Sunday 18 October 2020

18.10.2020: Today's Banking / Financial News

18.10.2020: Today's Banking / Financial News at a Glance

🍒 RBI imposes Rs 4.5-cr penalty on IndusInd Bank for non-compliance with its directions : The Reserve Bank of India has imposed a monetary penalty of Rs 4.5 crore on IndusInd Bank Ltd for non-compliance with certain provisions of directions issued by it. In a statement, the central bank said the non-compliance was with respect to certain provisions of directions issued by it on ‘Exposure Norms’, ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances’, among others. RBI also flagged non-compliance of its directions on ‘SPARC (Supervisory Programme for Assessment of Risk and Capital) – Monitoring of Information Submission by bank’, ‘Creation of a Central Repository of Large Common Exposures - Across Banks’ read with directions on ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’, and ‘Disclosure in Financial Statements - Notes to Accounts’. According to the central bank, the statutory inspection of IndusInd Bank with reference to its financial position as on March 31, 2019, and the Risk Assessment Report (RAR) revealed, inter-alia, non-compliance with the directions issued by RBI. - Business Line

🍒 SBI warns customers against making these 5 mistakes or risk emptying bank account : State Bank of India (SBI) has issued a warning for its customers. Amid rising fraud incidents, customers need to be careful. Through ATMs fraud is being done apart from online transactions. To keep bank accounts safe and secure, SBI has given some advice to its customers. Customers should not make such a mistake during the festive season that their bank account should be empty, SBI warned its customers. Here are 5 mistakes SBI has advised its customers not to do: - *OTP, PIN, CVV, UPI PIN* should not be shared. Do not share OTP (one time password), PIN number, debit or credit card CVV number with any one, according to the State Bank. Most of the frauds are on phone calls, by asking you to change password, OTP or CVV number written on the back of your card and also warn you to block your card. - Business Line

🍒 Bank of Baroda inks pact with Mahindra & Mahindra for tractor finance biz : To push agriculture finance, state-owned Bank of Baroda (BoB) on Friday said it has entered into a pact with Mahindra and Mahindra for tractor finance business. The lender, through its over 5,000 rural and semi-urban branch network, will provide tractor loan facility to customers of Mahindra and Mahindra. This memorandum of understanding (MoU) will give a boost to agri business and will help farmers in availing hassle-free credit facilities for buying tractors, BoB Executive Director Vikramaditya Singh Khichi said. The tractor financing scheme was first piloted in the UP zone for a year and it has been successful, he said adding that this is being expanded into 11 zones of the bank. The bank has tied up with Gromax under the Mahindra stable as the preferred brand, he added. - Business Standard

🍒 HDFC Bank reports 18.4 per cent increase in Q2 net profit : Private sector lender HDFC Bank reported an 18.4 per cent increase in its standalone net profit for the second quarter of the fiscal at ₹7,513.11 crore as against ₹6,344.99 crore a year ago. For the quarter ended September 30, 2020, the bank’s total income grew by 6.9 per cent at ₹36,069.42 crore compared to ₹33,755 crore a year ago. Net interest income for the second quarter this fiscal grew by 16.7 per cent to ₹ 15,776.4 crore from ₹13,515.0 crore for the quarter ended September 30, 2019. In a statement on Saturday, HDFC Bank said this was “driven by asset growth of 21.5 per cent and a core net interest margin for the quarter of 4.1 per cent”. Other income grew by nine per cent to ₹6,092.45 crore in the quarter under review. - Business Line

🍒 HDFC Bank board appoints Sashidhar Jagdishan as its MD & CEO : The board of directors of HDFC Bank on Saturday approved appointment of Sashidhar Jagdishan (Sashi) as Managing Director and Chief Executive Officer of bank for three-year term from October 27, 2020. The Reserve Bank of India has already approved Jagdishan’s appointment. The appointment shall be placed before the shareholders of the Bank for their approval, by way of postal ballot (through remote e-voting), bank said in filing with BSE. Sashi joined the Bank in 1996 as Manager in the Finance function. He became business Head (Finance) in 1999 and was appointed as Chief Financial Officer in the year 2008. He played a pivotal role in aligning the organisation in achieving the strategic objectives over the years. Prior to his appointment as Managing Director & CEO of the Bank, he was the Strategic Change Agent of the Bank in addition to overseeing the functions including Finance, Human Resources, Legal & Secretarial, Administration. He has completed his graduation in Science with specialisation in Physics. He is a Chartered Accountant by profession and also holds a Master’s degree in Economics of Money, Banking & Finance from the University of Sheffield, UK. - Business Standard

🍒 Paytm users to pay 2% charge on using credit cards to top up wallets : Paytm users will have to pay a 2 per cent fee on the amount added to their e-wallet using a credit card. Until now, users had to pay 2 per cent fee if they loaded more than ₹10,000 in their e-wallets via credit card in a month. A message saying “Nominal charge of 2 per cent is applicable on adding money using a credit card. A nominal fee is applicable since we pay high charges to your bank/payment network when you add money using a credit card. Please use UPI or debit card to add money for free” is displayed when customers attempt to add money to their Paytm wallet via a credit card. - Business Line

🍒 NHB levies penalty on CanFin Homes for non-compliance of SLR norms : National Housing Bank (NHB) has levied a penalty of ₹5,000 plus GST on CanFin Homes Limited for non-compliance concerning the provisions of its policy circular No 21. CanFin Homes Limited, on Saturday, in a regulatory filing to exchanges, said “The company is supposed to maintain SLR investments to the extent of 13 per cent of its outstanding public deposits and create floating charges on the same. The company has maintained SLR investment to the extent of 14.65 per cent. However, there was a shortfall of 0.59 per cent in the charge created. Hence, the company has represented the matter before NHB.” - Business Line

🍒 Franklin Templeton’s six debt mutual fund schemes generate Rs 8,302 cr since closure : Franklin Templeton Mutual Fund has said its six shut schemes have received ₹8,302 crore from maturities, pre-payments and coupon payments since closing down in April. Franklin Templeton MF shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. “The six schemes have received total cash flows of ₹8,302 crore as of October 15, 2020 from maturities, pre-payments and coupon payments since April 24, 2020,” Franklin Templeton MF said in a statement. - Business Line.

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