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Tuesday, June 30, 2020
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Today's Banking / Financial News at a Glance 30.06.2020
☕ 30.06.2020: Today's Banking / Financial News at a Glance
🍒 Central Bank of India Q4 net loss narrows to ₹1,529 crore : Central Bank of India’s net loss narrowed to ₹1,529 crore in the fourth quarter ended March 31, 2020, against ₹2,477 crore in the year-ago quarter. The public sector bank, which is currently under prompt corrective action, had reported a net profit of ₹155 crore in the quarter ended December 31, 2019. Net interest income (difference between interest earned and interest expended) was up 20 per cent year-on-year at ₹1,926 crore (₹1,603 crore in the year-ago quarter). Other income, comprising commission/ exchange, profit on sale of investments, recovery in written-off accounts and profit on exchange transactions, was down 30.51 per cent y-o-y at ₹795 crore (₹1,144 crore in the year-ago quarter). Operating profit was down 66 per cent at ₹517 crore (₹1,519 crore in the year-ago quarter). Provisions : Loan-loss provision burden came down 64 per cent y-o-y to ₹1,628 crore (₹4,583 crore). However, provision on investments rose 65 per cent y-o-y to ₹445 crore (₹270 crore). Provision on standard assets, too, rose to ₹167 crore against a write-back of ₹89 crore in the year-ago period. The bank, as a prudent measure, has made an additional provision of ₹307 crore in respect of one borrower classified as substandard asset (NPA) in the quarter ended March 31due to uncertainty of recovery. As per the notes to accounts, Central Bank extended moratorium on advance accounts of ₹33,577 crore, which were special mention account (SMA)/overdue category as on March 1. Further, it has extended the benefit of asset classification in advances accounts having outstanding of ₹2,865 crore and has made provision of ₹143 crore on these advances amount to during current quarter. Gross non-performing assets (NPAs) declined to 18.92 per cent of gross advances as of March-end 2020 against 19.99 per cent as of December-end 2019. Net NPAs position improved to 7.63 per cent of gross advances as of March-end 2020 against 9.26 per cent as of December-end 2019. - Business Line
🍒 IOB converts landmine of NPAs into goldmine, says CEO : Indian Overseas Bank (IOB), which has been under the Reserve Bank of India’s prompt corrective action (PCA) since October 2015, is now out of the woods, says Karnam Sekar, MD and CEO. He strongly feels that the regulator may not have second thoughts on taking the bank out of the PCA as it has diligently undertaken course correction to ensure that it is not in breach of any of the risk thresholds. The ‘landmine’ of non-performing assets (NPAs) in the public sector bank has now been converted into a ‘goldmine’ due to aggressive provisioning over the last few quarters, emphasised Sekar in an interview with BusinessLine. The bank now has to only dig (undertake recovery) so that it can write-back the provisions to bolster the bottomline every year, he added. In an interesting twist of fate, the Sri Venkateswara Agricultural University (Tirupati) graduate will retire on June 30 from the very bank that handed him his first job appointment letter as Probationary Officer (PO) in 1983. Sekar, however, started his 37-year long banking career with State Bank of India in the same year. - Business Line
🍒 Top public sector banks have loans worth at least ₹7.9 tn under moratorium : The top five state-owned banks in India have at least ₹7.9 trillion of loans under moratorium, including loans to borrowers whose loans became stressed even before the Covid-19 pandemic hit cashflows and repayment capabilities. While this is only a partial picture, and the total amout of loans under moratorium for these five banks could eventually be much higher, it does provide an early indication of Covid-19's impact on repayment capabilities. The five banks are State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB), Bank of India and Canara Bank. Also, in the absence of any standard disclosure format, different banks have used different metrics for moratorium disclosures. - Live Mint
🍒 COVID-19 impact: RBI may opt for loan recast for select sectors : The Reserve Bank of India (RBI) has begun spadework for a one-time loan restructuring scheme for some sectors severely hit by the COVID-19 pandemic, according to sources. The Indian Banks' Association (IBA) and many other bodies have made representation to both the government and the RBI for the one-time restructuring in the wake of massive disruptions caused by the pandemic. The central bank has taken note of all the suggestions, and a detailed examination of various recommendations are being undertaken, the sources said.Based on the assessment, contours would be framed for the sector that may be eligible for the loan recast, the sources said adding that something in this respect should come towards the end of August when the six-month moratorium comes to an end. Some of the sectors that may compete for loan recast are hospitality, tourism, aviation and construction. - economic times
🍒 RBI to conduct fresh OMO purchase of govt securities : The Reserve Bank of India (RBI) has decided to conduct simultaneous purchase of Government Securities (G-Secs), maturing between 2027 and 2031, and sale of 182 day and 364 day treasury bills (DTBs) under Open Market Operations (OMO) for ₹10,000 crore each on July 2. The decision to conduct special OMO follows review of current and evolving liquidity and market conditions, the RBI said in a statement. Specifically, the central bank will be purchasing four G-Secs or GS – 6.79 per cent GS 2027; 7.26 per cent GS 2029; 6.68 per cent GS 2031; and 6.57 per cent GS 2033 – using the multiple price auction method aggregating ₹10,000 crore. The RBI said there is no security-wise notified amount. The RBI will be selling four DTBs – two 182 DTBs maturing on October 15 and October 22, 2020; and two 364 DTBs maturing on April 22 and April 29, 2021. The RBI said there is no security-wise notified amount. - Business Line
🍒 Axis Bank appoints LIC MD T C Suseel Kumar on its board : Axis Bank on Monday appointed Life Insurance Corporation of India (LIC) managing director T C Suseel Kumar on its board as non-executive member. LIC is one of the promoters of Axis Bank. The proposal relating to the appointment of Kumar as the additional non-executive (nominee) director of the bank will be subject to the approval of shareholders at the 26th Annual General Meeting, Axis Bank said in a regulatory filing. - Financial Express
🍒 Yes Bank to auction Essel, SKIL Infra properties in July to recover dues : Yes Bank will next month auction properties of Essel group firm Essel Infraprojects and SKIL Infra to recover dues of Rs 1,368.16 crore. The private bank on July 8 will auction properties owned by Essel Infraprojects in Mumbai. It has also put under the hammer properties owned by another group firm Rama Associates. It selling properties to recover dues of Rs 556.53 crore, according to public notice by Yes Bank. The bank took symbolic possession of their properties on January 8 and 10, 2020, the notice said. The sale of immovable assets is under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002. "The e-auction will take place on July 8, 2020, for recovery of Rs 556,52,30,349.63 as on November 6, 2019, together with further interest, costs, charges and expenses thereon with effect from November 7, 2019, due to the secured creditor from Essel Infraprojects Ltd (borrower or mortgagor 1) and Rama Associates Ltd (mortgagor 2)," according to the auction notice. - Business Line
🍒 Dhanlaxmi Bank chairman resigns 8 months before end of tenure : Kerala-based private sector lender Dhanlaxmi Bank said on Monday that Sanjeev Krishnan, part-time chairman and independent director has resigned from his role, with eight months of his term still remaining. The bank said in a regulatory filing on Monday that the Krishnan has resigned with effect from 29 June, citing personal reasons. He was appointed on the board of the bank in February 2018. Speaking to Mint over phone, Krishnan said that the Reserve Bank of India (RBI) had appointed him to effect a turnaround in the bank and he has now resigned after the bank made profit of ₹65.78 crore in FY20. “I was appointed for a very specific purpose, which I now think I have been able to achieve and therefore did not want to continue in my post," said Krishnan. - Live Mint
🍒 RBI needs to revisit policy restricting big corporates from promoting banks: R Gandhi : Former RBI deputy governor R Gandhi on Monday said the central bank needs to relook at rules restricting large corporates from promoting banks and allow single entity to hold up to 26 per cent by having the necessary safeguards. He said the needs and aspirations of the Indian economy make it necessary to look at sources of large capital from entering the banking fray, so that large projects can be supported and also pitched for a renewed thrust to be given to the wholesale banks model.Gandhi, who used to take care of the critical banking regulation and supervision functions at the Reserve Bank, said in the last four years since the central bank made licensing for universal 'on-tap', no serious application has been received for floating banks.The comments come in the backdrop of the RBI forming an internal working group to look into private bank ownership and control earlier this month, which will look at promoters' holding, requirement of dilution, control and voting rights of private banks. "In my view, obviously, such a serious stake as 26 pc for a promoter or a strategic investor will certainly be good for the long term interest of the bank and banking industry," Gandhi said, speaking at a seminar organised by EPS, a payment system company. - economic times
🍒 RBI seeks extension for Monetary Policy Committee members : The Reserve Bank of India is seeking extension of the tenure of external members on its rate-setting panel until March due to the Covid-19 pandemic, government officials with knowledge of the matter said. The central bank has written to the Finance Ministry and the letter is under consideration, the officials said, asking not to be identified as the matter is not public. Three of the six-member Monetary Policy Committee are external representatives and their appointment is for a term of four years and they are ineligible for re-appointment, according to rules.The term of academics Chetan Ghate, Pami Dua and Ravindra Dholakia -- the external members appointed to the MPC in 2016 with a mandate to target consumer prices within a range of 2%-6% -- is due to end in September. RBI Governor Shaktikanta Das, his deputy Michael Patra and executive director Janak Raj are the others who make up the panel. Spokesmen for the Finance Ministry as well as that of the central bank were not immediately available for a comment. - economic times
🍒 Fintech, digital lenders launch schemes for MSME credit : As banks are being prodded by the government to extend liquidity support to micro, small and medium enterprises (MSMEs), a number of digital lenders and non-bank finance companies are jumping aboard to offer fast credit solutions to these firms. In recent weeks, many such players have announced plans to provide funding to the sector, which needs ready cash solutions to restart operations after the Covid-induced lockdown. For instance, U GRO Capital, a technology-first, small-business lending platform, plans to roll out an end-to-end digital lending platform for the sector and plans to reach out to five lakh MSME clients. To be launched on July 1, the Sanjeevani platform will offer unsecured loans between ₹10 lakh and ₹25 lakh for a duration of two to 36 months, and secured loans between ₹50 lakh and ₹2 crore for seven to 10 years. It also plans to offer an in-built, up-front, moratorium up to three months to aid businesses whose working capital cycles have been disrupted either by supply-chain breakages, labour issues or adverse cash flows during the national lockdown. - Business Line
🍒 HDFC Bank plans to raise up to Rs 50,000 crore through bond issuances : Private sector lender HDFC Bank plans to raise up to Rs 50,000 crore by issuance of unsecured perpetual debt Instruments, Tier II Capital Bonds and Long Term Bonds in the domestic market in one or more tranches. The bank will consider "to Issue Unsecured Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable
housing) on a private placement basis and in this regard to consider and, if thought fit, to pass the following resolution, as a special resolution," it said. The plan is among the agenda items listed for the annual general meeting on July 18, the bank said. The agenda also includes the appointment of Renu Karnad as a non-executive director and reappointment of Kaizad Bharucha as an executive director. - Moneycontrol.com
🍒 Bullish on India, Mastercard plans to invest $1 billion in next five years : Mastercard, a technology company in the global payments industry, remains committed to invest $1 billion in India over the next five years despite ongoing Covid-19 challenges. The proposed investments, which will be on top of the $1 billion that Mastercard invested in Indian market in the last five years, will be focussed on building digital payment infrastructure and providing technology and innovation in the digital payments space, said Vikas Varma, Chief Operating Officer, South Asia, Mastercard. “Mastercard remains bullish in this market and completely relentless in the way we commit ourselves to the growth potential of the Indian market. The current Covid-19 situation may have led to volume contraction (in April to June quarter), but in general, we don’t see a long-term impact whatsoever from digital payments standpoint brought about by Covid-19. If anything, consumers will become more savvy and smarter and pay more heed to new forms of payments that are more convenient and more safe. There will only be more digital payments,” he told BusinessLine.- Business Line
🍒 Equitas SFB to offer gold loans to customers : Equitas Small Finance Bank is offering gold loans to customers to meet their cash requirements. “Loans secured by gold jewellery of customers, repayable by monthly instalments or interest modes scheme rather than on one-time repayment basis only. Average ticket size of loans is in the range of ₹30,000 to ₹40 lakh. The maximum loan tenure for any scheme is 24 months,” it said in a statement on Monday. The gold loan is processed through easy documentation and instant cash is available. NACH repayment is also available for this product. Customers can avail this loan by visiting a nearest branch of Equitas SFB, it further said, adding that customers availing gold loans can repay through EMIs and Equitas SFB also offers overdraft facility on this product. - Business Line
🍒 Too-big-to-fail banks mostly a thing of the past, say regulators : Reforms to the global financial system following the banking crisis a decade ago have cut the risk of taxpayers having to rescue lenders again but some gaps still need plugging, the Financial Stability Board (FSB) said on Sunday. After the crisis the FSB, which coordinates regulation for the Group of 20 rich and emerging economies (G20), introduced rules that require the world's biggest banks like Goldman Sachs, HSBC and Deutsche Bank, to issue special debt that can be written down in a markets meltdown. This and other reforms sought to prevent banks being "too big to fail" - when governments ride to their rescue if they are in serious trouble. - Live Mint
🍒 Ex-RBI governor Rangarajan gets lifetime achievement award on Stats Day : Former Reserve Bank of India governor C Rangarajan was on Monday conferred with the lifetime achievement award for his contribution to statistics on the occasion of Statistics Day. In his acceptance speech, Rangarajan highlighted the importance of credibility of official statistics.Besides heading RBI and the Prime Minister’s Advisory Council, Rangarajan was chairman of the National Statistical Commission, set up in 2000 to review the statistical system.Speaking on the occasion, chairman of the Economic Advisory Council to the Prime Minister, Bibek Debroy, said Covid-19 has raised the issue of paucity of government expenditure and the need for its re-prioritization towards the health sector Chief statistician Pravin Srivastava said the government will launch e-Sigma that will capture data using mobile devices. - economic times
🍒 Govt may get RBI to monetise fiscal deficit in second half of FY21 : After sidestepping the idea for the first half (H1) of 2020-21 (FY21), the Centre is now considering direct monetisation of its fiscal deficit by the Reserve Bank of India (RBI) in the second half (H2), Business Standard has learnt. “It is a high possibility,” said a top government official, when asked if the Centre was considering direct deficit monetisation. “In the latter half of the year, we will have a clearer picture of the economic damage the Covid-19 pandemic has unleashed, and may require further resources to provide support to the economy,” the official added. A final decision will be taken before the borrowing calendar for October 2020-March 2021 is announced in late September. Officials say the borrowing plan for April-September has already been factored in by the markets, even after a hike in the programme. - Business Standard
🍒 PFRDA introduces OTP-based onboarding for NPS scheme : Pension fund regulator PFRDA on Monday said it has introduced one-time password (OTP) based onboarding facility for the National Pension System (NPS) scheme. In its endeavour to provide digital solutions, the Pension Fund Regulatory and Development Authority (PFRDA) has already enabled the opening of online NPS account in a paperless manner through e-signature, it said in a statement. To further facilitate ease of NPS Account opening, the subscribers are now permitted to open their NPS account through OTP also, PFRDA said. - Business Line
🍒 RBI liquidity support helps equities, not debt: Report : Unprecedented liquidity may have led to a rally in equities, but that's not trickling down to loans and bonds market with the spread between the benchmark government bond yields and a triple AAA firm's loan rates remaining higher than what it was before Covid 19 breakout, says a report by State Bank of India economist. SBI's analysis shows that the spread between benchmark government bond yield and a triple AAA firm's loan rate in May was over 100 basis points (one bps in 0.01 per cent) compared to 90-100 bps before COVID-19. " The data points to increase in caution and risk perception is high towards corporate loans compared to equities " said S K Ghosh, group chief economist at SBI. " As a result, we are seeing money moving to equities" But in line with the global market recovery and RBI liquidity support of over Rs one lakh crore, Indian stock market is rebounding gradually, despite weak economic activity, slow demand revival, weak corporate earnings and unrest at international border, the SBI research report said. - economic times
🍒 GIC Housing Finance Q4 profit halves to Rs 26 crore : GIC Housing Finance on Monday reported a 48 per cent decline in its net profit to Rs 26.40 crore for the fourth quarter ended March 31. The company had posted a net profit of Rs 50.9 crore in the January-March quarter of 2018-19. Its total income also came down to Rs 317.08 crore, compared with Rs 324.31 crore in the year-ago period, GIC Housing Finance said in a regulatory filing. - Moneycontrol.com
🍒 Gold prices surge to near record high of Rs 48,554 per 10 gram, silver jumps : Gold prices climbed Rs 320 to Rs 48,554 per 10 gram in the Mumbai bullion market on weakness in the dollar and firm global cues. The precious metal edged higher as a surge in coronavirus cases worldwide deepened worries of a global economic recovery, boosting safe haven demand. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,416, Rs 44,475 and Rs 48,554 plus 3 percent GST. Silver prices jumped Rs 280 to Rs 48,565 per kg from its closing on June 26.
