Equitas SFB receives observation letters from stock exchanges for merger scheme

Both BSE and NSE have given no objection to the proposed scheme from The HinduBusinessLine - Money & Banking https://ift.tt/vVRbH...

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Six Indian banks sue GVK for Rs 12,114 crore: Report

According to the report, GVK defaulted on a $1-billion loan and a $35-million letter of credit facility given by banks in 2011, and a $160-million loan lent in 2014. Nine other GVK Group companies are also being sued in the case which opens Monday. from Banking/Finance-Industry-Economic Times https://ift.tt/VHcJD...

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Bank of Baroda hikes MCLR by 10-20 bps

BANK OF BARODA on Friday increased the marginal cost of funds-based lending rates (MCLR) by 10 to 20 basis points across tenures, effective June 12. With this increase, the bank’s one-year MCLR now stands at 7.50%, according to information on the lender’s website. So far, ICICI Bank increased the marginal cost of funds-based lending rates (MCLR) by 30 basis points while HDFC Bank increased its MCLR rates by 35 basis points across tenures. Axis Bank’s one-year MCLR is at 7.75%, IndusInd Bank’s one-year MCLR is at 8.75% while that of State Bank of India is at 7.2%. With the Reserve Bank of India (RBI) signaling an uptrend in the rate cycle and also a tightening of liquidity, banks have started...

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Expression of interest for IDBI Bank sale next month

The Centre will likely invite expression of interest for strategic disinvestment of IDBI Bank by end-July, a top government official said on Friday. The Department of Investment and Public Asset Management (Dipam), which held roadshows in the US in the last few days, will have a few more domestic roadshows before finalising the contours of the sale, the official said. “We may need one more round of discussion with the Reserve Bank of India on IDBI strategic sale. Thereafter, we will decide what will be the consortium structure in case of joint bids and merger conditions (if the winning bidder wants to merge IDBI Bank with another existing lender),” the official said. Besides banks, financial...

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Pass-through of rate hikes to lift bank margins sharply

EBLR is linked to the RBI's repo rate. The other system used by banks to determine the rates, Marginal Cost of Funds Based Lending Rate (MCLR), is decided internally by the banks based on their cost of funds including the prevalent deposit rates. from Banking/Finance-Industry-Economic Times https://ift.tt/zeraj...

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RBI tells small finance banks to focus on business models, governance

In a meeting with the heads of small finance banks (SFBs) on Friday, the Reserve Bank of India (RBI) advised them to pay close attention to their business models and governance, in the light of recent developments in the sector. The meeting was led by RBI deputy governors MK Jain and M Rajeshwar Rao. “SFBs were advised to continue to evolve in tune with the differentiated banking licence given to them with proportionate growth in their capital base,” the RBI said in a statement. Among other matters, asset quality concerns, including a viable portfolio mix and further strengthening of customer service and grievance redressal frameworks with commensurate information technology (IT) resilience,...

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Liquidity overhang may put a lid on deposit rates

The monetary policy committee’s rate hikes worth a cumulative 90 basis points (bps) may not immediately translate into higher returns for savers. The presence of a significant amount of liquidity in the system could mean that hikes in deposit rates will be deferred. However, some minor tweaks to deposit rates are already underway. Kotak Mahindra Bank on Thursday raised the interest rate on savings accounts with balances above Rs 50 lakh by 50 bps to 4% per annum. The lender also raised rates on fixed deposits with maturities of over 1 year by 10...

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HDFC, ICICI Bank raise retail lending rates after RBI policy, follow SBI, PNB; loans get this much costlier

HDFC (Housing Development Finance Corporation) and ICICI Bank have raised lending rates by up to 50 basis points (bps) days after the Reserve Bank of India increased the repo rate. HDFC and ICICI Bank’s move follows other lenders in recent days such as HDFC Bank, SBI (State Bank of India), and PNB (Punjab National Bank), which recently raised interest rates on loans by 35-50 bps. Earlier this week, the RBI’s MPC raised the key monetary policy rate by 50 bps to 4.9 per cent. HDFC said in a stock exchange filing Thursday it has raised retail lending rate on housing loans by 50 basis points (bps), with effect from June 10. “HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on...

