per cent.The measure is expected to particularly give relief to big ticket loans above ₹75 lakh.According to an SBI report, these loans constitute around 12-15 per cent of the total housing loan portfolio, where the risk weight is higher.Assuming a growth of 20 per cent for the next 18 months, this could reduce the capital requirement of around ₹500 crore, which can enable banks to ease rates to boost demand, the report said. Punjab National Bank MD & CEO CH. SS Mallikarjuna Rao said that the move will give impetus for high value houses. - Business Line

🍒 PE investors, foreign banks taking majority stakes may rescue old pvt banks : For the past two weeks, old private banks — those that existed during bank nationalisation — have hit the headlines for wrong reasons. Whether Lakshmi Vilas Bank (LVB) or Dhanlaxmi Bank, issues around corporate governance, mismanagement, differences between promoter groups and even the effectiveness of shareholder activism were being raised — which ultimately question whether the Reserve Bank of India (RBI) has monitored these banks adequately. Several of these banks were placed under the Prompt Corrective Action (PCA) framework of additional regulator scrutiny but this does not seem to have stemmed the rot (see table). “Placing banks under PCA alone would not do good; there needs to be scrutiny on what went wrong and a viable road map for the banks to exit PCA,” said Abizer Diwanji, partner and national leader-financial services, EY India. In effect, he is advocating that banks under distress be treated differently so that an effective rescue plan can be worked out. - Business Standard

🍒 CARE Ratings downgrades LVB debt instruments over plunge in net worth : CARE Ratings has downgraded Lakshmi Vilas Bank (LVB)'s tier-II bonds totalling Rs 618.70 crore, citing a sharp decline in net worth caused by losses in FY20 and in Q1 of FY21. The development comes two days after Brickwork Ratings downgraded the lender's debt to 'BWR B+'/ Credit Watch with negative implications for the lender's long-term bonds of Rs 50.50 crore, and a day after LVB received an indicative non-binding offer from the Clix Group. LVB has reported a capital adequacy ratio (CAR) and Tier-I CAR of 0.17 per cent and -1.83 per cent (negative), respectively, as on June 30, 2020 (1.12 per cent and -0.88 per cent as March 31, 2020) as against the regulatory requirement of 10.875 per cent and 8.875 per cent. - Business Standard

🍒 Series-VII of the sovereign gold bond opens for subscription from October 12 : The Series-VII for Sovereign Gold Bonds 2020-21 will be open for the period October 12-16 with a settlement date on October 20. The issue price of the bond during the subscription period would be ₹5,051 per gram, an official release said. The Government, in consultation with the Reserve Bank of India, has decided to allow a discount of ₹50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be ₹5,001 per gram of gold, the release added. - Business Line

🍒 Forex reserves surge to life-time high of $545.638 billion : The country’s foreign exchange reserves rose by USD 3.618 billion to reach a life-time high of USD 545.638 billion in the week ended October 2, 2020, the RBI data showed. In the previous week ended September 25, the reserves had declined by USD 3.017 billion to USD 542.021 billion. During the reporting week, the increase in forex kitty was on account of a rise in foreign currency assets (FCA), a major component of the overall reserves. FCA increased by USD 3.104 billion to USD 503.046 billion in the week ended October 2, the data showed.

🍒 Rupee settles 8 paise higher at 73.16 : The rupee has settled 8 paise higher at 73.16 against the US dollar on Friday as the Reserve Bank of India decided to keep the benchmark interest rate unchanged. At the interbank forex market, the rupee opened at 73.21 against the American currency, gained some ground to touch an intraday highe of 73.09, but gave up some of its gains towards close. On Thursday, the rupee closed at 73.24 against the US dollar.

🍒 Shares of Central Bank of India in Stock Mar8et : 64% of moneycontrol users recommend buying Central Bank of India shares. In BSE, shares closed at Rs.12.45 against Prev Close Rs.12.65 and in NSE, shares closed at Rs.12.45 against Prev Close Rs.12.60...

All the Best… Have a Good day.

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Today's Banking / Financial News at a Glance | 26.09.2020

2020-09-25T20:54:00.006-07:00

26.09.2020: Today's Banking / Financial News at a Glance

🍒 Bank credit up 5.26 per cent, deposits by 11.98 per cent: RBI data : Bank credit grew 5.26 per cent to Rs 102.24 lakh crore while deposits rose 11.98 per cent to Rs 142.48 lakh crore in the fortnight ended September 11, according to RBI data. In the fortnight ended September 13, 2019, bank credit was at Rs 97.13 lakh crore and deposits at Rs 127.22 lakh crore. In the previous fortnight ended September 11, 2020, bank credit had grown by 5.49 per cent to Rs 102.11 lakh crore while deposits at 10.92 per cent to Rs 141.76 lakh crore. On a year-on-year (y-o-y) basis, non-food bank credit grew at 6.7 per cent in July as against a growth of 11.4 per cent in the same month of the last year, according to the data on sectoral deployment of bank credit for July 2020, released recently by the RBI. Growth in loans to industry slowed to 0.8 per cent in July as compared with 6.1 per cent growth in July 2019, the data showed. - economic times

🍒 PSU banks on-board 1 crore account holders on digital payment modes in a month : The finance ministry on Friday said that public sector banks (PSBs) have on-boarded about one crore customers on digital payment modes in just one month of the launch of 'Digital Apnayen' campaign. The campaign, aimed at encouraging customers to use digital banking channels, was launched on August 15 under the aegis of the government's Digital India initiative. The Department of Financial Services (DFS) said in a tweet, "DFS's #DigitalApnayen campaign gets off to a roaring start! PSBs on-board 1 Cr A/c holders on digital payment modes in 31 days of campaign launch. Committed to transform India into a digitally empowered society!" Under the campaign, banks were asked to on-board a minimum 100 new customers including merchants and financial inclusion account holders by each branch on digital payment mode. - economic times

🍒 Canara Bank eyes ₹2,000-cr QIP : State-owned Canara Bank on Friday said its board has approved raising ₹2,000 crore through qualified institutional placement (QIP). “...the board of the bank at its meeting held on September 25 decided to raise additional equity share capital amounting up to ₹2,000 crore (including securities premium), through QIP route...,” it said in a regulatory filing. The QIP be would be within the overall maximum limit of board-approved capital raising plan for 2020-21 of ₹5,000 crore equity capital and is subject to market conditions and necessary approvals, the statement further said. Canara Bank scrip gained 4.74 per cent to close at ₹87.20 apiece on BSE. - - Business Line

