🍒 FM launches Indian Bank’s business mentoring programme for MSMEs : Public sector lender Indian Bank has come out with ‘MSME Prerana’, an online Business Mentoring Programme for MSMEs. The bank says it is the first-of-its-kind initiative by a bank in the country for the (MSME) sector. . The initiative was formally launched by Union Minister of Finance & Corporate Affairs, Nirmala Sitharaman, at the bank’s headquarters in Chennai on Tuesday. To empower entrepreneurs MSME Prerana is for empowering entrepreneurs through skill development and capacity building workshops in the local language. The programme is in collaboration with Poornatha & Co, a firm that designs Entrepreneurial Development Programmes in vernacular using online web-based interactive sessions and case studies, according to a statement. - Business Line
🍒 RBI to announce monetary policy on October 9 : The Reserve Bank of India will announce monetary policy on October 9. "The next meeting of the Monetary Policy Committee (MPC) is scheduled during October 7 to October 9, 2020," the RBI said in a release. The government on Monday had appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the rate-setting Monetary Policy Committee of the RBI. Live Mint
🍒 Government names Dinesh Khara as the new SBI chief : The government today gave its nod to the Banks Board Bureau’s recommendation, thereby appointing Dinesh Khara as the chairman of SBI- country’s largest public sector bank .The term of Rajnish Kumar, who was appointed for a period of three years comes to an end on Tuesday. With Khara’s elevation, one of the four MD positions will also fall vacant. A few weeks later, at the end of October, another MD - Arijit Basu - is also set to complete his term. This would leave two positions vacant by the month-end. The senior-most of the three Managing Directors (MDs) at the public lender was picked by the BBB on August 28 for the vacancy. - economic times
🍒 Govt appoints Shashank Bhide, Ashima Goyal and Jayant Verma as new MPC members : The government has appointed economists Shashank Bhide, Ashima Goyal and Jayanth R Varma as independent members to the Monetary Policy Committee. The finance ministry issued a notification to this effect late Monday. Shashank Bhide is currently a senior advisor at the New Delhi-based think tank National Council for Applied Economic Research, while Goyal is a professor at the Indira Gandhi Institute of Development Research in Mumbai. Jayant R Varma is currently a professor at the Indian Institute of Management, Ahmedabad.- economic times
🍒 Bank of Baroda launches festive offers for home, car loans : Ahead of the festive season, state-run Bank of Baroda (BOB) on Tuesday said it has rolled out offers for home and car loan borrowers. The lender said it is offering a waiver of 0.25 per cent in the existing applicable rates for Baroda Home Loans (under take over cases only) and Baroda Car Loans. “With the introduction of these retail loan offers for this festive season, we intend to gift the existing loyal customers and also offer new-to-bank customers an attractive proposition for availing car loans or shifting their home loans who will be benefited from lower rates and waiver of processing fee on offer,” the bank's head and general manager (mortgage and other assets) H T Solanki said in a release. - economic times
🍒 Indian Bank launches its first Customer Acquisition & Processing Centre in Chennai : Chennai-headquartered public sector lender Indian Bank on Monday opened its first centralised Customer Acquisition & Processing Centre (CAPC) in Chennai. Its branches in Tamil Nadu and Puducherry will be brought under CAPC before December 2020 and other branches across the country will be brought under the CAPCs in a phased manner, said Executive Director of the Bank MK Bhattacharya, who inaugurated the CAPC, here. Over the next 30 days, 40 branches in Chennai will be brought under CAPC. He said
the account opening process at branch is a very critical, sensitive and time bound exercise. Regulators expect banks to have a consolidated view of customers and their transactions across businesses and jurisdictions. - Business Line
🍒 HDFC Bank’s loans grow 16% in Q2, deposits 20% : HDFC Bank on Monday said that its advances for the second quarter rose 16% over the previous year, while deposits increased by 20%. The growth is much higher than the banking sector, which recorded a 12% year-on-year growth in deposits and 5.3% in advances until September 11. According to the bank’s statement to the stock exchanges, its deposits at the end of September stood at Rs 12.3 lakh crore as compared to Rs 10.2 lakh crore a year ago. Advances rose to Rs 10.4 lakh crore from Rs 9 lakh crore. The country’s largest private sector bank said the share of current and savings accounts in its deposits rose to 42% in September 2020 from 39% a year ago. During the quarter, the bank purchased home loans worth Rs 3,026 crore (against Rs 7,016 crore in the previous year) from its parent HDFC. - economic times
