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☕ 10.06.2020: Today's Banking / Financial News at a Glance
🍒 FM Sitharaman reviews progress of Rs 3 lakh crore credit guarantee scheme for MSMEs :Finance Minister Nirmala Sitharaman on Tuesday held a review meeting on credit guarantee scheme with heads of public sector banks, and asked them to expedite loan disbursement under the Rs 3-lakh crore ECLGS for MSME sector, hit hard by coronavirus-induced lockdown. The meeting on Emergency Credit Line Guarantee Scheme (ECLGS) was held through a video conference, and the minister appreciated the efforts of banks in execution of the scheme. "Hon'ble FM @nsitharaman Ji complimented PSBs on rapid traction for achieving sanctions of Rs 20,000 Cr under ECLGS. Also advised to maintain proactive outreach at branch level and keep Forms for ECLGS simple & formalities at minimum," Department of Financial Services said in a tweet."PSBs to continue focus on sanction & reaching out to eligible MSMEs. To also target meeting credit needs of other businesses," it said. Earlier in the day the ministry gave cluster wise data of loans sanction till June 8. As of 8 June 2020, #PSBs have sanctioned loans worth Rs 1,109.03 cr for #MSME hubs in 12 States under the 100% Emergency Credit Line Guarantee Scheme, of which Rs 599.12 cr has already been disbursed to 17,904 accounts," the minister tweeted. - Moneycontrol.com
🍒 With MSME scheme not picking up pace, government wants bankers to be more aggressive : With the Rs 3 lakh crore emergency credit guarantee loan scheme yet to take off, the government is pushing hard to make the scheme work. The Finance Ministry on June 9 did a review of the scheme’s progress so far in a meeting with senior bank officials. The MSME ministry is likely to have a webinar with state level banking committees (SLBC) officials as early as June 10. Till now, about Rs 20,000 crore has been sanctioned under the emergency credit line guarantee scheme (ECLGS). The actual disbursal figure may be even less as all borrowers may not avail the sanctioned amount. The government wants public sector banks to be more aggressive to drive the scheme. According to bankers, no specific targets have been given to banks but all banks are asking their branch level officers to explore all eligible borrowers. "We have been asked to call up all eligible borrowers under the scheme and make them aware about the loan availability under this scheme," said an official of a public sector bank on condition of anonymity. - Moneycontrol.com
🍒 PSBs sanctions loans worth Rs 20,000 crore under emergency credit line guarantee scheme : Public sector banks (PSBs) sanctioned loans worth Rs 20,000 crore under the 100% emergency credit line guarantee scheme (ECLGS), as per a department of financial services update via Twitter. Finance minister Nirmala Sitharaman held a credit flow review meeting with the heads of PSBs on Tuesday.The public lenders sanctioned Rs 1,109 crore worth of loans as of June 8 to 17 micro, small and medium enterprises (MSMEs) hubs in 12 states under the ECLGS, according to a tweet by the minister's office. Of this amount, Rs 599.12 crore has been disbursed to 17,094 accounts, the update said.The largest amount of Rs 183 crore was sanctioned to 2,430 accounts in the Surat hub, followed by Rs 165 crore sanctioned to 2,126 accounts in the Coimbatore hub.In terms of disbursements, the largest amount of Rs 143 crore was disbursed to 1,758 accounts in the Coimbatore hub while Rs 97 crore went to 760 accounts in the Trippur hub.On May 13, Sitharaman had announced the Rs 3 lakh crore 100% government backed ECLGS scheme for MSMEs as part of the Atmanirbhar Bharat package. Later on Monday, the minister clarified that the scheme covered all companies and not only MSMEs. PSBs had sanctioned loans worth Rs 17,705.64 crore at concessional rates of 9.25% interest from June 1, she said. - economic times
🍒 SBI exposure to coronavirus-hit sectors at Rs 1 lakh crore : The country's largest bank, the State Bank of India (SBI), has segregated the direct COVID-19-hit stress in its loan portfolio at Rs 93,483 crore. The Mumbai-headquartered state-owned bank, quite transparently, listed out sectors where coronavirus crisis has directly impacted businesses. These include aviation, commercial real estate, tourism, hotel and resorts, private sector NBFCs and the power sector. The biggest head is the NBFCs with more than 30 per cent share at Rs 29,530 crore. These are private sector NBFCs. The bank's total exposure to NBFCs and financial institutions is quite large at Rs 1.78 lakh crore, but the bulk of loans has been extended to Central and State government-backed NBFCs and NBFCs backed by large private sector institutions such as Bajaj Finance or HDFC. -Business Today
