From March 30, fixed deposits of 33-month duration will fetch 6.2% annualised returns. For 66-month deposits, the rate would be 6.6% and 6.65% for 99-month deposits. Senior citizens would get 25 basis points more. Distributors said this is the first time after October 2018 that HDFC Ltd has raised deposit rates.
Concerns over concentration risk and a need to fast-track cashless payments had led the RBI to invite applications for a NUE to rival the NPCI, which currently delivers services like UPI-based payments.
Central Bank of India, Indian Overseas Bank, Bank of India and UCO Bank will receive the funds through zero-coupon bonds, according to a government notification dated Tuesday
The loan is intended to promote smooth flow of funds for the whole range of business operations of Japanese automobile manufacturers in India, SBI said in a statement.
Under the new norms, banks will be required to inform customers in advance about recurring payment due and transaction would be carried following nod from the customer. So the transaction would not be automatic but would be done after authentication from the customer.
The brokerage has highlighted risks emerging for AU Small Finance Bank and RBL Bank which have a high proportion of loans to small enterprises and micro finance.
It is informed that an NPA Account, viz IL&FS Transportation Network Limited (ITNL) with outstanding dues of Rs 149.98 crore has been declared as fraud and reported to the RBI as per regulatory requirement, Punjab & Sind Bank said in a filing.
It could not be immediately determined what caused the problem, but an HDFC Bank spokesperson said it was not widespread.
The government has already compensated banks for the interest on interest they had lost on loans outstanding below Rs 2 crore. Analysts estimate the additional cost to reimburse banks for all loans at Rs 7,000-10,000 crore.
With a loan portfolio of over Rs 5,360 crore and close to 25 lakh customers across 23 states, the Chennai-headquartered Asirvad is the fourth largest microfinance lender in the country in terms of the loan book.
Normal clearing timings as applicable to any working Wednesday shall be followed on March 31, 2021, the RBI said in a notification addressed to the member banks, urban and state cooperative banks, payments banks, small finance banks as well as the NPCI.
The government is unlikely to take zero-coupon bond route to further recapitalise public sector banks after the Reserve Bank expressed some concerns in this regard, sources said.
In September 2019, the RBI had superseded the board of PMC and placed it under regulatory restrictions, including cap on withdrawals by customers, after detection of certain financial irregularities and misreporting of loans given to real estate developer HDIL.
"Unless you internalise it's going to be a digital world...we will see a very quick evolution of this space in the next 10 years. It's not just bank but entire financial services space is set for disruption, not necessarily a negative way, it can be also in a positive way," the former president of New Development Bank said.
The NPA account Infrastructure Leasing & Financial Services Ltd (IL&FS) with outstanding dues of Rs 399.31 crore has been declared as fraud, the bank said in a regulatory filing.
Out of these six branches, which are in Kolkata Zone, one branch is in Port Blair and other five are in West Bengal, BoM said in a statement. It will enhance customer experience with the bank's innovative digital banking solution, it said.
The comments come days after the RBI appointed a panel headed by former deputy governor Shyamala Gopinath on bank licences to evaluate applications for universal banks and small finance banks. An internal panel had recently recommended allowing deep-pocketed corporates into the banking fray, something the RBI had been averse to for long.
The Rajya Sabha passed the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 by voice vote on Thursday.
Considering the pandemic and lockdown did not give much of a breather to any industry and the banking and financial sector was no exception, such elaborate security and transparency requirements could not be put in place. So, the deadline of 1st April will certainly unleash disruption on unsuspecting customers and businesses.
On its verdict on a batch of pleas seeking moratorium extension beyond August 31, 2020, the apex court on Tuesday said it is a policy decision, refusing to interfere with the Centre's and RBI's decision to not extend the loan moratorium beyond the limit.
Khan, in a letter dated March 24, 2021, has informed the bank that due to his other pre-occupations and priorities, it would not be possible for him to continue as an independent director beyond the current term, the private sector lender said.
TT Srinivasaraghavan of Sundaram Finance also said the system-wide impact is very minimal only but they are yet to assess it fully well.
