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The US arm of China's Industrial and Commercial Bank of China (ICBC) experienced a ransomware attack, leading to disruptions in certain financial services systems. ICBC FS disconnected and isolated the impacted systems to contain the incident and is currently investigating the attack. Despite the attack, US Treasury Secretary Janet Yellen stated that there has been no impact on the Treasury market. The attack was reportedly executed using software created by the Russian-speaking hacking group LockBit, known for demanding cryptocurrency payments to resolve the issue.from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/2cbUEOt
Investors on Dalal Street gained about Rs 46 lakh crore during Samvat year 2079, with net buying of Indian stocks by foreign and domestic investors worth over Rs 3.2 lakh crore. The Sensex and Nifty indices showed gains of about 9.5%, compared to a negative close in the previous year. PSU bank stocks performed well, with the PSU banking index giving a return of over 53%. However, the year also saw a selloff in Adani stocks, wiping off Rs 13 lakh crore market cap.
Former Reserve Bank of India governor, Raghuram Rajan, has stated that India's economy needs to expand at a rate of over 8% in order to create enough jobs for the country's growing population. Although India's economic growth has outpaced other major economies, it is still not creating enough jobs to meet the needs of its workforce. The country's overall unemployment rate has reached its highest level in over two years, and it is estimated that India will need to create 70 million new jobs over the next decade.
Industrial & Commercial Bank of China (ICBC) was hit by a cyberattack, forcing it to use a USB stick to send settlement details for US Treasury trades after its systems were disconnected. The attack, believed to be by the Lockbit gang with ties to Russia, caused disruption in the market as trades had to be rerouted. The incident highlights the risk of a cyberattack that could disrupt the financial system, prompting banks to improve their defenses.
The Bombay High Court has granted permission for Dheeraj Wadhawan, former promoter of DHFL, to be taken to Lilavati Hospital for medical examination. Wadhawan is accused in a case investigated by the CBI regarding an alleged fraud between Yes Bank and DHFL worth Rs 4,000 crore. The court stated that Wadhawan should be hospitalized for 2 or maximum 3 days, with necessary safeguards provided by jail officials. The court also emphasized the need for follow-up medical care and suggested that it continue at the same hospital where he was initially examined.
Euro zone government bond yields increased as central bankers expressed skepticism about market expectations of interest rate cuts in 2024. The 10-year bond yield in Germany, the bloc's benchmark, rose to 2.647%, up from a two-month low of 2.606%. European bond yields have fallen recently due to a drop in US counterparts and weak economic data. ECB Vice President Luis De Guindos stated that it was premature to discuss rate cuts. Traders are betting on a 90 bps rate cut by the ECB by the end of 2022.
Analysts are recommending small- and mid-cap stocks in India for the upcoming Diwali festival. These stocks have outperformed larger stocks this year, with the S&P BSE MidSmall Cap Index surging 30%. Some top picks include Polycab India, Kolte-Patil Developers, Gujarat Alkalies and Chemicals, Kalpataru Projects International, Cipla, CCL Products India, Dalmia Bharat, and Canara Bank. These companies are expected to benefit from factors such as expansion plans, strong balance sheets.
The Telecom Regulatory Authority of India (TRAI) has instructed businesses, including banks and insurance firms, to obtain fresh explicit consent from mobile users before sending commercial or marketing messages. The move is aimed at combating unsolicited messages and calls. Trai stated that previous consent given by users is now void, and urged businesses to establish a user consent mechanism.
The International Monetary Fund (IMF) has cautioned the European Central Bank (ECB) and other policymakers to maintain elevated interest rates until inflation is under control. The IMF emphasizes the importance of avoiding premature celebration as inflation declines, as underestimating its persistence could result in painful rate hikes that hinder economic growth. The IMF also advises a prolonged restrictive stance to ensure inflation reaches its target. The ECB, which recently paused rate increases, is said to be in a good position.