🍒 SBI seeks clarity on CFO qualifications : State Bank of India (SBI) has sought clarity from the banking regulator on the mandatory qualification for its chief financial officer — whether the official must be a chartered accountant — before appointing a full-time executive to that job, sources aware of the lender’s query to the central bank told ET. Currently, a deputy managing director holds interim charge of the position and the lender wants clarity before making fresh appointments.SBI’s earlier full-time CFO, Prashant Kumar, was sent to Yes Bank as its chief executive officer in March this year after which the bank had given additional charge of the department to its deputy managing director, Chalasani Venkat Nageswar, who is responsible for the bank’s international portfolio.“Almost all public sector banks do not have a CFO who is a qualified chartered accountant; so SBI is seeking clarity on this rule before making full-time appointments,” said a person in the know. “The bank has also sought to know if any lateral hiring would be required to fill this role.”SBI did not respond to ET’s mailed queries. - economic times
🍒 ‘Lenders can sell stressed assets only on cash basis’ : Lenders can sell stressed assets only on a cash basis, the Reserve Bank of India (RBI) said in its draft comprehensive framework for sale of loan exposures released on Monday. “The entire sale consideration should be received upfront and the asset can be taken out of the books of the transferor only on receipt of the entire sale consideration,” the banking regulator specified contours for selling bad loans to entities or asset reconstruction companies (ARCs). The RBI also said lenders shall hold the purchased stressed assets on their books for at least 12 months before selling it to other party. The regulator has mandated assigning 100% risk weight for non-performing asset (NPA) acquisition, if the acquirer is classifying it as ‘standard asset’ in its books. “If the asset is classified as ‘non-performing asset’, risk weights as applicable to NPAs shall be applicable,” the RBI further said. The purchasing lenders shall adjust recoveries in respect of an NPA purchased from other lenders against its acquisition cost only. Thereafter, recoveries in excess of the acquisition cost can be recognised as profit as per draft guidelines by the regulator. - Financial Express
🍒 Paytm Payments Bank posts net profit of ₹30 crore in FY20 : Paytm Payments Bank remained profitable for the second consecutive year in FY20 with a net profit of ₹29.8 crore. Its net profit amounted to ₹19.2 crore in FY19. “This has been largely led by its higher customer acquisition in smaller cities and towns to drive financial inclusion in the country. The annual revenue has also shown a sharp increase in the fiscal year and has crossed ₹2,100 crore,” it said in a statement on Tuesday. The bank has facilitated more than 485 crore transactions worth ₹4.6 lakh crore. Domestic money transfers accounted for nearly ₹29,000 crore. The CASA base has increased to over 5.8 crore, and has helped it to double the deposits in savings accounts to over ₹1,000 crore. Satish Kumar Gupta, Managing Director and CEO, Paytm Payments Bank, said: “We have continued to lead digital banking in India and have constantly improved upon our own benchmark for performance. In FY20, we have registered growth across all parameters, including the number of account holders, saving account deposits, fixed deposits and transactions.” - Business Line
🍒 PhonePe launches domestic trip insurance with ICICI Lombard : With the lockdown ending and domestic travel gradually starting across the country, PhonePe, a digital payments platform, today announced the launch of a comprehensive, industry-first domestic multi-trip insurance cover in a strategic partnership with ICICI Lombard, the non-life insurance company. This service is exclusively available for PhonePe users. The platform provides affordable annual insurance cover for unlimited trips, PhonePe said in its official release. PhonePe said unlike other traditional travel insurance products, this solution does away with the need to insure every trip separately and will benefit both business and leisure travellers. The company said it aims to provide customers a stress-free travel experience by covering risks associated with all modes of travel within the country (road, rail and air within the country) right from the time a customer leaves home, till the time he/she returns. - Business Line
🍒 Equitas Small Finance Bank hikes interest on saving account deposits : In order to attract deposits, small finance lender Equitas Small Finance Bank on Tuesday said it has increased the rate of interest on savings account having deposits between Rs 1 lakh to Rs 5 crore to 7 per cent per annum from 5.5 per cent. The new rates are applicable from Wednesday, the bank said in a release. "We are offering customers 7 per cent interest rate per annum having savings balance between Rs 1 lakh and Rs 5 crore. We believe that this will enable existing customers and also new to bank savings account holders an opportunity to save more with better returns,” the bank's president and country head (branch banking, liabilities, product and wealth), Murali Vaidyanathan, said. The lender has two slabs in the savings account deposits - up to Rs 1 lakh and above. The bank has left rates on savings account deposits up to Rs 1 lakh at 3.5 per cent. It has close to 6 lakh savings accounts. - economic times