🍒 SBI relocates financial inclusion, micro market division to Delhi for better synergy with govt : In a bid to promote financial inclusion and better coordination with the government, State Bank of India (SBI) on Friday relocated the financial inclusion and micro market (FI&MM) division from its Mumbai corporate office to the national capital. The FI&MM division takes care of 8,000 rural and semi-urban branches catering to bottom of the pyramid segment and 64,000 customer service points (CSPs) managed by business correspondents and 58,000 ATMs. Besides, the division is responsible for running all the government-sponsored schemes, including direct benefits trasfer like PM-KISAN, in coordination with various departments and ministries. According to SBI Chairman Rajnish Kumar, the focus of the Delhi-based division will be community service, financial inclusion and running government-sponsored schemes. The new office of the vertical inaugurated by the SBI chairman will be headed by Deputy Managing Director Sanjeev Nautiyal. - economic times

🍒 HDFC Bank launches warehouse commodity finance app : Private sector lender HDFC Bank on Friday launched a Warehouse Commodity Finance App. “This will enable customers in drawing down and managing the loan against pledge of commodities online without physical intervention or multiple visits to a bank branch. This, in turn, will bring in enhanced efficiencies and time savings for the agri value chain,” it said in a statement, adding that it will greatly benefit agri processors, traders and farmers who are primary beneficiaries of warehouse receipt loans. - Business Line

🍒 IRDAI identifies LIC, GIC, New India Assurance systemically important insurers : Regulator IRDAI has identified LIC, GIC and New India Assurance as domestic systemically important insurers (D-SIIs) and subsequently decided to subject them to enhanced regulatory supervision. The three insurers have also been asked to raise the level of corporate governance, identify all relevant risks and promote a sound risk management culture, the Insurance Regulator and Development Authority of India (IRDAI) said in a statement. “D-SIIs will also be subjected to enhanced regulatory supervision,” it added. - Business Line

🍒 EOW arrests two officials of Lakshmi Vilas Bank for misappropriation of Religare Finvest FDs " Two Lakshmi Vilas Bank (LVB) officials were arrested on Thursday by a Delhi Police team for their alleged role in squaring off Rs 791-crore worth of Religare Finvest (RFL) fixed deposits against what the company described as unrelated loans from the lender. The first information report (FIR) was registered in September last year by RFL for alleged criminal breach of trust and criminal conspiracy against LVB and two firms -- RHC Holdings and Ranchem. The two firms belong to Malvinder Singh and Shivinder Singh, the erstwhile promoters of Religare. Malvinder and Shivinder are in judicial custody in connection with another case. LVB and RFL did not respond to ET queries.- economic times

🍒 Axis Bank partners with Bayer's better life farming (BLF) initiative in India : Life sciences firm Bayer on Friday said it has partnered with private sector lender Axis Bank for its better life farming (BLF) initiative in India to provide enhanced and holistic financial solutions to smallholder farmers and rural farming communities. Through the partnership, Axis Bank will offer end-to-end financial solutions and services such as affordably priced loans, deposits, withdrawals and payments, Bayer said in a statement. Digital financial solutions and doorstep delivery of these services will be part of the bank's offering to ensure convenient and hassle-free transactions. These solutions will be offered through Bayer's BLF centres, owned and operated either by a farmer producer organisation (FPO), federation, agri-graduate or a local farmer or entrepreneur. - economic times

🍒 States ping banks, payment companies to adopt contactless solutions : Across India, state transport authorities are inviting banks, fintech companies, card networks and payment service providers to replace their traditional ticketing systems with contactless solutions. The move is aimed at aligning with the latest social distancing and hygiene norms in light of the Covid-19 outbreak.Uttar Pradesh, Gujarat and Rajasthan transport bodies have issued tenders for contract, calling for bids from banks and digital service providers to help scale their technology requirements to offer contactless ticketing and payment solutions in bus fleets. ET has reviewed these Request for Proposal (RFP) documents.- economic times

🍒 Google Pay denies sharing India users' data with third parties : Google on Friday said Google Pay does not share customer transaction data with any third party outside the payments flow. The clarification from Google came after reports cited the company's submission to the Delhi High Court saying it is allowed to share customers transaction data with third parties with the prior permission of NPCI and payment service providing (PSP) banks. "This is to clarify that press reports on the basis of the affidavit filed by Google before the Delhi High Court, do not represent the complete facts," a Google spokesperson said on Friday. The spokesperson added that Google Pay is in full compliance with Unified Payment Interface (UPI) procedural guidelines, issued by the National Payments Corporation of India (NPCI) and the applicable laws. "...and does not share customer transaction data with any third party outside the payments flow," the spokesperson further said.- economic times

🍒 Vakrangee gets RBI nod to set up Bharat Bill Payment unit : Vakrangee Ltd on Friday said the Reserve Bank has granted in-principle approval to set up Bharat Bill Payment Operating Unit (BBPOU) to handle payment services related to bills. Vakrangee (VL) has received in-principle authorisation to set up and operate BBPOU under the Payment and Settlement Systems Act, 2007 from the Reserve Bank of India (RBI), it said in a release. The company offers banking, insurance, money transfer services, e-commerce, e-governance and other digital services on behalf of its partner banks, insurers, government agencies, e-commerce players among others through its branches mostly located in rural and semi-urban areas. "Vakrangee can now directly handle payment and aggregation of payment services relating to bills under the scope of BBPS (Bharat Bill Payment System)," the company said. - economic times

🍒 Fino Payments Bank launches contactless payments for mass transport : Fino Payments Bank along with fintech partners has introduced NFC-based contactless payments solution for mass transit systems, especially state bus transport services in India. “Buses run by state road transport corporations are the most preferred means of travel for majority of people in rural and semi-urban areas where cash is used to purchase tickets. Fino, which has over 80 per cent of its banking network of 2.75 lakh points in villages, aims to tap the opportunity to digitise cash used in mass transit systems,” it said in a statement.- Business Line

🍒 Axis Bank to provide affordable loans via Bayer’s Better Life Farming initiative : Axis Bank has joined Bayer’s Better Life Farming initiative in India to provide holistic financial solutions to smallholder farmers and rural farming communities. Through the partnership, Axis Bank will offer a wide range of financial solutions and services such as affordable loans, deposits, withdrawals and payments. Digital financial solutions and doorstep delivery of these services will be part of the bank’s offering to ensure convenient and hassle-free transactions. These solutions will be offered through Bayer’s Better Life Farming centres, which are owned and operated either by a farmer producer organisation, federation, agri-graduate or a local farmer/entrepreneur.- Business Line

