09.07.2020: Today's Banking / Financial News at a Glance
🍒 Centre may tell IBA to set up 'bad bank' with financial support from banks : The Centre is likely to tell the Indian Banks’ Association (IBA) to set up its proposed “bad bank” with financial support from banks, instead of asking the government to become a promoter. “If the banks want, they can set it up through their own funds,” a senior finance ministry official said. In a proposal to the finance ministry and the Reserve Bank of India, the IBA had proposed a national-level asset reconstruction company (ARC) owned by the government with its capital infusion worth Rs 10,000 crore. This would have allowed the “bad bank” to take up bad loans from banks worth Rs 70,000 crore. The IBA wanted the government to invest and control the ARC to give some level of comfort to the lenders because the present ARC mechanism in the market hasn’t shown expected results. “The banks won’t hesitate to put money in the ARC once the government invests in it. The problem of transferring assets to the existing ARCs is that when multiple banks are involved, they are unable to take a unanimous decision,” a senior IBA executive said, adding it would continue to persuade the government and the RBI on this. The IBA has proposed selling non-performing assets (NPAs) to the “bad bank” at the net book value so that lenders don’t have to take a haircut. - Business Standard
🍒 SBI cuts MCLR by 5-10 bps for shorter tenors : The country’s largest lender State Bank of India (SBI) on Wednesday said it has reduced its marginal cost of funds based lending rate (MCLR) by 5-10 basis points (bps) for shorter tenors from July 10. The reduction in MCLR for shorter tenors - up to three months - is aimed to boost credit offtake and revive demand, according to an SBI statement. With this revision, the bank’s MCLR up to three months tenor has come down to 6.65 per cent per annum, which is at par with its external benchmark based lending rate (EBLR). This is the 14th consecutive reduction in the bank’s MCLR, which continues to be the lowest in the market. - Business Line
🍒 SBI to invest up to ₹1,760 crore in Yes Bank : State Bank of India will invest up to ₹1,760 crore in troubled private sector lender Yes Bank, which is set to come out with a follow on public offer. The decision was taken at a meeting of the Executive Committee of Central Board (ECCB) of SBI on Wednesday.“The Executive Committee of Central Board (ECCB) of SBI at its meeting has accorded approval for a maximum investment of up to ₹ 1,760 crore in the further public offering of Yes Bank,” it said in a regulatory filing.The announcement comes a day after Yes Bank said the Capital Raising Committee of its board has approved a proposal for capital raise through an FPO.SBI has been a knight in shining armour for the troubled lender. As part of the reconstruction scheme, SBI along with other domestic banks and financial institutions invested ₹10,000 crore in Yes Bank. As on March 31, 2020, it owned 48.21 per cent stake in the lender. Yes Bank is looking to raise between ₹10,000 crore and ₹15,000 crore through the FPO route and is understood to have filed the offer document with the Registrar of Companies. - Business Line
🍒 Bank of Maharashtra sanctions Rs 2,779 crore since March : State-owned Bank of Maharashtra on Wednesday said it has sanctioned Rs 2,779 crore to micro, small and medium enterprises (MSMEs) under various schemes since March. Of this, the lender has disbursed Rs 2,327 crore to MSME players, according to a release.The loans to MSMEs were offered majorly under the government's Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) and the lender's emergency credit line for COVID-19.Since the declaration of lockdown, the bank has sanctioned additional loans to its customers, including MSMEs, agriculture and personal borrowers, over their regular limits, to overcome their liquidity mismatches.Under its emergency line for COVID-19, the bank sanctioned Rs 1,653.16 crore to 1,08,419 borrowers. It sanctioned Rs 1,724.98 crore to 84,151 borrowers under ECLGS, the release said.The bank also sanctioned an amount of Rs 11.28 crore to 30 borrowers under the standby line of credit (SLC). - economic times
🍒 ICICI Bank to raise up to Rs 15,000 crore to bolster capital base : Second largest private sector lender ICICI Bank on Wednesday said its board has decided to raise up to Rs 15,000 crore in core capital through a variety of routes. The lender joins peers, including Axis Bank, Kotak Mahindra Bank, Federal Bank and Yes Bank, who have either raised fresh capital or decided to do so soon, amid the COVID-19 pandemic. “The board, at its meeting held today, has approved raising of funds for an amount aggregating up to Rs 15,000 crore in one or more tranches,” ICICI Bank said in a regulatory filing on Wednesday. The money will be raised either through a private placement of shares or preferential issue or qualified institutions placement (QIP) or follow-on public offering (FPO), or a combination thereof, it added. - Financial Expres
