🍒 RBI asks lenders to implement compound interest waiver scheme : The Reserve Bank on Tuesday asked all lending institutions, including NBFCs, to implement the waiver of interest on interest for loans up to ₹2 crore for the six months moratorium period beginning March 1, 2020. On October 23, the government had announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. The scheme mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020 to August 31, 2020 by respective lending institutions.- Business Line
🍒 RBI: Difficult years ahead for States, and federalism : The next few years are going to be challenging for States due to the impact of the Covid-19 pandemic, which could also leave lasting scars on federalism, the Reserve Bank of India has cautioned. With States in the frontline of the battle against Covid, their fiscal arithmetic for 2020-21 is likely to suffer, the central bank said in its report, State Finances — A Study of Budgets of 2020-21. According to the report, States’ combined GFD (Gross Fiscal Deficit) is projected to widen beyond 4 per cent of GDP in the baseline scenario, higher than the budgeted 2.8 per cent of GDP for 2020-21.- Business Line
🍒 Centre initiates groundwork for IDBI Bank stake sale : The Centre is initiating plans to sell stake in IDBI Bank, though the exact modalities for the transaction are likely to be finalised later. The Finance Ministry is likely to seek Cabinet approval over the next few weeks for selling its stake in IDBI Bank, sources close to the development said, but added that this would be the first step and that the transaction could take place towards the end of the fiscal year or early next fiscal.The Centre currently holds a 47.11 per cent stake in IDBI Bank, and may consider selling stake in two to three tranches.State-owned Life Insurance Corporation of India, which owns a 51 per cent stake in the bank, has also been alerted on the proposal, but it is unclear whether it will divest stake in the bank as of now. The insurer may choose to prune its stake in the bank at a later time when valuations are more attractive. “As of now, work has begun on the initial proposal,” said a person familiar with the development.- Business Line
🍒 PMJDY usage more frequent in areas prone to crime: SBI report : Usage of the Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts increases over time in regions that are more prone to theft, according to State Bank of India’s economic research report ‘Ecowrap’. The report underscored that empirical research suggests that PMJDY accounts work as a primary vehicle for labour remittances, apart from increased lending, smoothing consumption, increased spending on healthcare and most importantly the usage is more frequent in areas that are more crime prone. Acknowledging that the genesis of crime can also be traced to interplay of various social, economic, demographic, local and institutional factors, apart from putting more money in accounts at the lower strata of society, there is evidence of PMJDY accounts having some impact on crime, the report said .- Business Line
🍒 Atal Pension Yojana: PFRDA enables online on-boarding through banks’ own portal : Savings bank customers may soon get another channel for online on-boarding to the Atal Pension Yojana (APY) — a government-backed pension scheme targeted at the unorganised sector — without having to use Net banking or a mobile App. Pension regulator PFRDA has now allowed APY-Points of Presence (PoPs) to introduce an alternate channel for online on-boarding of their existing Savings account of customers through the bank’s own web portal. Currently, some banks are providing online APY account opening through Net Banking or mobile app. However, a large number of bank customers who are eligible are not using either of the facilities. In such cases, these bank customers are not able to open an APY account through online/digital mode. To solve this issue, PFRDA has enabled the facility of ‘Online Paperless On-boarding of Subscribers using the Web Portal’, sources said. - Business Line
🍒 SIDBI's 'Standup Mitra' portal records over 96,000 loan sanctions : The Small Industries Development Bank of India (Sidbi) on Tuesday said its 'Standup Mitra' portal has recorded over 96,000 loan sanctions worth over Rs 21,000 crore as of September end. The portal, developed by Sidbi, was launched in April 2016 to extend online financial assistance to the unserved and underserved segment of the society without the need of visiting any bank branch, and apply for loan online under the Stand-Up India scheme. The Standup Mitra portal "has successfully recorded more than 96,000 loan sanctions worth more than Rs 21,000 crore as on September 30, 2020," Sidbi said in a release. - Business Standard
