Good Morning
☕ 11.07.2020: Today's Banking / Financial News at a Glance
🍒 Canara Bank, BoM and SBI announce fund raising plans : Canara Bank and Bank of Maharashtra (BoM) on Friday announced fund raising plans amounting to ₹8,000 crore and ₹3,000 crore, respectively, via equity and Basel III compliant bonds. Canara Bank said its board approved raising of equity share capital amounting up to ₹5,000 crore (including premium) in FY21.The equity capital raise will be by way of Qualified Institutional Placements (QIP), Rights Issue/Employee Stock Purchase Scheme (ESPS)/Private Placement/ Preferential Allotment/any other approved means during the Financial Year (FY) 2020-21 subject to market conditions and necessary approvals. Further, the Bengaluru-headquartered public sector bank’s board also green-lighted the proposal to raise capital through AT I Basel III compliant Bonds to the extent of ₹3,000 crore during the FY2020-21 subject to market conditions and necessary approvals. Bank of Manarashtra’s board considered and approved raising of capital aggregating up to ₹2,000 crore (including share premium). Meanwhile, State Bank of India informed the exchanges that a meeting of its Central Board is scheduled to be held on July 15 to consider and approve raising of Additional Tier 1 (AT 1) and Tier 2 Capital by way of issuance of Basel III compliant debt instrument in USD and/or INR during FY21. - Business Line
🍒 Union Bank of India, BoB trim MCLR across tenors : Union Bank of India (UBI) and Bank of Baroda (BoB) have cut their marginal cost of funds based lending rate (MCLR) by 20 basis points (bps) and 5 bps, respectively, across all tenors. The new MCLR will be effective from July 11 in the case of UBI and July 12 in the case of BoB. One basis point is equal to one-hundredth of a percentage point.Following the cut, UBI’s one-year MCLR will be at 7.40 per cent, down from 7.60 per cent.“This is the thirteenth consecutive rate cut announced by the Bank since July 2019,” UBI said in a statement. Following the cut, BoB’s one-year MCLR will be at 7.60 per cent, down from 7.65 per cent.- Business Line
🍒 PNB revises provision amount for DHFL Borrowal Fraud : A day after reporting a Borrowal Fraud of ₹3,688.58 crore in the NPA Account of Dewan Housing Finance Ltd (DHFL), Punjab National Bank (PNB) has now revised the provision it has made on this front. “In this regard, we wish to submit that the provision figure be read as ₹1,695.73 crore instead of ₹1,246.58 crore,” PNB said in a regulatory filing with stock exchanges on Friday.It may be recalled that PNB had on Thursday said that it had already made provisions amounting to ₹1,246.58 crore as per prudential norms. - Business Line
🍒 Banks move branches, rethink strategy to cut costs amid Covid spread : In an increasingly-digitised world, banks have for years now been reorienting their outreach strategies away from purely branch-driven models towards digital channels. This process may now be getting accelerated as Covid pushes them to cut back on branch rentals. The average banking customer, too, is now averse to making any physical contact with her bank. Small wonder then that banks have begun to reduce their branch footprint and seem to have no qualms moving to smaller and less-prominent locations. They have also started to rethink parameters which determine location of a branch. In the last few weeks, large banks such as Bank of Baroda, ICICI Bank and Bank of India have either moved to or started looking for new locations for some of their existing branches in parts of Mumbai, its adjoining regions and Kolkata. There is a clear drive to lower rental costs through such exercises. - financial express
🍒 Blanket moratorium extension till December not required: SBI Chairman Rajnish Kumar : State Bank of India chairman Rajnish Kumar on Friday said that across the board relief on payment of loan dues is not needed beyond August and he expects the Reserve Bank of India to take a more sectoral approach in the coming months. “The RBI has data from the entire financial system and they will take a call basis that, but if you ask me across the board moratorium is not required anymore,” Kumar said while speaking at a two-day virtual conclave organised by the State Bank of India. “Certain sectors require relief and basis the data that the RBI has access to, I expect a calibrated approach from the regulator.“SBI had recorded a moratorium book of roughly 20% at the end of May which is set to fall further in the second leg of moratorium.“If I go by my book and the analysis of that book, the people who have availed moratorium that number is not very significant,” Kumar added. “It is premature to predict that there will be extension of moratorium till December.”Some media reports had suggested that RBI could look at extending the moratorium till December. Kumar added that six months moratorium was a mini restructuring and relief for restructuring has to be given to company making losses. - economic times
