Banking / Financial News 22/9/20

☕22.09.2020: Today's Banking / Financial News at a Glance

🍒 Privatise select PSU banks, dilute role of DFS: Raghuram Rajan : Former RBI Governor Raghuram Rajan on Monday suggested the government to privatise select public sector banks, set up a bad bank to deal with NPAs and dilute the role of Department of Financial Services. The reforms are necessary to ensure growth of the banking government without the periodic boom-bust cycles, said a paper titled 'Indian Banks: A Time to Reform?' co-authored by Rajan and former Reserve Bank Deputy Governor Viral Acharya. "Re-privatization of select PSBs can then be undertaken as part of a carefully calibrated strategy, bringing in private investors who have both financial expertise as well as technological expertise; corporate houses must be kept from acquiring significant stakes, given their natural conflicts of interest," the paper said. "Winding down Department of Financial Services in the Ministry of Finance is essential, both as an affirmative signal of the intent to grant bank boards and management independence and as a commitment not to engage in 'mission creep' when compulsions arise to use banks for serving costly social or political objectives," the paper noted. According to the paper, private asset management and national asset management 'bad banks' should be encouraged in parallel to the online platform for distressed loan sales. "The national public sector 'bad bank' could serve as a vehicle to aggregate loans, create management teams for distressed firms, and possibly buy and hold distressed assets in a sector like power till demand returns. "It could provide fall-back prices for loans sold by PSBs," the paper suggested. - Live Mint

🍒 BBB recommends 13 names for appointment as executive directors in PSU banks : The Banks Board Bureau (BBB) has recommended to the government names of 13 general managers of various public sector banks (PSBs) for appointment as executive directors. BBB, the headhunter for state-run banks and financial institutions, interviewed 28 candidates over a period of two days for vacancies of executive directors. The list of selected candidates would be sent to the Department of Financial Services to get the Appointments Committee of Cabinet (ACC) approval. The Banks Board Bureau interfaced with 28 candidates from various public sector banks for 13 clear vacancies of Executive Directors in PSBs, the Bureau said in a notification on Sunday. The Bureau recommended the names of Swarup Kumar Saha, Debadatta Chand, K Satyanarayana Raju, Nitesh Ranjan, Sangram Keshari Mohapatra, Monika Kalia, Swarup Dasgupta and Karthikeyan M, Ishraq Ali Khan, Vivek Wahi, S Srimathy, B Vijayakumar A and Raghavendra V Kollegal. Rajeev Puri, Imran Amin Siddiqui, Brij Mohan Sharma, Prakash Kumar Sinha, Vikas Kumar and Monoj Das are in the Reserve list, it said. - Business Standard

🍒 State Bank of India kicks off restructuring of retail loans : State Bank of India (SBI), the country's largest bank has kicked off its due diligence for restructuring of retail loans by announcing a two step process to which includes allowing customers to check their eligibility for restructuring through its website. Customers have to enter their loan account number, income pre Covid, current income and also expected income in the near term for the bank to assess whether they are eligible. They will be given a reference number valid for 30 days to visit the bank's branches and chalk out a restructuring plan. "Instead of people coming to branches to check whether they qualify they can just check on the website. For a loan to be eligible we will need to ascertain that Covid has had an impact on the customers income and we will also have to get some confidence that he or she will be able to repay in the future," said CS Setty, managing director, retail and digital banking at SBI. - economic times

🍒 Banks not risk averse, they are being prudent: SBI chairman Rajnish Kumar : Asserting that there is muted demand for loans, SBI Chairman Rajnish Kumar on Monday said banks are not risk averse but they are being prudent in these trying times to avoid a repeat of the post-2008 scenario when there was "dilution" in credit underwriting standards. Data clearly shows that investment in the economy has come down, the head of the country's biggest lender said. "If the capex (capital expenditure) is not happening and investment in the economy is not happening at the same pace, then obviously this is a demand issue and the risk aversion would be where there is a demand and banks are not lending," he said at a virtual event organised by AIMA. - economic times

🍒 SBI opens online window for restructuring retail loans: Here's how to use it : The State Bank of India (SBI) announced today that it has launched an online portal for smooth and hassle-free implementation of restructuring of retail loans such as home loans, auto loans etc. According to a press release issued by the bank, retail customers can access the portal at https://bank.sbi/ or https://sbi.co.in to check their eligibility instantaneously for loan recasts by providing income details. Using the portal, borrowers also the option of requesting a moratorium of 1-24 months and extension of their loan term. SBI has launched this facility, after the Reserve Bank of India (RBI) allowed banks to provide loan restructuring options to individual borrowers. The Finance Minister Nirmala Sitharaman had asked banks to roll out these restructuring schemes by September 15, 2020.- economic times

🍒 SBI to seek additional security for resolution of non-personal loans : State Bank of India has said it will seek additional security in the form of personal guarantee of promoters of unlisted companies and ask promoters to pledge their shares for listed entities as part of the loan-restructuring process. In its frequently asked questions (FAQs) on the resolution framework for Covid-19-related stress other than personal segment loans, SBI said a processing fee or upfront fee of 0.25 per cent of the aggregate limits will also be payable. Further, for term loans and working capital loans, the interest cost would be increased by 100 basis points over the current pricing on working capital loans. - Business Line

🍒 P Manikandan quits as Chief General Manager of Dhanlaxmi Bank : P Manikandan, Chief General Manager of the Kerala-based Dhanlaxmi Bank, has dismissed rumours of his being sacked from the post following an RBI directive for not adhering to good corporate governance practices. “I have submitted my resignation from the services of Dhanlaxmi Bank due to personal reasons. The same was submitted to the Managing Director on September 18 at 4 pm and the Board accepted the same. This is the fact,” he said when BusinessLine sought his response on the news.- Business Line

🍒 Reserve Bank of India looks to sort out e-KYC matter for non-bank lenders : The Reserve Bank of India and the government are working closely on how to allow the Aadhaar-based digital customer authentication facility to non-bank entities to help them to reach out and cater to a wider section of population, two people familiar with the matter said. This assumes significance amid the spread of coronavirus when physical proximity is best avoidable. At present, only banks are allowed to do customer identification online through OTP (one-time password) based Aadhaar card authentication. The government has been hesitant to give non-banks entities the access to the Unique Identification Authority of India’s (UIDAI) database following the complaints of misuse of it. Non-bank lenders and microfinance companies which are not allowed to do so, are lobbying for similar facilities. - economic times

