🍒 Govt appoints M Rajeshwar Rao as new deputy governor of RBI : The Centre late Wednesday appointed M Rajeshwar Rao as the new deputy governor of the Reserve Bank of India. He is currently an executive director at the banking regulator. The Appointments Committee of the Cabinet approved the appointment as the search for the incumbent was on since August.The Financial Sector Regulatory Appointment Search Committee (FSRASC), which had included the cabinet secretary, RBI governor and the financial services secretary, interviewed candidates on August 21.RBI executive directors M Rajeshwar Rao and Lily Vadera were the top contenders to succeed NS Vishwanathan as the central bank's fourth deputy governor, ET reported on August 25. Rao, a career central banker, has spent 36 years at the RBI across various departments including regulation and supervision and different regional offices of the regulator. - economic times
🍒 State Bank of India's new chief, Dinesh Khara, says top priority to maintain loan book quality : India's largest lender, State Bank of India's newly appointed chairman said that his focus areas as he takes over will be maintaining the quality of the loan book while ensuring that provisioning requirements are met. At a time when the Indian banking system is hamstrung by the pandemic, SBI is witnessing credit growth of around 6-7% while business is "70-80% back to pre COVID-19 levels," for the bank, Dinesh Kumar Khara, Chairman, SBI said in a press briefing after taking over the reins on Wednesday. Before taking over as chairman, Khara was a managing director at the bank and was responsible for overseeing global markets and subsidiaries of SBI. Khara has been appointed as chairman for a three-year term. Though concerns for SBI in certain segments remain due to the economic disruption caused by the pandemic, overall the stress in loan books is not a cause of worry yet, added Khara. - economic times
🍒 Indian Overseas Bank, Another PSB to Write Off Rs41,392 Crore in 8 Years; Recovers Just 17% : Indian Overseas Bank (IOB) is the latest to join other big banks that have written off bad loans worth thousands of crores of rupees and recovered paltry amounts from defaulters. Strangely though, IOB refused to share this information under the Right to Information (RTI) Act and instead asked the applicant to check its annual reports. Data shared by Pune-based RTI activist Vivek Velankar shows that IOB has written off a massive Rs41,392 crore as technical write-offs in the past eight-year period from FY12-13 to FY19-20. As against these write-offs, the recovery was just 17% or Rs7,253 crore. - moneylife.in
🍒 Banks say government's interest waiver will add to costs, spark litigation : Indian bankers fear the government's decision to waive some interest payments on loans under a COVID-19 support plan will create unnecessary work for lenders and lead to more litigation, without providing much of a boost for the sagging economy. In an Oct. 2 filing with India's Supreme Court, seen by Reuters, the government said it is amending a controversial clause in a relief plan that allowed distressed borrowers to skip repayments for six months but then charged them "interest-on-interest" on the delayed payments, putting them deeper in debt. The change will waive the compounded interest component on small business loans and some personal debts from March to August. The government will bear the cost, which could be as high as $1 billion, according to analysts. - economic times
🍒 HDFC to give instant loans up to Rs 40 lakh for customers' medical bills at Apollo Hospitals : HDFC Bank on Wednesday announced a tie-up with Apollo Hospitals through which its customers can avail unsecured loans of up to Rs 40 lakh to pay for medical expenses incurred at the healthcare chain. The loans will be disbursed almost instantly as and when a need for money arises, and the hospital patients who are customers of HDFC Bank will also receive preferential treatment, its Chief Executive Officer and Managing Director Aditya Puri told reporters. Apollo Executive Vice-Chairperson Shobana Kamineni said HDFC Bank has 65 million customers who can take advantage of this facility. She stressed that while availing health insurance is necessary, it does not cover all the aspects despite providing cashless facilities and hence, such a tie-up will help. - economic times