🍒 South Indian Bank posts 11% growth in net profit in Q1 : South Indian Bank has registered a 11 per cent growth in its net profit in Q1 at ₹81.65 crore against ₹73.26 crore during the corresponding period of the previous year. The operating profit has grown from ₹317.63 crore to ₹403.68 crore, a growth of 27 per cent. According to VG Mathew, MD & CEO, there has been a good growth in the retail, agriculture and MSME portfolios. As part of the business strategy to reduce its exposure in the corporate advances, the bank has brought down the share of corporate advances from 32.36 per cent as on June 30, 2019 to 27.74 per cent as on June 30, 2020. He added that the growth in the desired portfolios and the reduction in the corporate exposure has further strengthened the bank’s balance sheet. The retail portfolio has grown at 10 per cent and is already accounting for 32 per cent of the loan book, in tune with the Bank’s stated objective of becoming a retail banking powerhouse. - Business Line
🍒 SBI to digitise MSME lending, putting senior people to drive growth : State Bank of India (SBI) is looking to re-energize its small and medium enterprise (SME) lending vertical, accounting for a ninth of its loan book, by digitizing the module and putting top people in key business pockets to acquire new customers. SBI’s SME portfolio shrank over 7% in FY20 to Rs 2.68 lakh crore from Rs 2.89 lakh crore. About 9.5% of this portfolio turned non-performing.The country’s biggest mass lender is also working on unveiling a pre-approved merchant loan through its Yono platform. - Economic Times
🍒 Yes Bank puts up for auction two aircraft of Ligare Voyages : Yes Bank has put up for auction two aircraft owned by Ligare Voyages (Ireland) Ltd to recover its loan dues, according to a bank document. Inviting bids for sale of two Beechcraft 1900D Airliner- Turbo Prop aircraft, having seating capacity of 21 each (18+3), Yes Bank in a notice said these aircraft have been mortgaged with the bank for credit facilities granted to Ligare Voyages Ltd. The auction notice did not mention the amount of credit facilities granted by Yes Bank to Ligare Voyages Ltd.Ligare Voyages is a group company of RHC Holding Pvt Ltd, which is promoted by brothers Shivinder Mohan Singh and Malvinder Mohan Singh. Ligare Voyages is into the business of providing air charter services since 2006-07, according to RHC Holding website. - economic times
🍒 Loan moratorium is not a loan waiver: MFIs struggle to convince some borrowers : Misinformation about the actual terms of the loan moratorium scheme among a section of microfinance borrowers, especially women borrowers in far-flung areas of the country, is causing hardships to microfinance institutions. MFIs are struggling to convince their borrowers that this is not a loan waiver or interest-free scheme. Misinformation spread by local media and some politicians are adding to their problems, industry officials said.MFIs are institutions which lend small loans to low-income borrowers at a rate of interest of 20-23 percent and source money mainly from commercial banks. These institutions are one of the most affected in the COVID-19 hit economy due to the nature of their borrowers. - Moneycontrol.com
🍒 57% of Indian consumers use digital payment 5-6 times a week, says India Transact Services survey : Digital payments have witnessed a massive boom amid the Covid-19 pandemic according to a survey by merchant payments solution company India Transact Services Limited. “While businesses across various sectors are staggering under the cascading effects of the pandemic, there is a sector which is experiencing a surge in usage — digital payments,” the report read.According to the survey, 57 per cent of respondents used digital payments 5-6 times a week while 21 per cent of them claimed to use it thrice. About 20 per cent of respondents used digital payments less than three times a week.As digital payments witness a massive surge, UPI has emerged as the most popular mode for customers according to the survey. “Among the different modes of digital payments available to the consumers -UPI/BHIM, Tap & Pay on PoS terminal via credit/debit, E-wallets, QR Code, Payment Gateway, SMS Based Payments and Prepaid Cards, UPI based payments were found most popular among people,” it added. - Business Line
