Banks Board Bureau offered mixed results, task cut out for new body

The Banks Board Bureau (BBB), the head-hunter for key executive positions at state-run banks and financial institutions that is set to be replaced with a new entity, had its first brush with controversy in 2018, just two years after its inception in April 2016. Highlighting its work, a BBB report said: “The Bureau, as a body of experts on public-sector banking, would be able to provide greater utility to the finance minister on matters relating to the governance and performance of PSBs (public-sector banks), if there were to be greater organic linkage and dialogue with the finance ministry.” It also suggested that a request for a meeting with then finance minister Arun Jaitley was pending for...

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Financial Services Institution Bureau: New entity with wider mandate to replace BBB

Ending uncertainties over crucial appointments to state-run banks, general insurers and other financial institutions, the government has decided to set up the Financial Services Institution Bureau (FSIB) with a wider mandate to replace the Banks Board Bureau (BBB). The BBB, which was entrusted with the task of selecting candidates for appointments to the senior management-level posts, has remained practically dysfunctional after the term of its chairman Bhanu Pratap Sharma and members ended on April 10. The government was forced to replace the BBB with a new entity after the Delhi High Court had last year ruled that the BBB couldn’t select the general managers and directors of state-run general...

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RBI revises norms on banknote authentication, sorting

The Reserve Bank of India (RBI) on Friday issued guidelines directing banks to test their banknote sorting machines on a quarterly basis. The central bank revised the existing guidelines for authentication and sorting following introduction of the new series banknotes. “In the backdrop of introduction of the new series banknotes, these parameters have been reviewed and a revised set of guidelines are enclosed for implementation,” the central bank said. Currently, the RBI issues banknotes in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2000, according to information in its annual report for 2021-22. In value terms, the share of Rs 500 and Rs 2000 banknotes together...

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Report on benchmarking payment systems released: Payments acceptance infra must be improved, says RBI

Despite India’s leadership position in large-value and fast payments systems, there is room for improvement in the payments acceptance infrastructure, the Reserve Bank of India (RBI) said in a report. Released on Friday, the report on benchmarking India’s payment systems provides a comparative position of the payments ecosystem in India relative to other major countries. The benchmarking exercise undertaken with respect to the position in 2020 revealed that there is a need to enhance the spread of ATMs and point of sale (PoS) terminals. Although the number of persons served by a PoS terminal improved to 296 people in 2020 from 426 people per terminal in 2017, the figure is still the highest...

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FSIB sole entity for bank board appointments

FSIB will replace Banks Board Bureau. The Appointments Committee of the Cabinet (ACC) has asked the Department of Financial Services to carry out necessary modifications in the Nationalised Banks (Management and Miscellaneous Provisions) Scheme of 1970/1980 with the approval of finance minister to effect this change. from Banking/Finance-Industry-Economic Times https://ift.tt/DbeGQ...

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UPI transactions shrink marginally in June vis-a-vis May

Unified Payments Interface (UPI) transactions shrank in terms of both volume and value in June as compared to May, showed data released by the National Payments Corporation of India (NPCI).  The volume of UPI transactions fell to 5.86 billion in June from 5.96 billion in May, and the value of transactions declined to Rs 10.14 trillion from Rs 10.41 trillion in the previous month. In the last few years, UPI has emerged as the most popular mode of retail payment channels, eating into the share of card-based transactions. In a recent report, Boston Consulting Group (BCG) and PhonePe pointed out that UPI transaction volumes have grown nine-fold in the past three years to 46 billion transactions...

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Net interest margins to be under pressure for a quarter: HDFC chairman Deepak Parekh

HDFC will hold a separate meeting for shareholders’ approval for merging the corporation with HDFC Bank. Speaking at the annual general meeting in Mumbai on Thursday, HDFC chairman Deepak Parekh said shareholders should show patience and avoid raising questions regarding the merger at the special meeting to be held subsequently. The merger, which was announced in early April, requires a series of approvals from the banking and insurance regulators before it goes to the National Company Law Tribunal and shareholders, he said. Parekh said the largest pure-play home financier may face a compression of its net interest margin (NIM) in the short term, as it is unable to immediately pass on the impact...

