🍒 Banks sanctions Rs 1.86 lakh crore to 50 lakh MSMEs under credit guarantee scheme : The Finance Ministry on Thursday said banks have sanctioned loans of about Rs 1.86 lakh crore to 50 lakh business units under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, impacted by slowdown due to the coronavirus pandemic. Over 27 lakh MSME units have received about Rs 1,32,246 crore till September 29. The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package, announced by Finance Minister Nirmala Sitharaman in May to mitigate the distress caused by the lockdown due to COVID-19 by providing credit to different sectors, especially micro, small and medium enterprises (MSMEs). "As reported on 29.09.2020, by 12 Public Sector Banks, top 24 Private Sector Banks & 31 NBFCs, the total amount sanctioned to Non-Individual & individuals, under the 100 per cent Emergency Credit Line Guarantee Scheme stands at Rs 1,86,469 crore, of which Rs 1,32,246 crore has already been disbursed to 27,09,027 borrowers," a Finance Ministry statement said. - economic times
🍒 SBI appoints former EY Partner Charanjit Attra as new CFO : State Bank of India on Thursday announced the appointment of Charanjit Attra as its new chief financial officer, the lender said in an exchange filing. Attra is one of SBI’s latest lateral hires and will report to J Swaminathan, deputy managing director of the finance department. Prior to joining SBI, Attra worked as a partner at global consulting firm EY. In one of his earlier roles he served as the CFO of 3i Infotech and ICICI Securities. Attra will be responsible for overseeing statutory audit functions in the bank besides coordinating with the banking regulator and the National Financial Reporting Authority on auditor related issues. ET had reported in June that the state-owned lender had invited applications to laterally hire a chief financial officer on contract, offering to pay the candidate up to Rs 1 crore a year – significantly more than the standard salary of the bank’s chairman. - economic times
🍒 RBI approves appointment of CoD to run Dhanlaxmi Bank till appointment of CEO : Dhanlaxmi Bank on Thursday said that the RBI has approved a three-member interim committee of directors, headed by G Subramonia Iyer, to run the private sector bank after the shareholders voted out its MD and CEO Sunil Gurbaxani. The shareholders rejected the resolution for appointment of Gurbaxani as MD and CEO at the 93rd Annual General Meeting of the bank held on September 30. "Consequent to this, please note that Reserve Bank of India has, as requested by the Board of Directors, approved an interim arrangement for formation of a Committee of Directors to exercise the powers of Managing Director & CEO till such time a new MD & CEO takes charge," Dhanlaxmi Bank said in a regulatory filing. - economic times
🍒 Suryoday SFB to launch IPO of 2 crore equity shares : Suryoday Small Finance Bank (SSFB) is planning to launch an initial public offering of about 2 crore equity shares, comprising a fresh issue of about 1.16 crore shares and offer for sale (OFS) of about 84 lakh shares by the selling shareholders. As per small finance bank (SFB) licensing and operating guidelines, SSFB’s equity shares are required to be listed on the stock exchanges within three years from the date of reaching a net worth (that is tier I capital as defined by the RBI) of ?500 crore (which in SSFB’s case was November 30, 2017). So, the SFB has to list on or prior to November 29, 2020. - Business Line
🍒 Insurers welcome plan for standard term insurance product : Consumers looking to buy a term insurance product may soon have the option of a standard product. Coming in the backdrop of the Covid-19 pandemic that has led to rising demand for protection products in the life insurance segment, the regulator’s plan for a standard term product has also been welcomed by insurers. IRDAI Chairman Subhash Chandra Khuntia had recently said the regulator plans to introduce a standard term insurance product which would be introduced by all insurers. “It becomes much easier for policyholders to buy such products,” he had said, but he did not give further details.- Business Line
