🍒 PNB seeks consultants to sell bank’s real estate assets : Punjab National Bank (PNB) is looking to appoint consultants who will help identify the bank’s real estate assets for sale and carry out the sale process. Sources close to the development said properties for sale – both land and buildings – are being identified on an ongoing basis. PNB was one of the anchor banks which amalgamated smaller banks in the last round of mergers. Effective April 1, Oriental Bank of Commerce (OBC) and United Bank of India stand merged with PNB and the sale exercise may be aimed at better management of the real estate portfolio of the merged entity. The sale will be carried out for two categories of assets. Category A will consist of properties priced between Rs 25 crore and Rs 150 crore while Category B will comprise assets worth more than Rs 150 crore. - financial express
🍒 Bank of Baroda: With loan recast hazy, strong re-rating few quarters away : If State Bank of India’s September quarter (Q2) results stunned the Street, Bank of Baroda’s (BoB) performance was no less. With over five per cent loan growth and 15 per cent growth in retail credit, thus aiding 128 per cent year-on-year increase in net profit, the good show has helped the stock gain over 11 per cent post Q2 results. The interesting aspect lately playing out is that with loan book size of Rs 6.69 trillion as on September 30, 2020, BoB has displaced Punjab National Bank (PNB; Rs 6.53 trillion) on this parameter. What’s noteworthy is that last year, when the mega consolidation of public-sector banks (PSBs) happened, PNB retained its number two slot in terms of loan book, while BoB took the third position. While both banks owing to the merger and ageing provisions of legacy bad loans have written off a reasonable portion of their troubled assets, the present change in the pecking order of loan book positions BoB favourably. - Business Stanard.
🍒 Indian Overseas Bank Recovers Just 0.5% Out of Rs17,821 Crore Written Off Debt from 66 Big Defaulters, Including Bhushan Steel, Lanco group, Frost International, ABG Shipyard, Rotomac and IVRCL : While common borrowers are harassed for recovery of smaller loan amounts, when it comes to big borrowers, banks are often found giving preferential treatment to these defaulters. Nor are the banks willing to part with information regarding these write-offs. In fact, of the 10 public sector banks (PSBs) about which Moneylife wrote, only one lender, namely the State Bank of India (SBI), had revealed names of big defaulters whose bad debt was written off and not too impressive efforts were taken to recover the dues.
Get Moneylife's. Indian Overseas Bank (IOB) has now shared the list of its big defaulters, who have borrowed Rs100 crore and more, which were written off from its books. - moneylife.
🍒 Proposed LVB-DBS merger a remarkable job: RBI board member : RBI board member Manish Sabharwal on Thursday praised the central bank on its proposal to merge Lakshmi Vilas Bank (LVB) with the Indian arm of Singapore-based DBS Bank, saying the scheme is a new template where a distressed private sector entity is rescued by another private player. On Tuesday, the government imposed a 30-day moratorium on Lakshmi Vilas Bank (LVB), restricting cash withdrawals at Rs 25,000 per depositor, and simultaneously announced a scheme to merge the cash-strapped lender with DBS Bank India. - economic times
🍒 With Lakshmi Vilas deal, DBS faces potential culture clash : 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. The plan will accelerate Singapore-based DBS's expansion ambitions in India and potentially transform it from a largely digital bank in the country to one with hundreds of branches. - economic times
🍒 Supreme Court to resume hearing on loan moratorium, interest on interest waiver case today : The apex court will resume hearing a batch of petitions urging an extension of the loan moratorium period and waiver of interest on interest on term loans today. The RBI had given a loan moratorium owing to Covid-19 and its fallout on businesses and consumers' income. The period of moratorium had ended on August 31.Subsequently, borrowers had sought relief from the top court asking for waiver of interest on interest and a further extension of the moratorium period.The finance ministry in its affidavit filed before the top court on October 25 had stated that the government has decided to provide a waiver on compounding of interest for the the moratorium period for loans to MSMEs and personal loans up to Rs 2 crore. The RBI had directed banks to credit the requisite amount to borrowers' accounts. - economic times
🍒 Airtel Payments Bank to expand footprint in West Bengal : Airtel Payments Bank is rapidly expanding its footprint in West Bengal to take banking services to unbanked villages in remote areas and to contribute to financial inclusion in the state. The bank has a network of over 30,000 neighbourhood banking points spread across West Bengal, and plans to expand its banking points in the state by 50 per cent by March 2021, the company said on Wednesday. Over 12,500 unbanked villages in the state now have access to formal banking services with Airtel Payments Bank. Majority of the residents of these villages had no bank account or had to travel long distances to reach the nearest bank branch, the officials said.- economic times
