Banking & Finance News Update
arrow Govt to infuse Rs 48,239 cr in 12 PSBs; Corporation Bank gets Rs 9,086 cr
  Allahabad Bank will be provided Rs 6,896 crore
arrow Shutting out foreign funds hurts India's bad-debt market, says BofA
  In the past year, the US lender has had to team up with local asset reconstruction companies to purchase loans made to firms including Seven Hills Hospitals and GTL Infrastructure Ltd. that had soured
arrow Rupee opens 5 paise higher at 71.29 against US dollar as oil prices slip
  The domestic unit weakened by 11 paise to end at 71.34 against the greenback on Monday, amid firming crude oil prices and persistent foreign fund outflows.
arrow YES Bank denies wrongdoing, says disclosure in line with guidelines
  On February 14, the private lender had disclosed that the RAR had not found any divergence in asset classification and provisioning for 2017-18
arrow NBFC liquidity normalises, fresh bond sales jump 30% in January: Report
  Signalling an end to the liquidity crisis that NBFCs have been facing since last September, corporate bond issuances by them have risen by 30 percent in January, reflecting renewed confidence among both issuers as well as investors, says a report. It can be noted that non-banking finance companies or NBFCs are the biggest issuers of debt in the corporate bond market, controlling nearly 90 percent of the volume. With the 30 percent spike in fresh issuances in January, their share has clawed backed to the near normal levels to 82.2 percent of the volume. Shadow bankers depend on the bond market to raise short -term capital for on-lending, and they go to banks for long-term finance. In the previous seven months, amidst the challenging liquidity constraints faced by the sector following the IL&FS bankruptcy, the corporate bond issuances on a monthly basis has seen falling. Fresh corporate bond issuances by NBFCs saw a notable decline from 71.6 percent (of the total ...
arrow NPA woes: India beats Italy to have world's worst non-performing loan ratio
  RBI said in December that the ratio for banks fell for the first time since 2015, though it's still 'high for comfort'
arrow SBI to waive loans of CRPF personnel killed in Pulwama terror attack
  The state-owned lender would also expedite payment of insurance amount of Rs 30 lakh each to the families of CRPF personnel killed
arrow HDFC Bank has no plans to cut down branch expansion to focus on tech: CEO
  India is the fastest growing major economy in the world and banking services are yet to reach all the people, Puri added
arrow An app may be stealing your bank data, RBI warns digital, UPI users
  Digital security concerns have assumed greater importance amid the Modi government's efforts to steer India towards a less-cash, digital economy
arrow RBI Governor to discuss rate cut transmission with bank chiefs on Feb 21
  Commenting on mergers in the banking space, Finance Minister Arun Jaitley said India needs fewer and mega banks which are strong
arrow SBI does not have any headroom to cut deposit rates: Chairman Rajnish Kumar
  In the current situation if I cut the rate of interest then I will have a problem, says Kumar
arrow Rupee opens 8 paise lower against US dollar amid surge in crude oil prices
  The domestic unit on Friday slipped by 7 paise to close at 71.23, pressured by heavy foreign capital outflows and firming oil prices.
arrow Top 12 corporate NPAs cost exchequer twice as much as farm loan waivers
  If recapitalisation of banks is welcomed, a farm loan waiver should be as acceptable
arrow Banks expect liquidity to remain tight in Q4 due to tax outflows: Survey
  The eighth round of the survey for the period July to December 2018 witnessed participation of 23 banks.
arrow First time in FY19, RBI turned net dollar buyer in Dec, bought $607 million
  Between April and November 2108, the central bank had net sold $26.51 billion in the spot market against net purchase of $18.017 billion in the same period in 2017
arrow SBI charts 'new path', promotes employee health, family, work-life balance
  The programme, christened Nayi Disha, focuses on work-life balance and also involves the staffs' immediate family members
arrow IL&FS-led liquidity woes, Aadhaar ban roil NBFCs, micro-lending dips by 15%
  The liquidity crisis at NBFCs triggered by the bankruptcy of IL&FS and the Supreme Court verdict banning use of the Aadhaar data for financial transactions have led to a 15 per cent drop in micro-lending by financial institutions for the December 2018 quarter. Disbursements stood at Rs 41,840 crore for the third quarter of the current fiscal year, down from Rs 49,450 crore in the preceding three months, show the data from the credit information company Crif High Mark. "There were two major changes during the quarter which may have resulted in the decline. First was the liquidity trouble, which subsided towards the end of the quarter, and the second was the Aadhaar verdict," agency vice president Parijat Garg told PTI. Garg said the Aadhaar verdict, which prohibits all financial institutions including non-banking finance companies from storing a users data, resulted in a fall in disbursements and also resulted in a marginal fall in the share of NBFC-MFI lenders in ...