🍒 Centre 'may disinvest 5% stake' in LIC : The government may sell just five per cent stake in state-owned Life Insurance Corporation of India, which could help it raise upwards of ₹50,000 crore. Sources close to the development said the government is hoping to go ahead with the proposed disinvestment in LIC, and wants to list it by February next year. However, instead of a 10 per cent disinvestment, it may consider a small stake sale, given the expectation of its high valuation. A formal plan is yet to be finalised and is still under discussion. “This will depend on the valuation arrived at and the market conditions and investor appetite at the time. A straight listing process in the domestic bourses may be an easier exercise at present,” noted a person familiar with the development. “Inter-ministerial discussions are on, and it is expected to be a key priority going ahead,” said the source, adding that the Finance Ministry will move necessary amendments to the LIC Act in the Winter Session of the Parliament. - Business Line
🍒 HDFC Bank assures employees that jobs, bonuses are safe : Private sector lender HDFC Bank’s Managing Director and CEO Aditya Puri has assured employees that their jobs and bonuses are safe. His comments come amid the Covid-19 pandemic and economic uncertainty that has resulted in job losses and salary cuts at many companies. “Not only are your jobs secure, your increment is secure. Your bonus and your promotion is secure,” he told the bank’s employees in a video message last week. He also assured them that the bank remains well capitalised and that its portfolio is not under any strain. He also hinted that the lender may post robust performance in the second quarter and in the quarters coming ahead. “The bank is doing well. We have all the capital that we need. Our portfolio is not under strain,” said Puri, who retires at the end of the month. - Business Line
🍒 SBI looking to hive off Yono into separate subsidiary: Chairman Rajnish Kumar : The country's largest lender State Bank of India is actively looking to hive off its digital platform Yono into a separate subsidiary, its chairman Rajnish Kumar said. Yono or You Only Need One App is the lender's integrated banking platform. "We are in discussions with all our partners to hive it (Yono) off as a separate subsidiary," Kumar said at an annual banking and finance conference - Sibos 2020, organised by the Society for Worldwide Interbank Financial Telecommunications (SWIFT). Recently, Kumar had said that Yono's valuation could be around USD 40 billion. "The statement (on valuation of Yono) which I made was that if I look at valuations of all start-ups and compare, then definitely Yono should not be less than USD 40 billion. As of now, we have not done any valuation exercise but that is what I believe is the potential," Kumar clarified.- economic times
🍒 Axis Bank joins top private lenders to offer pay hikes; salaries to be raised by up to 12% : India’s third-largest private lender is joining its larger rivals in offering pay hikes to staff even as the economic fall out of the coronavirus pandemic threatens profit growth. Axis Bank Ltd. will increase staff salaries between 4% and 12% from Oct. 1 based on performance, according to people with knowledge of the plans. The Mumbai-based lender, which has about 76,000 employees, also paid bonuses to its staff, the people said, asking not to be identified because the matter is private. HDFC Bank Ltd., the country’s largest private lender by assets, boosted salaries in April based on performance and also paid bonuses, other people with knowledge of the matter said. ICICI Bank Ltd., the second-biggest privately-held lender, gave about 80% of its 100,000 employees a bonus and pay rise from July, according to different people aware of the plans.- economic times
🍒 Axis Bank, Vistara launch co-branded forex card : Vistara and Axis Bank on Tuesday launched a co-branded forex card that can load up to 16 currencies. The card has locked-in exchange rates and the card holder will accrue 3 award points on Club Vistara for every USD 5 or an equivalent value spent, the airline said in a press release. Club Vistara (CV) is the airline's frequent flyer program. "Customers also get awarded 500 CV Points as a Welcome Bonus on signing up (for the forex card)," it said. - economic times
