🍒 SBI banks on Juniper network infrastructure for its new data centre : State Bank of India (SBI) is India’s largest commercial bank serving more than 440 million account holders. That’s even more than the entire population of United States. Through its network of more than 22,000 branches across the country, and footprint in over 30 other countries, SBI has been driving radical changes to pave the way for an agile and digitally- enabled banking. It has always been responsive to changing customer preferences. New product launches, like You Only Need One (YONO) app, is one example that has been well received by customers and has proven to be a huge success. While SBI stepped on the accelerator to hit the digital highway in a big way by launching new products and services, it was also focusing to complete the integration and merger process of its five associate banks and Bharatiya Mahila Bank. “With increasing customer base and launch of new applications, our technology and resiliency requirement was increasing manifold. There was a need to centralize our operations for ease of use and effective management,” says Amol Pai, Chief Technology Officer, State Bank of India. - economic times
🍒 UCO Bank cuts home loan rate by 25 basis points: UCO Bank has cut home loan interest rates by 25 basis points with effect from Wednesday, the lender said. The revised home loan interest rates start from 6.90 per cent, irrespective of loan amount and occupation of the borrower. The state-owned bank is confident of meeting the Rs 3,000 crore lending target for retail and MSME segments for the festive season months of October and November and around Rs 1,900 crore had already been sanctioned .- economic times
🍒 Punjab & Sind Bank's board to consider plan for raising up to ₹5,500 cr : State-owned Punjab & Sind Bank on Wednesday said the board of bank will meet later this week to consider raising up to ₹5,500 crore by issuing shares on a preferential basis. "A meeting of board of directors of Punjab & Sind Bank is scheduled to be held on Saturday, November 21, 2020, for considering to offer, issue, create and allot equity shares up to ₹5,500 crore (including preferential issue of equity shares)," the bank said in a regulatory filing. Shares of Punjab & Sind Bank on Wednesday closed 0.88% up at ₹11.40 apiece on the BSE. - Live Mint
🍒 Lakshmi Vilas Bank depositors' money safe, says RBI-appointed administrator : T N Manoharan, the RBI-appointed administrator of Lakshmi Vilas Bank, on Wednesday said that depositors' money is safe and expressed confidence of completing the lender's merger with DBS Bank India within the deadline set by the regulator. On Tuesday, the Reserve Bank of India (RBI) appointed former non-executive chairman of Canara Bank T N Manoharan as the administrator of Lakshmi Vilas Bank after superseding the board of the crippled private sector lender.A moratorium has been imposed on the bank and cash withdrawals have been capped at Rs 25,000 per account. Talking to reporters, Manoharan said that he was confident of the timely merger of the bank with DBS Bank India before the December 16 deadline.- economic times
🍒 AIBOC opposes merger of LVB with DBS Bank; pitches for merger with state-owned bank : A day after the RBI put in public domain a draft scheme of merger of Lakshmi Vilas Bank (LVB) with subsidiary of Singapore-based DBS, public sector banks' officer union AIBOC on Wednesday said the amalgamation is not in the national interest and demanded the consolidation with any PSB. The proposed amalgamation of the cash-strapped LVB with DBS Bank India seems to be a ploy to provide entry of foreign banks into the country in a big way, All India Bank Officers' Confederation (AIBOC) President Sunil Kumar said. The Indian banking sector provides huge opportunity for growth, so the foreign banks have been looking at inorganic route to expand their presence for long, he said. - economic times
🍒 AIBEA decries ‘long rope’ given to LVB : The All India Bank Employees’ Association (AIBEA) has demanded a probe into why the Reserve Bank of India (RBI) gave a long rope to the loss-making Lakshmi Vilas Bank (LVB) when its financial health was going downhill. The RBI, on Tuesday, superseded the old generation private sector bank’s board, placed it under moratorium, including capping deposit withdrawals to ₹25,000 per depositor, up to December 16, 2020, and announced a draft scheme for its amalgamation with DBS India Ltd, a wholly-owned subsidiary of DBS Bank, Singapore. CH Venkatachalam, General Secretary of the Association, in a statement, observed that for the past more than three years, Tamil Nadu-based private sector Lakshmi Vilas Bank was suffering from bad health and continuous losses. - Business Line
