Govt declares ICICI Bank’s IT resources as ‘critical information infrastructure

The government has declared the IT resources of ICICI Bank as ‘critical information infrastructure’, implying any harm to it can have an impact on national security and any unauthorised person accessing it may be jailed for up to 10 years, according to an official notification. The Ministry of Electronics and IT (MeitY), in the notification dated June 16, declared the IT resources of the private sector lender as critical infrastructure under Section 70 of the IT Act, 2000. “The Central Government hereby declares the computer resources relating to the Core Banking Solution, Real Time Gross Settlement and National Electronic Fund Transfer comprising Structured Financial Messaging Server, being...

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Moody's upgrades baseline credit assessments of ICICI Bank, Axis Bank

The upgrade of the baseline credit assessments does not result in any change in the deposit ratings because these are already at the same level as the India sovereign rating (Baa3 stable), Moody's said in a statement on Friday. from Banking/Finance-Industry-Economic Times https://ift.tt/RFOL3...

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Finance minister Nirmala Sitharaman to review large NPAs, asset quality of public-sector banks on June 20

Finance minister Nirmala Sitharaman will meet chiefs of public-sector banks (PSBs) on June 20 here to review large non-performing assets of over Rs 100 crore each and their overall asset quality, sources told FE. As part of the broader review of the performance of various state-run lenders, Sitharaman will also take stock of credit flow to critical sectors of the economy and get briefed on their capital raising plans. She will also review the progress of various financial inclusion and other schemes of the govenrment, including those announced as part of the Atmanirbhar Bharat initiative. The meeting, convened by the department of financial services, comes at a time when the government wants...

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Holding back hikes saved economy: RBI governor Shaktikanta Das

Reserve Bank of India (RBI) governor Shaktikanta Das has said that pursuing a 4% inflation target during the pandemic would have been disastrous for the economy, and it would have taken India years to come out of the damage. Das said the decision to tolerate inflation up to 6% was a conscious one and done keeping in mind the legal mandate on the RBI to ensure growth. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/igZM9...

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Vision Document: RBI sees digital payment transactions trebling by 2025

The number of digital payment transactions should treble by 2025 and the Unified Payments Interface (UPI) should register an average annualised growth of 50% by then, according to the Reserve Bank of India (RBI). The central bank expects the Immediate Payment Service (IMPS) and National Electronic Funds Transfer (NEFT) to grow at an annual average of 20%. These are among 10 specific outcomes to be achieved by India’s payments industry over the next three years as part of its Payments Vision document for 2025, the central bank said on Friday. The vision document took note of the proliferation of Buy Now, Pay Later (BNPL) services which, it said, has developed into a new payment mode alongside...

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FE Modern BFSI Summit 2022: RBI not in favour of banks floating digital-only arms

The Reserve Bank of India (RBI) is not in favour of existing banks launching digital-only banks as the model carries some risks, Governor Shaktikanta Das said on Friday. The central bank has chosen to not accept suggestions on such arrangements, he added. “We don’t have a separate regulatory framework for what is called a digital bank,” Das said, speaking at financialexpress.com’s Modern BFSI Summit. “I feel there is no need for any bank to set up a separate digital bank, to have a sort of parallel entity in the same business. What they can achieve by having a parallel entity they can very well achieve as a part of their own organisation. There were some suggestions which came, but we felt that...

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Equitas Small Finance Bank to launch exclusive savings account for kids

ENJOI account holders will also have access to exclusive deals from ed-techs and online learning providers from The HinduBusinessLine - Money & Banking https://ift.tt/OUZR2...

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RBI allows Mastercard to add new customers again

The Reserve Bank of India (RBI) has lifted the ban on Mastercard from onboarding new customers. The payment giant was barred from issuing fresh cards on July 14, 2021 for non-compliance with RBI’s regulations on localised storage of payment system data. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/qkw5s...

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Provisioning by banks: RBI considering expected credit loss income method, says RBI deputy governor M Rajeshwar Rao

The Reserve Bank of India is considering a mandate under which banks will be required to switch to the expected credit loss (ECL) income while making provisions, rather than an incurred loss method, in order to better manage the asset quality, Reserve Bank of India deputy governor M Rajeshwar Rao said. Under this system, bigger non-banking financial companies are required to consider the credit loss provision on a forward-looking basis. Currently, banks are required to make loan loss provisions under the incurred loss model, where the provision is made after the occurrence of default. However, loan default itself being an indicator of stress, the RBI is in the process of issuing a discussion...