🍒 IRDAI withdraws long-term package third-party motor insurance : Long-term package motor insurance products that offer third party (TP) and own damage (OD) for two-wheelers (five year policies) and four wheelers (three years) will be withdrawn from August 1, 2020. The insurance regulator (IRDAI) said in an order that the distribution of package policies has its challenges due to affordability factors for a large section of vehicle owners.This means that customers won't be given an option to buy OD covers for a long-term basis. This is an extension of an earlier order by Insurance Regulatory and Development Authority of India (IRDAI) order where it had asked insurers to give customers an option to choose between one year and multi-year OD plans. The OD covers offers insurance against physical damages to the vehicle due to theft, accidents and natural catastrophe. - Moneycontrol.com
🍒 Empays Payment Systems partners Mastercard to enable contact-free ATM cash withdrawals : : Empays Payment Systems India Pvt Ltd, which built and runs the IMT Payment System, on Tuesday announced a partnership with Mastercard to enable contact-free ATM cash withdrawals in India. With this partnership, Empays will upgrade the basic technology behind the IMT Payment System to incorporate the requirements of Mastercard Cardless ATM enabling a true EMV-capable cash withdrawal transaction. As per a release by Mastercard, the IMT Payment System powers the largest ATM network for cardless cash withdrawals in the world and is available across 40,000 ATMs in India.It uses SMS technology to enable cash withdrawals from participating ATMs without any physical contact with a card.Empays is authorised by the Reserve Bank of India (RBI) as a national payment system. "'Cardless ATM powered by Mastercard' will help users to digitally locate the nearest enabled ATM and initiate a withdrawal by simply scanning a QR code on the mobile phone, using their banking app," the release said. - economic times
🍒 Securitisation market expected to remain tepid in first half of FY21: ICRA: The securitisation market is expected to remain tepid in the first half (H1) of FY21 due to the uncertainties emerging from the Covid-19 pandemic and economic slowdown, according to credit rating agency ICRA. It added that moratorium extension announced by the Reserve Bank of India (RBI) will hurt the volumes in H1. The agency said there will investor wariness towards securitisation in the near term due to uncertainty on borrowers’ payment behaviour post moratorium, and concerns emerging on servicing ability of originators, given the difficulties observed in changing the servicer. In this regard, it also referred to the tendency to hold on to higher cash balances by investors (especially Non-Banking Finance Companies, non-Priority Sector Lending investors) and illiquidity of Pass Through Certificates (PTCs). - Business line
🍒 Housing finance companies have enough liquidity to meet two months of repayments : Housing finance companies (HFCs) have sufficient liquidity, which could cover about two months of debt repayments, excluding securitisation, said rating agency, Icra. Access to funding lines could enhance the cover up to three months, it added. Icra said based on the consolidation of its rated HFCs accounting for around 90% of the sectoral assets under management (AUM), most companies were comfortably placed in terms of liquidity. “The findings have indicated that HFCs weighted average on balance sheet cash and liquid investments stood at about 7% of the AUM as on 31 March, 2020, and at 12%, including the sanctioned funding lines," the rating agency said. - Live Mint
🍒 Housing finance firms comfortably placed to meet debt obligations: Report : Having raised nearly Rs 34,000 crore from the debt market and the National Housing Bank in the past two months, housing finance companies (HFCs) are comfortably placed to meet their debt obligations despite lower collections, according to a report. The total maturing debt of HFCs for 2020-21 is estimated to be Rs 2.9-3.2 trillion, of which Rs 1.4 trillion is accounted for by debt markets, rating agency ICRA said in the report. "As HFCs raised approximately Rs 34,000 crore through debt market route and from NHB during April and May 2020, it is likely that most of the HFCs will maintain an adequate liquidity profile for meeting their debt obligations even with lower collection levels (50-80 per cent ) in the portfolio," ICRA Vice-President (financial sector ratings) Supreeta Nijjar said in the report. - Business Standard
🍒 Negative perception, liquidity squeeze have pushed NBFCs to the brink: IIFL Finance chief : Entrepreneurial non-banking finance companies (NBFCs), without the backing of large industrial houses, have borne the brunt of negative perception and outlook, according to IIFL Finance Chairman Nirmal Jain. In a message to shareholders in the annual report, Jain observed that while it started with the IL&FS collapse, it just kept getting aggravated with a few more large-scale defaults in the NBFC/HFC (housing finance company) sectors. “To add to the woes, the Covid crisis has further heightened the risk aversion to the sector. In fact, many industry observers and commentators describe this as the worst crisis ever for the sector. But as Benjamin Franklin once said, ‘Out of adversity comes opportunity,’” he said. - Business Line