🍒 DHFL case: Auditor reports fraudulent transactions worth Rs 2,150 crore : Debt-ridden mortgage lender DHFL on Tuesday said that fraudulent transactions worth Rs 2,150.84 crore by way of undervaluing the company's insurance subsidiary have been detected by transaction auditor Grant Thornton. DHFL is undergoing resolution process under the Insolvency and Bankruptcy Code. Earlier this year, the company's administrator roped in Grant Thornton to conduct an investigation into the affairs of the mortgage firm. According to the auditor's report, the Rs 2,150.84 crore-fraud was in relation to the undervalued and fraudulent nature of certain agreements entered into by the DHFL when the company sold its stake in Pramerica Life Insurance Ltd to DHFL Investments Ltd (DIL), as per a regulatory filing. - economic times
🍒 Airtel Payments Bank eases transactions for merchants : Merchants associated with Airtel Payments Bank can receive payments by smartphone acting as a point-of-sale (POS) machine at zero commission charges. Airtel, on Tuesday, upgraded the app with “Smart ePOS” and “On-Demand Settlement” features. Merchants can select the Smart ePOS option in the Airtel Payments app, and a QR code will appear on the mobile screen for the payments to be made. The amount will get credited immediately to the merchant bank account linked to the app. “This eliminates the need to have a physical QR code or the need to carry an additional device to receive payments for home deliveries,” the company said. - economic times
🍒 ICICI Bank launches debit card for customers availing loan against securities : Private sector lender ICICI Bank has introduced a debit card facility for customers availing themselves of Loan Against Securities (LAS). The card is available on the Visa platform and can be used across all domestic merchant establishments to make POS and online transactions like payments on e-commerce portals among others, using the sanctioned LAS amount. “The debit card will be issued to new customers who avail themselves of LAS and will be automatically renewed upon renewal of the LAS account. Customers get a digital debit card within one business day of availing LAS and will get the physical card within seven business days. Existing customers of LAS will also get this card shortly,” ICICI Bank said in a statement on Tuesday. The card offers a maximum daily transaction limit of ₹3 lakh each for POS and online transactions. - Business Line
🍒 India’s first B2B Crypto trading exchange DigitX launched : DigitX, country’s first Business-to-Business (B2B) Crypto trading exchange has commenced its trading operations. In a highly potential yet challenging market, DigitX aims to deliv
er transparency and security with its Platform armed with features to bring about a much-needed trust and confidence for the investors and traders of Crypto. This crypto trading exchange brings along a network of pre-verified, trained and closely monitored Trusted Links(members) to ensure a secure Crypto trading ecosystem. - Business Line
🍒 Moody’s sees NPLs doubling across 14 APAC economies by 2022, led by India, Thailand : Moody’s Investors Service, problem loans, non-performing loans (NPLs), economic conditions, credit rating agency, pandemic, return on tangible assets (ROTAs), coronavirus, tangible common equity (TCE) Moody’s Investors Service has projected that problem loans or non-performing loans (NPLs) will double on average across the 14 APAC (Asia-Pacific) economies by 2022, led by India and Thailand as economic conditions severely worsen. Banks in India and Thailand expect to see the largest increases in NPLs due to the greater severity of economic shocks to their economies and the historically poor performance of certain loan types, as per the global credit rating agency’s assessment. - Business Line
🍒 ED files rejoinder in SC opposing bail to DHFL promoters : The Enforcement Directorate (ED) has filed a rejoinder affidavit in the Supreme Court opposing the Bombay High Court’s order granting bail to Kapil Wadhawan and Dheeraj Wadhawan, promoters of Dewan Housing Finance Corporation Ltd, in a case related to money laundering charges linked to YES Bank The ED has dismissed the Wadhawans’ claims that the complaint was filed late. In the affidavit, the ED said that the complaint was filed well within the time frame stipulated under law. It said that the complaint was filed via email initailly due to the ongoing pandemic-related issues. BusinessLine has seen the rejoinder filed by ED. - Business Line
