☕ 23.05.2020: Today's Banking / Financial News at a Glance
🍒 RBI cuts repo rate by 40 bps to 4 per cent : The Reserve Bank of India (RBI) on Friday cut the repo rate from 4.40 per cent to 4 per cent. Repo rate is the interest rate at which the central bank provides funds to banks to overcome short-term liquidity mismatches.This rate cut decision was taken in an off-cycle meeting of the monetary policy committee (MPC). The reverse repo rate (the interest rate at which the central bank absorbs surplus funds from banks) has been cut from 3.75 per cent to 3.35 per cent - Business Line
🍒 RBI extends loan moratorium till Aug 31, silent on one-time restructuring : In a bid to provide relief to borrowers at a time when they are struggling with their cash flows, the Reserve Bank of India (RBI) has extended the moratorium on payment of installments for all term loans by another three months till August end. It has also extended the deferment of interest payment on working capital loans for three months more till August 31. The RBI had, on March 27, provided a three-month moratorium on term loans and working capital borrowings, which was to be in effect from March 1 to May 31. This facility now stands extended till August 31.On Friday, RBI governor Shaktikanta Das said, in view of the extension of the lockdown and continuing disruptions on account of covid-19, the moratorium is being extended by another three months from June 1, till August 31, taking the total period of applicability of the measures to six months (i.e. from March 1 to August 31). -Business Standard
🍒 RBI to auction G-Secs worth Rs 30,000 crore on May 29 : The government has announced to sell dated securities worth Rs 30,000 crore on May 29, the Reserve Bank of India (RBI) said in a statement on Friday. The auction is part of government's market borrowing programme. Earlier this month, the government had decided to modify the indicative calendar for issuance of government dated securities for the remaining part of the first half of the fiscal 2020-21 (May 11-September 30, 2020) after reviewing its cash position and requirements.The estimated gross market borrowing in the financial year 2020-21 will be Rs 12 lakh crore in place of Rs 7.80 lakh crore as per Budget Estimate (2020-21). The revision in borrowings was necessitated on account of the COVID-19 pandemic.- Moneycontrol.com
🍒 Banks let 124 companies slip into liquidation despite resolution plans : Indian banks let 124 companies slip into liquidation despite resolution plans that – at least theoretically – promised higher recoveries, data with the Insolvency and Bankruptcy Board of India (IBBI) showed. At the end of March, insolvency processes for 914 companies were closed. About 57% of the total insolvency cases closed ended in orders of liquidation, compared with 14% that ended in resolution plans. “The code envisages maximisation of value and not price,” wrote Dr M.S.Sahoo, chairman, IBBI, in the latest newsletter released by the bankruptcy regulator. “The value improves if business is continued and its assets are used more efficiently.” Sahoo added that efficiency could be brought in by a management change, acquisition or disposal of assets, restructuring of the company or turning around the business. - economic times
🍒 Deposits rise over Rs 2.8 lakh crore in six weeks of lockdown : Bank deposits have risen by over Rs 2.8 lakh crore in three fortnights of the lockdown till May 8, while bank credit during the period dipped by Rs 1.2 lakh crore, according to data released by the Reserve Bank of India. This has added nearly Rs 4 lakh crore to the liquidity in the banking system, resulting in a surge in investments by banks. A few days into the lockdown, on March 27, bank deposits stood at Rs 135.7 lakh crore. A fortnight later on April 10, outstanding deposits surged to Rs 137.1 lakh crore. In another two fortnights, by May 8, the deposits rose to Rs 138.5 lakh crore — a rise of Rs 2.8 lakh crore in the six weeks since March 27. These three fortnights also saw bank credit decline from Rs 103.7 lakh crore on March 27 to Rs 102.5 lakh crore on May 8 — a drop of Rs 1.2 lakh crore in six weeks. - Economic Times
🍒 RBI measures to help revive economy: SBI Chairman : The steps announced by the Reserve Bank of India including reduction in repo rate and extension of moratorium on term loans for another three months will help in quick revival of the economy, State Bank of India chairman Rajnish Kumar said. The RBI on Friday slashed repo rate by 40 basis points to 4 per cent. The central bank extended the moratorium period for the repayment of loans by another three months till August 31, 2020, and also increased bank exposure to corporates to 30 per cent of the group's net worth from the current limit of 25 per cent."The entire effort of the government and the RBI is to revive the growth in the economy and at the same time recognising the difficulties that industries are facing. All the measures around reduction in repo rate, moratorium and increase in the limit on group exposures will be helpful in revival of the economy," Kumar told reporters through a video call on Friday.The measures are a calibrated response to the situation which is emerging on account to the disruptions caused due to COVID-19, he said.Kumar said, so far, 20 per cent of the SBI borrowers have opted for the three-month moratorium.He said the extension of moratorium on repayment of loans will be helpful to the industry.Also, with the extension of moratorium, there is no urgent need for a dispensation from the RBI. "Right now, the moratorium will take care of the situation around the cash flow disruptions. I would not be obsessed with one-time restructuring at this particular point of time when we have time till August 31," he said. - Economic Times
