🍒 12 Top Nationalised Banks Wrote Off Rs6.32 Lakh Crore in 8 Years; Recovered Just 7% of Write Off Debt from Big Defaulters : Over the past eight years, 12 nationalised banks have written off a massive of Rs6.32 lakh crore of bad loans. Of these, as much as Rs2.78 lakh crore of the loans written off were to big defaulters with borrowings of Rs100 crore and above. While the government had aggressively claimed that loans written off are aggressively pursued and recovered, the recovery by these 12 banks from defulters is just 7% or only Rs19,207 crore. In the past four years alone, these 12 PSBs wrote off bad loans amounting to Rs4.95 lakh crore but recovered Rs79,000 crore or 16%. The 12 lenders include the State Bank of India (SBI), Bank of Baroda (BoB), Bank of Maharashtra (BoM), Union Bank of India (UBI), IDBI Bank, Punjab National Bank (PNB), Indian Overseas Bank (IOB), Central Bank of India, Canara Bank, UCO Bank, Indian Bank and Bank of India (BoI). Of these, IDBI Bank was re-categorised as a private sector lender in January 2019 after Life Insurance Corporation of India (LIC) increased its stake to 51% in the bank. - moneylife
🍒 ‘UBI-Corp Bank IT integration complete’ : Union Bank of India (UBI), on Tuesday, said the Information Technology (IT) integration of the erstwhile Corporation Bank with the former has been completed. “With today’s IT Integration, all branches of erstwhile Corporation Bank (including service branches and specialised branches) have been fully integrated with Union Bank of India,” UBI said in a statement. This integration comes in the wake of the amalgamation of Corporation Bank and Andhra Bank with UBI with effect from April 1. UBI said that as per plan, all branches of the erstwhile Andhra Bank will also migrate to Finacle 10 within the current financial year. “All customers of erstwhile Corporation Bank have been successfully migrated to CBS (core banking solution) of Union Bank of India…thereby enabling them to transact seamlessly across branches and delivery channels of UBI,” the statement said. The entire migration has been completed without any change in customers’ account numbers, debit cards or net banking credentials, it added. - Business Line
🍒 SBI RuPay JCB platinum contactless debit card launched : State Bank of India (SBI), in association with Japan’s JCB International Co Ltd (JCB), has launched a debit card on National Payments Corporation of India’s (NPCI) RuPay network. The ‘SBI RuPay JCB platinum contactless debit card’ comes with a dual-interface feature, which will enable customers to perform both contact and contactless transactions in the domestic market and seamless contact transactions overseas. “With this card, consumers would be able to transact on ATMs and PoS terminals across the globe under JCB network. “They can also shop online from JCB-partnered international e-commerce merchants using this card,” SBI, JCB and NPCI said in a joint statement. The ‘SBI RuPay JCB platinum contactless debit card’ supports RuPay offline wallet-based transactions, enabling an additional payment mode within the Card, according to the statement. - Business Line
🍒 IDBI Bank redeems $350-million worth senior notes : IDBI Bank on Tuesday said it has redeemed senior notes, listed on the Singapore Exchange Securities Trading Ltd, aggregating $350 million. The notes, which were redeemed on November 30, carried a coupon of 4.25 per cent. According to IDBI Bank’s regulatory filing, the notes were issued under the bank’s $5-billion MTN (Medium Term Note) Programme for an aggregate principal of $350 million together with accrued interest from the last interest payment date. In its FY20 annual report, the bank said: “During the year, the bank successfully retired long-term FC (foreign currency) borrowings amounting to $370 million comprising bilateral loan of $70 million and Medium-Term Note (MTN) bonds of $300 million. “As on March 31, 2020, the bank’s total outstanding under the MTN Programme was $700 million.”- Business Line
