Banking & Finance

SC refuses to entertain plea against writing down of AT-1 bonds by Yes Bank

We decline to entertain the petition under Article 32 of the Constitution since the petitioners are at liberty to adopt appropriate remedies available in law, including by virtue of a petition under A

AT-1 bonds are direct, unsecured and subordinated debt in the issuing bank and they rank below to the claims of all creditors and above to common equity with no fixed repayment date.

RBI to conduct first-ever OMO purchase of SDLs on October 22

The central bank had decided to conduct OMOs in SDLs as a "special case" during the current financial year with an aim to improve liquidity and facilitate efficient pricing.

Depending on market response, the size of the auctions may be enhanced in the subsequent auctions, it added.

Will Indian banks’ credit loss, NPAs surge as new accounting standard sneaks around the corner?

With even their most reliable borrowers succumbing to the economic devastation of COVID-19, financial institutions need to heighten diligence to protect themselves against the risks of bad loans and N

dilgence, financial institutions, accounting standards, ECL, IND AS 109

Fund diversion: Sambandh defaults; internal fraud, says CFO

The letter dated October 7, also alleges fund diversion by Kindo to other entities named Diya Dairy & Agroprocessors, Kshamta Foundation, Regional Rural Development Centre, DK Enterprises and Utkal Da

The rating report by Brickwork Ratings stated that in a telephonic discussion with the rating agency, the CFO of Sambandh conceded there had been some internal frauds unearthed at the end of September 2020, wherein a large quantum of bogus loan entries were made in the book of accounts of the company.

Lakshmi Vilas Bank board okays Rs 500-crore rights issue

The lender is being run by a three-member committee of directors (CoD) after shareholders rejected the reappointment of seven directors, including that of the MD & CEO S Sundar, at the recent annual g

The bank had said on September 15 the mutual due diligence with Clix Capital was substantially complete and that the parties were in discussions on the next steps.

South Indian Bank Q2 profit falls 23% at Rs 65 crore

Gross NPA of the bank stands at 4.87% as against 4.92% last year and net NPA improved to 2.59% as against 3.48% in the year-ago period.

Operating profit for the second quarter has grown from Rs 411.45 crore to Rs 413.97 crore.

Hopeful of achieving 5-6% credit growth in FY21: Manas Ranjan Biswal, Executive Director, Union Bank of India

The recently announced TLTRO of Rs 1 lakh crore is yet another step by the RBI to channelise liquidity towards specific sectors.

With high frequency economic indicators showing positive trends, Union Bank of India (UBI) is hopeful of registering 5-6 % growth in credit during the current fiscal.

Banks need artificial intelligence for corporate lending: CEA Krishnamurthy Subramanian

The CEA said lending to MSMEs (Micro, Small and Medium Enterprises) in the country has remained stagnant for the last 15 years indicating that banks have not developed models to actively lend to the s

No recast for accounts that cured 30-day default after March 1: RBI

Loans against property (LAPs), availed for business purposes but are secured by immovable assets, will not be treated as individual loans and they will be eligible for resolution under Part B of the f

In case credit opinion is obtained from more than one CRA, all such opinions must be RP4 or better, the central bank said.

Disbursed Rs 5,500-crore retail credit via YONO in Sept quarter: SBI chief

The Chennai-based private sector bank was jolted on September 25 when its shareholders voted out seven directors on its board, including chief executive officer S Sundar and promoters KR Pradeep and N

Following this, the Reserve Bank of India (RBI) appointed a three-member team to run the bank under Meeta Makhan as chairperson and Shakti Sinha and Satish Kumar Kalra as members.

Will exceed guidance of 15% growth in FY21: Muthoot Finance

Regarding the new policy on on-tap targeted long-term repo operations (TLTRO), Muthoot said the cost of borrowing could come down for the NBFCs and benefits could be passed down to customers in the fo

Muthoot Finance managing director George Alexander Muthoot told FE that business had achieved the pre-Covid level.

Bank credit grows 5.7% in June quarter: RBI data

Credit to the household sector increased by 9 per cent and its share in total credit rose to 50.2 per cent from 48.7 per cent a year ago.