🍒 About 20% SBI borrowers opt for loan repayment moratorium: Chairman : State Bank of India chairman Rajnish Kumar on Friday said close to 20 per cent of the bank's borrowers have opted for moratorium on repayment of term loans instalments. On March 27, the central bank had announced a three-month moratorium on payment of all term loans falling due between March 1, 2020 and May 31, 2020. On Friday, the Reserve Bank of India allowed banks and other lending institutions to extend the moratorium on loans by another three months -- from June 1, 2020 to August 31, 2020."In case of State Bank of India, the percentage (of borrowers who have opted for the moratorium) is very small, around 20 per cent," Kumar told reporters through a video conference.He said not all who have opted for the moratorium are facing any liquidity issue."Many of them could have serviced their loans but as a matter of strategy they would want to preserve their cash and have opted for the moratorium," he said.Kumar also advised borrowers to pay their loans if they are not facing any funding challenge. "If people are able to pay (EMIs) they should pay. If they are unable to pay then only they should take the benefit of the moratorium," he said. - Economic Times
🍒 Reserve Bank extends Rs 15,000-cr credit line to EXIM Bank : The Reserve Bank on Friday announced a Rs 15,000-crore line of credit to the Export-Import Bank of India, to help the sagging foreign trade. The central bank said Export-Import Bank of India (EXIM Bank) depends on foreign currency borrowings for its operations and as a result of the COVID-19 pandemic, it is unable to raise the resources, due to which the facility is being extended. "It has been decided to extend a line of credit of Rs 15,000 crore to the EXIM Bank for a period of 90 days from the date of availment with rollover up to a maximum period of one year so as to enable it to avail a US dollar swap facility to meet its foreign exchange requirements," Reserve Bank of India Governor Shaktikanta Das said. He said the country's export-import trade has suffered because of external demand crippling owing to the pandemic and decline in import of essential goods and services. - Economic Times
🍒 Centre to provide one-time partial guarantee to PSBs on NBFC bonds, CPs purchases : The Cabinet on May 21 approved modifications to the existing Partial Credit Guarantee Scheme (PCGS), raising the guarantee on first loss on purchase of bonds and commercial papers (rating of AA and below) by banks to up to 20 percent. This is a one-time partial credit guarantee offered by the government. It will remain open till March 31, 2021, on purchase of pooled assets and for the period as specified under the Scheme for purchase of Bonds or CPs, or till such date by which Rs 10,000 crore worth of guarantees, including both guarantees toward the purchase of pooled assets and Bonds or CPs, are provided by the Government, whichever is earlier. The facility has been extended for bonds and CPs of non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs) being bought by public sector banks (PSBs).- Moneycontrol.com
🍒 Sowing up by 35%, RBI sees silver lining in agriculture : The sowing of summer crops has progressed well covering 67.25 lakh hectare - 34.77% more than last year’s acreage. The Reserve Bank of India (RBI) is also pinning hopes on good harvest.Addressing the media on Friday RBI Governor Shaktikanta Das said, "There is a ray of hope from the normal monsoon. Kharif sowing is at a high. These developments would improve farm income and encourage trade.”The higher acreage is on account of intermittent rains during this period. The moisture content in the soil is suitable for the growth of crops.“We expect a good harvest as the water in major reservoirs across the country is around 50% more than last year,” said an agriculture ministry official.He said that the acreage of rice has gone up to 36.26% to 34.87 lakh ha. The area under coarse cereals is also up at 10.28 lakh ha area as against last year’s coverage of 7.30 lakh ha. during this time. “There is considerable swell on the acreage of oilseeds also. The area has gone up at 9.28 lakh ha area as against 7.34 lakh ha during the corresponding period of last year,” he said. The acreage of pulses has also risen by 32.57% to 12.82 lakh hectares. - Economic Times