🍒 Yes Bank to get fresh forensic investigation into its top 10 defaulters : Yes Bank is looking to conduct an in-depth investigation of its top 10 accounts that have either turned bad or have been declared fraudulent, three people aware of the development said. The private lender is looking to conduct a forensic investigation of a few ADAG Group companies, its exposure to Essel Group, Essar Group and Cox & Kings. In some of these cases the first round of forensic investigation was carried out by a group of lenders, which Yes Bank was part of. According to the people in the know, Yes Bank is looking to get a digital forensic audit and asset tracing probe on some of the top accounts. While Yes Bank did not respond to an email query, its chief Prashant Kumar had hinted about a planned approach against defaulters last month. - economic times

🍒 Google Pay, Visa partner for card-based payments with tokenisation : Google Pay on Monday announced the rollout of tokenisation across its platform that will enable users to safely transact with their debit or credit cards. Through tokenisation, Google Pay Android users can use their debit or credit card to make payments through a secure digital token attached to their phone without having to physically share their credit or debit card details. The feature will also facilitate use of tap-to-pay feature on near-field communications (NFC)-enabled point of sale (PoS) terminals and online merchants, a statement said. "Working in close partnership with Visa and banking partners, this feature is now available to all users of Axis and SBI Card, with Kotak and more banks expected to follow suit very soon," it added.- economic times

🍒 HDFC Bank denies charges by US law firm; to defend vigorously in lawsuit : Largest private sector lender HDFC Bank on Monday denied the allegations of misleading claims levelled by a US-based law firm to seek damages in a class action suit. The bank vowed to defend itself “vigorously” in the lawsuit and added that the response to the lawsuit will be ready by early next year. Rosen Legal last week filed the class-action suit seeking damages for the losses incurred by investors because of alleged "materially false and misleading" representations by HDFC Bank. It had specifically named the bank's chief executive and managing director of over 25 years, Aditya Puri, his designated successor Sashidhar Jagdishan and company secretary Santosh Haldankar as defendants..- economic times

🍒 Was forced to remove UPI cashback to get relisted on Android Play Store: Paytm : Paytm, on Monday, said it was forced to remove the UPI cashback and scratch cards campaign in order to comply with Google’s mandate and get re-listed on the Android Play Store. “Offering both is legal in India, and cashback was being given following all rules and regulations set by the government,” it said in a statement, adding that it was “arm-twisted” by the search engine major to comply with its biased Play Store policies that are meant to artificially create Google’s market dominance. After getting temporarily de-listed, Paytm app was restored on the Play Store in a few hours, it further said. - Business Line

🍒 IRDAI permits video-based identification for KYC : Insurers can now use video-based identification process (VBIP) in Know Your Customer (KYC) process for insurance policies. With a view to simplifying the KYC process by leveraging various electronic platforms to make it customer-friendly, the Insurance Regulatory and Development Authority of India (IRDAI) has permitted all life, general and standalone health insurers to use VBIP as an optional. “Insurers may undertake VBIP by developing an application, which facilitates KYC process for either online or face-to-face personal verification through video,” said the regulator in a circular released on Monday. - Business LIne

🍒 Banks moved $2 trillion, defying money laundering orders: ICIJ : A new investigation by the International Consortium of Investigative Journalists (ICIJ) says JPMorgan Chase & Co., Deutsche Bank AG and several global banks kept profiting from powerful and dangerous players in the past two decades even after the US imposed penalties on these financial institutions. The report, based on leaked documents obtained by BuzzFeed News and shared with the consortium, said that in some cases the banks kept moving illicit funds after receiving warnings from US officials. The documents identified more than $2 trillion in transactions between 1999 and 2017 that were flagged by financial institutions internal compliance officers as possible money laundering or other criminal activity, the report said. The top two banks are Deutsche Bank, which disclosed $1.3 trillion of suspicious money in the files, and JPMorgan, which disclosed $514 billion, the analysis found.- Business LIne

🍒 FinCEN files: Almost all Indian banks named for suspicious transactions : Between 2010 and 2017, a number of Indian banks, irrespective of ownership – public, private and foreign -- helped facilitate transactions red-flagged by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) for suspected money laundering, terrorism, drug dealing and financial fraud, latest leaks suggest. International Consortium of Investigative Journalism (ICIJ) obtained the top-secret Suspicious Activity Reports or SARs, worth more than $2 trillion globally. These transactions are not outright evidence of frauds or proof of nefarious activities, but are red-flagged by the US authority as suspicious. While the data dump is available on the organisation’s website, so far it has meticulously tracked down 18,153 transactions totaling $35 billion, in which links between both sending and beneficiary banks have been established. The transactions were done between 2000 and 2017. - Business Standard

🍒 IDBI Bank to raise Rs 11,000 cr through QIP; six merchant bankers appointed : IDBI Bank is all set to roll out its mega fund raising exercise in November. Sized at Rs 11,000 crore, the qualified institutional placement (QIP) will be the bank’s maiden equity raise in over five years and also the first ever since it came under the fold of Life Insurance Corporation of India (LIC) in 2018. Six investment banks – ICICI Securities, Axis Capital, SBI Capital Markets, IIFL Securities, Credit Suisse and IDBI Capital Markets have been appointed to manage the QIP. Shareholders of IDBI Bank approved the QIP on July 15, 2020. The equity issuance is expected to hit the market within weeks after the bank declares its September quarter results, which is likely to be published in October. “We are in the initial stages of reaching out to investors. Responses have been reasonable so far, especially from domestic institutional investors,” said a banker aware of the development. - Business Line

🍒 mPokket to disburse instant loans of ₹1,200 cr this fiscal : Lending platform mPokket on Monday said it will disburse ₹1,200 crore loan to college students and young working professionals this fiscal year, an increase of over 70% from 2019-20. mPokket, an instant loan app, had disbursed about ₹700 crore in the last fiscal. "mPokket will disburse ₹1,200 crore in 2020-21," the company said in a statement. The firm has a user base of more than 1 million KYC-approved borrowers and the number is expected to reach 1.5 million by the end of this fiscal ending March 2021. - Live Mint