🍒 NBFCs reduce overseas borrowing, turn towards domestic banks : A strong rupee, abysmally low interest rate and abundant liquidity in the overseas market offers a perfect recipe for strong overseas borrowing. This along with growing risk aversion among the domestic lenders should have ideally pushed more Indian corporates to borrow abroad. But that was not the case. On the contrary, external commercial borrowings (ECBs) of India Inc, which was rapidly growing over the last few years, plunged to an 11-quarter low of $3.51 billion during the first quarter of the current fiscal as compared to $12 billion for the same quarter last year. This is a sharp drop from the quarterly high of $19 billion in Q4 FY20.- Business Line
🍒 Nabard launches sanitation literacy campaign : The National Bank for Agriculture and Rural Development (Nabard) on Friday launched a nationwide ‘Sanitation Literacy Campaign’. The development bank, which promotes sustainable and equitable agriculture and rural development, said an additional credit line opened with the financial institutions will improve sanitation infrastructure in the country. The objective of the campaign, which was launched on the occasion of the 151st birth anniversary of Mahatma Gandhi, is to create awareness to sustain behavioural change of the rural populace towards adopting good hygiene and sanitation practices. G R Chintala, Chairman, Nabard said, “The Covid-19 pandemic has reinforced the need for greater awareness for better water, sanitisation and hygiene infrastructure and enhanced the significance of the Swachh Bharat Mission. “This campaign will help engage with vulnerable communities that lack the right sanitation facilities and identify further funding requirements.” The campaign would continue till January 26, 2021.- Business Line
🍒 Guru Raghavendra Sahakara Bank depositors face an uncertain future : A former employee of an auto parts company, KV Madhusudan, 70 faces a strange dilemma. So do over 40,000-odd depositors of Guru Raghavendra Sahakara Bank which in January was banned from carrying out its operations after allegations of embezzlement came to the surface. Following the ban, the bank a few months later allowed the depositors to withdraw up to ₹35,000 and later increased the limit up to ₹1 lakh. However, the bank is only allowing depositors to either withdraw money from their savings bank (SB) account or pre-close their fixed deposit (FD) account to withdraw up to ₹1 lakh. After withdrawal, the balance amount (over and above ₹1 lakh) will lie in their respective SB accounts, and can only be withdrawn when RBI raises the limit. The depositors of the bank, consisting mostly of senior citizens, now wait impatiently for clarity on their life savings which are in the form of FD certificates. “This limit of ₹1 lakh set by RBI has put senior citizens like me in a quandary. After unlocking the FD, the amount will be in SB account earning no interest then why should we close the FD,” asks Madhusudan.- Business Line
🍒 After SBI, HDFC Bank may join race to set up NPCI rival : HDFC Bank, the country’s largest private lender by assets, may join the race to set up an umbrella entity for retail payments, sources aware of the matter told FE. The bank is still at a preliminary stage of work on this. It is the second bank after the State Bank of India (SBI) to explore the possibility of setting up a payments body, envisaged as a rival to the National Payments Corporation of India (NPCI). “The matter is still in the preliminary stages, but HDFC Bank is certainly considering the NUE option as a possibility,” said a person close to the development. Apart from the two banking majors, Jio, Paytm, BSE and the National Stock Exchange (NSE) are known to be contemplating the setting up of their own umbrella entities. Industry executive Naveen Surya, who earlier headed ItzCash and is currently chairman emeritus of the Payments Council of India (PCI), may also apply for an NUE licence in his individual capacity. - Financial Express
🍒 BharatPe aims Rs 1,000 cr loan disbursal to merchants this fiscal : Merchant payment facilitating network BharatPe on Friday said it has disbursed Rs 80 crore loan in September, and targets Rs 1,000 crore disbursal in 2020-21. BharatPe has recorded disbursal of over Rs 80 crore in September 2020 and facilitated loan disbursals to the tune of Rs 150 crore through its partners in the September quarter, it said in a release. “BharatPe has ambitious plans of increasing the number of loan disbursals by 7x this year and would disburse loans worth Rs 1,000 crore in FY21,” the release added. At a time when collateral-free business loans are difficult to avail from other financial institutions, BharatPe’s success in lending has been fuelled by its sachet-sized daily repayment mechanism that it enables through its UPI QR codes, the company said. Existing merchants can avail collateral-free loans of up to Rs 7 lakhs at low-interest rates and with minimal paperwork.The company said its newly launched BharatLoan product has received an unprecedented response from the merchant community.- Financial Express