🍒 Rajnish Kumar bids adieu as SBI boss after 40-year stint with bank : Rajnish Kumar, 62, will bid farewell to State Bank of India this evening, after having served the institution for 40 years, the last three of those as Chairman. Kumar is hanging his boots at a time when the banking sector as a whole is facing an unprecedented crisis. Credit growth is at 40-year lows, reflecting the problems of an economy in the midst of a slowdown. Public sector banks’ stressed assets ratios have been in double digits for the last seven years, and Reserve Bank estimates bank NPAs may rise to the highest level in 20 years by March next year due to the pandemic-induced stress. Under Rajnish Kumar, the bank’s gross bad loans reduced by a third from Rs 1,86,115 crores in Q2 FY18 to Rs 1,29,661 crores in Q1 FY21. During the same period, the ratio of gross NPAs fell from 9.97 percent to 5.44 percent, and provision coverage ratio improved significantly from 65.1 percent to 86.3 percent. For FY20, the bank posted a historic high profit of almost Rs 14,500 crores, another feather in the Chairman’s cap. Kumar leaves the bank a lot more resilient than when he took charge on October 7, 2017. His biggest achievement, perhaps, is the swift and sure turnaround of the troubled Yes Bank, which was executed under Kumar’s chairmanship. The bank saw unprecedented support from the entire banking industry, helmed by State Bank of India, which pumped in the capital in the bank to take a majority stake, and brought much-needed comfort to investors and depositors alike. - cnbctv18
🍒 LIC Housing Finance disburses Rs 2,115 crore subsidy to over 1 lakh CLSS customers : Leading mortgage lender LIC Housing Finance has disbursed Rs 2,115 crore worth of subsidies to its customers under the credit-linked subsidy scheme (CLSS) as part of PM Awas Yojana since its inception in 2017, a top company official said. Under this scheme, the second-largest mortgage player has disbursed more than Rs 12,000 crore of affordable housing loans to 1,01,521 borrowers till September-end, Siddhartha Mohanty, the managing director and chief executive of LIC Housing Finance, told PTI. - financial express
🍒 Credit Wise Capital raises $6 million from family offices, angels : Credit Wise Capital (CWC), a consumer finance NBFC, has raised $6 million in a seed-funding round, which saw participation from marquee angel investors. The company intends to use these funds to grow its dealer network, increase geographical expansion, improve collection technology and underwriting models. The round witnessed investments from Ajay Goel, Stanford Business School alum and serial investor, Anuj Golecha, founder of Venture Catalysts, Gaurav Gandhi, director at EssGee group, Anup Agarwal, director of Shanti Group and Gaurav Singhvi among others.- Business Line
🍒 Private equity investments hit record high of $28.66 billion in 2020 : Private equity investments in India hit a record high of $28.66 billion till September end this calendar year, significantly over the $16.27 billion invested in entire 2019. In 2018, PE investments stood at $10.8 billion. Although PE investments in volume terms have seen a huge surge so far in 2020, there has been a drop in the number of deals, which came in at 560 so far this year as against 663 in entire 2019, data available with Refinitiv, a global provider of financial markets data, showed. In the last four years including 2020, the total PE investments have touched nearly $70 billion. - Business Line
🍒 September gold imports fall 59% YoY to 4-month low : India's gold imports in September fell 59% from a year earlier to the lowest level in four months, a government source said on Tuesday, as a drop in prices from a record high failed to lure buyers, which were postponing purchases anticipating more significant drop. The world's second-biggest consumer of the precious metal imported around 11 tonnes of gold in September, down from 27 tonnes a year ago, the source said. Business Line
🍒 Gold back above Rs 51,000 per 10 gram after 14 days, silver crosses Rs 61,000/kg : Gold prices rose by Rs 546 to Rs 51,044 per 10 gram in the Mumbai retail market on rupee depreciation and subdued global cues. The precious metal is trading flat, tracking a weak dollar and on worries over a global economic recovery. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,283, Rs 46,756 and Rs 51,044, respectively, plus 3 percent GST. Silver prices surged Rs 1,001 to Rs 61,112 per kg from its closing on October 5.
🍒 Over 300 stocks hit upper circuit as market surges on global cues : Bears have yet again been caught on the wrong foot. Benchmark indices Sensex and Nifty have staged a sharp recovery in line with improved global sentiments since September. Mirroring global sentiments, the Nifty rose 1.38 per cent, or 159 points, to 11,662. The Sensex gained 1.54 per cent, or 600 points, at 39,574. Over 300 stocks hit their upper circuit and 153 rose to new 52-week highs.
🍒 Rupee settles 17 paise lower at 73.46 against US dollar : The rupee pared its initial gains and settled 17 paise lower at 73.46 (provisional) against the US dollar on Tuesday. At the interbank forex market, the domestic unit opened at 73.17 tracking positive domestic equities and a weak greenback, but soon pared the gains and finally closed at 73.46, down 17 paise over its previous close of 73.29.
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