🍒 SBI raises ₹7,000 crore via Basel III compliant bonds : The country's largest lender State Bank of India on Monday said it has raised ₹7,000 crore by issuing Basel III compliant bonds. "The Committee of Directors for Capital Raising at its meeting of held today on September 21, 2020 accorded its approval to allot 70,000 Basel III compliant non-convertible, taxable, redeemable...debt instruments in the nature of debentures aggregating to ₹7,000 crore, to bond subscribers," SBI said in a regulatory filing.The allotment of bonds to the subscribers took place on the same date i.e. September 21, 2020, it added. The bonds qualify as tier II capital of the bank, and has face value of ₹10 lakh each, bearing coupon rate of 6.24% per annum payable annually for a tenor of 10 years, it said. - Live Mint

🍒 Bank fraud: 24 directors of Ghaziabad bank booked for embezzling around Rs 100 crore : Twenty-four directors of Ghaziabad’s now defunct Mahamedha Cooperative Bank have been booked for allegedly misappropriating around Rs 100 crore, according to an FIR lodged here. The case was lodged following an audit by a company engaged by the Cooperative Department. The company in its report named the errant directors and officials. In a complaint to police, Cooperative Department Assistant Commissioner and Registrar Devendra Singh alleged the bank officials sanctioned loans to ineligible customers. He said Rs 99.85 crore was embezzled. Devender Singh said properties of seven people who took hefty loans from the bank have been attached. Properties of other borrowers will also be attached, he said. The case will be investigated by the cooperative cell of the UP police, SP (City) Abhishek Verma told PTI. One of the directors named in the FIR is already dead. - financial express

🍒 Over 1,634 cr digital transactions registered in Apr-Aug: Dhotre : Digital payments have witnessed an increase with 1,634.92 crore digital transactions being conducted between April-August this year, the Parliament was informed on Monday.Digital payments have increased in the country during the last three years from 2,071 crore digital transactions in FY2017-18 to 3,134 crore in FY2018-19, and further to 4,572 crore in FY2019-20, Minister of State for Electronics and IT Sanjay Dhotre said in a written reply to the Lok Sabha. In FY2020-21 (till August), 1,634.92 crore digital transactions were registered, he said, adding that final data for July and August 2020 has not yet been published by RBI. Replying to a separate question, Dhotre said 306.47 crore transactions were registered in April, 329.22 crore in May and 412.14 crore in the month of June this year. “In the wake of COVID-19 pandemic, digital payments have increased as people are adopting more digital payments as these are easy, convenient and safe and enable a contactless mode of payment,” Dhotre said. - financial express

🍒 SBI Life Insurance inks pact with Yes Bank to sell insurance policies : SBI Life Insurance on Monday said it has signed bancassurance agreement with Yes Bank to offer a comprehensive bouquet of life insurance solutions to the bank’s customers across the country. As part of the partnership, SBI Life’s diverse range of individual and group insurance solutions will be offered to the customers of Yes Bank through the bank’s branches spread across 28 states and 8 Union Territories in India The agreement was signed by Rajan Pental, Global Head – Retail Banking, Yes Bank and AVS Sivaramakrishna, Regional Director-Mumbai region, SBI Life Insurance, in the presence of Mahesh Kumar Sharma, MD & CEO, SBI Life and Ravi Krishnamurthy, President-Zone 1, SBI Life, among others. - Moneycontrol.com

🍒 CBI books Kwality for defrauding Bank of India, other banks of Rs 1,400 crore : The Central Bureau of Investigation (CBI) on September 21 said it has registered a case against Delhi-based private company Kwality and its directors, among others, on allegations of causing a loss of approximately Rs 1,400.62 crore to a consortium of banks led by Bank of India. The company's directors Sanjay Dhingra, Siddhant Gupta, and Arun Srivastava have been named in the complaint along with other unknown persons. The case was filed following a complaint by Bank of India. - moneycontrol.com

🍒 Gold prices ease to Rs 51,341/10 gm on stronger dollar, silver plunges Rs 1,764/kg : Gold prices fell Rs 279 to Rs 51,341 per 10 gram in the Mumbai market on rupee appreciation against the dollar and weak global cues. The precious metal prices slipped as the dollar rebounded on safe-haven buying ahead of Federal Reserve Chairman Jerome Powell’s speech later this week. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,506, Rs 47,028 and Rs 51,341, respectively, plus 3 percent GST. Silver prices declined Rs 1,764 to Rs 64,141 per kg from its closing on September 18.

🍒 Sensex tumbles over 800 points on global sell-off; Auto, Media stocks top drag : The 30-share BSE index ended 811.68 points or 2.09 per cent lower at 38,034.14. The NSE Nifty tumbled 254.40 points or 2.21 per cent to finish at 11,250.55. Traders also said that valuations of the market was a concern for investors as analysts believed a healthy correction in the market was in the offing. IndusInd Bank was the top loser in the Sensex pack, tanking over 8 per cent, followed by Bharti Airtel, Tata Steel, ICICI Bank, M&M, Maruti, Axis Bank and ONGC. On the other hand, Kotak Bank, Infosys and TCS were the gainers.

🍒 Rupee settles 7 paise higher at 73.38 against US dollar : The rupee strengthened seven paise and closed at 73.38 (provisional) against the US dollar on Monday, even as the domestic equity market traded with significant losses. At the interbank forex market, the domestic unit opened at 73.43 against the US dollar and finally settled for the day at 73.38 against the greenback, registering a rise of 7 paise over its previous close.

Banking News

Financial/Banking news 17.09.2020:

(To read same information directly from the newspaper site, links are provided in the pdf version)

India-China trade deficit fell to $5.5 billion in Q1: Govt to Parliament

The trade deficit between India and China in April-June (Q1) of this fiscal year fell to $5.48 billion, compared to $13.1 billion in the corresponding period last year, Parliament was informed on Wednesday. In a written reply, Commerce and Industry Minister Piyush Goyal said the trade between the countries, too, dipped to $16.55 billion in Q1, against $21.42 billion in the same period last year. (BUSINESS STANDARD)

Govt to bring out strategy paper on boosting industrial growth: Goyal

The government is in the process of bringing out a strategy paper on boosting industrial growth which will be a road map for all businesses in the country, Parliament was informed on Wednesday. In a written reply to the Lok Sabha, Commerce and Industry Minister Piyush Goyal said the government is in the process of rationalising the existing central labour laws into four labour codes -- on wages; industrial relations; occupational safety, health and working conditions; and social security by simplifying, amalgamating and rationalising the relevant provisions of the existing central labour laws. The Code on Wages has been approved and notified, he added. "The government is in the process of bringing out a strategy paper on boosting industrial growth which will be a road map for all businesses in the country," he said. (BUSINESS STANDARD)