Reserve Bank of India, RBI, RBI data

‘UPI transactions help save 0.10 per cent of GDP’

The uptick in transactions, which touched 1.8 billion in September, has also helped the economy from an "enablement" perspective, Arvind Gupta, a professor of digital economy who spearheaded BJP's nat

The comments come amid a 10 per cent surge in UPI transactions by quantum of money transacted to Rs 3.29 lakh crore in September as against August this year, as more people switch to digital payments amid the pandemic.

Loan moratorium: Implement interest waiver as soon as possible, says SC

The apex court sought know from the Centre as to whether the benefit of loan interest waiver for borrowers of up to Rs 2 crore during the moratorium period has percolated to the common man.

The top court, which posted the matter for hearing on November 2, told the advocates appearing for the Centre and banks that Diwali is in your hand.

RBI says farm loans excluded from resolution framework; lists out loan categories eligible for scheme

The loans given to farmer households would be eligible for resolution if they do not meet any other conditions for exclusions listed in the resolution framework.

farm jobs, rural jobs, kharif harvesting, MGNREGS

Only standard loan accounts as of March 1 can be recast under pandemic scheme: RBI

In clarifications issued late last night to borrowers as well as lenders about the August 6 circular, RBI said a loan account that was due for more than 30 days as on March 1, 2020, but subsequently g

Bank of Baroda mulling to move 50% of staff into WFH in 4-5 years

“This also gives an opportunity to access talent which was not possible previously. Since you allow people to work remotely or some work can be done remotely, you can actually access top-class talen

Chadha said that organisations are changing in terms how they view work and employees now prefer different models of work at different stages of their career.

JPMorgan, Citigroup profits improve amid signs of recovery

Many economic indicators have markedly improved since the pandemic shutdowns of April and May.

Citi Group, JPMorgan Chase, US Economy, coronavirus

Bank NPAs may rise to double digits this year; these factors likely to weigh on bad loans

India’s NPA ratio is one of the highest among comparable countries and further, it is expected to reach 11-11.5% by the end of the current fiscal year 2020-21.

bank npa, bad loans, stressed assets, GNPA, banking industry, RBI, Shaktikanta Das

Depositors start spending ahead of festive season; banks’ liquidity surplus hit by these factors

The central government borrowings of Rs 60,000 crores and state government borrowings of Rs 23,728 crores, along with statutory dues (TDS payments) limited the banking system liquidity surplus during

bank deposits, bank credit, liquidity surplus, NBFCs, industries

Co-origination game-changer for NBFCs, HFCs: ShriramCity

Shriram City Union Finance (ShriramCity) has said the Reserve Bank of India (RBI)’s renewed thrust on co-origination of loans can be a game-changer for both non-banking financial companies (NBFCs) a

Bank credit may grow 7% YoY in Q2; NBFC disbursals to pick up QoQ

"We expect banks/NBFCs within our coverage to report credit growth of 7.3/5.8% YoY vs. 8.2/7.1% in 1QFY21,” HDFC Securities said in a recent note, adding, “Deposit growth is likely to have exceede

Besides bank announcements, the markets are waiting for judicial outcomes related to the classification of accounts as NPA and the levy of compound interest in case of accounts under moratorium.

Lakshmi Vilas Bank board to meet on October 15 to consider rights issue

As per a resolution passed by its board, the Lakshmi Vilas Bank has got approval for raising funds by way of equity shares and other instruments through various modes

Lakshmi Vilas Bank, rights issue, board meeting, Indian banking

RBI raises banks’ aggregate exposure limit for small businesses to Rs 7.5 crore

The risk weight of 75 per cent will apply to all fresh exposures and also to existing exposures where incremental exposure may be taken by the banks up to the revised limit of Rs 7.5 crore, the Reserv

RBI announces portfolios of deputy governors

Rao was executive director of the Reserve Bank before being elevated to the post of deputy governor. He took the new charge last week.

Irdai panel for lower entry-level capital for micro-insurance companies

The committee set up by the Insurance Regulatory and Development Authority of India (Irdai) to suggest steps to promote micro-insurance said that like other nations India too will need to attract mult

RBI allows HFCs to lend with banks under co-origination model

The Reserve Bank of India (RBI) on Friday allowed housing finance companies (HFCs) to collaborate with banks for priority sector lending under co-origination model.

Income Tax Calculator, Budget 2019, How to Calculate Income Tax


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