🍒 Interest subvention for MSMEs: Govt to include Co-operative Banks as Eligible Lending Institutions : The Government of India has decided to include Co-operative Banks as Eligible Lending Institutions whereby their MSMEs (micro, small and medium enterprises) borrowers can get interest subvention with effect from March 3, 2020. The Government had announced the ‘Interest Subvention Scheme for MSMEs 2018’ on November 2, 2018, for Scheduled Commercial Banks. The scheme provides for an interest relief of 2 per cent per annum to eligible MSMEs on their outstanding new/incremental term loan/working capital during the period of its validity, the RBI said in a notification issued to Primary (Urban) Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks. The coverage of the scheme is limited to all term loans/working capital to the extent of ₹1 crore. - Business Line
🍒 PM SVANidhi-SBI integration to ease processing of loan applications : The Ministry of Housing and Urban Affairs (MoHUA), on Wednesday, launched the Application Programming Interface (API) integration between the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) and the State Bank of India’s eMudra portal to ease the process of receiving and processing of loan applications. The aim of this integration is to provide benefits to street vendors seeking working capital loans under the PM SVANidhi scheme. Besides SBI, MoHUA also plans to explore similar integration with the other banks in the days to come. - Business Line
🍒 At 41 million real-time transactions a day, India leads the world: Report : Thanks to the pandemic, the country has become the global leader in real-time financial transactions with 41 million transactions per day, which is more than double that of the last year, says an international report. The Covid-19 pandemic has seen India doubling its every day real-time transactions at 41 million, says the latest report from FIS, which is a leading provider of technology solutions for merchants, banks and capital markets firms globally. According to the report released on Wednesday, six other countries also saw more than doubling of their real-time payment transactions year-over-year, while four saw at least a twofold increase in transaction value. - Business Line
🍒 Bandhan Bank's collection efficiency improves in September : Bandhan Bank's average collection efficiency has improved 92% at the end of September from 76% three months back, while it has seen its loan book grow 20% year-on-year. Liquidity coverage ratio was at comfortable 157% as against the current regulatory stipulation of 90%, the bank said. Collection efficiency for microfinance loans was 89% while it was 98% for mortgage loans, according to provisional data submitted to the stock exchanges. Loans and advances including off-balance sheet loans and loans under Reserve Bank of India's targeted long term repo operation (TLTRO) stood at Rs 76724 crore from Rs 64186 crore a year back. - economic times
🍒 Jammu & Kashmir Bank extends CMD’s term by six months : Jammu & Kashmir Bank, on Wednesday, said the Reserve Bank of India (RBI) has extended the term of RK Chhibber, Chairman and Managing Director of the bank, by a further period of six months. In a regulatory filing, the bank said the extension is with effect from October 10or till the appointment of MD and CEO, whichever is earlier. The bank informed the exchanges on July 7 that the term of Chhibber has been extended by a further period of three months with effect from July 10,or till the appointment of MD and CEO, whichever is earlier.. - Business Line
🍒 SEBI move on AT-1 bonds: Marginal impact expected on banks’ fund-raising plans : Retail investors will be safeguarded, but the fund-raising plans of some PSBscould be marginally impacted by the decision of the Securities and Exchange Board of India (SEBI) to tighten the regulations for additional Tier-1 or AT-1 bonds. Retail investors do not invest significantly in these bonds. Experts said that at least ₹90,000 crore of such AT-1 bonds are outstanding as on date, and private sector banks are unlikely to tap this source, given the developments at YES Bank, where it wrote back such bonds worth ₹8,415 crore, makingretail investors more cautious. However, the quantum of bonds already invested in by retail investors is difficult to assess. - Business Line
🍒 Barclays to enter new European private banking markets in 2021 : Barclays plans to enter four new European private banking markets in 2021, its regional manager for the business told Reuters. Gerald Mathieu, who in September became Barclays’ private banking head for Europe outside Britain, said the British bank was looking to start up the business in France, Italy, Spain and Germany next year. “These are the countries where we see a lot of opportunities, also because we have a very strong footprint of corporate and investment banking locally,” Mathieu said in an interview. “The idea is to have a capital-light approach and work in very close collaboration with the investment bank locally, targeting family offices, ultra high net worth individuals, and some qausi-corporate or institutional clients.” The bank said it was too early to disclose hiring plans. - Business Line
