03.10.2020: Today's Banking / Financial News

 03.10.2020: Today's Banking / Financial News at a Glance

🍒 Banks sanctions Rs 1.86 lakh crore to 50 lakh MSMEs under credit guarantee scheme : The Finance Ministry on Thursday said banks have sanctioned loans of about Rs 1.86 lakh crore to 50 lakh business units under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, impacted by slowdown due to the coronavirus pandemic. Over 27 lakh MSME units have received about Rs 1,32,246 crore till September 29. The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package, announced by Finance Minister Nirmala Sitharaman in May to mitigate the distress caused by the lockdown due to COVID-19 by providing credit to different sectors, especially micro, small and medium enterprises (MSMEs). "As reported on 29.09.2020, by 12 Public Sector Banks, top 24 Private Sector Banks & 31 NBFCs, the total amount sanctioned to Non-Individual & individuals, under the 100 per cent Emergency Credit Line Guarantee Scheme stands at Rs 1,86,469 crore, of which Rs 1,32,246 crore has already been disbursed to 27,09,027 borrowers," a Finance Ministry statement said. - economic times

🍒 SBI appoints former EY Partner Charanjit Attra as new CFO : State Bank of India on Thursday announced the appointment of Charanjit Attra as its new chief financial officer, the lender said in an exchange filing. Attra is one of SBI’s latest lateral hires and will report to J Swaminathan, deputy managing director of the finance department. Prior to joining SBI, Attra worked as a partner at global consulting firm EY. In one of his earlier roles he served as the CFO of 3i Infotech and ICICI Securities. Attra will be responsible for overseeing statutory audit functions in the bank besides coordinating with the banking regulator and the National Financial Reporting Authority on auditor related issues. ET had reported in June that the state-owned lender had invited applications to laterally hire a chief financial officer on contract, offering to pay the candidate up to Rs 1 crore a year – significantly more than the standard salary of the bank’s chairman. - economic times

🍒 RBI approves appointment of CoD to run Dhanlaxmi Bank till appointment of CEO : Dhanlaxmi Bank on Thursday said that the RBI has approved a three-member interim committee of directors, headed by G Subramonia Iyer, to run the private sector bank after the shareholders voted out its MD and CEO Sunil Gurbaxani. The shareholders rejected the resolution for appointment of Gurbaxani as MD and CEO at the 93rd Annual General Meeting of the bank held on September 30. "Consequent to this, please note that Reserve Bank of India has, as requested by the Board of Directors, approved an interim arrangement for formation of a Committee of Directors to exercise the powers of Managing Director & CEO till such time a new MD & CEO takes charge," Dhanlaxmi Bank said in a regulatory filing. - economic times

🍒 Suryoday SFB to launch IPO of 2 crore equity shares : Suryoday Small Finance Bank (SSFB) is planning to launch an initial public offering of about 2 crore equity shares, comprising a fresh issue of about 1.16 crore shares and offer for sale (OFS) of about 84 lakh shares by the selling shareholders. As per small finance bank (SFB) licensing and operating guidelines, SSFB’s equity shares are required to be listed on the stock exchanges within three years from the date of reaching a net worth (that is tier I capital as defined by the RBI) of ?500 crore (which in SSFB’s case was November 30, 2017). So, the SFB has to list on or prior to November 29, 2020. - Business Line

🍒 Insurers welcome plan for standard term insurance product : Consumers looking to buy a term insurance product may soon have the option of a standard product. Coming in the backdrop of the Covid-19 pandemic that has led to rising demand for protection products in the life insurance segment, the regulator’s plan for a standard term product has also been welcomed by insurers. IRDAI Chairman Subhash Chandra Khuntia had recently said the regulator plans to introduce a standard term insurance product which would be introduced by all insurers. “It becomes much easier for policyholders to buy such products,” he had said, but he did not give further details.- Business Line

🍒 NBFCs reduce overseas borrowing, turn towards domestic banks : A strong rupee, abysmally low interest rate and abundant liquidity in the overseas market offers a perfect recipe for strong overseas borrowing. This along with growing risk aversion among the domestic lenders should have ideally pushed more Indian corporates to borrow abroad. But that was not the case. On the contrary, external commercial borrowings (ECBs) of India Inc, which was rapidly growing over the last few years, plunged to an 11-quarter low of $3.51 billion during the first quarter of the current fiscal as compared to $12 billion for the same quarter last year. This is a sharp drop from the quarterly high of $19 billion in Q4 FY20.- Business Line

🍒 Nabard launches sanitation literacy campaign : The National Bank for Agriculture and Rural Development (Nabard) on Friday launched a nationwide ‘Sanitation Literacy Campaign’. The development bank, which promotes sustainable and equitable agriculture and rural development, said an additional credit line opened with the financial institutions will improve sanitation infrastructure in the country. The objective of the campaign, which was launched on the occasion of the 151st birth anniversary of Mahatma Gandhi, is to create awareness to sustain behavioural change of the rural populace towards adopting good hygiene and sanitation practices. G R Chintala, Chairman, Nabard said, “The Covid-19 pandemic has reinforced the need for greater awareness for better water, sanitisation and hygiene infrastructure and enhanced the significance of the Swachh Bharat Mission. “This campaign will help engage with vulnerable communities that lack the right sanitation facilities and identify further funding requirements.” The campaign would continue till January 26, 2021.- Business Line

🍒 Guru Raghavendra Sahakara Bank depositors face an uncertain future : A former employee of an auto parts company, KV Madhusudan, 70 faces a strange dilemma. So do over 40,000-odd depositors of Guru Raghavendra Sahakara Bank which in January was banned from carrying out its operations after allegations of embezzlement came to the surface. Following the ban, the bank a few months later allowed the depositors to withdraw up to ₹35,000 and later increased the limit up to ₹1 lakh. However, the bank is only allowing depositors to either withdraw money from their savings bank (SB) account or pre-close their fixed deposit (FD) account to withdraw up to ₹1 lakh. After withdrawal, the balance amount (over and above ₹1 lakh) will lie in their respective SB accounts, and can only be withdrawn when RBI raises the limit. The depositors of the bank, consisting mostly of senior citizens, now wait impatiently for clarity on their life savings which are in the form of FD certificates. “This limit of ₹1 lakh set by RBI has put senior citizens like me in a quandary. After unlocking the FD, the amount will be in SB account earning no interest then why should we close the FD,” asks Madhusudan.- Business Line

🍒 After SBI, HDFC Bank may join race to set up NPCI rival : HDFC Bank, the country’s largest private lender by assets, may join the race to set up an umbrella entity for retail payments, sources aware of the matter told FE. The bank is still at a preliminary stage of work on this. It is the second bank after the State Bank of India (SBI) to explore the possibility of setting up a payments body, envisaged as a rival to the National Payments Corporation of India (NPCI). “The matter is still in the preliminary stages, but HDFC Bank is certainly considering the NUE option as a possibility,” said a person close to the development. Apart from the two banking majors, Jio, Paytm, BSE and the National Stock Exchange (NSE) are known to be contemplating the setting up of their own umbrella entities. Industry executive Naveen Surya, who earlier headed ItzCash and is currently chairman emeritus of the Payments Council of India (PCI), may also apply for an NUE licence in his individual capacity. - Financial Express

🍒 BharatPe aims Rs 1,000 cr loan disbursal to merchants this fiscal : Merchant payment facilitating network BharatPe on Friday said it has disbursed Rs 80 crore loan in September, and targets Rs 1,000 crore disbursal in 2020-21. BharatPe has recorded disbursal of over Rs 80 crore in September 2020 and facilitated loan disbursals to the tune of Rs 150 crore through its partners in the September quarter, it said in a release. “BharatPe has ambitious plans of increasing the number of loan disbursals by 7x this year and would disburse loans worth Rs 1,000 crore in FY21,” the release added. At a time when collateral-free business loans are difficult to avail from other financial institutions, BharatPe’s success in lending has been fuelled by its sachet-sized daily repayment mechanism that it enables through its UPI QR codes, the company said. Existing merchants can avail collateral-free loans of up to Rs 7 lakhs at low-interest rates and with minimal paperwork.The company said its newly launched BharatLoan product has received an unprecedented response from the merchant community.- Financial Express

