The slowdown in disbursement of new credit in this period has been attributed by bankers to challenges in conducting origination activities, lack of clarity in moratorium extension and risk averseness amid tell-tale signs of stress across sectors.
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"There may be slight delay in the mutual due diligence and preparation of documents for regulatory requirements due to Covid situation and travel restrictions. Hence, both the parties mutually agreed to extend the exclusivity period till 15th September 2020," the bank said on Thursday evening.
For the retail borrowers in banks, the share of moratorium loans came down to 45% in the phase 2 of moratorium against 60% phase 1. For corporate borrowers moratorium levels declined to 17.5% against 25%, the research shows.
The lender is creating a structure for what will be an in-house bad bank that will house all its bad loans and also buy bad assets from other lenders.
SSL Academy, in association with the Economic Times, organised a three-day digital conference titled ‘Financial Freedom Fraternity’ for financial advisors a...
The audit, which took place over four months to February 2019, highlighted a lack of encryption of personal data at the National Payments Corporation of India (NPCI) which forms the backbone of the country's digital payments system and operates the RuPay card network championed by Prime Minister Narendra Modi.
Companies providing intermediary payments, banking and insurance services to rural customers have seen a sharp recovery in June and July, from the initial shock of the nationwide lockdown that brought supply chains and merchant commerce across the country to a standstill.
Acharya, who went back to New York as a professor of economics after quitting his job at the RBI six months before the end of his three-year term, said bankruptcy should not be seen as a punishment, but as a way to restructure debts and pitched for the courts to reopen in the next two to three months.
The study forecasts not only a sharp rise in demand for health insurance products over the upcoming months but also an increased influence of digital modes for insurance purchases.
The ex-central banker was referring to Japan’s experience in the 1990s when a weak banking and financial sector crippled activity and contributed to a lost decade of sub-par economic growth. The RBI sees the country’s bad-loan ratio swelling to the highest level in more than two decades — to 12.5% by March 2021, the highest level since 1999.
Yes Bank was privately owned, before it was quasi-nationalized by making it SBI’s problem. But next year, there will be several small state-owned banks in a similar situation where capital buffers are depleted. This can’t happen yet because of RBI's Covid moratorium on repayments. When the freeze ends next month, loans will start turning overdue.
The bank has consiously avoided taking bulky loan exposures in the last one year as it brought NPAs under control which had spiralled last fiscal due to loan exposures to Cafe Coffee Day and stressed companies in the media and real estate sectors.
While the gross bank credit to industry has contracted by 1.5 per cent in the current financial year, up to the third week of May, dis-aggregate RBI data points towards a huge decline in gross bank credit deployment in sectors like fertiliser (down 29%), chemicals and chemical products (- 10%) and glass and glassware (7%), Assocham stated.
Fino, which turned profitable last fiscal, has already facilitated gold loan sourcing worth Rs 1,000 crore in FY2020 as a corporate business correspondent (BC) for a leading bank, it said.
The committee approved the issuance of private placement of rated, redeemable non-convertible debentures for an amount of Rs 150 crore with an option to retain over subscription up to Rs 350 crore aggregating to Rs 500 crore, it added.
RTI (Right to Information) activist Abhay Kolarkar said that he had sought various banking related queries under the jurisdiction of the RBI in June 2020, and the replies to the same he received a few days back. During July 1, 2019 to March 2020, about 2,14,480 complaints were received.
Before the outbreak of coronavirus pandemic in India only 10 per cent of people were interested in buying health insurance to cover new age diseases, but now 71 per cent people consider health insurance as a necessity to fight unforeseen pandemic like this, the survey said.
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“Please do not extend the moratorium because we see that even people who have the ability to pay whether it’s individuals or corporates are taking advantage under moratorium and deferring payments,” Parekh appealed to RBI Governor Shaktikanta Das.
The Covid-19 pandemic has been the black swan event that no one saw. The crisis is likely to further differentiate the few mid-cap IT firms that have shown r...
In a regulatory filing, Housing Development and Infrastructure Ltd (HDIL) informed that the CoC rejected the resignation tendered by Majmudar, and directed him to continue in his present role.
According to RBI regulations, up to 75% of the value of the gold can be lent. Rising gold prices have meant that loan-to-value (LTV) is higher by Rs 500 per gram on the same jewellery.
Demand from mass housing statement has started picking up post relaxations in coronavirus-induced lockdowns and gradual reopening of economy, he said.
SAVE Solutions is a business correspondent for State Bank of India, Bank of India and Bank of Baroda and intends to use this capital to expand its direct lending through subsidiaries SAVE Microfinance and SAVE Financial Services, group chief financial officer Gourav Sirohi told ET.
"Banks are required to raise capital at the moment. They need to raise and conserve capital. This is because when it is needed, capital may not be available or become highly expensive," Vishwanathan said while speaking at a webinar organised by Enqube Collaboration.
