Shritama Bose

Articles By Shritama Bose

470 Articles

Banks move branches, rethink strategy to cut costs amid Covid spread

In order to mitigate this particular challenge, banks will also have to adopt a stringent set of norms, Moody’s said.

The average banking customer, too, is now averse to making any physical contact with her bank.

Covid could make microfinance repayments contactless: R Baskar Babu, MD and CEO, Suryoday Small Finance Bank

However, we are not really pushing the customer to repay and the focus is on letting them take their time, but being in touch with the customer.

The impact of demonetisation on the microfinance industry was near-100% disbursements through bank accounts.

Q4FY20: Restructuring of MSMEs benefits PSB bottomlines

With increasing talk of RBI coming up with a one-time restructuring scheme for stressed accounts, analysts wonder whether regulatory forbearance is coming back.

NPA crisis: When it comes to loan losses, PSBs are far ahead of private banks – Check numbers

The 12 PSBs together saw a 5% sequential decline in their gross NPAs, while the private pack’s NPA pile fell 6% from the end of the December quarter.

Almost all PSBs saw a decline in absolute GNPA numbers, with the exception of Indian Bank and Canara Bank.

SBI seeks external consultants for risk management division

The empanelled consultancy firms will be engaged on a time & material (T&M) basis for deployment at bank departments.

SBI expects that consultants will be able to offer advice on how to deal with such situations as also insights into the strategies adopted by other companies in similar situations.

We plan to raise Rs 6,000-8,000 crore in FY21: Canara Bank MD, CEO LV Prabhakar

In terms of the number of borrowers, it is 19% and in terms of amount it is 17%. Initially, we had given it across the board, says Canara Bank MD, CEO LV Prabhakar.

n NPA accounts, too, we have made sufficient provisioning and in Q4, Rs 4,875 crore is our NPAs.

Cash starved Yes Bank taps PE funds; plans to raise Rs 15,000 crore as it hunts for capital

Indeed, some of these institutions have announced plans to beef up their own capital bases as the pandemic has intensified uncertainty about the economic outlook.

Financial institutions that had picked up stakes in Yes Bank in March to prevent the Yes Bank from collapsing and, thereby, causing a systemic crisis, are unlikely to bring in more capital in the next round of capital-raising.

Covid-19: With no sign of crisis abating, HDFC Bank looks to build war chest to fund growth

Of late, there has been greater acceptance of that event and the market now understands better the full extent of risk associated with AT1 bonds.

SBI discloses how much of its loan book was under moratorium as on March 31 – figures are big

The decline in SBI’s moratorium book is in line with the overall trend in the banking system of fewer borrowers extending their moratorium into the second phase.

This means that close to a quarter of SBI’s loan book came under moratorium in the very first month.

PSU banks’ entry will help broaden gold loan market: Muthoot Finance MD

A gold loan customer has to come to the branch once when they take the loan and again when they take back the gold.

During the lockdown branches were closed and people could not come to the branches.

RBI grossly underestimated ATM revamp costs, unpublished report shows

The report of the committee to review the ATM interchange fee structure, submitted on October 22, 2019, recommended that banks be allowed to charge customers for ATM withdrawals of over Rs 5,000.

Lenders ramp up digital collections during lockdown

Loan segments that have traditionally involved a high-touch model by their very nature, such as gold loans, are also feeling the need to have some collections coming in digitally.

Kotak Mahindra Bank saw digital payments in the credit cards segment increase to 98% from 92-93% before the lockdown.

RBI grossly underestimated ATM revamp cost; proposed banks can charge customers for withdrawals

The Reserve Bank of India (RBI) grossly underestimated costs for revamping the country’s ATM infrastructure, while drafting circulars for the same, shows a report unpublished by the central bank and obtained through a Right

One of these is with respect to the RBI circular dated April 12, 2018, which directed banks to use lockable cassettes in their ATMs which would be swapped at the time of cash replenishment.

Govt directs PSBs to bring down non-core expenditure by 20%

PSBs have been asked to cut spends on travel by adopting digital means of communication and making effective use of locally available administrative officers.

The order comes after the top management of a large PSB bought three high-end luxury cars in May, as per a report by the Press Trust of India.