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Shriram Transport Finance secures $250m long-term funding from DFC

Shriram Transport Finance Company (STFC), one of the largest commercial vehicle financers, and part of the Shriram Group, secured a long-term funding of $250 million from the US International Development Finance Corporation (DFC) of the US. The $250- million external commercial borrowing (ECB) is a fixed-rate 10-year loan under STFC’s social finance framework. The funding will enable STFC to further its financial inclusion mission. The funds raised from DFC will enable STFC to provide credit for the purchase of new and used vehicles throughout India. The proceeds from DFC can be used for vehicle finance for commercial purposes, alternate fuel-financing namely through CNG, LPG and electric vehicles...

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Banks take a cue from RBI, hike lending rates

These banks raised their respective external benchmark lending rates (EBLR) by 50 basis points (bps), matching the latest increase in the repo, or the rate at which RBI lends short-term funds to commercial banks. One basis point is 0.01 percentage point. from Banking/Finance-Industry-Economic Times https://ift.tt/7N8Pd...

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Banks raise loan rates day after RBI's repo hike

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/OHLvx...

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PSBs now look to move out of Hong Kong on bleak prospects

Out of the eight public sector banks operating in Hong Kong, four have already closed or are at different stages of closing. Three others are contemplating the future of their operations post-Covid. It is likely that the State Bank of India (SBI) will be the only public sector bank remaining in Hong Kong along with HDFC Bank and ICICI Bank. from Banking/Finance-Industry-Economic Times https://ift.tt/EmnUV...

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Banks to report borrowers not cooperating in forensic audits

Indian Banks' Association chief executive Sunil Mehta confirmed the development and said this will bring more discipline among the borrowers. "Today, based on various parameters, including early warning signals (EWS), banks do such audits to take proactive action," he said. from Banking/Finance-Industry-Economic Times https://ift.tt/FJUS7...

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Over 1.18 crore payment devices deployed across country till April: RBI data

Besides, 1,14,05,116 digital devices, including inter-operable QR code-based payments such as UPI QR, Bharat QR, were deployed under the scheme. from Banking/Finance-Industry-Economic Times https://ift.tt/fL8vE...

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RBI doubles home loan ceiling for co-op banks

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/tIL9F...

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Realty stocks rally on more exposure for co-op banks

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/PrzX7...

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Public-sector banks to firm up 3-year road maps under new initiative

Each public-sector bank will have to firm up a three-year road map based on its business priorities under a revamped reform initiative launched by finance minister Nirmala Sitharaman on Wednesday. EASENext, the latest and revamped version of the EASE (Enhanced Access and Service Excellence) reform programme for PSBs, will have two components: EASE 5.0, which is a common reforms agenda for all PSBs, and a bank-specific medium-term action plan. Under the EASE 5.0, state-run banks will continue to invest in new-age capabilities and deepen the on-going reforms to respond to evolving customer needs, changing competition and the technology environment, the Indian Banks’ Association, which has been...

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Linking credit cards to UPI to drive higher acceptance

The Reserve Bank of India said it will allow linking of credit cards to the UPI platforms. In the initial stage, only the RuPay credit cards will be linked to the UPI platform, the central bank said. The move will increase the acceptance infrastructure of credit cards as merchants can accept credit cards using UPI. While the linking of the unified payments interface (UPI) with RuPay credit cards is seen as an advantage by major stakeholders, more clarity will be needed on some of the operational aspects, industry people said. While the merchant discount rate (MDR) is levied by banks on merchants for card transactions on point-of-sale machines, MDR charges on UPI transactions is waived off. “Pricing...

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Yes Bank begins process to exit reconstruction scheme

Yes Bank on Wednesday said that it has initiated the process to form a new board as it exits from the reconstruction scheme devised for the rescue of the bank in 2020. The proposal for the constitution of a new board will be placed before the bank’s shareholders at its 18th annual general meeting (AGM) on July 15. The process was started on the recommendation from State Bank of India (SBI), the largest shareholder in Yes Bank. SBI has proposed that MD & CEO Prashant Kumar continue in his position for another three years, along with the names of eight new appointees to the board. Sunil Mehta, chairman, Yes Bank, said that by initiating the process of formation of the alternate board, Yes...

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Banks need to adopt customer-centric approach: Finance Minister

Speaking at the event virtually attended by heads of public sector banks (PSBs), Financial Services Secretary Sanjay Malhotra said all PSBs are now profitable and have stronger balance sheets, and it is imperative that they leverage this position of strength to significantly increase their competitiveness. from Banking/Finance-Industry-Economic Times https://ift.tt/piWXL...