🍒 Government releases Rs 6,195.08 crore to 14 states as fourth equated monthly installment of the Post Devolution Revenue Deficit Grant : The government Wednesday released Rs 6,195.08 crore to 14 states as the fourth equated monthly installment of the Post Devolution Revenue Deficit Grant. "This would provide them additional resources during the Corona crisis," the finance ministry said in a statement.The grant was recommended by the 15th Finance Commission, and equal installments of the grant have been issued by the Centre to states since April. On Wednesday, the Centre released advance payments of over Rs 1,276 crore to Kerala, followed by over Rs 952 crore to Himachal Pradesh and over Rs 638 crore to Punjab. Assam received Rs 631 crore, Andhra Pradesh Rs 491 crore, Uttarakhand Rs 423 crore, and West Bengal got Rs 417 crore. - economic times
🍒 Yes Bank to raise upto ₹15,000 crore through FPO : Private sector lender Yes Bank has filed the offer document for its planned follow on public offer with the Registrar of Companies and could raise between ₹10,000 crore and ₹15,000 crore through the route. The bank had on Tuesday night announced that its proposal for capital raise through an FPO was cleared by the Capital Raising Committee of its board of directors on Tuesday.“Post closure of the requisite formalities with the Registrar of Companies, Maharashtra at Mumbai, the details in respect of the offer will be disseminated…,” it said. The committee will meet again on July 10 to approve the price band and discount amongst other issues, the lender said in a regulatory filing. - Business Line
🍒 Collection efficiency of Bandhan Bank improves for all advances : Private lender Bandhan Bank has reported improved collection efficiency in the first quarter of this fiscal for both micro-banking and non-micro banking advances. According to provisional figures of the bank during the first quarter ending June 30, 2020, collection efficiency of micro-banking advances inched up to 68 per cent, which further improved to 70 per cent as on July three. The bank said that nearly 70 per cent of its customers have started repaying their loans. For non-micro banking advances, the collection efficiency for June was 84 per cent, according to the bank. The rate of effective moratorium — those who opted for the moratorium on repayment of loans allowed by the Reserve Bank of India (RBI) but did not start repaying so far – for micro-banking advances, stood at 30 per cent, the bank said. For non-micro banking advances, the effective moratorium rate was 16 per cent during the period, the bank said. During the first quarter of this fiscal, loans and advances stood at Rs 74,325 crore, while deposits touched Rs 60,602 crore. - financial express
🍒 Merger of PSU general insurers called off two years after budget proposal : Over two years after proposing a merger of public sector general insurance companies, the government on July 8 said it has 'ceased' the process. Instead, the focus will now be on their profitable growth and maintaining minimum capital levels, the government has now said.As of Q3FY20, United India's solvency ratio stood at 0.94 as against the regulatory requirement of 1.5. Here, solvency means the minimum capital/assets that have to be maintained against the liabilities. Solvency ratio of Oriental Insurance stood at 1.54 at the end of Q3FY20 while that of National Insurance stood at 0.12 percent as of Q3FY20. - moneycontrol.com
🍒 Cabinet approves extension of PM Garib Kalyan Yojana till November: FM Sitharaman : The Cabinet has approved the extension of the Pradhan Mantri Garib Kalyan Yojana till the end of November, Finance Minister Nirmala Sitharaman said on July 8. "81.09 crore people would rightly get free food grains (5kg/person) for 8 continuous months," Sitharaman said.The Cabinet under the leadership of @PMOIndia@narendramodi gave approval for extending #PMGKAY - Garib Kalyan Anna Yojana upto end November. 81.09 crore people would rightly get free food grains (5kg/person) for 8 continuous months. #coronavirus — Nirmala Sitharaman (@nsitharaman) July 8, 2020 Prime Minister Narendra Modi had on June 30 announced the extension of the scheme during his address to the nation. - moneycontrol.com
🍒 Indian banks pursue Mallya bankruptcy order in UK court : A consortium of Indian banks led by the State Bank of India (SBI) are pursuing their bankruptcy order against liquor tycoon Vijay Mallya in the High Court in England, as they seek to establish that any settlement offer made by him is now “dead in the water”. In a hearing in the insolvency division of the High Court in London on Tuesday, Justice Michael Briggs heard arguments from the banks, represented by barrister Marcia Shekerdemian, that pursuing the bankruptcy order was required as the banks were not secured creditors, as claimed by Mallya.It follows Justice Briggs' ruling back in April in the case when he had concluded that Mallya should be given time until petitions pending in India can be determined before a decision is made on a bankruptcy order in London. “There can be no doubt that it is appropriate to make a bankruptcy order in this case. The numerous hurdles being put up by VJM (Mallya) are without merit,” note the arguments laid out before the court on behalf of the banks. - Economic times
