11:09 AM
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11:02 AM
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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.
9:11 AM
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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 increasing their loan rates. While some lending rates are linked to external benchmarks like the repo rate, others depend on the cost of funds.
Although deposits are growing at a healthy pace, following the withdrawal of liquidity from the system by the central bank, lenders may need to attract more deposits by increasing interest rates on them. Deposits grew by 9% year-on-year to `165.7 trillion during the fortnight ended May 20.
3:11 AM
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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 investors (other than corporate houses) are the potential bidders for IDBI Bank.
Currently, LIC (49.24%) and the government (45.48%) together hold 94.78% stake in IDBI Bank worth about Rs 38,000 crore at the current market prices. Both the government and LIC plan to sell majority stake to a buyer and handover the management control.
To make the deal attractive, the government has approached the RBI to consider giving the potential buyer of IDBI Bank some leeway on complying with the regulatory norms for private banks, including a time-bound reduction in promoter holdings. It has also urged the Securities and Exchange Board of India (Sebi) to give some flexibility to the strategic investor in IDBI Bank on the minimum public float norm for listed companies.
IDBI Bank shares ended at Rs 36.7 on Friday, down 2% from the previous closing on the BSE.
3:02 AM
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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.
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