🍒 Life insurers record negative business growth yet again in May : Business growth of life insurers was yet again impacted in the month of May due to the economic fallout induced by the coronavirus pandemic as the insurance industry saw a 25.3 percent year on year contraction in new business premium whereas the fall in new business in the two months of FY21 was at 30.7% against the same period last year. However, leading companies, most notably Life Insurance Corp of India (LIC) saw some aspects of their business bounce back in the month as these companies shored up their digital distribution and outreach channels at a time when traditional form of operations faced challenges due to a nationwide lockdown. While state-owned Life Insurance Corp of India’s new business premium (NBP) saw a 24% drop to Rs.10211 in May as against corresponding period last year, this was a nearly a 185% revival as against April, latest monthly data on business performance for life insurance by IRDAI showed. - Economic Times
🍒 HDFC ERGO General Insurance, Apollo Clinic in pact : HDFC ERGO General Insurance Company and Apollo Clinic of the Apollo Group have joined hands for a corporate agency tie-up to offer insurance products to customers. The tie-up will allow Apollo Clinic to offer financial security with HDFC ERGO’s comprehensive health plans. Customers of Apollo Clinic will also have access to wellness benefits under HDFC ERGO’s health mobile application. “We see immense potential in this association and firmly believe that customers of Apollo Clinic will benefit from our bouquet of Insurance products,” Ankur Bahorey, President, Retail Business, HDFC ERGO General Insurance Ltd, said in a release. - Business Line
🍒 Kapur family withdraws suit against Yes Bank in Bombay high court : Private sector lender Yes Bank on Tuesday said that Madhu Kapur and other family members have withdrawn their petition from the Bombay high court after having fought it since 2013. The families of the founders of Yes Bank—Ashok Kapur, who died in the November 2008 terrorist attack on Mumbai, and Rana Kapoor—were locked in a dispute over the nomination of people to the board of the bank. Kapoor’s wife Bindu and Madhu Kapur are sisters. Madhu Kapur, along with her daughter Shagun Gogia and son Gaurav Kapur, had filed a petition in the Bombay high court seeking three broad categories of reliefs. - Live Mint
🍒 IndusInd Bank shares rally 12% in 2 days on promoter stake purchase buzz : IndusInd Bank share price jumped over 5 percent intraday on June 9 after promoters said they plans to buy more of its shares in the secondary market. The stock price surged over 14 percent in the last 3 days and was quoting at Rs 475.85, up Rs 24.20, or 5.36 percent at 12:02 hours. It has touched an intraday high of Rs 478.10 and was the top index gainer. The stock was one of the most active scrips on NSE in terms of value with 2,16,65,462 shares being traded.
🍒 Market updates: Sensex closes 413 points lower at 33,956 : Benchmark Sensex plunged 414 points on Tuesday, dragged by heavy losses in heavyweights HDFC Bank, RIL and ICICI Bank as investors fretted over the rising number of Covid cases in the country. After opening on a positive note, the 30-share index reversed all early gains to settle 413.89 points, or 1.20 per cent, lower at 33,956.69.In a similar movement, the NSE Nifty declined 120.80 points, or 1.19 per cent, to 10,046.65.ICICI Bank was the top laggard in the Sensex pack, falling around 3 per cent, followed by Bharti Airtel, HDFC Bank, Bajaj Finance, Kotak Bank and Axis Bank.On the other hand, IndusInd Bank, Sun Pharma, M&M and HDFC were among the gainers.
🍒 Gold rises to Rs 46,844 on a weaker rupee, silver slips : Gold prices rose by Rs 365 to Rs 46,844 per 10 gram in the Mumbai bullion market on a depreciating rupee and weaker equity markets. The yellow metal also gained ahead of two-day federal open market committee (FOMC) meeting that begins later on June 9. The rate of 10 gram 22-carat gold in Mumbai was Rs 42,909 plus 3 percent GST, while 24-carat 10 gram was Rs 46,844 plus GST. The 18-carat gold quoted at Rs 35,133 plus GST in the retail market. Silver prices fell Rs 105 to Rs 47,695 per kg from its closing on June 8.
🍒 Rupee pares initial gains, settles 6 paise down at 75.61 against US dollar : The rupee pared initial gains to close 6 paise lower at 75.61 (provisional) against the US dollar on Tuesday, tracking muted domestic equities and the strengthening American currency in the overseas market. The rupee opened at 75.53 against the US dollar, but pared the gains to settle at 75.61 against the US dollar, down 6 paise over its previous close. It had settled at 75.55 against the greenback on Monday.
🍒 Shares of Central Bank of India in Stock Market : 67% of moneycontrol users recommend buying Central Bank of India Shares. In BSE, shares closed at Rs.16.02 against Prev Close Rs.16.76. In NSE, shares closed at Rs.15.95 against Prev Close Rs.16.75..