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RBI Governor to inaugurate FE’s BFSI meet today; CEA, industry leaders to share perspective

Reserve Bank of India Governor Shaktikanta Das will inaugurate the FE Modern BFSI Summit today (June 17). The unique conference, being organised by FE.com, will see the coming together of the best and the brightest minds from the banking, financial services and insurance arena. What also adds weight to the event is the keynote address by Anantha Nageswaran, chief economic advisor, government of India. Ajay Piramal, chairman, Piramal Group, and heads of India’s leading banks and financial institutions will also be speaking at the day-long event. Some of the other leading names from the industry attending the summit include Amitabh Rajan, Chairman, Reserve Bank of India (Services Board), Dinesh...

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Panel proposes timelines for approving resolution plans

Insolvency Law Committee, headed by corporate affairs secretary Rajesh Verma, has suggested measures including introduction of timelines for approval or rejection of resolution plans and use of digital databases for claim submission from creditors. from Banking/Finance-Industry-Economic Times https://ift.tt/Q3nXe...

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Many resolution professionals under scanner for misconduct

People with direct knowledge of the matter said some of the RPs were allegedly delaying the resolution process and instead pushing for liquidation of the company since the latter would bring them higher fees. from Banking/Finance-Industry-Economic Times https://ift.tt/Kmwat...

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Allow app pings instead of SMS: Banks

Several banks are making a case for an alternative to SMS alerts due to the growing costs and security risks that they pose. Private lenders are calling for alternatives such as app notifications and password generators to replace the text alerts that banks have to mandatorily send out to customers. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/KMtQd...

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Fed rolls out biggest rate hike since 1994, flags slowing economy

Fed cuts growth projection, sees rising unemployment from The HinduBusinessLine - Money & Banking https://ift.tt/5BETA...

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HDFC to sell four large stressed accounts before merger

BSE-listed Siti Networks is the biggest of the four accounts in this portfolio, accounting for ₹198.5 crore. The other three accounts are those of MEP Infrastructure Developers, with a principal loan of ₹125 crore, Hotel Horizon at ₹163 crore, and Sterling Urban Development at ₹90 crore. from Banking/Finance-Industry-Economic Times https://ift.tt/QVB1n...

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Stocks hold gains after Federal Reserve hikes rates to fight inflation

The increase of three-quarters of a percentage point was three times as big as the central bank usually makes. The Fed signaled more increases are on the way as it tries to tackle the worst inflation in four decades. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/NdAIQ...

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Credit growth will drive liquidity normalisation: Dinesh Kumar Khara, chairman, State Bank of India

Demand for credit will lead to excess liquidity being deployed as loans in the normal course and there may be no further hikes in the cash reserve ratio (CRR), State Bank of India (SBI) chairman Dinesh Kumar Khara told Shritama Bose. The country’s largest lender will take its Yono app to customers of all banks, with payments and analytics playing a major role in the process, he added. Edited excerpts: How do you see interest rates panning out at this stage in the cycle? It has a direct correlation with the inflation numbers which are coming in, and also the policy announcements by the Reserve Bank of India. The inflation number has come down from 7.79% to 7.04%. That is essentially a reflection...

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Indian Bank makes pregnant women 'temporarily unfit' for joining

As per the guidelines and criteria for physical fitness for pre-employment recently issued by Indian Bank, candidates would be re-examined six weeks after delivery for the appointment of selected post. from Banking/Finance-Industry-Economic Times https://ift.tt/6vxBm...

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Non-govt a/c additions to double to 20L in NPS in FY23

The Pension Fund Regulatory and Development Authority expects enrolments from non-government subscribers to the National Pension System (NPS) to double from 9.7 lakh in March this year to 20 lakh in March 2023 with growth having reaching an inflection point in March 2020. It also granted approval to Max Life Insurance, Tata Asset Management and Axis Bank to promote pension management firms. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/o28hu...

