🍒 Bank lending, deposit rates have bottomed out: SBI chief Dinesh Khara : Bank lending rates “have actually bottomed”, and will remain at these levels for a while till the economy recovers, Dinesh Kumar Khara, chairman of the country’s largest lender, State Bank of India (SBI), told Business Standard in an exclusive interview on Wednesday. Khara said SBI and other banks in the country were aware that the economy required softer rates to continue. “We are very mindful of supporting growth at this point of time.” On Friday, the Reserve Bank of India (RBI) is expected to maintain the "status quo" as far as its policy rate and stance are concerned, said Khara, who took over from Rajnish Kumar as SBI chairman in early October. Unlike Kumar though, Khara is in no hurry to list YONO, SBI’s digital banking application. Rather, he said the bank would evaluate various options for the app, which Kumar once had estimated could be valued at $40-50 billion. - Business Standard
🍒 Canara Bank raises fixed deposit rates by 0.2 per cent : State-owned Canara Bank has raised its rates by 0.2 per cent for fixed deposits having a maturity period of at least two years. With the increase, fixed deposits with tenure of two years but less than three years will now fetch 5.4 per cent from a rate of 5.2 per cent earlier, the bank said in a statement on Thursday. For fixed deposits with tenure of 3-10 years, the interest rate has been increased to 5.5 per cent from 5.3 per cent. Senior citizens are offered 0.50 per cent extra on the revised rates, the statement said. The new rates are effective from November 27. With the latest revision in rates, Canara Bank is offering the highest interest rate for fixed deposits having tenure of 2-10 years among all the other public sector banks, as per the statement. Canara Bank’s rate hike comes just a day before the Reserve Bank of India’s bi-monthly monetary policy announcement. The central bank is expected to keep benchmark policy rate unchanged at 4 per cent. - financial express
🍒 Union Bank of India plans to raise up to ₹6,800 crore : Union Bank of India (UBI), on Thursday, said plans to raise equity capital of up to ₹6,800 crore, including premium, if any, in FY21. As per the public sector bank’s regulatory filing, the capital-raise will be via various modes such as Follow-on Public Offer, Rights Issue, Private Placement, including Qualified Institutions Placement, and/or Preferential Allotment to the Government of lndia and/or other institutions. The bank said an Extraordinary General Meeting will be held on December 30to obtain shareholders’ approval for raising of equity capital. As at September-end 2020, the government owned 89.07 per cent stake in the bank. - Business Line
🍒 IDBI Bank puts home loan, LAP, corporate NPAs worth around Rs 970 cr on sale : IDBI Bank has put non-performing assets (NPAs) worth around Rs 970 crore on sale last month, according to notifications issued by the bank. The assets on the block include the lender’s exposure to KSK Mahanadi Power Company, two smaller corporate loans and 17 smaller loan accounts from the housing loan and loan against property (LAP) segments. The gross principal outstanding in the housing and LAP loan accounts is Rs 47.78 crore and they are being offered at a reserve price of Rs 27 crore on an all-cash basis to asset reconstruction companies (ARCs) and other financial entities. Loans to two Bhubaneswar-based companies — Raipur Power & Steel and Parth Concast — are being offered at a total reserve price of Rs 77.57 crore together. - financial express
🍒 ICICI Bank, Indian Bank at risk of becoming 'fallen angels', warns S&P : Many potential “fallen angel” banks — including ICICI Bank and public sector lender Indian Bank — face risks from a more severe economic downturn due to the Covid-19 pandemic, Standard and Poor’s (S&P) has warned. S&P terms an entity a “fallen angel” if its rating is lowered to speculative-grade (a long-term rating of ‘BB+’ or lower) from investment-grade (a long-term rating of 'BBB-' or higher). Potential “fallen angels” are issuers rated ‘BBB-’ with negative outlook or on CreditWatch negative. There have been three fallen angels in Asia-Pacific since the Covid-19 outbreak — Axis Bank, Bajaj Finance, and Hero FinCorp — S&P said in a statement. - Business Standard
