🍒 Bank Board recommends names for two SBI MDs : The Banks Board Bureau (BBB) Monday recommended the candidatures of Swaminathan Janakiraman and Ashwini Kumar Tewari for the two vacant managing director posts at the State Bank of India. While Janakiraman is now the deputy managing director – finance at SBI, Tewari heads the SBI Cards and Payment Services. Janakiraman had joined the country's largest lender in 1988 as a probationary officer and worked across the verticals both in India and New York. Similarly, Tewari was appointed as MD and CEO at the SBI Cards a few months ago as the incumbent Hardayal Prasad opted for voluntary retirement. In his previous role, Tewari was the country head of the US operations of SBI since April 2017. The BBB interfaced with 16 candidates from various nationalised banks and State Bank of India on October 5, for vacancies of Managing Director in SBI, the bureau said. Two other candidates including Prakash Chandra Kandpal and Alok Kumar Choudhary have been put on the reserve list for the vacancies. - economic times
🍒 SC asks Centre, RBI to file Kamath panel suggestions, their decisions on loan moratorium : The apex court's direction came after the Finance Ministry decided to grant relief to individual borrowers as well as medium and small industries by agreeing to waive compound interest (interest on interest) charged on loans of up to Rs 2 crores for a six-month moratorium period announced due to the pandemic. The Supreme Court asked the Centre and the RBI on Monday to place on record the K V Kamath committee recommendations on debt restructuring in view of COVID-19 related stress on various sectors as well as the notifications and circulars issued so far on loan moratorium. The apex court’s direction came after the Finance Ministry decision to grant relief to individual borrowers as well as medium and small industries by agreeing to waive compound interest (interest on interest) charged on loans of up to Rs 2 crores for a six-month moratorium period announced due to the pandemic. A bench comprising Justices Ashok Bhushan, R Subhash Reddy and M R Shah took up the pleas alleging that banks have decided to charge interest on the EMIs which have not been paid by borrowers from March 1 to August 31, taking benefit of the RBI’s loan moratorium scheme. - financial express
🍒 Bandhan Bank plans giant leap into retail lending as part of its evolution as universal bank : Private sector Bandhan Bank plans a giant leap into retail lending as part of its evolution as a universal bank with a five-year business plan. The predominantly microfinance lender would now go all out with car, two-wheeler, consumer durable loans to raise its profile with urban and semi-urban middle class borrowers, managing director Chandra Shekhar Ghosh told ET. The Kolkata-based lender recently hired Tata Capital's former retail asset head, Vineet Tripathi, to drive the new business lines. Tripathi’s social media profile showed he joined the bank in August. Ghosh said the bank would now energise its 1045 branches to push retail loan products, unlike in the past, when branches were used only to grow liability businesses. - economic times
🍒 Banks relieved as govt will foot bill for interest waiver : The government’s proposal to pick up the tab for the waiver of 'interest on interest' on loans of up to Rs 2 crore clears the uncertainty over bank earnings for the quarter, giving them room to offer liberal loan-rejig terms to stressed borrowers. The relief is likely to cost the Centre Rs 5,000-5,500 crore, according to the finance ministry’s initial estimates. Rating agency ICRA has pegged the cost at Rs 5,000-7,000 crore. Even those eligible borrowers who had not availed of the moratorium will get some relief, possibly through a partial waiver of interest on the principal during the moratorium period. The Supreme Court will on Monday take up the Centre’s affidavit on interest relief submitted on October 3. The government will seek parliament’s nod for the additional expenditure on this count. “It would cost about Rs 5,000-5,500 crore,” a government source told ET. This spending will be over and above Covid-related support of Rs 3.7 lakh crore to micro, small and medium enterprises (MSMEs) as well as Rs 70,000 crore assistance on home loans extended through the Garib Kalyan Yojana besides the Atmanirbhar package announced earlier.- economic times
🍒 September sees strongest recovery since pandemic broke out: HDFC : The Indian economy may be slowly returning to strength with the month of September marking the strongest turnaround since the pandemic broke out, India’s largest mortgage lender indicated on Monday. The lender added that business levels had surpassed those done same time last year. Citing its September quarter numbers HDFC said trends were indicative that business was reverting to pre-Covid levels. “The month of September 2020 has seen the strongest recovery since the outbreak of the pandemic and the levels have exceeded the levels in the corresponding month of the previous year,” HDFC said in an exchange notification. - economic times
🍒 Centre's Interest Waiver Plan Fails To Deal With "Many Issues": Top Court : The Supreme Court today said the centre's affidavit on waiving "interest on interest" on loans up to ₹ 2 crore, frozen during a six-month moratorium granted because of the coronavirus crisis, was not satisfactory and asked for a do-over in a week. The affidavit "fails to deal with several issues raised by petitioners", the court said. The central government has been asked to consider the concerns of the real estate and power producers in fresh affidavits. The Supreme Court also noted that "no consequential orders or circulars" were issued by the government or RBI on enforcing the centre's decisions. The top court was hearing petitions on a waiver of interest on deferred EMIs - or interest on interest - to help small borrowers during the coronavirus pandemic. - ndtv.