Manufacturing share in India's GVA down to 15.1% in FY20: Exim Bank study

The share of manufacturing in India’s gross value added declined to 15.1 per cent in 2019-20, from 18.4 per cent in 2010-11 despite the strong and growing private consumption demand in the country, a study published by the Export-Import Bank of India (India Exim Bank). In a webinar on Tuesday, the bank pointed out that recent performance of the manufacturing sector in India is indicative of an underlying inertia, and this weakness has translated into greater dependence on imports to meet the growing domestic demand over the years. India's imports fell by 8 per cent in 2019-20. As a result, the $152.9-billion trade deficit in FY20 was much lower than $176.4 billion in the previous year.(BUSINESS STANDARD)

Garment exports begin to see revival, September fall lowest in 5 months:

After witnessing a sharp decline since April, ready-made garment exports are on a road to revival. In April, exports dropped by around 91.04 per cent in dollar terms, and in August, the fall was 14 per cent. In April, exports fell to $126 million, compared to $1.409 billion in April 2019. In August, exports stood at $1.084 billion, compared to $1.260 billion in the corresponding month of the previous year. Recovery was largely driven by the European Union (EU) markets. With garments seeing demand revival, capacity utilisation has increased to 60-80 per cent. Companies said customers are placing new orders based on the season and the number of stores that opened have globally. E-commerce is also picking up. They expect growth to return by early next year. (BUSINESS STANDARD)

Debt restructuring scheme may soften blow of Covid-19 on books of PSBs:

The debt restructuring scheme is expected to soften the blow of the Covid-19 pandemic on books of public sector banks (PSBs). With years of capital infusion, consolidation and enhancement in monitoring risk management, PSBs are relatively better placed to face challenges. Yet, some of them are likely to need some capital support from the government, in order to absorb shocks, meet regulatory norms, and support business growth. Except for a few, most PSBs face major challenges in raising capital from the market, given the low premium. (BUSINESS STANDARD)

Worries as NPAs under Mudra scheme rise to 5% for public sector banks:

Non-performing assets for loans disbursed by state-owned banks under the Pradhan Mantri Mudra Yojana (PMMY) is on an upward trajectory. Bad loans soared to around 5 per cent of the total disbursed amount in 2019-20, Minister of State for Finance Anurag Thakur informed Parliament earlier this week. NPAs of public sector banks (PSBs) under PMMY stood at 4.9 per cent in 2019-20 — a big jump from 3.8 per cent in 2018-19, and 3.4 per cent in 2017-18. The government launched the Mudra scheme in April 2015 to give unsecured loans of up to Rs 10 lakh to small enterprises. (BUSINESS STANDARD)

Exporters face liquidity crunch with piling GST, MEIS entitlement dues:

At a time when exporters are hit with a slump in global market in the wake of Covid-19, they have to cope with a tedious process of getting GST refunds and the MEIS (merchandise exports from India scheme) entitlements due for the period much before the Rs 2 crore limit was fixed. The piling dues have led to liquidity crunch for exporters, for which they are approaching banks for extension of moratorium. (FINANCIAL EXPRESS)

Cost control: Centre asks autonomous bodies to return idle funds parked in their bank accounts:

The finance ministry has asked all government-funded autonomous bodies (ABs) and ‘grantee institutions’ to return part of the idle funds parked in their bank accounts or held by them as fixed deposits. The move is part of the revenue-starved government’s effort to rebalance the Budget amid a dire need to stimulate the economy. Though a precise estimate of the inflows into the exchequer as a result of the latest move is not immediately available, it will likely help the government garner a “substantial amount of funds”. Many of these institutions have over the years accumulated a lot of unspent funds, of the monies received from the Budget. Budget support to these bodies for FY21 is estimated at Rs 87,825 crore. (FINANCIAL EXPRESS)

Financial status of almost a fifth urban co-operative banks weak: Nirmala Sitharaman

As many as 277 urban co-operative banks (close to a fifth of the total UCBs) have “weak” financial status, finance minister Nirmala Sitharaman told the Lok Sabha on Wednesday. She was explaining the reason for coming out with a Bill to bring urban and multi-state co-operative banks under the central bank’s regulations. The idea was to better protect the interests of depositors and avoid a PMC Bank-like crisis in future. “The financial status of 277 urban cooperative banks is weak; 105 cooperative banks are unable to meet the minimum regulatory capital requirement and 47 banks have net worth in negative,” Sitharaman said. As many as 328 UCBs have gross non-performing asset of more than 15%, she added. The Covid-19 pandemic has hit most of them much harder than the commercial banks. (FINANCIAL EXPRESS)

NBFCs ride out pandemic thanks to record govt stimulus steps even while virus ravages economy:

The health of India’s shadow banks remained resilient in August, suggesting that record stimulus steps by the nation’s authorities are helping the crisis-hit sector ride out the pandemic. Premiums on non-bank lenders’ bonds narrowed to a two-year low, according to an index of AAA rated five-year notes. Three other indicators compiled by Bloomberg, covering areas including liquidity and share performance, stayed steady from the previous month, with two at levels indicating strength. India’s non-bank lending sector was hit by a crisis in 2018 when a large financier unexpectedly defaulted, and the nation now needs it to stay healthy in order to prevent gross domestic product from shrinking further. The reach of shadow banks extends into many corners of the economy, as they lend to a wide range of businesses from road-side teashops to tycoons. (FINANCIAL EXPRESS)

Changes in banking regulation law aimed at improving governance in cooperative banks: FM Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday said amendments to the banking regulation law seeking to extend the supervision of RBI to cooperative banks are aimed at improving their governance and protecting depositors’ money. Moving the Banking Regulation (Amendment) Bill, 2020 in the Lok Sabha, Sitharaman said the government was compelled to come out with an ordinance during the lockdown period as the condition of the cooperative banks was “grave”. Gross non-performing assets (NPAs) of cooperative banks increased from 7.27 per cent in March 2019, to over 10 per cent by March 2020, she said, adding as many as 277 urban cooperative banks have reported losses in 2018-19 fiscal. She further said over 100 urban cooperative banks were unable to meet the minimum regulatory capital requirement and 47 had negative networth at the end March 2019. (FINANCIAL EXPRESS)

Changes in banking regulation law aimed at improving governance in cooperative banks: FM (ECONOMIC TIMES)

Lok Sabha passes bill to bring co-op banks within RBI ambit (MINT)

State Bank of India's digital startup, YONO, could be a $40 billion goldmine:

The country’s largest lender State Bank of India (SBI) could be sitting on a goldmine when it comes to its digital startup YONO (You only need one). The super-app could be valued at $40 billion with the lender considering long term plans to hive it off as a separate entity once it assumes a certain size. 

