🍒 BoI puts on hold branch expansion plan as customers prefer digital banking : Bank of India (BoI) has put its branch expansion plan on hold for now in the backdrop of increased digitalisation of transactions on account of the ongoing Covid-19 pandemic and the need to maintain a healthy cost to income (C-I) ratio. The Mumbai-headquartered public sector bank saw a 143 per cent year-on-year (YoY) jump in mobile banking users (to 45.21 lakh as at September-end 2020) and 17 per cent YoY increase in internet banking users (to 71.63 lakh). Following an increase in the usage of alternative delivery channels, the Bank is gradually rationalising its branch and ATM network. - Business Line
🍒 DRT slaps Rs 5 lakh penalty on Bank of India for compromising loan recovery : A Debt Recovery Tribunal here imposed a fine of Rs 5 lakh on Bank of India for allowing withdrawal of a plea filed to recover over Rs 2.25 crore from its borrowers. The tribunal also observed that the lender entered into a compromise to recover Rs 31.2 lakh against the loan amount.The Presiding Officer of the DRT-1, Ahmedabad, Vinay Goel came down hard on the bank for sacrificing Rs 2.25 crore of taxpayers'' money while making compromise with the borrowers.In an order dated October 28 that was made available online Saturday, the tribunal also noted that the letter of acknowledgement of debt submitted to it by the bank was forged, which the bank said it filled up in a bona fide manner as the original letter was not traceable.The tribunal also questioned the bank as to why it accepted the property as collateral security which has value of Rs 18 lakh to grant loan of Rs 1.25 crore and not took action against its officials who recommended the property, and the valuer who recommended such property as collateral security.To justify its withdrawal plea, the bank had told the tribunal that the three auctions conducted by it to sell the mortgaged land with a valuation of Rs 18 lakh had failed.The tribunal raised serious questions over the process to sanction loan to the respondent borrower Krishna Tea Traders and three others, and said that the approach of the bank was against the spirit of the Reserve Bank of India guidelines. - Outlook
🍒 HDFC cuts retail prime lending rate by 10bps : Home loans are set to get cheaper as mortgage financier Housing Development Finance Corporation Ltd has cut its Retail Prime Lending Rate by 10 basis points. “HDFC reduces its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 10 basis points, with effect from November 10,” it said in a statement on Monday, adding that it will benefit all existing HDFC retail home loan customers. - Business Line
🍒 SBI to raise share of financial inclusion to 20% by March 2022 : State Bank of India (SBI) expects to raise the share of the newly created business vertical — financial inclusion and micro-markets (FI&MM) — from the current 12 per cent to 20 per cent by March 2022. The emphasis will be on enhancing income-generation work (deposits and loans) at around 8,000 branches under the FI&MM vertical. This will be completed once customer servicing — currently handled by the branches — is shifted to the business correspondents (BC) network to bring down the cost-to-income (C/I) ratio.SBI had recently created a separate FI&MM vertical within the bank with an exclusive focus on rural and semi-urban areas to improve customer experience in the hinterland. - Business Standard
🍒 Microfinance industry sees 31% rise in loan portfolio at Rs 2.36 lakh crore in FY20: Report : India's microfinance industry registered a 31 per cent jump in its loan portfolio to Rs 2.36 lakh crore for 2019-20 and expects to post a moderate growth of about 15 per cent in the current financial year, an industry report said on Monday. Despite the onset of the coronavirus pandemic in the last quarter of the financial year 2019-20, the country's microfinance industry grew 31 per cent, industry representative Sa-Dhan said.According to Sa-Dhan's 'Bharat Microfinance Report 2020', the industry's loan portfolio outstanding as on March 31, 2020, had stood at Rs 2,36,427 crore.The year-on-year growth of loan outstanding in 2019-20 was 31 per cent, which is substantially lower than the growth of 41 per cent in 2018-19. - economic times
🍒 Ujjivan Small Finance Bank Q2 profit up marginally at Rs 96 cr : Ujjivan Small Finance Bank (SFB) on Saturday reported a marginal rise in net profit at Rs 96 crore for September quarter as provisions spiked. The bank posted a net profit of Rs 93 crore in the same quarter a year ago. In June quarter, the profit was Rs 55 crore.Total income during July-September 2020-21 increased to Rs 818.01 crore from Rs 729.36 crore in the year-ago period on the back of healthy interest income.Core income or the interest income increased 15.2 per cent to Rs 753.61 crore from Rs 654.33 crore in the same quarter of 2019-20. Net interest income grew 21 per cent to Rs 470 crore. However, income from other sources fell to Rs 64.40 crore from Rs 75.03 crore. - Business Line