🍒Top 5 private banks stare at NPAs doubling to 5% in FY21 : op five private sector banks may see their slippages double to 5 per cent this fiscal due to the poor loan offtake and the moratorium-driven contraction in net interest margins, warns a report. These five banks -- HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank -- collectively control a quarter of the system and three-fourths of the private banking space, according to a report by India Ratings on Friday. "We forecast FY21 slippages to nearly double to around 5 per cent for these banks from 2.3 per cent in FY19 and 2.7 per cent in FY20, even though net slippages would be lower if refinancing remains a challenge, resulting in a 4 per cent contraction in their net interest margin," says the report. As loan demand remains tepid, banks are parking their excess liquidity in low yielding alternatives such as government bonds and top-rated corporate securities due to their higher credit risk perception and widening duration spreads, even as deposit inflows have been robust.- economic times
🍒 Punjab & Sind Bank declares NPA account Maha Associated Hotels as 'fraud' : Public sector Punjab & Sind Bank on Friday said it has declared NPA account Maha Associated Hotels, with outstanding dues of Rs 71.18 crore, as fraud and reported the matter to the RBI. Further, the lender said it is in the process of filing complaint/FIR with Central Bureau of Investigation (CBI). Pursuant to the applicable provisions of Sebi regulations and the materiality policy of the bank, "it is informed that an NPA account Maha Associated Hotels Pvt Ltd with outstanding dues of Rs 71.18 crore having provisioning of Rs 44.40 crore has been declared as fraud and reported to RBI as per regulatory requirement", the bank said in an exchange filing. Earlier in April this year, the lender had declared the non-performing account of Golden Jubilee Hotels, involving an outstanding amount of over Rs 86 crore, as fraud. Stock of Punjab & Sind Bank was trading at Rs 13.95 apiece on the BSE, down 0.71 per cent from the previous close.- economic times
🍒 Lakshmi Vilas Bank swings into black, posts Rs 93 crore profit in Q4FY20 : Lakshmi Vilas Bank (LVB) on Friday registered a net profit of Rs 92.86 crore for March quarter 2019-20, after having posted losses in the past 10 quarters on rising bad loans. The bank had a net loss of Rs 264.43 crore in January-March 2018-19. For December quarter of the last financial year, it posted a net loss of Rs 334.48 crore, LVB said in a regulatory filing. The private sector lender, struggling to shore up capital to improve its financial position, also saw a decline in income during March quarter at Rs 629.76 crore compared with Rs 739.73 crore in the year-ago same period as it has been witnessing deposit erosion since last September. - Moneycontrol.com
🍒 Karnataka Bank reports its highest-ever quarterly net profit of Rs 196 crore in for June quarter : Private sector lender Karnataka Bank on Friday said it has clocked its highest-ever quarterly net profit of Rs 196.38 crore in the first quarter ended June, on the back of various cost-cutting measures and healthy core income growth. The bank had posted a net profit of Rs 175.42 crore during the corresponding period of the previous financial year, which also was its previous high in quarterly profit, it said in a release. “Karnataka Bank posted an all-time high quarterly net profit of Rs 196.38 crore, during Q1 of 2020-21 as against the previous high of Rs 175.42 crore recorded during Q1 of 2019-20. Thus, the net profit grew by 11.95 per cent year-on-year,” the bank said. Its total income during the April-June 2020 quarter rose to Rs 2,134.63 crore, from Rs 1,794.33 crore a year ago, it said. - Financial Express
🍒 Axis Bank’s SME business records 6% de-growth in FY20 : Private lender Axis Bank’s small and medium enterprises (SME) business saw a de-growth of 6 percent for fiscal 2020 as the bank focused on maintaining asset quality in the segment, the bank said in its latest annual report. The Bank’s SME advances stood at Rs 61,921 crores as on March 31, 2020, and constituted 11 percent of its total advances. “During fiscal 2020, given the uncertainties on the macro-economic front and the underlying weakness in the economy, the Bank had maintained a cautious stance on SME space,” the bank said in its annual report. - Moneycontrol.com