SBI had launched the YONO platform in 2017 and within three years of inception, notional profit and loss statements created by the bank suggests that its profits could be running in a few hundred crores. Bank is booking profits basis earnings of fee income, savings on net interest income, productivity gains and reduction in costs due to its digital only nature. (ECONOMIC TIMES)

Interest of bank depositors has to be protected: RBI governor Shaktikanta Das:

The Reserve Bank of India (RBI) governor Shaktikanta Das warned that India’s economic recovery will be gradual and argued strongly in favour of protecting the interest of depositors amid a contentious Supreme Court hearing on waiver of interest during the loan-moratorium period. India’s lead economic indicators, which had shown an uptick in June and July, appear to be levelling off, Das said at an event organised by the Federation of Indian Chambers of Commerce & Industry (Ficci) on Wednesday. (ECONOMIC TIMES)

RBI says protection of depositors should be banks' primary concern:(MINT)

India's fraud-hit PMC Bank asked other major banks for a merger, says administrator:

India's fraud-hit PMC Bank has approached other banks over a possible merger even as its efforts to recover funds from a big borrower have been disrupted by the coronavirus pandemic, the bank's administrator said in a court filing seen by Reuters. (ECONOMIC TIMES)

Clix's Pramod Bhasin says could approach RBI within four weeks for LVB merger:

Non-banking finance company Clix Capital expects to complete its due diligence of Lakshmi Vilas Bank NSE 9.80 % (LVB) in the next "two to four weeks", following which it will formally apply to the Reserve Bank of India (RBI) for an approval, its chairman, Pramod Bhasin, told ET. (ECONOMIC TIMES)

Total tax collection plunges 22.5% to Rs 2.54 lakh crore so far this fiscal: Source

Reflecting the tepid recovery in the overall economy after lifting of national lockdowns, the pace of deceleration in tax collections has slowed down with total tax mop-up touching Rs 2,53,532.3 crore so far this fiscal, which though is still down 22.5 per cent from the year-ago period, according to an Income Tax Department source. (ECONOMIC TIMES)

Digital shift has made banks even more vulnerable: SWIFT India CEO Kiran Shetty

With over 11,000 member banks across the world, SWIFT is one of the premier international bodies enabling eective crossborder communications and transactions within the global banking network. SWIFT India CEO and regional head Kiran Shetty talks to Ashwin Manikandan on the impact of the pandemic on banking technology and the need to enhance security. (ECONOMIC TIMES)

Banking News

Financial/Banking news 16.09.2020:

(To read same information directly from the newspaper site, links are provided in the pdf version)

August exports shrink 12.6%, trade deficit hits 4-month high of $6.77 bn:

After reducing for three months, the pace of contraction of India’s exports rose in August. Export earnings in the month declined by 12.6 per cent year on year, higher than July's 10.2 per cent fall, as trade in major foreign exchange earners such as petroleum, gems, electronics, and textiles continued to take a hit. Outbound trade stood at $22.7 billion, completing six straight months of contraction. The data for August, released by the commerce department on Tuesday, shows cumulative exports in the first five months of the financial year fell 26.65 per cent compared to the same period in the previous year. Imports fell by 26.04 per cent to $29.47 billion, after July's 28.4 per cent fall. The rate of contraction of imports has continued to reduce over the past five months. After witnessing a rare trade surplus of $800 million in June, the trade deficit climbed to $6.77 billion, a four-month high. (BUSINESS STANDARD)

Exports down for sixth straight month falling nearly 13% in August : (ECONOMIC TIMES)

India's trade deficit narrows to $6.77 billion in August, exports fall 12.66%: (ECONOMIC TIMES)

Over 1,600 firms got $1 bn FDI from China during Apr 2016-Mar 2020: Govt

More than 1,600 Indian companies have received foreign direct investments worth $1 billion from China during the April 2016 to March 2020 period, according to government data. Over 1,600 companies received $1,020.25 million ($1.02 billion) Foreign Direct Investment (FDI) equity inflows from China for the April 2016 to March 2020 period, as per the data. These companies were in 46 sectors. Out of them, the automobile industry, printing of books (including litho printing industry), electronics, services and electrical equipment received more than $100 million FDI each from China during the said period. The automobile industry received the maximum FDI from China at $172 million. The services sector attracted such funds worth $139.65 million, the data showed. (BUSINESS STANDARD)

Covid-19 impact: India's economy to contract 9% in FY21, says ADB

India's coronavirus-battered economy will shrink by 9 per cent this fiscal, the Asian Development Bank (ADB) predicted on Tuesday saying growth outlook remains highly vulnerable to either a prolonged outbreak of the pandemic or a resurgence of cases. This will be the first time in four decades that the Indian economic growth will contract. In its Asian Development Outlook (ADO) 2020 Update, ADB forecasts a strong recovery for the economy in FY2021, with gross domestic product (GDP) growing by 8 per cent as mobility and business activities resume more widely. (BUSINESS STANDARD)

ADB expects India's economy to contract by 9% in FY2020-21, sees strong recovery in FY22 (ECONOMIC TIMES)

RBI proposes to launch exchange-traded, OTC interest rate derivatives:

The Reserve Bank of India (RBI) on Tuesday proposed to introduce exchange-traded and over-the-counter (OTC) interest rate derivatives products that would be accessible to both foreign investors and retail participants. Retail participants can, however, only use the product for hedging, while non-retail participants can use it for any purpose.In a draft guideline released on its website, the central bank said retail participants can be allowed to trade on Forward Rate Agreement (FRA), Interest Rate Swap (IRS), and European Interest Rate Options (IRO), including caps, floors, collars and reverse collars, while non-retail traders can take exposure in swaptions and structured derivative products, excluding leveraged derivatives and derivatives on derivatives. Presently, only interest rate futures and interest rate options are allowed on government securities. With the introduction of many more IRF products, corporate debt could also be incorporated for making derivatives over time, say experts. Foreign Portfolio Investors (FPIs) would be allowed to transact in permitted exchange-traded interest rate derivatives (IRD) for a collective Rs 5,000 crore in net long positions. (BUSINESS STANDARD)

