🍒 Canara Bank sets issue price for Rs 2,000 crore QIP at Rs 103.50 a share : State-run Canara Bank on December 10 said it has approved the issue price at Rs 103.50 per share for its qualified institutional placement (QIP) to raise Rs 2,000 crore. Earlier this week, the bank had set the floor price for the issue at Rs 103.50 apiece. In respect of the QIP, the sub-committee of the board at its meeting held on December 10 "approved the closure of the issue period for QIP today (i.e., December 10, 2020)", Canara Bank said in a regulatory filing.The sub-committee approved the "issue price at the floor price of Rs 103.50 per equity share…for an aggregate value of Rs 2,000 crore to be allotted to eligible qualified institutional buyers in the QIP", the bank said. Further, it has also approved the confirmation of allocation note to be sent to the qualified institutional buyers, intimating them of allocation of equity shares pursuant to the QIP, it added. Stock of Canara Bank closed 4.37 per cent down at Rs 122.50 apiece on BSE. - moneycontrol
🍒 Indian Bank aims to grow MSME portfolio riding on mentoring programme : Indian Bank is aiming to grow its MSME portfolio riding on its small entrepreneurship mentoring programme, christened MSME Prerana, as it will enable small businesses to access bank credit more easily. The bank’s MSME portfolio is of Rs 65,176 crore (17.34 lakh accounts), which is 18% of total advances portfolio. During the first half of 2020-21, the MSME portfolio had grown by 14.73%. Under the Prerana, online training sessions for MSMEs are being conducted to train them in basics of accounting, maintenance of books of accounts, government and bank schemes. Training programmes are being arranged in vernacular languages for the benefit of MSMEs. The bank has entered into tie-ups with Poornatha & Co, a entrepreneurial development organisation and Michigan Academy for Developing Entrepreneurs for this purpose. The lender has recently started its fourth batch of MSME Prerana for entrepreneurs in Tamil Nadu. MSME Prerana, a first-of-its-kind initiative by a bank for the MSME sector, was launched by Union finance minister Nirmala Sitharaman on October 6, 2020. - financial express
🍒 RBI imposes penalty of ₹10 lakh on HDFC Bank : Private sector lender HDFC Bank, on Thursday, said the Reserve Bank of India has imposed a penalty of ₹10 lakh on it. “The RBI has, vide its letter dated December 4 (which was received by the bank on December 9), imposed a monetary penalty of ₹10 lakh on the bank for bouncing of SGL, which lead to shortage of balance in certain securities in the bank’s CSGL account on November 19,” it said in a regulatory filing. The bank has since enhanced its review mechanism to ensure that such incidents do not recur, it further said. On Thursday, HDFC Bank scrip closed 1.42 per cent lower at ₹1,385.85 apiece on the BSE.- Business Line
🍒 RBI to Kotak Mahindra Bank: No dividend payment on perpetual non-cumulative preference shares : The Reserve Bank of India has restricted Kotak Mahindra Bank from paying dividend on perpetual non-cumulative preference shares (PNCPS). The private sector lender, in a regulatory filing, said it has received communication from the RBI on this issue. The central bank had, on December 4, issued a circular advising banks not to make any dividend payment on equity shares from the profits pertaining to the financial year ended March 31, 2020. “It is clarified that the above restriction on dividend distribution also applies to PNCPS,” the RBI said in its letter to Kotak Mahindra Bank.- Business Line
🍒 Indian Bank makes requisite accounting entries to set off losses : Indian Bank said that it made requisite accounting entries setting off accumulated losses of Rs18,975.53 crore from the share premium account of the bank. The bank informed exchanges that on November 30, 2020, a special resolution was passed by the shareholders of the bank approving "Appropriation of accumulated losses of Rs.18,975.53 crore from share premium account of the bank in the Extraordinary General Meeting (EGM), we have to inform you further that the bank on the date, with prior approval of Reserve Bank of India, has passed the requisite accounting entries setting off accumulated losses of Rs.18,975.53 crore from share premium account of the bank. On November 30, at the extraordinary general meeting (EGM) the Bank approved the appropriation of accumulated losses of Rs 18,975.53 crore from the share premium account of the bank. - Business Standard