… Have a Good day.
☕ 10.06.2020: Today's Banking / Financial News at a Glance
🍒 FM Sitharaman reviews progress of Rs 3 lakh crore credit guarantee scheme for MSMEs :Finance Minister Nirmala Sitharaman on Tuesday held a review meeting on credit guarantee scheme with heads of public sector banks, and asked them to expedite loan disbursement under the Rs 3-lakh crore ECLGS for MSME sector, hit hard by coronavirus-induced lockdown. The meeting on Emergency Credit Line Guarantee Scheme (ECLGS) was held through a video conference, and the minister appreciated the efforts of banks in execution of the scheme. "Hon'ble FM @nsitharaman Ji complimented PSBs on rapid traction for achieving sanctions of Rs 20,000 Cr under ECLGS. Also advised to maintain proactive outreach at branch level and keep Forms for ECLGS simple & formalities at minimum," Department of Financial Services said in a tweet."PSBs to continue focus on sanction & reaching out to eligible MSMEs. To also target meeting credit needs of other businesses," it said. Earlier in the day the ministry gave cluster wise data of loans sanction till June 8. As of 8 June 2020, #PSBs have sanctioned loans worth Rs 1,109.03 cr for #MSME hubs in 12 States under the 100% Emergency Credit Line Guarantee Scheme, of which Rs 599.12 cr has already been disbursed to 17,904 accounts," the minister tweeted. - Moneycontrol.com
🍒 With MSME scheme not picking up pace, government wants bankers to be more aggressive : With the Rs 3 lakh crore emergency credit guarantee loan scheme yet to take off, the government is pushing hard to make the scheme work. The Finance Ministry on June 9 did a review of the scheme’s progress so far in a meeting with senior bank officials. The MSME ministry is likely to have a webinar with state level banking committees (SLBC) officials as early as June 10. Till now, about Rs 20,000 crore has been sanctioned under the emergency credit line guarantee scheme (ECLGS). The actual disbursal figure may be even less as all borrowers may not avail the sanctioned amount. The government wants public sector banks to be more aggressive to drive the scheme. According to bankers, no specific targets have been given to banks but all banks are asking their branch level officers to explore all eligible borrowers. "We have been asked to call up all eligible borrowers under the scheme and make them aware about the loan availability under this scheme," said an official of a public sector bank on condition of anonymity. - Moneycontrol.com
🍒 PSBs sanctions loans worth Rs 20,000 crore under emergency credit line guarantee scheme : Public sector banks (PSBs) sanctioned loans worth Rs 20,000 crore under the 100% emergency credit line guarantee scheme (ECLGS), as per a department of financial services update via Twitter. Finance minister Nirmala Sitharaman held a credit flow review meeting with the heads of PSBs on Tuesday.The public lenders sanctioned Rs 1,109 crore worth of loans as of June 8 to 17 micro, small and medium enterprises (MSMEs) hubs in 12 states under the ECLGS, according to a tweet by the minister's office. Of this amount, Rs 599.12 crore has been disbursed to 17,094 accounts, the update said.The largest amount of Rs 183 crore was sanctioned to 2,430 accounts in the Surat hub, followed by Rs 165 crore sanctioned to 2,126 accounts in the Coimbatore hub.In terms of disbursements, the largest amount of Rs 143 crore was disbursed to 1,758 accounts in the Coimbatore hub while Rs 97 crore went to 760 accounts in the Trippur hub.On May 13, Sitharaman had announced the Rs 3 lakh crore 100% government backed ECLGS scheme for MSMEs as part of the Atmanirbhar Bharat package. Later on Monday, the minister clarified that the scheme covered all companies and not only MSMEs. PSBs had sanctioned loans worth Rs 17,705.64 crore at concessional rates of 9.25% interest from June 1, she said. - economic times
🍒 SBI exposure to coronavirus-hit sectors at Rs 1 lakh crore : The country's largest bank, the State Bank of India (SBI), has segregated the direct COVID-19-hit stress in its loan portfolio at Rs 93,483 crore. The Mumbai-headquartered state-owned bank, quite transparently, listed out sectors where coronavirus crisis has directly impacted businesses. These include aviation, commercial real estate, tourism, hotel and resorts, private sector NBFCs and the power sector. The biggest head is the NBFCs with more than 30 per cent share at Rs 29,530 crore. These are private sector NBFCs. The bank's total exposure to NBFCs and financial institutions is quite large at Rs 1.78 lakh crore, but the bulk of loans has been extended to Central and State government-backed NBFCs and NBFCs backed by large private sector institutions such as Bajaj Finance or HDFC. -Business Today