🍒 Rupee rises 9 paise to 75.56 against US dollar : The rupee opened on a flat note and rose nine paise to 75.56 against the US dollar in early trade on Monday as weak greenback restricted the losses stemming from concerns over rising Covid-19 cases. The rupee opened on a flat note at the interbank forex market at 75.64 against the US dollar, then gained some ground and touched 75.52 against the US dollar, before being quoted at 75.56, up 9 paise over its last close.
🍒 Sensex, Nifty end lower in volatile day : Equity benchmark Sensex ended over 200 points and the Nifty has lost 70 pointson Monday dragged by losses in index-heavyweights Axis Bank, Tech Mahindra, SBI, L&T, IndusInd Bank, Bajaj Finance ICICI Bank and Infosys amid negative cues from global markets. The 30-share index ended 209.75 points, or 0.60 per cent, lower at 34,961.52, while the NSE Nifty fell 70.60 points, or 0.68 per cent, to end at 10,312.40.Axis Bank was the top loser in the Sensex pack, dropping around 5 per cent, followed by Tech Mahindra, IndusInd Bank, ICICI Bank, SBI, L&T and Infosys. On the other hand, Hindustan Uni Leve, ITC, Sun Pharma, M&M, Bharti Airtel and Kotak Bank were among the gainers.
🍒 Shares of Central Bank of India in Stock Market : 75% of moneycontrol users recommend buying Central Bank of India Shares. In BSE, shares closed at Rs.20.27 against Prev Close Rs.19.79. In NSE, shares closed at Rs.20.25 against Prev Close Rs.19.80..
… Have a Good day..
Sunday, June 28, 2020
Today's Banking / Financial News at a Glance 28.06.2020
28.06.2020: Today's Banking / Financial News at a Glance
🍒 President promulgates ordinance to bring co-operative banks under RBI : President Ram Nath Kovind has promulgated the Banking Regulation (Amendment) Ordinance, 2020 to bring all urban cooperative banks and multi-state cooperative banks under the supervision of the RBI in order to protect the interest of depositors. The Ordinance amends the Banking Regulation Act, 1949 as applicable to cooperative banks, an official statement said on Saturday."The Ordinance seeks to protect the interests of depositors and strengthen cooperative banks by improving governance and oversight by extending powers already available with RBI in respect of other banks to Co-operative Banks as well for sound banking regulation, and by ensuring professionalism and enabling their access to capital," it said. The amendments do not affect existing powers of the State Registrars of Co-operative Societies under state co-operative laws, it added. - Business Standard
🍒 SBI sanctions loans to over 400,000 MSMEs under credit guarantee scheme : State Bank of India (SBI) has sanctioned loans to over 400,000 accounts under the Rs 3 trillion Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, hit hard by the coronavirus-induced lockdown. On the occasion of International MSME Day, SBI managing director C S Shetty on Friday addressed MSME customers and employees across the nation video conference. SME products were highlighted to the customers to increase awareness and enable them to choose the right product for their business, SBI said in a statement. At the national level, the bank has sanctioned loans to over 400,000 customers under guaranteed emergency credit line (GECL) facility so far, a senior bank official said. About Rs 20,000 crore has been sanctioned to eligible MSME customers under the scheme which was launched on June 1. The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the plan to October 31 or till an amount of Rs 3 trillion is sanctioned under the scheme, whichever is earlier. - Business Standard
🍒 SBI working on setting up e-commerce portal for MSMEs: Rajnish Kumar : State Bank of India is working on setting up an e-commerce portal for marketing of products manufactured by micro, small and medium enterprises (MSMEs) in the country, its chairman Rajnish Kumar said on Saturday. The portal called Bharat Craft would be jointly run by the bank and the government. "It is a work in progress. We have conceptualised how it should be done and the development work on this platform is going to commence soon," Kumar said at a webinar organised by CII."This is one of the things that MSME Minister Nitin Gadkari once mentioned about Bharat Craft where SBI will develop this platform. We are very much dwelling on the subject. It requires a lot of elements to be put together. It is definitely on our radar and we are going to do it," he said. He, however, did not elaborate on the contours of it and the timeline by which it should be operationalised. - economic times
🍒 ECLGS: Private banks will soon catch up with PSBs, says Uday Kotak : Private sector banks, which are seen to be lagging in the rollout of the ₹3 lakh crore 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) focused on supporting MSMEs in these tough Covid-19 times, will soon catch up with the public sector banks (PSBs) on this front, Uday Kotak, CII President, has said. “I do see that private sector banks in the case of the guaranteed scheme have taken a little longer than PSBs. They started a bit later. I do compliment the SBI Chairman and his team for moving at great speed. Having said that, just watch over the next 2-4 weeks, there will be a pick up in momentum from both private banks and PSBs in terms of sanctions and disbursements. It is about getting the house in better shape, and you will see the private banks catch up with PSBs,“ Kotak said at CII Virtual Dialogue on ‘ Strategising the Rollout of Economic Stimulus Package’ on the occasion of International MSME Day. Kotak, who is also MD & CEO of Kotak Mahindra Bank, was responding to a question from a CII member on why private sector banks are taking longer to sanction the MSME loans under the ECLGS and why the rate of interest charged are higher than PSBs - Business Line
🍒 COVID-19 disruption an opportunity for firms to re-strategise: UBI chief : The disruptions caused by the COVID-19 crisis also present an opportunity for businesses to re-strategise and re-invent themselves, Union Bank of India MD and CEO Rajkiran Rai G said. The banking industry is always there to support businesses but they will also have to innovate and look beyond convention, he said at a webinar organised by the PHD Chamber of Commerce and Industry on Friday. "The current disruption is an opportunity to re-strategise and re-invent. See for new geographies to serve, you can launch new products, see for strategic tie-ups wherever possible," he said.The Union Bank chief also said small and medium enterprises (SMEs) have real opportunities to plug into the global supply chain as more companies seek to diversify sourcing inputs.Pointing out that small businesses are mostly one-man shows, he said such companies should adopt digital means for banks to assess their creditworthiness faster and more effectively."There are many simple softwares available, please do that because for a banker data is very important. Now when you have authentic data, you can sumbit to me and then actually my processing becomes much simpler rather than a CA created balance sheet. "I would like to have account balance supported balance sheet where every debit and credit entry comes in and I can authenticate your balance sheet well and I can take a call on the limit (for loan)," Rai said. - economic times
🍒 SBI seeks new consolidated transaction review, forensic audit of Lavasa : State Bank of India has sought a new consolidated transaction review and forensic audit of Lavasa Corporation, the real estate subsidiary of HCC, to provide a clear picture of the company’s financial metrics on a consolidated basis. The new forensic audit was necessitated after the National Company Law Tribunal (NCLT) cleared a consolidated bankruptcy process of all Lavasa companies.Lavasa Corporation was sent for debt resolution in 2018 after the real estate company failed to repay Rs 7,700 crore. Among Lavasa’s creditors, Axis Bank claimed the highest amount of Rs 1,266 crore. Lavasa’s parent, HCC has also defaulted on bank loans.In the committee of creditors’ (CoC’s) meet held on June 9, SBI said there were several inter-connected transactions among Lavasa’s related parties, and individual transaction review audit (TRA) might not be able to provide a complete overview.Certain transactions, SBI said, are so complicated that it would be difficult for CoC to interpret the interlinkages based on individual TRA reports for each entity. SBI said a fresh audit would be in a position to capture such interlinkages through a consolidated TRA report for all entities. Reacting to the SBI’s demand, CoC Chairman Shailesh Verma said a TRA in respect of Lavasa Corporation and Warasgaon Assets Maintenance had already been conducted by their respective erstwhile resolution professionals and necessary applications had been filed with the NCLT. - Business Standard
🍒 RBI extends CRR relaxations till September 25 : The Reserve Bank of India (RBI) has extended the relaxation relating to maintenance of cash reserve ratio (CRR) by all scheduled banks for a further period of three months up to September 25, 2020. The central bank also extended the relaxation relating to enhanced borrowing limit for the aforementioned banks under the Marginal Standing Facility (MSF) scheme till September 30, 2020.When it comes to CRR relaxation, Banks can continue to maintain minimum daily CRR balance of 80 per cent with the RBI.CRR is the slice of deposits that banks have to maintain with the central bank. Currently, the CRR is at 3 per cent of a bank’s deposits. - Business Line
🍒 Yes Bank launches digital savings account : Private sector lender Yes Bank has launched a full service digital savings account which would ensure physical distancing and eliminate the need for a branch visit, physical documentation or any in-person interaction in times of the current pandemic. It will also help the lender to cater to a diverse customer base, especially in tier 1 and tier 2 cities, in line with the its strategy of building a transformed ‘Digital Bank’. “Yes Bank’s digital savings account comes with a virtual debit card, unlocking over 100 features on mobile through YES Mobile and web including transactions, fund transfers and online shopping using the virtual debit card,” it said in a release, adding that the account will offer six per cent interest.- Business Line
🍒 IDBI Bank’s board approves 27 per cent stake sale in IDBI Federal Life Insurance Company : IDBI Bank’s Board of Directors has approved sale of a portion of the Bank’s 48 per cent stake in IDBI Federal Life Insurance Company Limited (IFLI) to current joint venture partners Ageas Insurance International N.V. and Federal Bank at a combined value of about Rs.595 crore. Ageas and Federal Bank will increase their stake in IFLI by 23 per cent (to 49 per cent) and 4 per cent (to 30 per cent), respectively. Post-stake sale, IDBI Bank will have 21 per cent stake in IFLI.IDBI Bank’s board greenlighted the sale at its meeting held on June 26, 2020. The sale is subject to all regulatory approvals to be taken by all related parties and agreements which are yet to be finalised, the Bank said in a regulatory filing. - Business Line
🍒 Govt announces launch of 7-year floating rate savings bonds : The Government has announced the launch of seven-year Floating Rate Savings Bonds, 2020 (Taxable) scheme commencing from July 1. The coupon on January 1, 2021 will be paid at 7.15 per cent. This move comes a month after the Government pulled the plug on 7.75 per cent Savings (Taxable) Bonds, 2018 with effect from the close of banking business on Thursday, May 28, 2020. As per a Reserve Bank of India (RBI) notification, Floating Rate Savings Bonds (FRSBs) will enable person resident in India/Hindu Undivided Family (HUF) to invest in a taxable bond, without any monetary ceiling. - Business Line
🍒 IRDAI asks insurers to offer `Corona Kavach’ policy on or before July 10 : In the backdrop of surging Coronavirus (Covid-19) cases, the Insurance Regulatory and Development Authority of India (IRDAI) has brought in `Corona Kavach', a Covid Standard Health Policy. Significantly, it also said the home care treatment expenses should also be covered under Covid policies.All general and standalone health insurers have been directed to mandatorily offer the product on or before July 10, 2020.As per the guidelines, for general and standalone health insurers who will have to mandatorily offer the policy which covers 14 days of expenses incurred for home treatment. This is in addition to the hospitalisation expenses, which will also be covered. The hospitalisation expenses have also been broad-based and includes Intensive Care Unit (ICU) cost, among others. - Business Line
🍒 AINLIEF questions bid to list LIC in stock markets : The All India National Life Insurance Employees Federation, affiliated to the INTUC, said that it strongly opposes the move of the Centre to list LIC in the stock exchange and also the proposal to sell a part of the government holding through public offering. The Federation's working president Deepak Sharma said in a statement that the main focus of the Government is privatisation and disinvestment of government holdings in Public Sector Undertakings. “The move to list LIC in stock exchange and the proposal to sell a part of the government holding through public offering is not in favour of policy holders of the LIC. It will result in trust deficit by policy holders and may also lead to weakening of the Corporation,” Sharma said. “Experimenting with the structure of LIC will negatively impact the national economy also,” he added. - Business Line
🍒 SOLV partners with Standard Chartered Bank to launch credit card for MSMEs : SOLV, a B2B digital platform for Micro, Small and Medium Enterprises (MSMEs), has launched a credit card tailor-made for the MSME segment, in partnership with Standard Chartered Bank, India. SOLV, registered as Standard Chartered Research & Technology India Pvt. Ltd., is a fully-owned entity of the London-headquartered Standard Chartered Group.The digital platform, in a statement, said the SOLV MSME Credit Card provides business owners with a ready means to meet ongoing business expenses including supplier payments, fuel, logistics, purchase of raw material, utility payments and working capital outlays.Per the statement, the SOLV platform will help small businesses trade goods with each other and expand their customer base across India.The platform said MSMEs are not charged any credit card joining fee, and the card comes with cashback, including 5 per cent cashback on fuel transactions, and reward features. Nitin Mittal, CEO, SOLV, said, “This credit card will help small business owners’ tide over immediate crises such as paying for daily expenses and logistics costs with ready access to funds from a reputed, reliable partner at an affordable rate. ” - Business Line
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🍒 President promulgates ordinance to bring co-operative banks under RBI : President Ram Nath Kovind has promulgated the Banking Regulation (Amendment) Ordinance, 2020 to bring all urban cooperative banks and multi-state cooperative banks under the supervision of the RBI in order to protect the interest of depositors. The Ordinance amends the Banking Regulation Act, 1949 as applicable to cooperative banks, an official statement said on Saturday."The Ordinance seeks to protect the interests of depositors and strengthen cooperative banks by improving governance and oversight by extending powers already available with RBI in respect of other banks to Co-operative Banks as well for sound banking regulation, and by ensuring professionalism and enabling their access to capital," it said. The amendments do not affect existing powers of the State Registrars of Co-operative Societies under state co-operative laws, it added. - Business Standard
🍒 SBI sanctions loans to over 400,000 MSMEs under credit guarantee scheme : State Bank of India (SBI) has sanctioned loans to over 400,000 accounts under the Rs 3 trillion Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, hit hard by the coronavirus-induced lockdown. On the occasion of International MSME Day, SBI managing director C S Shetty on Friday addressed MSME customers and employees across the nation video conference. SME products were highlighted to the customers to increase awareness and enable them to choose the right product for their business, SBI said in a statement. At the national level, the bank has sanctioned loans to over 400,000 customers under guaranteed emergency credit line (GECL) facility so far, a senior bank official said. About Rs 20,000 crore has been sanctioned to eligible MSME customers under the scheme which was launched on June 1. The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the plan to October 31 or till an amount of Rs 3 trillion is sanctioned under the scheme, whichever is earlier. - Business Standard