🍒 Europe’s central bank moves toward introducing digital euro : With consumers increasingly using cashless ways to buy things, the European Central Bank on Friday took a step closer to issuing a digital version of the euro currency shared by 19 countries, saying it had to be ready to launch digital money if a changing world requires it. The central bank issued a comprehensive report outlining the reasons why it might need to take the step. The ECB also said it would hold public consultations on the idea with citizens, academics and bankers. It said no decision has been made, and that any digital euro would complement cash, not replace it. The consultations will start Oct. 12. “The euro belongs to Europeans and our mission is to be its guardian,” said Christine Lagarde, ECB President. “Europeans are increasingly turning to digital in the ways they spend, save and invest. Our role is to secure trust in money. This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.” - Financial Express

🍒 Nirav Modi case: Fresh CBI charge sheet against retired PNB official for disproportionate assets : The CBI has filed a fresh charge sheet against Gokulnath Shetty, the Punjab National Bank Deputy Manager who allegedly helped Nirav Modi and Mehul Choksi perpetrate Rs 13000-crore fraud, and his wife for amassing disproportionate assets worth Rs 2.63 crore, officials said Friday. The agency has charged Shetty and his wife Asha Latha Shetty, a clerk in Indian Bank, under corruption charges for amassing assets worth over Rs 4.28 crore during the period 2011-17 when the scam was being perpetrated at the Brady House branch of PNB in Mumbai where he was posted, they said. Of the total assets, the CBI alleged they could not provide satisfactory explanation for assets worth Rs 2.63 crore, which were 2.38 times disproportionate to their known sources of income. The CBI looked into the relationship between Shetty and Modi-Choksi during which it dug into the assets amassed by the retired deputy manager, they said.- Financial Express

🍒 Insolvency & Bankruptcy Code: Successful resolution applicants can’t be permitted to withdraw offer, says NCLAT : The NCLAT has said once a resolution plan for a debt-ridden company is approved by the lenders, then the successful bidder cannot be permitted to withdraw its offer. A three-member NCLAT bench said the sanctity of resolution process has to be maintained and such withdrawal by a successful bidder “frustrate” the entire exercise of Corporate Insolvency Resolution Process (CIRP). Moreover, there is also no express provision in the Insolvency & Bankruptcy Code to allow any successful resolution applicant to “stage a U-turn”, it added. “We are of the considered opinion that the sanctity of resolution process has to be maintained and the resolution applicant whose resolution plan has been approved by Committee of Creditors cannot be permitted to withdraw its Resolution Plan,” said the bench headed by Acting Chairman Justice B L Bhat.- Financial Express

🍒 Franklin Templeton MF's 6 shut schemes generate Rs 8,262 crore since closure : Franklin Templeton Mutual Fund on October 2 said its six shut schemes have received Rs 8,262 crore from maturities, pre-payments and coupon payments since closing down in April. The schemes have received Rs 1,078 crore during September 1-15. This takes the total cash flows received till date since April 24 to Rs 8,262 crore, Franklin Templeton MF said in a statement. Franklin Templeton shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. - Moneycontrol.

🍒 Sensex, Nifty drop 1% in September; 236 stocks in BSE 500 rise : September did not augur well for equity benchmarks Sensex and Nifty as both closed the month with losses. Lacklustre global cues, rising cases of COVID across the globe, caution ahead of approaching US elections, uncertainty over the stimulus package, and talks of another lockdown in several parts of the world kept investors' sentiment subdued. Sensex fell by 1.45 percent and Nifty dropped 1.23 percent in September. On the other hand, BSE Midcap inched up by 0.3 percent but the BSE Smallcap index logged strong gains of 3.71 percent. Among the sectoral indices, BSE IT rose 10.66 percent followed by Pharma, Consumer Durables and Teck indices.

02.10.2020: Today's Banking / Financial News at a Glance

☕ 02.10.2020: Today's Banking / Financial News at a Glance

🍒 FM Nirmala Sitharaman asks banks to prepare cadre of officials well versed in local languages to better serve customers :  Finance Minister Nirmala Sitharaman on Thursday asked banks to prepare a cadre of people who can speak and understand a regional language in order to serve the customer better. This will bring them at par with other All-India services like Indian Administrative Services in true sense, she said while launching the Uniform Training Programme for Induction and Mid-Level Training, including a module on preventive vigilance for officers of public sector banks (PSBs). She said there is no point in banks claiming that they have pan-India presence when in some pockets, where Hindi does not work, their executives still need to learn native language to serve the customers. "We need to have a cadre of people who will have to understand the language of the state in which the posting happens," she said. Observing that recruitment in banks happens in an All-India fashion, she said officers are unable to speak the language of locals if the postings are deep into a state where Hindi is not spoken. "Of late, I have come across several friction points in some branch-level cases where because the locals come to the branch, and the branch officials are not able to speak the local language," she said. - economic times

🍒 Corporate relationships more than big-ticket lending for SBI now: Chairman : State-owned State Bank of India (SBI) has changed its approach of serving corporate clients to one extending beyond supply of credit, its Chairman Rajnish Kumar said on Thursday. Kumar said the new approach involves giving solutions to a variety of needs of the corporates and their stakeholders like supply chain vendors, distributors and employees. "Our relationship with corporates was more about giving credit. But, in the past couple of years, we have shifted focus," Kumar said at an event to announce a tie-up with the country's largest fast-moving consumer goods firm Hindustan Unilever. He said corporates have a large ecosystem consisting of their supply chain, logistics and their own employees. "If we look at them holistically, it is more than the need for money by them. It is the solutions that matters the most," he said. - economic times

🍒 SBI in tie-up to offer digital payment solutions to HUL retailers and distributors : State Bank of India (SBI) and Hindustan Unilever Ltd (HUL) have signed a memorandum of understanding (MoU), under which the bank will provide its digital payment and financing solutions to the FMCG company’s retailers and distributors. SBI will offer an instant paperless overdraft facility of up to ₹50,000 to retailers for their billings with distributors as well as financing facilities to HUL’s distributors. To ensure that customers get the option of digital payments in smaller towns as well, the bank will install point of sale (PoS) machines at multiple HUL touchpoints across the country, SBI said in a statement. Additionally, it will provide UPI-based solutions to HUL retailers for hassle-free, safe and instant cashless payments to their dealers from HUL’s retailer application ‘Shikhar’. The bank will also offer HUL employees the option of a corporate salary package via an SBI microsite hosted on HUL’s intranet.- Business Line

🍒 BoB launches third edition of Baroda Kisan Pakhwada : The third edition of ‘Baroda Kisan Pakhwada’ — a pan-India initiative to encourage farmers to connect with services offered by Bank of Baroda and Government — got under way on Thursday, with the bank this year placing special emphasis on promotion of certain new agri-focussed schemes under Atmanirbhar package. In focus during this Pakhwada period of October 1-16 are schemes for financing under Agriculture Infrastructure Fund, Animal Husbandry Infrastructure Development Fund and PM Formalisation of Micro Food Processing Enterprises Scheme. The Pakhwada, which is happening mainly in virtual mode will conclude on October 16 with the celebration of ‘Baroda Kisan Diwas’, coinciding with ‘World Food Day’, a statement issued by the bank said. - Business Line