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Gold loans drop in May shows RBI data

Loans taken against gold jewellery witnessed a decline in May, indicating an improvement in the overall economy. Personal loans taken by keeping gold as collateral declined 2.9% in May   even as all other categories of personal loan posted improved, data released by the Reserve Bank of India showed. Banks issued loans of up to Rs 73,752 crore during the month against gold jewellery. Moreover, loans issued against gold had jumped 126% during the second wave of the pandemic that is between May 2020 and May 2021.        Home and vehicle loans, which form the bulk of the personal loans, improved 14% each. Banks issued home loans of up to Rs 17 trillion and...

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NBFCs less likely to face capital adequacy shocks: RBI

The majority of non-banking finance companies (NBFC) are well capitalised and are less likely to face capital adequacy risks going ahead, the Reserve Bank of India (RBI) said in its Financial Stability Report (FSR). The asset quality of the sector has significantly improved and NBFCs are less likely to face capital adequacy shocks even in a high-risk scenario. In the baseline scenario, gross non-performing assets of the NBFC sector is likely to increase to 6.73%, following which the capital adequacy ratio (CAR) will fall 50 basis points (bps) to 23.83%, according to RBI estimates. However, the CAR of 12 NBFCs will fall below the required 15% levels. To examine the impact of credit risk shocks...

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Gift cards, reward points not virtual digital assets, says CBDT

This will ensure that these products do not face the tax applicable on VDAs such as cryptocurrencies and non-fungible tokens (NFTs), introduced this budget. from Banking/Finance-Industry-Economic Times https://ift.tt/efVE4...

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Regulators must be mindful of BigTech interlinkages with financial institutions: Financial Stability Report

As large technology companies, often termed as ‘BigTech’, scale up and turn into “too-critical to fail” institutions, regulators must be mindful of their interlinkages with the financial system, the Reserve Bank of India (RBI) said in the June 2022 Financial Stability Report (FSR). “BigTechs can scale up rapidly and pose risks to financial stability, which can arise from increased disintermediation of incumbent institutions. Moreover, complex intertwined operational linkages between BigTech firms and financial institutions could lead to concentration and contagion risks and issues relating to potential anti-competitive behaviour,” the RBI said in the report. The regulator has earlier taken umbrage...

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Hardening yields to trigger mark-to-market losses for banks: RBI report

“This could potentially reduce their lending and adversely affect overall economic activity, especially in countries with high fiscal vulnerability and less capitalised banking systems,” said the report. from Banking/Finance-Industry-Economic Times https://ift.tt/g86dT...

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Determining of embedded value likely to be completed by July 15: LIC

Insurance behemoth Life Insurance Corporation on Wednesday said the exercise of determining its embedded value as of March 2022 is on’ and is likely to be completed by July 15. It is informed that the exercise of determining the Indian Embedded Value (IEV) as on March 31, 2022, may take some more time to get completed, LIC said in a statement. “Once completed and after requisite approvals, the required public disclosures of the same, will be made in this regard, by LIC of India. As of now, we expect the required public disclosures, to be made by July 15,” it said. The Embedded Value (EV) is a measure of the consolidated value of shareholders’ interest in the life insurance business. It represents...

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Determining of embedded value likely to be completed by July 15: LIC

The embedded value is a measure of the consolidated value of shareholders' interest in the life insurance business from The HinduBusinessLine - Money & Banking https://ift.tt/FiTtB...

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Satisfied with Citi card biz, says Axis Bk

Axis Bank has said that it is confident about the quality of Citibank’s credit card portfolio and the persistency & spending were satisfactory. Speaking to newspersons here, Axis Bank head (cards & payments) Sanjeev Moghe said that he was confident that the integration would be completed within the indicated timeframe. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/6GVrQ...