🍒 Bank of Maharashtra cuts repo-linked lending rate by 15 basis points to 6.90% : State-owned Bank of Maharashtra has reduced its repo linked lending rate (RLLR) by 15 basis points to 6.90 per cent. The lender's retail and MSME loans are linked to RLLR. The new rates are effective from November 7. "Reduction in RLLR makes our home loan, car loan, gold loan, education loan, personal loan along with MSME loans more attractive and affordable," bank's executive director Hemant Tamta said in a release. Earlier ahead of the festive season, the bank had also announced processing fee waiver on home, car and gold loans. With this downward revision in RLLR, home loan rates start at 6.95 per cent (0.05 per cent concession to woman and defence personal), car loan rates start at 7.55 per cent and gold loan rates at 7.35 per cent, the bank said. Bank of Baroda also reduced its RLLR by 15 basis points (bps) to 6.85 per cent from November 1.- Business Line
🍒 Karnataka Bank launches National Common Mobility Debit card : Karnataka Bank Ltd has launched National Common Mobility Debit Card. A press release by the bank said on Monday that this Rupay card is a contactless debit-cum-prepaid and interoperable transport card.It said that the users can make payments without inserting the card at PoS terminals. Payments can be made at toll plazas, metro transits, parking lots, retail outlets and smart cities with the help of this card. The card’s wallet supports small-ticket size offline payments through the value stored in the card, it said.Quoting Mahabaleshwara MS, Managing Director and Chief Executive Officer of the bank, it said that this card is expected to change the banking paradigm in retail payments by its unique features of ‘tap and go’ and ‘offline wallet’ payments.- Business Line
🍒 Bank of India Refuses to Share Under RTI Information on Rs57,275 Crore Bad Loans Written Off and 23% Recovery in Past 8 Years : The way public sector banks (PSBs) are giving flimsy excuses for denying information under the Right to Information (RTI) Act on bad loans, loan write off and names of big defaulters, whose defaults are Rs100 crore and more, one could safely say that the public information officers (PIOs) of these PSBs have mastered the art of evasion to a fault. Take for example, Bank of India, which refused to share any information on loan write offs over the past eight years by giving an excuse that it would 'disproportionately divert its resources'! Notwithstanding, Pune-based RTI activist Vivek Velankar, went on to study BoI's annual reports, which yielded the information in black and white, that the lender wrote off Rs57,275 crore and recovered just 23% or Rs13,560 crore over the past eight years. - Moneylife
🍒 Former SBI chairman P G Kakodkar passes away : Former chairman of State Bank of India (SBI) P G Kakodkar died in Panaji on Sunday following a cardiac arrest. The family sources stated that 83-year-old former banker passed away after suffering a cardiac arrest.He was also on the Managing Committee of Goa Chamber of Commerce and Industries (GCCI).Kakodkar joined SBI as a probationary assistant in the year 1957 and retired as chairman of the bank on March 31, 1997.During his tenure as chairman of the SBI, he was instrumental in the bank achieving several milestones.He is credited with the entry of the bank into the global capital markets by its GDR issue.He also served as chairman of Goa Public Service Commission from 1997 to 1999. - Live Mint
🍒 PMC depositors move Delhi HC, seek higher withdrawal limit for all emergencies : Depositors of the scam-hit Punjab and Maharashtra Co-operative Bank (PMC Bank) have filed a plea with the Delhi High Court seeking higher withdrawal limit for all financial emergencies. In June this year, the RBI had announced that the withdrawal limit for PMC Bank account holders has been increased to ?5 lakh but only after producing medical documents.Claims of only 13 out of 300 applicants were accepted by the RBI under the stipulated ‘financial emergencies’. It has also pleaded for compensation for the families of over 60 depositors who lost their lives due to lack of availability of funds. The matter is set to be heard on November 10. - Business Line
🍒 Banks await clarity from RBI on current account opening norms : Banks are awaiting more clarity from the Reserve Bank of India on its current account circular but domestic lenders believe it is a good move that will ensure a comprehensive relationship with customers. “There are a lot of issues on which banks have sought clarity from the RBI regarding the issue of current accounts. The Indian Banks’ Association is working on the issue,” said two persons familiar with the development. - Business Line