🍒 Banks are going all out with offers to revive credit growth during festive season : Banks are putting in their best efforts — offering fee discounts, lower interest rates and a promise of quick loan processing — to revive credit growth, which is languishing at multi-decade lows because of the pandemic. Large lenders such as the State Bank of India, HDFC Bank and ICICI Bank have unveiled a host of special offers to take advantage of pent-up consumer demand during the festive season as they hope higher demand will make up for the lost first quarter. On Wednesday, HDFC Bank announced halving of processing fees on auto, personal and business growth loans, while removing the fees all together for two-wheeler loans. It is also offering special deals on various brands with credit and debit card purchases, in an attempt to boost consumption. - economic times

🍒 LVB shortlists three candidates for MD & CEO post; to send names to RBI in a week  : The Committee of Directors (CoD) at the troubled Lakshmi Vilas Bank (LVB) has shortlisted three candidates for the post of MD and CEO and the names will be sent to the RBI within a week, an official of the bank said. The lender's chief executive S Sundar and six other directors were voted out by shareholders earlier this week. Post the removal, the Reserve Bank appointed a three-member Committee of Directors (CoD) comprising independent directors Meeta Makhan, Shakti Sinha and Satish Kumar Kalra. "A bank cannot work without a managing director and chief executive officer (MD and CEO). So, we at the board got together and discussed how to move ahead without an MD (for the time being). "The bank had interview for the post... and we have selected three candidates. We will send our recommendations to the Reserve Bank within a week," Sinha told PTI.- economic times

🍒 Crisil expects bank credit to grow by up to 1 pc in FY21 : The banking system's credit growth will plummet to a multi-decadal low of up to 1 per cent in FY21, domestic credit ratings agency Crisil said on Thursday. For non-banking finance companies (NBFCs), the shock will be more pronounced and assets under management (AUM) may decline by up to 3 per cent during the fiscal, impacted majorly by wholesale segment, it said. It can be noted that non-food credit growth was at 5.5 per cent as of August 28 as compared to the year-ago period. Lenders have been undertaking targeted measures to increase the growth and are pinning hopes on festive season for growth to go up.Generally, bank credit growth is said to be directly linked to the economic activity, which is set to contract by over 10 per cent in FY21. "Given the grim economic outlook, the banking system's credit growth will come at between 0-1 per cent in FY21. This will be a multi-decade low," the agency's senior director Somasekhar Vemuri told reporters on a call. - economic times

🍒 India Post Payments Bank attains 3.6 crore customers amid the pandemic : Even as mode of transaction turning cashless the government-backed India Post Payments Bank (IPPB) is gaining ground amid a COVID-19 caseload. The bank attained a total customer base 3.6 crore and completed over Rs 38,500 crore financial transactions cumulatively until September 15, the bank said in a release. IPPB launched its operations just two years ago. In August last year, it had crossed the milestone of one crore customers. “The Aadhaar Enabled Payment System Service (AePS) has been a game changer of sorts in expanding access to banking and financial services for millions of poor and unbanked at the last mile with cash being delivered at their doorstep,” said Easwaran Venkateswaran, Interim MD & CEO, India Post Payments Bank. “The bank is committed to deliver value to its stakeholders through an adaptive and agile business model that leverages the power of digital and technology and change the way every Indian transacts,” he said. - economic times

🍒 Insolvency and Bankruptcy Code has resulted in substantial recoveries: GC Murmu : The Insolvency and Bankruptcy Code (IBC) has nudged the behaviours of debtors and creditors and this has resulted in substantial recoveries for creditors outside the framework of the code, said GC Murmu, comptroller and auditor general of India (CAG) on Thursday. “With the code in place, non-repayment of loan is no more an option and ownership of the firm is no more a divine right and equity is no more the only route to own a firm,” Murmu said, during an event commemorating the fourth annual day of the Insolvency and Bankruptcy Board of India (IBBI). The IBC was also reducing the incidence of default and helping to resolve the non-performing assets crisis affecting the banking system, he said. - economic times

🍒 CBI books Hyderabad-based firm, its MD for Rs 166-crore bank fraud : The CBI has booked Hyderabad-based Chadalavada Infratech Ltd and its Managing Director for allegedly cheating State Bank of India to the tune of over Rs 166 crore, officials said on Thursday. The company deals in electricity infrastructure such as transmission, distribution and construction of sub-stations and was contractor in projects in Assam, Bihar, Chhattisgarh, Karnataka and Maharashtra, they said. Initially, the company started participating in tenders of Rs 25 crore and gradually started getting orders from various state electricity boards, they said. The company has been doing business with State Bank of India since 2006 with an initial credit limit of Rs seven crore, which was increased to Rs 243 crore within four years, they said.. - economic times

🍒 SBI sees govt overshooting fiscal deficit numbers, pegs combined deficit at 13% : The union government is likely to overshoot the fiscal deficit numbers and the consolidated fiscal deficit of the Centre and the states is expected to touch 13 per cent of GDP during the current fiscal, says a report. According to the SBI Research report, the country's nominal GDP growth is expected to decline below the FY19 levels this year. "We are expecting a consolidated fiscal deficit of the Centre and the states to touch 13 per cent of GDP going by the current trends," the report said.According to the data released by the Controller General of Accounts (CGA), fiscal deficit, the gap between expenditure and revenue, during April-August was at 109.3 per cent of the annual target estimated in the Budget. In absolute terms, the fiscal deficit was at Rs 8,70,347 crore."Given these numbers (fiscal deficit had touched 109.3 per cent by August already at Rs 8.7 lakh crore), sticking to the budgeted borrowing numbers of (Rs 12 lakh crore) indicates large expenditure cuts that will be clearly inimical to growth," the report noted. The report did not offer separate numbers for the Centre and the states.- economic times

🍒 Digital payment transactions surge in lockdown to surpass pre-Covid levels : Notwithstanding the economic slowdown, digital payment transactions continued to surge in September and crossed pre-Covid levels in categories like UPI, IMPS and FASTags. According to data released by the National Payments Corporation of India on Thursday Unified Payments Interface (UPI) crossed the ₹3 lakh crore mark last month. As many as 180 crore transactions amounting to ₹3.29 lakh crore took place on the UPI platform in September, 2020 as compared to the 161 crore transactions of total ₹2.98 lakh crore recorded in August, 2020. Apart from March and April this year, when transactions on the platform had taken a hit due to the Covid-induced national lockdown, payments through UPI have seen an almost continuous rise. - Business Line

🍒 Former Union Bank of India official convicted in fraud case : The Special Judge for CBI Cases, Chennai, on Thursday sentenced R Kannan, former Chief Manager of Union Bank of India in Chennai’s Mount Road branch, to three years rigorous imprisonment with a fine of ₹2 lakh in connection with a bank fraud case involving top officials of Chennai-based National Medicines Private Ltd. In a press release, the Central investigating agency said it has registered a case on the allegations that between 2006 and 2007, the Directors of National Medicines conspired with Kannan and Parvathi Ramakrishnan, Manager of Standard Chartered Bank, Chennai, with an intention to cheat the Union Bank of India.. - Business Line

🍒 Dhanlaxmi Bank: RBI approves interim panel to run operations till new MD, CEO take charge : Dhanlaxmi Bank on Thursday said that the Reserve Bank of India has approved a three-member panel till the new managing director and chief executive officer take charge. The committee of directors will be constituted with Shri. G. Subramonia Iyer as chairman, G. Rajagopalan Nair and P.K Vijayakumar as members. The banking regulator has directed that the interim arrangement will not continue beyond four months, the bank said in the regulatory filing. The bank has been asked to complete the proceedings of appointing a new MD and CEO. - Live Mint

🍒 BharatPe clocks over ₹80 crore disbursements in September : Merchant payment network BharatPe said on Thursday it recorded disbursal of over ₹80 crore in September, making it the largest fintech lender for merchants in India during the pandemic. The company has facilitated loan disbursals to the tune of ₹150 crore through its partners in the current quarter. BharatPe also said that it has ambitious plans of increasing the number of loan disbursals by seven times this year and will disburse loans worth ₹1,000 crore in the rest of FY21. - Live Mint

🍒 Gold trades steady for the second straight day at Rs 50,413/10 gm, silver slips Rs 710/kg : Gold prices were steady for the second consecutive day at Rs 50,413 per 10 gram in the Mumbai retail market on sharp appreciation in the rupee despite positive global cues. The precious metal had lost Rs 567, or 1.12 percent, this week in the domestic market. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 37,810, Rs 46,178 and Rs 50,413, respectively, plus 3 percent Goods & Service Tax (GST). Silver prices slid Rs 710 to Rs 59,264 per kg from its closing on September 30.