🍒 Covid-19 crisis: Slippages may jump to Rs 5.5 trillion, says India Ratings : Stress emerging from the severe economic shock caused by steps to contain the pandemic may drive total slippages to Rs 5.5 trillion in FY21. The corporate side may see slippages of Rs 3.4 trillion, and non-corporate side — retail, farming and MSMEs — may account for Rs 2.1 trillion, according to India Ratings.Banks faced elevated provision pressure (amount set aside for stressed loans) resulting from the corporate stress cycle, from FY16-FY20. For this, they had made substantial provisions and were moving towards a moderated credit cost cycle. However, the Covid-related measures are likely to result in another cycle of stress. Additionally, the pressure on non-corporate segments, which were already visible before the outbreak, is likely to intensify, said the rating agency. - Business Standard
🍒 Govt seeks to raise Rs 14,000 cr from second tranche of Bharat Bond ETF : The government will be launching the second tranche of Bharat Bond ETF, seeking to raise Rs 14,000 crore in July. The two new Bharat Bond ETF series will have maturities of April 2025 and April 2031. The base issue size of the ETF is Rs 3,000 crore, with a green shoe option of Rs 11,000 crore based on market demand. "After an overwhelming response to the first tranche of Bharat Bond ETF in December last year, we are excited to announce this next tranche of two new maturity series. The launch is in line with our vision to create a ladder of Bharat Bond ETFs across various maturities on the yield curve. This will provide more options for investors to match their investment needs with different time horizons," said Radhika Gupta, chief executive officer of Edelweiss Mutual Fund (MF).- Business Standard
🍒 3 months for PSBs to build PCGS 2.0 portfolio : Public sector banks have three months to build up their portfolios to be eligible for the extended Partial Credit Guarantee Scheme (PCGS 2.0), which will be based on actual amounts disbursed within this period, according to guidelines released by the finance ministry on Thursday. Finance minister Nirmala Sitharaman announced extension of the scheme as part of the government’s Rs 20 lakh crore Atmanirbhar package. It was cleared by the Cabinet on Wednesday. Under the scheme, public sector banks can purchase pooled assets rated BBB+ or above and bonds or commercial paper (CPs) rated AA and below based on ratings on the date of the transaction. However, pooled debt instruments and bonds and CPs issued in the secondary markets are not covered. - economic times
🍒 GDP growth in 2020-21 likely to be negative: RBI Governor : The Reserve Bank on India (RBI) on Friday said India's gross domestic product (GDP) growth will be in negative territory in 2020-21 as the outbreak of coronavirus has disrupted economic activities. In a televised address, RBI Governor Shaktikanta Das said the global economy is heading into recession. He also said inflation outlook is "highly uncertain"."Domestic economic activity has been impacted severely by the two-month lockdown," he said and added that the top-six industrialised states that account for 60 per cent of India's industrial output are largely in red and orange zones.He said high-frequency indicators point to collapse in demand, and there is a plunge in demand for electricity and petroleum productions. The biggest blow is to private consumption that accounts for 60 per cent of domestic demand, the governor said.- economic times
🍒 Beware of cyber criminals exploiting Covid-19 situation, SBI tells customers via meme : The buzz around the recently launched web series ‘Paatal Lok (underworld in Hindu mythology) seems to have prompted State Bank of India (SBI) to create a meme on its Twitter handle cautioning customers that cyber criminals from this ‘Lok’ are using Cerberus Trojan (malicious software) to steal financial data. India’s largest bank asked its customers to beware of fake SMSs claiming to provide big offers or information on the current Covid-19 pandemic via unknown links or downloading apps from unknown sources. In Hindu mythology, Paatal lok is one of the three Loks (worlds). The other two are ‘Swarg lok’ (heaven) and ‘Dharti lok’ (earth). The bank used the analogy of the three worlds to tell its customers about the do’s and don’ts of digital banking. - Business Line
🍒 RBL Bank launches contactless banking initiatives : RBL Bank on Friday announced the launch of several contactless banking initiatives including services on WhatsApp with real-time updates with information on account balance, credit cards, products and even opening of new digital account.It has also introduced instant digital bank account opening with video KYC as well as a virtual debit card in its Mobile app, that would enable contactless transactions without the need for plastic cards. “Aligned to the New Normal of social distancing and contactless transactions, RBL Bank, goes live with several contactless banking initiatives, eliminating the need for physical contact amidst these unprecedented times of COVID-19,” it said in a statement. - Business Line