🍒 SBI working on setting up e-commerce portal for MSMEs: Rajnish Kumar : State Bank of India is working on setting up an e-commerce portal for marketing of products manufactured by micro, small and medium enterprises (MSMEs) in the country, its chairman Rajnish Kumar said on Saturday. The portal called Bharat Craft would be jointly run by the bank and the government. "It is a work in progress. We have conceptualised how it should be done and the development work on this platform is going to commence soon," Kumar said at a webinar organised by CII."This is one of the things that MSME Minister Nitin Gadkari once mentioned about Bharat Craft where SBI will develop this platform. We are very much dwelling on the subject. It requires a lot of elements to be put together. It is definitely on our radar and we are going to do it," he said. He, however, did not elaborate on the contours of it and the timeline by which it should be operationalised. - economic times
🍒 ECLGS: Private banks will soon catch up with PSBs, says Uday Kotak : Private sector banks, which are seen to be lagging in the rollout of the ₹3 lakh crore 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) focused on supporting MSMEs in these tough Covid-19 times, will soon catch up with the public sector banks (PSBs) on this front, Uday Kotak, CII President, has said. “I do see that private sector banks in the case of the guaranteed scheme have taken a little longer than PSBs. They started a bit later. I do compliment the SBI Chairman and his team for moving at great speed. Having said that, just watch over the next 2-4 weeks, there will be a pick up in momentum from both private banks and PSBs in terms of sanctions and disbursements. It is about getting the house in better shape, and you will see the private banks catch up with PSBs,“ Kotak said at CII Virtual Dialogue on ‘ Strategising the Rollout of Economic Stimulus Package’ on the occasion of International MSME Day. Kotak, who is also MD & CEO of Kotak Mahindra Bank, was responding to a question from a CII member on why private sector banks are taking longer to sanction the MSME loans under the ECLGS and why the rate of interest charged are higher than PSBs - Business Line
🍒 COVID-19 disruption an opportunity for firms to re-strategise: UBI chief : The disruptions caused by the COVID-19 crisis also present an opportunity for businesses to re-strategise and re-invent themselves, Union Bank of India MD and CEO Rajkiran Rai G said. The banking industry is always there to support businesses but they will also have to innovate and look beyond convention, he said at a webinar organised by the PHD Chamber of Commerce and Industry on Friday. "The current disruption is an opportunity to re-strategise and re-invent. See for new geographies to serve, you can launch new products, see for strategic tie-ups wherever possible," he said.The Union Bank chief also said small and medium enterprises (SMEs) have real opportunities to plug into the global supply chain as more companies seek to diversify sourcing inputs.Pointing out that small businesses are mostly one-man shows, he said such companies should adopt digital means for banks to assess their creditworthiness faster and more effectively."There are many simple softwares available, please do that because for a banker data is very important. Now when you have authentic data, you can sumbit to me and then actually my processing becomes much simpler rather than a CA created balance sheet. "I would like to have account balance supported balance sheet where every debit and credit entry comes in and I can authenticate your balance sheet well and I can take a call on the limit (for loan)," Rai said. - economic times
🍒 SBI seeks new consolidated transaction review, forensic audit of Lavasa : State Bank of India has sought a new consolidated transaction review and forensic audit of Lavasa Corporation, the real estate subsidiary of HCC, to provide a clear picture of the company’s financial metrics on a consolidated basis. The new forensic audit was necessitated after the National Company Law Tribunal (NCLT) cleared a consolidated bankruptcy process of all Lavasa companies.Lavasa Corporation was sent for debt resolution in 2018 after the real estate company failed to repay Rs 7,700 crore. Among Lavasa’s creditors, Axis Bank claimed the highest amount of Rs 1,266 crore. Lavasa’s parent, HCC has also defaulted on bank loans.In the committee of creditors’ (CoC’s) meet held on June 9, SBI said there were several inter-connected transactions among Lavasa’s related parties, and individual transaction review audit (TRA) might not be able to provide a complete overview.Certain transactions, SBI said, are so complicated that it would be difficult for CoC to interpret the interlinkages based on individual TRA reports for each entity. SBI said a fresh audit would be in a position to capture such interlinkages through a consolidated TRA report for all entities. Reacting to the SBI’s demand, CoC Chairman Shailesh Verma said a TRA in respect of Lavasa Corporation and Warasgaon Assets Maintenance had already been conducted by their respective erstwhile resolution professionals and necessary applications had been filed with the NCLT. - Business Standard
🍒 RBI extends CRR relaxations till September 25 : The Reserve Bank of India (RBI) has extended the relaxation relating to maintenance of cash reserve ratio (CRR) by all scheduled banks for a further period of three months up to September 25, 2020. The central bank also extended the relaxation relating to enhanced borrowing limit for the aforementioned banks under the Marginal Standing Facility (MSF) scheme till September 30, 2020.When it comes to CRR relaxation, Banks can continue to maintain minimum daily CRR balance of 80 per cent with the RBI.CRR is the slice of deposits that banks have to maintain with the central bank. Currently, the CRR is at 3 per cent of a bank’s deposits. - Business Line
🍒 Yes Bank launches digital savings account : Private sector lender Yes Bank has launched a full service digital savings account which would ensure physical distancing and eliminate the need for a branch visit, physical documentation or any in-person interaction in times of the current pandemic. It will also help the lender to cater to a diverse customer base, especially in tier 1 and tier 2 cities, in line with the its strategy of building a transformed ‘Digital Bank’. “Yes Bank’s digital savings account comes with a virtual debit card, unlocking over 100 features on mobile through YES Mobile and web including transactions, fund transfers and online shopping using the virtual debit card,” it said in a release, adding that the account will offer six per cent interest.- Business Line
🍒 IDBI Bank’s board approves 27 per cent stake sale in IDBI Federal Life Insurance Company : IDBI Bank’s Board of Directors has approved sale of a portion of the Bank’s 48 per cent stake in IDBI Federal Life Insurance Company Limited (IFLI) to current joint venture partners Ageas Insurance International N.V. and Federal Bank at a combined value of about Rs.595 crore. Ageas and Federal Bank will increase their stake in IFLI by 23 per cent (to 49 per cent) and 4 per cent (to 30 per cent), respectively. Post-stake sale, IDBI Bank will have 21 per cent stake in IFLI.IDBI Bank’s board greenlighted the sale at its meeting held on June 26, 2020. The sale is subject to all regulatory approvals to be taken by all related parties and agreements which are yet to be finalised, the Bank said in a regulatory filing. - Business Line
🍒 Govt announces launch of 7-year floating rate savings bonds : The Government has announced the launch of seven-year Floating Rate Savings Bonds, 2020 (Taxable) scheme commencing from July 1. The coupon on January 1, 2021 will be paid at 7.15 per cent. This move comes a month after the Government pulled the plug on 7.75 per cent Savings (Taxable) Bonds, 2018 with effect from the close of banking business on Thursday, May 28, 2020. As per a Reserve Bank of India (RBI) notification, Floating Rate Savings Bonds (FRSBs) will enable person resident in India/Hindu Undivided Family (HUF) to invest in a taxable bond, without any monetary ceiling. - Business Line
🍒 IRDAI asks insurers to offer `Corona Kavach’ policy on or before July 10 : In the backdrop of surging Coronavirus (Covid-19) cases, the Insurance Regulatory and Development Authority of India (IRDAI) has brought in `Corona Kavach', a Covid Standard Health Policy. Significantly, it also said the home care treatment expenses should also be covered under Covid policies.All general and standalone health insurers have been directed to mandatorily offer the product on or before July 10, 2020.As per the guidelines, for general and standalone health insurers who will have to mandatorily offer the policy which covers 14 days of expenses incurred for home treatment. This is in addition to the hospitalisation expenses, which will also be covered. The hospitalisation expenses have also been broad-based and includes Intensive Care Unit (ICU) cost, among others. - Business Line
🍒 AINLIEF questions bid to list LIC in stock markets : The All India National Life Insurance Employees Federation, affiliated to the INTUC, said that it strongly opposes the move of the Centre to list LIC in the stock exchange and also the proposal to sell a part of the government holding through public offering. The Federation's working president Deepak Sharma said in a statement that the main focus of the Government is privatisation and disinvestment of government holdings in Public Sector Undertakings. “The move to list LIC in stock exchange and the proposal to sell a part of the government holding through public offering is not in favour of policy holders of the LIC. It will result in trust deficit by policy holders and may also lead to weakening of the Corporation,” Sharma said. “Experimenting with the structure of LIC will negatively impact the national economy also,” he added. - Business Line
🍒 SOLV partners with Standard Chartered Bank to launch credit card for MSMEs : SOLV, a B2B digital platform for Micro, Small and Medium Enterprises (MSMEs), has launched a credit card tailor-made for the MSME segment, in partnership with Standard Chartered Bank, India. SOLV, registered as Standard Chartered Research & Technology India Pvt. Ltd., is a fully-owned entity of the London-headquartered Standard Chartered Group.The digital platform, in a statement, said the SOLV MSME Credit Card provides business owners with a ready means to meet ongoing business expenses including supplier payments, fuel, logistics, purchase of raw material, utility payments and working capital outlays.Per the statement, the SOLV platform will help small businesses trade goods with each other and expand their customer base across India.The platform said MSMEs are not charged any credit card joining fee, and the card comes with cashback, including 5 per cent cashback on fuel transactions, and reward features. Nitin Mittal, CEO, SOLV, said, “This credit card will help small business owners’ tide over immediate crises such as paying for daily expenses and logistics costs with ready access to funds from a reputed, reliable partner at an affordable rate. ” - Business Line
… Have a Good day..
Thursday, June 25, 2020
Today's Banking / Financial News at a Glance 26.06.2020
26.06.2020: Today's Banking / Financial News at a Glance
🍒 Bank of India posts net loss of ₹3,571 crore in Q4 on sharp rise in loan-loss provisions : Bank of India (BoI) slipped into the red, reporting a net loss of ₹3,571 crore in the fourth quarter ended March 31, 2020, due to a sharp rise in loan-loss provisions. The public sector bank had reported a net profit of ₹252 crore in the year-ago period and ₹106 crore in the preceding quarter.Atanu Kumar Das, MD and CEO, attributed the loss to his bank making aggregate provisions over and above what is required as per IRAC (income recognition and asset classification) norms. The bank would have posted a profit but for this provisioning, he added.Loan-loss provisions in the reporting quarter soared to ₹7,316 crore against ₹1,503 crore in the year-ago quarter. In the current quarter, due to uncertainty regarding recovery, the bank made additional provisioning of ₹3,941 crore in respect in six non-performing asset (NPA) accounts.Das expects BoI to return to profit in the April-June quarter. He projected a credit growth of 8-9 per cent in FY21.While net interest income was down 6 per cent year-on-year at ₹3,793 crore (₹4,044 crore in the year-ago quarter), total non-interest income was up 14 per cent at ₹1,688 crore (₹1,479 crore). The bank extended Covid-19-related moratorium in the case of borrower accounts aggregating ₹74,445 crore. It extended asset classification benefits to accounts aggregating ₹4,145 crore and made a provision of ₹414 crore thereon. - Business Line
🍒 IOB posts ₹144-crore net profit in Q4 : Indian Overseas Bank (IOB) has reported a turnaround in its operations as the Chennai-headquartered PSB posted a net profit of ₹144 crore (includes the extraordinary income of ₹53 crore) for the quarter ended March 31, 2020, compared with a net loss of ₹1,985 crore in the year-ago quarter. The bank has recorded a profit after reporting a net loss for 18 quarters. While the bank’s net NPA has dropped below 6 per cent in the past two quarters, it has reported net profit for March 2020 quarter, indicating the possibilities of coming come out the RBI’s PCA framework soon.“Higher operating profit and lower provisions have helped post a strong net profit in March 2020 quarter. It is a great turnaround and landmark event for the bank as several initiatives taken in recent months have helped,” said Karnam Sekar, Managing Director & CEO of IOB.Operating profit of the bank grew by 6 per cent to ₹1,197 crore against ₹1,131 crore in the year-ago quarter. Interest income was lower at ₹4,442 crore (₹4,556 crore), while non-interest income was higher at ₹1,095 crore (₹917 crore).Provisions and contingencies were lower at ₹1,060 crore (₹4,502 crore). Gross NPA declined to ₹19,913 crore with ratio of 14.78 per cent as on March 31, 2020, against ₹33,398 crore with ratio of 21.97 per cent a year-ago. Total recovery was ₹5,386 crore in Q4 of FY20, while the total fresh slippage for the same period stood at ₹1,350 crore.- Business Line
🍒 Exim Bank profit rises 51% in FY20 : Export-Import Bank of India (Exim Bank) reported a 51 per cent increase in net profit at ₹124 crore in the year ended March 31, 2020, against ₹82 crore in the previous year. The bank’s loan portfolio, including export finance, term loan to exporters and overseas investment, increased by 6.23 per cent year-on-year (yoy) to ₹99,446 crore as of March-end 2020 from ₹93,617 crore as of March-end 2019.Exim Bank is a wholly-owned Government of India financial institution that provides financial assistance to exporters and importers. The non-funded portfolio, comprising financial guarantees, and project-related and other guarantees, increased by 12.59 per cent to ₹15,869 crore as of March-end 2020 from ₹14,096 crore as of March-end 2019. - Business Line
🍒 Small businesses, corporates biggest beneficiaries of loan moratorium: Canara Bank chief : Public sector lender Canara Bank has 17% of its loan book under repayment moratorium, with small businesses and corporates being the biggest beneficiary of this scheme, LV Prabhakar, chief executive officer, Canara Bank told Mint in an interview. “About 19% of the borrowers (by number) have utilised the repayment deferment of interest and instalment," said Prabhakar.While 38% of the bank’s small business borrowers have opted for the moratorium, about 34% of corporate borrowers have utilised it. Besides, 5% retail borrowers and 3% of non-banking financial companies (NBFCs) have taken the deferment benefit. All these numbers are as of 31 March and Prabhakar said that the bank will reassess these after 30 June and will therefore have more clarity in the first week of July. “In March we gave the moratorium option to all our borrowers, but subsequently because of other facilities like covid-19 assistance loans, targeted long-term repo operations (TLTRO) funds, their liquidity problems have eased," he said. - Live Mint