🍒 RBI pulls up HDFC over outages, tells bank to halt all digital launches, new credit cards : Private lender HDFC Bank on Thursday said the Reserve Bank of India has advised the bank to temporarily stop all digital launches and sourcing new credit card customers. This after the bank suffered its third big outage in the span of just two years. The RBI order also states that the lender’s board needs to examine these lapses and fix accountability. “The RBI has advised to stop all launches of the Digital Business generating activities planned under its program - Digital 2.0 (to be launched) and other proposed business generating IT applications and (sourcing of new credit card customers,” the bank said in an exchange filing. “The above measures shall be considered for lifting upon satisfactory compliance with the major critical observations as identified by the RBI.” - economic times
🍒 RBI ban on HDFC Bank could stay for 3-6 months: Macquarie Capital : The Reserve Bank of India move to temporarily halt all digital launches and sourcing new credit card customers for HDFC Bank could stay for three to six months according to a note by Macquarie Capital. The bank could apply to the RBI for a review of its decision only after fixing the technology and scale issues, the brokerage house noted. “We believe the ban could be in place for around 3-6months as the bank would at least take a quarter to resolve some of these issues and then invite RBI for a review post which RBI may relax the restrictions in our view,” said Suresh Ganapathy, associate director, Macquarie Capital. While this is the first big challenge for newly minted chief executive Sasidhar Jagdishan, Ganapathy argued that one should not give much weight to the fact that the outage issue happened after Puri’s exit. “We won’t read this as an issue specific to the new CEO,” he said. “Technology outages were also happening under the earlier CEO Mr. Puri. As argued earlier, the biggest challenge for the bank under the new CEO Sashi Jagdishan is to build scale when they already have a 10% market share.” - economic times
🍒 After RBI action on outages, HDFC Bank CEO steps in to allay customer fears : HDFC Bank CEO Sashidhar Jagdishan on Thursday assured existing clients of the bank and said that they could continue to transact with the bank without any concern. Jagdishan also said that the bank with comply with the regulator’s diktat. RBI on Thursday asked HDFC Bank to temporarily halt new digital offerings and stop sourcing credit card customers. “Many of you may have read or heard about the RBI order asking us to temporarily stop any new digital banking launches and sourcing of new credit card customers. We will comply with the regulator's requirements,” Jagdishan said in a note to customers. “We take this opportunity to assure our existing customers that there is no reason to worry. You can continue to transact with the Bank without any concern.” - economic times
🍒 Bank of India to acquire 49% stake each in BOI AXA Investment Managers, BOI AXA Trustee Services : Bank of India (BoI) on Thursday said it will purchase 49 per cent stake each in BOI AXA Investment Managers Pvt Ltd (BAIM) and BOI AXA Trustee Services Pvt Ltd (BATS) from AXA investment Managers Asia Holdings Pvt Ltd (AXA IM). Pursuant to this transaction, BoI shall hold 100 per cent equity shares in BAIM and BATS. Currently, BOI AXA Mutual Fund is a joint venture between BoI (51 per cent stake) and AXA IM (49 per cent). BoI had acquired a 51 per cent stake in the then Bharti AXA Investment Managers Pvt Ltd on May 7, 2012. The bank said the acquisition is expected to be completed by end of December or such other extended date mutually agreed between BoI and AXA 1M. - Business Line
🍒 ICICI Bank opens representative office in Nepal : ICICI Bank, on Tuesday, has inaugurated its representative office Kathmandu, marking the foray of an Indian private sector bank in Nepal. The representative office at the business district of Thapathali will closely work with domestic banks in Nepal to facilitate investment, trade, payments and treasury business between the two countries. “With this foray, ICICI Bank has expanded its global footprint to 15 countries, including India,” said ICICI Bank in a statement. The bank has appointed Ranjan Kumar Thapa as the Chief Representative for its Nepal operations. - Business Line
🍒 Increasing private participation in banking will reduce fiscal bill: ICRA : Rating firm ICRA on Thursday said that the Reserve Bank of India’s internal working group (IWG) suggestions to increase participation in the banking sector will augur well for private players, reduce over reliance on public sector banks and cut the government’s fiscal bill. “Increasing private participation in the banking sector is a pressing need given the fact that continuing dependence only on public sector banks can escalate the fiscal bill. Also relying on PSBs for credit expansion could entail significant capital infusion in public banks by Government of India, which itself is constrained for resources,” said Anil Gupta, Vice President, ICRA. - economic times
