Chanda Kochhar moves High Court against ICICI Bank over termination

Says bank had already accepted her request for an early retirement.

from Banking/Finance-Industry-Economic Times https://ift.tt/2DrvHfV

Dharamshi-Jhunjunwala Consortium: NCLT okays Ricoh revival plan

A dedicated bankruptcy court has accepted the resolution plan for the revival of Ricoh India, the largest player in printing and document solutions.

from Banking/Finance-Industry-Economic Times https://ift.tt/2snzNDl

HR Khan to take charge of microfinance code from December

MFIN wanted a heavyweight for this CRL project, which is a self-regulatory step for a diverse set of lenders engaged in microfinance such as banks, small finance banks, non-banking financial companies (NBFC), NBFC-MFIs and not-for-profit firms.

from Banking/Finance-Industry-Economic Times https://ift.tt/2L7nnGp

Fitch says liquidity pressures faced by non-banking financial sector to continue

Indian finance and leasing companies are likely to grow at a slower pace in the year 2020 than in prior years, amid weaker economic growth and liquidity constraints, the rating agency said. Fitch added that its 2020 sector outlook is underpinned by challenging operating environments, lower growth prospects, and rising funding pressure.

from Banking/Finance-Industry-Economic Times https://ift.tt/2OT8uIU

Not through bonds, only cash, says C Rangarajan on banks recapitalisation

Rangarajan comments assume significance as Finance minister Nirmala Sitharaman, in August, announced upfront capital infusion of Rs 70,000 crore into public sector banks, a move aimed at boosting lending and improving liquidity situation.

from Banking/Finance-Industry-Economic Times https://ift.tt/2XWxtyW

Former RBI deputy governor appointed as chairman of MFI panel

Members of the steering committee include Harsh Shrivastava of MFIN, P Satish of Sa-Dhan, Srinivas Bonam of IndusInd Bank and Sonia Krishnankutty of L&T Finance among others.

from Banking/Finance-Industry-Economic Times https://ift.tt/2R2qtiK

Corporate frauds see massive surge: SBI

Data disclosed in the initial public offering (IPO) document of SBI Cards showed that largeticket corporate frauds worth Rs 26,757 crore were reported to regulators between April and November this year by SBI, compared with Rs 10,725 crore were reported in FY19. The comparison appears even starker when FY18 disclosures, at only Rs 146 crore, are considered.

from Banking/Finance-Industry-Economic Times https://ift.tt/2L3KEZU

Lenders to refer more cases to NCLT

Lenders need to come up with a plan by January 7, failing which they would be required to make 20% provisions or refer the cases to court under IBC within 30 days, under the new RBI rule. “Many cases will be referred to NCLT whereever banks fail to put together a resolution plan,” said a senior bank executive with a public sector bank.

from Banking/Finance-Industry-Economic Times https://ift.tt/35IfX47

HDFC Bank sets up panel to find successor to managing director Aditya Puri

"The board of directors of the bank at its meeting held today has constituted a search committee to identify a successor to Aditya Puri, the current managing director of the bank, whose tenure ends on October 26, 2020. The search committee shall evaluate internal and external candidates to ensure smooth transition," the bank said.

from Banking/Finance-Industry-Economic Times https://ift.tt/33wMDMl

Muthoot Fincorp expects 15-17 per cent growth in assets under management for FY20

We disbursed close to Rs 27,000 crore last fiscal with over 90 per cent towards gold loan," COO Muthoot Fincorp Limited, Vasudevan Ramaswami said in a press conference. Presently, Muthoot Fincorp has over 3,600 branches in India, with seventy percent in southern markets.

from Banking/Finance-Industry-Economic Times https://ift.tt/33rlsTn

How to use market volatility to your advantage through SIP

The stock market is just like the weather - it's unpredictable. Volatility is a part and parcel of capital markets and investment journey. Market volatility ...