🍒 As public sector banks slash home loan rates, borrowers with housing finance companies are keen to shift their accounts : Home loan borrowers with housing finance companies (HFCs) and non-banking lenders are a worried lot. With most public sector banks (PSBs) and a few private sector players reducing home loan interest rate to a 15-year low, their attempt to switch their loans to institutions offering lower interest rates is making little headway. While home loan transfer from one institution to another to take advantage of lower interest is nothing new, the clamour for a shift is getting louder in recent days as many borrowers are undergoing liquidity stress due to the Covid-19 pandemic. With home loan EMIs accounting for a substantial portion of monthly expenditure, any reduction in outgo is a welcome relief to the borrowers. - Business Line
🍒 YES Bank sets floor price of ₹12 per share for FPO : YES Bank has set a floor price of ₹12 per share for its planned follow-on public offer (FPO) with a cap price of ₹13 per share. The decision was taken at the meeting of the Capital Raising Committee (CRC) of its board of directors on Friday.This will be a significant discount from Thursday’s closing price of ₹26.65 apiece on the BSE. The bank’s scrip was down 5.44 per cent in intraday trade on the BSE.In a regulatory filing, YES Bank said a discount of ₹1 per equity share will be offered to eligible employees bidding in the Employee Reservation Portion.The CRC also approved the proposal for a minimum bid lot of 1,000 equity shares and in the multiples of 1,000 equity shares thereafter. “A meeting of the CRC is scheduled to be held on July 14, 2020 for the purposes of allocation of equity shares to the successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price,” it said. - Business Line
🍒 Banks’ Q1 results: Muted growth expected; focus on moratorium and repayment trends : Banks are likely to have registered muted growth in the first quarter of the fiscal, and asset quality would be a key focus area. While they are expected to make further provisions for Covid-19-led economic uncertainties, the exact stress on their balance sheets would be understood only when the moratorium ends in August. Private sector lenders led by Bandhan Bank and Federal Bank are set to start declaring their results for the April to June 2020 quarter from next week. South Indian Bank reported an 11 per cent growth in net profit for the first quarter with gross NPAs contained at 4.93 per cent. This was also the quarter when the national lockdown impacted the economy and led to a slew of measures by the government and the Reserve Bank of India to increase liquidity and prevent defaults by borrowers. - Business Line
🍒 Global banks may see credit losses of $2.1 trillion, warns S&P : Global banks could see credit losses of about $2.1 trillion for 2020 and 2021 spurred by the Covid-19 pandemic, with $1.3 trillion for this year, more than double the 2019 level, warned S&P Global Ratings. While around 60 per cent of the credit losses will arise in Asia-Pacific, the highest relative increases – more than double on average compared with 2019 – will occur in North America and Western Europe, it said. In a report, The $2 Trillion Question: What’s on the Horizon for Bank Credit Losses, S&P observed that the pandemic and responses to it will weigh heavily on bank asset quality for years to come. - Business Line
🍒 Kotak Mahindra Bank to use new lending filters in post-Covid world: Noting that the financial sector will require recapitalisation in the current situation, Uday Kotak, veteran banker and Managing Director of Kotak Mahindra Bank, said the capital raised by the private sector lender will help it meet with any contingencies or financing business opportunities. “The banking sector’s loan book is about ₹100-lakh crore, and the total capital of all banks in India is about ₹11-lakh crore to ₹12-lakh crore. So, if four per cent to five per cent of loans turn bad due to Covid, the capital position of the banking sector will get impacted by about 40 per cent,” said Kotak in the company’s latest Annual Report, adding that while there will be some mark-to-market gains as bond yields have dropped, the financial sector will need to be recapitalised.The bank raised ₹7,400 crore through Qualified Institutional Placement (QIP) in May. "This additional capital will support the bank in dealing with contingencies or financing business opportunities (organic and or inorganic),” he said. . - Business Line