🍒 RBI's swift resolution of Lakshmi Vilas Bank to maintain sector stability: S&P : S&P Global Ratings on Thursday said the Reserve Bank of India's swift resolution of troubled Lakshmi Vilas Bank will keep contagion at bay and help maintain stability in the banking system. The Reserve Bank has proposed merging Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd (DBIL). As part of the proposal, DBIL, the wholly owned subsidiary of Singapore-based DBS Bank, will inject Rs 2,500 crore into the merged entity to support its financial position. S&P said this deal is positive for India's banking sector and will bring much-needed relief to LVB, which has been struggling for many years. "The RBI's swift resolution of troubled Lakshmi Vilas Bank will keep contagion at bay and help maintain stability in the banking system. We believe the RBI took into account DBIL's healthy balance sheet and capitalization when considering potential suitors for LVB," S&P said. - economic times
🍒 Axis Bank offers e-governance solutions to Bangalore Water Supply and Sewerage Board : Private sector lender Axis Bank has partnered with Bangalore Water Supply and Sewerage Board (BWSSB) to manage various e-payment collections through digital and offline modes. The integrated payment solutions will help BWSSB authorities to collect payments from its 10 lakhs plus customers in a seamless and effective way. All BWSSB customers can now pay digitally through Bharat Bill Payment System (BBPS), BHIM UPI/QR Code or deposit cash/cheque/DD at BWSSB kiosks, the bank said in a press release.- economic times
🍒 Lakshmi Vilas Bank bailout: A plum deal for DBS may nudge other foreign banks too : The existential crisis at Lakshmi Vilas Bank has been warded off. Unlike YES Bank, the resolution plan is not a half-hearted attempt to bail out the bank, which is welcome. The RBI’s proposal to amalgamate LVB with DBS Bank India (DBIL), a wholly-owned subsidiary of DBS Bank Singapore, is a clear and clean way of putting the long drawn uncertainty of the bank’s misfortunes to rest. What’s more, it now stretches the line of “white knights” that the RBI can call upon to bail out other stressed banks. The move is welcome on two counts. One, rather than an already weak and capital-starved domestic bank being saddled with LVB, the RBI has picked a bank with strong balance sheet and deep pockets. Two, the RBI has possibly nudged other foreign banks to consider similar opportunities to deepen their foothold in the Indian market. - Business Line
🍒 IL&FS Fin Services to sell external corporate loan book : IL&FS Financial Services plans to sell its external corporate loan book worth about ₹5,000 crore. It would be auctioned off through a bid process, and the public process of inviting bids is likely to be started this week. “The sale of the loans would be on cash consideration,” the company said, adding that it is part of the overall process to reduce the debt of IL&FS. IL&FS Financial Services, or IFIN, is a wholly-owned subsidiary of IL&FS, and is registered with the Reserve Bank of India as a systemically important, non-deposit accepting non-banking finance company. - Business Line
🍒 BharatPe plans to scale up to 65 cities by December : Merchant payment company BharatPe, on Thursday, announced plans to scale up to 65 cities by December. “The company is currently present in over 35 cities, and plans to substantially scale up its presence by adding another 30 cities to its list by December 2020. The cities include tier-1 cities like Kolkata and Chennai, emerging cities like Coimbatore, Kochi, Dehradun, Nagpur, Bhubaneswar, Patna, as well as tourist hubs like Amritsar, Varanasi, Agra, Allahabad, among others,” said BharatPe in a statement. - Business Line
🍒 Retail shareholding in LVB rises 7.69 percentage points in last one year : Retail investors have been caught on the wrong foot yet again in accumulating shares of Lakshmi Vilas Bank over the last two years even as the capital-starved lender was struggling with mounting losses, high non-performing assets (NPAs) and a host of other corporate governance issues. According to latest shareholding data, retail shareholding in LVB increased to 46.73 per cent as of September 2020 from 39.04 per cent during the same period last year. The increase in retail participation came despite the lender being placed under the Prompt Corrective Action (PCA) framework by the RBI in September 2019 on account of high net NPAs, insufficient capital, negative return on assets (RoA) for two consecutive years and high leverage. - Business Line