🍒 Consumer demand seen inching up to pre-Covid levels : Six months after the novel coronavirus-led lockdown and economic turmoil, consumer demand seems to be making some kind of a comeback, with lending institutions reporting an uptick in spending and even demand for low-ticket home loans. “There has been revival of some amount of demand, and spending has gone back – if not fully – to the pre-Covid level of at least to 80 per cent to 90 per cent. This is across the country and segments,” said a senior banker, adding that some of this may be pent-up demand. Banks have also been reporting more enquiries for personal, home and car loans, although a full recovery in demand has still not returned, he further said. “In terms of demand, we are close to 90 per cent in low-income and affordable housing. But in the overall housing sector, demand is 60 per cent of pre-Covid level. Last month, we did over 90 per cent plus of last year’s performance,” said Deo Shankar Tripathi, Managing Director and CEO, Aadhar Housing Finance.- Business Line

🍒 Citigroup says switch from European stocks to emerging markets : Investors should rotate out of European equities into their emerging market counterparts thanks to a divergence in the economic trends underlying the two asset classes, according to Citigroup Inc. The firm’s gauge of economic surprises is indicating a pattern disappointment in Europe, while remaining robust in emerging markets, wrote strategists including Jeremy Hale in an asset allocation note on Thursday. Meantime, expectations for European earnings growth are the highest among developed markets and may be at risk of declining, they said. “We think it makes sense to trim some developed-market-specific risk at a time where near-term probabilities are skewed to some regional economic surprise indexes turning negative again, led by Europe,” they wrote. “In equities, we remain slightly overweight overall, but recommend rotating out of European stocks and into EM given relative data trends.” - Business Line

🍒 Loan fraud cases sharply fall in 2019-20; SBI registers highest improvement but this bank suffers : The cases related to bank loan frauds have significantly decreased in the financial year 2019-20 even as the bank credit has increased on-year. There has been a steep reduction in the occurrence of bank frauds, with the amount involved in loan-related frauds declining steeply to 0.15 per cent of total advances of PSU banks in FY 2019-20. The number of loan-related frauds also fell to 292 in the last fiscal year, Anurag Thakur, MoS, Ministry of Finance, said in a reply to a question in Lok Sabha. It is to be noted that in the fiscal year 2018-19, the State Bank of India alone dealt with 259 cases related to loan fraud. India’s largest bank SBI saw the largest reduction in the number of cases related to loan fraud. After 284 cases in FY18 and 259 cases in FY19, the number of cases rolled down to a mere 48 in FY20. Cases in Syndicate Bank also fell from 138 in FY18, to 59 in FY19, and further to 20 in the last fiscal. However, UCO Bank and Punjab and Sind Bank saw a sudden uptick in the cases related to loan fraud. - financial express

🍒 Forex reserves touch lifetime high at $545 bn; bank deposit rises faster than last year, shows RBI : India’s foreign exchange reserves surged to a lifetime high of $545.038 billion in the week ended September 18. The week saw a rise of $3.378 billion in forex reserves, according to the weekly publication of RBI. The reserves had fallen by $353 million to $541.660 billion in the previous week. A rise of $3.943 billion to $501.464 billion in foreign currency assets is mainly attributed to the rise in overall forex reserves. Foreign Currency Assets (FCA) are the most important component of the RBI’s foreign exchange reserve and include assets like US Treasury Bills bought by the RBI using foreign currencies. However, on the other hand, the gold reserves fell by $580 million in the week. - financial express

🍒 Yes Bank: Sebi slaps Rs 1 crore fine on Rana Kapoor for disclosure lapses : Markets regulator Sebi on Friday imposed a penalty of Rs 1 crore on Rana Kapoor, former MD and CEO of Yes Bank, for not making disclosures about Morgan Credit’s transaction. By not disclosing about the transaction to Yes Bank’s board of directors, Kapoor has created an opaque layer between him and stakeholders, Sebi said in an order. Morgan Credits, which was an unlisted promoter entity of Yes Bank, raised Rs 950 crore from Reliance Mutual Fund, now Nippon India Mutual Fund, through unlisted Zero Coupon Non-Convertible Debentures (ZCNCDs) in April 2018. Kapoor, who was also the promoter of Yes Bank, entered into an agreement as a ‘guarantor’ with Morgan and Milestone Trusteeship Services with respect to the transaction through a trust deed. Kapoor being a ‘guarantor’ of the agreement has provided “personal guarantee” for the obligations of Morgan to the extent of Rs 410 crore and provided his shares in the company as a security for the outstanding amounts equal to Rs 820 crore, Sebi noted.- financial express

🍒 Sensex snaps 6-day losing streak, rallies 835 points to reclaim 37k-mark : Snapping its six-day falling streak, equity benchmark Sensex rallied 835 points on Friday to reclaim the 37,000-mark on across-the-board buying amid mixed global cues.

The 30-share BSE index ended 835.06 points or 2.28 per cent higher at 37,388.66. Similarly, the NSE Nifty rose 244.70 points or 2.26 per cent to finish at 11,050.25. All Sensex components ended in green, with Bajaj Finserv, HCL Tech, Bharti Airtel, IndusInd Bank, L&T, TCS, ONGC and ICICI Bank, Bajaj Finance and SBI gaining up to 6.64 per cent.

🍒 Gold prices today: Yellow metal steady at Rs 49,846/10 gm, down 3.44% this week; silver soars by Rs 1,006/kg : Gold prices were steady at Rs 49,846 per 10 gram in the Mumbai retail market as the dollar shed its gains on stimulus hope. The precious metal has lost Rs 1,774, or 3.44 percent, this week in the domestic market. Democrats in the House of Representatives were working on a $2.2 trillion novel coronavirus stimulus package that could be voted on as soon as next week. The rate of 10 gram 18, 22, and 24-carat gold in Mumbai was Rs 37,385, Rs 45,659 and Rs 49,846, respectively, plus 3 percent GST. Silver prices rose Rs 1,006 to Rs 57,477 per kg from its closing on September 24.

🍒 Rupee ends 28 paise higher at 73.61 against US dollar : The rupee strengthened by 28 paise to settle at 73.61 (provisional) against the US dollar on Friday, as gains in domestic equities buoyed investor sentiment. At the interbank forex market, the domestic unit opened at 73.76 against the US dollar, then gained further ground to finally close at 73.61, registering a rise of 28 paise over its previous close.