🍒 Son of ex-bank staffers among three held for running fake SBI branch : Tamil Nadu police today arrested three people for running a duplicate branch of State Bank of India (SBI). Among the three people, one was the son of former bank employees. Ambethkar, an Inspector of Police at Panruti, has confirmed the development and said the police have arrested three people including the mastermind Kamal Babu, an unemployed youth whose parents were former bank employees.His father died 10 years ago, while his mother retired from a bank two years ago.The other two people arrested include a person who runs the printing press from where all the receipts, challans and other documents were printed. The other was into printing rubber stamps. The three-month-old branch came under the lens after an SBI customer noticed it in Panruti and took the matter up with his Branch manager. Soon after, the matter was escalated to Zonal office, which in turn informed the Branch Manager that only only two branches of SBI are running in Panruti, and no third branch had been opened. Business Line
🍒 SBI's North East Head Office sealed after spike in coronavirus cases among staff : The State Bank of India's North East Head Office here was sealed indefinitely on Thursday after five more employees tested positive for novel coronavirus in the last two days, officials said. With these new cases, the total number of COVID-19 positive people in the country's largest public sector lender’s regional headquarters here has gone up to 27, official sources told PTI.Kamrup Metropolitan Deputy Commissioner Biswajit Pegu declared the complex as a "containment zone" and ordered it to be sealed with immediate effect "until further order" to prevent further spread of infection in the area. "In view of the detection of more positive patients of COVID-19 in the SBI North East Head Office, which is located just opposite of the Assam Secretariat, the stringent step has been taken," the order said. - Live mint
🍒 Gold scales new peak of Rs 49,320 per 10 gram, silver slips : Gold prices gained Rs 81 to Rs 49,320 per 10 gram, a record high in the Mumbai bullion market on rupee depreciation versus the dollar. The yellow metal prices rose on worries of rising coronavirus cases in the US and other parts of the world. The rate of a 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,990, Rs 45,177 and Rs 49,320 plus 3 percent GST.Silver prices declined Rs 245 to Rs 50,975 per kg from its closing on July 9.
🍒 Punjab National Bank shares tank nearly 7% : Shares of Punjab National Bank on Friday tumbled nearly 7 percent after the company said it has reported a fraud of Rs 3,688.58 crore in the non-performing asset account of Dewan Housing Finance (DHFL) to the RBI. The stock plunged 6.73 percent to Rs 34.60 on the BSE. On the NSE, it tanked 6.73 percent to Rs 34.60. "A fraud of Rs 3,688.58 crore is being reported by bank to the Reserve Bank of India (RBI) in the accounts of the company (DHFL)," PNB said in a stock exchange filing. - Moneycontrol.com
🍒 Rupee skids 21 paise to end at 75.20 against US dollar : The Indian rupee weakened by 21 paise to close at 75.20 against the US dollar on Friday, tracking lower equities as investors seemed moving away from riskier assets amid worries over mounting COVID-19 cases. Further, the stronger US dollar against key rival currencies also put pressure on the domestic unit.At the interbank foreign exchange market, the rupee opened weaker at 75.16 a dollar against the previous day's close of 74.99. During the session, it swung between a high of 75.12 and low of 75.33 before settling at 75.20, showing a loss of 21 paise.
🍒 Sensex ends 143 points lower amid concerns over economy : After opening weak at 36,555.13, the BSE benchmark Sensex moved up to an intraday high of 36,748.89, before settling lower by 143.36 points, or 0.39%, at 36,594.33. The market breadth was negative on the BSE today. Out the 2,827 share traded, the advancing scrips were lesser at 1,003, and the number of decliners was at 1,663. Scrips that remained unchanged were at 167. On the NSE, the Nifty too was down 45.40 points, or 0.42 per cent, to 10,768.05. The market breadth was negative here too. On the NSE, the decliners were higher at 36, while advancers were at 14.Private sector bank Axis Bank was the top loser in the Sensex pack today, falling over 3 per cent, followed by IndusInd Bank, HDFC, Titan, ICICI Bank and HDFC Bank. On the other hand key stocks that have registered gains and provided traction to the overall weak market were Reliance, Sun Pharma, Hindustan UniLever, Bharti Airtel and TCS.Top sectoral losers are Nifty PSU and PVT Bank indices which have slumped 2.67 per cent and 2.38 per cent respectively.
🍒 Shares of Central Bank of India in Stock Market : 71% of moneycontrol users recommend buying Central Bank of India shares. In BSE shares closed at Rs.17.50 against Prev Close Rs.17.75. In NSE, shares closed at Rs.17.45 against Prev Close Rs.17.75....
