Banking & Finance News Update
arrow PNB invites bids for two dozen bad loan accounts to recover Rs 11.79 bn
  These 24 dud loan accounts are majorly concentrated in Mumbai, Delhi and Kolkata zones of the bank
arrow Axis Bank inducts Amitabh Chaudhry as additional director on its board
  Chaudhry, 54 years, will take over from Shikha Sharma after she demits office on December 31, 2018
arrow Time ripe for asset quality review of NBFCs, says Arvind Subramanian
  An AQR for NBFCs, including HFCs, is necessary given the uncertainty over NPAs, says the former chief economic adviser
arrow New RBI norms to increase top firms' refinancing needs by Rs 4 trn: Report
  The new RBI guidelines stipulate that the sanctioned fund-based working capital limits of Rs 1.50 bn and above must comprise at least 40% of the loan component
arrow Bank of Baroda raises over Rs 9.7 bn by issuing Basel III compliant bonds
  The bank issued Basel III compliant tier II bonds of face value of Rs 1 million each amounting to Rs 9.71 billion
arrow SBI gets shareholders' nod to raise up to Rs 200 bn through sale of shares
  SBI shares closed 0.13% down at Rs 275.40 on the BSE
arrow 59-minute loans: Leapfrogging MSME lending through technology
  The criticality of credit flow to the MSMEs is borne out of its contribution to employment and inclusive growth
arrow Not just RBI, other central banks are also being challenged by lawmakers
  There's concern among the central-banking community that the independence of central banks could be under threat
arrow RBI urges banks to keep higher capital buffer to see through crisis
  There is a need to look beyond numbers like 8 per cent of risk-weighted assets or 9 per cent, says RBI Executive Director Sudarshan Sen
arrow RBI delays discussing easing PCA rules despite govt pressure: Report
  The source said that the central bank's board for financial supervision (BFS) only discussed the banks' September quarter results and did not address PCA plan that they currently have to operate
arrow NBFCs raise interest rate between 50 and 200 bps amidst liquidity squeeze
  For the microfinance industry too, the increase in lending rates has been roughly between 50-100 bps
arrow Will the ATM survive? Bankers explain how technology is changing their work
  Is the future of banking fin tech or tech fin? Will technology follow banking, or the other way round? Top bankers discuss at Business Standard's Annual Banking Forum.
arrow Edelweiss group NBFC arm ECLF to raise up to Rs 10 billion via NCDs
  The NCDs offer an effective yield of 10.20 per cent per annum for 39-month tenure, 10.42 per cent per annum for 60 months and 10.64 per cent for 120 months
arrow As NBFCs face a credit crunch, real estate sector is pushed to the brink
  Experts say the crunch was triggered by the IL&FS issue and not because realtors defaulted
arrow Here's a quick decoding of the RBI monetary policy review in December
  The RBI has mandated a minimum level of 'loan component' in fund-based working capital finance for larger borrowers and issued final guidelines
arrow RBI keeps repo rate unchanged at 6.50%, seeks to prod banks to lend more
  RBI Governor Urjit Patel indicated that the policy course could change soon, depending upon the movement in oil prices
arrow RBI may continue OMO purchases at current pace till March: Viral Acharya
  Over the past two months, the RBI has also infused liquidity through the term-repo window, in addition to the liquidity-adjustment facility
arrow RBI monetary policy: The Indian central bank signals a prolonged pause
  Growth momentum is expected to accelerate in FY20 compared to FY19 and bank credit growth has already started increasing
arrow RBI may go back to 'neutral' stance in February meet, say experts
  RBI said it was willing to reconsider its stance if there were favourable macroeconomic indicators
arrow RBI to bring 'ombudsman scheme' to solve digital transaction complaints
  The scheme will be notified by the end of January next year
arrow Unchanged repo rate to boost sales, encourage home buyers: Realty sector
  will reinforce the confidence of homebuyers and they will be encouraged to go ahead with their plans to buy house
arrow RBI's status quo on expected lines, need to improve credit flow: India Inc
  RBI kept interest rates unchanged but held out a promise to cut them if the upside risks to the inflation do not materialise