RBI issues draft Rupee interest rate derivatives: (FINANCIAL EXPRESS)

Government plans to introduce law to ban cryptocurrency trading :

India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market. The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media. The federal government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading, according to two people. India’s finance ministry spokesman didn’t respond to call and a message seeking comments. (ECONOMIC TIMES)

Government plans to introduce law to ban cryptocurrency trading: Report (MINT)

SBI Card working on giving customers facility to see credit scores in login accounts: MD & CEO

SBI Card is working on providing customers the facility to see their credit bureau scores when they log in to their credit card accounts, its MD and CEO Ashwini Kumar Tewari said. Tewari, who took charge last month, used to handle State Bank of India's New York office operations, covering three branches -- New York, Chicago and Los Angeles. (ECONOMIC TIMES)

SBI Card working on giving customers facility to see credit scores in login accounts: MD & CEO (FINANCIAL EXPRESS)

Central Bank of India reduces MCLR by 5 bps:

Central Bank of India has reduced its marginal cost of funds-based lending rates (MCLR) by 5 basis points (bps) across all tenors, effective from Tuesday. The city-based lender has cut the one-year MCLR to 7.10 per cent from 7.15 per cent, a release said. Overnight and one-month MCLRs have been reduced to 6.55 per cent from 6.60 per cent earlier. The new three-month and six month MCLR will stand at 6.85 per cent and 7 per cent, respectively. (ECONOMIC TIMES)

 

Nabard to take up short term skill development programmes for reverse migrant workers:

National Bank for Agriculture And Rural Development (Nabard) will soon start a short-term skill development programme for reverse migrants that will help them to get re-employed at the earliest. The board has initially sanctioned programmes for Uttar Pradesh, Bihar and Jharkhand and seeks to work with the National Skill Development Corporation accredited national skill development centres.(FINANCIAL EXPRESS)

38 persons flee India after committing bank frauds in five years; PSU banks sit on pile of NPAs:

The Central Bureau of Investigation (CBI) has informed that as much as 38 persons have fled India after committing bank frauds in the five years to 2019. Further, the Enforcement Directorate apprised that application for Red Corner Notices was filed against 20 persons under the Prevention of Money Laundering Act, 2002, and extradition requests were sent in respect of 14 persons to various countries. Also, applications under the Fugitive Economic Offenders Act, 2018 were filed against 11 persons, Anurag Thaur, MoS, Ministry of Finance, said in a reply to a question in Lok Sabha. The government said that various policy measures have been taken for deterring, preventing, and taking effective action against business persons fraudulently obtaining loans and fleeing the country. These include the enactment of the Fugitive Economic Offenders Act, 2018, which provides for attachment of property of a fugitive economic offender, confiscation of his property, and disentitling him from defending any civil claim. (FINANCIAL EXPRESS)

LIC to pare IDBI Bank holding in tranches:

Life Insurance Corporation of India (LIC) is planning a gradual sale of its stake in IDBI Bank, three people aware of the matter said, nearly two years after it rescued the lender at the Centre’s instance. In January 2019, India’s largest insurer bought 44% stake in IDBI Bank for ₹21,624 crore, saving it from collapse. After the stake purchase, LIC holds 51% in the bank. LIC and government officials are discussing the stake sale plan, the people mentioned above said on condition of anonymity. IDBI Bank has secured shareholder approval to raise up to ₹11,000 crore this fiscal in two tranches via equity sales, while LIC is looking for the bank’s stock price to improve before selling its stake. (MINT)

Lakshmi Vilas Bank says due diligence for Clix Group deal complete:

 Private sector lender Lakshmi Vilas Bank on Tuesday said that the mutual due diligence for its deal with Clix Group is “substantially complete". “We wish to inform that the mutual due diligence is substantially complete, and the parties are in discussions on the next steps," the bank said in a regulatory filing. The bank has shortlisted three firms for a valuation exercise and is likely to finalise one over the next week, said a person aware of the matter. On 30 July, Lakshmi Vilas Bank had said its deal with the Clix Group might be delayed owing to Covid-19 and both parties have agreed to extend the exclusivity period till 15 September, 2020. Meanwhile, the bank’s capital adequacy ratio (CAR) as per Basel III guidelines contracted to 0.17% as on 30 June, as against a regulatory minimum of 10.875%. The bank reported a net loss of ₹112.28 crore in the June quarter of FY21, compared to a loss of ₹237.25 crore in the same period last year. (MINT)

MFs piled on private lenders in Aug:

Despite fears of defaults and end of the moratorium period, private banks were strong favourites among fund managers in August after hitting a 22-month low in July, while net outflow from equity schemes surged to a 10-year high, data for India’s top 20 mutual fund houses showed.The weightage of private banks in mutual fund schemes was up by 110 basis points (bps) from 16.2% in July to 17.3% in August. However, the weightage is still 280bps lower compared to 20.1% in the year-ago, according to data from Association of Mutual Funds in India (Amfi) and NAV India.Technology (10.2%), oil and gas (9.1%) and consumer (8.8%) made up for the other top sector holding for mutual funds in August. But, the weightage for oil and gas slipped by 60bps from July to a 3-month low of 9.1% after rising for two straight months. The consumer sector’s weight fell for the third consecutive month to 8.8%, down 40bps from July. (MINT)

Banking News

Financial/Banking news 15.09.2020:

(To read same information directly from the newspaper site, links are provided in the pdf version)

Govt seeks parliamentary approval for additional Rs 1.67 trn expenditure:

The central government on Monday sought Parliament nod to incur additional expenditure of Rs 1.67 trillion for 2020-21 (FY21) to recapitalise banks, fight Covid-19, and fund various welfare schemes announced for vulnerable sections. The first batch of supplementary demand for grants, tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman, entails additional expenditure of Rs 2.36 trillion, but around Rs 68,868 crore will be met through savings in other schemes, showed the paper tabled in the House.  (BUSINESS STANDARD)

High food prices keep India's retail inflation above 6% in August:

The consumer price index(CPI)- based inflation came in at 6.7 per cent for August, from 6.73% in July, courtesy food inflation refusing to soften below 9 per cent. India’s economy now struggles to cope with low growth and high inflation five months into the Covid-19 pandemic. The retail inflation has now remained above the upper band set by the Reserve Bank of India of 6 per cent for nine consecutive months, though not successively for three financial quarters yet. Core inflation, too, has been inching up in the pandemic era, approaching 6 per cent now, from 4 per cent earlier this year.  (BUSINESS STANDARD)