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RBI flags lack of due diligence in bank funding to govt-owned entities

The Reserve Bank of India (RBI) on Tuesday flagged instances of poor due diligence by banks while funding government-owned entities. As a corrective measure, the regulator has asked banks to compile comprehensive reports on the status of compliance with a set of instructions on the criteria for financing within three months. We have come across instances where banks have not been strictly complying with our extant instructions on assessment of commercial viability, ascertainment of revenue streams for debt servicing obligations and monitoring of end use of funds in respect of their financing of infrastructure/ housing projects of government-owned entities,” the RBI said in a notification. Banks...

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Govt appoints 4 non-official directors on RBI central board

The government on Tuesday appointed Anand Mahindra, Venu Srinivasan, Pankaj Ramanbhai Patel and Ravindra Dholakia as part-time non-official directors on the central board of Reserve Bank of India (RBI). The appointment will remain valid for four years with effect from June 14, the central bank said in a press release. Anand Mahindra is chairman of the Mahindra Group, non-executive chairman of Mahindra & Mahindra and Tech Mahindra. Venu Srinivasan is chairman emeritus of two-wheeler maker TVS Motor Company. Pankaj Patel is chairman and managing director of Zydus Lifesciences while Ravindra Dholakia is the former member of the Monetary Policy Committee. With the appointments, the RBI’s central...

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RBI: Banks violating government entity lending guidelines

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

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New entity with wider mandate to replace BBB

The government is planning to introduce a new entity in place of the Banks Board Bureau (BBB), with a wider and more legally tenable mandate, to recommend candidates for appointments to senior management-level posts in state-run banks, insurance companies and other financial institutions, sources told FE. “The work is going on at a fast pace. But it’s taking a bit of time. The government is seized of the matter and a decision will be made soon,” an official source said. As FE had reported last month, the extended term of the BBB members ended on April 10 and the government was contemplating a revamped mechanism in its place. Another source said the new entity will consist of some of the current...

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NBFC borrowing costs seen rising 85-105 bps: Crisil

With the Reserve Bank of India (RBI) raising policy rates two times in just over a month, borrowing costs for non-banking financial companies (NBFCs) are seen rising by 85-105 basis points in the current financial year, Crisil Ratings said in a report. While NBFCs should be able to pass on higher rates to home loan borrowers since lending rates are typically floating in nature, they will be unable to pass on entire borrowing costs due to competition from banks, Crisil said. Other segments such as vehicle finance and MSME financing typically have fixed-rate loans, so only new loans would be charged at higher interest rates. NBFCs are likely to face borrowing cost of 7.2%-7.4% in FY23, compared...

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IDBI Bank raises interest rates on retail term deposits by up to 25 bps

IDBI Bank on Tuesday said it has raised interest rates by up to 25 basis points (bps) on retail term deposits of less than Rs 2 crore. The revised rates would be applicable across various tenors for domestic term deposits, non-resident ordinary (NRO) and non-resident external (NRE) term deposits, effective June 15, a release said. The lender has increased the interest rate by 25 basis points to 4 per cent from 3.75 per cent on retail term deposits maturing between 91 days and six months. For fixed deposits maturing in 3 years to less than 5 years, the rate has been hiked by 10 bps to 5.60 per cent, compared to 5.50 per cent earlier. Retail term deposits with a maturity of more than 5 years and...

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Piramal Alternatives plans to raise $1 billion

Multiple people familiar with the fundraising told ET that the proceeds will be deployed to meet the capital needs of local companies seeking funds through a mix of either debt and equity, or through customised financing options. from Banking/Finance-Industry-Economic Times https://ift.tt/1UbHy...

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Sensex crashes 1,457 points; Nifty settles at 15,774: Top reasons

Global rout in stock markets dragged domestic indices lower on Monday as fears over inflation and the related response of central banks made investors jittery. The 30-share BSE index crashed 1,457 points or 2.68 per cent to close at 52,847; while the broader NSE Nifty settled 427 points or 2.64 per cent lower at 15,774. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/ta9cl...

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'Compelled by circumstances': some banks forecast 75bp Fed hike

Investment banks have ramped up projections for US interest rate rises following a hotter-than-expected inflation reading, with several now forecasting a 75-basis-point hike this week. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/5hIcz...