Have a Good day..
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☕ 11.07.2020: Today's Banking / Financial News at a Glance
🍒 Canara Bank, BoM and SBI announce fund raising plans : Canara Bank and Bank of Maharashtra (BoM) on Friday announced fund raising plans amounting to ₹8,000 crore and ₹3,000 crore, respectively, via equity and Basel III compliant bonds. Canara Bank said its board approved raising of equity share capital amounting up to ₹5,000 crore (including premium) in FY21.The equity capital raise will be by way of Qualified Institutional Placements (QIP), Rights Issue/Employee Stock Purchase Scheme (ESPS)/Private Placement/ Preferential Allotment/any other approved means during the Financial Year (FY) 2020-21 subject to market conditions and necessary approvals. Further, the Bengaluru-headquartered public sector bank’s board also green-lighted the proposal to raise capital through AT I Basel III compliant Bonds to the extent of ₹3,000 crore during the FY2020-21 subject to market conditions and necessary approvals. Bank of Manarashtra’s board considered and approved raising of capital aggregating up to ₹2,000 crore (including share premium). Meanwhile, State Bank of India informed the exchanges that a meeting of its Central Board is scheduled to be held on July 15 to consider and approve raising of Additional Tier 1 (AT 1) and Tier 2 Capital by way of issuance of Basel III compliant debt instrument in USD and/or INR during FY21. - Business Line
🍒 Union Bank of India, BoB trim MCLR across tenors : Union Bank of India (UBI) and Bank of Baroda (BoB) have cut their marginal cost of funds based lending rate (MCLR) by 20 basis points (bps) and 5 bps, respectively, across all tenors. The new MCLR will be effective from July 11 in the case of UBI and July 12 in the case of BoB. One basis point is equal to one-hundredth of a percentage point.Following the cut, UBI’s one-year MCLR will be at 7.40 per cent, down from 7.60 per cent.“This is the thirteenth consecutive rate cut announced by the Bank since July 2019,” UBI said in a statement. Following the cut, BoB’s one-year MCLR will be at 7.60 per cent, down from 7.65 per cent.- Business Line
🍒 PNB revises provision amount for DHFL Borrowal Fraud : A day after reporting a Borrowal Fraud of ₹3,688.58 crore in the NPA Account of Dewan Housing Finance Ltd (DHFL), Punjab National Bank (PNB) has now revised the provision it has made on this front. “In this regard, we wish to submit that the provision figure be read as ₹1,695.73 crore instead of ₹1,246.58 crore,” PNB said in a regulatory filing with stock exchanges on Friday.It may be recalled that PNB had on Thursday said that it had already made provisions amounting to ₹1,246.58 crore as per prudential norms. - Business Line
🍒 Banks move branches, rethink strategy to cut costs amid Covid spread : In an increasingly-digitised world, banks have for years now been reorienting their outreach strategies away from purely branch-driven models towards digital channels. This process may now be getting accelerated as Covid pushes them to cut back on branch rentals. The average banking customer, too, is now averse to making any physical contact with her bank. Small wonder then that banks have begun to reduce their branch footprint and seem to have no qualms moving to smaller and less-prominent locations. They have also started to rethink parameters which determine location of a branch. In the last few weeks, large banks such as Bank of Baroda, ICICI Bank and Bank of India have either moved to or started looking for new locations for some of their existing branches in parts of Mumbai, its adjoining regions and Kolkata. There is a clear drive to lower rental costs through such exercises. - financial express
🍒 Blanket moratorium extension till December not required: SBI Chairman Rajnish Kumar : State Bank of India chairman Rajnish Kumar on Friday said that across the board relief on payment of loan dues is not needed beyond August and he expects the Reserve Bank of India to take a more sectoral approach in the coming months. “The RBI has data from the entire financial system and they will take a call basis that, but if you ask me across the board moratorium is not required anymore,” Kumar said while speaking at a two-day virtual conclave organised by the State Bank of India. “Certain sectors require relief and basis the data that the RBI has access to, I expect a calibrated approach from the regulator.“SBI had recorded a moratorium book of roughly 20% at the end of May which is set to fall further in the second leg of moratorium.“If I go by my book and the analysis of that book, the people who have availed moratorium that number is not very significant,” Kumar added. “It is premature to predict that there will be extension of moratorium till December.”Some media reports had suggested that RBI could look at extending the moratorium till December. Kumar added that six months moratorium was a mini restructuring and relief for restructuring has to be given to company making losses. - economic times