from Banking/Finance-Industry-Economic Times https://ift.tt/2KWHt67

Three UP regional rural banks to be amalgamated

The notification said the the government had after consultations with the National Bank for Agriculture and Rural Development (NABARD) and the sponsor banks of the concerned regional rural banks decided that it was necessary in public interest and the interest of the three regional rural banks that they be amalgamated.

from Banking/Finance-Industry-Economic Times https://ift.tt/2L2bUro

FIS India fined Rs 12 crore by Bank of India for flouting ATM service norms

The problem came to light due to a complaint by a whistleblower, a source aware of the developments told ET. The issue has been taken up through an internal enquiry and four of FIS’ top executives who were managing the ATM and allied services business in India have been asked to step down till the enquiry is complete, the source added.

from Banking/Finance-Industry-Economic Times https://ift.tt/35HiR9j

Merger of three RRBs to form Baroda UP Bank

The government has notified amalgamation of regional rural public sector banks — Baroda Uttar Pradesh Grameen Bank, Kashi Gomti Samyut Gramin Bank and Purvanchal Bank — into a single regional rural bank, Baroda UP Bank.

from Banking/Finance-Industry-Economic Times https://ift.tt/2qVaUOW

The common “Code for Responsible Lending” (CRL) for microfinance has a few big names missing

Bandhan Bank Managing Director Chandra Shekhar Ghosh said that the code in its current form is restrictive for the bank’s business growth. He said the code should have spelt out what should be the ideal business conduct instead of limiting the quantum of loan given by banks.

from Banking/Finance-Industry-Economic Times https://ift.tt/2OsvNu6

PMC scam: Court gives nod to sell jets, yacht of Wadhawans

A court has allowed the RBI- appointed administrator for PMC Bank to sell two airplanes and a yacht belonging to HDIL group promoters Rakesh Wadhawan and his son Sarang.

from Banking/Finance-Industry-Economic Times https://ift.tt/2P1RH6z

Aviva Life settles insolvency case in NCLT

Aviva Life Insurance on Wednesday said the insolvency case filed against the company, in a matter involving commercial dispute of Rs 27 lakh, has been settled.

from Banking/Finance-Industry-Economic Times https://ift.tt/2ORLUA3

New group insurance norms set to promote fair practices

The Insurance Regulatory and Development Authority has said that group insurance schemes should show collection of premium, issue of certificate of insurance and reimbursement of expenses. Also, interest rates declared under group savings products should be in such a way that there is no discrimination among identical policyholders on fund size.

from Banking/Finance-Industry-Economic Times https://ift.tt/2Oq8gK9

Is IBC the best way to treat bankrupt financial institutions? Here are some clues

Financial institutions’ meltdown could be quicker than wax. Unlike manufacturing cos, which affect only a small set of suppliers and customers, troubles in a financial institution could lead to risk aversion and their inter connectedness could lead to even sound companies finding it difficult to access credit and meet their obligations.

from Banking/Finance-Industry-Economic Times https://ift.tt/2OQn4Az

India asks state-run firms to clear over $1 bn owed to green energy firms: Sources

The companies owe solar and wind power generators including Goldman Sachs-backed ReNew Power and Softbank-backed SB Energy over 97 billion rupees ($1.35 billion), according to the Central Electricity Authority, an arm of the federal power ministry. Commercial banks are unwilling to lend to these firms because of their high outstanding debt.

from Banking/Finance-Industry-Economic Times https://ift.tt/2OOJYsj

RBI red flags rising Mudra bad loans

The Mudra loan scheme was launched by Prime Minister Narendra Modi in 2015 to help the highly under-funded small and medium industries with cheap bank loans. Raising concerns over growing number of NPAs under the Mudra loans, Reserve bnak if India Deputy Governor MK Jain asked asked banks to focus on repayment capacity at the appraisal stage itself.