🍒 Moody's warns banks of increased cyber risks : Global rating agency Moody’s Investors Service has warned banks of increased risks of cyberattacks during the ongoing covid-19 pandemic as employees are still adjusting to their work from home routines and lenders are shifting most physical processes into digital. These attacks can be in the form of phishing emails, malware attacks and social engineering frauds as well, Moody’s said on Tuesday. Moreover, Banks’ digital customers are a natural target for fraudsters, they said. “Social distancing has created a surge in demand for contactless payments, digital cash transfers and online banking, as well as remote working by bank employees,” said Alessandro Roccati, Senior Vice President at Moody’s. - economic times
🍒 Future Generali Insurance announces promotion, pay hike for employees : Future Generali India Insurance Company Ltd (FGII) on Tuesday announced promotions, annual increments and variable payouts to all its employees. FGII, the general insurance arm of the joint venture between retail giant Future Group and global insurer Generali, also said there will be no layoffs of employees during these unprecedented and volatile times. The company also made provision of an immediate relief fund of ₹50,000 to each of its business-active agents and their families if they are tested positive for Covid-19, it said. With over 125 branches across India, the company has decided not to compromise on hiring and plans to recruit employees as per the business requirement, it said in a statement. - Business Line
🍒 Edelweiss NBFC to exit wholesale loans : Edelweiss Financial Services Ltd Tuesday said its non-bank subsidiary ECL Finance Ltd will sell its wholesale loan book within two years to focus solely on retail lending. Edelweiss will, however, continue to extend wholesale loans through its separate asset management company (AMC). ECL Finance, which has a total loan book of ₹19,100 crore, sold wholesale loans worth ₹4,000 crore to global investors recently, and is looking to sell ₹3,000 crore more this fiscal year, company executives said at an earnings call on Monday.At the end of the March quarter, it had outstanding wholesale loans of ₹10,000 crore, down 43% from a year ago. “We want to bring it (wholesale loans) down to zero by 2022. We will do it in the AMC business, which has assets under management of ₹21,000 crore. A lot of project and construction finance business has a lot of uncertainty around cash flows. If you do it in the fund format, then you take ALM (asset-liability mismatch) risk and NPA (non-performing assets) issue out of the way," Edelweiss group chairman and chief executive Rashesh Shah said. - Live Mint
🍒 Sensex, Nifty snap five-day rally : The 30-share index declined 345.51 points, or 0.94 per cent, to settle at 36,329.01, and the NSE Nifty too fell 93.90 points, or 0.87 per cent, to 10,705.75. The market breadth was clearly negative on the BSE. Out the 2,894 share traded today, the declining scrips were higher at 1,499, and the number of advancing shares was 1,243. However, scrips that remained unchanged were at 152.On the Nifty 50 front, advancers were at 14 and the decliners were higher at 35.Major losers that dragged the markets lower were Bajaj Finance, down by 4.75%, Asian Paint lost 3.40%, Bajaj Finserv was down 3%, Maruti, down 3% and HCL Tech declined 2.75%. However, top gainers that bucked the weak trend were IndusInd Bank, which was up 4.30%, Hind UniLever was up 1.45%, SBI rose 1.40%, Tata Steel and ITC, both were up 1% each. - Business Line
🍒Rupee slips 9 paise to close at 75.02 against US dollar : The rupee depreciated 9 paise to settle at 75.02 (provisional) against the US dollar on Wednesday tracking volatile domestic equities, rising crude oil prices and strengthening American currency. The rupee opened on a positive note at 74.88 at the interbank forex market, but lost ground and settled for the day at 75.02 against US dollar, down 9 paise over its last close. It had settled at 74.93 against the US dollar on Tuesday.
🍒 Gold at record high of Rs 49,122 per 10 gram, silver jumps Rs 1,270 per kg : Gold prices gained Rs 678 to Rs 49,122 per 10 gram, a record high in the Mumbai bullion market on rupee depreciation against the dollar and strong global cues. The precious metal prices jumped to the highest level since September 2011 on increasing coronavirus cases globally and hopes of more stimulus package actions to combat the economic blow. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,842, Rs 44,996 and Rs 49,122 plus 3 percent GST, respectively. Silver prices rose Rs 1,270 to Rs 50,140 per kg from its closing on July 7.
🍒 Shares of Central Bank of India in Stock Market : 82% of moneycontrol users recommend buying Central Bank of India shares. In BSE shares closed at Rs.17.60 against Prev Close Rs.17.45. In NSE, shares closed at Rs.17.60 against Prev Close Rs.17.40..
