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Today's Banking / Financial News at a Glance 25.11.2020

 🙏 Good Morning All.... 

☕ 25.11.2020: Today's Banking / Financial News at a Glance

🍒 SBI raises ₹2,500 cr from Basel-lll compliant bonds to fund business growth : State Bank of India (SBI) on Tuesday said it has raised ₹2,500 crore from bonds to fund business growth. The committee of directors for capital raising at its meeting held on Tuesday accorded approval to allot 25,000 Basel-lll compliant non-convertible, taxable, perpetual, subordinated, unsecured, fully paid-up debt instruments in the nature of debentures qualifying as AT 1 capital of the bank to the subscribers, it said in a regulatory filing.The bonds of face value of ₹10 lakh each, at par, bearing a coupon of 7.73% per annum payable annually with call option after five years and on anniversary dates thereafter, aggregates to Rs, 2,500 crore, it said.Under call option, the bond issuer can call back the bonds before the maturity date by paying back the principal amount to investors.The Basel-III capital regulations are globally accepted banking norms under which banks need to improve and strengthen their capital planning processes.Basel-III norms are being implemented in phases since 2013 by Indian banks to mitigate concerns on potential stress on asset quality and consequential impact on performance and profitability of banks.Last month, SBI had raised ₹5,000 crore by issuing Basel-III compliant bonds. - Live Mint.

🍒 PNB customers complain TDS deduction on every cash withdrawal : Several depositors at Punjab National Bank were at their wits' end as the bank had deducted TDS (tax deducted at source) on every cash withdrawal they did. The incidents happened at the erstwhile United Bank of India branches, which saw complaints pouring right from the start of the banking hours Tuesday. "The bizarre development came to my notice last night," said Abhijit Sen, a resident of Salt Lake who withdrew Rs 30,000 from a branch in his locality on Monday morning. He got a message later in the day saying the bank deducted Rs 6,000 as TDS! ET found out that customers of several other branches (formerly UBI branches) faced a similar plight.  "This happened due to wrong data entry when data cleaning was taking place," a senior PNB executive said. "There is no question of panic. All amounts will be refunded within 24 hours," he said. - economic times

🍒 Union Bank of India proposes to raise ₹1,000 crore from bonds : The Union Bank of India on Tuesday said it will raise up to ₹1,000 crore from bonds to fund business growth. "The bank is issuing Basel III compliant Tier II bonds in the nature of debentures aggregate issue size not exceeding ₹1,000 crore, with a base issue size of up to ₹500 crore and a Green Shoe option to retain over subscription up to ₹500 crore," the lender said in a BSE filing. The bonds of face value of ₹10 lakh each, bearing a coupon of 7.18% per annum, will have maturity of 15 years, it said. The bonds have fixed allotment date of 26 November, 2020. The Basel-III capital regulations are globally accepted banking norms under which banks need to improve and strengthen their capital planning processes. The state-owned bank reported a net profit at ₹517 crore for the quarter ended September, against a net loss of ₹1,194 crore in the year-ago period. - Live Mint

🍒 Central bank rejects Muthoot Finance proposal to acquire IDBI MF : Muthoot Finance on Tuesday said its plan to acquire IDBI Mutual Fund was not accepted by Reserve Bank of India. “We would like to inform that Muthoot Finance Limited’s request for a no objection certificate was not acceded to by the Reserve Bank of India on the ground that, ‘the activity of sponsoring a Mutual Fund or owning an Asset Management Company is not in consonance with the activity of an operating NBFC’,” it said in a regulatory filing.  It has accordingly informed SEBI through a letter on November 23 that it would be unable to proceed with the proposed transaction. Muthoot Finance had, in November last year, entered into a share purchase agreement with IDBI Bank, IDBI Capital Markets and Securities, IDBI Asset Management and IDBI MF Trustee Company to acquire 100 per cent equity shares of IDBI Asset Management and IDBI MF Trustee Company. The deal was estimated at ₹215 crore and would have paved the way for Muthoot’s entry into mutual fund asset management space. - Business Line

🍒 AIBEA to join trade unions in nationwide general strike on Nov 26 : The All India Bank Employees' Association ( AIBEA) on Tuesday said it would be joining the one-day nationwide strike on November 26 called by central trade unions to protest against the government's anti-labour policies. Ten central trade unions, except Bharatiya Mazdoor Sangh, will observe a nationwide general strike on November 26. "Lok Sabha in its recently held session has passed three new labour enactments by dismantling existing 27 enactments in the name of 'Ease of Business', which are purely in the interest of corporates. In the process, 75 per cent of workers are being pushed out of the orbits of labour laws since they will have no legal protection under the new enactment," the AIBEA said in a release. - economic times

🍒 AIBEA threatens strike over RBI panel’s idea to give banking license to corporates : The All India Bank Employees Association (AIBEA) has termed a Reserve Bank of India (RBI) internal panel’s recommendation to give banking license to corporate houses as “most retrograde and unwarranted”.  The Association threatened to unleash countrywide agitation and organise repeated strikes if the Government and RBI allow corporate houses to take over banks. - Business Line

🍒 Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P :  Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is "masking" problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of Non-performing loans (NPL) to total loans declined consistently so far this year.  "While financial institutions performed better than we expected in the second quarter, much of this is due to the six-month loan moratorium, as well as a Supreme Court ruling barring banks from classifying any borrower as a non performing asset," S&P Global Ratings credit analyst Deepali Seth-Chhabria said. - economic times

🍒 Half of NBFCs which qualify for bank licence are corporate-owned : Around half of the finance companies with assets of over Rs 50,000 crore that meet the RBI’s size criteria to get a bank licence are part of corporate groups, while two are already part of banking groups. Not many standalone non-banking financial companies (NBFCs) are likely to qualify for the bank licence norms. The RBI’s internal working group in its report had said that well-run NBFCs, with an asset size of above Rs 50,000 crore, including those which are owned by a corporate house, may be considered for conversion into banks. Among the top 10 finance companies in terms of assets under management, Aditya Birla Capital, Bajaj Finance, L&T Finance Holdings, Mahindra Finance, Piramal, and Tata Capital are part of a corporate group. Of the remaining NBFCs, HDFC is already a promoter of a bank, while the Life Insurance Corporation, promoter of LIC Housing Finance, owns IDBI Bank. PNB Housing Finance, another large NBFC, is owned by Punjab National Bank. The RBI has said that companies have to wait till laws are changed to give the central bank powers to supervise corporate groups before giving them a bank licence. - economic times

🍒 RBI’s supervisory purview may not enthuse corporates : The possibility of their other businesses coming under the Reserve Bank of India’s (RBI) supervisory purview may hold back large corporate/industrial houses from applying for a bank license, say experts. An RBI internal working group recently recommended that large corporate/industrial houses may be allowed as promoters of banks. They will be allowed entry into the banking space only after necessary amendments to the Banking Regulations Act, 1949.  These amendments will deal with connected lending and exposures between the banks and other financial and non-financial group entities; and strengthening of the supervisory mechanism for large conglomerates, including consolidated supervision. - Business Line 

🍒 Mercedes-Benz India, SBI in a retail marketing pact : In a first-of-its kind collaboration, the country’s top luxury car maker Mercedes-Benz India has entered into a retail marketing tie-up with State Bank of India (SBI), to access latter’s HNI (high net-worth individual) customer base for selling its premium cars. Mercedes-Benz’s collaboration with the SBI is a unique initiative to generate enquiries as well as provide online booking facility coupled with attractive benefits through the bank’s extensive national penetration to reach potential customers. SBI and Mercedes-Benz will promote the partnership over online and offline channels, including across branches and dealerships in order to reach the maximum number of customers. SBI’s HNI customers in all 17 circles pan India, will have access to the collaboration with Mercedes-Benz. - Business Line