🍒 ‘Lakshmi Vilas Bank has enough liquidity to pay depositors’ : Allaying depositors’ concerns over the safety of their funds, the RBI-appointed Administrator of Lakshmi Vilas Bank, TN Manoharan, said the top priority was to successfully implement the amalgamation scheme in a time-bound manner. He also insisted that there is no run on the bank and that it has enough liquidity to pay the depositors. “The priority now is to resurrect the business by implementing the scheme of amalgamation after all due process and legal measures are completed. Other issues will be addressed by DBS Bank India once the amalgamation process is completed,” said Manoharan. - Business Line
🍒 Promote Mudra loans, augment poverty alleviating schemes: Sadananda Gowda to SBI : Focus on promoting Mudra loans and augmenting poverty alleviating schemes of the Central government, DV Sadananda Gowda, Union Minister of Chemicals & Fertilizers, advised the State Bank of India (SBI). Inaugurating SBI’s new branch at Kavalbyrasandra in Bengaluru, Gowda also stressed upon the role played by the bank in reviving the economy by implementing the Central government initiatives. He thanked SBI and its officers for the continuous support extended to the public during the difficult times of Covid-19 and in the implementation of various government schemes. He further said SBI is the “mother” of all banks in India, and asked the public to utilise the services of the bank. - Business Line
🍒 DBS Bank issues maiden green loans in India worth Rs 1,050 cr to CapitaLand : DBS Bank on Wednesday said it has issued its first two green loans in India totalling Rs 1,050 crore to CapitaLand. DBS grows its sustainable financing footprint with maiden green loans in India totalling Rs 1,050 crore. Both green loans are also the first to be issued in India by a Singapore bank, DBS Bank said in a release. The lender issued a three-year Rs 425 crore (SGD 80.8 million) loan to refinance construction financing for the development of phase 1 of International Tech Park Gurgaon (ITPG) and other general corporate purposes related to the project, it added. - economic times
🍒 Merger with LVB to strengthen DBS Bank's India biz: Moody's : Moody's Investors Service on Wednesday said Singapore's DBS Bank will strengthen its India business following merger with troubled Lakshmi Vilas Bank. Banking regulator RBI on Tuesday announced a draft scheme to amalgamate the troubled Lakshmi Vilas Bank (LVB) into DBS Bank India, which is fully owned by DBS Bank Ltd. "The merger will strengthen DBS' business position in India by adding new retail and small and medium sized customers. We estimate that DBS India's customer deposits and net loans will increase by about 50 per cent-70 per cent following the merger," Moody's said in a statement. LVB will also add around 500 branches to DBS India's 27 branches. - economic times
🍒 Clix Capital may apply for banking licence after failed merger with Lakshmi Vilas Bank : Clix Capital may apply for a banking licence or look for other suitors to keep its hopes alive after the government approved the merger of Lakshmi Vilas Bank (LVB) with the Indian unit of Singapore-headquartered DBS Bank on Tuesday. Clix Capital has been in talks with the LVB management since June and had also submitted a non-binding agreement in October. Clix had proposed to invest Rs 1,700 crore in equity plus fundraising to meet growth capital requirements. The Reserve Bank of India could favourably look at a banking licence request as Clix Capital is backed by marquee foreign investors, founder Pramod Bhasin told ET.- economic times
🍒 Poonawalla Finance offers special loans to company secretaries : Puna-based Poonawalla Finance tied up with the Institute of Company Secretaries of India (ICSI) to offer collateral-free loans to over 65,000 financial professionals. The non-bank entity is a part of Cyrus Poonawalla group, which owns Serum institute, engaged in developing vaccines for the coronavirus. "As the economy is recovering from the pandemic impact, our focus is on offering credit support to the MSMEs and professionals like Company Secretaries so that they can further boost the entrepreneurial ecosystem and fuel economic growth,” said Adar Poonawalla, Chairman, Poonawalla Finance in a release. - economic times