🍒 Cholamandalam Investment & Finance partners with Maruti Suzuki for flexible car loan schemes : Cholamandalam Investment & Finance Company Ltd (CIFCL) and Maruti Suzuki India Ltd have entered into a vehicle retail financing partnership. Under the tie-up, a new scheme called “‘Buy Now Pay Later’ will offer flexibility to Maruti car buyers to pay EMIs after two months of availing the loan. The partners believe that the scheme will help customers in realising their car dreams without postponing their purchase any further. A two-month deferment of EMI will bring advantage to car customers who currently are under resource crunch amidst the Covid-19 pandemic. The scheme will make the process of car buying more convenient in these unprecedented times, said a company statement. “This partnership will give us a strong foothold in the car financing space, with our 1094 branches spread across semi-urban and rural markets. The synergies between the organisations are aimed towards singular focus to bring benefits to the customers,” said Ravindra Kundu, Executive Director, CIFCL. - Business Line
🍒 Lenders have recovered money in just 14% of cases resolved by NCLT: Report : Financial and operational creditors have managed to recover money in just 221 cases, or 14 per cent, of the 1,604 cases resolved by the National Company Law Tribunal (NCLT) till March-end. In the three years ended March 31, there were about 2,170 cases pending before various Benches of the NCLT, taking the overall cases admitted for resolution to 3,774. The NCLT ordered liquidation in 914 cases (57 per cent) while 312 cases (19 per cent) went on appeal and about 157 litigations (10 per cent) were withdrawn, said Motilal Oswal Research’s three-year report card on the Insolvency and Bankruptcy Code (IBC). Interestingly, of the 914 cases where liquidation was ordered, the final report was submitted for just 69. - Business Line
🍒 IDFC First Bank Q4 results: Bank posts profit at Rs 71.54 crore, NII growth at 40% : Buoyed by growth across parameters and fall in provisions, IDFC First Bank on May 22 reported profit at Rs 71.54 crore for the quarter ended March 2020. It had posted loss of Rs 218 crore in year-ago quarter and loss of Rs 1,639 crore crore in December quarter 2019.Net interest income for the quarter surged 40.5 percent (up 1.9 percent QoQ) to Rs 1,563.5 crore with net interest margin expanding to 4.24 percent (against 3.03 percent YoY). Total funded loan assets, gross of inter-bank participation certificates (IBPC) stood at Rs 1,07,004 crore for Q4FY20, compared to Rs 1,10,400 crore for Q4 FY19," IDFC First Bank said, adding retail loan book increased by 40 percent to Rs 57,310 crore as on March 2020 YoY while wholesale book decreased by 27 percent to Rs 39,388 crore YoY. Core deposits (retail CASA and retail term deposits) increased 157 percent to Rs 33,924 crore in Q4FY20, it added.- Moneycontrol.com
🍒 India's forex reserves rise $1.73 billion to $487.04 billion : The country's foreign exchange reserves increased by $1.73 billion to $487.04 billion in the week to May 15, which is equivalent to 12 months of imports, according to the Reserve Bank of India. Between April 1 and May 15, the foreign exchange reserves have increased by $9.2 billion. In the week ended May 8, the reserves had surged by $4.23 billion to $485.31 billion. It had touched a life-time high of $487.23 billion in the week to March 6, after it rose by $5.69 billion. - Moneycontrol.com
🍒 Market updates: Sensex closes 260 points lower at 30,672 as RBI measures fail to cheer investors : Equity benchmark BSE Sensex tumbled 260 points on Friday, dragged by losses in banking and financial stocks as RBI’s rate cut and other measures to prop up the economy failed to meet market expectations. After falling over 450 points during the day, the 30-share index ended 260.31 points or 0.84 per cent lower at 30,672.59.The broader NSE Nifty too settled 67 points or 0.74 per cent down at 9,039.25.Axis Bank was the top laggard in the Sensex pack, plunging more than 5 per cent, followed by HDFC, Bajaj Finance, ICICI Bank, Tata Steel, Bajaj Auto, HDFC Bank and IndusInd Bank. On the other hand, M&M, Infosys, Asian Paints, UltraTech Cement and Tech Mahindra were among the gainers.
🍒 Gold surpasses Rs 47,000/10 gm mark, silver slips : Gold prices gained Rs 212 to Rs 47,100 per 10 gram in Mumbai on the back of a weaker dollar-rupee, escalating tension between the US and China and worries over a global economic recovery.The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 35,325, Rs 43,144 and Rs 47,100 plus 3 percent GST. Silver prices fell Rs 255 to Rs 47,045 per kg from its closing on May 21.
🍒 Indian rupee falls 34 paise to close at 75.95 against US dollar : The rupee depreciated 34 paise to provisionally close at 75.95 against the US dollar on Friday as the Reserve Bank of India's rate cut move failed to cheer investor sentiment.
🍒 Shares of Central Bank of India in Stock Market : . In BSE, shares closed at Rs.13.50 against Rs.13.70. In NSE, shares closed Rs.13.45 against Rs.13.70.