🍒 SBI seeks clarity on CFO qualifications : State Bank of India (SBI) has sought clarity from the banking regulator on the mandatory qualification for its chief financial officer — whether the official must be a chartered accountant — before appointing a full-time executive to that job, sources aware of the lender’s query to the central bank told ET. Currently, a deputy managing director holds interim charge of the position and the lender wants clarity before making fresh appointments.SBI’s earlier full-time CFO, Prashant Kumar, was sent to Yes Bank as its chief executive officer in March this year after which the bank had given additional charge of the department to its deputy managing director, Chalasani Venkat Nageswar, who is responsible for the bank’s international portfolio.“Almost all public sector banks do not have a CFO who is a qualified chartered accountant; so SBI is seeking clarity on this rule before making full-time appointments,” said a person in the know. “The bank has also sought to know if any lateral hiring would be required to fill this role.”SBI did not respond to ET’s mailed queries. - economic times
🍒 ‘Lenders can sell stressed assets only on cash basis’ : Lenders can sell stressed assets only on a cash basis, the Reserve Bank of India (RBI) said in its draft comprehensive framework for sale of loan exposures released on Monday. “The entire sale consideration should be received upfront and the asset can be taken out of the books of the transferor only on receipt of the entire sale consideration,” the banking regulator specified contours for selling bad loans to entities or asset reconstruction companies (ARCs). The RBI also said lenders shall hold the purchased stressed assets on their books for at least 12 months before selling it to other party. The regulator has mandated assigning 100% risk weight for non-performing asset (NPA) acquisition, if the acquirer is classifying it as ‘standard asset’ in its books. “If the asset is classified as ‘non-performing asset’, risk weights as applicable to NPAs shall be applicable,” the RBI further said. The purchasing lenders shall adjust recoveries in respect of an NPA purchased from other lenders against its acquisition cost only. Thereafter, recoveries in excess of the acquisition cost can be recognised as profit as per draft guidelines by the regulator. - Financial Express
🍒 Paytm Payments Bank posts net profit of ₹30 crore in FY20 : Paytm Payments Bank remained profitable for the second consecutive year in FY20 with a net profit of ₹29.8 crore. Its net profit amounted to ₹19.2 crore in FY19. “This has been largely led by its higher customer acquisition in smaller cities and towns to drive financial inclusion in the country. The annual revenue has also shown a sharp increase in the fiscal year and has crossed ₹2,100 crore,” it said in a statement on Tuesday. The bank has facilitated more than 485 crore transactions worth ₹4.6 lakh crore. Domestic money transfers accounted for nearly ₹29,000 crore. The CASA base has increased to over 5.8 crore, and has helped it to double the deposits in savings accounts to over ₹1,000 crore. Satish Kumar Gupta, Managing Director and CEO, Paytm Payments Bank, said: “We have continued to lead digital banking in India and have constantly improved upon our own benchmark for performance. In FY20, we have registered growth across all parameters, including the number of account holders, saving account deposits, fixed deposits and transactions.” - Business Line
🍒 PhonePe launches domestic trip insurance with ICICI Lombard : With the lockdown ending and domestic travel gradually starting across the country, PhonePe, a digital payments platform, today announced the launch of a comprehensive, industry-first domestic multi-trip insurance cover in a strategic partnership with ICICI Lombard, the non-life insurance company. This service is exclusively available for PhonePe users. The platform provides affordable annual insurance cover for unlimited trips, PhonePe said in its official release. PhonePe said unlike other traditional travel insurance products, this solution does away with the need to insure every trip separately and will benefit both business and leisure travellers. The company said it aims to provide customers a stress-free travel experience by covering risks associated with all modes of travel within the country (road, rail and air within the country) right from the time a customer leaves home, till the time he/she returns. - Business Line
🍒 Equitas Small Finance Bank hikes interest on saving account deposits : In order to attract deposits, small finance lender Equitas Small Finance Bank on Tuesday said it has increased the rate of interest on savings account having deposits between Rs 1 lakh to Rs 5 crore to 7 per cent per annum from 5.5 per cent. The new rates are applicable from Wednesday, the bank said in a release. "We are offering customers 7 per cent interest rate per annum having savings balance between Rs 1 lakh and Rs 5 crore. We believe that this will enable existing customers and also new to bank savings account holders an opportunity to save more with better returns,” the bank's president and country head (branch banking, liabilities, product and wealth), Murali Vaidyanathan, said. The lender has two slabs in the savings account deposits - up to Rs 1 lakh and above. The bank has left rates on savings account deposits up to Rs 1 lakh at 3.5 per cent. It has close to 6 lakh savings accounts. - economic times