🍒 Indian banks face tough operating environment in near term: Fitch : Fitch Ratings on Tuesday said Indian banks face a tough operating environment in the near term as stressed loans and write-offs increase due to the economic fallout from the coronavirus pandemic. It said limited room for fiscal support, fragilities in the financial system and a continuing rise in COVID-19 cases are hampering normalisation of activity. "Indian banks face a tough operating environment in the near term, as stressed loans and write-offs increase as a result of the economic fallout from the coronavirus pandemic, but a swift economic recovery will be critical to limiting loan losses in what is likely to be a protracted period of weakness in the asset-quality cycle," Fitch Ratings said in a statement. - Business Standard
🍒 Indian banks say govt interest waiver will add to costs, spark litigation : Indian bankers fear the government's decision to waive some interest payments on loans under a COVID-19 support plan will create unnecessary work for lenders and lead to more litigation, without providing much of a boost for the sagging economy. In an Oct. 2 filing with the Supreme Court, seen by Reuters, the government said it is amending a controversial clause in a relief plan that allowed distressed borrowers to skip repayments for six months but then charged them "interest-on-interest" on the delayed payments, putting them deeper in debt. The change will waive the compounded interest component on small business loans and some personal debts from March to August. The government will bear the cost, which could be as high as $1 billion, according to analysts - Business Standard
🍒 SBI is future-ready and in Dinesh Khara's safe hands: Rajnish Kumar : Former State Bank of India (SBI) chairman Rajnish Kumar said in his farewell message that he had made the bank ‘future-ready’ and that the lender is in safe hands with Dinesh Khara as the new chairman. Kumar’s last day in office was on October 6. He had been in the bank as chairman for three years and in total served the bank in various capacities for almost 40 years. “I am happy that I am leaving the bank ‘future-ready’ for the next Chairman--Mr Dinesh Khara--to take it further ahead. Future is all about possibilities and I believe that the best is yet to come. I wish all the best for his new assignment. I can say with no hesitation that I am leaving SBI in safe hands,” Kumar said in his farewell message to SBI employees. - Business Standard
🍒 IndusInd Bank Q2 deposits grow 10.26% : Private lender IndusInd Bank registered a 10.26% year-on-year increase in its deposits and a 2% rise in its net advances during September quarter. However, the bank’s current account savings account (CASA) ratio in the September quarter declined 100 basis points year-on-year to 40.4%. In a provisional data released on exchanges, the bank said that its deposits grew by 10.26% to Rs 2.28 lakh crore, compared to Rs 2.07 lakh crore in the same period last year. - financial express
🍒 Bandhan Bank says advances up 3% since June quarter : Kolkata-based private sector lender Bandhan Bank on October 7 said its total advances grew 3 percent in the second quarter while deposits were up 9 percent. Total advances grew to Rs 76,724 crore as on September 30 compared with Rs 74,331 crore as on June 30, the bank said in a stock exchange update. Deposits grew to Rs 66,153 crore from Rs 60,610 crore during the period - Moneycontrol.com
🍒 ICICI Prudential Life Insurance to raise up to Rs 1,200 crore via NCDs : ICICI Prudential Life Insurance on Wednesday said it will raise up to Rs 1,200 crore by issuing non-convertible debentures (NCDs) on private placement basis. "The Board of Directors has at their meeting held on October 7, 2020 approved raising capital by issuance of subordinated debt instruments in the nature of rated, listed, redeemable, unsecured, fully paid-up, non-cumulative, non-convertible debentures (NCDs) up to Rs 12 billion,” ICICI Prudential Life Insurance Company said in a regulatory filing.- Moneycontrol.com
🍒 Interest subvention on MSME loans extended until end of March 2021: RBI : The two percent interest subvention scheme for micro, small and medium enterprises (MSMEs) on loans extended by co-operative banks has been extended till March 31 next year, the Reserve Bank of India said on October 7. The terms of the scheme have also been tweaked. The government had announced the 'Interest Subvention Scheme for MSMEs 2018' in November 2018 for scheduled commercial banks for two financial years 2018-19 and 2019-20. It has been extended for the financial year 2020-21. Co-operative banks also became as eligible lending institutions effective from March 3, 2020.- Moneycontrol.com