🍒 Accumulated loss of 17 RRBs surge to ₹6,467 crore : The three major stakeholders of Regional Rural Banks (RRBs) – Central government, sponsor public sector banks (PSBs) and the government of the State in which they operate – may have to worry about the future of 17 RRBs whose collective accumulated loss soared to ₹6,467 crore as of March-end 2020. Accumulated loss As of March-end 2019, 11 RRBs had a collective accumulated loss of ₹2,887 crore. The Central government has a 50 per cent shareholding in every RRB, with the sponsor public sector bank (PSB)/ commercial bank and the State government holding 35 per cent and 15 per cent stake, respectively. The RRBs with huge accumulated losses as of March-end 2020 include: Bangiya GVB (₹1,048 crore), Odisha GB (₹1,026 crore), Utkal GB (₹963 crore), Madhya Pradesh GB (₹656 crore), Madhyanchal GB (₹548 crore), Uttar Bihar GB (₹377 crore) and Assam GVB (₹372 crore), according to data compiled by the National Bank for Agriculture and Rural Development (NABARD). - Business Line
🍒 YES Bank registers gradual rise in Q2 deposit base : Private sector lender YES Bank has registered a gradual rise in deposit base in the second quarter of the fiscal as it focusses on normalcy and stability under the new management. According to provisional data released by the bank to the stock exchanges for the quarter ended September 30, 2020, its deposits have increased by 15.7 per cent to ₹1,35,815 crore from ₹1,17,360 crore as on June 30, 2020. It also marks a 28.9 per cent rise since March 31when total deposits were down at ₹1,05,364 crore. YES Bank had a new management and Managing Director and CEO in March after the Reserve Bank of India and the government worked out a reconstruction scheme for the troubled lender. The bank’s deposit base had witnessed a gradual erosion over the past few quarters. - Business Line
🍒 IndusInd Bank Q2: Deposits up 10%, net advances rise 2% : Private sector lender IndusInd Bank registered a 10 per cent increase in its deposits and a two per cent rise in its net advances as on September 30, 2020 compared to a year ago. In provisional data for the second quarter of the fiscal reported to the stock exchanges, the bank said its deposits grew by 10 per cent to ₹2.28 lakh crore as against ₹2.07 lakh crore as on September 30, 2019. Its deposits stood at ₹2.11 lakh crore at the end of the first quarter this fiscal. “Retail deposits and deposits from small business customers amounted to ₹75,610 crore as of September 30, 2020 as compared to ₹67,318 crore as of June 30, 2020,” it said. Net advances grew by two per cent to ₹2-lakh crore as on September 30, 2019 versus ₹1.97-lakh crore a year ago and ₹1.98-lakh crore as on June 30, 2020. CASA ratio was at 40.4 per cent at the end of the second quarter this fiscal compared to 41.4 per cent as on September 30, 2019. - Business Line
🍒 HDFC Bank advances up 16%, deposits rise 20% in Q2 : Private sector lender HDFC Bank registered a 16 per cent increase in advances, along with a 20 per cent growth in deposits in the second quarter of this fiscal.According to a regulatory filing on Monday with provisional numbers for the quarter ended September 30, 2020, the bank said its deposits were up at ₹10.3-lakh crore with a growth of around 16 per cent when compared to ₹8.97-lakh crore as of September 30, 2019. On a quarterly basis, deposits grew by nearly three per cent when compared to ₹10.03-lakh crore as of June 30, 2020. Its deposits amounted to about ₹12.29-lakh crore as of September 30, 2020, a growth of around 20 per cent when compared to ₹10.21-lakh crore as of September 30, 2019, and a growth of around 3 per cent when compared to ₹11.89-lakh crore as of June 30, 2020. - Business Line
🍒 PFRDA plans to rope in consultant for hiving off NPS Trust, structural rejig : Pension regulator PFRDA plans to engage a strategic management consultant to study and make recommendations in critical areas including organisational structure and segregation of roles and responsibilities of NPS Trust. Human resource and technological requirements are also areas that the proposed management consultant will be required to make recommendations, according to the Expression of Interest (EoI) invited from consultants. It maybe recalled that Pension Fund Regulatory and Development Authority (PFRDA) had undertaken the exercise of organisational restructuring in 2017 itself. However, with the proposed changes in the legal framework governing the functions of PFRDA (a Bill is expected in the next session), it has been decided to re-assess the organisational structure in terms of its suitability, effectiveness and its role in meeting the mandate given by the PFRDA Act, 2013. - Business Line
🍒 BFSL, ICSI launch co-branded credit card for Company Secretaries : BOB Financial Solutions Ltd (BFSL), a wholly-owned subsidiary of Bank of Baroda (BoB), and the Institute of Company Secretaries of India (ICSI), have launched an exclusive co-branded credit card for Company Secretaries (CS). The BoB-ICSI Diamond credit card will bring exclusive benefits and conveniences to Company Secretaries, who are influencers and opinion leaders in their own right, and are contributing in building a modern and Atmanirbhar (self-reliant) India, BFSL said in a statement. - Business Line
🍒 3,066 bank employees in Odisha test positive for COVID-19, SBI records largest numbers : More than 3,000 bank employees in Odisha have tested positive for COVID-19 till September 30 and 14 have died, as per the State Level Bankers' Committee (SLBC). Of the 3,066 bank employees who tested positive, a majority – 968 infected and one dead are staff of the State Bank of India (SBI). Among private banks, Axis Bank had 390 staff test positive; private banks on the whole have not seen any employee deaths. Details are as per a letter by SLBC Convenor Arupananda Jena on October 04, ANI reported. The Odisha Gramya Bank has recorded three employee deaths – the highest in a single bank - moneycontrol.