The Insolvency & Bankruptcy Board of India (IBBI) has proposed key changes to smoothen the process of completion, handing over, and registration of residential projects for homebuyers. The suggestions include registering each project under RERA, operating separate bank accounts for each project, and allowing the transfer of rights to homebuyers. The IBBI also recommends excluding properties where the "allottee" has taken possession from the liquidation estate. These changes aim to address delays and confusion in the resolution process for real estate projects facing insolvency.
UBS, Switzerland's largest bank, reported a larger-than-expected loss of $785 million in the third quarter, its first quarterly drop since 2017. However, the bank stated that it had stabilized Credit Suisse, which it acquired earlier this year, and generated $22 billion in net new money in its wealth management business. UBS shares rose more than three percent following the announcement. UBS plans to absorb Credit Suisse's Swiss division and cut 3,000 jobs by the end of 2026.
The 30-share BSE Sensex declined 216.73 points to 64,741.96. The Nifty slipped 63.05 points to 19,348.70. Among the Sensex firms, ICICI Bank, Power Grid, HDFC Bank, Bharti Airtel, Asian Paints and Larsen & Toubro were the major laggards. Bajaj Finserv, IndusInd Bank, Bajaj Finance and Sun Pharma were the major gainers. The US markets ended with marginal gains on Monday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 549.37 crore on Monday, according to exchange data.
The 30-share BSE Sensex jumped 471.45 points to 64,835.23 points in early trade. The Nifty climbed 126.75 points to 19,357.35 points. Among the Sensex firms, Larsen & Toubro, Axis Bank, Nestle, JSW Steel, IndusInd Bank and Mahindra & Mahindra were the biggest gainers. State Bank of India (SBI) and Tata Motors were the laggards. The US markets ended in the positive territory on Friday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 12.43 crore on Friday, according to exchange data.
Bank chiefs have expressed concerns about the stress in unsecured loans, particularly in the fintech-driven digital lending of small-ticket personal loans. There is an expectation that the Reserve Bank of India (RBI) may make it more difficult for banks to lend to this segment, which is considered riskier. The State Bank of India (SBI) chairman stated that the unsecured book is better than the secured book, indicating that SBI does not extend loans below Rs 50,000.
Bank of Maharashtra (BoM) has retained the top position among public sector banks in terms of loan and deposit growth during the second quarter of the current financial year. BoM saw a 20% increase in deposits and advances, the highest among all public sector banks. In terms of gross domestic advances, BoM's growth rate was 23.55%, while State Bank of India (SBI) stood at the seventh spot with a 13.21% rise. BoM also recorded a 22.18% increase in deposits, maintaining its top position in garnering low-cost Current Account and Savings Account (CASA) deposits.
Bank of India (BoI) has reported a net profit of Rs 1,458 crore an increase of 52% over Rs 960 crore in the corresponding quarter last year. The profit rose due to a 13% rise in net interest income to Rs 5,740 crore from Rs 5,083 crore in the corresponding quarter last year. Announcing the results, Bank of India MD & CEO Rajneesh Karnatak said the bank would retain its net interest margin, currently at 3.08% above the 3% level for the whole of the year.
Bank of Baroda (BoB) on Saturday reported a 28% rise in its net profit to Rs 4,253 crore for the quarter ended September, compared to a net profit of Rs 3313 crore in the corresponding quarter last year. The jump was due to an increase in net interest income, as loans grew faster than deposits. The profit would have been higher had it not been for two large accounts slipping into default. One was an international account of Rs 500 crore, and the second was an aviation loan of Rs 1,773 crore.
State Bank of India has reported a net profit of Rs 14,430 crore for the quarter ended September 2023, an increase of 8% over Rs 13,265 crore in the corresponding quarter last year. The increase was driven by a sharp drop in provisions for bad loans as asset quality improved. The operating profit was down 8% at Rs 19,417 crore compared to Rs 21,120 crore in the corresponding quarter last year, despite net interest income rising 18% Rs 39,500 crore.
