The Banks Board Bureau has also recommended names of M V Rao and P P Sengupta for the post of managing director of Central Bank of India and Indian Overseas Bank, respectively. While Rao will replace Central Bank of India MD Pallav Mohapatra who will retire in February next year.
The majority of the claims are from severely-affected West Bengal and nominal from Odisha, she said, adding, a bulk of those have been received from business enterprises, shops and factories.
The regulator said the penalty on Citibank was for not adhering to the directions related to customer credentials.
Dhillon's appointment as Chairman and Managing Director will be with effect from the date of assumption of charge of the post on or after June 2020. He would hold the post till the date of his superannuation (May 31, 2023) or until further orders,
The number of PSBs has come down after amalgamation of several lenders, and their ability to lend has increased manifold, Union Bank of India MD and CEO Rajkiran Rai G said.
The appointment comes after the Bank Boards Bureau (BBB), the headhunter for state-run banks and financial institutions, recommended Jaishankar on March 15. The post lied vacant for three years before the appointment.
"The unprecedented coronavirus pandemic has affected every aspect of our life. It has impacted each one of us, our families, our customers, partners and businesses. These trying circumstances have compelled us to revisit and re calibrate our business strategy keeping sustainability and business continuity in mind," the company said in a statement.
Legal experts and some of the resolution professionals are learnt to have sent feelers to senior government officials that deferring the admission of cases under the Insolvency and Bankruptcy Code (IBC) would not only prevent orderly resolution in the banking system, but could also be viewed as a retrograde step, two senior bankers told ET.
State Bank of India (SBI) is all set to activate its micro market vertical from June to raise its stake with the bottom-of-the-pyramid borrowers, and it has asked SBI Life Insurance chief executive Sanjeev Nautiyal to head the initiative.
SB Energy, renewable energy arm of SoftBank, has mandated Bank of America Merrill Lynch and Barclays to help raise $500-$750 million in SBG Cleantech — it’s 80:20 joint venture with Bharti, multiple people aware of the development said.
The lender had sent a notice to the Bombay Stock Exchange listed developer in February, demanding repayment of the loan given against its project Aarohan Residences in Gurgaon.
The impact of forced lending on banks' impaired-loan ratios can be anywhere between 200 and 600 basis points (bps), depending on the severity of stress and banks' individual risk exposures and the higher regulatory provisions, Fitch Ratings said in the report on Thursday.
The zero-contact method completely does away with paper work or biometric verification, thereby removing physical interaction between the bank and customer from the know your customer (KYC) process, IDFC First Bank said in a release.
Active Investing and Execution Why do investors put their hard-earned money in the stock markets? To make good returns over a period. There has been debate o...
Despite the government announcement of Covid-related delinquencies not being treated as a default, it would be impractical to provide a blanket protection against recovery action to all borrowers, bankers have said.
On February 27, the Securities Appellate Tribunal allowed lenders Nippon India Mutual Fund and Credit Suisse to invoke shares of Reliance General Insurance pledged by Anil Ambani group firms. Lenders including Credit Suisse, Nippon Life, Life Insurance Corporation of India. Other banks and institutions own non-convertible debentures of Reliance General Insurance.
A pent-up demand for vehicles and social distancing needs, coupled with the introduction of digital inputs to manage customer journey by banks will lead to a faster uptick in auto sales, which were sagging before the lockdown and came to a standstill in the last two months, the bank's country head for retail lending Arvind Kapil said.
The order said that IL&FS had sought that an amount of Rs 61.84 lakh is excluded as resolution process costs incurred for meeting various expenditures, other applicable taxes from the sale proceeds of the applicant's shareholding in GIFTCL to the Gujarat government.
The insurance will help cover the expenses related to COVID-19 hospitalization and treatment as well as ambulance assistance and ICU charges of up to INR 50,000, and it will be valid for one year after activation, the company said in a statement.
Unstable cashflows and low reserves, coupled with a restricted ability to seek additional debt or equity financing, can create immense pressure on businesses to divert funds between entities for non-permissible or surreptitious purposes, said the PwC report titled ‘Rethinking Fraud and Economic Crime.’
The counsel argued that borrowers should not be penalised like this and banks should not add interest on the loan amount during the moratorium period.
Bankers say that the RBI may have to tweak rules that demand provisioning if the existing promoters are retained after a loan restructuring. They say the existing promoters have the best chance of keeping the business going instead of going for a new one who would find it difficult to run a medium-sized firm.
The prime concern expressed by microfinance leaders now is that the extended moratorium might increase stress and derail the robust credit discipline that they nurtured over the years.
Nehal Modi's name figured as the accused number 27 in the supplementary chargesheet filed by the CBI, which charged him for destroying evidence in Dubai to cover the tracks of the alleged crime, the officials said.
IDFC FIRST Bank MD & CEO V Vaidyanathan has voluntarily offered to take a pay cut of 30 per cent in his compensation including fixed compensation as well as all allowances, the bank said.
It can be noted that deposit rates across the system are dipping due to a combination of an interest rate lowering by the Reserve Bank of India and also a lack of loan growth where the money can be deployed.
The immediate reaction from Institutional Investor Advisory Services (IiAS) is the invite that SBI has sent out to shareholders for an EGM on June 17 amidst the pandemic, as the State Bank of India Act of 1955, which created it, does not envisage or allow it to hold the extra-ordinary general meeting digitally/electronically or even an e-voting.