🍒 Yes Bank aims to disburse Rs 10,000 crore retail, MSME loans in December quarter : Yes Bank plans to double both its assets as well as liabilities in the retail and SME (small and medium enterprises) segment in the next two years in an attempt to derisk its book and reduce costs as it seeks to grow after a RBI mandated restructuring in March. Rajan Pental, head of retail at the bank said the bank expects retail and SME loans to make 60% of its loan book by March 2023 up from 45% now similarly retail deposits will increase to 60% of total deposits from 47% now. The bank has also reduced its deposit rates by upto 100 basis points to reduce its costs. One basis point is 0.01 percentage point. "We want to vacate the position of being one of the top deposit rate giving banks and come on par with others in the segment. We have already reduced both our CASA as well as fixed deposit rates," Pental said. Deposits in the bank's savings account now yield a minimum of 4% but still higher than the 2.75% offered by large lenders like State Bank of India (SBI). - economic times
🍒 Court refuses bail to Deepak Kochhar in money laundering case : A court here on Tuesday rejected a bail plea of businessman Deepak Kochhar, husband of former ICICI Bank CEO Chanda Kochhar and an accused in a money laundering case. He was arrested by the Enforcement Directorate (ED) in September under the Prevention of Money Laundering Act (PMLA) in the alleged ICICI Bank-Videocon money laundering case. Special PMLA judge P P Rajvaidya rejected the 'regular' bail application of Deepak Kochhar, filed on merits of the case as against technical grounds. Last month, the court had rejected his 'default' bail plea, filed on the ground that the ED had failed to file a charge sheet in the case within the stipulated period. - economic times
🍒 YES Bank in talks with So Hum Bharat Digital Payments to pick up 9.99% stake : So Hum Bharat Digital Payments, on Tuesday, announced that it is in talks with private sector lender YES Bank for a 9.99 per cent equity investment and will work together on the proposed new umbrella entity (NUE). “So Hum and YES Bank will jointly work towards the NUE’s product and business strategy with key focus on accelerating innovations, inclusion and digital penetration in India,” it said in a statement.- Business Line
🍒 SC rejects Chanda Kochhar's appeal against HC order dismissing her plea regarding termination : The Supreme Court Tuesday rejected Chanda Kochhar's appeal against the Bombay High Court order which had dismissed her plea against her termination as the managing director and CEO of ICICI Bank, saying the issue falls within the realm of a private bank and employee. “Sorry, we are not inclined to interfere with the high court order,” a bench headed by Justice Sanjay Kishan Kaul said, adding, “This fall within the realm of private bank and employee.” The top court was hearing Kochhar's appeal against the March 5 order of the high court which had dismissed her plea against termination as managing director and CEO of ICICI Bank, while noting that the dispute arises from a contract of personal service. - economic times
🍒 LVB bond write-down credit positive for creditors, depositors: Moody's : The decision to write down tier-II bonds of Lakshmi Vilas Bank before its merger with DBS Bank India Ltd is credit positive for depositors and senior creditors due to loss-absorption capacity of such instrument. However, the move is credit negative for holders of LVB’s basel III compliant bonds as they will lose their investment, according to rating agency Moody’s. Terms and conditions of Indian Basel III compliant AT1 and tier-II securities specify that such securities will be written down before authorities can step in to support a bank. On November 26, LVB announced that it has written down in full its Basel III tier-II securities because the Reserve Bank of India (RBI) has deemed the bank to be non-viable or approaching non-viability. This marks the first time that an Indian bank has written down Basel III tier-II securities and follows Yes Bank’s write-down of Basel III Additional tier 1 (AT1) securities earlier in the year for the same reason. - Business Standard
🍒 HC pulls up RBI for leaving it to PMC bank to decide depositors requests for money in emergencies : The Delhi High Court Tuesday pulled up the RBI for leaving it to scam-hit PMC Bank to decide which emergencies cited by its depositors were to be considered for disbursal of Rs 5 lakh to them, saying since the central bank imposed the restrictions it should have been the one taking the decision. Punjab and Maharashtra Cooperative Bank has been put under restrictions, including limiting withdrawals, by the RBI, following the unearthing of a Rs 4,355-crore scam. "The Reserve Bank of India (RBI) was to apply its mind and not act as a post office. If you (RBI) have imposed the restrictions, then you have to apply your mind. You cannot accept what PMC bank says as gospel truth. You cannot leave it to PMC bank to decide to whom it will disburse funds." said a bench of Chief Justice D N Patel and Justice Prateek Jalan. "This is not satisfactory. You cannot leave it to the PMC bank to decide. There has to be some way to monitor it. something independent of the administrator (appointed by RBI)," the bench added. - economic times