Have a Good day.
🍒 RBI cuts repo rate by 40 bps to 4 per cent : The Reserve Bank of India (RBI) on Friday cut the repo rate from 4.40 per cent to 4 per cent. Repo rate is the interest rate at which the central bank provides funds to banks to overcome short-term liquidity mismatches.This rate cut decision was taken in an off-cycle meeting of the monetary policy committee (MPC). The reverse repo rate (the interest rate at which the central bank absorbs surplus funds from banks) has been cut from 3.75 per cent to 3.35 per cent - Business Line
🍒 RBI extends loan moratorium till Aug 31, silent on one-time restructuring : In a bid to provide relief to borrowers at a time when they are struggling with their cash flows, the Reserve Bank of India (RBI) has extended the moratorium on payment of installments for all term loans by another three months till August end. It has also extended the deferment of interest payment on working capital loans for three months more till August 31. The RBI had, on March 27, provided a three-month moratorium on term loans and working capital borrowings, which was to be in effect from March 1 to May 31. This facility now stands extended till August 31.On Friday, RBI governor Shaktikanta Das said, in view of the extension of the lockdown and continuing disruptions on account of covid-19, the moratorium is being extended by another three months from June 1, till August 31, taking the total period of applicability of the measures to six months (i.e. from March 1 to August 31). -Business Standard
🍒 RBI to auction G-Secs worth Rs 30,000 crore on May 29 : The government has announced to sell dated securities worth Rs 30,000 crore on May 29, the Reserve Bank of India (RBI) said in a statement on Friday. The auction is part of government's market borrowing programme. Earlier this month, the government had decided to modify the indicative calendar for issuance of government dated securities for the remaining part of the first half of the fiscal 2020-21 (May 11-September 30, 2020) after reviewing its cash position and requirements.The estimated gross market borrowing in the financial year 2020-21 will be Rs 12 lakh crore in place of Rs 7.80 lakh crore as per Budget Estimate (2020-21). The revision in borrowings was necessitated on account of the COVID-19 pandemic.- Moneycontrol.com
🍒 Banks let 124 companies slip into liquidation despite resolution plans : Indian banks let 124 companies slip into liquidation despite resolution plans that – at least theoretically – promised higher recoveries, data with the Insolvency and Bankruptcy Board of India (IBBI) showed. At the end of March, insolvency processes for 914 companies were closed. About 57% of the total insolvency cases closed ended in orders of liquidation, compared with 14% that ended in resolution plans. “The code envisages maximisation of value and not price,” wrote Dr M.S.Sahoo, chairman, IBBI, in the latest newsletter released by the bankruptcy regulator. “The value improves if business is continued and its assets are used more efficiently.” Sahoo added that efficiency could be brought in by a management change, acquisition or disposal of assets, restructuring of the company or turning around the business. - economic times
🍒 Deposits rise over Rs 2.8 lakh crore in six weeks of lockdown : Bank deposits have risen by over Rs 2.8 lakh crore in three fortnights of the lockdown till May 8, while bank credit during the period dipped by Rs 1.2 lakh crore, according to data released by the Reserve Bank of India. This has added nearly Rs 4 lakh crore to the liquidity in the banking system, resulting in a surge in investments by banks. A few days into the lockdown, on March 27, bank deposits stood at Rs 135.7 lakh crore. A fortnight later on April 10, outstanding deposits surged to Rs 137.1 lakh crore. In another two fortnights, by May 8, the deposits rose to Rs 138.5 lakh crore — a rise of Rs 2.8 lakh crore in the six weeks since March 27. These three fortnights also saw bank credit decline from Rs 103.7 lakh crore on March 27 to Rs 102.5 lakh crore on May 8 — a drop of Rs 1.2 lakh crore in six weeks. - Economic Times
🍒 RBI measures to help revive economy: SBI Chairman : The steps announced by the Reserve Bank of India including reduction in repo rate and extension of moratorium on term loans for another three months will help in quick revival of the economy, State Bank of India chairman Rajnish Kumar said. The RBI on Friday slashed repo rate by 40 basis points to 4 per cent. The central bank extended the moratorium period for the repayment of loans by another three months till August 31, 2020, and also increased bank exposure to corporates to 30 per cent of the group's net worth from the current limit of 25 per cent."The entire effort of the government and the RBI is to revive the growth in the economy and at the same time recognising the difficulties that industries are facing. All the measures around reduction in repo rate, moratorium and increase in the limit on group exposures will be helpful in revival of the economy," Kumar told reporters through a video call on Friday.The measures are a calibrated response to the situation which is emerging on account to the disruptions caused due to COVID-19, he said.Kumar said, so far, 20 per cent of the SBI borrowers have opted for the three-month moratorium.He said the extension of moratorium on repayment of loans will be helpful to the industry.Also, with the extension of moratorium, there is no urgent need for a dispensation from the RBI. "Right now, the moratorium will take care of the situation around the cash flow disruptions. I would not be obsessed with one-time restructuring at this particular point of time when we have time till August 31," he said. - Economic Times