🍒Top 5 private banks stare at NPAs doubling to 5% in FY21 : op five private sector banks may see their slippages double to 5 per cent this fiscal due to the poor loan offtake and the moratorium-driven contraction in net interest margins, warns a report. These five banks -- HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank -- collectively control a quarter of the system and three-fourths of the private banking space, according to a report by India Ratings on Friday. "We forecast FY21 slippages to nearly double to around 5 per cent for these banks from 2.3 per cent in FY19 and 2.7 per cent in FY20, even though net slippages would be lower if refinancing remains a challenge, resulting in a 4 per cent contraction in their net interest margin," says the report. As loan demand remains tepid, banks are parking their excess liquidity in low yielding alternatives such as government bonds and top-rated corporate securities due to their higher credit risk perception and widening duration spreads, even as deposit inflows have been robust.- economic times
🍒 Punjab & Sind Bank declares NPA account Maha Associated Hotels as 'fraud' : Public sector Punjab & Sind Bank on Friday said it has declared NPA account Maha Associated Hotels, with outstanding dues of Rs 71.18 crore, as fraud and reported the matter to the RBI. Further, the lender said it is in the process of filing complaint/FIR with Central Bureau of Investigation (CBI). Pursuant to the applicable provisions of Sebi regulations and the materiality policy of the bank, "it is informed that an NPA account Maha Associated Hotels Pvt Ltd with outstanding dues of Rs 71.18 crore having provisioning of Rs 44.40 crore has been declared as fraud and reported to RBI as per regulatory requirement", the bank said in an exchange filing. Earlier in April this year, the lender had declared the non-performing account of Golden Jubilee Hotels, involving an outstanding amount of over Rs 86 crore, as fraud. Stock of Punjab & Sind Bank was trading at Rs 13.95 apiece on the BSE, down 0.71 per cent from the previous close.- economic times
🍒 Lakshmi Vilas Bank swings into black, posts Rs 93 crore profit in Q4FY20 : Lakshmi Vilas Bank (LVB) on Friday registered a net profit of Rs 92.86 crore for March quarter 2019-20, after having posted losses in the past 10 quarters on rising bad loans. The bank had a net loss of Rs 264.43 crore in January-March 2018-19. For December quarter of the last financial year, it posted a net loss of Rs 334.48 crore, LVB said in a regulatory filing. The private sector lender, struggling to shore up capital to improve its financial position, also saw a decline in income during March quarter at Rs 629.76 crore compared with Rs 739.73 crore in the year-ago same period as it has been witnessing deposit erosion since last September. - Moneycontrol.com
🍒 Karnataka Bank reports its highest-ever quarterly net profit of Rs 196 crore in for June quarter : Private sector lender Karnataka Bank on Friday said it has clocked its highest-ever quarterly net profit of Rs 196.38 crore in the first quarter ended June, on the back of various cost-cutting measures and healthy core income growth. The bank had posted a net profit of Rs 175.42 crore during the corresponding period of the previous financial year, which also was its previous high in quarterly profit, it said in a release. “Karnataka Bank posted an all-time high quarterly net profit of Rs 196.38 crore, during Q1 of 2020-21 as against the previous high of Rs 175.42 crore recorded during Q1 of 2019-20. Thus, the net profit grew by 11.95 per cent year-on-year,” the bank said. Its total income during the April-June 2020 quarter rose to Rs 2,134.63 crore, from Rs 1,794.33 crore a year ago, it said. - Financial Express
🍒 Axis Bank’s SME business records 6% de-growth in FY20 : Private lender Axis Bank’s small and medium enterprises (SME) business saw a de-growth of 6 percent for fiscal 2020 as the bank focused on maintaining asset quality in the segment, the bank said in its latest annual report. The Bank’s SME advances stood at Rs 61,921 crores as on March 31, 2020, and constituted 11 percent of its total advances. “During fiscal 2020, given the uncertainties on the macro-economic front and the underlying weakness in the economy, the Bank had maintained a cautious stance on SME space,” the bank said in its annual report. - Moneycontrol.com