🍒 IRDAI withdraws long-term package third-party motor insurance : Long-term package motor insurance products that offer third party (TP) and own damage (OD) for two-wheelers (five year policies) and four wheelers (three years) will be withdrawn from August 1, 2020. The insurance regulator (IRDAI) said in an order that the distribution of package policies has its challenges due to affordability factors for a large section of vehicle owners.This means that customers won't be given an option to buy OD covers for a long-term basis. This is an extension of an earlier order by Insurance Regulatory and Development Authority of India (IRDAI) order where it had asked insurers to give customers an option to choose between one year and multi-year OD plans. The OD covers offers insurance against physical damages to the vehicle due to theft, accidents and natural catastrophe. - Moneycontrol.com
🍒 Empays Payment Systems partners Mastercard to enable contact-free ATM cash withdrawals : : Empays Payment Systems India Pvt Ltd, which built and runs the IMT Payment System, on Tuesday announced a partnership with Mastercard to enable contact-free ATM cash withdrawals in India. With this partnership, Empays will upgrade the basic technology behind the IMT Payment System to incorporate the requirements of Mastercard Cardless ATM enabling a true EMV-capable cash withdrawal transaction. As per a release by Mastercard, the IMT Payment System powers the largest ATM network for cardless cash withdrawals in the world and is available across 40,000 ATMs in India.It uses SMS technology to enable cash withdrawals from participating ATMs without any physical contact with a card.Empays is authorised by the Reserve Bank of India (RBI) as a national payment system. "'Cardless ATM powered by Mastercard' will help users to digitally locate the nearest enabled ATM and initiate a withdrawal by simply scanning a QR code on the mobile phone, using their banking app," the release said. - economic times
🍒 Securitisation market expected to remain tepid in first half of FY21: ICRA: The securitisation market is expected to remain tepid in the first half (H1) of FY21 due to the uncertainties emerging from the Covid-19 pandemic and economic slowdown, according to credit rating agency ICRA. It added that moratorium extension announced by the Reserve Bank of India (RBI) will hurt the volumes in H1. The agency said there will investor wariness towards securitisation in the near term due to uncertainty on borrowers’ payment behaviour post moratorium, and concerns emerging on servicing ability of originators, given the difficulties observed in changing the servicer. In this regard, it also referred to the tendency to hold on to higher cash balances by investors (especially Non-Banking Finance Companies, non-Priority Sector Lending investors) and illiquidity of Pass Through Certificates (PTCs). - Business line
🍒 Housing finance companies have enough liquidity to meet two months of repayments : Housing finance companies (HFCs) have sufficient liquidity, which could cover about two months of debt repayments, excluding securitisation, said rating agency, Icra. Access to funding lines could enhance the cover up to three months, it added. Icra said based on the consolidation of its rated HFCs accounting for around 90% of the sectoral assets under management (AUM), most companies were comfortably placed in terms of liquidity. “The findings have indicated that HFCs weighted average on balance sheet cash and liquid investments stood at about 7% of the AUM as on 31 March, 2020, and at 12%, including the sanctioned funding lines," the rating agency said. - Live Mint
🍒 Housing finance firms comfortably placed to meet debt obligations: Report : Having raised nearly Rs 34,000 crore from the debt market and the National Housing Bank in the past two months, housing finance companies (HFCs) are comfortably placed to meet their debt obligations despite lower collections, according to a report. The total maturing debt of HFCs for 2020-21 is estimated to be Rs 2.9-3.2 trillion, of which Rs 1.4 trillion is accounted for by debt markets, rating agency ICRA said in the report. "As HFCs raised approximately Rs 34,000 crore through debt market route and from NHB during April and May 2020, it is likely that most of the HFCs will maintain an adequate liquidity profile for meeting their debt obligations even with lower collection levels (50-80 per cent ) in the portfolio," ICRA Vice-President (financial sector ratings) Supreeta Nijjar said in the report. - Business Standard
🍒 Negative perception, liquidity squeeze have pushed NBFCs to the brink: IIFL Finance chief : Entrepreneurial non-banking finance companies (NBFCs), without the backing of large industrial houses, have borne the brunt of negative perception and outlook, according to IIFL Finance Chairman Nirmal Jain. In a message to shareholders in the annual report, Jain observed that while it started with the IL&FS collapse, it just kept getting aggravated with a few more large-scale defaults in the NBFC/HFC (housing finance company) sectors. “To add to the woes, the Covid crisis has further heightened the risk aversion to the sector. In fact, many industry observers and commentators describe this as the worst crisis ever for the sector. But as Benjamin Franklin once said, ‘Out of adversity comes opportunity,’” he said. - Business Line