Sebi, in September 2020, had levied a fine of Rs 1 crore on Kapoor for not making disclosures regarding a transaction of Morgan Credit, which was an unlisted promoter entity of Yes Bank.
Customers can purchase gadgets or pay for their insurance premium or school fees in easy EMIs from their savings account using the internet banking platform, bank said.
Factoring in timely intervention from the government and minimal probability of default, the agency said it has a rating floor of 'IND AA-' for senior instruments and Tier 2 instruments of banks, which are majority-owned by the government.
Sources said that the government wants to collect individual bank data to assess the total liability on the sector to reimburse interest on interest collected on loan exposure over Rs 2 crore for the period between March-August 2020.
" In Q3 last year, we did extremely well, Q4 was pretty good. Due to Covid-induced lockdown the next two quarters were quite muted and again from Q3 -this year onwards -growth started showing up and Q4 is going to be very good. On a steady state, we should be able to grow at about 17-18%," Girish Kousgi, MD & CEO Can Fin Homes
The top five lenders State Bank of India, HDFC Bank, Bank of Baroda, ICICI Bank, Punjab National Bank who hold about half of the $1.8 trillion financial sector’s loans will have to refund $500 million while the rest will mainly be spread among more than 50 local banks and shadow lenders. Still, this is a small amount compared with their combined annual operating profit of more than $28 billion, according to ICRA’s Gupta.
The Supreme Court had in September last year stayed the classification of bad loans to lessen the stress on borrowers amid the pandemic.
Furthermore, life insurers have been given extensions to obtain the customer’s e-signature for policies till 30 September 2021. The facility was earlier slated to expire this month.
Although the Supreme Court (SC) has rejected petitions for a complete waiver of interest and extension of moratorium until the end of FY21, banks may have to refund or adjust the interest charged on a compounded basis and move to simple interest calculations between March and August 2020.
"There has been a reduction in gross NPAs. The NPAs - which stood at Rs 8.96 lakh crore in 2018 - has reduced to Rs 5.70 lakh crore in December 2020. Recovery of Rs 2.74 lakh crore was also made," Thakur said while replying to a supplementary question in the Upper House.
"RBI should consider giving banks longer time, maybe a time of maybe 180 to 270 days to declare NPAs because the fact still remains that Covid is not over, "--DK Mittal, Former Banking Secretary.
The court said the Policy shall be placed before it and the petitioners shall make a representation to the Committee for further processes in terms of the directions and listed the matter for further hearing on April 19.
In its awaited ruling, the SC denied to interfere with the Centre's and Reserve Bank of India's (RBI) decision to not extend the loan moratorium beyond August 31, 2020. The apex court said it is a policy decision. However, it directed that no compound or penal interest shall be charged from borrowers for the six-month loan moratorium period.
Supreme Court pronounces verdict on plea seeking extension of loan moratorium
A three judge bench of justice Ashok Bhushan, R Subhash Reddy and MR Shah while rejecting a further extension beyond August 31 said there cannot be a complete waiver of interest during the period.
The SC said no direction can be issued to the govt or RBI to announce any particular financial packages or reliefs, and held that it cannot issue directions to provide relief to particular sectors over and above others.
The group also known as Muthoot Blue has four NBFCs -- Muthoot Fincorp which is into gold loans, Muthoot Capital, its listed entity which is into two-wheeler and used car loans, Muthoot Microfin, and Muthoot Housing Finance.
“With all regulatory approvals the investment has come into the Edelweiss Group,” said a senior executive familiar with the matter. This investment will help in scaling up the Wealth franchisee and will also aid in funding other growing businesses including Alternatives, Asset Reconstruction, Life & General insurance, mutual funds & retail lending.
The new JV with NASDAQ-listed Focus Financial Partners Inc, a leading partnership of independent, fiduciary wealth management firms, is dubbed a multi-family office that will cater to some of the most prominent families in the world through offices in London, Geneva and Singapore.
The company intends to deploy the ECB proceeds for their onward lending program targeted to support their microfinance as well as small business customers in more than 9000 deep rural villages with little or no access to formal means of credit.