🍒 Shares of Central Bank of India in Stock Market : 67% of moneycontrol users recommend buying Central Bank of India shares. In BSE, shares closed at Rs.16.20 against Prev Close Rs.16.60. In NSE, shares closed at Rs.16.20 against Prev Close Rs.16.60.

All the Best… Have a Good day, great weekend

Today's Banking / Financial News at a Glance | 23.09.2020

2020-09-23T20:26:00.002-07:00

Good Morning

☕ 23.09.2020: Today's Banking / Financial News at a Glance

🍒 Central Bank sets QIP floor price at ?16.18 apiece : Central Bank of India launched its fund-raising exercise on Tuesday through a qualified institutional placement. The floor price has been set at ?16.18 per equity share for the QIP. “…the capital-raising committee of the bank has, at its meeting held on September 22, passed the following resolutions – approved and adopted the preliminary placement document …, approved the opening of the QIP on September 22, 2020; and approved the floor price of ?16.18 per equity share for the QIP,” it said in a regulatory filing. The capital-raising committee of its board will meet again on September 25 to consider and determine the issue price for the equity shares to be allotted to qualified institutional buyers, it further said. On Tuesday, the bank’s scrip closed 14.29 per cent higher at ?17.20 apiece on the BSE. - Business Line

🍒 Indian Parliament passes bill to bring cooperative banks under RBI's supervision : Parliament on Tuesday passed amendments to the Banking Regulation Act to bring cooperative banks under the supervision of the RBI, a move aimed at protecting the interest of depositors.The Banking Regulation (Amendment) Bill, 2020, which replaces an ordinance that was promulgated on June 26, was passed by a voice vote in Rajya Sabha. The amendment had got approval from Lok Sabha on September 16. The bill, which comes in the backdrop of the PMC Bank scam, seeks to strengthen cooperative banks by increasing their professionalism, enabling access to capital, improving governance and ensuring sound banking through the RBI.Replying to a short debate on the bill in Rajya Sabha, Finance Minister Nirmala Sitharaman said the amendments have been brought to completely protect the interest of depositors. She clarifies this amendment is only for cooperative societies engaged in banking activities. "During the COVID period many cooperative banks have come under stress. Their finances are being closely monitored by the regulator RBI," Sitharaman said. - economic times

🍒 Rate cuts have not spurred investment: SBI Chairman Rajnish Kumar : State Bank of India chairman Rajnish Kumar on Tuesday said that interest rate cuts had not led to an increase in investment, despite the banks passing on the rate cuts to the customers. Speaking at the 47th National Management Convention of the All India Management Association (AIMA), Kumar said that credit growth had been slow this year as capex was not happening at the usual pace. He pointed out that in the last crisis in 2008, banks had increased lending by diluting norms and the country had paid a high price for that, so banks were being prudent this time. - economic times

🍒 Corporates reluctant to go in for loan restructuring: SBI chief : SBI Chairman Rajnish Kumar, on Tuesday, said there has not been too much of rush for loan restructuring so far as announced by the Reserve Bank of India. According to him, more than banks, corporates are reluctant to go for restructuring. Hence, there might not be much demand for restructuring among corporates; however, there might be some demand from the lower end of corporates or from the MSME segments. “From the banking side, what I am seeing is that there is not too much demand (for corporate restructuring). It may be contrary to what the public discourse is, but as of now, the reasons could be many. One is, of course, a lot of clean up has already happened. In the capital, a lot of deleveraging has also happened. And more than banks, corporates are reluctant to go for restructuring. That is the feeling I am getting,” said Kumar at the banking colloquium organised by CII on Tuesday. - Business Line

🍒 PSBs get more retail credit inquiries than private banks during Jul-Aug: Report : The state-run lenders are seeing faster pick up in retail credit inquiries than their private counterparts on quicker reopening of branch network, a report by a credit information company (CIC) said on Tuesday. Despite the inroads done by digital alternatives, through which lenders are receiving inquiries and even disbursing loans online, branch offices continue to play an important role, Transunion Cibil said in the report. The lenders get in touch with CICs while doing diligence on every credit proposal, which triggers in inquiries. It can be noted that many analysts have said that a large share of the incremental credit demand is coming from the more aggressive private sector lenders who also have larger capital buffers. "Public (sector) lenders saw the biggest rebound in inquiries in July and August 2020, most likely because they were early in recommencing operations than their private and NBFC (non-bank finance companies) counterparts," the report by Cibil said.- economic times

🍒 RBI, government in right direction to keep economy moving: Axis Bank CEO : The Reserve Bank and the government are in the right direction to keep the economy moving and signs of revival in the banking industry are visible with people starting to repay their liabilities, Axis Bank MD and CEO Amitabh Chaudhry said on Tuesday. "We have gone through two phases of concession being given to the borrowers with the moratoriums, now we are in the so called restructuring phase. "The numbers are trending in the right direction, that means the customers do realise that they do need to pay. Many customers who have taken moratorium or who were worried about this situation have actually started paying and I am expecting a similar trend on restructuring side as well," Chaudhry said. He was speaking at a virtual event organised by the All India Management Association (AIMA).- economic times

🍒 Government needs to cap MDR on debit card at 0.6% to promote digital transaction: Report : The government needs to cap the merchant discount rate on all types of debit and pre-paid cards at a lower rate of 0.6 per cent of the transaction value with a view to end distortions in the card payment ecosystem and promote digital transactions, suggested a study. The study done by the Indian Institute of Technology Bombay further suggested that there could be an upper ceiling of Rs 150 for a prescribed merchant discount rate (MDR) of 0.6 per cent. "To encourage digital payments where cash is a strong alternative, for small and medium merchants accepting POS based payments, and having annual turnover of at most Rs 2 crore, the MDR for all types of debit and pre-paid cards, for transactions up to Rs 2,000, could be fixed with a cap of 0.25 per cent, while for transactions exceeding Rs 2,000, the cap could be 0.6 per cent," it said.- economic times