arrow How easy credit from shadow banks has begun to haunt Indian realty sector
  The regulator for housing-finance firms has allowed an accumulation of illiquid long-term assets with liquid short-term liabilities
arrow Allahabad Bank draws a road map to come out of PCA list by June
  Allahabad Bank expects fresh capital infusion from the government by the end of this month or early next month
arrow RBI withdraws 20% limit on investments by FPIs in corporate bonds
  The RBI said the directions in this regard have been issued the Foreign Exchange Management Act
arrow Citi India CEO lost RBI confidence
  RBI had fined Citigroup's India unit Rs 3 crore for not fully following "fit and proper" criteria for the bank's directors
arrow RBI governor Shaktikanta Das rules out asset quality review of NBFCs
  Shaktikanta Das also discussed the current regulations and requirements for investment in fixed income for FPIs
arrow Will cut interest rates further once marginal cost of funds declines: SBI
  SBI announced only a 0.05% cut in interest rate on home loans of up to Rs 30 lakh despite the RBI cutting the repo rate by 0.25% last week
arrow Rupee slips 20 paise to 71 level against US dollar in early trade
  In the previous session, the domestic unit settled 10 paise lower at 70.80 against the greenback amid rising crude prices and heavy foreign fund outflows.
arrow Here are some steps that could be initiated against wilful defaulters
  Defaulters cannot get additional finance from banks
arrow RBI finds no divergence in provisioning, asset classification: Yes Bank
  The Reserve Bank of India assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning as part of its supervisory processes
arrow Rupee's unexpected gains this week showcases RBI's pivot for markets
  While a rate cut typically lowers a currency's yield appeal, it bolsters foreign inflows into local shares, which helps strengthen the rupee
arrow A $23 bn manager is betting on India's struggling real estate sector
  Developers in India are struggling as loans become harder to get from non-bank lenders whose own funding is drying up
arrow Rupee gains further, opens 22 paise higher against US dollar
  The domestic unit on Tuesday strengthened by 48 paise to close at one-month high of 70.70 against the dollar.
arrow Easing core inflation sets stage for more interest rate cuts by RBI
  Consumer-price growth reached 2.05 per cent in January, well below the Reserve Bank of India's medium term target of 4 per cent
arrow PSB bad loans under Mudra Yojana stand at Rs 7,277 cr: Govt to Parliament
  Loans extended under PMMY from the inception of the scheme up to March 2018 were Rs 5.71 trn
arrow Govt brings single regulator Bill for intl financial services centres in RS
  Banking, capital markets and insurance sectors in IFSCs are regulated by multiple regulators at present
arrow How a small Tamil Nadu bank beat India's largest banks in the stock market
  City Union Bank Ltd., a small lender based in Kumbakonam, has risen more than 27% over the last twelve months, the best performance of any Indian lender in the Bankex index after Axis Bank Ltd
arrow S&P affirms Indian Overseas Bank rating at 'BB', keeps outlook stable
  International rating agency S&P Global Monday affirmed credit rating of state-run Indian Overseas Bank (IOB) at 'BB' and 'B' on expectation of government's capital infusion. The lender's outlook has also been kept stable. The bank breached its regulatory capital requirements after a loss in the third quarter of FY19. Its tier-I capital ratio was 6.95 percent below the minimum regulatory requirement of 7 percent. It's capital shortfall to meet that regulatory minimum was about Rs 62.5 crore as of December 31, 2018. "We expect IOB to receive substantial capital from the government before the end of this fiscal year in March 2019 to materially improve the bank's headroom above the regulatory minimum tier-I capital ratio of 7 percent," the rating agency said in a note. The bank's capital position improved in Q4 of FY19 through an employee stock purchase scheme (ESPS) and sale of non-core assets for which it has received initial payment. The agency said any lengthy delay
arrow Govt not considering any merger of PSBs at the moment: Reports
  The process of amalgamation is going on according to the schedule, the sources said. They added that the other proposal would be considered after the stabilisation of this three-way merger.