Govt may launch mobile app to record off-mandi transactions under new Bill:

The central government might create a mobile application to record all off-mandi transactions done under the new Bill on agricultural trade, a senior official said. The Bill, called the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, which was tabled in the Lok Sabha by Agriculture Minister Narendra Singh Tomar on Monday, contains a provision that the Centre may prescribe a system for electronic registration for a trader, modalities of trade transactions and mode of payment of the schedule farmers’ produce in a trade area. A trade area has been defined as an area that is outside regular mandis.(BUSINESS STANDARD)

Debt monetisation by RBI could undermine investor confidence: S&P

Sovereign bond buying by central banks in emerging markets, including India, is seen as an emergency action related to the Covid 19 pandemic. However, if the central banks including the Reserve Bank of India, progress to debt monetisation, it could undermine investor confidence, warned Standard and Poor's (S&P). The global rating agency said sovereign-bond purchases by central banks in emerging markets have not spooked the markets because investors accept these operations as emergency actions related to the Covid-19 pandemic. (BUSINESS STANDARD)

RBI pulls up banks over delay in automating NPA recognition process:

The Reserve Bank of India (RBI) has pulled up banks for delay in automating the process of identifying non-performing assets (NPA), provisioning, and filing returns with banking regulator. It has asked the banks to comply with the guidelines by June 30, 2021. Banks were advised in August 2011 to have an appropriate IT system for identification of NPAs and generation of related data/returns, both for regulatory reporting and banks' own MIS requirements. In a communication to bank chief executives, the RBI said it was observed that process in many banks is not yet fully automated. Banks are still found to be resorting to manual identification of NPAs and over-riding the system-generated asset classification by manual intervention in a routine manner. (BUSINESS STANDARD)

RBI asks banks to fully automate NPA recognition process: (ECONOMIC TIMES)

RBI mandates automated recognition of NPAs, provisioning by June 2021: (FINANCIAL EXPRESS)

Banks' NPAs in large industry, services dip 31% in over 2 yrs to Rs 4.3 trn:

Banks' non-performing assets in large industry and services declined 31 per cent in over two years to about Rs 4.36 lakh crore in June this year, Parliament was informed on Monday. On whether the non-performing assets (NPAs) of big industries and corporate houses have increased sharply as compared to small businesses due to non-repayment of loans to banks during the last three years, Minister of State for Finance Anurag Singh Thakur replied in negative. "As per Reserve Bank of India (RBI) data on domestic operations, NPAs of scheduled commercial banks pertaining to large industry and services have come down to Rs 4,36,492 crore as on June 30, 2020 (provisional) from Rs 6,35,971 crore as on March 31, 2018, registering a decline of 31 per cent," Thakur said in a written reply to the Lok Sabha. He said a number of steps have been taken for recovery of loans from the corporate houses, which enabled the banks to recover Rs 5,48,749 crore during the last five financial years. This included a record recovery of Rs 1,56,692 crore during 2018-19, the largest proportion of which was on account of recoveries made in NPAs of large industry and services. (BUSINESS STANDARD)

Banks' NPAs in large industry, services fall 31% in over two years to Rs 4.36 lakh crore: (ECONOMIC TIMES)

Banks’ NPAs in large industry, services fall 31 pc in over two years to Rs 4.36 lakh cr: (FINANCIAL EXPRESS)

Govt to infuse Rs 20,000 cr in public sector banks; seeks parliamentary nod:

The Union government may infuse Rs 20,000 crore through recapitalisation of bonds into state-owned banks in the fourth quarter of the fiscal year. On Monday, the government sought Parliament nod for “meeting additional expenditure of Rs 20,000 crore towards recapitalisation of public sector banks (PSBs) through issue of government securities”. (BUSINESS STANDARD)

Govt seeks Parliament nod for Rs 20,000 crore capital infusion in public sector banks: (FINANCIAL EXPRESS)

Shadow of ITeS contraction over small, medium units: CRISIL SME Tracker:

CRISIL Research expects India’s information technology-enabled services (ITeS) exports to contract for the first time in over a decade this fiscal year, shrinking 1-5 per cent year-on-year in constant currency dollar terms to about $36 billion. Exports constitute more than 85 per cent of the industry’s revenue. And given the Covid-19-induced economic slowdown across the world — especially in the US and EU, which account for about 80 per cent of total export revenue — exports are at risk. The impact of the pandemic on high-value knowledge services, especially in the cloud and analytics sub-segment, is expected to be lower, which will cushion the overall decline. However, the traditional voice segment — where small and medium enterprises (SMEs) accounting for over 40 per cent of industry revenue are concentrated — is set to witness a severe volume contraction. (BUSINESS STANDARD)

Central Bank of India reduces MCLR by 5 bps:

Central Bank of India has reduced its marginal cost of funds-based lending rates (MCLR) by 5 basis points (bps) across all tenors, effective from Tuesday. The city-based lender has cut the one-year MCLR to 7.10 per cent from 7.15 per cent, a release said. Overnight and one-month MCLRs have been reduced to 6.55 per cent from 6.60 per cent earlier. The new three-month and six month MCLR will stand at 6.85 per cent and 7 per cent, respectively.(ECONOMIC TIMES)

Central Bank of India reduces MCLR by 5 basis points across all tenors: (FINANCIAL EXPRESS)

No proposal for raising FII limit in PSBs to 49 per cent: Anurag Thakur 

There is no proposal for raising Foreign Institutional Investment (FII) ceiling in public sector banks to 49 per cent from 20 per cent for capital mobilisation, Minister of State for Finance Anurag Singh Thakur informed the Lok Sabha on Monday. No amount has been raised by the government in the current financial year for recapitalisation of public sector banks (PSBs) through issuance of recapitalisation bonds, he said in a written reply. (ECONOMIC TIMES)

FDI inflow from China declines to USD 163.77 million in FY20: Anurag Thakur

There has been decline in foreign direct inflow from China in the last three years with FDI coming down to USD 163.77 million in 2019-20, Minister of State for Finance Anurag Singh Thakur informed Lok Sabha on Monday. Giving details of the total foreign direct investment (FDI) inflow from Chinese companies in India, he said, it was USD 350.22 million in 2017-18, while it declined to USD 229 million in the following year. During 2019-20, FDI further came down to USD 163.77 million, he  he said in a written reply on the first day of the monsoon session. With regard to outflow from India, he said, it was USD 20.63 million in calendar year 2020 as against USD 27.57 million in the corresponding period last year. (ECONOMIC TIMES)

