🍒 RBI may consider ICICI Bank, Kotak Mahindra to bail out Lakshmi Vilas Bank, says experts : Will the Reserve Bank of India (RBI) rely on the mergers & acquisition (M&A) experience of private sector banks such as ICICI Bank and Kotak Mahindra Bank (KMB) to mount a rescue plan for the troubled Lakshmi Vilas Bank (LVB)? Financial market experts feel that if the proposed amalgamation of the ‘Clix Group’ with LVB, which could lead to surplus capital of about ₹1,500 crore from Clix Capital becoming available to the bank on merger, does not materialise then the latter’s merger with either ICICI Bank or Kotak Mahindra Bank may be the best option. They feel the regulator could possibly offer some regulatory dispensation to the acquiring banks to encourage a takeover. ICICI Bank has vast M&A experience, having acquired Bank of Madura (2000), Sangli Bank (2007) and Bank of Rajasthan (2013). KMB had acquired ING Vysya Bank in 2015. Moreover, ICICI Bank and KMB have raised capital in the last few months. ICICI Bank mopped up ₹15,000 crore via allotment to eligible qualified institutional buyers in August 2020. KMB raised ₹7,442.50 crore via a Qualified Institutional Placement (QIP) of equity shares in May 2020. The resources raised by these two banks could come in handy if they make up their mind on acquiring LVB. - Business Line
🍒 Regional rural banks incur net loss of Rs 2,206 crore in FY20: Nabard : Regional rural banks (RRBs) as a group reported net loss of Rs 2,206 crore in the fiscal year ended March 31, 2020, as against Rs 652-crore net loss in FY19, according to data published by Nabard. During FY 2019-20, 26 RRBs earned profit of Rs 2,203 crore, while 19 incurred losses of Rs 4,409 crore, the data showed.The data on RRBs, recently published by the National Bank for Agriculture and Rural Development (Nabard), is based on the data uploaded by the RRBs in the Ensure portal.As on March 31, 2020, there were 45 RRBs functioning in 685 districts of 26 states and three union territories (UTs). These RRBs were sponsored by 15 commercial banks and operating through a network of 21,850 branches.Gross non-performing assets as a percentage of gross loans outstanding of RRBs marginally declined to 10.4 per cent as on March 31, 2020, from 10.8 per cent as on March 31, 2019, the data showed.Share of standard, sub-standard, doubtful and loss assets stood at 89.6 per cent, 3.6 per cent, 6.5 per cent and 0.3 per cent, respectively, as of end March 2020.Eighteen of the 45 RRBs (as against 20 out of 53 RRBs as on March 31, 2019) had GNPA above 10 per cent as on March 31, 2020.RRBs, at aggregated level, achieved a growth of 8.6 per cent in their business in FY20 compared to a growth of 9.5 per cent in the previous year, according to the data.Total business of RRBs stood at Rs 7.77 lakh crore as on March 31, 2020. Deposits and advances of RRBs increased by 10.2 per cent and 9.5 per cent, respectively during FY2019-20. - Business Standard
🍒 Federal Bank Q2: Total deposits up 12 per cent, gross advances rise 6 per cent yoy : Private sector lender Federal Bank has reported a 12 per cent increase in its total deposits in the second quarter of the fiscal along with a six per cent jump in gross advances. According to provisional numbers reported by Federal Bank for the quarter ended September 30, 2020 in a regulatory filing, its total deposits amounted to Rs 1,56,747 crore as against Rs 1,39,547 crore a year ago.Gross advances stood at Rs 1,25,202 at the end of the second quarter this fiscal compared to Rs 1,17,622 crore a year ago. On a sequential basis too, the lender reported an increase in deposits as well as gross advances compared to the first quarter this fiscal. Customer deposits increased 13 per cent to Rs 152025 at the end of the second quarter from a year ago though certificates of deposits declined by 36 per cent to Rs 1,840 crore at the end of the second quarter from a year ago. CASA ratio was at 33.68 per cent as on September 30, 2020 versus 31.55 per cent a year ago.- Business Line
🍒 HDFC Bank's Ravi Santhanam in Forbes list of world's most influential CMOs : Ravi Santhanam, Chief Marketing Officer (CMO), HDFC Bank has been recognized in the Forbes list of 'The World's Most Influential CMOs'. Ranked at Number 39, he is the only CMO of an Indian company to be featured in the illustrious list which includes marketing heads of Apple, BMW, Lego, Adobe, Microsoft, P&G among others. This is the eighth edition of this annual list released by Forbes with research partners Sprinklr and LinkedIn. This year, 427 global CMOs were eligible for consideration. It is generated using data from news reports, websites, and social networks to measure influence. - economic times
🍒 Religare funds scam: Delhi court dismisses bail plea of former Laxmi Vilas Bank Vice President : A Delhi court has dismissed the bail plea of former Laxmi Vilas Bank Vice President Pradeep Kumar in a case related to alleged misappropriation of funds at Religare Finvest Ltd. Additional Chief Metropolitan Magistrate Vijeta Singh Rawat said as per the charge sheet there was prima facie incriminating material against Kumar. During the period of the alleged offence committed in 2019, Kumar was the Vice President and Relationship Head of North Regional Office (Delhi), of Laxmi Vilas Bank (LVB). Kumar was chargesheeted in the case by the Economic Offences Wing of the Delhi police for allegedly abusing his position and conspiring with the then management of RFL, RHC Holding Ltd, and Ranchem Ltd, to misappropriate a sum of Rs 791 crore. - economic times