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NACH auto debit transactions: Bounce rates at near three-year low in May 2022

The bounce rate was at 29 per cent in volume terms during the month from The HinduBusinessLine - Money & Banking https://ift.tt/2aEV7...

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Mutual funds witness record surges in two years as pandemic instils financial discipline

Covid-19 lockdowns and low-interest rates have encouraged investors to invest more in mutual funds. from Banking/Finance-Industry-Economic Times https://ift.tt/RDxwp...

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Bitcoin tumbles to 18-month low as US inflation impact spreads

The world’s largest digital token tumbled as much as 8.9 per cent to $24,903.49—its lowest since December 2020 from The HinduBusinessLine - Money & Banking https://ift.tt/x3JP9...

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Bad bank AMC hits regulatory hurdle; transfer of bad loans delayed

The Reserve Bank of India (RBI) has raised concerns over the lack of clarity on the regulatory oversight of an asset management company (AMC) that was proposed to be set up under the overarching structure of the National Asset Reconstruction Company Ltd (NARCL), or the so-called bad bank, people familiar with the matter told FE. This, coupled with some other operational issues, has delayed the transfer of large bad loans of about Rs 50,000 crore to the NARCL in the first phase from the initial targeted deadline of March 2022. “The RBI has asked while it will have regulatory/supervisory role over the NARCL, whom is this AMC accountable to? It’s a valid question and the matter is expected to be...

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IRDAI's new norms to prompt insurers to launch innovative policies swiftly: Experts

The Insurance Regulatory and Development Authority of India (IRDAI) last week extended the 'use and file' procedure for most of the life insurance products, thereby allowing insurers to launch new products without prior approval of the regulator. from Banking/Finance-Industry-Economic Times https://ift.tt/TAb6I...

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Bankers hail RBI's monetary policy focus on taming inflation

SBI chief said that enabling more headroom for urban and rural cooperative banks to finance the housing sector will bring about a level-playing field in the cooperatives space, while linking Rupay credit cards to UPI will add more avenues for growth and financial inclusion and convenience to customers. from Banking/Finance-Industry-Economic Times https://ift.tt/R20dX...

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RBI approves appointment of R Subramaniakumar as MD & CEO of RBL Bank

Subramaniakumar is a veteran banker with over 40 years of experience from The HinduBusinessLine - Money & Banking https://ift.tt/gbIJc...

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DHFL administrator R Subramaniakumar is RBL Bank chief

The Reserve Bank of India (RBI) has cleared the appointment of R Subramaniakumar as managing director and chief executive officer of RBL Bank for a period of three years, the lender said on Saturday. Subramaniakumar has earlier overseen the insolvency process of Dewan Housing Finance Corporation (DHFL) in his capacity as administrator. “Please note that a meeting of the board of directors of the bank will be convened in due course upon the completion of requisite formalities, inter alia to approve the appointment of Mr R Subramaniakumar as an additional director and as the managing director & CEO of the bank and the approval of the shareholders shall be obtained thereafter as per the applicable...

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Banker to 467 million Indians says loan demand is bouncing back

The rising demand for loans means SBI will have to shore up its capital adequacy ratio, since it is hovering at less than two percentage points over the minimum regulatory requirement. The bank’s overall capital buffer of 13.8% is the lowest among the top lenders in the country. from Banking/Finance-Industry-Economic Times https://ift.tt/4aVs2...

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RBI names new RBL Bank CEO

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/c5aRg...

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DHFL administrator R Subramaniakumar is RBL Bank chief

The Reserve Bank of India (RBI) has cleared the appointment of R Subramaniakumar as managing director and chief executive officer of RBL Bank for a period of three years, the lender said on Saturday. Subramaniakumar has earlier overseen the insolvency process of Dewan Housing Finance Corporation (DHFL) in his capacity as administrator. “Please note that a meeting of the board of directors of the bank will be convened in due course upon the completion of requisite formalities, inter alia to approve the appointment of Mr R Subramaniakumar as an additional director and as the managing director & CEO of the bank and the approval of the shareholders shall be obtained thereafter as per the applicable...

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