🍒 State Bank of India planning to monetise its integrated digital banking platform YONO : State Bank of India is planning to monetise its flagship digital banking platform YONO by allowing smaller lenders such as small finance banks and regional rural banks to use it, chairman Rajnish Kumar said. The country's largest bank may soon carve out the integrated digital platform into a separate entity. "The work has started," the chairman said at a CII event on Tuesday. Other lenders would need to connect with the YONO API (application programming interface) for using the platform. Kumar had earlier said that YONO (You Only Need One) is a profitable platform with 2.7 crore users. He had said that YONO could have been valued at $40 billion had a valuation been done. The platform was launched in November 2017. SBI onboarded about 29 lakh customers on this platform in the first quarter of this fiscal. It has seen around three million transactions in the same period. The bank also opened three pilot YONO branches. About 93% of the bank’s total transactions now take place through alternate channels. - economic times

🍒 Punjab and Maharashtra Co-operative Bank gets a new administrator : Reserve Bank of India (RBI) has appointed former Union Bank of India general manager AK Dixit as the new administrator of the beleaguered Punjab and Maharashtra Co-operative Bank (PMC) as the present administrator JB Bhoria is stepped down on September 22 due to health reasons. PMC was placed under RBI directions on September 23, 2019, after its NPAs rose sharply due to loans given to real estate company HDIL and its promoters the Wadhawan's with accounting for it in the bank's book. The directions have been subsequently extended and is presently valid till December 22.- economic times

🍒 Stressed assets could touch 20% by end of fiscal year: Macquarie Capital : In what could raise alarm bells over the asset quality of the Indian Banking system, Macquarie Capital has estimated that stressed assets could more than double and touch nearly 20% by the end of FY21. Bad loan ratio at the end of March 2020 stood at 8.5%. //“As per our estimates, we believe overall stressed assets for banks is expected to touch 20% by FY21E which is perhaps the highest observed in the history of the banking system in India and also one of the highest in the world,” said Suresh Ganapathy, Associate Director, Macquarie Capital. This is so far the worst assessment of the stress induced by the pandemic on bank’s books. The Reserve Bank of India as part of the stress tests it conducted on lender’s books predicted that bad loan ratio could rise to 14.7% under a severely stressed scenario.- economic times

🍒 Banks ready with one-time rejig plan for retail loans : There’s relief in sight for pandemic-hit retail borrowers struggling to make EMI payments. Banks have started offering relief packages to borrowers under the RBI’s Resolution Framework for Covid-19-related Stress. As the six-month moratorium offered to all borrowers came to an end on August 31, the RBI allowed banks to open a one-time restructuring window for banks to offer further relief to borrowers who are still cash-crunched and unable to resume EMI payments. The one-time restructuring of loans include personal, housing, auto and education advances, and credit card dues. Banks are now rolling out the scheme. “We have framed guidelines on the modalities and customers can apply for relief before December 24, 2020,” a senior SBI official told BusinessLine. -Bussiness Line

🍒 ‘DHFL used 2.6 lakh fraud a/cs in fake branch to siphon funds’ : A whopping 2.6 lakh fake accounts in a Mumbai branch that did not exist. This is what investigations into the DHFL scam have revealed. The ‘branch’ created fake accounts using names of account holders who had already repaid in full to siphon out ₹11,750 crore. Coding was done with the help of three software platforms to camouflage these transactions, according to probe documents seen by BusinessLine Nearly 70 per cent of the ‘fraudulent transactions’ of DHFL flagged by the forensic auditor, Grant Thornton, are from this fictitious ‘Bandra-branch,’ the probe documents show. - Business Line

🍒 Vivriti Capital raises ?100 crore in Series B Funding : Vivriti Capital, which owns and manages online platform CredAvenue, has raised ?100 croreled by existing investor Creation Investments. The company had earlier raised ?350 crore in March from LGT Lightstone Aspada and ?310 crore in 2019 from Creation Investments, and with this investment the company has raised ?760 crore till date, it said in a statement. The funds infused will be used to further strengthen our technological and analytical capabilities and ramp up new platforms, which we have launched specifically for co-lending, supply chain, among others. We will also invest more into our asset management business to set up and launch unique funds spanning the BBB to AAA fixed income universe, said Gaurav Kumar and Vineet Sukumar, Founders and MD of Vivriti Capital.-Bussiness Line

🍒 More clarity on loan recast likely by month-end : A clearer picture on the availment of the loan restructuring scheme is likely to emerge by the month-end as banks are still awaiting collection data and are also hoping for a verdict from the Supreme Court on the issue of moratorium interest. Meanwhile, even as banks, NBFCs and housing finance companies have begun rolling out retail and home loan recast schemes, most of them do not expect too many borrowers to avail the facility. “As of now, discussions have begun with borrowers who want to avail the recast. But everyone is hoping for more clarity after the Supreme Court hearing on September 28,” said a senior banker with a private sector lender.Like State Bank of India, most lenders are also seeking the details and proof of Covid-related job loss or salary reduction. “It is the same for both retail and corporate borrowers. They have to approach the bank and discuss the recast. It is not a free lunch,” said another banker, adding that bank and salary statements and GST returns are being examined.-Bussiness Line

🍒 Singapore, HK top destinations for suspect funds; China and India follow : Singapore and Hong Kong were the biggest destinations for suspect transactions in Asia, even though the financial centers saw just a small fraction of an estimated $2 trillion in potentially dodgy money flows revealed in a report. Singapore processed $4.4 billion in suspicious flows through banks, including DBS Group Holdings Ltd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd., the International Consortium of Investigative Journalists said in an investigation published Sunday. Some $4.1 billion was handled in Hong Kong by lenders including HSBC Holdings Plc and Deutsche Bank AG, it said. The two banking centers are followed by China and India in Asia in terms of the size of suspect flows, according to the report based on a leaked trove of documents to BuzzFeed News. The documents detailed more than $2 trillion in transactions between 1999 and 2017 that were flagged by financial institutions’ internal compliance officers as possible money laundering or other criminal activity. - Business Standard

🍒 Covid-19 effect: Banks may recast Rs two trillion loans, says SBI : The banking system in India is expected to restructure loans worth Rs two trillion of borrowers impacted by the Covid-19 pandemic, State Bank of India chairman Rajnish Kumar said. This estimate for recast covers corporate, MSME and retail borrowers. As for SBI, the estimates are in the region of Rs 20,000 crore covering all segments. There isn't much demand for restructuring as of now. The scale of recast will remain restricted if economic recovery isn't delayed much, SBI chairman said. Addressing a banking webinar organised by the Confederation of Indian Industry (CII), Kumar said said very few large corporates with loans above Rs 1,500 crore are likely to be come for restructuring. A lot of clean up and deleveraging has already happened in the case of large companies, many of whom are reluctant to carry the 'restructuring' tag. Segments impacted the most include aviation, hospitality and shopping malls. The real estate sector has been struggling for four to five years and the pandemic has added to problems, Kumar said. - Business Standard