🍒 RBI lays down stringent dividend distribution formulae for NBFCs : The Reserve Bank of India has said that non-banking finance companies (NBFC) with minimum 15% capital adequacy and net non-performing assets (NPA) below 6% for three years will be eligible to declare dividend from this fiscal onwards. In a graded dividend payout format released on Wednesday, the regulator said that a better managed NBFC with less than 4% net NPA can still become eligible for dividend distribution even if the minimum capital and leverage norms are not met for the previous two years. These are part of a matrix where capital adequacy, leverage ratio, adjusted net worth and net NPA set the criteria for distributing the earnings with shareholders. - economic times
🍒 ICICI opens new front with mobile app interoperability, other banks may follow : State Bank of India (SBI) will follow ICICI Bank's unprecedented move to open its mobile application to use by other bank's customers using the UPI platform, opening a new front in the battle for new customers and cheap deposits in the banking sector. ICICI on Monday announced that customers of any bank can link their bank account generate a UPI ID and start sending and receiving money to any bank account, payment app or digital wallet immediately. Moreover customers will also get instant access to the entire range of ICICI Bank’s banking services. Anup Bagchi, executive director, retail banking at ICICI said the bank hopes to benefit from new customer leads and ultimately deposits in the long run by allowing other bank customers to use its application. - economic times
🍒 Kotak can’t pay dividend on preference shares, says RBI : The Reserve Bank of India (RBI) has barred Kotak Mahindra Bank from paying dividend on perpetual non-cumulative preference shares (PNCPS) worth ₹500 crore that it sold in 2018 to comply with a regulatory ceiling on promoter shareholding. The regulator first ordered banks and certain categories of non-banks on 4 December not to pay dividends from their profits in FY20 to conserve capital but clarified on Thursday that it applied to PNCPS as well in a letter to Kotak Mahindra Bank. - Live Mint
🍒 Despite improved collections, bad loans could rise: Moody’s : Despite improvement in collection efficiencies delinquencies will continue to rise amid weak economic conditions, Moody’s Investors Service said in a report. The rating agency said that Indian asset-backed securities (ABS) performance risks will remain elevated over the next 12 months, as weak economic conditions will continue to hurt borrowers’ ability to repay loans. “As payment moratoriums came to an end in August, collections in rated Indian ABS improved markedly in September and October, although they remain below pre-coronavirus levels,” says Dipanshu Rustagi, Moody’s Assistant Vice President. Indian asset-backed securities loan collection rates for our rated deals have improved since the end of coronavirus-related payment moratoriums, which shows that many borrowers have resumed repayments after lenders' grace periods finished. - economic times
🍒 Gradual phase-out of moratorium mitigates asset quality cliff for Indian banks: Moody’s : The gradual tapering of coronavirus relief measures will help prevent a spike in nonperforming loans for Indian banks, as the country faces an uneven recovery ahead, Moody’s Investor Service said on Thursday. "The gradual tapering of support measures will give borrowers time to adjust and enable banks to build loan-loss buffers, in turn reducing the risk of a sharp decline in banks' asset quality," said Rebaca Tan, Moody's Assistant Vice President. "Still, risks remain amid a likely uneven recovery in 2021 that remains vulnerable to setbacks, including any new wave of coronavirus infections," Tan added. - economic times
🍒 New dividend policy not to affect most NBFCs: Report : The new dividend distribution policy for non-banking lenders is unlikely to impact most of them as their payout ratios have been hovering at 10-20 for the past three years, according to a report. The Reserve Bank of India on December 9 issued a new draft dividend distribution policy for NBFCs to ensure financial discipline and transparency under which only those NBFCs that meet the prescribed prudential requirements on capital and asset quality will be allowed to pay dividends. The new payout norms assume importance as unlike banks, currently, there are no guidelines in place concerning the distribution of dividend by NBFCs. The RBI had on October 4 asked banks to not to pay dividend this year given their stretched balance sheets pummelled by the pandemic.- economic times