Large PSBs ramp up lateral hiring in specialist positions on govt nudge

The government is understood to be of the view that some positions in PSBs which demand a specialist’s perspective should be filled as such.

The Reserve Bank of India (RBI), too, has sought to bring greater professionalism to functions like finance and risk management at banks.

PNB looking for chief risk officer on a contractual basis — Details

The announcement comes days after State Bank of India’s (SBI) decision to laterally hire a chief financial officer (CFO) who would be a certified chartered accountant, in line with regulatory guidelines.

PNB, Punjab National Bank, DHFL fraud

Buy now, pay later scheme for auto loans may be available only to the cash rich, here’s why

Lenders say the current high-risk environment necessitates tighter the underwriting standards. Ramesh Iyer, Vice Chairman and Managing Director, Mahindra Finance, told The Financial Express that the scheme being offered by th

Switching fee: Home loan borrowers at housing finance companies cry foul

While processing and switching fees have been considered a regular practice for years now, the new repo-linked pricing regime being followed by banks has brought the stark difference in rates into relief. Banks have already s

When moratorium ends: Lenders brace for surge in retail delinquencies

The impact of pay cuts and job losses, a disruption in collections and also the masking of high-risk borrowers by the moratorium could all come together to increase the stress in the retail segment, bankers and industry exper

The true picture of the quality of retail loans will only become clear at the end of the second phase of the moratorium, he added.

Digital Tax row: US probing ‘Google Tax’ by India

New Delhi says tax doesn't specifically target US firms, avers trade talks won’t be impacted

Another source said the USTR announcement is just a first step towards a probe and isn’t an intimation of tariffs or other punitive measures as yet.

Retail credit shrinks m-o-m for first time in two years

Traditionally, banks have never faced any significant stress in their retail portfolios, barring the agri segment, which sometimes threw up high slippages in adverse circumstances.

Outstanding retail loans, banking system, reserve Bank of India, rbi, retail credit

As Covid-19 hits consumption, credit card outstandings fall for 2 consecutive months

Some banks, such as Axis Bank and Kotak Mahindra Bank (KMB), have turned cautious on their unsecured retail portfolios, including credit cards, even cutting spending limits for some customers.

mistakes to avoid, credit cards, cash withdrawals, interest-free period, payment for credit card dues.

Uday Kotak to sell up to 56 million Kotak Mahindra Bank shares

The size of the deal is expected to range between Rs 6,804 crore and Rs 6,944 crore, and it will help comply with regulatory norms by bringing down the promoter stake in the bank to 26.1%.

Morgan Stanley in its report said that Kotak Mahindra Bank would have to undergo a CEO transition if the discussion paper is finalised in the current format.

Post-Covid retail loan losses may treble, hitting fintech lenders: CreditVidya

Much of the deterioration in loan quality is likely to be the result of loan stacking, or the practice of the same borrower having multiple outstanding loans from different lenders.

Loan losses could shoot up by as much as three times in the unsecured retail space, hitting new-age fintech lenders the most, credit-scoring firm CreditVidya said in a report.

Interest on deposits drops to 17-year low

Other banks offer higher interest rates — HDFC Bank pays 5.6% and both ICICI Bank and Bank of Baroda pay 5.55% for the same product.

That has left lenders with a large surplus of close to Rs 8 lakh crore which is being parked with Reserve Bank of India (RBI) for a return of just 3.35%.

E-commerce transactions grow up to 25% in second week of May

Harshil Mathur, CEO and co-founder, Razorpay, said with the situation starting to ease out in parts of the country, the payments firm has seen a spike in transactions in the last few days, particularly in e-commerce.

In May, some of those volumes have started to come back with the easing of restrictions.

Covid impact: Private banks set aside over 75% of operating profit as provisions in Q4

All of them provided aggressively in view of the Covid-19 outbreak and the repayment moratorium, which also requires pre-emptive provisioning. Some red-flagged risks that could arise out of the retail unsecured segment.

Top 10 private banks that have so far declared their results for the March quarter have set aside nearly 76% of their pre-provisioning operating profit as provisions during the quarter, showed data compiled by FE
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