🍒 Subscribers under NPS, APY schemes reach 3.83 crore till Oct-end: PFRDA : The number of NPS subscribers grew over 23 per cent to 3.83 crore by the end of October, according to data from the Pension Fund Regulatory and Development Authority (PFRDA). The number of subscribers in various schemes under the National Pension System (NPS) rose to 383.12 lakh by the end of October 2020 from 310.80 lakh in October 2019, showing a 23.27 per cent jump year-on-year, PFRDA said in a release on Wednesday. Subscribers under the Atal Pension Yojana (APY) increased 34.51 per cent to 2.45 crore at the end of October, from 1.82 crore a year ago. The total assets under management under the NPS rose 33.79 per cent to Rs 5.13 lakh crore as of October 2020, from Rs 3.83 lakh crore at the end of October 2019, PFRDA data showed. - Business Standard
🍒 LVB a strategic asset, must not be handed over 'free of cost': Promoter : Lakshmi Vilas Bank (LVB) is a strategic asset that must not be given to DBS Bank India "free of cost", said a promoter of the Chennai-based lender that was on Tuesday put under moratorium for a month. LVB is set to be folded into the Indian unit of Singapore's DBS under a plan proposed by the Reserve Bank of India (RBI), which took over the lender due to a "serious deterioration" in its finances. LVB has been in rough weather since a few years. In September, shareholders voted against seven board members—including interim MD and CEO S Sundar — at the annual general meeting. The bank has been struggling to raise capital. K R Pradeep, one of the 25 promoters of LVB, said on Wednesday that RBI should revisit the troubled lender's valuation and not hand it over to DBS Bank. He and his group own 5 per cent in LVB. - Business Standard
🍒 Dhanlaxmi Bank CEO case to test primacy of RBI over banks' shareholders : The removal of Sunil Gurbaxani from the corner room at Dhanlaxmi Bank in a shareholder coup has led the private banking system into uncharted waters. Should the Reserve Bank of India (RBI) go along with what a bank’s shareholders deem fit by exercising their rightunder the Companies Act? Or should it reinstate a helmsman (in the immediate instance Gurbuxani) to underscore its powers, and the primacy of the Banking Regulation Act (BR Act: 1949), if it were to feel otherwise? The BR Act vests the banking regulator with the powers to appoint “the chairman of the Board of Directors (BoD) on a whole-time basis, or a managing director (MD) of a banking company”. By extension, this Act allows for their removal, too. Privileging the BR Act over other regulations has never been a point of debate so far, but the fate of Gurbuxani at Dhanlaxmi Bank has changed the plot, and either side of the debate can be argued. - Business Standard
🍒 Disbursements in H2 will be at least three times that in H1: Shriram Transport Finance chief : After reeling under the impact of Covid-19 pandemic in the first half (H1) of FY21, Shriram Transport Finance Company Ltd (STFC) is expecting its business to be back on an even keel in the second half (H2). The nearly four decades old non-banking finance company, which specialises in financing pre-owned trucks, will step on the gas in H2 (October 2020 to March 2021), eyeing nearly three times H1 (April to September 2020) loan disbursements, opening 100 branches in rural and semi-urban areas and hiring 1,000 people, Umesh Revankar, MD & CEO, told BusinessLine in an interview. - Business Line
🍒 Online gold loan business gaining traction and NBFCs want to make most of it : The online gold loan remains the preferred choice for businesses and individuals even after nonbanking finance companies reopened their branches. With increased adoption of smartphones and expanding internet connectivity in rural and semi-urban India, NBFCs are aiming to get most of their customers on to the online gold loan platform. Some plan to launch co-branded prepaid cards while others are developing a semi-automated gold loan kiosk to expand the business. “The share of the online gold loan (OGL) in our total gold loan business before the lockdown was about 45% and this has now gone up to over 62%,” VP Nandakumar, managing director of Manappuram Finance, told ET. “Clearly, the lockdown period was when many of our customers realised the benefits of OGL as they were able to operate their account and borrow higher amounts, even as our branches remained closed. Even after reopening the branches, we continue to see increased adoption of OGL.” - economic times