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🍒 Centre may tell IBA to set up 'bad bank' with financial support from banks : The Centre is likely to tell the Indian Banks’ Association (IBA) to set up its proposed “bad bank” with financial support from banks, instead of asking the government to become a promoter. “If the banks want, they can set it up through their own funds,” a senior finance ministry official said. In a proposal to the finance ministry and the Reserve Bank of India, the IBA had proposed a national-level asset reconstruction company (ARC) owned by the government with its capital infusion worth Rs 10,000 crore. This would have allowed the “bad bank” to take up bad loans from banks worth Rs 70,000 crore. The IBA wanted the government to invest and control the ARC to give some level of comfort to the lenders because the present ARC mechanism in the market hasn’t shown expected results. “The banks won’t hesitate to put money in the ARC once the government invests in it. The problem of transferring assets to the existing ARCs is that when multiple banks are involved, they are unable to take a unanimous decision,” a senior IBA executive said, adding it would continue to persuade the government and the RBI on this. The IBA has proposed selling non-performing assets (NPAs) to the “bad bank” at the net book value so that lenders don’t have to take a haircut. - Business Standard
🍒 SBI cuts MCLR by 5-10 bps for shorter tenors : The country’s largest lender State Bank of India (SBI) on Wednesday said it has reduced its marginal cost of funds based lending rate (MCLR) by 5-10 basis points (bps) for shorter tenors from July 10. The reduction in MCLR for shorter tenors - up to three months - is aimed to boost credit offtake and revive demand, according to an SBI statement. With this revision, the bank’s MCLR up to three months tenor has come down to 6.65 per cent per annum, which is at par with its external benchmark based lending rate (EBLR). This is the 14th consecutive reduction in the bank’s MCLR, which continues to be the lowest in the market. - Business Line
🍒 SBI to invest up to ₹1,760 crore in Yes Bank : State Bank of India will invest up to ₹1,760 crore in troubled private sector lender Yes Bank, which is set to come out with a follow on public offer. The decision was taken at a meeting of the Executive Committee of Central Board (ECCB) of SBI on Wednesday.“The Executive Committee of Central Board (ECCB) of SBI at its meeting has accorded approval for a maximum investment of up to ₹ 1,760 crore in the further public offering of Yes Bank,” it said in a regulatory filing.The announcement comes a day after Yes Bank said the Capital Raising Committee of its board has approved a proposal for capital raise through an FPO.SBI has been a knight in shining armour for the troubled lender. As part of the reconstruction scheme, SBI along with other domestic banks and financial institutions invested ₹10,000 crore in Yes Bank. As on March 31, 2020, it owned 48.21 per cent stake in the lender. Yes Bank is looking to raise between ₹10,000 crore and ₹15,000 crore through the FPO route and is understood to have filed the offer document with the Registrar of Companies. - Business Line
🍒 Bank of Maharashtra sanctions Rs 2,779 crore since March : State-owned Bank of Maharashtra on Wednesday said it has sanctioned Rs 2,779 crore to micro, small and medium enterprises (MSMEs) under various schemes since March. Of this, the lender has disbursed Rs 2,327 crore to MSME players, according to a release.The loans to MSMEs were offered majorly under the government's Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) and the lender's emergency credit line for COVID-19.Since the declaration of lockdown, the bank has sanctioned additional loans to its customers, including MSMEs, agriculture and personal borrowers, over their regular limits, to overcome their liquidity mismatches.Under its emergency line for COVID-19, the bank sanctioned Rs 1,653.16 crore to 1,08,419 borrowers. It sanctioned Rs 1,724.98 crore to 84,151 borrowers under ECLGS, the release said.The bank also sanctioned an amount of Rs 11.28 crore to 30 borrowers under the standby line of credit (SLC). - economic times
🍒 ICICI Bank to raise up to Rs 15,000 crore to bolster capital base : Second largest private sector lender ICICI Bank on Wednesday said its board has decided to raise up to Rs 15,000 crore in core capital through a variety of routes. The lender joins peers, including Axis Bank, Kotak Mahindra Bank, Federal Bank and Yes Bank, who have either raised fresh capital or decided to do so soon, amid the COVID-19 pandemic. “The board, at its meeting held today, has approved raising of funds for an amount aggregating up to Rs 15,000 crore in one or more tranches,” ICICI Bank said in a regulatory filing on Wednesday. The money will be raised either through a private placement of shares or preferential issue or qualified institutions placement (QIP) or follow-on public offering (FPO), or a combination thereof, it added. - Financial Expres