Government asks private sector to clear payments due to MSMEs:

The Ministry of micro, small and medium enterprises has asked private sector enterprises in the country to clear dues of small businesses on priority. The Ministry has directly taken up the issue with the top 500 corporate groups of the country, a statement issued by the MSME ministry on Monday said. Going further, the ministry will be taking up the matter with other corporates through social media as well, it has indicated in its communication. When the AtmaNirbhar Bharat package was announced in June this year, the government had asked for all dues of MSMEs to be cleared within 45 days. The MSME ministry has taken up the matter aggressively with Central Ministries, their departments and Central Public Sector Enterprises (CPSEs), the statement said. (ECONOMIC TIMES)

Banking Regulation (Amendment) Bill 2020 introduced in Lok Sabha:

Finance minister Nirmala Sitharaman introduced the Banking Regulation (Amendment) Bill Ordinance, 2020, during the first day of the monsoon session of Parliament on Monday. The amendments, which were part of the Banking Regulation (Amendment) Ordinance, promulgated on June 26, was aimed at bringing urban and multi-state cooperative banks under the ambit of the Reserve Bank of India (RBI) regulation. The decision was taken in light of the deteriorating financial position of such cooperatives and to protect deposit holders for any fallout of the impact of the pandemic. It gave the central bank the power to supersede the board of directors of multi-state cooperative banks in situations where it would be in public interest and that of depositors for the RBI to take over. (ECONOMIC TIMES)

Govt introduces Banking Regulation (Amendment) Bill in Lok Sabha: (FINANCIAL EXPRESS)

Banking regulation Bill: Revival of banks sans moratorium on withdrawal of deposits:

Finance minister Nirmala Sitharaman on Monday introduced a Bill that seeks to enable the Reserve Bank of India (RBI) to make a scheme for restructuring a stressed bank without imposing a moratorium on the withdrawal of deposits. The Banking Regulation (Amendment ) Bill also aims to bring urban and multi-state co-operative banks under the RBI regulation and make it easier for them to access capital. The idea is to protect the interests of depositors and better scrutinise the affairs of these co-operative banks following the Punjab Maharashtra Co-operative (PMC) Bank crisis.The minister also introduced the Factoring Regulation (Amendment) Bill, 2020. The Bill aims to offer relief to the cash-strapped MSMEs, whose payments against supplies are stuck for more than 90 days, by allowing all non-banking financial companies to participate in the trade receivables discounting system, instead of limiting it to only select shadow lenders. (FINANCIAL EXPRESS)

Bank credit grows by 5.49%, deposits by 10.92%: RBI data

Bank credit grew 5.49 per cent to Rs 102.11 lakh crore, while deposits increased 10.92 per cent to Rs 141.76 lakh crore in the fortnight ended August 28, according to RBI data. In the fortnight ended August 30, 2019, banks’ advances were at Rs 96.80 lakh crore and deposits stood at Rs 127.80 lakh crore. In the previous fortnight ended August 14, 2020, bank credit and deposits had grown by 5.52 per cent and 11.04 per cent to Rs 102.19 lakh crore and Rs 140.80 lakh crore, respectively. On a year-on-year (y-o-y) basis, non-food bank credit grew at 6.7 per cent in July as against a growth of 11.4 per cent in the same month last year, according to the data on sectoral deployment of bank credit for July 2020, released recently by RBI. (FINANCIAL EXPRESS).

Banking News

BANKING NEWS 02 09 2020

Finance Minister Nirmala Sitharaman will hold a review meeting with heads of banks and NBFCs on Thursday for smooth and speedy implementation of the one-time debt recast for resolution of COVID-19 related stress in bank loans.

-Financial Express

Scheduled commercial banks can access information about individual assesses from the IT Dept, the CBDT has said. Experts feel such information sharing will help banks deduct tax precisely and also verify information on assessees. 

-Business Line

SBI has decided to introduce ‘Second Innings Tap – VRS –2020 (SITVRS - 2020) to optimise human resources and costs. It will be kept open for 3 months from Dec 1 to Feb-end every year. The scheme will be open to all permanent officers and award staff (including those from erstwhile associate banks and erstwhile Bharatiya Mahila Bank), who have put in 25 years of service and completed 55 years of age as on the date of application; officers who missed 3 or more promotion opportunity in present scale; on mobility ground/ mobility restriction for self or as care taker. Employees  opting for VRS will be paid an ex-gratia amounting to 50% of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 18 months last drawn salary.

-Business Line

Indian Bank announced a cut of 5 basis points in its MCLR for 2-year tenure. The bank has decided to reduce the MCLR for 1-year tenure by 5 basis points to 7.30% effective from Sep 3, 2020, Indian Bank said in a regulatory filing.

-Business Standard

Canara HSBC Oriental Bank of Commerce Life Insurance expects “good growth” in its new business premium in FY21 backed by rising demand for insurance in Tier II, III and IV towns, and enhanced reach following the recent consolidation of PSBs, AnujMathur, MD & CEO said.

-Business Line

LIC Housing Finance today said it plans to raise as much as ₹50,500 crore by issuing Redeemable Non-Convertible Debentures or other hybrid instruments on a private placement basis. The proposal will be taken up at its annual general meeting on Sep 28 for approval from shareholders.

-Business Line

Regarding the SBI decision to introduce VRS scheme  (SITVRS- 2020), K S Krishna, General Secretary, All India SBI Employees Association, said: “At this juncture, we advise our members and also all our colleagues to decide not to fall prey to any measure that induce the Employees to leave their hard-earned, precious jobs. Trade Unions and workforce in SBI have a greater role to play in containing the ongoing unbridled outsourcing of jobs and processes, for ensuring jobs for the present and future generations.”, He said.

-Business Line

In continuation of banning Chinese apps, the Govt today has blocked 118 mobile apps, mainly gaming ones including top of the notch PUBG Mobile Nordic Map: Livik, PubG Mobile Lite, Knives Out-No rules, just fight!, Ludo World-Ludo Superstar and Chess Rush.

-Business Line

The AITUC  appealed to PM  Modi not to corporatise the over two centuries old Indian ordnance factories. In a letter to Modi as well as Defence Minister Rajnath Singh, AITUC urged them to reconsider the move. AITUC fully supports the decision jointly taken by the defence employees federations to go on an indefinite strike from Oct 12, it said.

-Business Standard