🍒 I-T refunds worth Rs 1.36 lakh cr issued to 40.19 lakh taxpayers till Nov 17 : The Income Tax department has issued refunds worth over Rs 1.36 lakh crore to over 40 lakh taxpayers so far this fiscal. This includes Personal income tax (PIT) refunds amounting to Rs 35,750 crore and corporate tax refunds of over Rs 1 lakh crore during this period. “CBDT issues refunds of over Rs 1,36,066 crore to more than 40.19 lakh taxpayers between 1st April, 2020 to 17th November, 2020. Income tax refunds of Rs 35,750 crore have been issued in 38,23,304 cases and corporate tax refunds of Rs 1,00,316 crore have been issued in 1,95,518 cases,” the I-T department tweeted. - economic times
🍒 DBS faces potential culture clash as it scoops up distressed Indian lender : DBS Group’s move to take over troubled Lakshmi Vilas Bank will give Southeast Asia’s largest lender the boost in India it has long desired, but aligning the two banks’ business cultures could prove tricky. LVB, facing mounting bad loans and governance issues and a failure to secure capital, is set to be folded into DBS’s Indian subsidiary under a plan proposed by India’s central bank, which took control of the 94-year old Chennai-based lender on Tuesday, citing a “serious deterioration” in its finances. - financial express
🍒 RBI imposes Rs 5 lakh penalty on Nissan Renault Financial Services India : The Reserve Bank of India has imposed a penalty of Rs 5 lakh on Chennai-based Nissan Renault Financial Services India Private Limited for non-compliance with the central bank’s directions. In a statement on Wednesday, RBI said the penalty has been imposed for non-compliance with its directions contained in Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 on Fair Practices Code for applicable NBFCs. The statutory inspection of Nissan Renault Financial Services India with reference to its financial position as on March 31, 2019, revealed, inter alia, non-compliance with the RBI directions. - financial express
🍒 Lakshmi Vilas Bank share price tanks 20% as RBI puts bank under moratorium : Lakshmi Vilas Bank (LVB) stock was locked in 20 percent lower circuit in the early trade on November 18 after Finance Ministry put the bank under moratorium, with effect from November 17 6 pm till December 16, 2020. There were pending sell orders of 30,945,341 shares, with no buyers available at the time of market opening.During this time, the beleaguered bank will not be able to make any payment worth more than Rs 25,000 to its depositors without written permission from the Reserve Bank of India (RBI). As per the draft scheme of amalgamation of the Lakshmi Vilas Bank (LVB) with DBS Bank India, the entire amount of the paid-up share capital will be written off. - moneycontrol.
🍒 Sensex spurts 227 points to close above 44,000-mark for first time; Nifty tops 12,900 : The BSE Sensex jumped 227 points to finish above the 44,000-mark for the first time on Wednesday, tracking gains in financial stocks amid largely positive cues from Asian markets and persistent foreign fund inflows. After touching its lifetime intra-day high of 44,215.49, the 30-share BSE benchmark ended 227.34 points or 0.52 per cent higher at its record closing of 44,180.05. Similarly, the broader NSE Nifty advanced 64.05 points or 0.50 per cent to end at its all-time high of 12,938.25. It had touched an intra-day record of 12,948.85. M&M was the top gainer in the Sensex pack, soaring over 10 per cent, followed by L&T, IndusInd Bank, Bajaj Finserv, SBI, Bajaj Finance, ICICI Bank and Kotak Bank. On the other hand, HUL, ITC, Titan TCS and Bharti Airtel were among the losers.
🍒 Rupee rises for third day, up 27 paise at 74.19 per dollar : The rupee continued its winning run for the third session in a row on Wednesday, spurting 27 paise to settle at 74.19 against the US dollar amid unabated foreign fund inflows and a weak greenback overseas. At the interbank forex market, the domestic unit opened at 74.49 against the US dollar and touched an intra-day high of 74.09 and a low of 74.52.
🍒 Gold prices today fall for 3rd day in a row, silver rates drop : Gold and silver prices in India edged lower today, tracking muted global cues. On MCX, gold futures today fell 0.43% to ₹50,546 per 10 gram, extending losses to the third day. Silver futures on MCX also declined 0.6% to ₹62,875 per kg. Last week, gold prices in India had retreated ₹1200 per 10 gram as optimism about covid vaccine lifted global risk sentiment and put pressure on the yellow metal. As compared to its August highs of ₹56,200, gold prices are now down about ₹6,000. In global markets, gold rates edged lower today even as coronavirus cases continued to surge in many parts of the world. Gold slid 0.2% to 1,876.85 an ounce. Among other precious metals, silver was flat at $24.47 per ounce while platinum was steady at $925.60.
No comments:
Post a Comment