🍒 About 20% SBI borrowers opt for loan repayment moratorium: Chairman : State Bank of India chairman Rajnish Kumar on Friday said close to 20 per cent of the bank's borrowers have opted for moratorium on repayment of term loans instalments. On March 27, the central bank had announced a three-month moratorium on payment of all term loans falling due between March 1, 2020 and May 31, 2020. On Friday, the Reserve Bank of India allowed banks and other lending institutions to extend the moratorium on loans by another three months -- from June 1, 2020 to August 31, 2020."In case of State Bank of India, the percentage (of borrowers who have opted for the moratorium) is very small, around 20 per cent," Kumar told reporters through a video conference.He said not all who have opted for the moratorium are facing any liquidity issue."Many of them could have serviced their loans but as a matter of strategy they would want to preserve their cash and have opted for the moratorium," he said.Kumar also advised borrowers to pay their loans if they are not facing any funding challenge. "If people are able to pay (EMIs) they should pay. If they are unable to pay then only they should take the benefit of the moratorium," he said. - Economic Times
🍒 Reserve Bank extends Rs 15,000-cr credit line to EXIM Bank : The Reserve Bank on Friday announced a Rs 15,000-crore line of credit to the Export-Import Bank of India, to help the sagging foreign trade. The central bank said Export-Import Bank of India (EXIM Bank) depends on foreign currency borrowings for its operations and as a result of the COVID-19 pandemic, it is unable to raise the resources, due to which the facility is being extended. "It has been decided to extend a line of credit of Rs 15,000 crore to the EXIM Bank for a period of 90 days from the date of availment with rollover up to a maximum period of one year so as to enable it to avail a US dollar swap facility to meet its foreign exchange requirements," Reserve Bank of India Governor Shaktikanta Das said. He said the country's export-import trade has suffered because of external demand crippling owing to the pandemic and decline in import of essential goods and services. - Economic Times
🍒 Centre to provide one-time partial guarantee to PSBs on NBFC bonds, CPs purchases : The Cabinet on May 21 approved modifications to the existing Partial Credit Guarantee Scheme (PCGS), raising the guarantee on first loss on purchase of bonds and commercial papers (rating of AA and below) by banks to up to 20 percent. This is a one-time partial credit guarantee offered by the government. It will remain open till March 31, 2021, on purchase of pooled assets and for the period as specified under the Scheme for purchase of Bonds or CPs, or till such date by which Rs 10,000 crore worth of guarantees, including both guarantees toward the purchase of pooled assets and Bonds or CPs, are provided by the Government, whichever is earlier. The facility has been extended for bonds and CPs of non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs) being bought by public sector banks (PSBs).- Moneycontrol.com
🍒 Sowing up by 35%, RBI sees silver lining in agriculture : The sowing of summer crops has progressed well covering 67.25 lakh hectare - 34.77% more than last year’s acreage. The Reserve Bank of India (RBI) is also pinning hopes on good harvest.Addressing the media on Friday RBI Governor Shaktikanta Das said, "There is a ray of hope from the normal monsoon. Kharif sowing is at a high. These developments would improve farm income and encourage trade.”The higher acreage is on account of intermittent rains during this period. The moisture content in the soil is suitable for the growth of crops.“We expect a good harvest as the water in major reservoirs across the country is around 50% more than last year,” said an agriculture ministry official.He said that the acreage of rice has gone up to 36.26% to 34.87 lakh ha. The area under coarse cereals is also up at 10.28 lakh ha area as against last year’s coverage of 7.30 lakh ha. during this time. “There is considerable swell on the acreage of oilseeds also. The area has gone up at 9.28 lakh ha area as against 7.34 lakh ha during the corresponding period of last year,” he said. The acreage of pulses has also risen by 32.57% to 12.82 lakh hectares. - Economic Times