🍒 Muthoot Finance to raise ₹1,000 crore through NCDs : Muthoot Finance Ltd has announced its 24th series of public Issue of Secured Redeemable Non-Convertible Debentures of face value of ₹1,000 each (secured NCDs). The issue is with a base issue size of ₹100 crore, with an option to retain oversubscription of up to ₹900 crore aggregating up to tranche limit of ₹1,000 crore (issue). The issue opens on December 11 and closes on January 5, 2021, with an option to close on such earlier date or extended date as may be decided by the board of directors or NCD committee. - Business Line
🍒 Pull payments made on behalf of merchants: Acquirer banks should not push consumers to pay for services : The Reserve Bank of India (RBI) needs to move towards creating an environment whereby for pull payments effected on behalf of merchants, the acquirer banks/Payment Aggregators (PAs) are not allowed to push consumers to pay for a payment service, according to a study by an IIT Professor. Pull payments entail a recipient (for example a merchant) requesting payment. Ashish Das, Professor, Department of Mathematics, IIT-Bombay, in his study, ‘Charging Consumers for Merchant Payments’, emphasised that consumers have a relationship only with the core merchant and the issuer bank (that issues cards).The Reserve Bank of India (RBI) needs to move towards creating an environment whereby for pull payments effected on behalf of merchants, the acquirer banks/Payment Aggregators (PAs) are not allowed to push consumers to pay for a payment service, according to a study by an IIT Professor. Pull payments entail a recipient (for example a merchant) requesting payment. Ashish Das, Professor, Department of Mathematics, IIT-Bombay, in his study, ‘Charging Consumers for Merchant Payments’, emphasised that consumers have a relationship only with the core merchant and the issuer bank (that issues cards). - Business Line
🍒 Restricting foreign capital in banking sector a mistake: Abhijit Banerjee : Nobel laureate Abhijit Banerjee has said that restricting capital infusion in the banking sector to Indian capitalists is a mistake. “It is a wrong view that Indian capitalists are somehow better than foreign capitalists,” he said. “Foreign banks can bring in capital. Involving foreign banks in the Indian banking sector but restricting it to Indian ownership is bad,” he said.Stating that the Indian banking sector is in a ‘zombie’ state, he said, banks are half-dead with so much bad debt. “If the books are carefully examined they are not in good health and they are in red,” Banerjee said. “They are not lending as they don’t have capital. This capital can come from the foreign investors in the banking sector,” he said. - Business Line
🍒 Banks have been lending more to NBFCs: CARE Ratings : Banks have been lending more to non-banking financial companies (NBFCs), increasing their overall exposure to them, according to CARE Ratings. This comes in the backdrop of decline in both the total monthly funds raised by NBFCs from the primary market and the external commercial borrowings (ECBs) registrations in financial services. The credit rating agency assessed that banks’ outstanding exposure to NBFCs registered a growth of 42.5 per cent in absolute terms from September 2018 (₹5.5 lakh crore) to October 2020 (₹7.8 lakh crore). - Business Line
🍒 Equitas Small Finance Bank launches 3-in-1 account : Equitas Small Finance Bank, on Thursday, announced that it has launched a 3-in-1 account, which includes savings, trading and demat, to widen its product offerings and allows its customers to keep their banking and financial investments under one umbrella entity. The bank will provide stock broking and demat services through referral arrangement with brokerage firms for trading and depository services. “This product allows customers a secure seamless and convenient way to invest in their choice of investment instruments including equity, FDs, govt securities and mutual fund products. Customers can transfer money seamlessly between their bank account when they have a 3-in-1 account with us,” said Murali Vaidyanathan, President & Country Head- Branch Banking, Liabilities, Product & Wealth, Equitas Small Finance Bank in a press statement. - Business Line