🍒 PNB To lead consortium of banks lending to UP's Gorakhpur Link Expressway : Punjab National Bank (PNB) will lead the consortium of banks that are providing financial assistance to the 91-kilometre-long Gorakhpur Link Expressway project in Uttar Pradesh. The UP cabinet has approved a proposal in this regard. PNB is providing a Rs 750 crore loan for the expressway project. The state government will borrow Rs 2,250 crore in all to complete the project. According to Chief Executive Officer (CEO) of UP Industrial and Expressways Authority (UPIEDA), Awaneesh Awasthi, Union Bank of India, Canara Bank, Indian Bank, Uco Bank, Bank of India and Bank of Maharashtra will be part of the consortium led by PNB. He said work is going on full swing on the expressway and till date 13.47 per cent land filling and 73.56 per cent CNG work has been done. - Business Standard
🍒 Managing people will be key to success for SBI's CFO Charanjit Singh Attra : The appointment of Charanjit Singh Attra as chief financial officer (CFO) of State Bank of India — the first c-suite hire through the lateral route at the public sector bank (PSB) — could open the gate for similar CXO-level appointments in other state-owned lenders. How the 49-year-old chartered accountant handles people-related issues in the country’s largest public sector bank would be keenly watched, both internally and by external stakeholders and peers, say experts from the sector. The PSB has so far only relied on internal talent to fill the position of CFO. Attra’s peers say two things seem to have worked in his favour in getting the coveted job. The 12-odd years spent in a private banking institution — ICICI Bank group — in the early part of his career. - Business Standard
🍒 SBI chairman Rajnish Kumar's YONO app target isn't overblown: Experts : A few weeks back when Rajnish Kumar, chairman, State Bank of India (SBI), said the bank’s YONO app must be valued at $40 billion and subsequently proposed that it be hived off into a separate subsidiary like SBI Cards & Payment Services, critics were doubting the efficacy of the strategy. The answer lies in understanding how the banking landscape has changed globally, and how India is progressing. ICBC, China Construction Bank, HSBC, and JPMorgan Chase ruled the charts in terms of market capitalisation in the US a decade ago. Now, they have made way for Visa, MasterCard, and PayPal, indicating the traditional lending ecosystem may not guarantee business relevance and market ranking for banks. SBI’s YONO, ICICI Bank’s Fino Payments, HDFC Bank’s PayZapp, and Axis Banks’s Freecharge, to name a few, show how Indian banks, too, have grasped this change. A report by Blume Ventures indicates Indian banks spend $11 billion annually towards technology, mostly to digitalise internal systems. - Business Standard
🍒 Gold prices rise to Rs 50,498 per 10 gram on weaker rupee; silver climbs Rs 847 per kg : Gold prices rose by Rs 85 to Rs 50,498 per 10 gram in the Mumbai retail market on rupee depreciation and tepid global cues on October 5. The precious metal is trading flat tracking weak US Dollar amid the signs of progress in US President Donald Trump’s health. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,256 plus 3 percent GST, while 24-carat 10 gram was Rs 50,498 plus GST. The 18-carat gold quoted at Rs 37,874 plus GST in the retail market. Silver prices soared Rs 847 to Rs 60,111 per kg from its closing on October 1.
🍒 Sensex rises 277 points; TCS zooms over 7 per cent : Rising for the third straight session, market benchmark Sensex finished 277 points higher on Monday, propelled by IT and banking counters. Starting off on a high note, the 30-share BSE gauge zoomed to the day’s peak at 39,263.85, before ceding some ground to settle at 38,973.70, up 276.65 points or 0.71 per cent.Likewise, the broader NSE Nifty rose 86.40 points or 0.76 per cent to close at 11,503.35.On the Sensex chart, IT major TCS rose the most, gaining over 7 per cent.In the process, the IT giant became the second Indian firm after Reliance Industries to cross the Rs 10 lakh crore market valuation mark.Other prominent gainers included Tata Steel, Sun Pharma, Infosys, Tech Mahindra, IndusInd Bank, HCL Tech, ICICI Bank, HUL and HDFC Bank. On the other hand, Bajaj Finserv, Bajaj Finance, Bharti Airtel, Bajaj Auto, PowerGrid and ITC were among the major laggards.
🍒 Rupee settles 16 paise lower at 73.29 against US dollar : The rupee depreciated by 16 paise to close at 73.29 (provisional) against the US dollar on Monday even as the domestic equity market was trading with significant gains. The Indian currency opened at 73.16 at the interbank forex market and touched an intra-day high of 73.08 and a low of 73.41 against the greenback.
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