🍒 Digital payments go strong in November : Digital payments continued to go strong in November with a sustained growth in transactions through Unified Payments Interface and Immediate Payment Service. Payments through the UPI remained well above the 200 crore mark, data released by the National Payments Corporation of India on Tuesday showed. As many as 221 crore transactions worth ₹3.9-lakh crore were processed on Bhim UPI in November compared to 207 crore transactions amounting to ₹3.86-lakh crore in October. IMPS, which completes 10 years, processed 33.91 crore transactions in November amounting to ₹2.76-lakh crore of payments. In October, 31.89 crore payments totalling ₹2.74-lakh crore took place through IMPS. - Business Line
🍒 FDI in non-life insurance sector slips marginally to Rs 509 cr in FY20 : Foreign direct investment (FDI) in the general insurance sector slipped marginally to Rs 509.07 crore in FY 2019-20 from the previous year, latest data by the General Insurance Council (GIC) showed. In FY2018-19, FDI in the non-life insurance space was recorded at Rs 516.61 crore. Since the opening up of the insurance market in 2000, the non-life sector attracted a total FDI of Rs 4,721.68 crore as on March 2020. It was Rs 4,212.61 crore at the end of March 2019.There are 33 general insurance players, including four public sector insurers, six standalone health insurers and two state-owned specialised companies -- Export Credit Guarantee Corporation of India and Agriculture Insurance Company of India Limited (AIC). It is to be noted that FDI limit in the insurance sector has been hiked to 49 per cent from earlier level of 26 per cent. - economic times
🍒 DHFL rebids: All four suitors including Adani will be given chance to revise their offers : Majority of lenders to Dewan Housing Finance Ltd (DHFL) are in favour of a rebid for the bankrupt lender and new bids are likely to be called by end of the week, multiple people close to the process said. All four suitors including the Adani Group will be given a chance to better their offers as the committee of creditors (CoC) is determined to seek the best price for debt laden housing financier. “We expect the majority of the creditors, including retail debenture and fixed deposit holders, to vote in favour of rebids because it is in everyone's interest to get the best price. Banks are already on board and with the trustee for the debenture holders also likely to seek rebidding, we expect to get the 51% votes needed,” said a person involved in the process.- economic times
🍒 Policybazaar launches income loss insurance vertical : Online insurance marketplace Policybazaar.com has launched a dedicated vertical for consumers to purchase job/income loss insurance products. With this step, Policybazaar aims to provide income replacement benefits/policies to customers for a defined time period. Through this new vertical users can learn more about the product offered by some of India’s leading insurers such as SBI General, Shriram General, Universal Sompo, and Aditya Birla Insurance. - Business Line
🍒 RBI will not make changes in rates: Economists : The Reserve Bank of India monetary policy committee is expected to leave interest rates unchanged when it meets on Friday, after data showing the economy contracting less than expected and persistently high inflation. Economists and market participants are closely watching the commentary from the RBI around liquidity. The overnight call money rate has fallen below the reverse repo rate on days on account of the excess liquidity in the banking system. - Business Line
🍒 Include State Finance Corporations in compound interest waiver scheme: Kerala FM : Kerala Finance Minister Thomas Isaac has expressed concern over the manner in which State Finance Corporations (SFCs) have been left out of the scheme for ex-gratia payment to borrowers of the difference between compound interest and simple interest for six months. The scheme was thrown open to lending institutions with MSME-outstanding loan amounts of up to ₹2 crore to ensure business continuity amid the disruptive influence of the Covid-19 pandemic. All lending units — ranging from public sector and private banks, financial institutions and NBFCs — had been included in the laudable scheme, Isaac stated in a letter to Union Finance Minister Nirmala Sitharaman .- Business Line