🍒 Massive jump in Jan Dhan accounts during pandemic; labour remittances touch pre-Covid levels : The coronavirus pandemic has led to a massive surge in PM Jan Dhan Yojana accounts since the beginning of the ongoing financial year. The total number of PMJDY accounts stood at 41.05 crores with a total balance of Rs 1.31 lakh crore, said the SBI Ecowrap report. Since 1 April, around 3 crore accounts were opened, with a total rise in deposits of Rs 11,060 crore in those accounts. The pandemic has led to a 60 per cent increase in the opening of new Jan Dhan accounts, the report added. PMJDY accounts work as a primary vehicle for labour remittances, apart from increased lending, smoothing consumption, and increased spending on healthcare. The research further stated that there was a significant reduction in remittances due to lockdown and it touched the lowest level in April. However, it increased in June and July, and in the month of September, it has just crossed the pre-COVID level as witnessed in February. Thus, it seems migrant labourers are coming back in adequate numbers to workplaces for livelihood and that too much before Diwali as was largely expected, the report added. - financial express
🍒 RBI asks Lakshmi Vilas Bank to reconsider names proposed for new MD & CEO : The Reserve Bank of India has asked Lakshmi Vilas Bank (LVB), which is in the midst of a merger process with Clix group, to reconsider the names proposed for the post of new MD & CEO, a senior official said on Tuesday. In September, shareholders of the cash-strapped private sector lender had voted out seven board members, including MD & CEO S Sundar, at the annual general meeting. Subsequently, RBI appointed a three-member Committee of Directors (CoD) comprising independent directors Meeta Makhan, Shakti Sinha and Satish Kumar Kalra. “In the first round, we had done interviews of three candidates and sent the names to RBI. But the Reserve Bank has come back to us saying that we have to reconsider. So, we have started the process again. Now, we are broadening our search with more candidates,” Shakti Sinha told PTI. He noted that appointing a new MD & CEO is a complex and long process, and right now, the process of merger with Clix group assumes more significance. - financial express
🍒 CSB Bank, IIFL Finance join hands to offer gold loans in untapped locations : Private sector lender CSB Bank has tied up with IIFL Finance to offer gold loans in untapped locations, including rural areas. Under the partnership, IIFL, a non-banking financial company, will act as a business correspondent of CSB Bank and will source new business from markets where CSB Bank does not have adequate branch network. IIFL, with its vast branch network, would help CSB Bank penetrate the lower strata of customers and rural areas, where the bank currently does not have adequate reach. This arrangement would result in scaling up of the customer base, a joint statement said. - moneycontrol.
🍒 Paytm Money launches ETFs starting ₹16 in equity, ₹44 in gold and ₹120 for NIFTY : Paytm Money, a wholly-owned subsidiary of digital financial services platform Paytm, has launched Exchange-Traded Funds (ETFs) on its platform, post-approval from the Securities and Exchange Board of India (SEBI). These are passive funds that are listed on NSE/BSE and traded like regular equity shares proving the merits of mutual funds along with the return potential of stocks. Paytm Money said that it believes that ETF is an essential part of an investor’s portfolio and all Indians must invest in it. Therefore, the company has made it convenient for new investors by facilitating ETF investments for as low as ₹ 16 in Equity, ₹ 44 in Gold and ₹ 120 for NIFTY. .- Business Line
🍒 BharatPe launches digital gold on its platform : BharatPe, a leading merchant payment network, has announced the launch of digital gold on its platform. The launch of this new category of fintech product is in line with the company’s commitment to offer the entire gamut of financial products to Small and Medium Enterprises (SMEs). Through this latest offering, BharatPe’s merchants will be able to buy and sell 99.5 per cent pure24-carat gold. Merchants can choose to buy in rupees or grams, any time of the day and from anywhere, by using the BharatPe app. - Business Line
🍒 Banks relieved as government notifies reimbursement of compound interest : Banks are relieved at the government notification waiving off only compounded interest as it will restrict their losses without burdening the fisc much. On Tuesday, the Reserve Bank of India (RBI) issued a notification directing banks to follow the government order reimbursing small borrowers with loans up Rs 2 crore that have paid compounded interest on their loans between March 1 and August 31. Bankers said the government's clarity and its notification committing to bear the difference between the rates have lifted a major over hang over banks. "This issue has now been taken care off. The fact that the government has given a timeline for crediting the losses to banks is very positive because at one time we were not sure of what the court would say and whether we will have to bear the burden," said a bank CEO. - economic times
