🍒 Rolling back of Covid related policy relaxation could impact banks: RBI : The performance of Indian banking improved in the fiscal year 2020 when they reported a profit on an aggregate basis after two years of losses, the RBI said in its yearly assessment report. It said the banking system's bad loans fell and the capital buffer improved, but they need to be vigilant about competition from nimbler tech rivals. The RBI also expressed concern over rolling back policy support given to the bank’s to deal with the Covid-19 pandemic in the last 8 months. “In 2020-21, as policy support is rolled back, the impact of the COVID-19 pandemic may dent the health of the banks and non-banks,” the regulator said as part of its report on trends and progress of banking. The RBI also said that the turnaround of the banking system depended on the pace of economy returning to growth path. “Improvement in the health of the banking sector henceforth hinges around the pace and shape of economic recovery,” it said. “The challenge is to rewind various relaxations in a timely manner, reining in loan impairment and adequate capital infusion for a healthy banking sector.” - economic times
🍒 Former Economic Affair Secretary Atanu Chakraborty likely to be next HDFC Bank chairperson : India’s largest private sector lender HDFC Bank is set to appoint former economic affairs secretary Atanu Chakraborty, as the next part-time chairman of the bank, two people aware of the development said. The request was submitted to the Reserve Bank of India by the HDFC Bank board on December 28, one of the persons cited above said. “The HDFC bank board submitted Chakraborty's name for the position to the RBI on December 28 for approval,” a source in the know said. The tenure of current part-time Chairman Shyamala Gopinath will end on January 1, 2021. Gopinath, former deputy governor of the Reserve Bank of India, has been serving in the position since January 2, 2015. HDFC Bank did not comment while Atanu Chakraborty could not be immediately reached for comment. - economic times
🍒 Loan restructuring requests much lower than estimated: Analysts : With the loan restructuring window coming to a close, analysts are cutting the estimates on loan recast by banks to 2.5-4.5% of their total advances from the previously projected 6-8%. Analysts are also forecasting lower credit provisions and better profitability for banks in the next fiscal year starting April 1, on the back of improved asset quality with a quick economic turnaround. Owing to an ongoing case in the Supreme Court over loan moratorium, loan restructuring requests have been much lower than previously estimated. A sharper-than-expected improvement in economic activities as well as liquidity support through the emergency credit line guarantee scheme have also helped. Ratings firm ICRA has cut its loan restructuring estimate to 2.5-4.5% of total advances as against 5-8% estimated earlier. - economic times
🍒 ICICI Bank to acquire 9.09% stake in Myclassboard Educational Solutions : Private sector lender ICICI Bank on Tuesday said it will acquire 9.09 per cent stake in online school management platform Myclassboard Educational Solutions. The acquisition will be done through a cash consideration of ₹4.5 crore. “ICICI Bank has entered into an agreement dated December 28, 2020, in relation to an investment in Myclassboard Educational Solutions Private Limited (MESPL),”the lender said in a regulatory filing. The acquisition is expected to be completed by end of February 2021. “Post investment, ICICI Bank will hold 9.09 per cent stake in MESPL through acquisition of 100 equity shares and 1,04,890 Cumulative Compulsorily Convertible Preference Shares on fully diluted basis,” the bank said, adding that since the acquisition of shareholding is below 10 per cent, regulatory approval is not required. MESPL is an educational technology company set up in December 2009. - Business Line
🍒 CCI dismisses unfair practices complaint against 4 credit rating agencies : The Competition Commission of India (CCI) on Tuesday dismissed a complaint alleging that CRISIL Ltd, India Ratings and Research Pvt Ltd, CARE Ratings Ltd and ICRA Ltd indulged in unfair business practices. The ruling came on a complaint filed by Brickwork Ratings India Pvt Ltd. The informant, Brickwork Ratings, alleged that the opposite parties -- CRISIL, India Ratings and Research, CARE Ratings and ICRA -- contravened the provisions of the Competition Act by means of collusive bidding and bid rigging, and also indulged in below cost predatory pricing. Brickwork Ratings averred that the credit rating agencies are involved in anti-competitive practices in contravention of the provisions of the Competition Act which is causing an appreciable adverse effect on the competition in India as well as on the Indian economy, CCI said in an order. Brickwork Ratings asked the the Commission to order "investigation into formation of cartel and collusive bidding by the opposite parties in the tender processes of various PSUs for the period 2009 till date." - Business Standard