🍒 Govt recognises need for further stimulus at an appropriate time: Sanjeev Sanyal : Principal Economic Adviser Sanjeev Sanyal on Wednesday said the government recognises the need for further stimulus at an appropriate time to perk up demand in the economy, hit by COVID-19. Addressing the 115th AGM of PHD Chamber of Commerce and Industry, he said there was space on the monetary and fiscal side to implement further stimulus. With the outbreak of COVID-19 pandemic, the government announced Rs 1.70 lakh crore Pradhan Mantri Garib Kalyan Yojana, followed by the unveiling of Rs 20.97 lakh crore Aatmanirbhar Bharat Abhiyan package, which many analysts said fell short of addressing demand concern. “However, we recognise that there is a need for providing further stimulus to the economy at some point in time as may be appropriate,” he said. This is not something that is new, he said, adding that Finance Minister Nirmala Sitharaman recently mentioned this. - financial express
🍒 ‘Atmanirbhar Bharat’ should not result in protectionism: Raghuram Rajan : Former Reserve Bank governor Raghuram Rajan on Wednesday said the ‘Atmanirbhar Bharat’ campaign of the government should not result in protectionism, adding that such policies had not worked in the past. Observing that it is not yet clear to him what the government means by ‘Atmanirbhar Bharat’, Rajan said if it is about creating an environment for production, then it is a re-branding of the Make in India initiative. “If it is about protectionism, unfortunately India has raised tariffs recently, (then) it does not make any sense to my mind to go that way because we tried that before. “We had a licence permit raj earlier…that protectionism was problematic, it enriched a few corporations but basically was a source of poverty for many of us,” he said. Rajan was addressing a virtual event organised by economic think tank ICRIER. - financial express
🍒 Gold prices fall sharply to Rs 50,287/10 gm, silver tanks Rs 2,240/kg : Gold prices tanked Rs 757 to Rs 50,287 per 10 gram in the Mumbai retail market on rupee appreciation against the dollar and strength in equity markets. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 37,715, Rs 46,063 and Rs 50,287, respectively, plus 3 percent GST. Spot gold was trading up $10.10 at $1,888.23 an ounce at 12:05 GMT in London trading.Silver prices plunged Rs 2,240 to Rs 58,872 per kg from its closing on October 6.
🍒 TCS reports 6.45% profit in Q2; to buyback up to Rs 16,000 cr in shares : TCS has delivered a broad-based performance, signalling a fast-track recovery in its growth as clients increasingly rely on technology to overcome economic stress created by the ongoing pandemic. India’s largest software exporter posted a net profit of ₹7,504 crore for the September-ended quarter, a 6.45 per cent growth compared to the ₹7,049 crore posted in the June-ended quarter. However, on a year-on-year basis, profits dipped 6.8 per cent compared to ₹8,058 crore in the corresponding period last year. “We are not out of the woods as yet due to the economy and Covid-19, but the underlying demand recovery seen in our clients can be sustained,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS. - Business Line
🍒 Sensex surges for 5th day on RIL boost; TCS results eyed : After opening on a weak note, the 30-share BSE Sensex gained ground to end 304.38 points or 0.77 per cent higher at 39,878.95.Similarly, the broader NSE Nifty jumped 76.45 points or 0.66 per cent to close at 11,738.85.The Sensex has now gained 1,905.73 points in five sessions, while the Nifty has advanced 516.45 points. Index heavyweight Reliance Industries spurted 2.13 per cent a day after its retail arm raised Rs 5,512.50 crore from Abu Dhabi Investment Authority (ADIA) for a 1.20 per cent stake.Bajaj Auto, Maruti, UltraTech Cement, and ONGC were among the other prominent gainers.IT major TCS inched up 0.78 per cent ahead of its quarterly results. On the other hand, Bajaj Finance, PowerGrid, Sun Pharma, Tata Steel, NTPC and Bajaj Finserv were among the laggards, skidding up to 4.12 per cent.
🍒 Rupee recovers by 13 paise; ends 2-day losing streak : Snapping its two-day losing streak, the rupee strengthened by 13 paise to settle at 73.33 against the US dollar on Wednesday helped by positive domestic equities and foreign fund inflows. At the interbank forex market, the domestic unit opened at 73.53 against the US dollar, but gained ground during the day and finally settled at 73.33, registering a rise of 13 paise over its last close of 73.46.
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