🍒 UCO Bank says 25-30 per cent of borrowers opted for moratorium : Public sector UCO Bank said on Thursday that 25 to 30 per cent of its borrowers have opted for the moratorium which was allowed by the Reserve Bank of India (RBI). A senior UCO Bank official said that most of the borrowers continue to make monthly payments and it shows the quality of those who have taken loans from the bank.“Nearly 25 per cent to 30 per cent of the bank’s borrowers have opted for the moratorium. It only shows the quality of borrowers,” the official said.The RBI has extended the moratorium on loan repayment by another three months which ends in August.The Supreme Court has recently made an observation that banks are charging ‘interest on interest’ from those who opted for the moratorium.To this, the official said that RBI had already submitted an affidavit with the apex court stating that waiver of interest will risk the financial viability of the banks. UCO Bank has also signed an agreement with SBI Life Insurance for selling the insurer’s policies from its branches across the country.- Business Line
🍒 Federal Bank to buy another 4% stake in its JV from IDBI Bank for Rs 80 cr : South-based lender Federal Bank will be paying over Rs 80 crore to buy additional four per cent stake in its life insurance joint venture IDBI Federal Life Insurance, a top official has said. The stake buy from the state-run IDBI Bank will take Federal Bank's stake in the 12-year-old company to 30 per cent, the maximum permissible level for a lender under the regulations, its managing director and chief executive Shyam Srinivasan told PTI.Without giving targeted timelines, he said IDBI Bank, which holds 48 per cent stake in the venture, will be selling 27 per cent stake in the venture to get its holding down to 21 per cent.Federal Bank will be purchasing 4 per cent, while their Dutch partner Ageas Insurance International NV will be buying 23 per cent to take its ownership to 49 per cent, the maximum permissible for a foreign partner in a life insurance venture."The valuations have been decided between partners by appointing third parties. IDBI Bank will reduce either to 25 or 21 per cent depending on whether we buy or not," he said and added that "we will take our stake to the maximum permissible 30 per cent and it will take about Rs 80-90 crore for the 4 per cent stake." - Business Standard
🍒 Yes Bank launches mobile payment app ‘Yuva Pay’ : Yes Bank launched its digital wallet solution ‘Yuva Pay’ in partnership with UDMA Technologies to enable contactless payments for its customers. The digital wallet issued under minimum KYC regulations to Yes Bank will offer bill payments via Bharat Bill Pay and provide Unified Payments Interface (UPI) facility to customers.Through the app, customers can pay their utility bills (including municipal, house, water tax, electricity, LPG, DTH, Mobile bill, license fees), make insurance renewals, FASTag recharges, EMI payments, and use the app to make payments at retail outlets. “The program also aims to make the low income groups transition to digital and contactless transactions by enabling wider access to secure electronic payment services," said Anita Pai, chief operating officer, Yes Bank. - Live Mint
🍒 Private banks: Now, RBI can frame reconstruction scheme without putting moratorium in public domain : Call this a fallout of the recent YES Bank debacle and its subsequent rescue episode. The Centre has now decided to empower the Reserve Bank of India (RBI) to handle mishaps in private banks (any banking company) without allowing any loss of public confidence and disruption in financial system. The much talked about Banking Regulation (Amendment) Ordinance 2020 – which was approved by Cabinet on Wednesday — will also allow RBI to prepare a reconstruction scheme without having to first make an order of moratorium on barring deposit withdrawals, official sources said.- Business Line
🍒 Aditya Puri took home Rs 180 crore in FY20 : HDFC Bank chief Aditya Puri took home a total remuneration of Rs 18.9 crore as against Rs 13.7 crore last year. During the year, which was last full year as CEO, Puri also exercised options of Rs 161 crore. Puri, who has led HDFC Bank since its inception in 1994, will be stepping down in October this year as he turns 70. During his term, the bank has grown from a one-branch operation in 1995 to become India’s largest private bank with a market cap of Rs 5.7 lakh crore. Last year, the lender increased its profits by 25% to Rs 26,257, which is more than rest of the sector. According to the bank’s annual report, Puri’s fixed remuneration was Rs 15.9 crore, perquisites Rs 2.2 crore and other benefits Rs 79.8 lakh. Stock options exercised this year at Rs 161 crore were almost four times last year’s Rs 42 crore. - Times of India
🍒 Govt steps in to avoid another PMC Bank like fiasco, aims to ensure proper regulation of co-op banks : The government on Wednesday fast-tracked its plan to protect the interest of small depositors by deciding to bring urban as well as multi-state co-operative banks under regulations of the Reserve Bank of India (RBI) through an ordinance. Briefing the media after the Cabinet meeting on Wednesday, information and broadcasting minister Prakash Javadekar said there are 1,540 urban cooperative and multi-state co-operative banks with 8.60 crore depositors, having total savings of about Rs 5 lakh crore. “Depositors will feel a lot safer after this move,” the minister said. The Cabinet has also approved a proposal to extend an interest subsidy of 2% for 12 months through May 31, 2021 to small-time entrepreneurs in the vulnerable sections of the society under the Mudra (Sishu) scheme. The move will cost the government Rs 1,542 crore. - Financial Express
🍒 RBI staff union hails proposed ordinance on co-operative banks : The All-India Reserve Bank Employees’ Association (AIRBEA) has welcomed the decision of the Union Cabinet to promulgate an ordinance to bring the 1,482 urban and 58 multi-state co-operative banks under the supervision of the Reserve Bank of India, which would protect the interests of an estimated 13.5 crore depositors. “We are particularly happy since we have been demanding this from the late 1990s when the scam at the Madhavpura Mercantile Co-operative Bank in Gujarat pushed co-operative banks across the country into a critical situation, several had folded up, and depositors lost precious money,” Samir Ghosh, General Secretary of AIRBEA, wrote in a letter to the RBI Governor. - Business Line
🍒 CBI chargesheets Rana Kapoor, Kapil Wadhawan in YES Bank fraud case : The Central Bureau of Investigation has filed a chargesheet against Rana Kapoor, Kapil Wadhawan and their kin in the YES Bank fraud case. A CBI statement said that the chargesheet names Dewan Housing Finance Limited, Kapil Rajesh Wadhawan, Dheeraj Rajesh Wadhawan, Belief Realtors Private Limited, RKW Developers Private Limited, DOIT Urban Ventures (India) Private Limited, Roshni Kapoor and Rana Kapoor. The chargesheet was filed in the court of Special Judge, CBI City Sessions Court, Mumbai. In March this year, the CBI had linked the Kapoors and Wadhwans to a YES Bank-DHFL diversion of ₹1,350 crore. They were charged with corruption, cheating, bribery, and criminal misconduct.- Business Line
🍒 The ‘threat’ posed by 96,000 rural co-operatives outside RBI compass : Nine months after the Punjab and Maharashtra Co-operative (PMC) Bank fiasco, the Cabinet has approved an ordinance to bring urban and multi-State cooperative banks under the supervision of the RBI, to ease depositors’ concerns. With numerous co-operative banks going bust time and again, the move to strengthen these banks by improving governance and oversight through the RBI is welcome. But only 1,544 urban co-operative banks (including 58 multi-state cooperative banks), will be covered under the ordinance. There are 96,000-odd rural co-operatives that constitute about 65 per cent of the total assets of co-operatives. Among them, Primary Agricultural Credit (PAC) Societies (about 95,000 in number as of March 2018) continue to remain outside the purview of the Banking Regulation Act, which is a cause for worry, given their wide presence in the remote hinterlands. - Business Line
🍒 SEBI slaps Rs 25 lakh fine on 5 persons for fraudulent trading : Capital markets regulator SEBI on Thursday imposed a penalty totalling Rs 25 lakh on five individuals for indulging in fraudulent trading in the shares of Cupid Trades and Finance Ltd. A penalty of Rs 5 lakh each has been levied on Devang Mukandray Patel, Sonal Devang Patel, Manishaben Maheshkumar Patel, Rajesh Kumar and Kishor Sharma. The regulator had conducted a probe into the trading activities of certain entities in the scrip of Cupid Trades & Finance for the period of January 2010 to December 2014. - Moneycontrol.com
🍒 Govt must support fintechs: Ficci-PWC report : The government should liaise with financial technology firms for distribution of financial benefits and relief measures amid the covid crisis, said a new report by industry body the Federation of Indian Chambers of Commerce and Industry (Ficci) and multinational professional services firm PwC. “The need for digital awareness and presence is prominently recognized by individuals, businesses, and governments alike. Fintechs can act as enablers for the banking and financial sector, playing a crucial role in ubiquity and adoption of digital financial services. A few measures related to policy and regulation can support the fintech sector during the ongoing crisis," the report said. - Live Mint
🍒 With easing of curbs, Indian banks in UK cautiously optimistic about future : With British Prime Minister Boris Johnson announcing further easing of economic and social lockdown enforced by the Covid-19 pandemic— to come into effect from July 4 onwards — Indian banks operating in the UK are cautiously optimistic about business returning to near normal in the foreseeable future. Following the UK government last week lowering the level of alert from 4 to 3 — on a scale of 5 — and relaxing social distancing rules, Loknath Mishra, managing director and chief executive of ICICI UK Plc, indicated: “We are experiencing a rise in the volume of NRI deposits and remittances.” - Business Standard
🍒 Indian money parked in Swiss banks down 6%; third lowest in over 3 decades : unds parked by Indian individuals and enterprises in Swiss banks, including through India-based branches, fell nearly 6 per cent in 2019 to 899 million Swiss francs (Rs 6,625 crore), annual data from Switzerland's central bank showed on Thursday. This marks the second consecutive year of decline in aggregate funds of Indian clients with all Swiss banks, taking the figure to the third lowest level in more than three decades since 1987 when the Swiss National Bank (SNB) began compiling the data. The total amount of CHF 899.46 million, described by SNB as aggregate 'liabilities' of Swiss banks or 'amounts due to' their Indian clients at the end of 2019, included CHF 550 million (over Rs 4,000 crore) of customer deposits; CHF 88 million (Rs 650 crore) held via other banks; 7.4 million (Rs 50 crore) through fiduciaries or trusts; and CHF 254 million (Rs 1,900 crore) as 'other amounts due to customers' in form of securities and various financial instruments. - Business Standard
🍒 IRDAI sets up panel on insurance for use drones : The Insurance Regulatory and Development Authority of India (IRDAI) has formed a working group to suggest insurance products covering the various risks involved in the use of drones. “There is an immediate need to make available suitable insurance products covering the various risks involved in the use of drones,” the insurance regulator said in a circular. Drones are emerging as one of the fastest growing technologies and are being used for a variety of purposes and were playing a ‘significant’ role in the present Covid-19 situation helping the authorities in several activities, IRDAIsaid. - Business Line
🍒 Dvara KGFS sets fund-raising target of ₹600 crore for FY21 : Dvara KGFS, a non-banking finance company focusesd on financial inclusion, has set a fund-raising target of ₹600 crore under debt route for FY21, to meet its disbursement plans for the year and fuel its growth and expansion needs. The announcement was made during a virtual press conference organised by the company on Thursday to highlight the digital banking facilities provided to people in the remote villages during the lockdown. Dvara KGFS said it has facilitated gross cash withdrawal transactions of more than ₹7 crore through its 300-odd branches since April 19 through an Aadhar-Enabled Payment System (AEPS). “We are happy that we were able to provide AEPS service to around 45,000 villagers and facilitate a gross cash withdrawal of more than ₹7 crore through our 300-odd branches in such a short span of time,” said Joby CO, CEO of Dvara KGFS. - Business Line
🍒 Bharti AXA Life rolls out combo product in Covid-19 times : Focussing on a customer-centric approach to its product development strategy, Bharti AXA Life Insurance has come up with a combo product that provides an all-in-one solution for life cover, hospitalisation, accident and critical illness amid the scare and spread of Covid-19 pandemic. This product has been designed solely based on customer feedback. “The new combo product ‘Health and Life Secure’ is a step in that direction to meet this need and has been rolled out based on the findings of a proprietary survey we did. This is expected to be a key differentiator as having all coverages in one plan will save customers from keeping separate policies and paying premium separately for them,” Manik Nangia, Chief Operating Officer, Bharti Enterprises - Financial Services, told BusinessLine in an interview. - Business Line
🍒 Power Finance Corporation sanctions over Rs 1 lakh crore loans for power projects in FY20 : State-owned Power Finance Corporation (PFC) on Thursday said it sanctioned loans over Rs 1 lakh crore for power projects during the 2019-20 financial year. Out of the Rs 1 lakh crore, it successfully disbursed Rs 68,000 crore loans during the last financial year, PFC said in a statement.PFC, under the administrative control of the Ministry of Power, is the largest non-banking financial corporation (NBFC) in power sector in India."PFC ended FY 2019-20 on a strong note despite numerous challenges, including outbreak of COVID-19 virus. The institution delivered a sound financial performance with loan sanctions of more than Rs 1 lakh crore along with loan disbursements of about Rs 68,000 crore in the last financial year," it said. - Moneycontrol.com
🍒 IIFL Finance share price rises 10% after promoter raises stake : IIFL Finance share price rose 10 percent intraday on June 25 after the promoter of the company increased their stake. On June 24 the company's promoter Nirmal Bhanwarlal Jain has acquired 0.12 percent stake in the company via open market increasing total shareholding of the promoter group to 25.06 percent..The share touched its 52-week high Rs 212.80 and 52-week low Rs 58.15 on 14 February 2020 and 03 June 2020, respectively. Currently, it is trading 61.63 percent below its 52-week high and 40.41 percent above its 52-week low. - Business Line
🍒 Bank of India share price falls 5% on Q4 loss : Bank of India share price declined 4.8 percent intraday on June 25 after the public sector lender reported a massive loss for the March quarter of 2020. The stock, which has corrected 40 percent in the last year, was trading at Rs 52.30, down 4.74 percent on the BSE at 1433 hours. - Business Line
🍒 IOB share price locked at 10% upper circuit on Q4 profit : Indian Overseas Bank (IOB) share price locked at 10 percent upper circuit on June 25 after the company posted net profit in the quarter ended March 2020. The company in the Q4 has reported net profit at Rs 143.8 crore against loss of Rs 1,985.2 crore in the same quarter last fiscal. - Business Line
🍒 Sensex ends flat, Nifty closes at 10,288 : The benchmark indices closed today's volatile session on a negative note. The Nifty finished the June F&O session at 10,288.90, down 16.40 points or 0.16 per cent. The BSE Sensex ended at 34,842.10, down 26.88 points or 0.08 per cent.Asian Paints, ITC, Eicher Motor were the top gainers. While, ICICI Bank, IndusInd Bank and Powergrid were top laggards. Nifty FMCG and Pharma ended in green zone, while IT and Media closed in red.
🍒 Rupee settles 7 paise higher at 75.65 against US dollar : The rupee erased its initial losses and settled 7 paise higher at 75.65 (provisional) against the US dollar on Thursday tracking positive domestic equities and foreign fund inflows. The rupee opened at 75.76 against the US dollar, but gathered strength and closed at 75.65, higher by 7 paise over its previous close. It had finished at 75.72 against the greenback on Wednesday.
🍒 Shares of Central Bank of India in Stock Market : 82% of moneycontrol users recommend buying Central Bank of India. In Bse, stocks quoted at Rs.17.27 against Prev Close Rs.17.44. In NSE, shares traded at Rs.17.25 against Prev Close Rs.17.40....