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Home loan market will double, HDFC merger will help scale up business: Chairman Deepak Parekh

Parekh said that the home loan market in India is estimated at slightly over $ 300 billion, at a mortgage to GDP ratio of just 11% currently, but favourable conditions like rising income levels, improved affordability and fiscal support augur well for the demand for homes. from Banking/Finance-Industry-Economic Times https://ift.tt/VGLi7...

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PNB to focus on retail, MSMEs to drive loan growth

Punjab National Bank will focus on improving credit offtake in its retail and MSME segments as it expects these sectors to drive the loan growth in the current financial year. First of all, the bank will keep its focus on diversified credit growth as it is expected that the huge demand will erupt from the MSME and retail segments in FY23. With the expected pick-up in the credit growth, interest income may also see an uptick,” the bank said in its annual report for FY22. The bank’s retail credit grew 6.7% year-on-year to Rs 1.3 trillion in Q4FY22 while MSME advances rose 1% to Rs 1.2 trillion. The bank will also focus on improving its current account, savings account (CASA) ratio for higher profitability....

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Irdai eases capital requirement for PMJJBY to encourage more insurers to participate

This move will enable life insurers to offer more policies under the scheme, and provide financial security to the bottom of the pyramid of the Indian population through life insurance, Irdai said in a statement. The easing of capital requirements by Irdai will accelerate the penetration of life insurance in India and will support the life insurers in achieving the target set by the government. from Banking/Finance-Industry-Economic Times https://ift.tt/NChiB...

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World Bank cuts growth forecast to 7.5%

The World Bank on Tuesday cut India's GDP growth forecast for 2022-23 to 7.5% from the earlier estimate of 8%, citing the impact of high inflation, supply chain disruptions and geopolitical tensions. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/hbMVG...

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PSBs to conduct massive loan drive today

State-run banks will conduct a massive credit outreach programme in all districts of the country on Wednesday and will enrol customers for various official schemes, especially in insurance. The outreach programme is curated as part of a week-long celebration of the finance and corporate affairs ministry under the so-called Azadi Ka Amrit Mahotsav. It is also a part of the government’s efforts to ensure greater and easier credit flow, as the economy recovers from the damage caused by the pandemic. In October 2021, public-sector banks (PSBs) were directed to launch a similar outreach programme for a longer period in the build-up to Diwali to take advantage of a potential rise in credit demand...

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HDFC Bank hikes lending rates by 35 bps across tenures

HDFC Bank has hiked its marginal cost of funds-based lending rates (MCLRs) by 35 basis points (bps) across tenures. The new rates come into effect on Tuesday. MCLRs on loans from India’s largest private lender will now range between 7.5% and 8.05%. The one-year MCLR at HDFC Bank stands at 7.85%, against State Bank of India (SBI)’s 7.2% and Punjab National Bank (PNB)’s 7.4%. PNB, ICICI Bank and Housing Development Finance Corporation (HDFC) went for a fresh round of hikes in lending rates in the previous week. Most lenders raised rates after the monetary policy committee (MPC) had hiked the repo rate by 40 bps on May 4. The MPC’s June meeting is being held this week, with the policy statement...

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HDFC Bank hikes MCLR by 35 basis points

For borrowers, the increased rate will lead to costlier EMIs from The HinduBusinessLine - Money & Banking https://ift.tt/ta4Mb...

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HDFC Bank hikes lending rates, loans from India’s largest private lender to cost this much now across tenures

HDFC Bank has hiked its marginal cost of funds-based lending rates (MCLRs) by 35 basis points across tenures, even as the market awaits another imminent RBI policy rate hike later this week. The new rates will be effective from today (Tuesday, 7 June 2022). MCLRs on loans from India’s largest private lender will now range between 7.5% and 8.05%. The one-year MCLR at HDFC Bank stands at 7.85%, as against SBI’s 7.2% and PNB’s 7.4%. Punjab National Bank, ICICI Bank and Housing Development Finance Corporation (HDFC) went for a fresh round of hikes in lending rates last week. Most lenders had raised rates after the monetary policy committee (MPC) hiked the repo rate by 40 bps on May 4. The MPC’s...

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PM Modi to banks: Focus on bigger role in global business

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/Vph7i...

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RBI specifies provisioning norms for NBFC-UL

The Reserve Bank of India on Monday specified the provisioning that non-banking financial companies (NBFCs), classified as the upper layer, must maintain for some categories of standard assets. According to the regulations, these NBFCs will need to make provision of 2% on standard assets for housing loans disbursed at teaser rates. The new norms on standard asset provisioning will come into effect from October 1. Currently, systemically important NBFCs make standard asset provision at a flat rate of 0.4%. The RBI introduced provisioning for standard assets after 2011 and by March 2015, the provisioning needed to be 0.25% of outstanding assets. Teaser loans attract lower interest rates in initial...