🍒 Covid-19 crisis: Slippages may jump to Rs 5.5 trillion, says India Ratings : Stress emerging from the severe economic shock caused by steps to contain the pandemic may drive total slippages to Rs 5.5 trillion in FY21. The corporate side may see slippages of Rs 3.4 trillion, and non-corporate side — retail, farming and MSMEs — may account for Rs 2.1 trillion, according to India Ratings.Banks faced elevated provision pressure (amount set aside for stressed loans) resulting from the corporate stress cycle, from FY16-FY20. For this, they had made substantial provisions and were moving towards a moderated credit cost cycle. However, the Covid-related measures are likely to result in another cycle of stress. Additionally, the pressure on non-corporate segments, which were already visible before the outbreak, is likely to intensify, said the rating agency. - Business Standard
🍒 Govt seeks to raise Rs 14,000 cr from second tranche of Bharat Bond ETF : The government will be launching the second tranche of Bharat Bond ETF, seeking to raise Rs 14,000 crore in July. The two new Bharat Bond ETF series will have maturities of April 2025 and April 2031. The base issue size of the ETF is Rs 3,000 crore, with a green shoe option of Rs 11,000 crore based on market demand. "After an overwhelming response to the first tranche of Bharat Bond ETF in December last year, we are excited to announce this next tranche of two new maturity series. The launch is in line with our vision to create a ladder of Bharat Bond ETFs across various maturities on the yield curve. This will provide more options for investors to match their investment needs with different time horizons," said Radhika Gupta, chief executive officer of Edelweiss Mutual Fund (MF).- Business Standard
🍒 3 months for PSBs to build PCGS 2.0 portfolio : Public sector banks have three months to build up their portfolios to be eligible for the extended Partial Credit Guarantee Scheme (PCGS 2.0), which will be based on actual amounts disbursed within this period, according to guidelines released by the finance ministry on Thursday. Finance minister Nirmala Sitharaman announced extension of the scheme as part of the government’s Rs 20 lakh crore Atmanirbhar package. It was cleared by the Cabinet on Wednesday. Under the scheme, public sector banks can purchase pooled assets rated BBB+ or above and bonds or commercial paper (CPs) rated AA and below based on ratings on the date of the transaction. However, pooled debt instruments and bonds and CPs issued in the secondary markets are not covered. - economic times
🍒 GDP growth in 2020-21 likely to be negative: RBI Governor : The Reserve Bank on India (RBI) on Friday said India's gross domestic product (GDP) growth will be in negative territory in 2020-21 as the outbreak of coronavirus has disrupted economic activities. In a televised address, RBI Governor Shaktikanta Das said the global economy is heading into recession. He also said inflation outlook is "highly uncertain"."Domestic economic activity has been impacted severely by the two-month lockdown," he said and added that the top-six industrialised states that account for 60 per cent of India's industrial output are largely in red and orange zones.He said high-frequency indicators point to collapse in demand, and there is a plunge in demand for electricity and petroleum productions. The biggest blow is to private consumption that accounts for 60 per cent of domestic demand, the governor said.- economic times
🍒 Beware of cyber criminals exploiting Covid-19 situation, SBI tells customers via meme : The buzz around the recently launched web series ‘Paatal Lok (underworld in Hindu mythology) seems to have prompted State Bank of India (SBI) to create a meme on its Twitter handle cautioning customers that cyber criminals from this ‘Lok’ are using Cerberus Trojan (malicious software) to steal financial data. India’s largest bank asked its customers to beware of fake SMSs claiming to provide big offers or information on the current Covid-19 pandemic via unknown links or downloading apps from unknown sources. In Hindu mythology, Paatal lok is one of the three Loks (worlds). The other two are ‘Swarg lok’ (heaven) and ‘Dharti lok’ (earth). The bank used the analogy of the three worlds to tell its customers about the do’s and don’ts of digital banking. - Business Line
🍒 RBL Bank launches contactless banking initiatives : RBL Bank on Friday announced the launch of several contactless banking initiatives including services on WhatsApp with real-time updates with information on account balance, credit cards, products and even opening of new digital account.It has also introduced instant digital bank account opening with video KYC as well as a virtual debit card in its Mobile app, that would enable contactless transactions without the need for plastic cards. “Aligned to the New Normal of social distancing and contactless transactions, RBL Bank, goes live with several contactless banking initiatives, eliminating the need for physical contact amidst these unprecedented times of COVID-19,” it said in a statement. - Business Line