🍒 Rupee surges 22 paise to 73.54 against US dollar : The rupee strengthened by 22 paise to 73.54 against the US dollar in opening trade on Thursday, as positive domestic equities and weak American currency buoyed investor sentiments. At the interbank forex market, the domestic unit opened at 73.60 against the US dollar, then gained further ground and touched 73.54, registering a rise of 22 paise over its previous close. On Wednesday, the rupee closed at 73.76 against the US dollar.

🍒 Sensex surges 629 points; Nifty reclaims 11,400 : The 30-share BSE index ended 629.12 points or 1.65 per cent higher at 38,697.05. The broader NSE Nifty surged 169.40 points or 1.51 per cent to close at 11,416.95.IndusInd Bank was the top gainer in the Sensex pack, zooming over 12 per cent, followed by Bajaj Finance, Axis Bank, ICICI Bank, Tech Mahindra, Bajaj Finserv and Kotak Bank. On the other hand, ITC, NTPC, Titan, Reliance Industries and ONGC were the laggards.

29.09.2020: Today's Banking / Financial News

29.09.2020: Today's Banking / Financial News

🍒 RBI postpones MPC meeting scheduled to begin tomorrow : The Reserve Bank of India (RBI) on Monday said the meeting of the Monetary Policy Committee (MPC), scheduled for September 29, 30 and October 1, 2020, is being rescheduled. The central bank did not cite any reason for the rescheduling the MPC’s meeting. It only said the fresh dates will be announced shortly. The August MPC meeting was the last one for external members Chetan Ghate, Professor, Indian Statistical Institute; Pami Dua, former Director, Delhi School of Economics; and Ravindra H. Dholakia, former Professor, Indian Institute of Management, Ahmedabad, who were appointed to the committee for a four-year term in 2016.- Business Line

🍒 SBI to waive processing fee on YONO loans, offers 10 bps off on home loans : In order to boost credit demand in the upcoming festive season, the State Bank of India will waive off processing fee for customers applying for car, personal and gold loans through digital banking platform YONO. It will also give a concession of upto 10 basis points (bps) on home loans. The country’s largest lender is offering the lowest interest rate starting from 7.5 per cent to customers opting for car loans. They will also get 100 per cent on-road finance on select models, SBI said in a statement. The lender's retail advances grew by 12.85 per cent (year-on-year) in the June quarter (Q1Fy21). Home loans, which constitute 22 per cent of the bank’s domestic advances, have grown by 10.72 per cent. - Business Standard.

🍒 RBI likely to keep rates unchanged : The Reserve Bank of India (RBI) is likely to keep interest rates unchanged in the monetary policy committee (MPC) meeting this week, according to a Mint survey of economists and bankers. Respondents to the poll—10 eminent economists and senior bankers—were unanimous that curbing inflation, currently hovering above 6%, remains the primary concern of the MPC. “We do not expect RBI to cut the policy rate while keeping its stance accommodative. It could instead focus on its intention to keep bond yields contained and announce plain vanilla OMOs (open market operations) or further Operation Twists," said Abheek Barua, chief economist at HDFC Bank Ltd. - Live Mint

🍒 RBI extends enhanced borrowing limit for banks under MSF till Mar 31 : Amid the ongoing economic woes created by the coronavirus pandemic, the Reserve Bank has decided to extend by six months the enhanced borrowing facility provided to banks to meet liquidity shortage till March 31, 2021. The RBI, as a temporary measure, had increased the borrowing limit for scheduled banks under the marginal standing facility (MSF) scheme from 2 per cent to 3 per cent of their Net Demand and Time Liabilities (NDTL) with effect from March 27, 2020. The facility, which was initially available up to June 30, 2020 was later extended up to September 30, 2020 in view of the disruptions caused by the COVID-19 pandemic. - economic times

🍒 RBI approves panel of directors to run day-to-day affairs at LVB : The Reserve Bank of India stepped in to address issues at Lakshmi Vilas Bank on Sunday, approving a Committee of Directors (CoD), composed of three independent directors, who would run the day-to-day affairs of the lender. "This CoD will exercise the discretionary powers of Managing Director and CEO in the ad-interim and is composed of Meeta Makhan - Chairperson of the Committee of Directors, Shakti Sinha - Member and Satish Kumar Kalra - Member," the private sector lender said in a regulatory filing. - Business Line

🍒 ‘Merger or strategic investor could turn around loss-making Lakshmi Vilas Bank’s fortunes’ : A possible merger with a stronger bank or the culmination of its proposed investment from Clix Group are two possible ways ahead for-crisis ridden Lakshmi Vilas Bank with experts pointing out that apart from balance sheet problems, the private sector lender has also faced governance issues. “This whole issue has been allowed to fester for a while. The. bank is past it’s ‘best before date’, and vote is a signal that investors have sent to RBI (Reserve Bank of India) to find a solution to this. Regarding the progress of the deal with Clix Group it will depend on who was negotiating it - the erstwhile CEO, the erstwhile board members or the RBI representatives. Depending on the answer, we will know whether it will continue or has to start afresh,” said Amit Tandon, founder and Managing Director of corporate governance and proxy advisory services, IiAS.- Business Line

🍒 Dhanlaxmi Bank tussle may hit customers, small investors : The tug of war between Dhanlaxmi Bank’s large individual shareholders with roots in Kerala and the new management that is keen on roping in new shareholders, is apparently the reason the old generation private sector Bank is currently in a state of flux. The All-India Bank Employees’ Association (AIBEA) had sought the intervention of the Reserve Bank of India in the affairs of the bank, stating that the new top management may be headed in the wrong direction, with its attempts to open more branches in northern States. Though the Thrissur (Kerala) headquartered bank has recorded continuous profits for the last nine quarters and has a healthy capital position, shareholders feel the ongoing tussle could adversely affect the interests of the majority of the bank’s customers in Kerala and small investors. As at June-end 2020, Dhanlaxmi Bank’s large individual shareholders included B Ravindran Pillai (10 per cent stake), CK Gopinathan (7.50 per cent), Kapilkumar Wadhawan and Yussuffali Musliam Veetil Abdul Kader (5 per cent each). - Business Line

🍒 DHFL moves NCLT over disbursements for 2 SRA projects : With the report of the Transaction Auditor revealing a monetary impact of ₹12,705.53 crore, the Administrator of scam hit Dewan Housing Finance Corporation Ltd (DHFL) has filed an application in respect of disbursements made towards the development of two SRA (Slum Rehabilitation Authority) projects. Also read: Forensic audit findings on DHFL. “Basis the investigation and observations of the Transaction Auditor, the Administrator has filed an application in respect of disbursements made towards the development of two SRA projects, before the Mumbai Bench of the National Company Law Tribunal … on September 27, 2020 against Kapil Wadhawan, Dheeraj Wadhawan, the developers and assignees of the SRA projects,” DHFL said in a regulatory filing on Monday. “The Application is in relation to certain irregularities in loan disbursements towards development of SRA projects, undertaken by the company in the past,” it further said. - Business Line