🍒 Interest waiver: Those with home loans and personal loans to benefit the most : In a bid to handhold small borrowers and ensure that the burden of waving off compounding interest on loans for the six-month moratorium period does not fall on banks, the Centre, in an affidavit filed in the Supreme Court, has stated that it would bear the cost of the waiver relief. By capping the relief to only loans upto ₹2 crore and to the compound interest component (interest on interest), the Centre has limited its outgo to ₹5,000-6,000 crore. This is assuming that all borrowers are offered the relief — whether they opted for the moratorium or not. Interestingly, the RBI data (interest rate and credit limit-wise loans) as of March 2020, suggests that over 75 per cent of loans upto ₹2 crore are charged 6-12 per cent interest rates. Hence, nearly half of the ₹6,000-odd crore of interest on interest waiver will pertain to such loans that are currently charged 6-12 per cent. Loans that are charged over 20 per cent would also constitute over 15-18 per cent of the Centre’s proposed waiver relief. - Business Line
🍒 Former Union Bank of India official convicted in fraud case : The Special Judge for CBI Cases, Chennai, on Thursday sentenced R Kannan, former Chief Manager of Union Bank of India in Chennai’s Mount Road branch, to three years rigorous imprisonment with a fine of ₹2 lakh in connection with a bank fraud case involving top officials of Chennai-based National Medicines Private Ltd. In a press release, the Central investigating agency said it has registered a case on the allegations that between 2006 and 2007, the Directors of National Medicines conspired with Kannan and Parvathi Ramakrishnan, the then manager of Standard Chartered Bank, Chennai, with an intention to cheat the Union Bank of India. The CBI said that the bankers and the directors of the company have fraudulently availed enhanced cash credit (CC) facility from the bank by submitting disputed property as collateral security and diverted the sanctioned loan amount. “A loss to the tune of ₹6.19 crore was caused to Union Bank of India,” the release said. - Business Line
🍒 Loan Moratorium: Centre tells SC it will waive compound interest on specified loans of up to Rs 2 crore : Most individual borrowers of housing, educational and personal loans as well a sizeable section of MSMEs will benefit, as the government on Saturday agreed in the Supreme Court to waive compound interest on their loans of up to Rs 2 crore for the six-month (March-August) moratorium period. The waiver of interest on interest will also be given to all such loans by such categories of borrowers, whether or not they availed themselves of the moratorium facility. Bankers say while a precise estimate of the cost to exchequer of the move is hard to put out now, it could be anywhere between Rs 10,000 crore and Rs 20,000 crore, depending on the guidelines for implementation.However, the government argued strongly against extending such relief “for all types of loans for all categories of borrowers”, saying “such a blanket decision would cause a huge burden of Rs 6 lakh crore on banks, likely wiping out a major part of their net worth and even rendering most of them unviable”. - financial express
🍒 FPIs pull out Rs 3,419 crore in September : Snapping their three-month buying spree, overseas investors turned net sellers in Indian markets in September due to uncertainty ahead of the US presidential polls and surging coronavirus cases. Foreign investors withdrew ₹3,419 crore on net basis from Indian markets in September, according to depositories data. A net of ₹7,783 crore was withdrawn from equities while the debt segment saw inflows of ₹4,364 crore. Foreign portfolio investors (FPI) adopted a cautious stance ahead of the US presidential election and renewed fears due to rising Covid-19 cases, among others, experts said. - Business Line
🍒 Worst is behind, likely to complete RFL debt restructuring by December: Religare Enterprises chairperson : Having paid Rs 6,500 crore to lenders since the change of management in 2018, Religare Finvest Ltd (RFL) is likely to complete its debt restructuring by December and start new business from next financial year, Religare Enterprises Chairperson Rashmi Saluja said. RFL, a NBFC arm of Religare Enterprises Ltd, has been barred from undertaking fresh business as it is under corrective action plan (CAP) of the Reserve Bank of India (RBI) since January 2018 due to its weak financial health. The company has been in financial distress, primarily due to alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh. “Worst is behind…while all other business are performing, RFL is slowly getting out of woods. Two years ago, all four wheels (of RFL) were in the ditch and the wheels were stuck. Now the wheels are on the ground and we are refuelling for a take off,” Saluja told PTI in an interview. - financial express
🍒 Market cap of 8 of 10 most valued firms zooms Rs 1.45 lakh crore; TCS biggest gainer : Eight of the 10 most valued companies added Rs 1,45,194.57 crore in their total market valuation last week with Tata Consultancy Services and HDFC Bank emerging as leading gainers. During the holiday-truncated week, the Sensex advanced 1,308.39 points or 3.49 percent. The market valuation of Tata Consultancy Services (TCS) zoomed Rs 37,692.7 crore to Rs 9,46,632.85 crore, emerging as the biggest gainer among the top 10 firms. HDFC Bank''s valuation jumped Rs 34,425.67 crore to Rs 6,09,039.90 crore. The market capitalisation of HDFC gained Rs 25,091.57 crore to Rs 3,21,430.66 crore. Reliance Industries Limited (RIL) added Rs 15,789.36 crore to Rs 15,04,587.18 crore and the valuation of ICICI Bank rose by Rs 14,244.15 crore to reach Rs 2,54,574.08 crore. - moneycontrol.
No comments:
Post a Comment