🍒 Cholamandalam Investment & Finance partners with Maruti Suzuki for flexible car loan schemes : Cholamandalam Investment & Finance Company Ltd (CIFCL) and Maruti Suzuki India Ltd have entered into a vehicle retail financing partnership. Under the tie-up, a new scheme called “‘Buy Now Pay Later’ will offer flexibility to Maruti car buyers to pay EMIs after two months of availing the loan. The partners believe that the scheme will help customers in realising their car dreams without postponing their purchase any further. A two-month deferment of EMI will bring advantage to car customers who currently are under resource crunch amidst the Covid-19 pandemic. The scheme will make the process of car buying more convenient in these unprecedented times, said a company statement. “This partnership will give us a strong foothold in the car financing space, with our 1094 branches spread across semi-urban and rural markets. The synergies between the organisations are aimed towards singular focus to bring benefits to the customers,” said Ravindra Kundu, Executive Director, CIFCL. - Business Line
🍒 Lenders have recovered money in just 14% of cases resolved by NCLT: Report : Financial and operational creditors have managed to recover money in just 221 cases, or 14 per cent, of the 1,604 cases resolved by the National Company Law Tribunal (NCLT) till March-end. In the three years ended March 31, there were about 2,170 cases pending before various Benches of the NCLT, taking the overall cases admitted for resolution to 3,774. The NCLT ordered liquidation in 914 cases (57 per cent) while 312 cases (19 per cent) went on appeal and about 157 litigations (10 per cent) were withdrawn, said Motilal Oswal Research’s three-year report card on the Insolvency and Bankruptcy Code (IBC). Interestingly, of the 914 cases where liquidation was ordered, the final report was submitted for just 69. - Business Line
🍒 IDFC First Bank Q4 results: Bank posts profit at Rs 71.54 crore, NII growth at 40% : Buoyed by growth across parameters and fall in provisions, IDFC First Bank on May 22 reported profit at Rs 71.54 crore for the quarter ended March 2020. It had posted loss of Rs 218 crore in year-ago quarter and loss of Rs 1,639 crore crore in December quarter 2019.Net interest income for the quarter surged 40.5 percent (up 1.9 percent QoQ) to Rs 1,563.5 crore with net interest margin expanding to 4.24 percent (against 3.03 percent YoY). Total funded loan assets, gross of inter-bank participation certificates (IBPC) stood at Rs 1,07,004 crore for Q4FY20, compared to Rs 1,10,400 crore for Q4 FY19," IDFC First Bank said, adding retail loan book increased by 40 percent to Rs 57,310 crore as on March 2020 YoY while wholesale book decreased by 27 percent to Rs 39,388 crore YoY. Core deposits (retail CASA and retail term deposits) increased 157 percent to Rs 33,924 crore in Q4FY20, it added.- Moneycontrol.com
🍒 India's forex reserves rise $1.73 billion to $487.04 billion : The country's foreign exchange reserves increased by $1.73 billion to $487.04 billion in the week to May 15, which is equivalent to 12 months of imports, according to the Reserve Bank of India. Between April 1 and May 15, the foreign exchange reserves have increased by $9.2 billion. In the week ended May 8, the reserves had surged by $4.23 billion to $485.31 billion. It had touched a life-time high of $487.23 billion in the week to March 6, after it rose by $5.69 billion. - Moneycontrol.com
🍒 Market updates: Sensex closes 260 points lower at 30,672 as RBI measures fail to cheer investors : Equity benchmark BSE Sensex tumbled 260 points on Friday, dragged by losses in banking and financial stocks as RBI’s rate cut and other measures to prop up the economy failed to meet market expectations. After falling over 450 points during the day, the 30-share index ended 260.31 points or 0.84 per cent lower at 30,672.59.The broader NSE Nifty too settled 67 points or 0.74 per cent down at 9,039.25.Axis Bank was the top laggard in the Sensex pack, plunging more than 5 per cent, followed by HDFC, Bajaj Finance, ICICI Bank, Tata Steel, Bajaj Auto, HDFC Bank and IndusInd Bank. On the other hand, M&M, Infosys, Asian Paints, UltraTech Cement and Tech Mahindra were among the gainers.
🍒 Gold surpasses Rs 47,000/10 gm mark, silver slips : Gold prices gained Rs 212 to Rs 47,100 per 10 gram in Mumbai on the back of a weaker dollar-rupee, escalating tension between the US and China and worries over a global economic recovery.The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 35,325, Rs 43,144 and Rs 47,100 plus 3 percent GST. Silver prices fell Rs 255 to Rs 47,045 per kg from its closing on May 21.
🍒 Indian rupee falls 34 paise to close at 75.95 against US dollar : The rupee depreciated 34 paise to provisionally close at 75.95 against the US dollar on Friday as the Reserve Bank of India's rate cut move failed to cheer investor sentiment.
🍒 Shares of Central Bank of India in Stock Market : . In BSE, shares closed at Rs.13.50 against Rs.13.70. In NSE, shares closed Rs.13.45 against Rs.13.70.
Have a Good day.
No comments:
Post a Comment