🍒 First-year premium for life insurers down 27% in November : First-year premium for life insurance companies declined in November by almost 27 per cent after months of positive growth, with both private sector insurers and Life Insurance Corporation (LIC) of India registering a contraction in premiums. Data released by IRDAI revealed that first-year premium for life insurers in November fell by 26.93 per cent to ₹19,159.30 crore from ₹26,221.24 crore in November 2019. First-year premium for the period between April and November also contracted by 1.53 per cent to ₹1,66,662.97 crore as against ₹1,69,251.20 crore in the same period a year ago. - Business Line
🍒 PhonePe plans to fill 700 open job positions in 3-6 months : Online payment company PhonePe is planning to fill in 700 open job positions in the next 3-6 months in line with its business growth led by the accelerated adoption of digital payments across the country post the Covid 19 pandemic. “We have over 700 open positions which we aim to fill…we are hiring across functions in line with our business strategy and needs,” said Manmeet Sandhu, Chief People Officer, PhonePe. “In addition to this, we will be looking to expand our rural network which will involve leveraging locally available talent to service this network,” she added. “We are still in the process of closing out the numbers for next year, but our growth trajectory will likely continue at the same rate," she said in an interaction with ET. - economic times
🍒 IL&FS puts corporate loans worth Rs 5,000 crore on the block : IL&FS financial services arm IFIN has put NPA accounts of Essar Shipping, Reliance Naval & Engineering, Unitech, Parsvnath Developers, Ansal API among others on the block. Corporate loans of 70 companies worth Rs 5,000 crore have put been on the block and will be put through a bid process. The deal will be on cash consideration basis with the beleaguered group seeking one consolidated bid for the entire portfolio. Applicants have to submit binding bids by next month. IFIN is owed a principal amount of Rs 209 crores from Unitech Limited, Rs 174 crore from Parsvnath Developers, Rs 135 crore from Ansal Group, Rs 25 crore from Essar Shipping and Rs 5 crore from Reliance Naval. - economic times
🍒 India’s CPI to decelerate marginally to 7.3%: Morgan Stanley : India could see some easing pressure on inflation in November as compared to October as the country’s consumer price index or CPI could decelerate marginally, a Morgan Stanley research has said. We expect headline CPI to decelerate marginally to 7.3% year on year in November from 7.6% year on year in October. “High-frequency food prices suggest food inflation likely softened sequentially in the month, while we expect core inflation to remain largely steady,” the research said. In addition, favourable base effects should also support the moderation, the report added. - economic times
🍒 Nippon MF launches passive Flexicap FoF : Nippon Life India Asset Management has launched Passive Flexicap Fund of Fund, an open-ended fund of funds (FoF) scheme that will invest in units of ETFs/Index Funds of Nippon India Mutual Fund. The fund will be benchmarked to the Nifty 500 TRI. The new fund offering (NFO) will close on December 24. The minimum investment required is ₹5,000. Different parts of the market ― large-cap, mid-cap and small-cap ― perform at various points in time. It is difficult to predict which part of the markets would outperform. Hence, staying invested across market-caps may help generate potentially better returns over the long run. - Business Line
🍒 Central bank's proposals on dividend payouts weigh on state-owned NBFCs : Shares of state-owned REC, Power Finance Corporation (PFC), LIC Housing Finance, and M&M Financial Services (MMFS) fell around three per cent each on Thursday after the Reserve Bank of India (RBI) proposed to cap dividend payouts by non-banking financial companies (NBFCs). Under the new rules, the dividend payouts will be dependent upon factors such as capital adequacy, non-performing asset (NPA) ratio and leverage ratio from the next financial year. “Among the listed NBFCs, we expect PFC and REC to react negatively to the new rules as both the entities have a historic dividend payout of 45 per cent. As per new norms, they will be eligible for a 25 per cent dividend payout. Being high-dividend-yielding NBFCs had been one of the arguments in favour of these entities, which will be negatively affected by the new RBI rules,” said Emkay analysts Jignesh Shial, Anand Dama and Parth Sanghvi in a note. - Business Standard
