BUSINESS
Banking Central | Loan waiver neither good for borrowers, nor for banks, but a big bait in polls
Political parties announcing farm loan waivers could damage credit culture and lead to a rise in loan defaults even from honest, repaying borrowers as we have seen in the past.
BUSINESS
Banking Central | Big banks brush aside tech alerts until RBI cracks the whip
Banks need to scale up investment in strengthening the technology before launching products to ensure their platforms can handle volume without inconveniencing the customer. Repeated glitches will distance even the loyal customers from a bank and prompt them to look for better options
BUSINESS
Banking Central | What makes HC order on Lakshmi Vilas Bank-DBS India merger important?
The court has refused to intervene in the merger but has raised some important questions to the central bank on the issue of transparency in the whole process
BUSINESS
Madras HC refuses to interfere with LVB-DBS merger, directs RBI to decide afresh on Tier-II bond write off
A bench comprising Chief Justice Sanjay V. Gangapurwala and Justice D. Bharatha Chakravarthy ordered the central bank to complete the exercise within a period of four months, keeping in mind the grievances of the shareholders and bondholders
BUSINESS
Kotak Mahindra Bank CEO says in constant communication with RBI to address concerns
On April 24, the RBI imposed major business restrictions on the bank asking it not onboard new customers through digital channels and not issue fresh credit cards citing prolonged concerns realted to the bank's technology platforms.
BUSINESS
RBI crackdown on KMB poses first major challenge to Uday Kotak’s successor Ashok Vaswani
The central bank’s action will put the digital banking business on the backfoot for a while. Ban on adding new credit card customers will likely impact Kotak’s positioning amid tough competition
BUSINESS
RBI extends deputy governor T Rabi Sankar's term by a year
Sankar was the executive director of the RBI before he took over as the deputy governor
BUSINESS
RBI cracks down on Kotak Mahindra Bank; bars onboarding new customers through online, mobile banking and issuing new credit cards
During the investigations, the RBI found that the bank is materially deficient in building necessary operational resilience on account of its failure to build IT systems and controls commensurate with its growth.
BUSINESS
Banking Central | Is it right for banks to make you buy insurance cover tied to your loan?
This has been a longstanding practice in the industry. Forced selling of insurance policies at the time of a loan purchase isn’t fair business practice
BUSINESS
MC Interview | MPC should be wary of keeping rate so tight that it prevents revival of private capex: Jayanth Varma
Varma said the economy has been held up by government investment, and the ongoing process of fiscal consolidation is gradually withdrawing that stimulus
BUSINESS
Exclusive | Bandhan Bank hires Egon Zehnder to find a CEO to replace Ghosh
Bandhan Bank said on April 5 that the lender’s MD & CEO, Chandra Shekhar Ghosh, will retire after completing his current tenure on July 9.
BUSINESS
MC Analysis | MPC may face double whammy if Israel war escalates, heat wave wreaks havoc on food prices
The RBI’s 4.5% inflation projection for FY25 assumes a normal monsoon. However, heat waves could impact food production and water levels.
BUSINESS
Banking Central | The making of Bandhan Bank and the end of an era as Ghosh plans to retire
On April 5, Bandhan Bank said Chandra Shekhar Ghosh will retire from the post after his tenure ends on July 9. That came as a surprise to many as earlier, on November 24, 2023, the board of the bank had approved his reappointment as the MD and CEO of the bank for a period of three years.
BUSINESS
Banking Central | How long is too long? The answer to rate cut hinges on food price inflation
On Friday, the MPC’s decision to leave key rates unchanged came on the expected lines. Das’ comments leave strong clues on what’s the approach on rate cuts.
BUSINESS
Exclusive: Decision to step down voluntary, search committee set up to choose new CEO, says Bandhan Bank’s Ghosh
Bandhan Bank said on April 5 that the lender’s MD & CEO, Chandra Shekhar Ghosh, will retire after completing his current tenure on July 9.
BUSINESS
RBI MPC in Quick View | Das sticks to script as food price plays villain in inflation story
Among all challenges on inflation, uncertainty on food prices remains the biggest upside risk
BUSINESS
RBI Policy: MPC maintains vigil on inflation, leaves repo rate unchanged at 6.5%
The RBI has been fighting a prolonged battle against a persistently high inflation by using a mix of monetary and liquidity tools.
BUSINESS
Exclusive Interview: “Next 3-6 months will tell us how the entire business with Paytm pans out,” says Amitabh Chaudhry
Chaudhry said the RBI’s unhappiness with the rising exposure of banks to NBFCs arises from the fact that, in some cases, lending through fintechs or NBFCs happens without banks taking ownership
BUSINESS
Banking Central | RBI@90: How Mint Street fought many battles to save India from crises
In the post-global financial crisis period, Indian banks let loose their purse strings carelessly, pushing credit to anyone who knocked on their doors, thus creating a major asset quality challenge for the Indian central bank to manage in the following years
BUSINESS
Murali Ramakrishnan, former MD & CEO at South Indian bank, joins Bain & Company as external advisor
Ramkrishnan’s term at South Indian Bank ended in September 2023 after he opted not to be re-appointed due to personal reasons
BUSINESS
MPC Policy Preview: Five reasons why surprises are unlikely on repo rate, stance
The MPC is likely to maintain a status quo on repo rate and stance and will continue a wait-and-watch mode as more inflation cues emerge.
BUSINESS
RBI to start special audit for IIFL Finance, JM Financial Products from April 12
On March 4, the RBI asked IIFL Finance to stop sanctioning or disbursing gold loans with immediate effect after observing certain material supervisory concerns in the company's gold loan portfolio.
INDIA
ECI data: Coimbatore lottery tycoon Santiago Martin’s Future Gaming emerges as big donor to TMC, DMK
Future Gaming contributed a total of Rs 1,368 crore through electoral bonds between 2019 and 2023. Founded in December 1991, Future Gaming and Hotel Services Private Limited was registered in Coimbatore by Santiago Martin
BUSINESS
Banking Central | When will small co-operative banks get rid of political strongmen?
Smaller ones continue to be under the rule of state governments through registrar of cooperative societies. This is where the local politicians are involved in a big way and laundering the money collected from society members for personal benefits with or without the knowing of the political parties. This needs to be stopped.