🍒 NBFC-MFIs' loan disbursement drops 96% to Rs 570 cr in June quarter : Loan disbursements by non-banking financial companies-microfinance institutions (NBFC-MFIs) declined 96 per cent to Rs 570 crore in the first quarter of the current financial year, according to a report by Microfinance Institutions Network (MFIN). It had stood at Rs 15,865 crore in the corresponding quarter of the previous year. The data pertains to NBFC-MFI members of MFIN, a self-regulatory organisation and industry association of the microfinance sector in the country. It has 56 NBFC-MFIs and 35 associates including banks, small finance banks (SFBs) and NBFCs as its members. Analysis on NBFC-MFIs is based on data collected from 54 members that are registered with the Reserve Bank of India (RBI), MFIN said.- Business Standard

🍒 SBI to charge additional 0.35% interest on rejigged retail loans : State Bank of India (SBI) on Monday launched a portal to administer the restructuring scheme to retail borrowers hit by Covid-19-related stress. The country’s largest lender will be charging an additional interest of 0.35% per annum over and above the current pricing for the remaining tenure of the restructured loans, “in order to offset partial cost of additional provisions required to be made by the bank.” Customers can check their eligibility for the restructuring of their loans through the portal. Upon logging in, they will be asked to key in their account number. After completion of OTP validation and inputting a few other details, the customer will come to know their eligibility and receive a reference number. This reference number will be valid for 30 days, within which period customers can visit the branch to complete the required formalities. The restructuring process will be completed after verification of documents and execution of some procedures at their branch. - financial express

🍒 Gold prices drop by Rs 658 to Rs 50,683; silver rates fall to Rs 59,959 per kg : Gold prices slide by Rs 658 to hit Rs 50,683 per 10 gram in the Mumbai market on a strong dollar and subdued global cues. The precious metal prices decline on sharp dollar recovery as safe-haven buying switched to dollar with rising coronavirus cases and fear of another lockdown in Europe and the UK. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,426 plus 3 percent GST, while 24-carat 10 gram was Rs 50,683 plus GST. The 18-carat gold quoted at Rs 38,012 plus GST in the retail market. Silver prices declined by Rs 4,182 to Rs 59,959 per kg from its closing on September 21.

🍒 Rupee skids 20 paise to 73.58 against US dollar : The rupee depreciated 20 paise and settled at 73.58 (provisional) against the US dollar on Tuesday tracking negative domestic equities. At the interbank forex market, the rupee opened on a weak note at 73.50, then fell further and finally closed at 73.58 against the greenback, registering a fall of 20 paise over its last close. The rupee strengthened by seven paise to close at 73.38 against the US dollar on Monday.

🍒 Market falls for 4th straight day; Sensex below 38K, Nifty breaks 11,200: Indian market fell for the fourth consecutive day on September 22 following muted global cues to hit a 7-week low. The S&P BSE Sensex plunged by 300 points while the Nifty50 closed below 11200 levels. Let’s look at the final tally on D-Street – the S&P BSE Sensex was down 300 points to 37,734 while the Nifty50 fell 96 points to close at 11,153. Experts are of the view that weakness in global markets, rising cases of COVID which could hamper the economic recovery across the world kept investors on the edge.

🍒 Shares of Central Bank of India in Stock Market : 69% of moneycontrol users recommend selling Central Bank of India shares. In BSE, shares closed at Rs.17.20 against Prev Close Rs.15.05. In NSE, shares closed at Rs.17.25 against Prev Close Rs.15.00..

… Have a Good day.

Tamilan Kavithaigal | தமிழ் கவிதை | விவசாயிகள் கவிதை | Vivasayam Tamil Kavidhai

2020-09-21T08:32:00.001-07:00

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2020-09-20T19:59:00.002-07:00

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2020-09-19T02:09:00.002-07:00

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Today's Banking / Financial News at a Glance 17.09.2020

2020-09-16T19:41:00.002-07:00

Good Morning All....

☕ 17.09.2020: Today's Banking / Financial News at a Glance

🍒 Lok Sabha passes legislation to bring cooperative banks under RBI's supervision : The Lok Sabha on Wednesday passed the Banking Regulation (Amendment) Bill, 2020 which seeks to bring cooperative banks under the supervision of the Reserve Bank of India (RBI) to improve their governance and protect depositors’ money while empowering the banking regulator to prepare a restructuring or amalgamation scheme for a struggling bank without first placing it under a moratorium. The bill replaces the ordinance that was promulgated on June 26.Replying to the debate on the bill in the house, finance minister Nirmala Sitharaman said the legislation was for depositors’ safety and not for undermining the powers of the Registrar of Cooperative Societies. “We have brought this amendment to protect the depositors," said Sitharaman. She said the government was compelled to come out with an ordinance during the lockdown as the condition of the cooperative banks was “grave”. “Absolutely there was a need for an ordinance. Several members have highlighted that because of Covid, one wasn't sure when the next session of Parliament would be and in the meanwhile the protection of depositors was of critical importance,” she said. - economic times

🍒 State Bank of India's digital startup, YONO, could be a $40 billion goldmine : he country’s largest lender State Bank of India (SBI) could be sitting on a goldmine when it comes to its digital startup YONO (You only need one). The super-app could be valued at $40 billion with the lender considering long term plans to hive it off as a separate entity once it assumes a certain size. “The companies which are making losses are valued at $10 billion - $20 billion, YONO which is such a versatile platform has been making good amount of profits, using that benchmark YONO should be valued at $40 billion, but we haven’t commissioned any independent agency to value the platform,” Rajnish Kumar, chairman, SBI told ET. SBI had launched the YONO platform in 2017 and within three years of inception, notional profit and loss statements created by the bank suggests that its profits could be running in a few hundred crores. Bank is booking profits basis earnings of fee income, savings on net interest income, productivity gains and reduction in costs due to its digital only nature. - economic times

🍒 Union Bank of India issues Basel-III compliant Tier-II bonds : Union Bank of India on Wednesday said it has issued and allotted “unsecured, redeemable, non-convertible, taxable, Basel-III compliant Tier-II bonds” aggregating ₹1,000 crore. The bonds, with face value of ₹10 lakh per bond, carry a coupon rate of 7.42 per cent. They have a tenor of 120 months from the deemed date of allotment (September 16, 2020), according to the public sector bank’s regulatory filing. The Bank can exercise call option with prior approval of the Reserve Bank of India (RBI), subject to conditions mentioned in the Term Sheet on fifth anniversary from the deemed date of allotment or any allotment anniversary thereafter. The Bonds will be listed on the National Stock Exchange of India Limited. - Business Line