🍒 As public sector banks slash home loan rates, borrowers with housing finance companies are keen to shift their accounts : Home loan borrowers with housing finance companies (HFCs) and non-banking lenders are a worried lot. With most public sector banks (PSBs) and a few private sector players reducing home loan interest rate to a 15-year low, their attempt to switch their loans to institutions offering lower interest rates is making little headway. While home loan transfer from one institution to another to take advantage of lower interest is nothing new, the clamour for a shift is getting louder in recent days as many borrowers are undergoing liquidity stress due to the Covid-19 pandemic. With home loan EMIs accounting for a substantial portion of monthly expenditure, any reduction in outgo is a welcome relief to the borrowers. - Business Line
🍒 YES Bank sets floor price of ₹12 per share for FPO : YES Bank has set a floor price of ₹12 per share for its planned follow-on public offer (FPO) with a cap price of ₹13 per share. The decision was taken at the meeting of the Capital Raising Committee (CRC) of its board of directors on Friday.This will be a significant discount from Thursday’s closing price of ₹26.65 apiece on the BSE. The bank’s scrip was down 5.44 per cent in intraday trade on the BSE.In a regulatory filing, YES Bank said a discount of ₹1 per equity share will be offered to eligible employees bidding in the Employee Reservation Portion.The CRC also approved the proposal for a minimum bid lot of 1,000 equity shares and in the multiples of 1,000 equity shares thereafter. “A meeting of the CRC is scheduled to be held on July 14, 2020 for the purposes of allocation of equity shares to the successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price,” it said. - Business Line
🍒 Banks’ Q1 results: Muted growth expected; focus on moratorium and repayment trends : Banks are likely to have registered muted growth in the first quarter of the fiscal, and asset quality would be a key focus area. While they are expected to make further provisions for Covid-19-led economic uncertainties, the exact stress on their balance sheets would be understood only when the moratorium ends in August. Private sector lenders led by Bandhan Bank and Federal Bank are set to start declaring their results for the April to June 2020 quarter from next week. South Indian Bank reported an 11 per cent growth in net profit for the first quarter with gross NPAs contained at 4.93 per cent. This was also the quarter when the national lockdown impacted the economy and led to a slew of measures by the government and the Reserve Bank of India to increase liquidity and prevent defaults by borrowers. - Business Line
🍒 Global banks may see credit losses of $2.1 trillion, warns S&P : Global banks could see credit losses of about $2.1 trillion for 2020 and 2021 spurred by the Covid-19 pandemic, with $1.3 trillion for this year, more than double the 2019 level, warned S&P Global Ratings. While around 60 per cent of the credit losses will arise in Asia-Pacific, the highest relative increases – more than double on average compared with 2019 – will occur in North America and Western Europe, it said. In a report, The $2 Trillion Question: What’s on the Horizon for Bank Credit Losses, S&P observed that the pandemic and responses to it will weigh heavily on bank asset quality for years to come. - Business Line
🍒 Kotak Mahindra Bank to use new lending filters in post-Covid world: Noting that the financial sector will require recapitalisation in the current situation, Uday Kotak, veteran banker and Managing Director of Kotak Mahindra Bank, said the capital raised by the private sector lender will help it meet with any contingencies or financing business opportunities. “The banking sector’s loan book is about ₹100-lakh crore, and the total capital of all banks in India is about ₹11-lakh crore to ₹12-lakh crore. So, if four per cent to five per cent of loans turn bad due to Covid, the capital position of the banking sector will get impacted by about 40 per cent,” said Kotak in the company’s latest Annual Report, adding that while there will be some mark-to-market gains as bond yields have dropped, the financial sector will need to be recapitalised.The bank raised ₹7,400 crore through Qualified Institutional Placement (QIP) in May. "This additional capital will support the bank in dealing with contingencies or financing business opportunities (organic and or inorganic),” he said. . - Business Line