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🍒 Bank of India posts net loss of ₹3,571 crore in Q4 on sharp rise in loan-loss provisions : Bank of India (BoI) slipped into the red, reporting a net loss of ₹3,571 crore in the fourth quarter ended March 31, 2020, due to a sharp rise in loan-loss provisions. The public sector bank had reported a net profit of ₹252 crore in the year-ago period and ₹106 crore in the preceding quarter.Atanu Kumar Das, MD and CEO, attributed the loss to his bank making aggregate provisions over and above what is required as per IRAC (income recognition and asset classification) norms. The bank would have posted a profit but for this provisioning, he added.Loan-loss provisions in the reporting quarter soared to ₹7,316 crore against ₹1,503 crore in the year-ago quarter. In the current quarter, due to uncertainty regarding recovery, the bank made additional provisioning of ₹3,941 crore in respect in six non-performing asset (NPA) accounts.Das expects BoI to return to profit in the April-June quarter. He projected a credit growth of 8-9 per cent in FY21.While net interest income was down 6 per cent year-on-year at ₹3,793 crore (₹4,044 crore in the year-ago quarter), total non-interest income was up 14 per cent at ₹1,688 crore (₹1,479 crore). The bank extended Covid-19-related moratorium in the case of borrower accounts aggregating ₹74,445 crore. It extended asset classification benefits to accounts aggregating ₹4,145 crore and made a provision of ₹414 crore thereon. - Business Line
🍒 IOB posts ₹144-crore net profit in Q4 : Indian Overseas Bank (IOB) has reported a turnaround in its operations as the Chennai-headquartered PSB posted a net profit of ₹144 crore (includes the extraordinary income of ₹53 crore) for the quarter ended March 31, 2020, compared with a net loss of ₹1,985 crore in the year-ago quarter. The bank has recorded a profit after reporting a net loss for 18 quarters. While the bank’s net NPA has dropped below 6 per cent in the past two quarters, it has reported net profit for March 2020 quarter, indicating the possibilities of coming come out the RBI’s PCA framework soon.“Higher operating profit and lower provisions have helped post a strong net profit in March 2020 quarter. It is a great turnaround and landmark event for the bank as several initiatives taken in recent months have helped,” said Karnam Sekar, Managing Director & CEO of IOB.Operating profit of the bank grew by 6 per cent to ₹1,197 crore against ₹1,131 crore in the year-ago quarter. Interest income was lower at ₹4,442 crore (₹4,556 crore), while non-interest income was higher at ₹1,095 crore (₹917 crore).Provisions and contingencies were lower at ₹1,060 crore (₹4,502 crore). Gross NPA declined to ₹19,913 crore with ratio of 14.78 per cent as on March 31, 2020, against ₹33,398 crore with ratio of 21.97 per cent a year-ago. Total recovery was ₹5,386 crore in Q4 of FY20, while the total fresh slippage for the same period stood at ₹1,350 crore.- Business Line
🍒 Exim Bank profit rises 51% in FY20 : Export-Import Bank of India (Exim Bank) reported a 51 per cent increase in net profit at ₹124 crore in the year ended March 31, 2020, against ₹82 crore in the previous year. The bank’s loan portfolio, including export finance, term loan to exporters and overseas investment, increased by 6.23 per cent year-on-year (yoy) to ₹99,446 crore as of March-end 2020 from ₹93,617 crore as of March-end 2019.Exim Bank is a wholly-owned Government of India financial institution that provides financial assistance to exporters and importers. The non-funded portfolio, comprising financial guarantees, and project-related and other guarantees, increased by 12.59 per cent to ₹15,869 crore as of March-end 2020 from ₹14,096 crore as of March-end 2019. - Business Line
🍒 Small businesses, corporates biggest beneficiaries of loan moratorium: Canara Bank chief : Public sector lender Canara Bank has 17% of its loan book under repayment moratorium, with small businesses and corporates being the biggest beneficiary of this scheme, LV Prabhakar, chief executive officer, Canara Bank told Mint in an interview. “About 19% of the borrowers (by number) have utilised the repayment deferment of interest and instalment," said Prabhakar.While 38% of the bank’s small business borrowers have opted for the moratorium, about 34% of corporate borrowers have utilised it. Besides, 5% retail borrowers and 3% of non-banking financial companies (NBFCs) have taken the deferment benefit. All these numbers are as of 31 March and Prabhakar said that the bank will reassess these after 30 June and will therefore have more clarity in the first week of July. “In March we gave the moratorium option to all our borrowers, but subsequently because of other facilities like covid-19 assistance loans, targeted long-term repo operations (TLTRO) funds, their liquidity problems have eased," he said. - Live Mint
🍒 UCO Bank says 25-30 per cent of borrowers opted for moratorium : Public sector UCO Bank said on Thursday that 25 to 30 per cent of its borrowers have opted for the moratorium which was allowed by the Reserve Bank of India (RBI). A senior UCO Bank official said that most of the borrowers continue to make monthly payments and it shows the quality of those who have taken loans from the bank.“Nearly 25 per cent to 30 per cent of the bank’s borrowers have opted for the moratorium. It only shows the quality of borrowers,” the official said.The RBI has extended the moratorium on loan repayment by another three months which ends in August.The Supreme Court has recently made an observation that banks are charging ‘interest on interest’ from those who opted for the moratorium.To this, the official said that RBI had already submitted an affidavit with the apex court stating that waiver of interest will risk the financial viability of the banks. UCO Bank has also signed an agreement with SBI Life Insurance for selling the insurer’s policies from its branches across the country.- Business Line
🍒 Federal Bank to buy another 4% stake in its JV from IDBI Bank for Rs 80 cr : South-based lender Federal Bank will be paying over Rs 80 crore to buy additional four per cent stake in its life insurance joint venture IDBI Federal Life Insurance, a top official has said. The stake buy from the state-run IDBI Bank will take Federal Bank's stake in the 12-year-old company to 30 per cent, the maximum permissible level for a lender under the regulations, its managing director and chief executive Shyam Srinivasan told PTI.Without giving targeted timelines, he said IDBI Bank, which holds 48 per cent stake in the venture, will be selling 27 per cent stake in the venture to get its holding down to 21 per cent.Federal Bank will be purchasing 4 per cent, while their Dutch partner Ageas Insurance International NV will be buying 23 per cent to take its ownership to 49 per cent, the maximum permissible for a foreign partner in a life insurance venture."The valuations have been decided between partners by appointing third parties. IDBI Bank will reduce either to 25 or 21 per cent depending on whether we buy or not," he said and added that "we will take our stake to the maximum permissible 30 per cent and it will take about Rs 80-90 crore for the 4 per cent stake." - Business Standard
🍒 Yes Bank launches mobile payment app ‘Yuva Pay’ : Yes Bank launched its digital wallet solution ‘Yuva Pay’ in partnership with UDMA Technologies to enable contactless payments for its customers. The digital wallet issued under minimum KYC regulations to Yes Bank will offer bill payments via Bharat Bill Pay and provide Unified Payments Interface (UPI) facility to customers.Through the app, customers can pay their utility bills (including municipal, house, water tax, electricity, LPG, DTH, Mobile bill, license fees), make insurance renewals, FASTag recharges, EMI payments, and use the app to make payments at retail outlets. “The program also aims to make the low income groups transition to digital and contactless transactions by enabling wider access to secure electronic payment services," said Anita Pai, chief operating officer, Yes Bank. - Live Mint
🍒 Private banks: Now, RBI can frame reconstruction scheme without putting moratorium in public domain : Call this a fallout of the recent YES Bank debacle and its subsequent rescue episode. The Centre has now decided to empower the Reserve Bank of India (RBI) to handle mishaps in private banks (any banking company) without allowing any loss of public confidence and disruption in financial system. The much talked about Banking Regulation (Amendment) Ordinance 2020 – which was approved by Cabinet on Wednesday — will also allow RBI to prepare a reconstruction scheme without having to first make an order of moratorium on barring deposit withdrawals, official sources said.- Business Line
🍒 Aditya Puri took home Rs 180 crore in FY20 : HDFC Bank chief Aditya Puri took home a total remuneration of Rs 18.9 crore as against Rs 13.7 crore last year. During the year, which was last full year as CEO, Puri also exercised options of Rs 161 crore. Puri, who has led HDFC Bank since its inception in 1994, will be stepping down in October this year as he turns 70. During his term, the bank has grown from a one-branch operation in 1995 to become India’s largest private bank with a market cap of Rs 5.7 lakh crore. Last year, the lender increased its profits by 25% to Rs 26,257, which is more than rest of the sector. According to the bank’s annual report, Puri’s fixed remuneration was Rs 15.9 crore, perquisites Rs 2.2 crore and other benefits Rs 79.8 lakh. Stock options exercised this year at Rs 161 crore were almost four times last year’s Rs 42 crore. - Times of India
🍒 Govt steps in to avoid another PMC Bank like fiasco, aims to ensure proper regulation of co-op banks : The government on Wednesday fast-tracked its plan to protect the interest of small depositors by deciding to bring urban as well as multi-state co-operative banks under regulations of the Reserve Bank of India (RBI) through an ordinance. Briefing the media after the Cabinet meeting on Wednesday, information and broadcasting minister Prakash Javadekar said there are 1,540 urban cooperative and multi-state co-operative banks with 8.60 crore depositors, having total savings of about Rs 5 lakh crore. “Depositors will feel a lot safer after this move,” the minister said. The Cabinet has also approved a proposal to extend an interest subsidy of 2% for 12 months through May 31, 2021 to small-time entrepreneurs in the vulnerable sections of the society under the Mudra (Sishu) scheme. The move will cost the government Rs 1,542 crore. - Financial Express
🍒 RBI staff union hails proposed ordinance on co-operative banks : The All-India Reserve Bank Employees’ Association (AIRBEA) has welcomed the decision of the Union Cabinet to promulgate an ordinance to bring the 1,482 urban and 58 multi-state co-operative banks under the supervision of the Reserve Bank of India, which would protect the interests of an estimated 13.5 crore depositors. “We are particularly happy since we have been demanding this from the late 1990s when the scam at the Madhavpura Mercantile Co-operative Bank in Gujarat pushed co-operative banks across the country into a critical situation, several had folded up, and depositors lost precious money,” Samir Ghosh, General Secretary of AIRBEA, wrote in a letter to the RBI Governor. - Business Line
🍒 CBI chargesheets Rana Kapoor, Kapil Wadhawan in YES Bank fraud case : The Central Bureau of Investigation has filed a chargesheet against Rana Kapoor, Kapil Wadhawan and their kin in the YES Bank fraud case. A CBI statement said that the chargesheet names Dewan Housing Finance Limited, Kapil Rajesh Wadhawan, Dheeraj Rajesh Wadhawan, Belief Realtors Private Limited, RKW Developers Private Limited, DOIT Urban Ventures (India) Private Limited, Roshni Kapoor and Rana Kapoor. The chargesheet was filed in the court of Special Judge, CBI City Sessions Court, Mumbai. In March this year, the CBI had linked the Kapoors and Wadhwans to a YES Bank-DHFL diversion of ₹1,350 crore. They were charged with corruption, cheating, bribery, and criminal misconduct.- Business Line
🍒 The ‘threat’ posed by 96,000 rural co-operatives outside RBI compass : Nine months after the Punjab and Maharashtra Co-operative (PMC) Bank fiasco, the Cabinet has approved an ordinance to bring urban and multi-State cooperative banks under the supervision of the RBI, to ease depositors’ concerns. With numerous co-operative banks going bust time and again, the move to strengthen these banks by improving governance and oversight through the RBI is welcome. But only 1,544 urban co-operative banks (including 58 multi-state cooperative banks), will be covered under the ordinance. There are 96,000-odd rural co-operatives that constitute about 65 per cent of the total assets of co-operatives. Among them, Primary Agricultural Credit (PAC) Societies (about 95,000 in number as of March 2018) continue to remain outside the purview of the Banking Regulation Act, which is a cause for worry, given their wide presence in the remote hinterlands. - Business Line
🍒 SEBI slaps Rs 25 lakh fine on 5 persons for fraudulent trading : Capital markets regulator SEBI on Thursday imposed a penalty totalling Rs 25 lakh on five individuals for indulging in fraudulent trading in the shares of Cupid Trades and Finance Ltd. A penalty of Rs 5 lakh each has been levied on Devang Mukandray Patel, Sonal Devang Patel, Manishaben Maheshkumar Patel, Rajesh Kumar and Kishor Sharma. The regulator had conducted a probe into the trading activities of certain entities in the scrip of Cupid Trades & Finance for the period of January 2010 to December 2014. - Moneycontrol.com
🍒 Govt must support fintechs: Ficci-PWC report : The government should liaise with financial technology firms for distribution of financial benefits and relief measures amid the covid crisis, said a new report by industry body the Federation of Indian Chambers of Commerce and Industry (Ficci) and multinational professional services firm PwC. “The need for digital awareness and presence is prominently recognized by individuals, businesses, and governments alike. Fintechs can act as enablers for the banking and financial sector, playing a crucial role in ubiquity and adoption of digital financial services. A few measures related to policy and regulation can support the fintech sector during the ongoing crisis," the report said. - Live Mint
🍒 With easing of curbs, Indian banks in UK cautiously optimistic about future : With British Prime Minister Boris Johnson announcing further easing of economic and social lockdown enforced by the Covid-19 pandemic— to come into effect from July 4 onwards — Indian banks operating in the UK are cautiously optimistic about business returning to near normal in the foreseeable future. Following the UK government last week lowering the level of alert from 4 to 3 — on a scale of 5 — and relaxing social distancing rules, Loknath Mishra, managing director and chief executive of ICICI UK Plc, indicated: “We are experiencing a rise in the volume of NRI deposits and remittances.” - Business Standard
🍒 Indian money parked in Swiss banks down 6%; third lowest in over 3 decades : unds parked by Indian individuals and enterprises in Swiss banks, including through India-based branches, fell nearly 6 per cent in 2019 to 899 million Swiss francs (Rs 6,625 crore), annual data from Switzerland's central bank showed on Thursday. This marks the second consecutive year of decline in aggregate funds of Indian clients with all Swiss banks, taking the figure to the third lowest level in more than three decades since 1987 when the Swiss National Bank (SNB) began compiling the data. The total amount of CHF 899.46 million, described by SNB as aggregate 'liabilities' of Swiss banks or 'amounts due to' their Indian clients at the end of 2019, included CHF 550 million (over Rs 4,000 crore) of customer deposits; CHF 88 million (Rs 650 crore) held via other banks; 7.4 million (Rs 50 crore) through fiduciaries or trusts; and CHF 254 million (Rs 1,900 crore) as 'other amounts due to customers' in form of securities and various financial instruments. - Business Standard
🍒 IRDAI sets up panel on insurance for use drones : The Insurance Regulatory and Development Authority of India (IRDAI) has formed a working group to suggest insurance products covering the various risks involved in the use of drones. “There is an immediate need to make available suitable insurance products covering the various risks involved in the use of drones,” the insurance regulator said in a circular. Drones are emerging as one of the fastest growing technologies and are being used for a variety of purposes and were playing a ‘significant’ role in the present Covid-19 situation helping the authorities in several activities, IRDAIsaid. - Business Line
🍒 Dvara KGFS sets fund-raising target of ₹600 crore for FY21 : Dvara KGFS, a non-banking finance company focusesd on financial inclusion, has set a fund-raising target of ₹600 crore under debt route for FY21, to meet its disbursement plans for the year and fuel its growth and expansion needs. The announcement was made during a virtual press conference organised by the company on Thursday to highlight the digital banking facilities provided to people in the remote villages during the lockdown. Dvara KGFS said it has facilitated gross cash withdrawal transactions of more than ₹7 crore through its 300-odd branches since April 19 through an Aadhar-Enabled Payment System (AEPS). “We are happy that we were able to provide AEPS service to around 45,000 villagers and facilitate a gross cash withdrawal of more than ₹7 crore through our 300-odd branches in such a short span of time,” said Joby CO, CEO of Dvara KGFS. - Business Line
🍒 Bharti AXA Life rolls out combo product in Covid-19 times : Focussing on a customer-centric approach to its product development strategy, Bharti AXA Life Insurance has come up with a combo product that provides an all-in-one solution for life cover, hospitalisation, accident and critical illness amid the scare and spread of Covid-19 pandemic. This product has been designed solely based on customer feedback. “The new combo product ‘Health and Life Secure’ is a step in that direction to meet this need and has been rolled out based on the findings of a proprietary survey we did. This is expected to be a key differentiator as having all coverages in one plan will save customers from keeping separate policies and paying premium separately for them,” Manik Nangia, Chief Operating Officer, Bharti Enterprises - Financial Services, told BusinessLine in an interview. - Business Line
🍒 Power Finance Corporation sanctions over Rs 1 lakh crore loans for power projects in FY20 : State-owned Power Finance Corporation (PFC) on Thursday said it sanctioned loans over Rs 1 lakh crore for power projects during the 2019-20 financial year. Out of the Rs 1 lakh crore, it successfully disbursed Rs 68,000 crore loans during the last financial year, PFC said in a statement.PFC, under the administrative control of the Ministry of Power, is the largest non-banking financial corporation (NBFC) in power sector in India."PFC ended FY 2019-20 on a strong note despite numerous challenges, including outbreak of COVID-19 virus. The institution delivered a sound financial performance with loan sanctions of more than Rs 1 lakh crore along with loan disbursements of about Rs 68,000 crore in the last financial year," it said. - Moneycontrol.com
🍒 IIFL Finance share price rises 10% after promoter raises stake : IIFL Finance share price rose 10 percent intraday on June 25 after the promoter of the company increased their stake. On June 24 the company's promoter Nirmal Bhanwarlal Jain has acquired 0.12 percent stake in the company via open market increasing total shareholding of the promoter group to 25.06 percent..The share touched its 52-week high Rs 212.80 and 52-week low Rs 58.15 on 14 February 2020 and 03 June 2020, respectively. Currently, it is trading 61.63 percent below its 52-week high and 40.41 percent above its 52-week low. - Business Line
🍒 Bank of India share price falls 5% on Q4 loss : Bank of India share price declined 4.8 percent intraday on June 25 after the public sector lender reported a massive loss for the March quarter of 2020. The stock, which has corrected 40 percent in the last year, was trading at Rs 52.30, down 4.74 percent on the BSE at 1433 hours. - Business Line
🍒 IOB share price locked at 10% upper circuit on Q4 profit : Indian Overseas Bank (IOB) share price locked at 10 percent upper circuit on June 25 after the company posted net profit in the quarter ended March 2020. The company in the Q4 has reported net profit at Rs 143.8 crore against loss of Rs 1,985.2 crore in the same quarter last fiscal. - Business Line
🍒 Sensex ends flat, Nifty closes at 10,288 : The benchmark indices closed today's volatile session on a negative note. The Nifty finished the June F&O session at 10,288.90, down 16.40 points or 0.16 per cent. The BSE Sensex ended at 34,842.10, down 26.88 points or 0.08 per cent.Asian Paints, ITC, Eicher Motor were the top gainers. While, ICICI Bank, IndusInd Bank and Powergrid were top laggards. Nifty FMCG and Pharma ended in green zone, while IT and Media closed in red.