🍒 Paytm Money starts stockbroking business : Homegrown digital financial services platform Paytm on Monday announced that its wholly-owned subsidiary Paytm Money has opened stockbroking access for everyone in the country. “The company aims to onboard over 10 lakh investors this fiscal with the majority of them first-time users from small cities and towns,” it said in a statement, adding that it aims to drive higher penetration in investing with an easy-to-use product, low pricing and digital KYC with paperless account opening. Paytm Money has registered over 2.2 lakh investors, of which 65 per cent of users are in the age group of 18 to 30 years.- Business Line

🍒 NCLAT may reconsider its 5-member bench ruling on debt acknowledgement for insolvency plea : Appellate tribunal NCLAT may reconsider its own judgement passed by a five-member bench on the acceptability of debt entered in the balance sheet of a company for deciding the time frame for initiating insolvency proceedings. The issue pertains to whether entries in the balance sheet can be treated as an acknowledgement of debt for the purpose of calculating the three-year period limitation in terms of applicability of Section 18 of the Limitation Act, 1963. Limitation Act is also applicable for proceedings under the Insolvency and Bankruptcy Code (IBC). - economic times

🍒 Chinese banks to start enforcement action against Anil Ambani’s worldwide assets : The three e Chinese banks to whom Anil Ambani owes more than $716 million (Rs 5,276 crore), as well as significant legal costs, have decided to pursue their rights against him on his worldwide assets, following the beleaguered Reliance Group chairman’s English high court cross-examination on Friday. Once the world’s sixth-richest person, Ambani was ordered by a UK court on May 22 this year to pay $716 million (Rs 5,276 crore) including interest and £750k (Rs 7.04 crore) in legal costs to the Industrial and Commercial Bank of China, Export-Import Bank of China and China Development Bank. By June 29, the debt he owed, after taking accrued interest into account, had risen to $717.67 million.- economic times

🍒 SC adjourns loan moratorium interest case to October 5 : The Supreme Court on Monday adjourned the hearing on relief for the loan moratorium issue till October 5 as the government submitted that a decision on relief will be taken soon. According to the daily order of the court, Solicitor General Tushar Mehta submitted that the issues are under active consideration of the Government of India and, only after a decision is taken, an affidavit along with the decision can be filed. “The affidavit will be sent by October 1 through email to the appearing counsel,” he told the Bench comprising Justices Ashok Bhushan, R Subhash Reddy and MR Shah. - Business Line

🍒 Fake currency notes worth Rs 1 crore deposited in RBI : Fake currency notes worth Rs 1 crore have been deposited in various banks which then deposited the same in the Reserve Bank of India. The assistant manager of Reserve Bank of India in Lucknow’s Metropolitan Kotwali has filed a complaint after fake notes worth Rs 1 crore were deposited in several banks between 2017 and 2018. Assistant manager Ranjana Maravi said 15,436 fake notes were deposited in the currency chest of the Reserve Bank of India between October 2017 and March 2018. During the investigation, 9,753 notes of Rs 500 and 5,783 notes of Rs 1,000 were found to be fake. The total fake notes recovered are close to Rs 1.05 crore. Ranjana Maravi has also asked the metropolitan police to conduct a forensic examination of the seized notes. - tribune

🍒 Lenders give clean chit to Reliance Commercial Finance as GT audit finds no fraud : A group of lenders, including the National Bank for Agriculture and Rural Development (Nabard), has given clean chit to Reliance Commercial Finance Ltd (RCFL), the NBFC arm of Reliance Capital, after an independent forensic audit report from Grant Thornton did not detect any fraud in the RCFL account. As per the report, of the total consolidated debt owed to banks, RCFL accounted for Rs 11,620 crore, Reliance Home Finance Ltd (RHFL) Rs 7,430 crore and Reliance Capital (standalone) Rs 6,750 crore of debt. The consolidated debt includes term loans, cash credit and non-convertible debentures. Last year, lenders had given a go-ahead to appoint Grant Thornton to conduct a forensic audit of two Reliance Capital arms, the listed-RHFL and RCFL. According to banking sources, the consortium of lenders led by Bank of Baroda has accepted the forensic audit report submitted by Grant Thornton, which indicates that no fraud has taken place. It is to be noted that appointment of auditor is part of the standard operating procedure for all companies going through the ICA (inter-creditor agreement) process, and is a mandatory requirement under the guidelines laid down by the Reserve Bank of India. Sources further said that clean chit has been given to RCFL as the lenders have accepted the audit report. - financial express

🍒 Gold prices dip marginally to Rs 49,757 per 10 gram; silver gains Rs 594 : Gold prices fell marginally by Rs 89 to Rs 49,757 per 10 gram in the Mumbai retail market on rupee depreciation, weak global cues and rally in the equity market. The precious metal traded under pressure as investors are awaiting the US presidential election debate and key data from China. The rate of 10 gram 22-carat gold in Mumbai was Rs 45,577 plus 3 percent GST, while 24-carat 10 gram was Rs 49,757 plus GS 

T. The 18-carat gold quoted at Rs 37,318 plus GST in the retail market. Silver prices gained Rs 594 to Rs 58,071 per kg from its closing on September 25.

🍒 Rupee opens on a flat note versus dollar : The rupee started the session on a flat note against the dollar, opening at 73.68 from the previous close of 73.67 levels. It has been trading in the band between 73.56 and 73.68 for the session. After taking support at around 73.8, the rupee started to strengthen and appreciated to 73.5 levels. As long as the key support level of 73.8 holds, the near-term view will remain positive for the session. A strong move beyond 73.55 can take the INR to 73.3 and then to 73 levels in the short term.

🍒 Sensex rallies 593 points; financial, auto stocks take charge : The 30-share BSE Sensex settled 592.97 points or 1.59 per cent higher at 37,981.63, while the NSE Nifty surged 177.30 points or 1.60 per cent to 11,227.55. In the Sensex pack, IndusInd Bank was the top gainer, soaring around 8 per cent, followed by Bajaj Finance, Axis Bank, PowerGrid, ONGC, ICICI Bank, Sun Pharma and M&M.On the other hand, HUL, Infosys and Nestle ended in the red. “Key indices ended high as bulls led the charge backed by financials and well supported by auto and pharma stocks,” said S Ranganathan, Head of Research at LKP Security

25.09.2020: Today's Banking / Financial News

 25.09.2020: Today's Banking / Financial News at a Glance TV

🍒 Banks sanction loans worth Rs 1.77 trn to 4.4 mn MSMEs under ECLGS scheme : The Finance Ministry on Thursday said banks have sanctioned loans of about Rs 1.77 lakh crore to 44.2 lakh business units under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling under the slowdown caused by the coronavirus pandemic. However, disbursement against the sanctioned amount stood at Rs 1,25,425 crore to 25.74 lakh MSME units till September 21. The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May to mitigate the distress caused by the lockdown due to COVID-19 by providing credit to different sectors, especially micro, small and medium enterprises (MSMEs). The latest numbers on ECLGS, as released by the Finance Ministry, comprise disbursements by all 12 public sector banks (PSBs), 24 private sector banks and 31 non-banking financial companies (NBFCs). "As of 21 Sept 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs and private banks to #MSMEs and individuals stands at Rs 1,77,353 crore, of which Rs 1,25,425 crore has already been disbursed," the finance minister said in a tweet. - Business Standard

🍒 RBI releases technology vision for cyber security for urban co-op banks : The Reserve Bank of India on Thursday came out with a Technology Vision for Cyber Security for Urban Co-operative Banks for 2020-23 listing action points for these lenders. “The number, frequency and impact of cyber incidents and attacks have increased manifold in the recent past, more so in the case of financial sector including Urban Co-operative Banks (UCBs). It has, therefore, become essential to enhance the security posture of UCBs so as to prevent, detect, respond to and recover from cyber-attacks,” the RBI said. - Business Line