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No concerns on Citi cards attrition: Axis Bank

The acquisition of Citi India’s consumer businesses is on track and Axis Bank has no concerns around attrition of card customers or the asset quality of the card portfolio, a senior bank executive said on Wednesday. Sanjeev Moghe, president & head —cards and payments, Axis Bank, said that the bank is confident of the portfolio on which it has done due diligence and the price that it has bid on. “We are pretty confident also that we’ll be able to deliver value on the price that we have paid for. Those parameters don’t change,” he said. Moghe said that once the statutory approvals for the deal come in, the process of integration will pick up speed and will be completed over the next 18-24...

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NARCL seeks to avert licence renewal with bid for one account

India’s bad bank is counting on its sole bid for a non-performing asset (NPA) to avert renewal of its asset reconstruction company (ARC) licence, which is valid till June 30. The National Asset Reconstruction Company (NARCL) has written to the Reserve Bank of India (RBI) to consider its bid for loans of Rainbow Papers as a mark of operationalisation of the bad bank, people aware of the matter told FE. NARCL was registered in July 2021. Earlier, the ARC had missed its March 31 deadline to complete acquisition of 15 assets worth Rs 50,000 crore from banks. “NARCL has advised the RBI that since they have made the anchor bid for one account within the June 30 deadline, it should count as the beginning...

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Banks stare at huge MTM losses as yields rise

Banks are staring at significant mark-to-market losses in April-June quarter as some of them approached the Reserve Bank of India seeking a one-off relaxation following rises in bond yields. from Banking/Finance-Industry-Economic Times https://ift.tt/SOkBY...

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Five reasons why you must invest in equity funds, NOW?

Amidst the volatilities in the market, here are the five best reasons, why you should invest in the markets now from Banking/Finance-Industry-Economic Times https://ift.tt/W1DtJ...

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Why investors should follow a balanced investment strategy like Systematic Transfer Plan (STP) from Debt to Equity?

As geopolitical tensions prevail, Investors should with switch from debt funds to equity markets with a balanced investment strategy like Systematic Transfer Plan (STP) from Banking/Finance-Industry-Economic Times https://ift.tt/vFYLf...

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Government mulls entire stake sale in two banks to woo investors

The government is open to the idea of offloading its entire equity in the two state-run banks that are proposed to be privatised, instead of the initial plan to retain a 26% stake, to garner greater interest from potential investors, a senior official told FE. NITI Aayog has already recommended the privatisation of Indian Overseas Bank (IOB) and Central Bank of India (CBI), although the government is yet to formally name the sell-off candidates. The government holds 96.38% in IOB and 93.08% in CBI. The Banking Laws (Amendment) Bill, which is expected to be introduced in the monsoon session of Parliament to facilitate privatisation, may propose that the minimum government holding in the select...

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PSBs seek relief on provisioning for treasury losses in Q1FY23

Some public sector banks (PSBs), including State Bank of India (SBI), have approached the Reserve Bank of India (RBI) seeking relief on provisioning requirements against losses on their treasury portfolio incurred during the current quarter. Banks have requested RBI to allow them to spread the required provisioning against such losses through the four quarters of FY23, people aware of the developments said. Lenders have approached RBI officials on a one-on-one basis over the last few days. “We have spoken to the chief general manager (CGM) concerned,...

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Carlyle to pick up minority stake in Varmora for USD 90-95 million

Funding to the nearly three-decades-old, Ahmedabad-based company will help accelerate product innovation, channel partnerships, brand building and also acquisitions, the statement added. At present, it portfolio consists of premium tiles, faucets and sanitaryware, which are sold through over 200 exclusive brand outlets in India and globally. from Banking/Finance-Industry-Economic Times https://ift.tt/drfN0...

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'Pre-packed labelled food items to attract GST'

Pre-packed and labelled food items like meat, fish, curd, paneer and honey will now attract GST, a tax that will also be levied on the fee that banks charge for the issue of cheques. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/iOjG5...

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Infrastructure push, PLI to drive up working capital demand in India: Standard Chartered Bank’s Michael Spiegel

Demand for working capital is set to rise in India as a result of the government’s infrastructure push and the production linked incentive (PLI) scheme, Michael Spiegel, global head, transaction banking, Standard Chartered Bank, told Shritama Bose. India is an important market for the bank and it will be the first one to fully implement the bank’s new payments infrastructure, he added. Edited excerpts: To what extent has the war affected the business? We have seen less of an impact of this war-related supply chain disruption than we have from the general supply chain disruptions. So Covid has had much more of an impact for our clients, and that is due to the fact that our bank’s footprint is...