🍒 AU Small Finance Bank sells Aavas Financiers' shares worth Rs 530 crore : AU Small Finance Bank (AU SFB) sold 3.5 million shares of Aavas Financiers on the BSE on Monday, according to bulk deals' data. The value of these shares, at Rs 1,515.2 apiece is Rs 530.3 crore, as per data from the exchange. Part of this, worth Rs 236.4 crore, was bought by Nomura India Investment Fund Mother Fund (Rs 136.4 crore) and SBI Life Insurance Company (Rs 100 crore). The stock of Aavas Financiers was up 2.3 per cent at Rs 1,527.05 on Monday, while AU SFB closed 1.22 per cent lower at Rs 869.20. According to exchange data, AU SFB held 3.582 million shares in Aavas Financiers as on end September 2020. - Business Standard

🍒 Good performance masks problem assets for Indian banks, says S&P : The forbearance – moratorium on repayments for six months-- is masking problem assets for Indian banks arising out of Covid-19. Financial institutions, including banks, are likely to have trouble maintaining momentum after the proportion of non-performing loans (NPL) to total loans declined consistently in 2020, according to Standard and Poor’s (S&P). Rating agency S&P, in a statement, said while financial institutions performed better than we expected in the second quarter, much of this is due to the six-month loan moratorium, as well as a Supreme Court ruling barring banks from classifying any borrower as a non-performing asset. It released a report "The Stress Fractures In Indian Financial Institutions." The loan repayment moratorium ended on August 31, 2020. The non-performing loans in the banking sector will likely shoot up to 10-11 per cent of gross loans in the next 12-18 months, from 8 per cent on June 30, 2020. - Business Line

🍒 RBI rejects Muthoot Finance's plan to buy IDBI AMC over lack of consonance : The Reserve Bank of India has rejected Kerala-based Muthoot Finance's proposal to acquire IDBI AMC. Muthoot Finance today said that its request for a no-objection certificate was not acceded to by RBI on the ground that, “the activity of sponsoring a Mutual Fund or owning an AMC is not in consonance with the activity of an operating NBFC. Consequently, Muthoot informed Sebi that it is unable to proceed with the proposed transaction. Muthoot Finance Limited (MFIN), a Kerala-based gold loan NBFC, had signed a share purchase agreement to acquire IDBI Asset Management Limited and IDBI MF Trustee Company Limited in November 2019, for a consideration of around Rs 215 crore. Through this acquisition MFIN was planning to enter the Mutual Fund Asset Management space. - Business Standard

🍒 Retail loans pull credit growth back from brink : Outstanding non-food credit grew for the first time on a year-to-date basis in FY21, aided by the demand for retail loans during the festive season, according to data released by the Reserve Bank of India (RBI). In the fortnight ended 6 November, outstanding non-food credit stood at ₹103.2 trillion, slightly more than ₹103.1 trillion reported by banks as on 27 March. On an absolute basis, outstanding credit has grown ₹5,804 crore. Credit data is released by the central bank every fortnight, with details on outstanding bank loans, net of repayments made by borrowers. Credit growth is still languishing in the 5-6% range on a year-on-year (y-o-y) basis, but the festive season offered some respite when people spent more than earlier, bankers said. - Live Mint

🍒 Muthoot Finance ties up with Bajaj Allianz : Muthoot Finance said on Monday that it has has tied up with Bajaj Allianz General Insurance to provide insurance on gold jewellery as part of their new initiative. Known as ‘Muthoot Gold Shield’,the policy provides insurance coverage of gold jewellery for individuals at the time of closure of gold loan and release of gold ornaments. It will provide insurance coverage to the customers of Muthoot Finance as a loyalty product. The policy covers burglary, robbery, theft from insured person’s home,loss-intransit and 13 other disasters - financial express

🍒 Taking banking services to last mile: Women self-help groups driving financial inclusion in India : India’s policy towards financial inclusion as a propeller of economic growth is at the forefront of the Government’s considerations for some time now. In January 2020, the Reserve Bank of India published the National Strategy for Financial Inclusion 2019-2024 in a bid to integrate the country’s existing 190 million unbanked population into the financial mainstream. As part of the strategic objectives identified, the RBI laid out certain milestones, the foremost of which is to provide banking access to every village. Easier said than done for a country as vast and populous as India. To achieve this objective, the more effective model that has been identified and being adopted is the Banking or Business Correspondent model. While this model’s merit was acknowledged way back in 2007, its complex economics and logistics require the support of the Federal Government, the Banking System, and the States.  While India’s banking sector is witnessing a paradigm shift led by technological evolution, infrastructure remains a veritable constraint, which limits access to financial services for poor people living in remote areas. - financial express

🍒 NBFCs cautious on RBI working group proposals on banking entry : Non-banking finance companies (NBFCs) are highly cautious in responding to the recent proposals from an RBI-working group on the conversion of large NBFCs into banks. One of the recommendations of the RBI working group was that well-run large NBFCs, with an asset size of Rs50,000 crore and above, including those which are owned by a corporate house, may be considered for conversion into banks. This should be subject to completion of 10 years of operations and meeting due diligence criteria and compliance with additional conditions specified in this regard, the working group said. To be sure, these are suggestions. The regulator will take a final call based on the report proposals. “There are already on-tap licensing norms existing in India,” said George Alexander Muthoot, Managing Director of Gold-loan NBFC, Muthoot Finance. “The RBI working group is only giving some modifications to the existing guidelines. And these are only suggestions. We will study when the final guidelines come,” said Muthoot. - moneycontrol.

🍒 Muthoottu Mini Financiers targets ₹1,000-cr business this fiscal : Muthoottu Mini Financiers Ltd, the Kerala-based NBFC, is aiming to achieve a business growth of ₹1,000 crore in the current fiscal through its expansion and restructuring strategy.  The company has opened a zonal office in Vijayawada and 13 new branches in Andhra Pradesh as part of its expansion plan. The new branches were inaugurated digitally by Mathew Muthoottu, Managing Director of the company, from its Kochi head office. With the inclusion of these new branches and the zonal office, the company will now have 806 branches across 10 States. The company also plans to spread its network to Gujarat, Maharashtra, Delhi, Haryana, Telengana, and a few more branches in Andhra Pradesh, in the coming years, he said. - Business Line

🍒 Gold price plunges by Rs 1,049 to Rs 48,569 per 10 gram; silver price tumbles by Rs 1,588 to Rs 59,301 per kg : Gold prices plunged by Rs 1,049 to Rs 48,569 per 10 gram in the national capital on Tuesday following weak global cues and rupee appreciation, according to HDFC Securities. In the previous trade, the precious metal had closed at Rs 49,618 per 10 gram. Silver also faced selling pressure as it tumbled by Rs 1,588 to Rs 59,301 per kg from Rs 60,889 per kg in the previous trade.  In the international market, gold was quoting lower at USD 1,830 per ounce and silver was flat at USD 23.42 per ounce. - moneycontrol.

🍒 Rupee settles 10 paise higher at 74.01 against US dollar : The rupee appreciated by 10 paise to close at 74.01 against the US dollar on Tuesday on sustained foreign fund inflows and positive development over coronavirus vaccine. Traders said investor risk sentiment improved amid growing hopes of an early rollout and efficacy of COVID-19 vaccines. Besides, strong domestic equities, sustained foreign fund inflows and weak American currency also supported the local unit.