from Banking/Finance-Industry-Economic Times https://ift.tt/2KU55bg

Royale Partners’ resolution plan for EPC Construction gets

The foreign investor has offered to put in around Rs 900 crore to revive the company, which owed more than Rs 7,700 crore to its financial and operational creditors. The company’s lenders had approved the plan earlier this year, with 73% of them based on the outstanding debt voting in favour of Royale Partners.

from Banking/Finance-Industry-Economic Times https://ift.tt/35FqHAt

Gross NPAs of SCBs decline by 98K cr by June: Govt

Gross NPAs of SCBs, which stood at Rs 10,36,187 crore on March 31, 2018, declined by Rs 97, 996 crore to Rs 9,38,191 crore as on June 30, 2019, Anurag Thakur said during question hour in Lok Sabha. The gross NPAs stood at Rs 3,23,464 crore as on March 31, 2015 and increased to over Rs 10.36 lakh crore figure by the end of 2017-18 fiscal on March 31.

from Banking/Finance-Industry-Economic Times https://ift.tt/37AsJDr

Ashok Leyland joins hands with lClCl Bank for vehicle loans

The company has inked an MoU with lClCl Bank to enter into a strategic financing partnership for two years, the Hinduja group flagship said in a regulatory filing. The agreement will enable both the partners to offer customised financial solution to customers across the country with focus on semi-urban and rural geographies, it added.

from Banking/Finance-Industry-Economic Times https://ift.tt/2qISn8z

IL&FS: NCLT asks Axis, StanChart CEOs to be present on Dec 16, bankers may seek review

The bank sources said they have never been directed by the tribunal to be present for the hearing.

from Banking/Finance-Industry-Economic Times https://ift.tt/34vlV88

Microfinance GLP jumps 48% to Rs 2 lakh cr in Sept quarter

In the second quarter ended September 2019, the total number of microfinance loan accounts were at 9.79 crore as compared to 7.43 crore account in the year-ago period, according to a quarterly report by Microfinance Institutions Network (MFIN). Since March 2017, an estimated 1.83 crore unique borrowers have been added, which is an average of 0.73 crore per year.

from Banking/Finance-Industry-Economic Times https://ift.tt/2qzfq5T

After forensic audit report, mutual funds plan to go after DHFL promoters

These institutional lenders want Wadhawans, the promoter group, to arrange funds in the light of the findings of the forensic audit conducted by a Big4 firm. The MFs will soon raise the issue in the three-member committee formed by the Reserve Bank of India (RBI) to help the administrator in recovering about Rs 84,000 crore that DHFL owes to the system.

from Banking/Finance-Industry-Economic Times https://ift.tt/2QNNh5K

Assess core strengths before scaling up operations: Nirmala Sitharaman to banks

"Institutions like banks should understand their core strengths and offer benefits to people like providing value- added features like phone banking facilities or rolling out of chat bots to serve customers and should not take up unnecessary scaling up of operations", Finance Minister Nirmala Sitharaman said.

from Banking/Finance-Industry-Economic Times https://ift.tt/37vxo9R

Religare Finvest siphoned money to foreign companies, ED tells court

ED said that “the money trail which is found during interrogation is required to be confronted and further investigated”. The agency also told the Court that it has recovered voluminous “email dump” of accused and “key management persons” which is being looked into. The agency claimed that emails has data connected with proceeds of crime.

from Banking/Finance-Industry-Economic Times https://ift.tt/34epMGx

PMC Bank probe finds another ghost account operator

​​These ‘ghost accounts’ are suspected to have been operated by entities with the knowledge of arrested bank officials, sources said. These accounts allegedly belonged to the Abchal Group, loans to which have turned bad, saddling the bank with a Rs 300 crore liability. Not much information seems to be publicly available on the Abchal Group or its promoters.

from Banking/Finance-Industry-Economic Times https://ift.tt/2XIWXzU

RBI mulling new rules on corporate governance; wants banks to disclose more

"When things are delayed, it only continues to fester in the system, " N S Vishwanathan said.