🍒 Rupee settles 7 paise higher at 75.65 against US dollar : The rupee erased its initial losses and settled 7 paise higher at 75.65 (provisional) against the US dollar on Thursday tracking positive domestic equities and foreign fund inflows. The rupee opened at 75.76 against the US dollar, but gathered strength and closed at 75.65, higher by 7 paise over its previous close. It had finished at 75.72 against the greenback on Wednesday.
🍒 Shares of Central Bank of India in Stock Market : 82% of moneycontrol users recommend buying Central Bank of India. In Bse, stocks quoted at Rs.17.27 against Prev Close Rs.17.44. In NSE, shares traded at Rs.17.25 against Prev Close Rs.17.40....
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Today's Banking / Financial News at a Glance 25.06.2020
☕ 25.06.2020: Today's Banking / Financial News at a Glance
🍒 Nothing should threaten safety, dignity of bank employees: FM on banker assault : A day after an assault on a female staff within bank premises in Surat, Finance Minister Nirmala Sitharaman on Wednesday said nothing should threaten the safety and dignity of bank employees and that she will closely follow the matter. Taking to twitter, Sitharaman said her office has spoken to Commissioner of Police, Surat City, R B Brahmbhatt, who has assured her that the accused constable shall be suspended immediately.A short video went viral on Twitter on Tuesday which showed a person manhandling a female banker, following which #ShameSuratPolice started trending on the social media platform.“Will be closely following this matter. Wish to assure that the safety of all members of staff in banks is of importance for us. Amid challenges, banks are extending all services to our people. Nothing should threaten their safety and dignity,” Sitharaman said.She further said that she has spoken to Surat Collector Dhaval Patel on the incident. “Although currently on leave, he assured me that timely action will be taken on the FIR filed late night,” she said. “My office spoke to the Commissioner of Police... He has assured us that he himself will visit the branch and assure the staff of their safety. Also he assured that the accused constable shall be suspended immediately,” Sitharaman added. - economic times
🍒 Govt okays Ordinance to give more teeth to RBI over co-operative banks : The Union government on Wednesday decided to take the Ordinance route to give more powers to the Reserve Bank of India to supervise co-operative banks, akin to commercial banks. The RBI will get more auditory and managerial powers over 1,482 urban co-operative banks and 58 multi-state co-operative banks after the Ordinance is approved by the President to become a law. The Ordinance will, however, need an approval from Parliament within six months of becoming a law. “The urban co-operative and multi-state co-operative banks will come under the supervisory control of the RBI. The supervisory norms which apply to commercial banks will also be applicable to them. The move will help keep the depositors’ money safe,” Information and Broadcasting Minister Prakash Javadekar said in a press briefing. - Business Standard
🍒 Canara Bank's net loss widens to Rs 3,259 cr in Q4 on back of provisioning : State-owned Canara Bank on Wednesday reported widening of its standalone net loss to Rs 3,259.33 crore for the fourth quarter ended March 2020. The bank had registered a net loss of Rs 551.53 crore during the corresponding January-March 2019 quarter. However, income on a standalone basis during January-March rose to Rs 14,222.39 crore, compared with Rs 14,000.43 crore in the year-ago period, Canara Bank said in a regulatory filing. The lender made a huge provisioning of Rs 5,375.38 crore for the March 2020 quarter, even as it was lower than the Rs 5,523.50 crore parked aside for corresponding period of 2018-19. - Business Standard
🍒 RBI pulls up banks, NBFCs for non-transparency in digital loans : The Reserve Bank of India (RBI) on Wednesday said digital lending platforms must disclose to the customers which bank or non-bank financial company (NBFC) these platforms are working for so that customers availing so called ‘hassle free’ loans are not harassed later. Mounting a sharp critique on banks and NBFCs, the central bank noted that these digital platforms, of which many have emerged now, claim to offer hassle free loans to retail individuals, small traders, and other borrowers, but don’t disclose who they are associated with. Banks and NBFCs are either direct floaters of these platforms, some of whom are also registered with the RBI as ‘digital only’ lenders, or the financial institutions have outsourced the platform to a third party. “Of late, there are several complaints against the lending platforms which primarily relate to exorbitant interest rates, non-transparent methods to calculate interest, harsh recovery measures, unauthorised use of personal data and bad behavior,” the RBI said. - Business Standard
🍒 Karur Vysya Bank Q4 net profit up 40% at Rs 83.7 crore : Karur Vysya Bank on Wednesday reported 39.5 percent jump in net profit at Rs 83.70 crore for the quarter ended March 2020 on higher income from other sources, even as provisioning went up substantially. The private sector lender had posted a net profit of Rs 60.02 crore during the corresponding January-March quarter period of preceding fiscal year 2018-19. The bank's provisioning for bad loans and contingencies during March quarter of FY20 were raised to Rs 429.27 crore as against Rs 352.34 crore in the year-ago period, Karur Vysya Bank said in a regulatory filing. - moneycontrol.com
🍒 IDBI Bank don't see any 'material impact of Covid-19' on future results : LIC-owned IDBI Bank on Wednesday said despite challenges arising out of the Covid-19 pandemic, it does not see any material impact on its financial results going ahead. The implementation of lockdown and extensions has resulted in disruptions of business and common life, the lender said in a filing to the exchanges. The major identified challenges for bank borrowers across various industry sectors is expected to arise from eroding cash flows and elongated working capital cycles, it said. "Despite these events and conditions, our results in future are not expected to be materially adverse nor would have any significant impact on the going concern assumption," the lender said. - Business Standard
🍒 Google Pay says all UPI transactions on its platform are fully protected : Google Pay on Wednesday said it works with banks to allow payments via UPI, and all transactions made through its platform are fully protected by redressal processes laid out by guidelines of RBI and NPCI. The clarification came after a buzz on social media that issues arising while transferring money through Google Pay are not protected by law as the app is unauthorised. "Some quotes on social media, wrongly attributed to the RBI, claim that issues arising while transferring money through Google Pay are not protected by the law, since the app is unauthorised. This is incorrect and can be verified on NPCI's website," a Google spokesperson said. The spokesperson added that RBI has stated no such thing either in the court hearing or in its written response to the High Court. - Business Standard
🍒 Tamilnad Mercantile Bank net profit grows 57.7% to Rs 408 cr in FY20 : Tamilnad Mercantile Bank Limited (TMB) has posted 57.7 per cent growth in net profit at Rs 407.69 crore in 2019-20 from Rs 258.58 crore the previous year. Total business grew 4.7 per cent to Rs 65,061 crore from Rs 62,154.67 crore. Gross NPAs of the bank came down 12.6 per cent to Rs 1,020.98 crore, or 3.62 per cent of gross advances, from Rs 1168.11 crore (4.32 per cent) the previous year. Net NPAs were down 21.85 per cent to Rs 497.47 crore (1.80 per cent) in FY 20, as compared to Rs 636.54 crore (2.40 per cent). The bank has been giving continued thrust on advances to priority sectors like agriculture, MSME, education and Housing, constituting 68.49 per cent of its Adjusted Net Bank Credit (ANBC), above the regulatory requirement of 40 per cent. Its deposits rose to Rs 36,825.03 crore (Rs 35,136.23 crore the previous year) up 4.81 per cent.- Business Standard
🍒 Cooperative banks to be supervised by RBI; govt to bring an ordinance : The Union government has decided to bring 1,482 urban cooperative banks and 58 multi-state cooperative banks, under the supervisory powers of the Reserve Bank of India, said I&B minister Prakash Javadekar after a meeting of the Union Cabinet earlier today. The RBI's powers as they apply to the scheduled banks will also apply to cooperative banks, said the minister. Union government will bring an ordinance to put cooperative banks under RBI supervision, announced the I&B minister. The decision to bring 1,540 cooperative banks under RBI's supervision will give an assurance to more than 86 million depositors in these banks that their money amounting to Rs 4.84 trillion will stay safe, he added. - Business Standard
🍒 DHFL auditor reports fair value loss of ₹18,853 cr, mismatch of ₹3,018 cr, ICD dues of ₹3,786.24 cr : According to the recent auditing report of Dewan House Finance Corporation (DHFL), a company which is under a moratorium, DHFL has a fair value loss of Rs 18,853 crore as of March 2020, mismatch of Rs 3,018 crore. The auditor further noted that the recoverability of inter-corporate deposits (ICDs) of Rs 3,786.24 crore “is yet to be ascertained,” Indian Express reported. According to the auditor, KK Mankeshwar & Co, DHFL’s wholesale loan portfolio aggregating Rs 49,585 crore (after classification of this portfolio to “held for sale” in the previous year ended March 2019) has been “fair valued” as of March 2020 at Rs 30,732 crore, which reflects the fair value loss of Rs 18,853 crore. “Out of this, fair value loss aggregating to Rs 5,986 crore has been accounted up to December 2019 and balance loss of Rs 12,867 crore has been charged to the statement of profit and loss for the quarter ended March 2020,” it said. - Business Line
🍒 Outsourcing of financial services: RBI raises concerns over non-transparency in digital transactions : The Reserve Bank of India (RBI) has raised concerns regarding non-transparency in transactions and violation of extant guidelines on outsourcing of financial services and Fair Practices Code vis-a-vis digital delivery in credit intermediation by banks and non-banking finance companies (NBFCs). In this regard, the RBI has directed banks and NBFCs that have engaged digital lending platforms as their agents to follow its instructions, including disclosing the names of the platforms engaged as agents on their websites, and ask the agents to disclose upfront to the customer the name of the bank/ NBFC on whose behalf they are interacting with him. - Business Line
🍒 RBI asks banks, NBFCs to disclose digital lending agents upfront : To make digital lending more transparent, the Reserve Bank on Wednesday directed banks, NBFCs and digital lending platforms to disclose full information upfront on their websites to customers. The direction comes against the backdrop of several complaints relating to exorbitant interest rates and harsh recovery measures, among others, against lending platforms. While the banks and non-banking finance companies (NBFCs) are being directed to disclose the names of agents engaged by on their websites, digital lending platforms have been asked to tell their customers upfront the names of the bank/ NBFC on whose behalf they are disbursing loans. "...outsourcing of any activity by banks/ NBFCs does not diminish their obligations, as the onus of compliance with regulatory instructions rests solely with them," the RBI said in a communication to the scheduled commercial banks and NBFCs. - economic times
🍒 GIC Q4 net profit surges to ₹1,197 crore : State-run GIC Re saw its net profit nearly double to ₹1,197.41 crore in the fourth quarter of 2019-20 as against ₹603.37 crore in the same period a year ago. In the January to March 2020 quarter, gross premium increased nearly 14 per cent to ₹9,217.84 crore as against ₹8,089.35 crore a year ago.GIC had an underwriting loss of ₹463.58 crore in the fourth quarter last fiscal versus an underwriting profit of ₹101.16 crore a year ago.However, in fiscal year 2019-20, it registered a net loss of ₹359.09 crore compared to a net profit of ₹2,224.31 crore in 2018-19. - Business Line
🍒 NBFC-MFIs to begin fresh lending only after expiry of moratorium : A majority of non-banking finance companies-microfinance institutions (NBFC-MFIs) are planning to resume fresh lending in September, while the weak liquidity situation may impede the lending capacity of small and medium firms, Microfinance Institutions Network (MFIN) said. At present, some of these lenders are lending to merely a small fraction of borrowers who have started paying back dues after a two-month pause. The industry body believes that about 60-70 percent MFIs would gear up only after the expiry of the Reserve Bank of India-guided moratorium of loan repayment. But the sector would take more time to restore normalcy. The total estimated collective disbursements by NBFC-MFIs up to September could merely be Rs 2,884 crore, Microfinance Institutions Network (MFIN) said in a report. This is significantly less than the average disbursements of around Rs 6,600 crore per month seen in FY20. “The weak liquidity situation of NBFC-MFIs has restricted their ability to disburse loans to their customers. The focus of the NBFC-MFIs would be to preserve liquidity but at the same time they will have to start re-lending in a gradual manner to their clients so that they are able to restart their livelihoods,” MFIN said, after doing a study on the impact of Covid relief measures. Around 45 MFIs out of 54 MFIN members have responded to the study, which has been reviewed by ET. - Economic times
🍒 Lenders prepare for rise in gold loan demand in FY21 : Demand for loans against gold is likely to increase this fiscal as easy approvals, surging value of gold and risk aversion by lenders push people to pledge their precious metal in exchange for cash. Lenders are already seeing an increase in demand for these loans and some have started new gold loan verticals with expectations that it will become the fastest growing segment this fiscal. "There is a new class of customers looking to generate cash by pledging gold because banks are now wary of extending unsecured loans like credit cards and personal loans because of the post Covid slowdown. Gold loans are a quick way for people to access cash when other avenues are not open," said CVR Rajendran, CEO at CSB Bank. - economic times
🍒 Short-term Covid-19 policy: Pricing, unpredictability key challenges for insurers : The decision of the insurance regulator to permit specific, short-term health insurance products for Covid-19 treatment is timely. It will go a long way in providing relief to scores of people who are now worried over the financial implications of the dreaded virus. The Insurance Regulatory and Development Authority of India (IRDAI) had on Tuesday framed guidelines for short-term health insurance products for Covid-19. According to the guidelines, insurers can now offer cover against Covid-19 for a minimum period of three months to a maximum of 11 months. Optional covers that enhance health insurance coverage are permitted to be offered for the same duration, but no separate add-ons are allowed. - Business Line
🍒 Govt to provide 2% interest subsidy to 'Shishu' borrowers under Mudra Yojna : The government on Wednesday decided to provide 2 per cent interest subvention to borrowers under the 'Shishu' category of the flagship Pradhan Mantri MUDRA Yojana (PMMY). Under the Shishu category, collateral free loans of up to ₹50,000 are given to beneficiaries. The Union Cabinet approved the scheme for interest subvention of 2 per cent to Shishu loan category borrowers under PMMY, outstanding as on March 31, 2020, for a period of 12 months to eligible borrowers, Information and Broadcasting Minister Prakash Javadekar said. - Live Mint
🍒 Banks look to raise funds as uncertainty prevails : Lenders are making a beeline to raise capital and prepare for adversities in a year of expected low credit growth amid the uncertainties over how the covid-19 situation will unfold and affect asset quality. Banks said they will raise capital by tapping the equity markets or through debt instruments. Private sector lender HDFC Bank said on 20 June that it has received board approval to raise up to ₹50,000 crore in the next 12 months by issuing debt securities, while State Bank of India (SBI) said on 16 June that it plans to raise ₹20,000 crore of equity capital in FY21. There is a surge in the number of banks and other financial institutions hitting the market for capital, but institutional investors are seeking additional safeguards, said a person, requesting anonymity. “There is a lot of uncertainty in the market and investors are willing to wait before committing funds. This will, however, not be a problem for large banks with better asset quality." - Live Mint.