🍒 Life insurers record negative business growth yet again in May : Business growth of life insurers was yet again impacted in the month of May due to the economic fallout induced by the coronavirus pandemic as the insurance industry saw a 25.3 percent year on year contraction in new business premium whereas the fall in new business in the two months of FY21 was at 30.7% against the same period last year. However, leading companies, most notably Life Insurance Corp of India (LIC) saw some aspects of their business bounce back in the month as these companies shored up their digital distribution and outreach channels at a time when traditional form of operations faced challenges due to a nationwide lockdown. While state-owned Life Insurance Corp of India’s new business premium (NBP) saw a 24% drop to Rs.10211 in May as against corresponding period last year, this was a nearly a 185% revival as against April, latest monthly data on business performance for life insurance by IRDAI showed. - Economic Times
🍒 HDFC ERGO General Insurance, Apollo Clinic in pact : HDFC ERGO General Insurance Company and Apollo Clinic of the Apollo Group have joined hands for a corporate agency tie-up to offer insurance products to customers. The tie-up will allow Apollo Clinic to offer financial security with HDFC ERGO’s comprehensive health plans. Customers of Apollo Clinic will also have access to wellness benefits under HDFC ERGO’s health mobile application. “We see immense potential in this association and firmly believe that customers of Apollo Clinic will benefit from our bouquet of Insurance products,” Ankur Bahorey, President, Retail Business, HDFC ERGO General Insurance Ltd, said in a release. - Business Line
🍒 Kapur family withdraws suit against Yes Bank in Bombay high court : Private sector lender Yes Bank on Tuesday said that Madhu Kapur and other family members have withdrawn their petition from the Bombay high court after having fought it since 2013. The families of the founders of Yes Bank—Ashok Kapur, who died in the November 2008 terrorist attack on Mumbai, and Rana Kapoor—were locked in a dispute over the nomination of people to the board of the bank. Kapoor’s wife Bindu and Madhu Kapur are sisters. Madhu Kapur, along with her daughter Shagun Gogia and son Gaurav Kapur, had filed a petition in the Bombay high court seeking three broad categories of reliefs. - Live Mint
🍒 IndusInd Bank shares rally 12% in 2 days on promoter stake purchase buzz : IndusInd Bank share price jumped over 5 percent intraday on June 9 after promoters said they plans to buy more of its shares in the secondary market. The stock price surged over 14 percent in the last 3 days and was quoting at Rs 475.85, up Rs 24.20, or 5.36 percent at 12:02 hours. It has touched an intraday high of Rs 478.10 and was the top index gainer. The stock was one of the most active scrips on NSE in terms of value with 2,16,65,462 shares being traded.
🍒 Market updates: Sensex closes 413 points lower at 33,956 : Benchmark Sensex plunged 414 points on Tuesday, dragged by heavy losses in heavyweights HDFC Bank, RIL and ICICI Bank as investors fretted over the rising number of Covid cases in the country. After opening on a positive note, the 30-share index reversed all early gains to settle 413.89 points, or 1.20 per cent, lower at 33,956.69.In a similar movement, the NSE Nifty declined 120.80 points, or 1.19 per cent, to 10,046.65.ICICI Bank was the top laggard in the Sensex pack, falling around 3 per cent, followed by Bharti Airtel, HDFC Bank, Bajaj Finance, Kotak Bank and Axis Bank.On the other hand, IndusInd Bank, Sun Pharma, M&M and HDFC were among the gainers.
🍒 Gold rises to Rs 46,844 on a weaker rupee, silver slips : Gold prices rose by Rs 365 to Rs 46,844 per 10 gram in the Mumbai bullion market on a depreciating rupee and weaker equity markets. The yellow metal also gained ahead of two-day federal open market committee (FOMC) meeting that begins later on June 9. The rate of 10 gram 22-carat gold in Mumbai was Rs 42,909 plus 3 percent GST, while 24-carat 10 gram was Rs 46,844 plus GST. The 18-carat gold quoted at Rs 35,133 plus GST in the retail market. Silver prices fell Rs 105 to Rs 47,695 per kg from its closing on June 8.
🍒 Rupee pares initial gains, settles 6 paise down at 75.61 against US dollar : The rupee pared initial gains to close 6 paise lower at 75.61 (provisional) against the US dollar on Tuesday, tracking muted domestic equities and the strengthening American currency in the overseas market. The rupee opened at 75.53 against the US dollar, but pared the gains to settle at 75.61 against the US dollar, down 6 paise over its previous close. It had settled at 75.55 against the greenback on Monday.
🍒 Shares of Central Bank of India in Stock Market : 67% of moneycontrol users recommend buying Central Bank of India Shares. In BSE, shares closed at Rs.16.02 against Prev Close Rs.16.76. In NSE, shares closed at Rs.15.95 against Prev Close Rs.16.75..
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