from Banking/Finance-Industry-Economic Times https://ift.tt/2QJzKw2

RBI appoints 3-member advisory panel for DHFL

IDFC First Bank's Non-Executive Chairman Rajiv Lall, ICICI Prudential Life Insurance's Managing Director and Chief Executive N S Kannan, and mutual funds' association AMFI's Chief Executive N S Venkatesh would be part of the three-member panel which will advise the administrator of DHFL, an official statement said.

from Banking/Finance-Industry-Economic Times https://ift.tt/35qqi4u

Saving money for an emergency through liquid funds

Have you ever thought of getting reasonable returns without compromising too much on how quickly we could get our hands on the cash? Financial planners recom...

from Banking/Finance-Industry-Economic Times https://ift.tt/37sr3vI

Loan Outreach: PSBs disburse Rs 2.5L Cr in Oct

As a part of its outreach programme, the public sector banks have disbursed Rs 2.53 lakh crore in loans in October. Loans to corporates accounted for Rs 1.23 lakh crore while NBFCs received disbursements of Rs 19627 crore. Finance Minister Nirmala Sitharaman had announced that PSBs would extend credit to farmers, MSMEs and prospective customers

from Banking/Finance-Industry-Economic Times https://ift.tt/37tERGz

Stress in rural households and loan defaults create woes for microfinance sector in Assam

Various organisations in the upper part of the northeastern state have joined the chorus seeking an inquiry into the operation of microfinance lenders as several micro borrowers are said to be exposed to high debt. Reports of unrest have come from various districts of Assam. Indebtedness of micro borrowers in Assam is more than double the national average.

from Banking/Finance-Industry-Economic Times https://ift.tt/2QD4Yof

SBI admits to making many poor commercial decisions

Speaking at an event organised by former Sebi chief M Damodaran here on Thursday, Arijit Basu, a managing director at SBI, also conceded that the bank has erred on some business decisions and cannot attribute those to social compulsions.

from Banking/Finance-Industry-Economic Times https://ift.tt/2KGix2H

CSB Bank to open 425 branches in 5 years

MD and CEO C V Rajendran said the bank with majority of branches in Kerala and Tamil Nadu will increase its presence in key geographical locations such as Maharashtra, Gujarat, Andhra Pradesh, Punjab, Telangana and Karnataka. `

from Banking/Finance-Industry-Economic Times https://ift.tt/2rd6ovf

PSU banks disburse Rs 2.52 lakh crore loans in October

The government in September had asked state-run banks to step up lending and hold outreach programmes or loans melas in 400 districts to lend to desirable shadow banks and retail borrowers. An amount of Rs 1.05 lakh crore was fresh lending, the Department Financial Services said in a statement.

from Banking/Finance-Industry-Economic Times https://ift.tt/2r9Cx6X

Bank unions to stage dharna before Parliament on Dec 10

In August, the government announced its plan to merge 10 public sector lenders into four to create fewer and stronger global-sized ban.

from Banking/Finance-Industry-Economic Times https://ift.tt/35gPVES

Will DHFL depositors get their money back?

Public deposits contribute 7% of the overall borrowing mix of Rs 83,900 crore. Debenture holders have 37% exposure followed by 31% bank term. DHFL being the first financial services provider to be taken to bankruptcy code, it is to be seen how the resolution of a non-bank entity is undertaken under the IBC with large number of fixed deposit holders.

from Banking/Finance-Industry-Economic Times https://ift.tt/35gLeee

View: Haircuts for Indian finance — bald or bold? Signs from the DHFL case

For lenders to pretend that they were going to restructure Dewan’s $12 bn in liabilities out of court was just a Bollywood fantasy. The problem is that India’s 2016 insolvency law, modeled on the UK system, is set up for nonfinancial firms. Using the same law to put a financier like Dewan out of its misery has some advantages but many shortcomings.