🍒 HDFC Bank well placed to ride out Covid-19 storm: Aditya Puri : Aditya Puri, MD and CEO of HDFC Bank, believes the lender is well placed to ride out the Covid-19 storm and will continue to focus on priorities such as re-imagining the branch channel, increasing its semi-urban and rural footprint, payments business and digital transformation. It will also focus on virtual relationship management as well as its subsidiary businesses. “We intend to continue to innovate, adapt, and disrupt to remain trailblazers…We will continue to invest ahead in technology, computing and artificial intelligence to provide hyper-personalised offerings and experiences to our customers to become a digital first bank where every customer interaction at any touchpoint is intuitive, seamless, contextual and predictive,” Puri said in the bank’s Integrated Annual Report for 2019-20. - Business Line
🍒 Indiabulls Group's employees personal details leaked on the dark web: Cyble : Personal details of Indiabulls Group employees were leaked on the dark web on Wednesday by ransomware attackers, according to US-based cyber security firm Cyble. The leak follows the threat by Clop ransomware attackers who had threatened to release details on Tuesday if the group failed to make a payment within 24 hours.Contrary to the group’s claim on Tuesday, the data leaked on Wednesday consists of sensitive personal information like employee names, Aadhar cards, Pan Cards, phone numbers, passport, driving license and personal addresses. The documents have been reviewed by ET. - Economic Times
🍒 Navi launches lending app for instant personal loans : Sachin Bansal co-founded Navi has launched Navi Lending App for instant personal loans up to ₹5 lakh. “Aimed at Indians in the middle-income segment who are comfortable with smartphones and technology, the Navi app provides instant loans of up to ₹5 lakh with tenures of up to 36 months, via a completely digital and contactless process for customers,” the company said in a release on Wednesday. It is available for download on the Google Play store and customers can check their eligibility, select the loan and EMI amount, and enter their PAN and Aadhaar number to receive the loan amount in their bank account. The process is paperless and does not require uploading of any documents like pay slips or bank statements, it further said. - Business Line
🍒 Aye Finance raises ₹210 crore in Series E round led by CapitalG : aw participation from Aye’s existing investors LGT Lightstone, Falcon Edge Capital, A91 Partners and MAJ Invest. With this investment, Aye’s total equity funding since inception exceeds ₹690 crore, the company said in a statement. “Difficult times are a true test of a good lender and we have already started showing significant improvements in customer repayments in the past months. Our loans are underwritten with cluster insights and this continues to assure good repayment behaviour in our portfolio,” Sanjay Sharma, Managing Director at Aye Finance, said. - Business Line
🍒 Ability of DHFL to remain a ‘going concern’ depends on outcome of resolution process: Auditor : The ability of troubled Dewan Housing Finance Corporation (DHFL) to remain a ‘going concern’ will depend on the resolution process, its auditor has noted. It has also reported a mismatch of ₹3,018 crore and said the recoverability of inter-corporate deposits of over ₹3,786.24 crore is “yet to be ascertained”. These comments form part of the auditor’s note of the housing finance company’s results for the fourth quarter of FY20. The auditors – KK Mankeshwar and Co – have also flagged a fair value loss of ₹18,853.30 crore in the wholesale loan portfolio. “Out of this fair value, loss aggregating to ₹5,986.06 crore has been accounted up to December 31, 2019, and balance loss of ₹12,867.24 crore has been charged to the Statement of Profit and Loss for the quarter ended March 31, 2020,” it further said. - BusinessLine
🍒 After rating downgrade on bonds, Yes Bank assures it has adequate liquidity : A day after Icra and Care Ratings downgraded upper tier II bonds of Yes Bank to default, the lender said on Wednesday it has adequate liquidity to meet its obligations. “For Basel II, upper tier II bonds, the specific features of the instrument require debt servicing to be linked to the bank meeting regulatory norms on capital adequacy," Yes Bank said in a regulatory filing on Wednesday. - Live Mint
🍒 Nitin Gadkari launches scheme to provide Rs 20,000 crore guarantee cover to MSMEs : Union Minister Nitin Gadkari on Wednesday launched the Credit Guarantee Scheme for Sub-ordinate Debt to provide Rs 20,000 crore of guarantee cover to two lakh micro, small and medium enterprises. The funding scheme to help the distressed MSME sector entails a sub-debt facility to the promoters of those operational MSMEs that are distressed or non-performing assets (NPAs). It is also called the 'Distressed Assets Fund — Sub-ordinate Debt for MSMEs'. According to the scheme, the guarantee cover worth Rs 20,000 crore will be provided to the promoters who can take debt from the banks to further invest in their stressed MSME units as equity. - moneycontrol.com
🍒 Gold at fresh high, Axis Securities sees yellow metal at Rs 50,000/10 gm soon : Gold prices climbed Rs 455 to 48,575 per 10 gram to hit a fresh high in the Mumbai bullion market on the back of a weakening rupee versus the dollar and strong global cues. The precious metal jumped to an eight year high in the international market on rising coronavirus cases globally and expectation of further stimulus from global central banks. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,431, Rs 44,495 and Rs 48,575 plus 3 percent GST. Silver prices gained Rs 65 to Rs 48,505 per kg from its closing on June 23.
🍒 Markets updates: Sensex snaps 4-day winning run, plunges 561 points as financial stocks tank : Snapping its four-day rising streak, equity benchmark Sensex surrendered all early gains to plunge 561 points on Wednesday, tracking a sell-off in financial stocks and weak cues from global markets. The 30-share index settled 561.45 points, or 1.58 per cent, lower at 34,868.98. It hit an intra-day high of 35,706.55 and a low of 34,794.93.Similarly, the NSE Nifty fell 165.70 points, or 1.58 per cent, to 10,305.30. During the day, it touched a peak of 10,553.15 and a low of 10,281.95.IndusInd Bank was the top laggard in the Sensex pack, tanking over 7 per cent, followed by ICICI Bank, PowerGrid, Axis Bank, SBI and Bharti Airtel.On the other hand, Asian Paints, ITC, Nestle India and Reliance Industries were among the gainers.
🍒 Rupee settles 6 paise lower at 75.72 against US dollar : The rupee pared its early gains to settle down by 6 paise at 75.72 against the US currency due to concerns over fresh trade tensions between the EU and the US and rising COVID-19 cases. The rupee opened at 75.61 against the US dollar, but lost ground and closed at 75.72, registering a fall of 6 paise over its previous close. It had settled at 75.66 against the greenback on Tuesday.
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Today's Banking / Financial News at a Glance 23.06.2020
☕ 23.06.2020: Today's Banking / Financial News at a Glance
🍒 Emergency Credit Line Guarantee Scheme: PSBs & private banks have sanctioned loans worth Rs 75,426 crore to MSMEs: Nirmala Sitharaman :Finance Minister Nirmala Sitharaman on Juen 22 said The Atmanirbhar Bharat initiative of the government seems to have hit the ground running with Finance Minister Nirmala Sitharaman informing that the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme (ECLGS) by public sector banks and private banks stands at Rs 75,426.39 crore, of which Rs 32,894.86 crore has already been disbursed. Under the ECLGS, the loans sanctioned by public sector banks increased to Rs 42,739.12 crore, of which Rs 22,197.54 crore has been disbursed, she said. - Mneycontrol.com
🍒 RBI nudges banks to decide if red-flagged accounts are fraud : Banks are in a major dilemma over a directive from the Reserve Bank of India (RBI) that lenders should decide whether loan accounts that have been ‘red-flagged’ as suspicious over six months ago are fraudulent or not. If banks do not classify these loans as a fraud, they risk being pulled up for being lenient. If they do, they must set aside provisions for 100% of the loan amount within a year, even if a large part of the loan is recoverable. Also, the fraud tag makes it difficult to sell an otherwise sound business. Last year, a spate of action by enforcement authorities resulted in many large borrowers being red-flagged. The RBI is now pushing banks to take a call on these loans. Of the large accounts red-flagged last year, two are DHFL and Religare. The red-flag account concept was introduced by the RBI to get banks to act on early warning signals, which include raids by regulatory and tax authorities. - economic times
🍒 CANARA BANK AVERTS HOUSING LOAN FRAUD OF INR.1.50 CRORE : Alert Canara Bank officials recently averted a banking fraud to the tune of INR 1.50 Cr. On 15th of June, one walk in customer along with his friend visited one of the Bengaluru branches of Canara Bank to avail a Housing Loan jointly with his spouse and submitted multiple documents for verification. The loan was to be availed for the purchase of two flats at K R Puram, Bengaluru. As a standard procedure, he submitted all the necessary documents and a Saving Bank account was opened subsequently by the Branch. On the basis of the initial PAN & Aadhaar documents submitted by him, Bank generated CIBIL Reports which reflected a satisfactory score. The Bank however suspected something amiss on noticing multiple enquires from other financial institutions and sought additional ID proof. The CIBIL report generated on new ID proof revealed several loans availed from other banks. The report also disclosed that the person is holding another PAN Card on which he has already taken three housing loans from other banks and all those housing loan accounts have been classified as NPAs. On further enquiry, it also came to light that the person had submitted fabricated account statement, salary slips and Employer ID Cards. In accordance to the instructions of the Higher Office, the branch requested assistance from the nearby police station to look into the matter. Accordingly, the Branch informed the parties to visit the bank on 20.06.2020 and was arrested by the Police on their visit thereby averting the fraud.-globalprimenews
🍒 After CERT-In, now RBI warns consumers of phishing scams : Two days after CERT-In’s warnings over possible rise of phishing and consumer fraud attacks on digital payment channels, India’s banking regulator has issued a similar warning to the general public to ensure safety while transacting online. "In recent days there are reports of users falling prey to fraudsters who are luring them on fictitious pretexts, such as alleged completion of KYC requirements, impersonating identities and websites of banks and payment system operators, etc,” the central bank said in a statement.RBI has thereby asked consumers to not share OTP, PIN to and other secure financial details in person or through any public networks. Furthermore, consumers have also been asked not to carry these details in the physical form as well in their wallets or pockets. “Safety and security of digital transactions are of paramount importance to their users,” RBI said. “The Reserve Bank has put in place many mechanisms to ensure the same by continuously and actively undertaking digital awareness campaigns.” - economic times
🍒 RBI asks lenders to submit analysis on COVID-19 impact : The Reserve Bank of India has asked lenders to submit an analysis of the likely impact of Covid-19 and the loan moratorium on their books in what could be a pre-cursor to allowing a one-time restructuring, two people familiar with the development said. This would also involve building and reporting worst-case scenarios on asset quality and capital requirements, one person said. Lenders said there could be a one-time restructuring after the regulator studies the extent of potential damage.The RBI has suggested that banks look at various scenarios, ranging from mild to worst, as the regulator and the government prepare to report to the Supreme Court on how a likely waiver of interest on loans under moratorium could impact the banking system. “We received a communication from the regulator last week whereby we need to conduct stress tests on our books and inform them about the impact of the pandemic on various aspects like asset quality and provisions,” said a bank official. “We have already conducted stress tests on our books till the end of May, but the impact of the second moratorium will be known by end of June.” - economic times
🍒 Covid-19 impact: RBI asks banks to carry out detailed stress testing : The Reserve Bank of India (RBI) has asked banks to carry out detailed stress tests due to the impact of Covid-19 on their books and put capital-raising plans with board approvals in place, if needed. This is the first major regulatory move by the central bank to ascertain the health of banks and take proactive measures to ring-fence them after the outbreak of the pandemic. The central bank in its communiqué to chief executive officers of banks on June 19 said stress tests would take into account three scenarios — baseline, medium, and severe stress — which will cover all key financial parameters pertaining to the quality of the book. If there is significant capital impairment, clear-cut-board approved capital-raising plans are to be in place. While “precautionary provisioning for Covid-19 has not been explicitly stated in the letter, it cannot be ruled out”, said a source. This may call for even more capital to be raised by banks, and the sums set aside for state-run banks for their recapitalisation in the Union Budget may need an immediate revisit. The central bank has not set a deadline for banks to conclude the stress-test exercise, but senior bankers opine that some were already looking at this, and will now fast-track it by September-end, when they will have a better picture of their books after the moratorium on the servicing of loans and a 180-day view on the performance of borrowers’ accounts. - Business Standard
🍒 RBI bars YES Bank from coupon payment on Upper Tier II bonds : The Reserve Bank of India has restrained private sector lender YES Bank to pay interest (coupon) on the Tier II bonds as its capital adequacy ratio was below regulatory requirements. The private lender had approached banking sector regulator RBI seeking approval to pay interest due as on June 29, 2020 for Upper Tier II Bonds. These Unsecured Non-Convertible Upper Tier II bonds carry coupon of 10.25 per cent.
Its overall capital adequacy ratio stood at 8.5 per cent at end of March 2020 with Common Equity tier I (CET I) of 6.3 per cent. Its stock was trading 1.8 per cent lower on BSE. The capital adequacy ratio is below the regulatory requirements. The bank informed exchanges that RBI has expressed its inability to accede to bank’s request for payment of Interest due, since it does not meet the minimum capital requirements currently. Therefore, the bank would be unable to pay Interest or coupon on the said Upper Tier II Bonds. - Busiess Standard
🍒 SBI mobilises 13,212 kg gold through Gold Monetisation Scheme : State Bank of India (SBI) has mobilised 13,212 kg of household and institutional gold through the Gold Monetisation Scheme (GMS), according to the state-owned bank's annual report. It added that the country's largest lender collected as much as 3,973 kg of gold during 2019-20 under the GMS, a programme launched by the government to utilise gold lying idle with individuals as well as trusts. "During FY2020, (the) bank mobilised gold amounting to 3,973 kgs, bringing the cumulative mobilisation to 13,212 kgs," said SBI in the report. The government launched the GMS in November 2015 to mobilise idle gold held by households and institutions. The objective of the scheme was to facilitate use of idle gold for productive purposes, and also reduce the country's dependence on imports. - Moneycontrol.com
🍒 ICICI Bank raises Rs 3,090 cr via stake sale in life, general insurance businesses : India's second-largest private sector lender ICICI Bank has raised more than Rs 3,000 crore by divesting stake in its life as well as general insurance businesses in two separate deals. The stake sale in insurance businesses is in line with this intent, said the bank while announcing its results for the quarter ended March 2020 on May 9 this year, it had stated that it would look at further strengthening the balance sheet as opportunities arise.The stock picked up momentum in last one month, rising 29 percent especially after quarterly earnings scorecard and optimism over gradual re-opening of the economy. It was quoting at Rs 372.05, up 2.24 percent on the BSE at 10:25 hours IST. "....divested 2.15 crore equity shares of face value of Rs 10 each of ICICI Prudential Life Insurance Company, representing 1.50 percent of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of Rs 840 crore," said the lender in its BSE filing. - moneycontrol.com
🍒 Karnataka Bank launches new loan product for small firms : Private sector lender Karnataka Bank on Monday launched KBL Micro Mitra to offer financial assistance of up to Rs 10 lakh to micro manufacturing and service enterprises either to meet their working capital needs for investment purposes. The facility comes with a simplified procedure and competitive rate of interest, the bank said in a press release. Bank's MD & CEO Mahabaleshwara MS, who launched the product, said: “Micro and small entrepreneurs play a vital role in the revival of the economy both in rural and urban India, besides creating huge job opportunities locally. As the economy is now in revival mode, timely credit assistance is crucial and I am sure ‘KBL Micro Mitra’ will be a true friend of the micro entrepreneurs. This facility is available across India through all the branches. The bank will also come out with the digital version of the product soon, the CEO said. - economic times
🍒 Standard Chartered appoints Gaurav Maheshwari as CFO - India : Standard Chartered Bank (India) on Monday announced the appointment of Gaurav Maheshwari as its new Chief Financial Officer effective 22 June 2020. He has taken over from Subhradeep Mohanty, who was elevated as CFO, Africa & Middle East (AME) region. This would be Maheshwari’s second stint at the foreign lender where he had put in 17 years in various roles in the finance team. In his career spanning over 23 years, he has also worked with companies like Coca-Cola and Reuters. In this role, Maheshwari will report to Jean Fernandes, Regional CFO, Asean and South Asia and Zarin Daruwala, India, CEO.