🍒 Dhanlaxmi Bank proposes to appoint Shivan JK as new CEO, seeks shareholders' nod : Debt-ridden Dhanlaxmi Bank has proposed Shivan JK as its new Managing Director and Chief Executive Officer (CEO) and has sought shareholders' approval for the same. Shivan retired as Chief General Manager of State Bank of India and handled various roles, including forex operations. It has soug ht the approval from its shareholders to authorise the board to appoint Shivan as MD and CEO of the bank, Dhanlaxmi Bank said in a notice of postal ballot. The development came a day after the Reserve Bank of India (RBI) appointed its General Manager D K Kashyap on the bank's board for two years. - Live Mint
🍒 Banks' gross bad loans ratio fell to 7.5% at Sept-end: RBI : The Reserve Bank of India (RBI) today released a report on the performance of the banking sector during 2019-20 and 2020-21, so far. The report, Trend and Progress of Banking in India 2019-20, is based on the impact of Covid-19 on banking and non-banking sectors and the way forward. During 2019-20 and first half of 2020-21, scheduled commercial banks (SCBs) consolidated the gains achieved after the turnaround in 2018-19. The gross non-performing assets (GNPAs) ratio of scheduled commercial banks declined from 9.1% at end-March 2019 to 8.2% at end-March 2020 and further to 7.5% at end-September, the Reserve Bank of India (RBI) said on Tuesday. - Live Mint
🍒 RBI says 37.91% of loans were under moratorium as of August-end : Loans under moratorium have not significantly declined since April 2020, when 50% of outstanding loans were under moratorium according to Reserve Bank of India (RBI) data. In a response to a Right to Information (RTI) query filed by FE, the RBI has said 37.91% of outstanding loans in the banking system were under moratorium as on August 31, 2020. According to provisional data provided by the regulator, 41.33% of loans in public sector banks (PSBs) were under moratorium till August this year. Similarly, loans under moratorium in private banks remained at 33.96% and the same was 20.93% for foreign banks. Data shared by the RBI show that 12.09% fewer borrowers (by value) were granted moratorium in the second phase, compared to the first phase. In its financial stability report released in July, the RBI said 50% of total outstanding in the banking system was under moratorium as on April 30, 2020. The regulator had earlier allowed customers to avail a repayment break for six months – between March and August. The moratorium was granted in two phases of three months each starting March 1. - financial express
🍒 Banks need to gear up to meet new challenges following unwinding of measures to combat COVID: RBI : Cautioning of imminent stress in the banking sector after unwinding of the measures taken to combat the impact of COVID-19, the Reserve Bank on Tuesday said banks will need to adapt and adjust themselves to meet the upcoming challenges. The Reserve Bank of India (RBI), in its report on ‘Trend and Progress of Banking in India 2019-20’, said that the central bank initiated timely measures to relieve stress on bank balance sheets, corporates and households following the outbreak of the coronavirus pandemic. Observing that banking soundness indicators are obscured under the asset quality standstill, it said, banks are raising capital in preparation of the imminent stress. “With the moratorium coming to an end, the deadline for restructuring proposals is fast approaching and with the possible lifting of the asset quality standstill, banks’ financials are likely to be impacted in terms of asset quality and future income. “Going forward, banks will have to adapt and adjust to the rapidly evolving economic landscape due to these challenges and also the entry of niche players and emerging financial technologies,” the report said. - financial express
🍒 NHB slaps Rs 47,000 fine on GIC Housing Finance : Housing finance regulator National Housing Bank (NHB) has imposed a fine of Rs 47,000 on GIC Housing Finance for violation of the guidelines. The fine was imposed by NHB on Monday, the company said in a regulatory filing on Tuesday. “Based on the examination of the issue, including the submission made by the company in the matter, the National Housing Bank has decided to levy a penalty of Rs 47,000 for delayed and non-submission of returns,” it said. The company has been directed to pay the fine along with applicable GST of 18 per cent within 10 days from the date of receipt of the letter dated December 28, 2020. - financial express
🍒 NBFCs profitability may dampen due to loan impairment, lower credit demand: RBI report : The profitability of non-banking finance companies (NBFCs) may be ‘dampened’ going ahead due to the loan impairment and lower credit demand, the Reserve Bank of India (RBI) said in its Report on Trend and Progress of Banking in India 2019-20. “Going forward, profitability of NBFCs may be dampened due to loan impairment, lower credit demand and a tendency to preserve cash,” the RBI report released on Tuesday said. Due to loan moratorium and asset classification standstill, asset quality shored up. However, many NBFCs have made additional provisioning as per expected credit loss (ECL) norm; and bolstered their capital position by ploughing back dividends, it said. In order to mitigate the impact of COVID-19, the RBI allowed lending institutions to grant a moratorium on payment of instalments of term loans due between March 1, 2020, and May 31, 2020, which was later extended till August 31, 2020. - financial express