from Banking/Finance-Industry-Economic Times https://ift.tt/2OvPgZx

Paytm's Vijay Shekhar Sharma cautions customers of scam messages and emails

Paytm founder Vijay Shekhar Sharma took to Twitter to plead with customers to maintain caution. “Pls (please) don’t trust any SMS sent on blocking your Paytm account or suggestion to do a KYC. These are fraudsters…” Sharma tweeted. These tweets come after hundreds of Paytm customers over past three months have registered complaints with the company’s cyber cell.

from Banking/Finance-Industry-Economic Times https://ift.tt/2rfM8J7

Supreme Court upholds NCLAT order against encashing IL&FS’ guarantees

Maharashtra Metro Rail Corp had approached the top court seeking to encash bank guarantees after IL&FS Engineering & Construction Co failed to fulfil its contracts. However, the apex court has upheald the NCLAT order dated October 15, 2018 disallowing any such move. SBI alone has given bank guarantees worth around Rs 700 crore on behalf of IL&FS companies.

from Banking/Finance-Industry-Economic Times https://ift.tt/37pqMK8

Bank credit grows by 8.07%, deposits 9.92%: RBI data

Bank deposits in the fortnight ended November 8 increased by 9.92 per cent to Rs 129.98 lakh crore from Rs 118.257 lakh crore year ago, RBI data showed. Deposits had grown by 10.25 per cent to Rs 129.78 lakh crore in the fortnight ended October 25.

from Banking/Finance-Industry-Economic Times https://ift.tt/2OtVj0P

Only machines do the talking at Federal Bank hiring process now

FedRecruit relies on a series of connected events or data points and goes beyond the conventional one-sided resume to construct a 360-degree narrative of the candidate. These data points are gathered through multiple stages--robotic interviews, psychometric and game-based assessments processes etc., Federal Bank HR chief Ajith Kumar KK said.

from Banking/Finance-Industry-Economic Times https://ift.tt/35eeORA

Pramit Jhaveri, who brought scale to Citi India, quits

The 56-year-old Jhaveri had joined the Wall Street major as a management associate in 1987, and had a steady rise to become vice-chairman of banking, capital markets and advisory for Asia Pacific earlier this year, after heading the India operations for almost a decade between 2010 and 2019.

from Banking/Finance-Industry-Economic Times https://ift.tt/2rUnhLk

NCLAT rejects DBS Bank's plea challenging distribution of funds from Ruchi Soya resolution plan

DBS Bank has extended financial debt amounting to USD 50 million (around Rs 243 crore) to Ruchi Soya and had secured as a sole first charge on fixed assets of the debt-ridden firm at Baran, Guna, Daloda, Gadarwara, Mumbai and Kandla. During the insolvency proceedings, RP had admitted claims of Rs 242.96 crore of DBS Bank.

from Banking/Finance-Industry-Economic Times https://ift.tt/2KFl5Op

Bankruptcy law comes of age

India’s insolvency resolution framework has truly arrived after a tortuous journey of three years. Banks will finally be able to keep out unscrupulous promoters with the law establishing the primacy of financial lenders on asset proceeds.

from Banking/Finance-Industry-Economic Times https://ift.tt/2rayw1O

DHFL is about to score a bankruptcy first

The referral, which will happen after the RBI informs the government and a notification is issued, will help ease DHFL’s troubles that began in September 2018 with the credit crunch caused by the collapse of IL&FS. RBI has already informed the department of financial services about referring DHFL and two other NBFCs to the NCLT.

from Banking/Finance-Industry-Economic Times https://ift.tt/35fyVyQ

After tweak in bankruptcy code: Lenders may ask RBI to refer DHFL to insolvency

The referral, which will happen after the RBI informs the government and a notification is issued, will help ease DHFL’s troubles that began in September 2018 with the credit crunch caused by the collapse of IL&FS. RBI has already informed the department of financial services about referring DHFL and two other NBFCs to the NCLT.

from Banking/Finance-Industry-Economic Times https://ift.tt/2KDYkKC