🍒 NSE declares Karvy Stock Broking a defaulter; expels from membership : The National Stock Exchange (NSE) has declared Karvy Stock Broking as a defaulter for non-compliance with the regulatory provisions of the bourse. In addition, Karvy Stock Broking has been expelled from the membership of the exchange, the NSE said in a circular. The move, effective from November 23, was taken as the broker failed to comply with NSE’s guidelines, it added. 

🍒 Lakshmi Vilas Bank stock tanks over 53 per cent in 6 days : Shares of Lakshmi Vilas Bank continued to face selling pressure for the sixth consecutive day and have tanked over 53 per cent during the period amid negative reports around the company. On Tuesday, the stock plunged 9.88 per cent to Rs 7.30 -- its lower circuit limit as well as one year low -- on BSE. At NSE, it plummeted 9.88 per cent to Rs 7.30 -- its lowest trading permissible limit for the day. Since last Tuesday (November 17), the stock has tanked 53.35 per cent on the BSE.

🍒 Bank stocks drive Nifty above 13,000; Sensex at a new high : The benchmark indices ended at record highs on November 24, with Nifty going past 13,000 for the first time. At the close, the Sensex was up 445.87 points, or 1.01%, at 44,523.02, and the Nifty ended 128.70 points, or 1%, higher at 13,055.20..

🙏 “All the Best… Have a Good n safe day.

Today's Banking / Financial News at a Glance 09.11.2020

 🙏 Good Morning All...

☕ 09.11.2020 : Today's Banking / Financial News at a Glance

🍒 Fresh investment demand from corporates is some time away, says SBI Chairman Dinesh Kumar Khara : Although corporates have started utilising their working capital limits on the back of a very clear trend for demand revival in the economy, any fresh investment demand from corporates is some time away, State Bank of India chairman Dinesh Kumar Khara said on Saturday. “My sense is from the next financial year we (economy) will be nearer to the normal,” Khara said addressing the annual general meeting of The Bengal Chamber of Commerce and Industry here. He said in October all the high-frequency indicators were portraying a very positive scenario. “I think partly it is also attributed to the fact that there is a lot of Covid fatigue. Everybody would like to get into the mainstream economic activity as soon as possible. That is also one of the reasons for the kind of enthusiasm seen in the economy. Earlier, we have felt that it is pent up demand, which is there from the consumers. But, I think now the way indicators are showing, there is a very clear trend for the demands,” the SBI chief said through video-conferencing.He said in October all the high-frequency indicators were portraying a very positive scenario. “I think partly it is also attributed to the fact that there is a lot of Covid fatigue. Everybody would like to get into the mainstream economic activity as soon as possible. That is also one of the reasons for the kind of enthusiasm seen in the economy. Earlier, we have felt that it is pent up demand, which is there from the consumers. But, I think now the way indicators are showing, there is a very clear trend for the demands,” the SBI chief said through video-conferencing. - financial express

🍒 Indian Overseas Bank seeks about Rs 1,000 cr capital support from government : Indian Overseas Bank (IOB) has sought a capital support of about Rs 1,000 crore from the government in order to create buffer for any exigency, a top official of the bank said. The state-owned lender, which has posted profit for the last three consecutive quarters, expects to continue the trend in the remaining part of the current fiscal year with increased focus on recovery and business pick up.For September quarter, the bank posted a profit of Rs 148 crore as compared to a net loss of Rs 2,254 crore in the same period a year ago. Net profit in the quarter grew 22.3 per cent from Rs 121 crore in April-June."We expect the trend to continue and book profit quarter after quarter aided by prospects of better recovery. There will be no question of going back," IOB Managing Director P P Sengupta told PTI.Asked about capital needs, he said, "we want our profit to strengthen our capital. That is our internal aim and we are marching towards that goal. As a prudent measure, we have sought some capital support, let us see how much we get. We want to keep capital as buffer for any exigency or contingency." - Economic Times

🍒 Lakshmi Vilas Bank makes its stance clear to Clix group on Religare deposit case :  Lakshmi Vilas Bank has reached out to the Clix Group with “all the documents” on its contingent liability related to Religare Finvest deposits, instruments the bank had set off against unpaid loans given to private firms of the erstwhile Religare promoters Malvinder and Shivinder Singh. Clix wanted Lakshi Vilas to make full provisions against the liability amounting to Rs 794 crore ahead of the proposed merger. The bank holds a contingent provision of Rs 200 crore, which is not included in tier I/tier II capital calculations. Hence, Clix wanted it to provide the balance Rs 594 crore. “We have submitted all the documents justifying our stance as to why making full provision is not necessary. We are the rightful owner of the money,” a senior bank official told ET. The bank has taken legal opinion on the matter and believes the appropriation is lawful and tenable, requiring no further provisions. - economic times

🍒 Less than half of ₹8,000-crore Covid claims filed so far have been settled : Seventy-seven year old Asesh Prasad Ghosh died after a three-day battle with Covid at one of the premier city-based private hospitals. His total bill for three days added up to nearly ₹3 lakh, with the ICU room charges and ventilator alone costing his family a whopping ₹88,000 a day. Luckily, he was under his son’s corporate health insurance cover and got back nearly 90 per cent of the total claims. But having an insurance policy may not be enough to ensure that you get fully covered, and there have been instances where patients have received only 50-70 per cent of their claims. Insurance companies on their part have clarified that they would only be able to honour claims to the extent that they are “reasonable and customary”, indicating that they may not be able to honour claims that are “unreasonable” arising primarily due to overbilling by hospitals. - Business Line

🍒 Closely monitoring inventory, asking builders to start selling: PNB Housing : With economic activity gradually improving post lockdown, PNB Housing Finance is closely monitoring the inventory levels of builders and asking them to start selling as demand for home loans is nearly getting back to normal, its MD and CEO Hardayal Prasad said. "Economic activity is still at a low ebb, but it has started picking up. The economic activity in certain areas is obviously returning back to pre-Covid days, I would say. When we talk to the builders and our sales team and people who are on the ground, who go and talk to the consumers and prospective borrowers, there are green shoots that we are seeing everywhere," Prasad told PTI in an interview. "The kind of enquiries that we used to get at one point of time, we are already almost at about 80-85 per cent of the pre-Covid level," he added. - Business Standard

🍒 Early-stage VC firm Inflexor aims to close Rs 500-crore fund by March : Early-stage venture capital firm Inflexor Ventures aims to close its Rs 500-crore fund by March next year, and the proceeds will be invested in about 25 companies over the next few years, a top executive said. Inflexor Technology Fund, which was set up by the founders of the erstwhile Parampara Fund, had made the first close of the Rs 500 crore fund in August this year, at Rs 230 crore.Speaking to PTI, Inflexor Ventures Managing Partner Venkat Vallabhaneni said the latest fund is focussed on technologies that are making a deep impact on the society. "Mostly, we invest in early-stage companies that are making some revenue and have customers. Generally, we enter with a Rs 5-7 crore cheque and after that we stay with the company through their growth," he said adding that there is a follow-on funding of up to Rs 15-20 crore based on performance, growth and capital requirements. - - Business Standard'

🍒 M-cap of nine of top-10 most valued firms zooms over Rs 2.30 lakh crore : The combined market valuation of nine of the top-10 most valued companies zoomed by Rs 2,30,219.82 crore last week, with HDFC twins leading the pack. During the last week, Sensex soared 2,278.99 points or 5.75 per cent.Barring Reliance Industries Ltd, the country''s most valued firm, all nine companies witnessed rise in their market valuation for the trading week closed on Friday. The market capitalisation of HDFC Bank jumped by Rs 68,430.18 crore to Rs 7,19,948.29 crore, emerging as the biggest gainer among the most valued companies. - financial express

🍒 CII writes to finance ministry, suggests ECLGS scheme for stressed sectors : The Confederation of Indian Industry (CII) has written to the finance ministry, urging to explore an Emergency Loan Credit Guarantee Scheme to support the stressed sectors and argued that prolonged strain on employment-intensive sectors could impede economic recovery. The industry chamber on Sunday said it has recommended this intervention to assist the stressed segments, primarily in the service sectors like hospitality, tourism aviation and retail, as this would not have any impact on the fiscal deficit this year but will provide the much needed liquidity to these sectors which employ a large number of people. "CII appreciates the revenue constraints faced by the government and its impact on the widening fiscal deficit. This intervention, similar to what has been done for the MSMEs will be a win-win for all," Chandrajit Banerjee, Director General CII, said. - economic times.