🍒 Airtel Payments Bank ties up with Bharti AXA General for car insurance : Airtel Payments Bank has partnered with Bharti AXA General Insurance to offer comprehensive car insurance to the payments bank’s customers. The Smart Drive Private Car Insurance offers financial protection against damage to the vehicle due to accident, theft, and natural and man-made disasters. Airtel Payments Bank’s customers can purchase the Bharti AXA’s car insurance policy within five minutes using a paperless, secure, and quick process through the Airtel Thanks app. Currently, the country’s first payments bank has over 3 crore customers. - Business Line
🍒 Paytm aims to disburse ?1,000 crore in loans by March 2021 : Paytm today announced that it will be expanding its collateral-free loans of up to ?5 lakh at a low interest rate and daily repayment flexibility customised for micro-merchants in a bid to extend financial support to micro, small and medium enterprises (MSMEs). The digital financial services platform is aiming to disburse ?1,000 crore in loans by March 2021. Bhavesh Gupta, CEO - Paytm Lending, said, “With our collateral-free instant loans, we are trying to help kirana stores and other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit. Going forward, we will especially focus on EDC merchants and provide higher loan amount based on their EDC transactions.”- Business Line
🍒 Banking sector stress expected to drop following collection boost, income improves in Q2 : The domestic banking sector continued to show improvement in the net interest income (NII) in the September quarter helped by falling interest expenses, according to ETIG's analysis of the quarterly financials of a sample of 27 listed banks. The sample's NII rose sequentially for the second consecutive quarter to Rs 1.3 lakh crore compared with Rs 1.2 lakh crore in the previous quarter. NII had fallen sequentially by 2% to Rs 1 lakh crore in the March quarter following a nationwide lockdown in the last week of March to curtail the spread of the Covid-19 pandemic. - economic times
🍒 Loan growth continues to remain tepid: RBI data : Indian banking system loan growth continues to be tepid even as some pockets like loans to retail and medium sized firms picked up in September. Bank loans rose 5.1 per cent ( year-on-year) to Rs 102.2 lakh crore as of October 23, according to the latest RBI data. Overall loan growth has remained below the 6 per cent mark ever since the economy went into a lockdown following the COVID-19 pandemic.Several regulatory and policy measures, easing liquidity conditions, lowering of policy rates and the easing of lockdown conditions have helped revive credit demand in certain sectors. Loans to medium enterprises rose 14 per cent, loans against shares and securities rose around 20 per cent, according to the latest data on sectoral deployment of bank credit until September. - economic times
🍒 15th Finance Commission submits final report for FY22-26 to President Kovind : The NK Singh-led 15th Finance Commission (FC) presented its final report for the five fiscal years from 2021-22 to 2025-26 to President Ram Nath Kovind on Monday, according to an official statement. The report titled ‘Finance Commission in Covid Times’, contained four volumes each pertaining to an area of the terms of reference of the FC, the statement said. -economic times
🍒 Concentration of MF equity investment worries investors : The lack of depth in the stock market and tough regulations have forced mutual funds to bet big on top market-cap companies, putting crores of investors’ money at risk. In fact, the top 10 market-cap companies have attracted 36 per cent or ?4.28 lakh crore of the overall equity asset under management of mutual funds of ?11.83 lakh crore, as of September end. - Business Line
🍒 Sensex, Nifty hit new highs; rally likely to continue as global uncertainties taper : On Monday, the Sensex closed with gains of 704 points, or 1.68 per cent, at 42,597. The wider index Nifty rose 197 points, or 1.61 per cent, to close at 12,461. It took less than eight months for the Sensex and Nifty to recoup from a historical loss suffered since the market crash in March.
🍒 Rupee rises 4 paise against US dollar : The rupee surrendered most of its early gains to trade just 4 paise higher at 74.04 against the US dollar in late afternoon trade on Monday. At the interbank foreign exchange (forex), the domestic currency opened sharply higher at 73.95 a dollar and gained further strength to touch a high of 73.83. Shares of IndusInd Bank hit an over 7-month high of Rs 777.80, up 5% on the BSE today. The stock of the bank was trading higher for the 6 straight trading session and has rallied 33% during the period. It was quoting at its highest level since March 13, 2020
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