🍒 Shift towards digital banking is permanent: SBI Chairman, Rajnish Kumar : tate Bank of India Chairman Rajnish Kumar on Wednesday said the number of consumers moving away from branch level transactions and adopting digital modes is increasing, and this change is going to be permanent. He said currently only seven out of 100 transactions are taking place at SBI branches as against 20 out of 100 transactions three years ago. "Progressively, we are seeing that there has been a shift away from branches and even from ATMs. The number of transactions on ATMs have come down from 55 to 29 per 100. On the other hand, the digital transactions, which are on mobile and internet banking, have gone to 55 out of 100 transactions," Kumar said at the Global Business Summit. - economic times 

🍒 Ujjivan Small Finance Bank forays into small commercial vehicle finance for tier II, III cities :  Ujjivan Small Finance Bank (SFB) on Thursday said it will offer small commercial vehicle finance for its customers in tier II and III cities. Ujjivan SFB said as part f the 'Raftaar Loans' product mix, the customised offerings will be available across southern and eastern regions: Karnataka, Tamil Nadu, and West Bengal. The product mix for Raftaar Loans also includes two-wheeler and E-3-wheeler (E-3W) loans. The service will be extended to other branches and locations over time based on the demand, it said in a release. "We remain cognizant of our customers' needs and based on the demand, we decided to foray into small commercial vehicle funding segment. This reinforces our portfolio, and serves as an alternate mode of income generation for our aspiring mass-market customers. - economic times 

🍒 HDFC Bank sets minimum outstanding at ₹25,000 for restructuring retail loans : The country’s largest private sector lender HDFC Bank has set out a minimum outstanding of ₹25,000 for restructuring of retail loans. “Minimum outstanding balance required to convert the card or loan outstanding is ₹25,000,” the lender has answered in the frequently asked questions (FAQs) on loan restructuring. “The reduction of income and its financial impact on the customer will be reviewed by the bank basis the documents or information provided which does show the drop in cash flow due to the Covid-19 impact. The bank will assess the viability of the customer to pay the restructured EMIs basis the documents provided, before granting the restructuring,” it further said, adding that the repayment track record of the customer, and the responses given by the customer while claiming moratorium earlier will also be factored in the restructuring decision. - Business Line

🍒 RBI levies ₹5 lakh penalty on Shriram City Union Finance : The Reserve Bank of India has imposed a monetary penalty of ₹5 lakh on Chennai-based Shriram City Union Finance for non-compliance with its directions on verification of the ownership of gold jewellery contained in NBFC - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and on reporting of frauds contained in Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016. “This action is based on  deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers,” the RBI said in a statement on Thursday.  - Business Line

🍒 Banks working to speed up ICA process for resolution of stressed loans: IBA : Banks are working together in removing hurdles and speeding up the process of execution of inter-creditor agreement (ICA) in order to ensure faster resolution of bad assets amid Covid-19 pandemic, Indian Banks' Association chief executive Sunil Mehta said. He said a draft on the same has been already given to banks for their suggestions. As per the RBI, in cases where a resolution has to be implemented, all lenders will have to enter ICA within a review period.The ICA shall provide that any decision agreed by lenders representing 75 per cent by value of total outstanding credit  facilities (fund-based as well as non-fund based) and 60 per cent of lenders by number shall be binding upon all the lenders. "The point is we want to go for a system where bottlenecks in execution of the ICA are removed. The moment threshold levels reached 60 per cent by number and 75 per cent by value, as per the RBI regulatory guidelines, the ICA can be executed immediately, maybe, within a few weeks. The outer limit is one month," Mehta said during a virtual event organised by Dun and Bradstreet. - Business Standard

🍒 DHFL FD holders move NCLT for clearing dues : Holders of Dewan Housing Finance Corporation (DHFL)’s fixed deposits (FDs) have filed a fresh petition at the National Company Law Tribunal (NCLT), Mumbai, seeking repayment of matured FDs held by senior citizens and critically ill people. Depositors moved NCLT after  the committee of creditors (CoC) refused any immediate relief to them. The Supreme Court had earlier directed deposit holders to seek relief from CoC for their dues. FD holders have admitted claims of Rs 5,375 crore from DHFL. NCLT is set to hear petition on September 25. Vaibhav Guliani, a practicing advocate in Supreme Court, who is represnting FD holders in the matter, said that payment to fixed deposits shall be considered as a regular course of business by financial service provider. - financial express

🍒 RBI announces speciFOl OMOs of simultaneous sale, purchase of G-Secs worth Rs 10,000 crore each : The Reserve Bank of India (RBI) on Thursday announced it will conduct simultaneous purchase and sale of government securities under open market operation (OMO) for an aggregate amount of Rs 10,000 crore each on October 1. “On a revFORWew of the current liquidity and financial conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of FOOovernment securities under open market operation (OMO) for an aggregate amount of Rs 10,000 crore each on October 1, 2020,” it said in a statement. The RBI further said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets. On October 1, the RBI would purchase three securities totalling Rs 10,000 crore and selling two securities of the same amount. The result of the auctions will be announced on the same day. - financial express

🍒 Citi appoints Arjun Chowdhry as acting head of consumer banking biz in India : Citigroup has appointed Arjun Chowdhry as the acting head of its consumer banking business in India, officials said on Thursday. Chowdhry, who has been with Citi for 25 years, currently serves as the head of credit cards, payments and unsecured lending for the American bank in India.  - financial express

🍒 IBC suspension gets 3 months’ extension : The Centre has extended by three months the suspension of insolvency proceedings initiation against the corporate debtor for defaults arising post March 25, when the Covid-19-induced lockdown was announced.  It may be recalled that in response to the pandemic, the government had, on June 5, come out with an ordinance to prohibit the initiation of insolvency proceedings for defaults arising during the six months from March 25, 2020 (extendable up to one year).- Business Line

🍒 Personal Guarantors: IBBI, govt to defend legal validity of IBC provisions : Insolvency regulator IBBI and the government are expected to go all out to defend the legal validity of the IBC provisions on personal insolvency against personal guarantors to corporate debtors, when the current matters on legal challenges come next before the Delhi High Court on October 6. Some personal guarantors who are in the dock are now claiming that enforcing certain IBC provisions in relation to personal guarantors to corporate debtors amounted to an unconstitutional usurpation of legislative power by the executive and they are challenging the provisions as “wholly impermissible in law”, sources said..- Business Line

🍒 Australian bank Westpac to pay record $920 million fine to settle money laundering case : Westpac, one of Australia’s largest banks, on Thursday announced thatFOROit had reached an agreement with the Australian government’s financial intelligence agency Australian Transaction Reports and Analysis Centre (AUSTRAC) to settle a civil lawsuit. Westpac has agreFOOd to pay a civil penalty A$1.3 billion ($920 million). The lawsuit revealed over 23 million breaches of the country’s Anti-Money Laundering and Counter-Terrorism Financing Act, 2006. AUSTRAC had begun civil proceedings against Westpac in November last year..- Business Line

🍒 IL&FS fiasco: SEBI hikes penalty on CARE, ICRA to ₹1 cr each : SEBI has hiked its penalty to ₹1 crore from the earlier ₹25 lakh on credit rating agencies ICRA and CARE for their lapses in assigning ratings to the non-convertible debentures of IL&FS, which later defaulted in payments. The IL&FS fiasco came to light in 2018 after which SEBI undertook an examination of the rating agencies. SEBI said it had examined the order passed by its Adjudicating Officer (AO) and observed that the penalty levied was “erroneous and not commensurate with the overall impact these violations had on the market”..- Business Line