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Worst days over for South Indian Bank, slippages to fall, says MD Murali Ramakrishnan

“We are no more vulnerable as we were at some point of time when our capital adequacy was very low, provision coverage ratio was low, bad loan ratios were high, skill levels were low. All those are behind us. We have gained stability but yes, there is scope for further improvement,” Ramakrishnan said. from Banking/Finance-Industry-Economic Times https://ift.tt/rQvzC...

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Acemoney launches offline UPI, wearable ATM cards

They are gadgets designed as key chains, rings that enable people to carry out cashless transactions without ATM cards, phones from The HinduBusinessLine - Money & Banking https://ift.tt/WULJ8...

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Bajaj Finserv’s HackRx hosts 1,000+ students to solve business problems; offers chance to win jobs, money

Bajaj Finserv Ltd organised the third edition of its hackathon, HackRx. The annual event brings together students across India who compete against the brightest minds, and are mentored by top leaders from the industry for developing business solutions. The third edition of the two-day hackathon in Pune saw registrations by over 1,000 students. It is now set to host over 120 college students who will showcase solutions to a real time business problem. The last two years had witnessed participation from over 3,000 students from India. This year’s event consisted of ten problem statements ranging from setting up in-app nudges, SNAP product co-purchasing networks to hospitals centralised reviews,...

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Pvt banks treble share in small biz loan to 70%

Private sector banks more than tripled their share in loans sanctioned to the micro, small and medium enterprise (MSME) sector to 69.8% in FY22 from the previous year’s levels. Earlier, private banks had almost halved their share in FY21 to 18.2% from 33.6% in FY20. Public sector banks, which accounted for 48% of all loan sanctions to MSMEs in FY20, increased the share to 73% in FY21. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/frnlq...

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SBI gets RBI nod to set up operations support subsidiary

Aimed at addressing the concern relating to the cost to income ratio, says Chairman Dinesh Kumar Khara from The HinduBusinessLine - Money & Banking https://ift.tt/mbCPF...

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Pvt banks more than triple their share in loans sanctioned to MSMEs

Many private sector banks started cutting their exposure to small businesses when the pandemic broke out but with government guarantees coming in and stress turning out to be less than expected, they sharply increased their market share in FY22. from Banking/Finance-Industry-Economic Times https://ift.tt/qzM2b...

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Committee of Creditors extends timeline for Reliance Captial resolution by two months to November

This is the second extension granted by the lenders for the completion of Reliance Capital’s resolution process from The HinduBusinessLine - Money & Banking https://ift.tt/LKvWa...

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Finance ministry asks banks to explore fintech partnership

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

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FPIs' pull out Rs 46,000 cr from Indian equities in June so far

Foreign investors continue to desert Indian equity markets and pulled out close to Rs 46,000 crore so far this month following monetary policy tightening by the Reserve Bank and US Federal Reserve, high oil prices and volatile rupee. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/R0FdH...

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AMCs prepare to launch new MF schemes from next month as Sebi restriction nears end

They have a line-up of passive funds on the fixed income and equity side as well as selective launches in certain categories to fill product gaps from The HinduBusinessLine - Money & Banking https://ift.tt/jxXGF...

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Finance Ministry asks banks to explore fintech partnership, co-lending opportunities

According to the sources, banks were asked to sanction loans for productive sectors to accelerate the revival of the economy facing headwinds, including the Russia-Ukraine war. from Banking/Finance-Industry-Economic Times https://ift.tt/8tBCa...

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DHFL scam: The family accused of the biggest banking fraud knows how to stay out of jail

DHFL and HDIL are realty and housing finance businesses run by two branches of the family. Rakesh Wadhawan of HDIL is the younger brother of the late Rajesh Wadhawan, whose children Kapil and Dheeraj now run DHFL. from Banking/Finance-Industry-Economic Times https://ift.tt/QgGqH...

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