🍒 Sarvatra on-boards 50 co-operative banks on UPI platform : Sarvatra Technologies, a banking technology provider announced that it has on-boarded 50 urban co-operative banks live on its Unified Payments Interface (UPI) platform, thereby making them interoperable with all the large banks across the country. The landmark milestone reflects more than 170 per cent annual growth in the number of co-operative banks on the company’s UPI platform. - Business Line
🍒 ‘74% borrowers willing to up their financial literacy quotient’ : India has miles to go on the financial literacy front, going by the latest findings of a Home Credit India survey. As many as 68 per cent of survey respondents did not know their CIBIL score, the survey revealed. All the more disappointing is that 76 per cent of borrowers do not know their interest amount on their loans. However, the good news is that 74 per cent of respondents are willing to take financial literacy lessons to manage their finances better. Home Credit India, a local arm of the international consumer finance provider with operations in Europe and Asia, conducted this research across 7 cities to understand the levels of financial literacy among borrowers. Close to 1,000 respondents were interviewed in the survey. - Business Line
🍒 Flipkart announces partial spin-off of PhonePe : Flipkart, India’s homegrown e-commerce marketplace, on Thursday announced a partial spin-off of its 100 per cent subsidiary PhonePe, India’s largest digital payments platform. While Flipkart will continue to remain PhonePe’s majority shareholder with 87 per cent stake, 10 per cent will be held by Walmart and 3 per cent by Flipkart’s existing investors including Tiger Global. The move will help PhonePe access dedicated, long-term capital to fund its growth ambitions. - Business Line
🍒 LVB shareholders believe merger with DBS negates bank’s inherent strengths : The legal tug-of-war between the shareholders of Lakshmi Vilas Bank (LVB) and the Reserve Bank of India (RBI) regarding valuation of their shares, which have been marked down to zero following the amalgamation of the financially-stressed bank with DBS India Ltd (DBIL), is unlikely to end soon. Each party to the case, currently on in the Bombay and Madras High Courts, expects the other to seek relief in the Supreme Court should they lose the case in the High Court. - Business Line
🍒 Religare files petition in Delhi HC to substitute DBS Bank with LVB : Religare Finvest has filed a petition with the Delhi High Court to make DBS Bank India a respondent in its pending case against Lakshmi Vilas Bank. The move comes after the merger of LVB with DBS Bank India with effect from November 27. The Bench, headed by Justice Rajiv Shakdher, in an order on December 1, has given DBS Bank India five weeks to respond. It has listed the matter for hearing on February 25. Religare Finvest had filed a case against LVB for misappropriating ₹750 crore of fixed deposits with inappropriate authorisation. The amount has now risen to ₹900 crore with interest. “The present application is being filed under Order XXII Rule 10 of the Code of Civil Procedure, 1908 for substitution of the defendant, Lakshmi Vilas Bank (LVB) with DBS Bank India Limited (DBS),” said Religare in its petition. - Business Line
🍒 Shriram City Union Fin clocks its highest two-wheeler loan disbursals at ₹1,000 cr in Nov : Shriram City Union Finance on Thursday said it has clocked its highest ever two-wheeler loan disbursals at over ₹1,000 crore in November on the back of festive demand. The company financed over 1.66 lakh two-wheeler loans in November 2020, it said in a release. This represents disbursements of slightly over ₹1,000 crore. This is a new high for the lender, Shriram City Union Finance said. - Business Line
🍒 NCLT gives nod to Reliance Infratel resolution plan : The dedicated insolvency court has given its nod to Reliance Infratel’s (RITL) resolution plan, thereby paving way for Reliance Jio Infocomm (Jio) to pick up the tower and fibre assets of this bankrupt company. Under the plan approved by National Company Law Tribunal (NCLT), lenders may recover under Rs 4000 crore through the resolution plan of Reliance Infratel,. This 100% subsidiary of Reliance Communications (RCom) holds 43,000 towers and and 1,72,000 km of fibre, a person familiar with the matter said. "However, the NCLT Resolution plan distribution is subject to disposal of Doha Bank Intervention Application," the person added. - economc times