🍒 India Ratings maintains negative outlook on NBFCs, HFCs for H2 FY21 : Domestic rating agency India Ratings and Research on Thursday said it has maintained a negative outlook on non-banking financial companies (NBFCs) and housing finance companies (HFCs) for the second half of 2020-21.  It said growth in assets under management would be flattish for NBFCs as against its earlier estimate of 8-10 per cent y-o-y, and in lower single digits for HFCs in 2020-21. - Economic Times

🍒 Gold price today: Yellow metal declines by Rs 505 to Rs 49,822/10gm; silver crashes by Rs 2,437 a kg : Gold prices weakened for the fourth successive day by Rs 505 to Rs 49,822 per 10 gram in the Mumbai retail market on firm US dollar and sell-off in equity markets.The precious metal is volatile today after a sharp 2.1 percent decline yesterday. The rate of 10 gram 22-carat gold in Mumbai was Rs 45,637 plus 3 percent GST, while 24-carat 10 gram was Rs 49,822 plus GST. The 18-carat gold quoted at Rs 37,367 plus GST in the retail market. Silver prices declined by Rs 2,437 to Rs 56,471 per kg from its closing on September 23.

🍒 Sensex tanks over 1,100 points; Nifty at 10,800 : Equity indices on Thursday fell over 1,100 points dragged by Auto, IT and banking stocks amid a selloff in global equities after US Federal Reserve officials warned the US economy was worse than the market was pricing in. Expiry of September derivatives contracts amid a bearish sentiment, added to investor woes.At close, the Sensex ended down 1,114 points at 36,553 while the Nifty tanked 326 points to 10,805.The Sensex hit an intraday high of 37,304 and a low of 36,495. Similarly, the Nifty touched an intraday high of 11,015 and a low of 10,791. The market breadth was negative 1,509 shares declined, against advance of 327 shares. Among the Nifty50 constituents, 47 stocks ended with losses in today's session.

🍒 Rupee slips 32 paise to 73.89 against US dollar : he rupee depreciated 32 paise to settle at 73.89 (provisional) against the US dollar on Thursday as sell-off in domestic equities and foreign fund outflows weighed on investor sentiment. At the interbank forex market, the rupee opened on a weak note at 73.82, then fell further to finally close at 73.89 against the American currency, registering a fall of 32 paise over its last close. 

24.09.2020: Today's Banking / Financial News

24.09.2020: Today's Banking / Financial News at a Glance

🍒 RBI says it has no information on loans of top 100 wilful defaulters written off by banks :The Reserve Bank of India said it has no information about loans of the top 100 defaulters and wilful defaulters that banks had written off, just over four months after it had put the total write-off of the largest 50 wilful defaulters at Rs 68,600 crore. “The information sought is not available with us,” the central bank said in a recent response to an RTI petition by a Kolkata-based activist, who had sought details on the loans that had been written off, along with the amount that each of the 100 defaulters and wilful defaulters had owed to banks and the period when the loans to them had been sanctioned and disbursed. “No defaulter information is collected as such by us,” the RBI said, responding to another query, which was part of an RTI petition. ET has seen a copy of the RBI response dated August 31. - Economic Times

🍒 No clamour or rush for restructuring of loan: SBI Chairman, Rajnish Kumar : Contrary to market expectations, there was not too much demand or clamour for restructuring of loans as permitted by RBI recently to beat the COVID-19 related stress, SBI Chairman Rajnish Kumar said. He expects not more than Rs 1.5 lakh crore worth loans would avail restructuring benefit even though people have projected it to be around Rs 8 lakh crore. "On the banking side, what I am saying, there is not too many demand. It may be contrary to what the public discourse is. Reasons could be many. One is lot of clean-up has already happened and lot of deleveraging done. More than the banks, corporates themselves are reluctant to carry the tag of restructuring. That is the feeling I am getting," he said.- Economic Times

🍒 SBI to levy 1% more on working capital under debt restructuring : State Bank of India will charge 1 per cent above the current pricing on working capital loans for limits sanctioned under the resolution framework. Any concessions provided during the resolution period will result in right of recompense (compensation for loss). There will be a change in pricing to offset the cost of additional provisions that the bank has to make for extending the benefits under the resolution, according to SBI’s frequently asked questions for debt recast for non-personal segment. Promoters of units or firm will have to bring in minimum contribution (capital infusion) of 10- 15 per cent of the additional loan facilities sanctioned under the resolution plan. - Business Standard

🍒 55% of customers may seek loan recast: Paisabazaar survey : More than half the customers may approach their banks for loan restructuring, although 40 per cent of those who took the moratorium could afford to pay their EMIs, a new survey by Paisabazaar.com has found. “Fifty-five per cent of the customers responded that they would approach their lender to restructure their loan in some form to provide relief. Though this includes many whose income has not been affected due to the coronavirus pandemic and, hence, their lenders may not find them eligible for a loan recast plan,” said the survey report ‘Dealing with Debt - How India plans to pay EMIs’. A total of 8,616 participants, in the age group of 24-57 years, responded to the survey and had outstanding debt of over ₹1 lakh. The responses were registered from 37 cities. - Business Line

🍒 IDFC First Bank to launch contactless debit card facility next week : IDFC First Bank on Wednesday said it will launch contactless debit card-based payment facility, SafePay, next week allowing transactions up to Rs 20,000 per day. IDFC First Bank is set to launch the digital facility that will allow payments by simply waving one's smartphone against a near field communication (NFC)-enabled PoS terminal, the bank said in a release. Users can simply wave, pay and go, making the payment process not only touch-free but also faster, simpler and safer, it said. The bank also claimed it is the first such facility to be made available in an integrated mobile banking app. - Business Standard

🍒 Compliance officer for banks prescriptive, not right thing: Ex-SBI MD : The prescriptive way of having a dedicated compliance officer is not the right thing and by initiating such a move, which is in line with other countries, the Reserve Bank is making the compliance function as the overall incharge of a lender, a senior banker said on Tuesday. V G Kannan, who served as the chief executive of industry lobby Indian Banks Association till recently after retiring as the managing director of SBI, said the risk function is as important and it cannot be equated with that of compliance. Earlier this month, the RBI asked banks to appoint chief compliance officers (CCO) with a view to getting uniformity in the approach followed by lenders. "The prescriptive way of having a compliance officer may not be the right thing. It should be left to the individual organization depending on their perception of the risks, Kannan said speaking at a NSE webinar. He explained that some banks can be absolutely compliant even without such an officer and also made it clear that he does not wish the banks to be completely non-compliant as well. - Business Standard

🍒 HDFC Bank sets minimum outstanding at ₹25,000 for restructuring retail loans : The country’s largest private sector lender HDFC Bank has set out a minimum outstanding of ₹25,000 for restructuring of retail loans. “Minimum outstanding balance required to convert the card or loan outstanding is ₹25,000,” the lender has answered in the frequently asked questions (FAQs) on loan restructuring. “The reduction of income and its financial impact on the customer will be reviewed by the bank basis the documents or information provided which does show the drop in cash flow due to the Covid-19 impact. The bank will assess the viability of the customer to pay the restructured EMIs basis the documents provided, before granting the restructuring,” it further said, adding that the repayment track record of the customer, and the responses given by the customer while claiming moratorium earlier will also be factored in the restructuring decision. Customers can visit the bank’s website or contact the relationship manager to fill the application. “The link for application will be updated shortly,” it further said. - Business Line

🍒 HDFC to raise up to Rs 5,000 crore by issuing bonds : Mortgage lender Housing Development Finance Corporation Ltd (HDFC) on September 23 said it will raise up to Rs 5,000 crore by issuing bonds on a private placement basis. The issue size for the secured redeemable Non-Convertible Debentures (NCDs) will be Rs 2,500 crore with an option to retain oversubscription of up to Rs 2,500 crore, HDFC Ltd said in a regulatory filing. - Moneycontrol.com