🍒 Google Pay operational validity under High Court lens : Google Pay is set to undergo a judicial examination of its operational validity as a third-party application provider (TPAP) in India’s burgeoning digital payment ecosystem. A two-member bench of the Delhi High Court has ordered a “detailed hearing” on whether the payment platform operates as a TPAP, or a full-fledged payment system provider in which case it would be in violation of the Payment Systems Settlement Act 2007.The bench, headed by Chief Justice DN Patel, said this after the Reserve Bank of India argued on Friday that Google Pay functioned as a third-party service provider and hence didn’t figure on the list of authorised payment system providers. Representatives from the central bank were responding to a public interest litigation filed by Abhijit Mishra, an economist, last year contesting that the payment platform of the US-based Internet giant had violated the local law as it had no authorisation to function as a service provider. - economic times
🍒 Govt keeps off RBI's WMA for three consecutive week : The government's cash flows has improved in the past few weeks with probably due to it not spending on projects keeping it away from using higher Ways and Means Advances (WMA), a temporary short term borrowing plan. Last week was the third straight week that the government did not use the WMA The government refrained from availing WMA since the week ended May 29, for three straight weeks. This is significant considering that the economy has been struggling to pick up activity since the nation-wide lockdown following the COVID Pandemic since end March. The Reserve Bank, as a part of its monetary stimulus package, raised the WMA limit for April-September'21 period twice from Rs 1.2 lakh crore to Rs 2 lakh crore." Essentially the case for WMA comes when there is a temporary liquidity issue in terms of income and expenditure" said Madan Sabnavis, chief economist Care Ratings." The government is not using WMA because it has been controlling expenditure. I don't think there has been any significant pick up in revenues". - economic time
🍒 ICICI Bank sells 1.5% stake in ICICI Prudential Life Insurance : Private sector lender ICICI Bank has sold a 1.5 per cent stake in its life insurance arm, ICICI Prudential Life Insurance, for ?840 crore. “The bank has today divested 21,500,000 equity shares of face value of ?10 each of ICICI Prudential Life Insurance Company Limited, representing 1.50 per cent of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of ?8.40 billion,” it said in a regulatory filing on Monday.Following this, the bank’s shareholding in ICICI Prudential Life Insurance stands at about 51.4 per cent. “While announcing its results for the quarter ended March 31, 2020, on May 9, ICICI Bank had stated that the bank would look at further strengthening the balance sheet as opportunities arise,” the lender said in the regulatory filing. - Business Line
🍒 Dhanlaxmi Bank posts ?65.78-crore net profit in FY20 : Thrissur-based Dhanlaxmi Bank recorded a net profit of ?65.78 crore in the financial year ended March 31, 2020, compared to a net profit of ?11.67 crore in the previous financial year. This is the highest net profit the bank recorded since its inception in 1927. However, the net profit in Q4 was down at ?2.60 crore compared to ?21.28 crore in the corresponding period of the previous quarter due to Covid provisions. Under the general provisions of Covid-19 regulatory package, the bank had to make 5 per cent provisions on SMA accounts during March and another 5 per cent in June. However, the bank has provided 10 per cent in March itself and this has resulted in the decline in profit, said bank officials. The annual operating profit was ?161.97 crore against ?94.93 crore in the previous year, registering a growth of 70.62 per cent. The total business registered a growth of 2.69 per cent at ?17,703 crore from ?17,239 crore in the previous year. The total deposit registered a 2.45 per cent growth and advance 6.65 per cent during FY20. The retail deposits grown by 6.65 per cent.. - Business Line
🍒 Shriram Housing Finance raises ?250 crore : Shriram Housing Finance Ltd (SHFL), on Monday, said it has raised ?250 crore via five-year term loan from a public sector bank at 8.50 per cent. The company, in a statement, also said it has raised ?40 crore from lenders under the Targeted Long-Term Repo Operation (TLTRO) 2 facility at an annualised coupon of 8.55 per cent.With this, the company has raised over ?700 crore in the current calendar year, SHFL added.Ravi Subramanian, Managing Director & CEO, SHFL, said: “We are happy that the market has shown confidence in us even during such challenging times. “Besides the debt raised so far, we also have NCDs in the pipeline. This only strengthens our belief that there is sufficient liquidity available for well managed companies.” - Business Line
🍒 Fino Payments Bank aims to boost presence in north-eastern and southern markets : Fino Payments Bank is looking to increase its penetration in the eastern, north-eastern and southern markets, primarily through the merchant acquisition model. It is also looking to strengthen its presence in Bihar and Uttar Pradesh, where it has been witnessing a surge in demand following the reverse migration due to the Covid-19 pandemic. Plans are also afoot to roll out loan products in tie up with banks and lending institutions. The bank already offers gold loan to its customers in tie up with ICICI Bank. It is now exploring the possibility of rolling out merchant loan and personal loans. “Our strategy, going forward, is to go deeper into north-east and eastern region, and also markets such as Tamil Nadu and Karnataka where our presence has not been too high. This apart, there has been a surge in demand for our services in markets such as Bihar and UP where migrants have moved back during this pandemic. We are trying to identify those pockets and move in that direction,” Shailesh Pandey, Chief Sales Officer, Fino Payments Bank, told BusinessLine. - Business Line
🍒 Fitch downgrades outlook for SBI, 8 other banks following India’s sovereign rating : Fitch Ratings on Monday said it has revised the outlook to negative from stable of nine Indian banks, including State Bank of India, ICICI Bank and Axis Bank, following lowering of India's sovereign rating outlook due to impact of coronavirus pandemic on the economy. The rating agency revised the outlook for Export-Import Bank of India (EXIM), SBI, Bank of Baroda, Bank of Baroda (New Zealand), Bank of India, Canara Bank, Punjab National Bank, ICICI Bank, Axis Bank while affirming their ratings.At the same time, Fitch has affirmed IDBI Bank Ltd's (IDBI) rating, while maintaining the outlook at negative. "The rating actions follow Fitch's revision of the outlook on the 'BBB-' rating on India to negative from stable on June 18, 2020 due to the impact of the escalating coronavirus pandemic on India's economy," it said in a statement. - Live Mint
🍒 Fino Payments Banks expects to open 2.4 lakh new accounts in Q1 : Fino Payments Bank, on Monday, said it expects to end the first quarter of FY21 with 2.4 lakh new accounts and an overall customer base of 20 lakh. It has already opened more than 2 lakh full KYC CASA accounts from April to mid-June amid the pandemic.“The newly opened accounts will further help increase transactions and improve footfalls at Fino points,” it said in a statement.About 80 per cent of the new accounts are savings while 20 per cent are current accounts, it further said, adding that over 90 per cent of the accounts are from rural India, driven largely by the over 2.5 crore people who banked at Fino points during this period. “In addition to Fino’s own customer base, the bank’s network of over 4 lakh points provide services to over 2 crore banking customers every month,” it said. - Business Line
🍒 LIC Housing Finance likely to recover Rs 3,000 crore worth NPAs : LIC Housing Finance is likely to recover about Rs 3,000 crore from borrowers in the current financial year to improve asset quality, an uphill task in a year when the Indian economy is expected to contract. The target is to get back about 50 per cent of gross non-performing assets (GNPAs), Managing Director and Chief Executive Siddhartha Mohanty said.LIC HFC’s asset quality profile came under pressure with GNPAs rising to 2.86 per cent in March, from 1.54 per cent a year ago. Net NPAs also went up to 1.99 per cent, from 1.08 per cent. Its total outstanding portfolio stood at Rs 2.1 trillion in March, up from Rs 1.9 trillion last year. LIC HFC’s provisions for expected credit loss stood at Rs 2,612.39 crore as of March 31, as against Rs 1,659.48 crore a year ago. - Business Standard
🍒 IMGC to pay claims if lenders face delinquencies due to job losses, pay cuts for home-loan borrowers : India Mortgage Guarantee Company (IMGC) has braced itself to pay claims that may arise if lenders face delinquencies due to the pandemic-related job losses and pay cuts among borrowers of home loans guaranteed by it, said a top official.IMGC, which is registered with the Reserve Bank of India (RBI), provides guarantee for the repayment of an outstanding housing loan and interest accrued thereon up to the guaranteed amount to a bank or a housing finance company (HFC)on the occurrence of a trigger event. “We are pretty much prepared to pay the claims because as per RBI guidelines we set aside capital the moment we issue a guarantee for a loan,” said Sovan Mandal, Chief Business Officer. - Business Line
🍒 IRDAI’s new Covid-19 cover likely to be priced at ?600-3,000 : In what could make treatment costs for Covid-19 more affordable, the IRDAI’s proposed standard health cover for the infection could have a premium anywhere between ?600 and ?3,000, depending on the sum insured. “The premium could start at ?600-1,400 per policy to about ?2,000-3,000,” said an executive with a public sector general insurer.Most health and general insurers are working out pricing for the proposed standard Covid-19 health cover, which will have a sum insured of ?50,000-5 lakh.“From July onwards, the new Covid cover product will be available. Pricing will be significantly lower than the normal product because it will be a single diseases cover. It is not meant to cover any other existing ailments,” said another executive with a private sector insurance company. - Business Line
🍒 DBS Bank logs Rs 111 cr profit in FY20 from India operations : Singapore-based DBS Bank on Monday reported nearly eight-fold jump in profit for 2019-20 from its India operations at Rs 111 crore. The bank had posted a net profit of Rs 14.5 crore in 2018-19. The lender, whose network in India has now increased to 34 branches, reported 24 per cent growth in net revenues at Rs 1,444 crore during the last financial year and a fall in stressed assets. DBS Bank India CEO Surojit Shome said the performance should be seen as being demonstrative of the bank’s focus and commitment to India. Despite the prevailing headwinds, we are confident that we will continue to capitalise on growth opportunities, Shome said. Gross non-performing assets ratio reduced to 2.60 per cent as of March 31, 2020 as against 3.13 per cent by the year-ago same period. - Moneycontrol.com
🍒 PNB shares up 2% on asset quality improvement; Credit Suisse retains underperform rating : Punjab National Bank (PNB) share price was up over 2 percent intraday on June 22 despite the PSU bank reporting fall in its standalone net loss at Rs 697.20 crore in the quarter ended March 2020, compared to Rs 4,749.64 crore of loss in the corresponding quarter of the previous fiscal year. The stock price has gained 32 percent in the last 1 month and was quoting at Rs 35.25, up Rs 0.80, or 2.32 percent at 10:34 hours. It has touched an intraday high of Rs 36.00 and an intraday low of Rs 35.05. It was also one of the most active stocks on NSE in terms of volumes with 3,23,32,561 shares being traded at 10:42 hours. - Moneycontrol.com
🍒 PNB struggles to shake off a painful past; COVID-19 may exacerbate pain : The first major takeaway from the Punjab National Bank (PNB) Q4 numbers is that the bank is struggling hard to address its bad loan situation. The gross non-performing assets (GNPAs) is now down at 14.21 percent for the quarter compared to 15.50 percent in the year on year period. The net NPA also stands reduced at 5.78 percent as against 7.18 percent as on December, 2019. The provision coverage ratio (PCR), a critical efficiency parameter, improved to 77.79 percent from 74.50 percent. The high provisions, however, have caused another quarter of losses, an inevitable pain the lender couldn't have avoided. - Moneycontrol.com
🍒 EPFO adds 1.39 crore subscribers in last two financial years : Retirement fund body added 1.39 crore new subscribers in last two financial years, the Ministry of Labour & Employment said on Monday. "Recently published provisional payroll data by the EPFO highlights the ever growing trend of increasing subscriber base for EPFO, since the collation of payroll data from September 2017," the ministry said in a statement.The payroll data presents the consolidated annual figures for 2018-19 and 2019-20. Net addition to subscriber base rose from 61.12 lakh added in 2018-19 to 78.58 lakh in 2019-20, registering a 28 per cent growth, it added. - moneycontrol.com
🍒 Dhanlaxmi Bank Q4 profit falls over 90% at Rs 3 crore : Dhanlaxmi Bank on Monday reported 90.5 per cent decline in net profit at Rs 2.60 crore for March quarter 2019-20 due to higher provisions for bad loans and contingencies. The bank had posted a profit of Rs 27.61 crore in January-March period of the preceding financial year. Income during the quarter under review rose to Rs 280.98 crore from Rs 268.97 crore in the year-ago same period, the bank said in a regulatory filing.- moneycontrol.com
🍒 Shriram Housing Finance raises Rs 290 crore debt from banks : Shriram Housing Finance Ltd (SHFL) on Monday said it has raised long-term debt of Rs 290 crore from banks. The mortgage financier raised Rs 250 crore long-term loan from a state-run bank at 8.50 per cent, repayable in 5 years, and also raised Rs 40 crore through non-convertible debentures (NCDs) under the Reserve Bank of India's (RBI) targeted long-term repo operations (TLTRO 2) at an annualised coupon of 8.55 per cent, a release said. "Besides the debt raised so far, we also have NCDs in the pipeline. This only strengthens our belief that there is sufficient liquidity available for well-managed companies," SHFL Managing Director and CEO Ravi Subramanian said in the release. - Moneycontrol.com
🍒 UTI AMC gets SEBI's go ahead to launch IPO : UTI Asset Management Company (AMC) has received markets regulator Sebi's go ahead to raise a little over Rs 3,000 crore through its initial public offering (IPO). The IPO of the country's largest asset management company in terms of total assets under management (AUM) comprises sale of 3,89,87,081 equity shares by existing shareholders, according to the draft red herring prospectus (DRHP). State Bank of India (SBI), Life Insurance Corporation (LIC) and Bank of Baroda are offering to sell 1,04,59,949 shares each, while Punjab National Bank (PNB) and T Rowe Price International are planning to offload 38,03,617 shares each. The public offer is expected to raise a little over Rs 3,000 crore, market sources said. - moneycontrol.com
🍒 Gold hits new high of Rs 48,130 per 10 gram, silver up Rs 730 per kg : Gold prices extended gains for the fourth consecutive day to hit a new lifetime high of Rs 48,130 per 10 gram in the Mumbai bullion market on June 22, tracking global cues. The metal continued the upside on heightened risk sentiments with a record rise in coronavirus cases across the world. The rate of 10 gram 22-carat gold in Mumbai was Rs 44,087 plus 3 percent GST, while 24-carat 10 gram was Rs 48,130 plus GST. The 18-carat gold quoted at Rs 36,098 plus GST in the retail market. Silver prices jumped Rs 730 to Rs 48,825 per kg from its closing on June 19.
🍒 Rupee surges 17 paise to end at 76.03 against US dollar : he rupee on Monday appreciated 17 paise to close at 76.03 (provisional) against the US dollar in line with positive equity markets amid sustained foreign fund inflows. Besides, a weak US dollar against major global currencies also aided the rupee’s upward movement, forex dealers said.
🍒 Sensex gains 170 points, Nifty ends around 10,300 : The benchmark indices started the session on a high note and held on to the gains over the first half. The indices were in the positive territory throughout. The broader benchmark indice NSE Nifty was at 10,311.20, up 66.80 points or 0.65 per cent. The BSE Sensex closed at 34,911.32, up 179.59 points or 0.52 per cent.In the sectoral indices, Bank, Pharma and Metal did well, meanwhile IT ended in red. Bajaj Auto, Bajaj Finance and Coal India were the top gainers. Whereas, Wipro, GAIL, and ONGC were the top laggards.
🍒 Shares of Central Bank of India in Stock Market : 89% of moneycontrol users recommend buying Central Bank of India. In Bse, stocks quoted at Rs.16.81 against Prev Close Rs.16.53. In NSE, shares traded at Rs.16.80 against Prev Close Rs.16.55..
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