🍒 Worries as NPAs under Mudra scheme rise to 5% for public sector banks : The non-performing assets for loans disbursed by state-owned banks under the Pradhan Mantri Mudra Yojana (PMMY) are on a rising trajectory and soared to around 5 per cent of the total loans disbursed in 2019-20, Minister of State for Finance Anurag Thakur informed the Parliament earlier this week. The NPAs of public sector banks (PSBs) under the Mudra scheme stood at 4.9 per cent in 2019-20 – a big jump from 3.7 per cent in 2018-19 and 3.4 per cent in 2017-18. Thakur informed the Lok Sabha in a written response on Monday that NPAs of PSBs under the PMMY scheme rose to Rs 18,836 crore in 2019-20, compared to Rs 11,483 crore in 2018-19 and Rs 7,277 crore in 2017-18. This corresponded to Rs 3.82 trillion worth loans disbursed by the state-owned banks in 2019-20, compared to Rs 3.05 trillion in 2018-19 under the scheme. - Business Standard

🍒 Titan ties up with SBI to launch contactless payment watches : Titan on Wednesday, in collaboration with State Bank of India (SBI), introduced ‘Titan Pay’, powered by YONO SBI. “Through this partnership, Titan and SBI are launching a range of stylish new watches with contactless payment functionality for the first time in India,” Titan said in an official release. In a first in India, SBI account holders can now make payments through these Titan Pay watches on contactless MasterCard-enabled point-of-sale (POS) machines without a card. - Business Line

🍒 Reserve Bank to offer employees option to switch from CPF scheme to pension scheme : The Reserve Bank of India has agreed to offer its employees an option to switch over to pension facility from the contributory provident fund (CPF). It was a long-standing demand by the central bank employees. “This will be the last such option given to eligible serving/retired employee/ family members of deceased employees to switch over from CPF scheme to pension scheme and no further option will be given in future,” RBI said in an internal note. The decision has been taken in consultation with the government. All existing employees who joined RBI before January 1, 2012 will get this benefit. For retirees, the cut-off date is November 1, 1990, the date of introduction of the pension scheme at RBI. The switch over option will be available till November 15. - economic times

🍒 India's fraud-hit PMC Bank asked other major banks for a merger, says administrator : India's fraud-hit PMC Bank has approached other banks over a possible merger even as its efforts to recover funds from a big borrower have been disrupted by the coronavirus pandemic, the bank's administrator said in a court filing seen by Reuters. Authorities started investigating Punjab and Maharashtra Co-operative Bank (PMC) for fraud last year and the Reserve Bank of India (RBI) took control of it after detecting financial irregularities. Thousands of PMC depositors have been unable to access their deposits for a year as the RBI has capped withdrawals at 100,000 rupees ($1,359). PMC has "tried to engage with the major banks of the country to request for a merger", the bank's administrator said in a Sept. 10 filing at the Delhi High Court, without identifying the banks or giving other details. - economic times

🍒 Bandhan Bank appoints Kumar Ashish to head Emerging Entrepreneurs Business vertical : Bandhan Bank has recreated a broader vertical called "emerging entrepreneurs business" which includes its microbanking division, micro home loan and micro enterprise loans. The bank on Wednesday announced the appointment of Kumar Ashish as the head of this new division. Prior to joining Bandhan Bank, Ashish was group director at Airtel Money in Africa (a division of Airtel Africa), which runs mobile money operations across 14 countries in sub-Saharan Africa. Before that, he had spent about two decades at ICICI Bank. "In line with the capability requirements, the bank has been focussing on capacity building both through training and upskilling of existing employees, and through lateral hiring," Bandhan Bank managing director Chandra Shekhar Ghosh said. - economic times

🍒 Digital payments to recover by year end: MobiKwik CEO : Homegrown fintech player MobiKwik, which is looking to list by 2022, will continue to focus on its digital credit card business and work on profitability. “We are the only fintech company in the country which has demonstrated profitability. We have been steadily cutting down our losses,” said Bipin Preet Singh, co-founder and CEO, MobiKwik. “We are confident that in 18 to 24 months, we will be ready for an initial public offering,” he told BusinessLine. - Business Line

🍒 LIC expects good growth this fiscal : LIC expects a good growth in business during the current fiscal, backed by increasing awareness for the need for insurance among customers and a strong digital push. According to Raj Kumar, Managing Director, LIC of India, as on August 31, 2020, the insurer is at par with last years’ levels in terms of new business premiums and has witnessed close to 13 per cent growth in renewal premiums. “As on August 31 we are at last years’ level and from here on it could be a take-off (in terms of growth),” Kumar said at a webinar organised by the Merchants’ Chamber of Commerce and Industry here on Wednesday. - Business Line

🍒 ‘Economic recovery likely to be gradual’ : India’s recovery is likely to be gradual as efforts towards reopening the economy are confronted with rising infections, said Reserve Bank of India (RBI) Governor Shaktikanta Das. “The August-end press release of the National Statistics Office (NSO) was a telling reflection of the ravages of Covid-19. “Nevertheless, high frequency indicators of agricultural activity, the purchasing managers’ index (PMI) for manufacturing, and private estimates for unemployment point to some stabilisation of economic activity in Q2 (July-September), while contractions in several sectors are also easing,” said Das in his address to members of industry body FICCI. - Business Line

🍒 RBI’s loan restructuring was to strike a balance between depositors’ interest and maintain financial stability : The rationale and philosophy behind the one-time restructuring scheme (framework for resolution of Covid-19-related stress) is to strike a balance between the depositors’ interest and maintain financial stability, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. The Governor underscored that the central bank took a careful and balanced call/ decision on the framework for resolution of Covid-19-related stress. Under the RBI’s framework for resolution of Covid-19-related stress, only those borrowers that were classified as standard and with arrears less than 30 days as of March 1are eligible for resolution.- Business Line

🍒 Debt restructuring scheme may soften blow of Covid-19 on books of PSBs : The debt restructuring scheme is expected to soften the blow of the Covid-19 pandemic on books of public sector banks (PSBs). With years of capital infusion, consolidation and enhancement in monitoring risk management, PSBs are relatively better placed to face challenges. Yet, some of them are likely to need some capital support from the government, in order to absorb shocks, meet regulatory norms, and support business growth. Except for a few, most PSBs face major challenges in raising capital from the market, given the low premium. The government’s recapitalisation programme may give them a back-stop facility in case of capital support. - Business Standard