🍒 Europe’s central bank moves toward introducing digital euro : With consumers increasingly using cashless ways to buy things, the European Central Bank on Friday took a step closer to issuing a digital version of the euro currency shared by 19 countries, saying it had to be ready to launch digital money if a changing world requires it. The central bank issued a comprehensive report outlining the reasons why it might need to take the step. The ECB also said it would hold public consultations on the idea with citizens, academics and bankers. It said no decision has been made, and that any digital euro would complement cash, not replace it. The consultations will start Oct. 12. “The euro belongs to Europeans and our mission is to be its guardian,” said Christine Lagarde, ECB President. “Europeans are increasingly turning to digital in the ways they spend, save and invest. Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.” - Financial Express
🍒 Nirav Modi case: Fresh CBI charge sheet against retired PNB official for disproportionate assets : The CBI has filed a fresh charge sheet against Gokulnath Shetty, the Punjab National Bank Deputy Manager who allegedly helped Nirav Modi and Mehul Choksi perpetrate Rs 13000-crore fraud, and his wife for amassing disproportionate assets worth Rs 2.63 crore, officials said Friday. The agency has charged Shetty and his wife Asha Latha Shetty, a clerk in Indian Bank, under corruption charges for amassing assets worth over Rs 4.28 crore during the period 2011-17 when the scam was being perpetrated at the Brady House branch of PNB in Mumbai where he was posted, they said. Of the total assets, the CBI alleged they could not provide satisfactory explanation for assets worth Rs 2.63 crore, which were 2.38 times disproportionate to their known sources of income. The CBI looked into the relationship between Shetty and Modi-Choksi during which it dug into the assets amassed by the retired deputy manager, they said.- Financial Express
🍒 Insolvency & Bankruptcy Code: Successful resolution applicants can’t be permitted to withdraw offer, says NCLAT : The NCLAT has said once a resolution plan for a debt-ridden company is approved by the lenders, then the successful bidder cannot be permitted to withdraw its offer. A three-member NCLAT bench said the sanctity of resolution process has to be maintained and such withdrawal by a successful bidder “frustrate” the entire exercise of Corporate Insolvency Resolution Process (CIRP). Moreover, there is also no express provision in the Insolvency & Bankruptcy Code to allow any successful resolution applicant to “stage a U-turn”, it added. “We are of the considered opinion that the sanctity of resolution process has to be maintained and the resolution applicant whose resolution plan has been approved by Committee of Creditors cannot be permitted to withdraw its Resolution Plan,” said the bench headed by Acting Chairman Justice B L Bhat.- Financial Express
🍒 Franklin Templeton MF's 6 shut schemes generate Rs 8,262 crore since closure : Franklin Templeton Mutual Fund on October 2 said its six shut schemes have received Rs 8,262 crore from maturities, pre-payments and coupon payments since closing down in April. The schemes have received Rs 1,078 crore during September 1-15. This takes the total cash flows received till date since April 24 to Rs 8,262 crore, Franklin Templeton MF said in a statement. Franklin Templeton shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. - Moneycontrol.
🍒 Sensex, Nifty drop 1% in September; 236 stocks in BSE 500 rise : September did not augur well for equity benchmarks Sensex and Nifty as both closed the month with losses. Lacklustre global cues, rising cases of COVID across the globe, caution ahead of approaching US elections, uncertainty over the stimulus package, and talks of another lockdown in several parts of the world kept investors' sentiment subdued. Sensex fell by 1.45 percent and Nifty dropped 1.23 percent in September. On the other hand, BSE Midcap inched up by 0.3 percent but the BSE Smallcap index logged strong gains of 3.71 percent. Among the sectoral indices, BSE IT rose 10.66 percent followed by Pharma, Consumer Durables and Teck indices.
No comments:
Post a Comment