Have a Good day. All the Best.

Today's Banking / Financial News at a Glance 08.11.2020

 🙏 Good Morning All...

☕08.11.2020: Today's Banking / Financial News at a Glance

🍒 Economy expected to bounce back from next fiscal: SBI chairman : The country's economy, which has shown resilience to come out from a downturn caused by the COVID-19 pandemic, is expected to bounce back from the next fiscal, State Bank of India chairman Dinesh Kumar Khara said on Saturday.  There will be a "paradigm shift" which will lead to a more matured economy" with economic players learning to contain costs, he said. Addressing the virtual annual general meeting of Bengal Chamber of Commerce and Industry, Khara said, "The economy is expected to bounce back from the next fiscal starting from April 2021. The next normal will see a paradigm shift and some of them will be permanent." Khara said the economy had shown "resilience to come out from the downturn" and some positive traction was witnessed towards the end of the first quarter of the current fiscal. - Economic times

🍒 Canara Bank cuts MCLRs by 0.05-0.15 pc for various tenors from Nov 7 : State-owned Canara Bank on Friday said it has cut the marginal cost of fund based lending rates (MCLR) by 0.05-0.15 per cent with effect from November 7. The one-year MCLR -- the benchmark for most of the consumer loans -- has been reduced by 0.05 per cent to 7.35 per cent from 7.40 per cent currently, Canara Bank said in a regulatory filing.The six-month MCLR too has been lowered by a similar quantum to 7.30 per cent. Among others, the overnight and one-month MCLRs are cut by 0.15 per cent each to 6.80 per cent, while the three-month MCLR stands revised to 6.95 per cent, against 7.10 per cent. The new rates will come to effect from November 7, 2020, Canara Bank said. On Thursday, Indian Overseas Bank had announced to cut the one, two and three-year MCLRs by 0.05 per cent each to 7.45 per cent. The overnight and one-month MCLR will be priced at 6.85 per cent each from 7.05 per cent and 7.35 per cent, respectively, at present. The new rates will come to effect from November 10, 2020, Indian Overseas Bank had said. -  Business Line

🍒 Bank of Maharashtra cuts Repo Linked Lending Rate to 6.90 per cent : Bank of Maharashtra (BoM) has cut its Repo Linked Lending Rate (RLLR) to 6.90 per cent from 7.05 per cent earlier. The Pune-headquartered public sector bank, in a statement, said customers availing home loan, car loan, education loan, personal loan along with MSME (micro, small and medium enterprise) loan products can benefit following the 15 basis points RLLR cut, with effect from November 7. - Business Line

🍒 Ujjivan Small Finance Bank Q2 profit up marginally at Rs 96 cr : Ujjivan Small Finance Bank (SFB) on Saturday reported a marginal rise in net profit at Rs 96 crore for September quarter as provisions spiked.The bank posted a net profit of Rs 93 crore in the same quarter a year ago. In June quarter, the profit was Rs 55 crore.  Total income during July-September 2020-21 increased to Rs 818.01 crore from Rs 729.36 crore in the year-ago period on the back of healthy interest income. Core income or the interest income increased 15.2 per cent to Rs 753.61 crore from Rs 654.33 crore in the same quarter of 2019-20. Net interest income grew 21 per cent to Rs 470 crore. - Business Line

🍒 Significant progress in proposed merger with Clix Group: Lakshmi Vilas Bank :  Lakshmi Vilas Bank said that it has made "significant progress" with Clix Group for the proposed merger of the two. The bank also said that it has completed a minor incremental due diligence this week as requested by Clix Group. "Now, the respective sides are in the process of a workable and mutually acceptable framework," the bank announced Saturday. Meanwhile, the ailing private sector lender has seen its capital adequacy ratio (CAR) turning negative (-2.85%) for the first time while its tier 1 capital has been in the negative zone since March. Tier 1 capital was a negative 4.85% at the end of September against the minimum requirement of 8.875%. If the proposed merger of Clix Capital Service and Clix Finance India into the bank goes through, the issue of capital would be addressed. - Economic Times

🍒 Lakshmi Vilas Bank posts net loss of Rs 396.99 crore for Q2FY21 : The Lakshmi Vilas Bank on November 7 posted a net loss of Rs 396.99 crore during the quarter ending September 2020. The bank extended its net loss of Rs 357.17 crore from the second quarter of the previous financial year. Net interest margin shrunk to 1.37 percent for Q2FY21 against 1.47 percent for same period the previous year, the bank said in an exchange filing. Operating loss narrowed to Rs 5.66 crore against Rs 40.37 crore for Q2 the previous year. - Moneycontrol.

🍒 World Bank cautions against fake credit, debit cards with its name, logo : The World Bank on Friday cautioned the public against fraudulent issuance of debit and credit cards carrying its name and logo. The advisory came after its attention was drawn to such fraudulent issuance of debit/credit cards in India, according to the multilateral lending agency. "The World Bank Group does not issue debit/credit cards. The Bank Group has no involvement with individuals/groups who have issued these fake cards, and would like to caution the public to be wary of such fraudulent practices," it said in the advisory. "Please feel free to visit the World Bank's website www.worldbank.org to clarify about World Bank's programs and policies," it added. - Business Standard

🍒 Over 11 lakh MSMEs registered on Udyam online system since July: Govt : Over 11 lakh MSMEs have registered on the new online system of Udyam Registration launched in July, the government said on Saturday. Out of these, 3.72 lakh enterprises have registered under manufacturing category whereas 6.31 lakh enterprises under service sector. The share of micro enterprises is 93.17 per cent whereas small and medium enterprises are 5.62 per cent and 1.21 per cent, respectively. - moneycontrol.

🍒 Huge deviation in Bank Nifty and Nifty likely to narrow by December-end : Bank Nifty continues to act as a trailblazer, rallying by 12 percent during the week. The recent structure suggests that it has more room on the upside with the presence of a series of bullish anchor columns and positive follow-through. We expect, the leadership index to retrace 2/3 (i.e. 27,170) of its January-March 2020 decline. Ratio of Bank Nifty/Nifty since October month has seen the formation of bullish anchor columns followed with positive follow-through on P&F charts, implying strength & outperformance of banks against the benchmark Nifty. As per our pattern projection, the ratio can move higher towards 2.29 levels. Positive crossover is observed in XO zone. We believe a huge deviation between BankNifty and Nifty (in play for the most part of 2020), is likely to narrow down by year-end. Comparative out-performance and improved internal structure of the Indian markets are likely to attract positive traction. - Moneycontrol..

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Today's Banking / Financial News at a Glance

 Good Morning All....