arrow No need for RBI to help NBFCs as a lender of last resort: Viral Acharya
  The RBI has also augmented system-wide liquidity through various moves
arrow RBI retains FY19 GDP projection at 7.4%; pegs Apr-Sept FY20 growth at 7.5%
  India's economic growth fell to 7.1 per cent in the second quarter (July-September) of the current fiscal, from 8.2 per cent in the April-June period
arrow MPC meet: RBI lowers retail inflation projection to 2.7-3.2% for H2FY19
  In policy review in October, RBI had projected retail inflation to be around 3.9-4.5%
arrow NBFCs' asset growth to halve to 10% in H2FY19 on liquidity woes: Crisil
  Difficulties in getting funding will halve the non-bank lenders' asset growth to around 10 per cent in the second half of the current fiscal, a report said. The asset quality of retail loans is resilient, but the NBFCs' (non-banking finance companies) non-retail book has to be monitored for potential stress, domestic rating agency Crisil said in its report Wednesday. The report comes amid difficult times for the NBFCs, which started with the crisis at infra lender IL&FS, which extended to worries for the entire sector. Many were found to have borrowed short for long-term assets, resulting in asset liability mismatches that rattled investors. The borrowings were from investors such as mutual funds, who have turned wary and have increased the rates at which they want to lend. Crisil said while the liquidity issues are easing slowly, disbursements by NBFCs have gone down by 20-40 per cent, with a more cautious approach taken by the non-retail segments. The NBFCs, ...
arrow RBI monetary policy review: Repo rate unchanged at 6.50%, SLR lowered
  SLR cut by 25 basis points to 19.25 per cent from January 1, 2019. The central bank also said that SLR would be reduced by 25 basis points every quarter
arrow Ethiopian police take 3 IL&FS officials into custody over unpaid wages, tax
  Even as five IL&FS employees continue to remain in captivity of unpaid staff in Ethiopia, the local police have taken into custody three Indian officials of the infrastructure company over non-payment of taxes and workers' salaries, a source said. Late last month, seven Indian workers of an IL&FS subsidiary - IL&FS Transportation Network (ITNL) - were taken hostage at three of its sites in Ethiopia's Oromia and Amhara states by unpaid local staff. The source said IL&FS had 15 Indian employees in Ethiopia, seven of whom were held captive by the local staff. Of the seven, two were released last week on medical ground. The three employees taken into custody after out of the eight employees who were not held captive, he said. Local workers are allegedly holding them in captivity in protest for not having paid salaries since the past two months. ITNL, through its wholly-owned subsidiary, Elsamex SA, has been executing road projects across three sites in Ethiopia. IL&FS .
arrow Fusion Microfinance raises Rs 3 bn in fresh equity from Warburg, others
  Fusion Microfinance is a rural MFI with a Pan-India presence through 500 branches across about 200 under-developed districts in 18 states of the country
arrow YES Bank's asset management arm enters MF biz, gets Sebi nod for 2 schemes
  The asset management company will launch two schemes -- YES Liquid Fund and YES Ultra Short Term Fund
arrow Group-level resolution for crisis, debt unlikely: IL&FS board to NCLT
  The board is engaging with financial and transaction advisors to assess the vertical and asset-level resolution options
arrow Govt not to participate in LIC's open offer to buy 51% stake in IDBI Bank
  In a letter to the bank, the Government of India has confirmed that it will not participate in the open offer made by LIC
arrow Inflation data under scrutiny after RBI policy maker questions its efficacy
  Ravindra Dholakia's questions the data at a time when inflation continues to undershoot the RBI's forecasts
arrow Rupee opens 3 paise lower at 70.49 against US dollar
  Forex dealers said increased dollar demand from importers amid firming global crude oil prices and a strong dollar weighed on the rupee sentiment.
arrow ICICI Securities to deposit up to Rs 50k share sale amount in 30 minutes
  The facility will be available on 600 select stocks on the BSE representing 99 per cent of market capitalisation