🍒 Shareholders question valuation of LVB : The valuation of troubled Lakshmi Vilas Bank in the proposed amalgamation with DBS Bank is being questioned by shareholders, though a legal redress may not be possible, say analysts. “The proposed scheme is not clear on as to what the shareholders of LVB will get. It looks like a transfer of business rather than an amalgamation. While the title to the scheme is mentioned as amalgamation, it is more a slump sale. More clarity will be required on this,” said KR Pradeep, former promoter of LVB. - Business Line
🍒 RXIL, Tata AIG initiate trade credit insurance in sandbox environment : Receivables Exchange of India Ltd (RXIL) initiated a Trade Credit Insurance (TCI) backed transaction with Tata AIG as the insurer and ICICI Bank and Yes Bank as the financiers in a sandbox environment. “This is the first time a TReDS platform has tested the efficacy of TCI backed transaction, improving the ability of financiers in assigning credit limits to corporates. TCI, once implemented post regulatory approvals, will enable financiers to discount the invoices drawn on lower-rated corporate buyers, by their MSME sellers and will improve the liquidity from lenders,” RXIL said in a statement on Thursday. - Business Line
🍒 Kotak Mahindra MF launches ESG Opportunities Fund : Kotak Mahindra Asset Management Company has launched ESG Opportunities Fund, which will focus on environmental, social and governance (ESG) factors and the principles for responsible investing. The new fund offer will open for subscription between Friday and December 4. Kotak will use Sustainalytics ESG Risk Ratings, a leading global provider of ESG research, ratings and data to support its Kotak ESG Opportunities Fund. - Business Line
🍒 NHB, lenders tussle may delay DHFL resolution : A tug-of-war has broken out between the National Housing Bank (NHB) and other lenders vis-a-vis the corporate insolvency resolution process (CIRP) over the scam-hit Dewan Housing Finance Corporation Ltd (DHFL). While the NHB is asserting its right to receive proceeds from the ongoing CIRP on a preferential basis as per the Act governing it, lenders say the NHB has conceded pari-passu (equal footing) charge for its ₹2,350-crore refinance exposure to DHFL.- Business Line
🍒 RBI imposes fine on Muthoot Finance, Manappuram Finance for non-compliance : The RBI on Thursday said it has imposed a penalty of Rs 10 lakh on Muthoot Finance, Ernakulam, for non-compliance with directions on maintaining loan to value ratio in gold loans and on obtaining copy of PAN card of the borrower while granting gold loans of over Rs 5 lakh. The central bank has also imposed a penalty of Rs 5 lakh on Manappuram Finance, Thrissur for non-compliance with directions on verification of ownership of gold jewellery.Regarding Muthoot Finance, the central bank said the statutory inspection of the company with reference to its financial position as on March 31, 2018 and March 31, 2019, revealed non-compliance with the directions issued by it. A notice was issued to the company advising it to "show cause as to why penalty should not be imposed for failure to comply" with the directions issued by the Reserve Bank of India (RBI). - Business Stanard.
🍒 Indices end in red; Sensex tanks 580 points : After briefly touching its record intra-day high of 44,230 in a volatile session, the 30-share BSE index ended 580.09 points or 1.31 per cent lower at 43,599.96. Similarly, the broader NSE Nifty hit a fresh intra-day peak of 12,963, before ending 166.55 points or 1.29 per cent lower at 12,771.70. SBI was the top laggard in the Sensex pack, tumbling around 5 per cent, followed by Axis Bank, ICICI Bank, UltraTech Cement, Bajaj Finance, HDFC Bank and Bharti Airtel. On the other hand, PowerGrid, ITC, NTPC, Tata Steel and Titan were among the gainers. - Business Line
🍒 Rupee settles 8 paise lower at 74.27 against US dollar : The rupee depreciated 8 paise to settle at 74.27 (provisional) against the US dollar on Thursday, tracking muted domestic equities and strong American currency. At the interbank forex market, the domestic unit opened at 74.28 against the US dollar and touched an intra-day high of 74.22 and a low of 74.33. It finally closed at 74.27 against the greenback, registering a fall of 8 paise over its previous close. On Wednesday, the rupee had settled at 74.19 against the US dollar. - Business Line
🍒 Gold prices today fall for 4th day in row, silver rates slump : Gold and silver prices today slipped in Indian markets, extending their recent decline. On MCX, gold futures fell 0.3% to ₹50,180 per 10 gram in its fourth straight day of losses while silver futures declined 0.8% to ₹62,043 per kg. Gold and silver prices had fallen sharply in previous session. Gold fell about ₹450 per 10 gram while silver rates declined ₹718 per kg. Gold prices are now down more than ₹6000 from their August highs of ₹56,200. In global markets, gold prices slipped today, pressurized by a stronger US dollar. Optimism about progress in covid vaccine development also dented the precious metal's appeal. Spot gold fell 0.1% to $1,869.86 per ounce..
No comments:
Post a Comment