☕ 05.11.2020: Today's Banking / Financial News at a Glance

🍒 SBI Q2 results: Profit surges 52% YoY to Rs 4,574 crore, beats Street estimates : Top lender State Bank of India (SBI) reported a 51.9 per cent year-on-year (YoY) rise in net profit for the quarter ended September at Rs 4,574.16 crore. The bank had reported a net profit of Rs 3,011.73 crore in the same quarter a year ago. An ET Now poll had projected the profit figure at Rs 4,400 crore.Its total income came in at Rs 75,341.80 crore, up 3.42 per cent from Rs 72,850.78 crore a year ago. The bank’s net interest income (NII) for the quarter rose 14.56 per cent to Rs 28,181 crore, while net interest margins (NIMs) came in at 3.34 per cent, compared with 3.22 per cent a year ago.It earned interest to the tune of Rs 66,814.11 crore compared with Rs 64,312.39 crore a year ago.The bank's gross NPAs came in at 5.28 per cent against 5.44 per cent in the preceding quarter and 7.19 per cent in the same quarter a year ago. Net NPAs for the quarter stood at 1.59 per cent against 1.86 per cent in the June quarter and 2.79 per cent a year ago. - economic times

🍒 SBI Q2: Improvement in disbursements, strong deposit traction are positive signs ; Significant improvement in retail loan disbursements, ramp-up in provisions, good traction in deposits, and strong capital ratios (about ₹20,000-crore capital was raised during the September quarter) are heartening trends from State Bank of India’s latest September quarter results. However, actual slippages (if not for the Supreme Court order on asset classification standstill) for the September quarter, persisting stress in the bank’s agriculture loan book, expected restructuring, slippages in the second half, and a sizeable SMA1 (payments overdue by 31-60 days) and SMA2 (overdue by 61-90 days) book suggest more pain ahead for the bank’s asset quality. - Business Line

🍒 SBI warns bad debt can worsen even as its profit beats estimates : State Bank of India warned that the ongoing coronavirus pandemic would lead to more bad debt, even as the nation’s largest lender reported better-than-expected profit after setting aside fewer provisions for problem loans. The bank’s net income jumped 52% to 45.7 billion rupees ($610 million) for the three months to September, beating the 36.9 billion rupee average estimate of 11 analysts surveyed by Bloomberg. While its bad loan ratio fell slightly to 5.28%, from 5.44% at the end of June, SBI expects a further 200 billion rupees of loans to sour over the next six months as the pandemic continues to impacts borrowers. This would result in 600 billion rupees of problem loans, or 2.5% of its loan book, at the end of March 2021. “Going forward we might see some kind of stress in small and medium enterprises, and in the agriculture sector,” Chairman Dinesh Khara said during a post-earnings call. - Business Standard

🍒 Bank of Baroda rolls out well-being programme for its employees : Bank of Baroda (BoB) on Wednesday said it has introduced an ‘Employee Assistance Program’ to help its employees to deal with their personal problems and professional issues through psychological counselling and consulting. The public sector bank, in a statement, said it has taken the first step in addressing the issues and upkeeping employees’ emotional well-being by introducing this program initially as a pilot project in Mumbai Zone and its corporate office. - Business Line

🍒 RBI Guv Shaktikanta Das chaired SAARC FINANCE Governors’ Group, member nations discussed current initiatives :  Reserve Bank of India Governor Shaktikanta Das and other central bank governors in the South East Asian nations vowed to work in tandem to fight against the Coronavirus pandemic. At the 40th meeting of the SAARC FINANCE Governors’ Group, held Wednesday, they reaffirmed their commitment to continued co-operation and sharing of central bank experiences.Das chaired the meeting and highlighted the close partnership and co-operation among the member countries. The group took stock of the macroeconomic situation in the SAARC region; discussed the current initiatives by the member countries. - economic times

🍒 RBI imposes penalty totalling Rs 15 lakh on two co-operative banks : The RBI on Wednesday said it has imposed penalty totalling Rs 15 lakh on two co-operative banks, including Millath Co-operative Bank, Davangere (Karnataka) for non-compliance with directions issued by it. A penalty of Rs 10 lakh has been imposed on Millath Co-operative Bank for "non-adherence/violation of all inclusive directions and other directions imposed on the bank", the Reserve Bank of India (RBI) said in a statement. In another statement, it said a monetary penalty of Rs 5 lakh has been imposed on The Thiruvaikuntam Co-operative Urban Bank Limited, Thoothukudi (Tamil Nadu) for contravention of the directions issued by RBI on prohibition of loans and advances to directors. - economic times

🍒 Interest on interest waiver: Banks start crediting accounts; FinMin issues additional FAQs : Banks have started refunding borrowers the compound interest charged on specified loan accounts during the moratorium period. Last week, the Reserve Bank of India (RBI) had asked all lending institutions, including non-banking financial companies, to ensure that the scheme of waiver of interest on interest for loans up to Rs 2 crore for the six-month moratorium period is implemented by November 5. "Dear customer credited COVID-19 Relief ex-gratia of ... on November 3 to your account," a message from a public sector bank to a customer said.- economic times

🍒 SBI Card along with Paytm launch credit cards : SBI Cards and Payment Services (SBI Card) on Wednesday said it has launched credit cards in partnership with the digital payment platform Paytm. Available in two variants, Paytm SBI Card and Paytm SBI Card SELECT, the product has been launched on the Visa platform. This launch is in line with SBI Card's endeavour to offer customers tailored products which bring maximum value in line with spending needs and to encourage digital forms of payments for a safe and enhanced customer experience, SBI Card said in a release.- economic times

🍒 Yes Bank case: High Court rejects bail pleas of Wadhawans : The Bombay High Court on Wednesday rejected bail applications of Kapil and Dheeraj Wadhawan, promoters of Dewan Housing Finance Limited (DHFL), in the Yes Bank fraud case, holding that procedures were followed when a chargesheet was filed. Justice S V Kotwal rejected the arguments made by the Wadhawan brothers' lawyers, senior advocates Amit Desai and A M Singhvi, that the CBI failed to follow procedure while filing a chargesheet in the case. The Wadhawans had sought 'default bail', claiming that the Central Bureau of Investigation, the prosecuting agency, had not complied with the Code of Criminal Procedure (CrPC) while filing a chargesheet in a special CBI court here. A default bail is given when procedural aspects, such as filing chargesheet within the stipulated period, are not followed. - economic times

🍒 ‘Shriram Life Insurance to develop credit appraisal procedure’ : To maintain the quality of its credit portfolio amid falling interest rates and market volatility, Shriram Life Insurance is developing a credit appraisal procedure. “We are doing quite well in terms of assets under management and overall size of the book. We have focussed very much on the quality of the credit portfolio, and are also developing a credit appraisal procedure so that we scan our portfolio on a regular basis,” said Ajit Banerjee, Chief Investment Officer, Shriram Life Insurance. - Business Line

🍒 I-T refunds worth Rs 1.29 lakh cr issued to 39.49 lakh taxpayers : The Income Tax department has issued refunds worth over Rs 1.29 lakh crore to more than 39 lakh taxpayers so far this fiscal. This includes Personal Income Tax (PIT) refunds amounting to Rs 34,820 crore and corporate tax refunds aggregating to Rs 94,370 crore during this period. "CBDT issues refunds of over Rs 1,29,190 crore to more than 39.49 lakh taxpayers between 1st April, 2020 to 3rd November, 2020. Income tax refunds of Rs 34,820 crore have been issued in 37,55,428 cases & corporate tax refunds of Rs 94,370 crore have been issued in 1,93,059 cases,” Income Tax department said in a tweet.  - economic times

🍒 46% people borrowed money to run their households during Covid times, reveals Home Credit India research : With job losses and pay cuts across industries during the Covid-19 pandemic, the lower middle-income group has been affected severely, says the findings of research from Home Credit India, a local arm of the international consumer finance provider with operations spanning over Europe and Asia. Home Credit India conducted a research across 7 cities to understand the borrowing patterns of people during the Covid lockdown. The pandemic has led to a shift in perspective towards loans and borrowing preferences, the research said. - Business Line