🍒 ATM moment of banking services is here as lenders make apps open for all : Long after automated teller machines (ATM) were made interoperable for bank customers, the whole gamut of banking is becoming membership agnostic. Earlier this week, ICICI Bank created some buzz by announcing its banking app — iMobile Pay — would be free for all to use. A customer need not be with the bank but can link her bank account with a Unified Payments Interface (UPI) ID with ICICI Bank and start using it for all kinds of payments across all platforms. Much like how Google Pay is being used for paying bills and purchases through UPI. iMobile Pay can also be used to get credit cards, instant loans, and, if needed, a savings bank account with the ICICI Bank. In the coming days, the bank plans to introduce products such as fixed deposits, recurring deposits, mutual funds and insurances through the app. . - Business Standard
🍒 Late Payments: Banks blame fintechs for EMI bounces : Bankers have attributed the high bounce rates, in large part, to defaults at fintech lenders, whose collections are still below pre-Covid levels. Most banks claim their collection efficiencies stood well over 90% in the September quarter. The share of unsuccessful auto debit requests at 40.5% in November was a shade higher than the 40.1% seen in October, according to data released by the National Payments Corporation of India (NPCI) from its National Automated Clearing House (NACH) platform. o be sure, the data doesn’t account for EMI requests made to deposit accounts held within the same bank. Nonetheless, bounce rates of anything above 25% should continue to be a cause for concern as it would mean retail delinquencies remain well above pre-Covid levels. Of the 86.96 million debit requests for Rs 78,433 crore worth of payments made in November, 35.22 million requests for Rs 24,417 crore were declined. In other words, the bounce rate in value terms at 31.13% was a tad better than 32.27% a month ago. - financial express
🍒 Gold prices slide to Rs 49,191 per 10 gram on increased risk appetite : Gold prices dropped by 498 to Rs 49,191 per 10 gram in the Mumbai retail market on increasing risk appetite amid COVID-19 vaccine optimism. The precious metal traded under pressure as negotiations over further US fiscal stimulus dragged on and the dollar rose for a fourth straight session. The rate of 10 gram 22-carat gold in Mumbai was Rs 45,059 plus 3 percent GST, while 24-carat 10 gram was Rs 49,191 plus GST. The 18-carat gold quoted at Rs 36,893 plus GST in the retail market. Silver prices declined Rs 792 to Rs 62,600 per kg from its closing on December 9.
🍒 Sensex snaps 5-day winning run, ends 144 points lower : The 30-share BSE index settled 143.62 points or 0.31 per cent lower at 45,959.88. The broader NSE Nifty fell 50.80 points or 0.38 per cent to 13,478.30. UltraTech Cement was the top loser in the Sensex pack, shedding around 3 per cent, followed by M&M, HDFC Bank, IndusInd Bank, Axis Bank and Reliance Industries. On the other hand, Nestle India, ITC, HUL and Kotak Bank were among the gainers.According to traders, profit-booking emerged at higher levels, dragging benchmark indices lower.UltraTech Cement was the top loser in the Sensex pack, shedding around 3 per cent, followed by M&M, HDFC Bank, IndusInd Bank, Axis Bank and Reliance Industries.On the other hand, Nestle India, ITC, HUL and Kotak Bank were among the gainers. According to traders, profit-booking emerged at higher levels, dragging benchmark indices lower.
🍒 Rupee settles 9 paise lower at 73.66 against US dollar : The rupee snapped its two-day winning streak to close 9 paise lower at 73.66 (provisional) against the US dollar on Thursday, tracking muted domestic equities and a rebound in the American currency. At the interbank forex market, the domestic unit opened at 73.68 against the US dollar and witnessed an intra-day high of 73.62 and a low of 73.77. The local unit finally closed at 73.66 against the American currency, registering a fall of 9 paise over its previous close..
No comments:
Post a Comment