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Need to make Indian banks, currency important part of international trade, says PM Modi

Launching a special series of coins that are ‘visually-impaired friendly’, Prime Minister Narendra Modi on Monday said it is necessary to focus on making domestic banks and currency an important part of the international supply chain and trade. Inaugurating the week-long events by the ministry of finance and corporate affairs as part of ‘Azadi Ka Amrit Mahotsav (AKAM)’, to celebrate 75 years of independence, Modi released a special series of Re 1, Rs 2, 5, 10 and 20 coins. The coins will have the ‘AKAM’ design but are not commemorative coins and will be part of the circulation. Modi also launched the Jan Samarth portal — a credit-linked portal of 13 government schemes. “Earlier it was the responsibility...

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Banks switch to overnight window to park surplus funds

With an improvement in the credit growth, banks have been opting to park their surplus funds under the Reserve Bank of India (RBI)’s standing deposit facility (SDF), which is an overnight window, rather than 14-day variable rate reverse repo (VRRR) auctions. As the 50-basis-point (bps) hike in the cash reserve ratio (CRR) kicked in on May 21, surplus liquidity in the system has been steadily falling. The June 3 VRRR auction attracted offers worth Rs 64,965 crore, compared with offers worth Rs 2.72 trillion received in the auction held on May 20. The notified amount in both the auctions was Rs 4 trillion. Economists FE spoke to said given the current situation in credit markets, it makes more...

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India's economic growth to be supported by fiscal spending: FM

Participating virtually in the second BRICS Finance Ministers and Central Bank Governors (FMCBG) meeting under the China chairmanship, Sitharaman said BRICS should continue to serve as a platform to engage in dialogues and facilitate exchange of experiences, concerns and ideas for rebuilding a sustainable and inclusive growth trajectory. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/aJl21...

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Banks see pick-up in capex loans

With an uptick in demand for project finance from late last year, bankers believe need for long-term funds should rise by anywhere between 12-15% this year. Bank credit deployed in the infrastructure segment rose 10.2% year-on-year in April 2022, with roads, telecommunications and power leading the pack. The outstanding credit to this space, towards the end of March was Rs 12 trillion, according to Reserve Bank of India (RBI). Consequently, banks are now gearing up to meet demand for infrastructure projects in FY23, which they expect will be an even better year for the segment. Much of the demand in the infra segment is coming from large conglomerates in segments like roads, ports, airports,...

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General insurers urge IRDAI for mandatory KYC of customers

At present, sharing KCY details is voluntary while purchasing a general insurance product from The HinduBusinessLine - Money & Banking https://ift.tt/JzLHc...

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Bank of Baroda to set up mid-corporate branches to tap opportunities

To tap the growing mid-corporate segment, the bank plans to strengthen its operating model, branch network and credit decision-making process from The HinduBusinessLine - Money & Banking https://ift.tt/uZw38...

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8 things you should know about A Manimekhalai, new Union Bank of India CEO

The government appointed A Manimekhalai has extensive experience as Director on the Board of five other companies namely Canbank Factors Ltd, Canbank Computer Services Ltd., Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd., General lnsurance Corporation of India, lndia Infrastructure Finance Company Ltd. and Trustee, Canara Robeco Asset Management Co. from Banking/Finance-Industry-Economic Times https://ift.tt/yneQ4...

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TVS Credit aims 25% loan growth this fiscal

The company closed FY22 with a Rs 13,911 crore balance sheet and expects 25-30 per cent growth in the current fiscal, TVS Credit CEO Venkatraman Gopalakrishnan said. from Banking/Finance-Industry-Economic Times https://ift.tt/Mvt8k...

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FPIs outflow continues for 8th straight month; pull out nearly ₹40,000-cr from equities in May

Going ahead, FPI flows will remain volatile in the emerging markets on account of rising geo-political risk, says an expert from The HinduBusinessLine - Money & Banking https://ift.tt/edTmu...

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Four of top-10 firms add Rs 2.31 lakh cr in m-cap; Reliance lead gainer

While TCS, Infosys and ICICI Bank were the other gainers from the top-10 pack, HDFC Bank, HUL, LIC, SBI, HDFC and Bharti Airtel faced erosion from their market valuation. Their cumulative losses stood at Rs 68,140.72 crore. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/1fzop...

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