🍒 Son of ex-bank staffers among three held for running fake SBI branch : Tamil Nadu police today arrested three people for running a duplicate branch of State Bank of India (SBI). Among the three people, one was the son of former bank employees. Ambethkar, an Inspector of Police at Panruti, has confirmed the development and said the police have arrested three people including the mastermind Kamal Babu, an unemployed youth whose parents were former bank employees.His father died 10 years ago, while his mother retired from a bank two years ago.The other two people arrested include a person who runs the printing press from where all the receipts, challans and other documents were printed. The other was into printing rubber stamps. The three-month-old branch came under the lens after an SBI customer noticed it in Panruti and took the matter up with his Branch manager. Soon after, the matter was escalated to Zonal office, which in turn informed the Branch Manager that only only two branches of SBI are running in Panruti, and no third branch had been opened. Business Line
🍒 SBI's North East Head Office sealed after spike in coronavirus cases among staff : The State Bank of India's North East Head Office here was sealed indefinitely on Thursday after five more employees tested positive for novel coronavirus in the last two days, officials said. With these new cases, the total number of COVID-19 positive people in the country's largest public sector lender’s regional headquarters here has gone up to 27, official sources told PTI.Kamrup Metropolitan Deputy Commissioner Biswajit Pegu declared the complex as a "containment zone" and ordered it to be sealed with immediate effect "until further order" to prevent further spread of infection in the area. "In view of the detection of more positive patients of COVID-19 in the SBI North East Head Office, which is located just opposite of the Assam Secretariat, the stringent step has been taken," the order said. - Live mint
🍒 Gold scales new peak of Rs 49,320 per 10 gram, silver slips : Gold prices gained Rs 81 to Rs 49,320 per 10 gram, a record high in the Mumbai bullion market on rupee depreciation versus the dollar. The yellow metal prices rose on worries of rising coronavirus cases in the US and other parts of the world. The rate of a 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,990, Rs 45,177 and Rs 49,320 plus 3 percent GST.Silver prices declined Rs 245 to Rs 50,975 per kg from its closing on July 9.
🍒 Punjab National Bank shares tank nearly 7% : Shares of Punjab National Bank on Friday tumbled nearly 7 percent after the company said it has reported a fraud of Rs 3,688.58 crore in the non-performing asset account of Dewan Housing Finance (DHFL) to the RBI. The stock plunged 6.73 percent to Rs 34.60 on the BSE. On the NSE, it tanked 6.73 percent to Rs 34.60. "A fraud of Rs 3,688.58 crore is being reported by bank to the Reserve Bank of India (RBI) in the accounts of the company (DHFL)," PNB said in a stock exchange filing. - Moneycontrol.com
🍒 Rupee skids 21 paise to end at 75.20 against US dollar : The Indian rupee weakened by 21 paise to close at 75.20 against the US dollar on Friday, tracking lower equities as investors seemed moving away from riskier assets amid worries over mounting COVID-19 cases. Further, the stronger US dollar against key rival currencies also put pressure on the domestic unit.At the interbank foreign exchange market, the rupee opened weaker at 75.16 a dollar against the previous day's close of 74.99. During the session, it swung between a high of 75.12 and low of 75.33 before settling at 75.20, showing a loss of 21 paise.
🍒 Sensex ends 143 points lower amid concerns over economy : After opening weak at 36,555.13, the BSE benchmark Sensex moved up to an intraday high of 36,748.89, before settling lower by 143.36 points, or 0.39%, at 36,594.33. The market breadth was negative on the BSE today. Out the 2,827 share traded, the advancing scrips were lesser at 1,003, and the number of decliners was at 1,663. Scrips that remained unchanged were at 167. On the NSE, the Nifty too was down 45.40 points, or 0.42 per cent, to 10,768.05. The market breadth was negative here too. On the NSE, the decliners were higher at 36, while advancers were at 14.Private sector bank Axis Bank was the top loser in the Sensex pack today, falling over 3 per cent, followed by IndusInd Bank, HDFC, Titan, ICICI Bank and HDFC Bank. On the other hand key stocks that have registered gains and provided traction to the overall weak market were Reliance, Sun Pharma, Hindustan UniLever, Bharti Airtel and TCS.Top sectoral losers are Nifty PSU and PVT Bank indices which have slumped 2.67 per cent and 2.38 per cent respectively.
🍒 Shares of Central Bank of India in Stock Market : 71% of moneycontrol users recommend buying Central Bank of India shares. In BSE shares closed at Rs.17.50 against Prev Close Rs.17.75. In NSE, shares closed at Rs.17.45 against Prev Close Rs.17.75....
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