🍒 South Indian Bank posts 11% growth in net profit in Q1 : South Indian Bank has registered a 11 per cent growth in its net profit in Q1 at ₹81.65 crore against ₹73.26 crore during the corresponding period of the previous year. The operating profit has grown from ₹317.63 crore to ₹403.68 crore, a growth of 27 per cent. According to VG Mathew, MD & CEO, there has been a good growth in the retail, agriculture and MSME portfolios. As part of the business strategy to reduce its exposure in the corporate advances, the bank has brought down the share of corporate advances from 32.36 per cent as on June 30, 2019 to 27.74 per cent as on June 30, 2020. He added that the growth in the desired portfolios and the reduction in the corporate exposure has further strengthened the bank’s balance sheet. The retail portfolio has grown at 10 per cent and is already accounting for 32 per cent of the loan book, in tune with the Bank’s stated objective of becoming a retail banking powerhouse. - Business Line
🍒 SBI to digitise MSME lending, putting senior people to drive growth : State Bank of India (SBI) is looking to re-energize its small and medium enterprise (SME) lending vertical, accounting for a ninth of its loan book, by digitizing the module and putting top people in key business pockets to acquire new customers. SBI’s SME portfolio shrank over 7% in FY20 to Rs 2.68 lakh crore from Rs 2.89 lakh crore. About 9.5% of this portfolio turned non-performing.The country’s biggest mass lender is also working on unveiling a pre-approved merchant loan through its Yono platform. - Economic Times
🍒 Yes Bank puts up for auction two aircraft of Ligare Voyages : Yes Bank has put up for auction two aircraft owned by Ligare Voyages (Ireland) Ltd to recover its loan dues, according to a bank document. Inviting bids for sale of two Beechcraft 1900D Airliner- Turbo Prop aircraft, having seating capacity of 21 each (18+3), Yes Bank in a notice said these aircraft have been mortgaged with the bank for credit facilities granted to Ligare Voyages Ltd. The auction notice did not mention the amount of credit facilities granted by Yes Bank to Ligare Voyages Ltd.Ligare Voyages is a group company of RHC Holding Pvt Ltd, which is promoted by brothers Shivinder Mohan Singh and Malvinder Mohan Singh. Ligare Voyages is into the business of providing air charter services since 2006-07, according to RHC Holding website. - economic times
🍒 Loan moratorium is not a loan waiver: MFIs struggle to convince some borrowers : Misinformation about the actual terms of the loan moratorium scheme among a section of microfinance borrowers, especially women borrowers in far-flung areas of the country, is causing hardships to microfinance institutions. MFIs are struggling to convince their borrowers that this is not a loan waiver or interest-free scheme. Misinformation spread by local media and some politicians are adding to their problems, industry officials said.MFIs are institutions which lend small loans to low-income borrowers at a rate of interest of 20-23 percent and source money mainly from commercial banks. These institutions are one of the most affected in the COVID-19 hit economy due to the nature of their borrowers. - Moneycontrol.com
🍒 57% of Indian consumers use digital payment 5-6 times a week, says India Transact Services survey : Digital payments have witnessed a massive boom amid the Covid-19 pandemic according to a survey by merchant payments solution company India Transact Services Limited. “While businesses across various sectors are staggering under the cascading effects of the pandemic, there is a sector which is experiencing a surge in usage — digital payments,” the report read.According to the survey, 57 per cent of respondents used digital payments 5-6 times a week while 21 per cent of them claimed to use it thrice. About 20 per cent of respondents used digital payments less than three times a week.As digital payments witness a massive surge, UPI has emerged as the most popular mode for customers according to the survey. “Among the different modes of digital payments available to the consumers -UPI/BHIM, Tap & Pay on PoS terminal via credit/debit, E-wallets, QR Code, Payment Gateway, SMS Based Payments and Prepaid Cards, UPI based payments were found most popular among people,” it added. - Business Line
🍒 Government releases Rs 6,195.08 crore to 14 states as fourth equated monthly installment of the Post Devolution Revenue Deficit Grant : The government Wednesday released Rs 6,195.08 crore to 14 states as the fourth equated monthly installment of the Post Devolution Revenue Deficit Grant. "This would provide them additional resources during the Corona crisis," the finance ministry said in a statement.The grant was recommended by the 15th Finance Commission, and equal installments of the grant have been issued by the Centre to states since April. On Wednesday, the Centre released advance payments of over Rs 1,276 crore to Kerala, followed by over Rs 952 crore to Himachal Pradesh and over Rs 638 crore to Punjab. Assam received Rs 631 crore, Andhra Pradesh Rs 491 crore, Uttarakhand Rs 423 crore, and West Bengal got Rs 417 crore. - economic times