🍒 Banks offer competitive rates to woo home buyers : Competitive home loan rates by banks could further boost the demand for home loans. Private sector lender Kotak Mahindra Bank, which is offering one of the lowest interest rates, is keen on acquiring good quality customers in the home loan segment. “Our cost of funds has gone down apart from the policy rates. We have very competitive cost of funds. Also, home loan is one of the best asset categories. It is a relatively safer, long-term product,” said Shanti Ekambaram, Group President, Consumer Banking, Kotak Mahindra Bank. Speaking to BusinessLine, she said there is a lot of demand across the spectrum as “deals being offered by the eco-system as a whole are very interesting”. “We are seeing a lot of demand across the top five to six metros,” she said. - Business Line

🍒 Rs 1,800-cr fund infusion in pipeline; to be used to repay high-cost borrowings: PNB Housing CEO : With about Rs 1,800 crore equity fund raise in the pipeline, PNB Housing Finance plans to repay its high-cost borrowings and will ask its lenders to sweeten the lending rates as the firm is working consistently to improve profitability parameters besides enhancing the value proposition for the investors, its MD and CEO Hardayal Prasad said. PNB Housing Finance’s board has okayed to raise up to Rs 1,800 crore through a preferential or rights of shares. Of this, promoter Punjab National Bank (PNB) has already given its nod to infuse Rs 600 crore. Prasad said there is a large number of investors, of whom almost 84-85 per cent are institutional investors, who are all interested in the company. “But, we are also getting inquiries from many other players who feel that they have the ability to invest in the company directly. So, as far as the interest of our investors are concerned, it is high for the company and the franchise that has been built,” Prasad told PTI in an interview. He added that there is a strong retail book and second-highest deposit book also. “There is a massive amount of interest in the company.” - financial express

🍒 Credit cost for MFIs to rise to 6-7% in two years as loans remain unpaid : With about 12 per cent of their customers not having repaid loans till end of August, the credit costs of Micro Finance Institutions (MFIs) could rise to 6-7 per cent over two years from 1.5 per cent in FY20, according to Icra. The rating agency said 12 per cent of borrowers of 21 entities with collective assets under management (AUM) of around Rs 54,213 crore availed a complete moratorium during April-August 2020.Consequently, near-term delinquencies (30+ days past due) are expected to increase to double digits. They would remain at these levels for a few months as it will be difficult for such borrowers to clear their dues. However, the rise in credit costs could be lower at 6-7 per cent (spread over two years FY2021-FY2022; 1.5 per cent in FY2020). Entities with a higher share of such borrowers may face higher credit costs, said Supreeta Nijjar, Vice President and Sector Head, Financial Sector Ratings, ICRA. - Business Standard

🍒 PMC Bank trying to use the escape hatch used by tiny cooperative banks : Punjab and Maharashtra Co-operative Bank’s (PMC) proposal to convert deposits into equity is not a novel idea, but certainly the most visible one. Although not reported anywhere, every year depositors of one or two tiny cooperative banks undergo this fate. In most cases, deposits are converted into subordinated debts, to be serviced over at least 10 years, or the banks are merged with other cooperative banks and deposits beyond a certain amount are converted into equity with a deep discount. Both the options are done after getting consent from the depositors. The harassed depositors prefer the debt route as liquidating the equity is next to impossible. Besides, if the merged entity incurs loss, which is more often than not, then the equity holders have to bear the loss too. This erodes their deposits even further. But with a deposit base of more than Rs 11,600 crore, PMC is not a small cooperative bank. And therefore, PMC’s conversion to equity has attracted public attention. - Business Standard

🍒 Indian private banks shed Covid-19 woes, net profit rises by 159% : Indian private banks seem to have weathered the severe economic shocks inflicted by the Covid-19 pandemic, at least for now. Backed by a steady rise in net interest income (NII) and contraction in provisions, private banks posted 159 per cent growth (year-on-year) in net profit at Rs 18,814 crore in the second quarter (Q2) ended July-September 2020-21 (Q2FY21). While the asset quality held up during Q2, the real picture is masked by the Supreme Court’s (SC’s) directive that accounts not declared non-performing assets (NPAs) as of August 31 should not be classified as such until further orders. The NII in the September quarter rose 15 per cent to Rs 52,101 crore in Q2FY21, while provisions and contingencies declined 4.2 per cent to Rs 18,414, according to a Business Standard analysis of 17 listed private lenders.- Business Standard

🍒 SBI’s asset quality numbers warrant a closer look : Country’s largest lender, State Bank of India (SBI) has received applications for loan restructuring to the tune of Rs 6,495 crore in October, the bank said while announcing its second quarter results. Overall restructuring numbers could go up as customers have time till December to apply for the one-time loan recast for Covid-linked stressed assets. The total estimated slippages in Q2 (July-September) is Rs 14,388 crore, the bank said. But, if one includes the loans that are not tagged as bad following a recent interim Supreme Court order, the total fresh slippages in Q2 would stand at over Rs 17,144 crore. Overall gross NPAs also have stayed at elevated levels if one takes into account the portion of bad loans excluded under Supreme Court’s interim order. - moneycontrol.com

🍒 Gold recycling hits 8-year-high on record prices : High gold prices pushed the recycling of the yellow metal to an eight-year-high of 41 tonnes in the September quarter, with both consumers and some of the distressed jewellers recycling their inventory to meet immediate cash requirements. Average gold prices jumped 37 per cent in the September quarter to ₹45,640 per 10 grams, against ₹33,329 logged in the same period last year. In fact, prices jumped 65 per cent from ₹27,861 logged in 2018, according to the World Gold Council data. - Business Line

🍒 Gold prices remain flat at Rs 51,306 per 10 gram; silver falls by Rs 1,007 a kg  : Gold prices were steady at Rs 51,306 per 10 gram in the Mumbai retail market on a sharp fall in rupee and weak global cues. The precious metal traded lower amid growing worries over the possibility of the contested US election outcome and firm dollar. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,996 plus 3 percent GST, while 24-carat 10 gram was Rs 51,306 plus GST. The 18-carat gold quoted at Rs 38,480 plus GST in the retail market. The gold/silver ratio currently stands at 83.77 to 1, which means the amount of silver required to buy one ounce of gold.  Silver prices declined Rs 1,007 to Rs 61,243 per kg from its closing on November 3.

🍒 Sensex rallies 355 pts; Nifty reclaims 11,900 : Rising for the third straight session, the Sensex rallied 355 points on Wednesday following gains in Reliance Industries, Infosys and Kotak Bank amid a positive trend in global markets ahead of the outcome of the US presidential elections. After a volatile session, the 30-share BSE index ended 355.01 points or 0.88 per cent higher at 40,616.14. Similarly, the broader NSE Nifty climbed 95 points or 0.80 per cent to 11,908.50. IndusInd Bank was the top gainer in the Sensex pack, surging around 5 per cent, followed by Sun Pharma, Reliance Industries, Infosys, Kotak Bank and Tech Mahindra. On the other hand, HDFC, PowerGrid, Axis Bank, ICICI Bank, NTPC and L&T were among the laggards.

🍒 Rupee falls to over 2-month low of 74.66 amidst tight US vote : Most emerging market shares scored small gains while currencies were broadly weaker on hints of a tight race, sparking a bout of volatility across financial markets.  The partially convertible rupee was at 74.66/67 per dollar at 0506 GMT versus its previous close of 74.40. The unit touched 74.78 earlier in the session, its weakest since August 24. Traders said they expect the rupee to weaken further with the unit having hit a low of 75.0550 in the overnight spot non-deliverable forwards market..