🍒 Fitch affirms Issuer Default Rating on four PSBs including SBI : Fitch Ratings today affirmed ratings on four public sector banks–-State Bank of India, Bank of Baroda, Punjab National Bank and Bank of India. It affirmed Issuer Default Ratings (IDRs) at 'BBB-' for the lenders.The rating agency has maintained negative outlook on ratings. It mirrors the Outlook on India's sovereign rating of 'BBB-', which was revised to Negative from Stable on June 18, 2020. The revision factored in the impact of the escalating coronavirus pandemic on India's economy. The agency has also upgraded private lender IDBI Bank’s Viability Rating (VR) by one-notch from “ccc” to “ccc+”. The upgrade in VR is due mainly to the improved core capitalisation and the high loan-loss coverage. This provide some resilience to the capital buffers against potential asset-quality stress. It also factors in the possibility for more fresh capital in the current financial year (FY21). If successfully raised, it can provide a significant philip to the capital buffers, it said. - Business Standard
🍒 Govt's move to pare stake in Axis Bank fuels hope of divestment by stealth : The Centre’s move to pare its holding in Axis Bank--held under the Specified Undertaking of The Unit Trust of India’s (Suuti)--has stoked hopes of disinvestment by stealth. Last week, the government sold shares worth Rs 220 crore in Axis Bank in the open market. The transaction, carried out without a formal announcement, came to light only this week. Market players said the government should pursue the same strategy for selling shares in listed PSUs. A prior announcement often leads to bear hammering of the stock causing harm to the government as well as other shareholders, they add. The government usually offloads stake in listed firms using the offer for sale (OFS) route. Under this, the seller has to announce the details of the transaction at least a day in advance. Often the secondary market price tends to converge with the floor price set by the seller in case of a PSU. This impacts demand for the share sale. Experts said instead of an OFS, the government can use the open market route, wherever possible.- Business Standard
🍒 Former US Ambassador to India Richard Verma joins Mastercard as executive vice-president : Former US Ambassador to India Richard Verma has joined leading financial services company Mastercard as its executive vice-president for global public policy and regulatory affairs. In this capacity, Verma will oversee the company's public policy, regulatory affairs and litigation teams around the world, Mastercard said in a statement. - moneycontrol.
🍒 Sensex ends marginally higher; Nifty hits record peak ; After scaling an all-time intra-day peak of 44,953.01, the 30-share BSE Sensex pared some gains to end 14.61 points or 0.03 per cent higher at 44,632.65. Similarly, the broader NSE Nifty touched a fresh intra-day high of 13,216.60, before settling 20.15 points or 0.15 per cent up at 13,133.90 -- its lifetime closing high. Maruti was the top gainer in the Sensex pack, rallying around 7 per cent, followed by ONGC, Asian Paints, NTPC, SBI, Bajaj Finserv and Tata Steel. On the other hand, HDFC Bank, TCS, Bajaj Auto, Infosys and M&M were among the laggards.
🍒 Bank Of India shares rise 4% on acquiring controlling stake in subsidiaries : Bank Of India share price rose 4 percent intraday on December 3 after the bank said it is going to acquire the remaining 49 percent stake in its two subsidiaries. Bank of India has entered into a share purchase agreement (SPA) with AXA investment Managers Asia Holdings Private Limited (AXA IM) whereby Bank of India has agreed to purchase AXA IM's entire 49% equity shares in BOI AXA Investment Managers Private Limited (BAIM); and entire 49% equity shares in BOI AXA Trustee Services Private Limited (BATS). Bank of India is holding 51% equity shares in BAIM and BATS.
🍒 Rupee loss widens by 12 paise to 73.93 against USD : The rupee weakened by another 12 paise to end at 73.93 against the US dollar on Thursday as investors remained cautious ahead of the RBI policy meet outcome. Analysts said investor focus is on the Reserve Bank of India’s Monetary Policy Committee’s three-day interest rate-setting meeting that started on Wednesday, with the decision due on Friday.
🍒 Gold prices up Rs 262 to Rs 49,432 per 10 gram on weak rupee, silver falls : Gold prices jumped Rs 262 to Rs 49,432 per 10 gram in the Mumbai retail market on rupee depreciation and positive global trend. The precious metal price was supported by a weaker dollar and fall in US treasuries. The rate of 10 gram 22-carat gold in Mumbai was Rs 45,280 plus 3 percent GST, while 24-carat 10 gram was Rs 49,432 plus GST. The 18-carat gold quoted at Rs 37,074 plus GST in the retail market. Silver prices fell marginally by Rs 88 to Rs 63,118 per kg from its closing on December 2..
No comments:
Post a Comment