🍒 Cashaa to launch crypto bank : Cashaa, a blockchain-based fintech, has joined hands with United Multistate Cooperative Society, a credit cooperative society, to launch crypto bank joint venture UNICAS that allows users to transact in cryptocurrency and fiat from one account. While the online services of UNICAS has already gone live, as many as 14 physical branches will be rolled out by January 2021 across the NCR, Rajasthan and Gujarat. UNICAS plans to rapidly expand to 100 branches by the end of 2022. “This will allow us to build, scale and offer customised financial and crypto products for the Indian market,” said Dinesh Kukreja, CEO of UNICAS, in a statement. - Business Line
🍒 Standard norms for travel insurance mooted : Regulator IRDAI on Monday proposed standard guidelines for travel insurance with a view to ensuring uniformity and certainty about coverage, exclusions and terms of coverage for domestic as well as international travel. The exposure draft, on which the IRDAI has invited comments from the stakeholders by January 6, 2021, includes standard terms and conditions, customer information sheet and use and file format. The draft details out the coverage and exclusions under domestic and overseas travel insurance. The insurance company will pay as compensation to the legal heirs/nominee the amount stated as sum insured if the insured suffers accidental bodily injury while overseas and this is the sole and direct cause of his Death within the period of 365 days, it said. - Business Line
🍒 ANZ India Business Chamber signs MoU with Spring Up Capital to help start-ups : Chennai-headquartered ANZ India Business Chamber (ANZIBC), a non-profit organisation primarily focusing on promoting Indo-Australian trade, on Tuesday, said that it had signed an MoU with the Pune-based start-up accelerator Spring Up Capital to facilitate investments and business for their members to grow in the international market. In a statement, ANZIBC said that the chamber is also working with several Australian brands to expand in the Indian market, particularly from the education, franchising, health supplements, cleaning products and renewal energy. - Business Line
🍒 Covid-19: Over 40% of borrowers availed loan moratorium benefit : Customers accounting for 40.43 per cent of outstanding loans in the financial system availed the benefit of moratorium allowed by the Reserve Bank of India (RBI) for borrowers affected by the COVID-19 pandemic as on August 31, 2020. As per “Report on Trend and Progress of Banking in India 2019-20,” most sectors reported lower outstanding loans under moratorium in August 2020 compared to April 2020. However, Micro, Small and Medium Enterprises (MSMEs) registered a marginal increase. The number of MSMEs customers availing moratorium increased to 78 per cent in August 2020, reflecting sector’s stress. - Business Line
🍒 About 4.37 crore ITRs for FY'20 filed till December 28 : Around 4.37 crore income tax returns for fiscal 2019-20 (Assessment Year 2020-21) have been filed till December 28, the I-T department said on Tuesday. With just three days left for the deadline for income tax return (ITR) filing for individuals to end, the tax department asked taxpayers not to wait and file returns early. "Over 4.37 crore Income Tax Returns for AY 2020-21 have already been filed till 28th of December, 2020. Hope you have filed yours too! If not filed as yet, don''t wait. File your #ITR for AY 2020-21 TODAY!,” the Income Tax department tweeted. This includes over 2.44 crore taxpayers filing ITR-1, over 95.64 lakh filing ITR-4, over 53.12 lakh ITR-3 and over 32.30 lakh filing ITR-2. The deadline to file I-T returns by individual taxpayers for 2019-20 fiscal (Assessment Year 2020-21) ends on December 31, 2020, while the same for taxpayers whose accounts require to be audited is January 31, 2021. - moneycontrol.
🍒 Gold prices today struggle for 6th day, down ₹6000 from record highs : Gold prices in India traded in a narrow range for the sixth day in a row amid mixed global cues. On MCX, February gold futures were up 0.11% to ₹50,067 per 10 gram. In the previous five sessions, gold had remained in the ₹50,000 to ₹50,500 range. Silver today on MCX edged down 0.24% to ₹68,650 per kg. In global markets, gold rates were slightly higher today after US President Donald Trump's approved a stimulus package.
🍒 Nifty moves past 13,950; Sensex 47,500 : After opening at 47,466.42, the BSE Sensex hit a peak of 47,639.92 almost immediately and is currently hovering (9:30 am) around 47,635.78, a gain of 282 points over the previous day's close. Similarly, the Nifty50 index has crossed the 13,900-mark seamlessly and hit a high of 13.957.30. The broader index is currently ruling with a gain of 0.55 per cent or 76 points at 13,949.20. Except PoweGrid, Nestle India and L&T, all other BSE Sensex stocks are ruling in the green with IndusInd Bank (3.36 per cent), HCL Technologies (1.66 per cent) and Axis Bank 1.27 per cent.
🍒 Rupee ends 6 paise higher at 73.49 against US dollar : The rupee appreciated by 6 paise to close at 73.49 (provisional) against the US dollar on Monday, tracking weakness in the American currency and positive domestic equities. The sustained foreign fund inflows also supported the rupee, traders said. At the interbank forex market, the domestic unit opened at 73.52 against the US dollar and witnessed an intra-day high of 73.47 and a low of 73.61. The local unit finally settled at 73.49 against the American currency, registering a rise of 6 paise over its previous close..
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