The state-owned lender has reduced interest rate on its short-term gold loan scheme -- Bumper Agri Jewel. Earlier, interest rate on the product was 7.5 per cent.
The NFRA report has again put a spotlight on the confusion on what services can be provided by an auditor to its audit clients.
Containment of the ongoing outbreak, implementation of effective financial tools, adoption of digital means and maintaining significant economic productivity may help the economy recover from the present crisis and build upon a stable financial system, Bandhan Bank said in its Annual Report for 2019-20.
In its bi annual financial stability report (FSR) released on Friday RBI assumed a contraction of GDP by 4.4%, gross fiscal deficit of 10.9% and consumer price inflation of 4.1% as the base case scenario.
In his foreword to the bi-annual Financial Stability Report (FSR), Das said the top priority right now for banks and financial intermediaries should be for augmenting capital levels and improve resilience.
The ratio was already one of the highest among major economies at 8.5% at the end of March, as a two-year shadow banking crisis in India soured debt. If the macroeconomic environment worsens further, the ratio may escalate to 14.7% under the very severely stressed scenario, the RBI said in its semiannual financial stability report on Friday.
"A critical question for the banks, the property market and indeed the economy is now whether the moratorium is extended yet again...Still until proven otherwise, investors should probably assume that the moratorium will be extended for another four months to the end of the calendar year," said Wood in the note titled 'Greed & Fear'.
As unsecured loans dried up post-lockdown and during the moratorium, borrowers have moved to gold loans; local gold prices have hit a record high, surpassing the psychological market ceiling of Rs 50,000 per 10 gram. Even some banks are preferring gold as collateral in sanctioning even working capital loans.
The company has secured authorisation for three years from both the state governments to implement the PMFBY in six districts of Maharashtra and three districts of Karnataka, a release said. The PMFBY offers insurance cover to farmers against losses of crops during the entire cycle, from preparation of sowing to harvesting and post-harvest, due to poor yield.
Reserve Bank of India has also sought information on steps taken by HDFC Bank to remedy any issues identified during the investigation
The banking reforms that started in 2015 in right earnest has achieved a lot. But a lot more needs to be done. This is probably the best time to complete the half done banking sector reforms as activity in the banking sector is at an all time low.
The decision was taken at a meeting held between the IBA -- representing managements of banks -- and members of the United Forum of Bank Unions (UFBU) representing workmen unions and officers' association.
Observing that the country has made rapid strides as far as adoption of digital technology is concerned, he mentioned that as a result, India has the maximum number of mobile and internet banking users in the world. In this era of digital banking, he said, "any institution or bank which is not investing enough resources both in terms of manpower, as well as the financial investment in digital and latest technologies, won't be able to survive."
With a view to promote less cash economy, the government should provide incentives to popularise usage of QR (Quick Response) code transactions among consumers, a report of the Reserve Bank of India (RBI) said on Wednesday.
WhatsApp had started testing its payments service - WhatsApp Pay - in India in 2018. The UPI-based service, which allows users to utilise the messaging platform to send and receive money, competes against Softbank-backed Paytm, Flipkart's PhonePe and Google Pay in India.
Senior level exodus at Axis Bank continues with Naveen Tahilyani, Group Head in charge of transformation, quitting, making it at least the eighth top level exit since Amitabh Chaudhry took over as chief executive at the lender last year.
"Some business models of our customers could undergo changes which could open up new hitherto unknown opportunities. Given the heightened uncertainty (due to lockdown) we are aligned to opportunities that may open up in coming months" Managing Director T T Srinivasaraghavan said.
Google, in an affidavit, has said the PSO authorised by the Reserve Bank of India (RBI) is the National Payment Corporation of India (NPCI) which is the owner and operator of the entire unified payment interface (UPI) network.
The government has also announced that all Saturdays will be public holidays for bank branches in the state till the second week of August. Normally, bank branches across India remain closed on the second and fourth Saturdays.
The SBI report said as per the regulatory requirement, banks in the country need to have a regulatory capital of 9 per cent of risk weighted assets (RWA) along with additional Capital Conservation Buffer (CCB) of 1.875 per cent, which was slated to increase to 2.5 per cent by March 20.
The banker, currently in judicial custody, was arrested in March under provisions of the Prevention of Money Laundering Act (PMLA).
“Rahul Bajaj, Non-Executive Chairman of the company, having been at the helm of the company since its inception in 1987 and the group for over five decades, as part of succession planning, has decided to demit the office as chairman of the board with effect from close of business hours on July 31, 2020,” the company said.
Payments to creditors from Infrastructure Leasing & Financial Services Ltd., whose default in September 2018 triggered a lingering credit crisis in India, are likely to spill over to the financial year beginning April 2021, management said in a call on Monday. It had previously aimed to resolve a bulk of those by this month.
A bench of Chief Justice D N Patel and Justice Prateek Jalan issued notice to the Finance Ministry, Reserve Bank of India and PMC Bank seeking their stand on the application moved by consumer rights activist Bejon Kumar Misra.