🍒 ICRA expects FY21 and FY22 to see lower realisations under IBC : Financial creditors may realise ₹60,000 crore to ₹65,000 crore through IBC (the Insolvency and Bankruptcy Code) in FY21, a significant decline compared to ₹1-lakh crore in FY20, due to pandemic-related issues and suspension of fresh proceedings, according to credit rating agency ICRA. The credit rating agency warned that realisation from resolution plans could continue to suffer in FY22 as fresh insolvency proceedings have been suspended till December 25, 2020, for accounts which default after March 25, 2020, and could be further extended by three more months.. .- Business Line
🍒 Stop banks from offering cashbacks on online purchases, CAIT demands in letter to Nirmala Sitharaman : Traders' body Confederation of All India Traders (CAIT) said in a letter to Finance Minister Nirmala Sitharaman that banks act in collusion with e-commerce companies to provide incentives to customers, which goes against the Reserve Bank of India's Fair Practices Code. "In the present case, it has been noticed that several Banks including State Bank of India, Bank of Baroda, ICICI Bank,, Axis Bank, Citi Bank, HDFC Bank, Kotak Mahindra Bank, HSBC Bank, RBL Bank and others have entered into an unholy alliance with e-commerce companies prominently with Amazon and Walmart-owned Flipkart, forming a cartel and thereby granting 10 percent cash back and other incentives in lieu of making payments using respective bank cards while purchasing goods from online portals," wrote Praveen Khandelwal, National Secretary General, CAIT. - in.finance.yahoo.com
🍒 Paytm waives charges on merchant transactions; to absorb MDR of Rs 600 crore : Fintech major Paytm on Tuesday said it will waive all charges on merchant transactions, and enable its merchant partners to accept payments from Paytm wallet, UPI apps and RuPay cards at zero charges. Paytm will absorb Rs 600 crore in MDR charges annually by banks and other charges to support micro, small and medium enterprises (MSMEs) during the ongoing pandemic, according to a statement. This would help ensure that these merchants have adequate liquidity to expand their businesses, it added. “This initiative will benefit more than 17 million merchants on Paytm ecosystem who use Paytm All-in-One QR, Paytm Soundbox and Paytm All-in-One Android POS to accept payments from their customers,” the statement said. It added that merchants will also have the power to choose whether they want to receive payments directly into their bank accounts or into their Paytm wallet. - financial express
🍒 Gold prices today edge higher after falling ₹2,500 last month, silver rates up : Gold and silver prices today edged higher in Indian markets, tracking an upward trend in global rates. On MCX, February gold futures rose 0.3% to ₹48,070 per 10 gram while silver futures advanced 1.2% to ₹60,977 per kg. In the previous session, gold futures had slipped 0.4% while silver had edged 0.2% lower. Gold prices have been on a downward path since hitting record highs of ₹56,200 in August. In November alone, gold prices fell about ₹2,500 per 10 gram.
🍒 Sensex surges 506 points to new closing high; Nifty tops 13,100 : The 30-share BSE index ended 505.72 points or 1.15 per cent higher at 44,655.44. Similarly, the broader NSE Nifty surged 140.10 points or 1.08 per cent to close at 13,109.05.Sun Pharma was the top gainer in the Sensex pack, rising over 5 per cent, followed by IndusInd Bank, Tech Mahindra, ONGC, Bharti Airtel, Infosys, ICICI Bank and Bajaj Auto.On the other hand, Kotak Bank, Nestle India, Titan, Bajaj Finance, HDFC Bank and NTPC were among the laggards.Sector-wise, BSE realty, telecom and teck indices rose up to 3.49 per cent.
🍒 Rupee settles 37 paise higher at 73.68 against US dollar : The rupee appreciated 37 paise and settled for the day at 73.68 (provisional) against the US dollar on Tuesday as positive domestic equities and sustained foreign fund inflows strengthened investor sentiment. Besides, positive developments on Covid-19 vaccine front, improved domestic macro-economic data and weakness of the American currency against key rivals also supported the rupee..
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