🍒 Parliament passes Labour Bills, making it easier for employers to hire and fire workers : Parliament on Wednesday passed the three key labour reform bills that will provide greater flexibility to employers to hire and fire while ensuring social security for workers. The three bills---- Code on Occupational Safety, Health and Working Conditions, Industrial Relations Code and Social Security Code, were passed in the Upper House by voice vote amid boycott by the opposition over suspension of eight members. Replying to the debate on the three labour reforms bills in the house, labour Minister Santosh Gangwar said: "The purpose of labour reforms is to provide a transparent system to suit the changed business environment."- Economic Times

🍒 A year later, PMC Bank depositors still struggling to get their money back : For depositors of the tainted Punjab and Maharashtra Cooperative (PMC) Bank, the situation is not very different from what it was almost a year ago when the RBI placed withdrawal restrictions on the bank after the mega scam involving misreporting of loans with senior bank officials' involvement came to light. Exactly one year ago, on September 23, 2019, the Reserve Bank of India had superseded the board of the multi-state urban cooperative bank and placed it under various regulatory restrictions after detection of certain financial irregularities. Initially, the RBI had allowed depositors to withdraw Rs 1,000 which was later raised to Rs 1 lakh per account to mitigate their difficulties. In June this year, the RBI had extended the regulatory restrictions on the cooperative bank by another six months till December 22, 2020. - Business Standard

🍒 Morgan Stanley Fund bets big on private banks in India : A Morgan Stanley fund is betting some private-sector lenders in India will emerge from the coronavirus pandemic stronger than others. Kristian Heugh, co-manager of the $4.3 billion Asia Opportunity fund, expects private banks with strong deposit franchise and quality underwriting standards will gain market share from both state-owned lenders and the weaker private ones. “The events of this year are likely to accelerate both these factors strong banks will gain share at a faster pace and the pace of digital adoption has picked up sharply,” Heugh said in an interview. His Asia excluding Japan-focussed equity fund was up 37 per cent this year through August. - Business Line

🍒 JP Morgan says India making progress on global debt index debut : Measures taken by Prime Minister Narendra Modi’s government in opening the sovereign debt market to foreigners have boosted prospects for inclusion in major global indexes, according to JPMorgan Chase & Co. “India is making progress toward opening up its market to foreign investors and establishing a track record for future inclusion in major bond indices, including the GBI-EM Global Diversified Index,” JPMorgan Index Research Team said by email. Reuters on Monday reported JPMorgan had kept Indian bonds out of its flagship indexes. - Business Line

🍒 UTI AMC to launch Rs 3,000 crore-IPO on September 29; SBI, LIC, T Rowe to divest stake : UTI Asset Management Company will launch its initial public offering for subscription on September 29. The company plans to raise Rs 3,000 core via the issue, sources pivy to the matter told Moneycontrol. The public issue will consist of an entire offer for sale of 3,89,87,081 equity shares by State Bank of India, Life Insurance Corporation of India (LIC), Punjab National Bank, Bank of Baroda and T Rowe Price International. State Bank of India, LIC and Bank of Baroda are going to divest 1,04,59,949 equity shares each, while PNB and T Rowe Price International 38,03,617 equity shares each via offer for sale. - Moneycontrol.com

🍒 SEBI bars DHFL promoters from accessing securities market : The Securities and Exchange Board of India (SEBI) has barred the promoters of Dewan Housing Finance Corporation Ltd (DHFL) from accessing the securities market or even associating themselves with any listed company. “The promoters of DHFL during the period from April 1, 2006 to March 31, 2019 namely — Kapil Wadhawan, Dheeraj Wadhawan, Rakesh Kumar Wadhawan, Sarang Wadhawan, Aruna Wadhawan, Malti Wadhawan, Anu S Wadhawan, Pooja D Wadhawan, Wadhawan Holding Pvt Ltd, Wadhawan Consolidated Holding Pvt Ltd, Wadhawan Retail Venture Pvt Ltd and Wadhawan Global Capital Ltd (formerly known as Wadhawan Housing Pvt Ltd) — are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly,” SEBI said in its interim ex-parte order. - Business Line

🍒 RBI to intervene to prevent Rupee gains despite signs of leniency: ICICI : India’s central bank will continue to intervene to prevent any sharp appreciation in the rupee, even after signs of leniency toward currency gains in recent weeks, according to ICICI Bank Ltd. The Reserve Bank of India’s forex strategy has been in sharp focus after it stepped away from dogged dollar buying amid large inflows. The perception that the RBI was easing back on greenback purchases was accentuated by a rare comment from policy makers in late August that the appreciating rupee had helped tackle imported inflation. Inflation has spiked in India, with the headline figure above the upper 6% limit of the RBI’s tolerance band for five months. The central bank has a fine balancing act: It is trying to keep liquidity adequate as the economy slumps, while managing large capital flows and trying to keep inflation in check. “We believe that RBI is cognizant of the fact that an overvalued rupee is an adverse terms of trade for local industries and given the challenges on the growth front, a sharp appreciation of the rupee is not desirable,” said B. Prasanna, group head for global markets sales, trading and research at ICICI Bank Ltd. in Mumbai. - Business Standard

🍒 Gold prices slip for third day in a row to touch Rs 50,327 per 10 gram; silver tanks Rs 1,059 : Gold prices gained for the third straight day by Rs 356 to Rs 50,327 per 10 gram in the Mumbai retail market on firm US dollar and weak global cues. The precious metal prices fell below $1,900/oz on global uncertainties over rising coronavirus cases and delay in fiscal stimulus. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,100 plus 3 percent GST, while 24-carat 10 gram was Rs 50,327 plus GST. The 18-carat gold quoted at Rs 37,745 plus GST in the retail market. Silver prices declined by Rs 1,059 to Rs 58,908 per kg from its closing on September 22.

🍒 Rupee gains marginally against US dollar : The rupee appreciated by one paisa to close at 73.57 (provisional) against the US dollar on Wednesday, as investors turned cautious amid weak domestic equities. At the interbank forex market, the rupee opened weak at 73.59 against the greenback and moved in a close range. It finally settled one paisa lower at 73.57 against the American unit.

🍒 Central Bank of India drops over 5% on QIP plan : The floor price for Central Bank of India's share sale through a qualified institutional placement, which opened on Tuesday, has been set at ₹16.18 apiece. The Bank board will meet on Friday to consider and approve the issue price for equity shares to be allotted to qualified institutional buyers, it said in a notice to the stock exchanges. Earlier, the State-owned Central Bank of India said it would raise up to ₹5,000 crore of equity capital through various modes, including follow on public offer, rights issue or QIPs, to maintain its capital adequacy ratio. The shares of the bank dropped over 5 per cent to trade at ₹16.35.

🍒 Sensex, Nifty end marginally lower; Bharti Airtel down 8% : Extending its losses for the fifth straight session, equity benchmark Sensex ended 66 points lower on Wednesday, tracking weakness in Bharti Airtel, TCS and Bajaj Finance despite mostly positive cues from global markets. After opening on a positive note, the 30-share BSE index pared all intra-day gains to settle 65.66 points or 0.17 per cent down at 37,668.42. Similarly, the NSE Nifty fell 21.80 points or 0.20 per cent to close at 11,131.85. Bharti Airtel was the top laggard in the Sensex pack, tanking around 8 per cent, followed by Tata Steel, IndusInd Bank, NTPC, PowerGrid, ONGC and TCS. On the other hand, Axis Bank, HUL, Infosys, Nestle India and HDFC Bank were among the gainers.