All the Best… Have a Good day

Today's Banking / Financial News at a Glance 03.11.2020

 🙏 Good Morning All....

☕ 03.11.2020: Today's Banking / Financial News at a Glance

🍒 PNB posts Q2 profit of ₹621 crore : Aided by lower provisioning for bad debts, PNB, on Monday, reported a standalone net profit of ₹621 crore for the second quarter ended September 30. This was more than double the net profit of ₹308 crore recorded in first quarter of this fiscal. It may be recalled that the country’s second-largest public sector bank had, from April 1, this year amalgamated two PSBs – Oriental Bank of Commerce and United Bank of India – with itself. For the second quarter ended September 30, 2019, PNB had recorded net profit of ₹507 crore. The latest Q2 performance is not comparable with the same quarter last fiscal in view of the three-way amalgamation from April 1 this year, PNB said in a filing with the stock exchanges. - Business Line

🍒 HDFC Q2 net profit down at ₹2,870 crore : Mortgage lender HDFC Ltd reported a 27.5 per cent decline in standalone net profit in the second quarter of the current fiscal at ₹2,870.12 crore, compared with ₹3,961.53 crore in the same period a year ago. “To facilitate a like-for-like comparison, after adjusting dividend, profit on sale of investments, fair value adjustments, net gains on loans assigned, charge for employee stock options and provisioning the adjusted profit before tax for the quarter ended September 30, 2020 is ₹ 3,366 crore compared to ₹ 2,646 crore in the previous year, reflecting a growth of 27per cent,” it said in a statement on Monday, adding that the profit numbers for the quarter ended September 30, 2020 are not directly comparable with that of the previous year.  - Business Line

🍒 City Union Bank net slips to ₹158 cr in Q2 : Kumbakonam-headquartered City Union Bank’s profit after tax slipped to ₹158 crore for the quarter ended September 2020 when compared to the ₹194 crore clocked during the corresponding quarter of the earlier fiscal. The bank, in a statement, said that the profit before tax for the quarter was impacted on account of additional provision of ₹115 crore made towards Covid to meet future contingencies. The bank already made a provision of ₹225 cr for Covid-19 as on June 30, 2020; during the current quarter, with the additional provision of ₹115 crore, total provision towards Covid-19 at the end of the first half of the current fiscal has touched ₹340 crore. - Business Line

🍒 Karur Vysya Bank Q2 net profit jumps 81% to Rs 115 crore : Private sector Karur Vysya Bank (KVB) on Friday reported an 81.4 percent jump in its net profit at Rs 114.89 crore in the second quarter of FY 2020-21, helped by lower provisioning for bad loans. The south-based lender had posted a net profit of Rs 63.33 crore in the corresponding three months a year ago.Total income though fell to Rs 1,666.26 crore in the July-September period of FY21 as against Rs 1,815.24 crore in the same quarter of 2019-20, KVB said in a regulatory filing. - moneycontrol.

🍒 Centre extends Emergency Credit Line Guarantee Scheme till the end of November : The government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) by a month till November 30 until the entire Rs 3 lakh crore made available under the scheme is sanctioned, according to a finance ministry statement on Monday. Lending institutions under the scheme have sanctioned loans amounting to Rs 2.03 lakh crore to 60.67 lakh borrowers and disbursed loans totaling Rs 1.48 lakh crore as of date, it said. The decision was taken in view of the further easing of Covid-19 restrictions on various sectors of the economy and the expected rise in demand during the festive season, it said. - economic times 

🍒 Covid stress: Banks confident provisions are good enough : Rising collection efficiencies helped by a rebound in economic activities and benign initial requests for restructuring have made banks increasingly confident that the provision they carry on their books should be good enough to deal with Covid related stress. Both private and public sector banks are confident that stress in their books will not go out of hand by the end of the fiscal as they have all increased their provision coverage ratio (PCR) to deal with any increased stress. However, analysts say that the real test for banks will come in the third and fourth quarters as the Supreme Court stay on classification of NPAs will be lifted and more clarity emerges on the restrcuturing requests to banks.- economic times

🍒 Aditya Puri appointed as a senior adviser in Asia for Carlyle Group : Global investment firm The Carlyle Group has announced that Aditya Puri, former CEO of India’s largest private sector bank, HDFC Bank, has been appointed as a senior advisor to Carlyle in Asia, said a statement issued today. Puri will advise the Carlyle team on investment opportunities across Asia. He will provide guidance on the evolving market landscape and new investment opportunities, while also advising the company’s investment professionals and portfolio management teams on building differentiated high quality businesses. - economic times

🍒 IDFC First Bank logs strong September quarter, expects restructuring at 4% of loan book : IDFC First Bank is factoring in total restructuring of about 4% of its loan book of Rs 1.06 lakh crore under the Covid-19 recast window, chief executive V Vaidyanathan told ET. The bank has received retail restructuring proposals worth Rs 200 crore through its online portal, while a few corporate restructuring requests are also under consideration, he added. “On our website, we have provided an end-to-end-restructuring journey for our retail customers, where we have received proposals worth Rs 200 crore, which is 0.4% of our customer base; some requests have come on the corporate side which are under consideration,” Vaidyanathan said. The restructuring window is open for corporates till December 31. According to a previous estimate by India Ratings, the banking system could restructure loans worth Rs 8.4 lakh crore due to the Covid-19 pandemic. - economic times

🍒 Bandhan Bank prunes Covid-related risk projections with better repayment collection : Bandhan Bank has lowered its Covid-related risk projections with repayment collection showing steady improvement over the last six months giving the lender confidence about further recovery and asset quality strength. The bank said it has made additional Covid-related provision of Rs 2100 crore covering 2.8% of its portfolio, and it might not need to top it up substantially going forward if the current repayment trend continues, bank chief executive Chandra Shekhar Ghosh told ET. During the initial days of the pandemic, the lender thought of creating an additional provision buffer of 3.5% of its loan book. At the end of September, it has Rs 76615 crore as loan outstanding including Rs 5000 crore of off-balance sheet exposure .- economic times

🍒 HSBC appoints new head of debt financing business in India : HSBC has elevated old hand Chetan Joshi as head of its debt financing business in India, according to sources. Joshi was previously managing director and head of the bank's debt capital markets business in which role he led the UK-headquartered lender to the position of the top-ranked arranger of foreign debt issuances from India. The bank is also said to have announced the appointment of Vinod Venkatesh in Joshi’s role. Joshi will also be overseeing the debt capital markets business in addition to taking added responsibilities for acquisition and leveraged finance, these sources said.. - economic times

🍒 RBI extends deadline for banks' compliance with new guidelines for existing current accounts :  The Reserve Bank of India has given more time to banks to comply with the revised current account opening norms to ease their operational glitches. The regulator changed the rules to prevent the misuse of the current account facility and fund duversions. The new deadline is December 15 instead of November 5. RBI suggested that banks should not route drawal from term loans through current accounts. Since term loans are meant for specific purposes, the funds should be remitted directly to the supplier of goods and services.- economic times

🍒 ICICI Lombard gets CCI nod to acquire Bharti AXA’s non-life insurance business : The Competition Commission of India (CCI) has given its nod for the merger of Bharti AXA’s non-life insurance business with ICICI Lombard General Insurance, paving the way for creating the country’s third-largest non-life insurance company. “Commission approves acquisition of General Insurance Business of Bharti AXA @BhartiAXAGI by ICICI Lombard @ICICILombard”, the CCI tweeted on Monday.- Business Line

