🍒 Bad debt fear keeps private banks away from street vendor loans : Last week, a branch manager of a leading state-run bank in Madhya Pradesh wrote to the municipal commissioner seeking “cooperation” as several of the 160 street vendors, who were given loans under the PM SVANidhi scheme, had not paid a single instalment, turning them into non-performing assets (NPAs). While executives in the branch described it as routine communication, several bankers point to it to argue that their worst fears are coming true at a time when several state government officers are pushing for rapid disbursement of loans. Although banks have been reluctant to push the Rs 10,000-loan to street vendors, the finance ministry, which controls the fate of state-run bank chiefs, has got them to dole out loans. Not surprisingly, public sector players have disbursed 92% of the loans so far with private banks being less obliging. - economic times
🍒 Bounce rate of auto debit transactions remains high amid lenders’ claims of improved collection efficiencies : Is there rising financial stress amongst small and retail borrowers after the end of the loan moratorium, despite banks and NBFCs reporting collection efficiencies at about 90 per cent of pre-Covid levels? Anecdotal evidence as well as a quick search of social media indicate that many borrowers indeed continue to face headwinds due to job losses and salary cuts amid the ongoing Covid-led economic uncertainty. This also seems to be corroborated by data from the National Payments Corporation of India from its National Automated Clearing House (NACH) platform, which reflects the elevated number of unsuccessful auto debit requests. The bounce rate of auto debit transactions has been hovering over 40 per cent since June as against 31 per cent at the start of 2020 before the pandemic. In November, of the 8.69 crore auto debit transactions recorded on the NACH platform, 3.52 crore were unsuccessful. In comparison, just 2.4 crore transactions out of 7.77 crore requests were returned in January. - Business Line
🍒 SEBI names Krishnamurthy as ‘observer’ for Franklin e-voting : Market regulator SEBI on Saturday announced the appointment of TS Krishnamurthy as the observer for ‘e-voting’ on winding-up of six debt schemes of Franklin Templeton Mutual Fund (FTMF). SEBI’s announcement came several hours after the e-voting had commenced on Saturday morning. On December 9, the Supreme Court had directed SEBI to appoint an observer.
Krishnamurthy, age 76, is the former chief election commissioner of India and the ex-chairman of share depository company CDSL where he worked till 2019. SEBI said it had appointed the observer on December 18. But the announcement was made on Saturday after the Chennai Financial Markets and Accountability (CFMA), an investor lobby group, approached the Supreme Court seeking clarity over the observer. - Business Line
🍒 Dhanlaxmi Bank may appoint former SBI official J K Shivan as its MD & CEO : Dhanlaxmi Bank Limited is planning to appoint J K Shivan as the Managing Director & CEO of the Bank. Shareholders of Kerala-based Dhanlaxmi Bank had voted against former managing director and CEO Sunil Gurbaxani on September 30. He, however, alleged that directors put pressure on him to quit after he raised various governance issues. The Board of Directors of the bank recommended a panel of candidates to Reserve Bank of India for appointment as Managing Director & CEO. One of the candidates recommended by the Board was Shivan. The banking regulator has directed the Bank to submit a proposal before it after the appointment of Shivan is approved by the shareholders. Therefore, the Board of Directors have placed the proposal for the consent of the shareholders authorising the bank to appoint Shivan as Managing Director & CEO. Shivan has over 37 years of experience in SBI. - Business Standard
🍒 Gold prices fell 0.46% this week to Rs 50,064/10 gm, bias remains bullish for short term : Gold prices declined to settle at Rs 50,064 per 10 gram on December 24 as participants trimmed their position as seen by the open interest. The precious metal ended the week with a loss of Rs 231 or 0.46 percent. The yellow metal traded in the positive territory for two out of four sessions in a holiday-shortened week as markets were shut on Friday for Christmas and thin volume, but manage to close above the key psychological barrier of Rs 50,000/10 grams for second successive weeks tracking the general weakness in dollar and EU and the UK clinched a narrow Brexit deal. In the retail market, the bullion metal closed at Rs 49,995 per gram on Thursday up 0.29 percent on a weaker dollar and subdued global cues..
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