🍒 Yes Bank starts physical takeover of Anil Ambani’s Reliance Group HQ in Mumbai : Yes Bank has started the process for obtaining physical possession of Reliance Centre, the headquarters of Anil Ambani’s Reliance Group in Mumbai. The bank is seeking to either sell the property to realise its dues, or may move its headquarters there. In July, the private lender had taken symbolic possession of the sprawling complex situated off the Western Express Highway and overlooking the Mumbai airport. The action was taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act to recover dues of Rs 2,892 crore from Reliance Infrastructure. In terms of the act, the bank has to give a two-month notice before taking possession, which the bank had done in May. - economic times
🍒 MSMEs suffered 'triple whammy' during COVID lockdown; reverse migration added to woes : India’s micro small and medium enterprises (MSMEs) suffered a ‘triple whammy’ because of the COVID lockdown in India. Along with other factors, massive reverse migration too took a toll on the MSMEs, said the central bank in a report. “The lockdown was a triple whammy for the MSME sector in India – supply disruption; domestic demand shock; and external demand decline,” said the RBI.India has 63.4 million MSMEs which contribute significantly to the country’s economy. The sector accounts for 45 per cent of manufacturing output, more than 40 per cent of exports and employs about 120 million people. “MSMEs have taken a bigger hit than other sectors, particularly because of the spatial distribution of the pandemic that is skewed towards states with a higher share of MSMEs, more so micro and small enterprises,” RBI said in the report.- moneycontrol.
🍒 Gold prices slip marginally to Rs 51,043/10 gm, silver rises by Rs 285/kg : Gold prices fell marginally by Rs 195 to Rs 51,043 per 10 gram in the Mumbai retail market on a stronger rupee and lacklustre global cues. The precious metal steadied around $1,900 per troy ounce as investors weighed fading prospects of financial aid before next week’s US presidential elections. The rate of a 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,282, Rs 46,755 and Rs 51,043, respectively, plus 3 percent GST. Silver prices rose Rs 285 to Rs 61,991 per kg from its closing on October 26.
🍒 Rupee settles 13 paise higher at 73.71 against US dollar : The rupee pared early losses and settled 13 paise higher at 73.71 against the US dollar on Tuesday, tracking positive domestic equities. At the interbank forex market, the domestic unit opened on a weak note at 73.94 against the greenback, but soon recovered the lost ground and finally closed at 73.71, registering a gain of 13 paise over its previous close of 73.84 against the US currency. During the session, the domestic unit witnessed an intra-day high of 73.71 and a low of 73.94 against the greenback.
🍒 JM Financial clocks 7.31 per cent rise in Q2 net profit : Diversified financial services firm JM Financial has posted a 7.31 per cent rise in net profit of ₹139.06 crore in the second quarter ended September 30, riding mainly on its investment banking, Wealth Management and Securities (IWS) business. “Despite a tough business environment, our investment banking, wealth management and securities businesses remained resilient by demonstrating strong performance. We continue to maintain liquidity buffers and healthy leverage ratios,” JM Financial Group Managing Director Vishal Kampani said. - Business Line
🍒 Angel Broking records highest ever quarterly PAT at ₹74.6 crore in Q2 : Angel Broking, which recently got listed on the bourses, has reported its highest ever quarterly profit after tax (PAT) at ₹74.6 crore for the second quarter ended September 30, 2020. This is substantially higher than the net profit of ₹48.3 crore recorded in the first quarter this fiscal and ₹18.9 crore in the second quarter of last fiscal. Total income for the quarter under review stood at ₹317.9 crore, up 29 per cent over total income of ₹246.6 crore in the previous quarter. The board of directors has recommended a second interim dividend of ₹4.15 per equity share of ₹10 each. - Business Line
🍒 Sensex rallies 376 points higher led by banking, financials stocks : The BSE benchmark Sensex ended higher by 376.60 points, or 0.94%, at 40,522.10. The benchmark had touched a low of 39,978.39 in the opening trading session, but steadily improved on buying support.On the NSE, the Nifty too rebounded from an initial low of 11,723, and touched a high of 11,899.05 before settling at 11,889.40, gaining 121.65 points over its previous close of 11,767.75. Indices were led by gains in index-heavyweights such as Kotak Bank, NTPC, Nestle, Asian Paint, Bajaj Auto, UltraCem Co, L&T and Tech Mahindra amid negative trend in other Asian markets.- Business Line.
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