🍒 Yes Bank to raise upto ₹15,000 crore through FPO : Private sector lender Yes Bank has filed the offer document for its planned follow on public offer with the Registrar of Companies and could raise between ₹10,000 crore and ₹15,000 crore through the route. The bank had on Tuesday night announced that its proposal for capital raise through an FPO was cleared by the Capital Raising Committee of its board of directors on Tuesday.“Post closure of the requisite formalities with the Registrar of Companies, Maharashtra at Mumbai, the details in respect of the offer will be disseminated…,” it said. The committee will meet again on July 10 to approve the price band and discount amongst other issues, the lender said in a regulatory filing. - Business Line
🍒 Collection efficiency of Bandhan Bank improves for all advances : Private lender Bandhan Bank has reported improved collection efficiency in the first quarter of this fiscal for both micro-banking and non-micro banking advances. According to provisional figures of the bank during the first quarter ending June 30, 2020, collection efficiency of micro-banking advances inched up to 68 per cent, which further improved to 70 per cent as on July three. The bank said that nearly 70 per cent of its customers have started repaying their loans. For non-micro banking advances, the collection efficiency for June was 84 per cent, according to the bank. The rate of effective moratorium — those who opted for the moratorium on repayment of loans allowed by the Reserve Bank of India (RBI) but did not start repaying so far – for micro-banking advances, stood at 30 per cent, the bank said. For non-micro banking advances, the effective moratorium rate was 16 per cent during the period, the bank said. During the first quarter of this fiscal, loans and advances stood at Rs 74,325 crore, while deposits touched Rs 60,602 crore. - financial express
🍒 Merger of PSU general insurers called off two years after budget proposal : Over two years after proposing a merger of public sector general insurance companies, the government on July 8 said it has 'ceased' the process. Instead, the focus will now be on their profitable growth and maintaining minimum capital levels, the government has now said.As of Q3FY20, United India's solvency ratio stood at 0.94 as against the regulatory requirement of 1.5. Here, solvency means the minimum capital/assets that have to be maintained against the liabilities. Solvency ratio of Oriental Insurance stood at 1.54 at the end of Q3FY20 while that of National Insurance stood at 0.12 percent as of Q3FY20. - moneycontrol.com
🍒 Cabinet approves extension of PM Garib Kalyan Yojana till November: FM Sitharaman : The Cabinet has approved the extension of the Pradhan Mantri Garib Kalyan Yojana till the end of November, Finance Minister Nirmala Sitharaman said on July 8. "81.09 crore people would rightly get free food grains (5kg/person) for 8 continuous months," Sitharaman said.The Cabinet under the leadership of @PMOIndia@narendramodi gave approval for extending #PMGKAY - Garib Kalyan Anna Yojana upto end November. 81.09 crore people would rightly get free food grains (5kg/person) for 8 continuous months. #coronavirus — Nirmala Sitharaman (@nsitharaman) July 8, 2020 Prime Minister Narendra Modi had on June 30 announced the extension of the scheme during his address to the nation. - moneycontrol.com
🍒 Indian banks pursue Mallya bankruptcy order in UK court : A consortium of Indian banks led by the State Bank of India (SBI) are pursuing their bankruptcy order against liquor tycoon Vijay Mallya in the High Court in England, as they seek to establish that any settlement offer made by him is now “dead in the water”. In a hearing in the insolvency division of the High Court in London on Tuesday, Justice Michael Briggs heard arguments from the banks, represented by barrister Marcia Shekerdemian, that pursuing the bankruptcy order was required as the banks were not secured creditors, as claimed by Mallya.It follows Justice Briggs' ruling back in April in the case when he had concluded that Mallya should be given time until petitions pending in India can be determined before a decision is made on a bankruptcy order in London. “There can be no doubt that it is appropriate to make a bankruptcy order in this case. The numerous hurdles being put up by VJM (Mallya) are without merit,” note the arguments laid out before the court on behalf of the banks. - Economic times