"Each bank had its own employee benefit schemes. The scheme that is most beneficial to the employees were extended to all the employees of the amalgamated entity. This way heartburns were not created," a top official of All India Bank Employees' Association said.
"We have sanctioned loans amounting to Rs 2,789 crore under agriculture, SHGs, Retail, MSMEs with almost one lakh beneficiaries between March 2020 and May 2020," the lender said in a statement.
A team of officers and technical experts was moved into a hotel in Mumbai and another team was stationed in Khargar on the outskirts of Mumbai to work remotely and ensure that the wheels of the economy keep moving.
While paring deposit rates-to ensure that all borrowers benefit from the lower rate regime-bankers have been asked to ensure widespread implementation of the Pradhan Mantri Vaya Vandana Yojana, which has been extended by three years up to March 2023. Under the scheme, senior citizens will be paid 7.4% interest during the current financial year with the rate to be reset next year.
As part of the Rs 20.97 lakh crore comprehensive economic package, the government announced the Emergency Credit Line Guarantee Scheme (ECLGS) worth Rs 3-lakh crore for the MSME sector, hit hard by the coronavirus crisis.
BoB's numbers are higher than some peer banks like State Bank of India (SBI) which had said that only 20% of its borrowers had opted for the moratorium. BoB estimates that it can offer about Rs12,000 crore of loans to micro small and medium enterprises under the Rs 3 lakh crore goverment guarantee scheme which is 20% of its Rs 60,000 crore exposure to this sector.
The bank has since sanctioned nearly six lakh loans amounting to Rs 4300 crore under agriculture, SHGs and retail categories. The bank said it has also sanctioned more than Rs 60,000 crore of advances to corporates and MSMEs from March 2020 till date.
SBI Chairman Rajnish Kumar on Friday said close to 20% of the bank's borrowers have opted for moratorium on repayment of term loans instalments.
"The entire effort of the government and the RBI is to revive the growth in the economy and at the same time recognising the difficulties that industries are facing. All the measures around reduction in repo rate, moratorium and increase in the limit on group exposures will be helpful in revival of the economy," SBI chairman Rajnish Kumar told.
Bank deposits have risen by over Rs 2.8 lakh crore in three fortnights of the lockdown till May 8, while bank credit during the period dipped by Rs 1.2 lakh crore, according to data released by the Reserve Bank of India.
Public sector banks have three months to build up their portfolios to be eligible for the extended Partial Credit Guarantee Scheme (PCGS 2.0), which will be based on actual amounts disbursed within this period, according to guidelines released by the finance ministry on Thursday.
The chairman of the Fifteenth Finance Commission, NK Singh, said on Thursday the issue of monetisation of fiscal deficit should be left to the judgement of the Reserve Bank of India, the government’s principal debt manager
“The code envisages maximisation of value and not price,” wrote Dr M.S.Sahoo, chairman, IBBI, in the latest newsletter released by the bankruptcy regulator. “The value improves if business is continued and its assets are used more efficiently.”
Banks are also set to discuss with the finance minister the rolling out of the Rs 3 lakh crore MSME package and the extension of partial credit guarantee scheme to NBFCs. This meeting was earlier slated to happen on May 11.
Cash infused by the Reserve Bank of India or the currency in circulation amounted to Rs 1.42 lakh crore between April 01 and May 15, the latest release on reserve money indicated. This is almost double the amount of Rs 72,984 crore, which was released in the same period a year ago during which election cash demand was high.
"I think this is an year of survival, not everybody is likely to invest (in policies) when the GDP (gross domestic product) is not likely to do good. This year will not be an year of significant growth," Tarun Chugh, MD and CEO of Bajaj Allianz Life Insurance, told PTI in an interview.
Employees will now be able to declare a LGBT+ partner as an eligible beneficiary under the bank’s medical reimbursement policy. The declared partner will also get covered under the domestic relocation policy.
The government is considering a 5-7% interest subvention on loans to street vendors to make the targeted ₹5,000-crore financial assistance scheme popular amid apprehensions that organised lenders would baulk at lending to the bottom of the pyramid.
With prospects of almost zero recovery over the next few months, banks are worried that buyers may call off deals or reduce valuations significantly if the final approvals are delayed due to stalled economic activity.
The meeting, to be held via video-conferencing, will also take stock of interest rate transmission to borrowers by banks and progress on moratorium on loan repayments, the sources said. The meeting assumes significance in light of the over Rs 20 lakh crore comprehensive economic package announced for the economy reeling under the COVID-19 crisis.
The Reserve Bank of India (RBI), in a separate release, said bank credit growth (y-o-y) decelerated for the fourth successive quarter in December 2019 as industrial credit growth (-0.8 per cent) moved to the negative terrain for the first time after September 2017. During the quarter, personal loans segment continued to grow at a robust pace of 17.1 per cent.
The fund would be managed by a public sector bank though a special purpose vehicle (SPV) which will raise money by selling securities to the RBI. This money will be used to buy short term debt maturing in three months from NBFCs. In case of any defaults the SPV will be covered by a government guarantee.
In a statement Fitch said, NBFIs will continue to face considerable risks to their asset quality and liquidity even as the economy reopens gradually and banks - the major source of incremental NBFI funding - will remain cautious in the face of looming asset quality pressure.