🍒 RBI says protection of depositors should be banks' primary concern : The primary concern for any bank should be the protection of the depositors' interest, the Reserve Bank of India governor Shaktikanta Das said on Wednesday, while addressing a webinar organised by FICCI. "Ultimately, it is the depositors' money. The number of depositors could run into crores whereas the number of borrowers could be in lakhs. There are small depositors, there are middle class depositors, there are retired people who depend on bank deposits. So the interest of depositors had to be protected while allowing restructuring," Das said - Live Mint

🍒 Vulnerability of NBFC sector still a concern: RBI governor : Reserve Bank of India governor Shaktikanta Das on Wednesday said the vulnerability of non-banking finance companies (NBFC) sector continues to remain a concern. Addressing the FICCI National Executive Committee Meeting, the RBI chief said the regulation of NBFCs is not on a par with banks and the central bank is committed to ensuring that no large shadow lender fails.According to Das, RBI has increased regulatory restrictions on NBFCs since the collapse of Infrastructure Leasing and Financial Services Ltd (IL&FS) last year. These include introduction of liquidity coverage, and appointment of chief risk officers in these companies. “Vulnerability of NBFCs remains a concern. NBFCs are not at par with banks in terms of regulations. We don’t want a repeat of the crisis in another NBFC. In April 2019 MPC, I had said it will be our endeavour to ensure that no large NBFC fails. Thereafter, we have been extensively monitoring the top 100 NBFCs," he added. - Live Mint

🍒 Nabard to take up short term skill development programmes for reverse migrant workers : National Bank for Agriculture And Rural Development (Nabard) will soon start a short-term skill development programme for reverse migrants that will help them to get re-employed at the earliest. The board has initially sanctioned programmes for Uttar Pradesh, Bihar and Jharkhand and seeks to work with the National Skill Development Corporation accredited national skill development centres. CU Bhaskar, Nabard’s chief general manager in Mumbai told Financial Express the programme would be implemented on a large scale and majority of the funding would be done by Nabard. “But the entire process would be complicated since it would involve identifying efficient skill development centres and the real needy, who would require training to get back to work. The details of the programme are yet to be worked out,” Bhaskar said. - financial express

🍒 DBS Bank India unveils online loan platform for SMEs, offers credit up to Rs 20 crore : DBS Bank India on Wednesday launched an online platform for making loans available to small and mid size businesses in a hassle-free manner, with credit facility up to Rs 20 crore. Driven by its constant focus on building seamless, intuitive and hassle-free banking solutions for customers, DBS Bank India has unveiled its online credit solutions platform – DBS Digital Business Loans for SMEs, the bank said in a release. This segment-flagship platform from DBS improves the ease of accessing business credit for the entire spectrum of micro, small and medium-sized enterprises, offering credit up to Rs 20 crore, it said. The private sector lender said that customers can avail the loan through a simple online process by uploading bank statements, and I-T returns (for loans above Rs 5 crore). - financial express

🍒 Tax refunds worth over Rs 1.06 lakh crore issued to 30.92 lakh taxpayers till September 15: CBDT : The income tax department on Wednesday said it has issued refunds of over Rs 1.06 lakh crore to more than 30 lakh taxpayers between April 1 to September 15. This includes personal income tax (PIT) refunds amounting to Rs 31,741 crore issued to 29.17 lakh taxpayers and corporate tax refunds worth Rs 74,729 crore to over 1.74 lakh taxpayers."CBDT issues refunds of over Rs 1,06,470 crore to more than 30.92 lakh taxpayers between 1st April, 2020 to 15th September, 2020." "Income tax refunds of Rs 31,741 crore have been issued in 29,17,169 cases & corporate tax refunds of Rs 74,729 crore have been issued in 1,74,633 cases,” the Central Board of Direct Taxes tweeted.

🍒 Gold prices slip marginally to Rs 51,797 per 10 gram, silver down Rs 875 per kg : Gold prices slipped by Rs 96 to Rs 51,797 per 10 gram in the Mumbai market on a rally in the stock market, and rupee appreciation. Participants await the US Federal Reserve's policy statement tonight. The rate of 10 gram 22-carat gold in Mumbai was Rs 47,446 plus 3 percent GST, while 24-carat 10 gram was Rs 51,797 plus GST. The 18-carat gold quoted at Rs 38,840 plus GST in the retail market. Silver prices fell Rs 875 to Rs 65,883 per kg from its closing on September 15.

🍒 Rupee gains 12 paise to 73.52 on weak dollar : The rupee strengthened by 12 paise to settle at 73.52 against the US dollar on Wednesday supported by buoyant domestic equities and weak American currency. At the interbank forex market, the local unit witnessed high volatility against the US dollar ahead of the US Federal Reserve’s policy statement that will be released later in the day. During the session, the domestic unit touched an intra-day high of 73.48 and a low of 73.78 against the greenback.

🍒 Equities rally for third day in a row; Sensex up 258 points led by IT, Healthcare : After opening higher by 116 points, the 30-share BSE index witnessed some choppy moves intraday before closing higher by 258.50 points, or 0.66 per cent, at 39,302.85 On the NSE, the Nifty rose 82.75 points or 0.72 per cent to 11,604.55.M&M was the top gainer in the Sensex pack, rising around 4 per cent, followed by Bajaj Auto, Sun Pharma, HDFC Bank, Infosys, L&T, Nestle, UltraTech Cement and ICICI Bank. On the other hand, IndusInd Bank, NTPC, sbi, ONGC, Bharti Airtel, Axis Bank, ICICI Bank, ITC and PowerGrid were among the laggards.

🍒 Shares of Central Bank of India in Stock Market : 50% of moneycontrol users recommend *buying* Central Bank of India shares. In BSE, shares closed at Rs.16.35 against Prev Close Rs.16.45. In NSE, shares closed at Rs.16.40 against Prev Close Rs.16.50.

… Have a Good day..

Mutham with images kavithai | Whatsapp Status Kiss Kavithai

2020-09-16T10:40:00.000-07:00

நம்பிக்கை | Nambikkai Kavithai Tamil | Kavitha in tamil

2020-09-16T10:33:00.000-07:00

நம்பிக்கை....

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