🍒 RBI to increase trading hours for various markets : The Reserve Bank of India (RBI) has decided to increase trading hours for various markets regulated by it by up to 90 minutes with effect from November 9. With the graded roll-back of the lockdown and easing of restrictions on movement of people and functioning of offices, it has been decided to restore trading hours for regulated markets in a phased manner, the central bank said in a statement. The timings of markets for call/notice/term money; Commercial Paper and Certificates of Deposit; Repo in Corporate Bonds; Government Securities; Foreign Currency (FCY)/Indian rupee (INR) Trades, including Forex Derivatives; and Rupee Interest Rate Derivatives, will be increased to 10 am to 3.30 pm from 10 am to 2 pm. - Business Line

🍒 ICICI Bank shares jump nearly 6 per cent as Q2 profit zooms to record high : Shares of ICICI Bank on Monday jumped nearly 6 per cent after the company reported an over four-fold jump in consolidated net profit for the September quarter. The stock gained 6.64 per cent to Rs 418.65 on the BSE. On the NSE, it jumped 6.59 per cent to Rs 418.50. . - Business Line

🍒 ‘Fresh corporate bond issuances to rise up to ₹8.2-lakh crore in FY21’ : Fresh corporate bond issuances are expected to rise to ₹8.0-8.2-lakh crore in FY21 from ₹6.55-lakh crore in FY20, as spreads on these bonds over government securities (G-Sec) of similar tenure are likely to remain narrow over the next few quarters, according to ICRA. The spreads on corporate bonds over G-Secs of similar tenure declined to pre-Covid levels by the end of Q2 (July-September) FY21, the credit rating agency said.- Business Line

🍒 PNB Housing Finance set to prune corporate loan book by Rs 1,500 cr : Mortgage lender PNB Housing Finance (PNB HFC) plans to reduce corporate loan book by Rs 1,500 crore by March 2021 and is going in for a second round of rationalisation. Hardayal Prasad, managing director (MD) and chief executive officer (CEO) said the company has built a strong balance sheet and will continue to rebalance its portfolio to build a robust retail franchise. There was a sell down and accelerated pre-payment of Rs 477 crore in the corporate book. "HFC remains steadfast in its strategy to bring down share of corporate book by end of the current fiscal year," Dayal said in an analysts’ call. - Business Standard

🍒 10-year G-Sec yields will average 6.2% by March 2021: Crisil : Credit rating agency Crisil believes that 10-year Government Security (G-Sec) yields will average 6.2 per cent by March 2021 versus its previous estimate of 6.5 per cent. The agency reasoned that the Reserve Bank of India (RBI) has looked through the current spurt in inflation and stated its commitment to stay accommodative and provide liquidity to the system. In this regard, Crisil observed that the central bank increased purchase of G-secs by conducting Open Market Operations (OMOs), Operation Twists (OTs), introduction of OMOs for State G-secs, and increase in banks’ limits for statutory liquidity ratio (SLR) securities under held-to-maturity (HTM) to ensure that the demand for G-secs remains strong. - Business Line

🍒 Paytm Postpaid targets 15 million users by end March 2021 : Paytm, a leading digital financial services provider, on Monday said it is aiming a total of 15 million users for its Postpaid micro credit service by March 20-21. This would be more than double the current customer base of 7 million for its Postpaid service. With Paytm Postpaid, users can avail instant credit for their Paytm purchases, which they can repay next month. Paytm Postpaid is offered in partnership with two leading NBFCs with an instant credit line for various payments to Paytm App users. - Business Line

🍒 PhonePe hits 250 mn user mark, registers 925 mn transactions in October : Flipkart-owned fintech platform PhonePe on Monday said it has crossed the 250 million registered user milestone. The company reported over 100 million monthly active users (MAU) and 2.3 billion app sessions in October, a statement said. “PhonePe had a record month in October, processing 925 million transactions – its highest so far – with an annual TPV (total payment volume) run rate of USD 277 billion. PhonePe also processed 835 million UPI transactions in October, for a market leading share of over 40 per cent,” it added. Sameer Nigam, CEO and founder of PhonePe, said the company has set a target of crossing 500 million registered users by December 2022. - financial express

🍒 Four ex-RBI governors including Raghuram Rajan, YV Reddy warn of NPAs delaying recovery : Domestic banks, which have the highest bad loan pile in the world, pose a huge risk to the recovery of the pandemic-ravaged economy unless the government rescues them, four former Reserve Bank governors warn in a soon-to-be-released book. While Raghuram Rajan blames excessive investments by companies and the exuberance of bankers, coupled with inability to act fast as the prime causes for NPAs (Non-Performing Assets), Yaga Venugopal Reddy opines that the bad loans are not only a problem but a consequence of other problems. Duvvuri Subbarao sees NPAs as a big and real problem that needs to be contained, and Chakravarthy Rangarajan blames the lingering real sector problems, partly policy-driven most recently seen with demonetisation, aggravated the crisis. "Yes, the bad loan problem is big and real," says Subbarao, who was the governor for five years from September 2008 to September 2013, in the book by senior journalist Tamal Bandyopadhyay titled 'Pandemonium: The Great Indian Banking Tragedy'. - moneycontrol.

🍒 BoB, ICICI Bank announce fees for certain cash transactions; more may follow : Some of the large commercial banks have introduced or tweaked convenience fees on certain cash transactions from November 1. Two banks - Bank of Baroda (BoB) and ICICI Bank - have made announcements that essentially say that they will now levy a fee or hike existing fees that will be charged to customers for certain type of cash transactions. BoB has said it will levy a higher cash handling charges for cash transactions beyond certain limits - a minimum Rs 50 and a maximum Rs 20,000, the bank said on its website. Earlier, BoB, used to charge a minimum of Rs 10 and maximum of Rs 10,000 for certain kind of cash deposits. Similarly, ICICI Bank too has said it will charge a convenience fee of Rs 50 per transaction from customers for cash deposits at ATMs during non-business hours and bank holidays. Customers will be charged for every such transaction done on bank holidays and between 6:00 pm and 8:00 am on working days.  - moneycontrol.

🍒 Gold prices back above Rs 51,000/10 gm on safe haven buying ahead of US election, silver gains Rs 1,941/kg : Gold prices rose by Rs 197 to Rs 51,037 per 10 gram in the Mumbai retail market on the weaker rupee and positive global cues. The precious metal was trading firm on safe-haven buying ahead of the US Presidential election on November 3. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,750 plus 3 percent GST, while 24-carat 10 gram was Rs 51,037 plus GST. The 18-carat gold quoted at Rs 38,278 plus GST in the retail market. Silver prices jumped Rs 1,941 to Rs 61,867 per kg from its closing on October 30.

🍒 Rupee slumps 32 paise to close at 74.42 against US dollar : The rupee depreciated 32 paise and settled at 74.42 (provisional) against the US dollar on November 2 tracking strong American currency amid global risk aversion. The local unit opened at 74.40 at the interbank forex market, then lost further ground and finally closed at 74.42 against the greenback, down 32 paise over its last close.

🍒 Sensex ends 144 pts higher; banking, financial stocks sparkle : Equity benchmark Sensex ended 144 points higher on Monday, tracking strong buying sentiment in financial stocks amid positive cues from global markets. After gyrating 633.11 points in a choppy session, the 30-share BSE index settled 143.51 points or 0.36 per cent higher at 39,757.58.Similarly, the broader NSE Nifty advanced 26.75 points or 0.23 per cent to 11,669.15.IndusInd Bank was the top gainer in the Sensex pack, rallying around 7 per cent, followed by ICICI Bank, Axis Bank, HDFC, Bharti Airtel, SBI, Bajaj Finance and HDFC Bank.On the other hand, Reliance Industries (RIL) was the top laggard, crashing over 8 per cent. HCL Tech, TCS, Tata Steel, Asian Paints, Bajaj Auto, Maruti and UltraTech Cement also ended in the red..

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