🍒 Moody's warns banks of increased cyber risks : Global rating agency Moody’s Investors Service has warned banks of increased risks of cyberattacks during the ongoing covid-19 pandemic as employees are still adjusting to their work from home routines and lenders are shifting most physical processes into digital. These attacks can be in the form of phishing emails, malware attacks and social engineering frauds as well, Moody’s said on Tuesday. Moreover, Banks’ digital customers are a natural target for fraudsters, they said. “Social distancing has created a surge in demand for contactless payments, digital cash transfers and online banking, as well as remote working by bank employees,” said Alessandro Roccati, Senior Vice President at Moody’s. - economic times
🍒 Future Generali Insurance announces promotion, pay hike for employees : Future Generali India Insurance Company Ltd (FGII) on Tuesday announced promotions, annual increments and variable payouts to all its employees. FGII, the general insurance arm of the joint venture between retail giant Future Group and global insurer Generali, also said there will be no layoffs of employees during these unprecedented and volatile times. The company also made provision of an immediate relief fund of ₹50,000 to each of its business-active agents and their families if they are tested positive for Covid-19, it said. With over 125 branches across India, the company has decided not to compromise on hiring and plans to recruit employees as per the business requirement, it said in a statement. - Business Line
🍒 Edelweiss NBFC to exit wholesale loans : Edelweiss Financial Services Ltd Tuesday said its non-bank subsidiary ECL Finance Ltd will sell its wholesale loan book within two years to focus solely on retail lending. Edelweiss will, however, continue to extend wholesale loans through its separate asset management company (AMC). ECL Finance, which has a total loan book of ₹19,100 crore, sold wholesale loans worth ₹4,000 crore to global investors recently, and is looking to sell ₹3,000 crore more this fiscal year, company executives said at an earnings call on Monday.At the end of the March quarter, it had outstanding wholesale loans of ₹10,000 crore, down 43% from a year ago. “We want to bring it (wholesale loans) down to zero by 2022. We will do it in the AMC business, which has assets under management of ₹21,000 crore. A lot of project and construction finance business has a lot of uncertainty around cash flows. If you do it in the fund format, then you take ALM (asset-liability mismatch) risk and NPA (non-performing assets) issue out of the way," Edelweiss group chairman and chief executive Rashesh Shah said. - Live Mint
🍒 Sensex, Nifty snap five-day rally : The 30-share index declined 345.51 points, or 0.94 per cent, to settle at 36,329.01, and the NSE Nifty too fell 93.90 points, or 0.87 per cent, to 10,705.75. The market breadth was clearly negative on the BSE. Out the 2,894 share traded today, the declining scrips were higher at 1,499, and the number of advancing shares was 1,243. However, scrips that remained unchanged were at 152.On the Nifty 50 front, advancers were at 14 and the decliners were higher at 35.Major losers that dragged the markets lower were Bajaj Finance, down by 4.75%, Asian Paint lost 3.40%, Bajaj Finserv was down 3%, Maruti, down 3% and HCL Tech declined 2.75%. However, top gainers that bucked the weak trend were IndusInd Bank, which was up 4.30%, Hind UniLever was up 1.45%, SBI rose 1.40%, Tata Steel and ITC, both were up 1% each. - Business Line
🍒Rupee slips 9 paise to close at 75.02 against US dollar : The rupee depreciated 9 paise to settle at 75.02 (provisional) against the US dollar on Wednesday tracking volatile domestic equities, rising crude oil prices and strengthening American currency. The rupee opened on a positive note at 74.88 at the interbank forex market, but lost ground and settled for the day at 75.02 against US dollar, down 9 paise over its last close. It had settled at 74.93 against the US dollar on Tuesday.
🍒 Gold at record high of Rs 49,122 per 10 gram, silver jumps Rs 1,270 per kg : Gold prices gained Rs 678 to Rs 49,122 per 10 gram, a record high in the Mumbai bullion market on rupee depreciation against the dollar and strong global cues. The precious metal prices jumped to the highest level since September 2011 on increasing coronavirus cases globally and hopes of more stimulus package actions to combat the economic blow. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,842, Rs 44,996 and Rs 49,122 plus 3 percent GST, respectively. Silver prices rose Rs 1,270 to Rs 50,140 per kg from its closing on July 7.
🍒 Shares of Central Bank of India in Stock Market : 82% of moneycontrol users recommend buying Central Bank of India shares. In BSE shares closed at Rs.17.60 against Prev Close Rs.17.45. In NSE, shares closed at Rs.17.60 against Prev Close Rs.17.40..
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