BUSINESS
View| Credit Suisse fiasco shows the ugly side of AT1 bonds
Why do people invest in AT1 bonds despite the high-risk nature? One reason is that the returns offered by these bonds are typically higher compared with other bonds. The other is ignorance.
BANKS
Banking Central | Why Uday Kotak was spot on in warning on Credit Suisse
There are important lessons for Indian banks on risk management and concentration risk from the unfolding global banking crisis
BUSINESS
Bank failures: Is there a case for higher deposit insurance cover in India?
Bank failures in US highlights the need for a higher deposit insurance cover to bridge the widening trust deficit of the customers, particularly in small banks.
BUSINESS
Does RBI have a case for pause in April?
A section of economists and Monetary Policy Committee members believe that it’s time the rate-setting panel take a hard pause and waits for the results of the past rate hikes to play out. Others think it is too early.
BUSINESS
Banking Central: Why an SVB-like crisis is unlikely in India
According to the RBI Financial Stability Report (FSR) released in December, stress test results indicate that banks would be able to withstand even severe stress conditions should they materialise.
BUSINESS
All in a name: SVB ripples from California reaches Mumbai to rattle a coop bank
The similarity in the brand names caused confusion among the customers of Mumbai-based SVC cooperative bank, which was flooded with enquiries from customers on the safety of their deposits.
BUSINESS
MC Exclusive | HDFC-HDFC Bank merger to lead to bigger growth opportunity; will not take executive role, says Keki Mistry
HDFC on April 4 said its board has approved the merger of its wholly-owned subsidiaries HDFC Investments Limited and HDFC Holdings Limited with HDFC Bank Limited. As part of the plan, HDFC will acquire 41 percent stake in HDFC Bank through the transformational merger.
BUSINESS
Banking Central | Dear bank customer, think again lest you hit that link
Rising cases of online frauds, phishing attacks pose important questions on the cyber security in banking channels.
BUSINESS
Banking Central | How costly are the ‘haircuts’ for bankers in IBC?
Even with lower recoveries, IBC remains banks’ best bet at this point when it comes to resolution of problematic corporate loans
BUSINESS
Jayanth Varma Exclusive Interview | Dissent is healthy; I approach MPC deliberations with a great deal of humility
India’s central bank increased the repo rate by 25 basis points to 6.50 percent earlier in February to fight persistent higher inflation. This was the sixth straight hike in 10 months.
BUSINESS
Rising from the ashes: The fall of Trident and rise of Pradakshana
Trident Microfinance, the only major MFI that had to shut shop following the 2010 microfinance crisis in Andhra Pradesh, is quietly back in business in a new avatar and with a new business model. Trident’s founder Kishore Kumar Puli isn’t willing to give up on his dream
BUSINESS
MPC minutes show the house is still divided
Much of the rate hikes may have come to an end already. While rate cuts are clearly off the table this year, the panel may enter into a phase of prolonged pause soon. Question is how soon.
BUSINESS
MPC minutes: Inflation is easing, 25 bps rate hike unwarranted, says member Jayanth Varma
In the February monetary policy, the central bank increased the repo rate by 25 basis points to 6.50 percent to fight against the persistent higher inflation. This was the sixth straight hike by the central bank in the last 10 months
BUSINESS
Banking Central | Why Telangana HC verdict on MFI regulation is important
The Andhra Pradesh microfinance crisis had a devastating impact on several microfinance companies, ended livelihoods for hundreds of employees and denied credit access to thousands of poor borrowers. The HC order may not compensate them but its never too late for a corrective action.
BUSINESS
Telangana High Court says state can't control RBI-registered MFIs
The order came on a case filed by industry body MFIN against the state money lending act enacted by the erstwhile Andhra Pradesh government
BUSINESS
Banking Central| A good year ahead for bank depositors
Over the last few months, most banks have increased their deposit rates. The trend is likely to continue as banks strive to wedge the gap between credit and deposit growth.
BUSINESS
Quick View | RBI's Das just acknowledged FM Sitharaman’s memo on rate hikes
Das likes to keeps his cards close to the chest, but the MPC may have no more room to hike rates, particularly after the nudge from the government which is batting for growth.
BUSINESS
RBI Policy: MPC hikes repo rate by 25 bps, cautious on inflation but focus back on growth
Since last May, the MPC has hiked the policy rates by 250 bps to fight a persistently high inflation. With this round of rate hike, the MPC is likely to have reached the end of the rate hike cycle, according to experts
BUSINESS
Banking Central | FM Sitharaman just nudged RBI to prioritise growth, without saying it
Will the FM comment could influence the MPC’s rate hike approach ahead? A 25 bps rate hike appears certain this week but that could very well be the end of the current rate hike cycle.
BUSINESS
RBI looking at banks' exposure to Adani group companies, seeks present status: Sources
The RBI has already reached out to some of the major banks which are the lenders to the Adani Group and is engaging with lenders to verify the exposure details, one of the person quoted above said.
BUSINESS
Budget 2023: What FM Sitharaman missed on banking in her 87-minute speech
Crypto and bank privatisation —two major items that had found place in Sitharaman’s previous Budget speech — were missing this time. There wasn’t even a mention. What does it mean? Read on
BUSINESS
Banking Central: The two key lessons from the GTL corporate loan fiasco that bankers forgot
The Rs 4760 crore GTL fraud isn’t the first where banks fail to assess and monitor the end use of big corporate loans. In most likelihood, it is unlikely to be the last too.
BUSINESS
Rs 4,760 crore bank fraud: CBI registers case against GTL Ltd directors, bankers
Enquiries revealed that GTL was extending advances to vendors year on year without supply of material and goods. Around 24 banks have together lent money to GTL that include Canara Bank, Dena Bank and ICICI Bank among others.
BUSINESS
Exclusive: Videocon loan case: Dhoot co-founded NuPower at own office address, documents reveal
Dhoot’s Supreme Energy was incorporated just six months before Deepak Kochhar’s NuPower at the same address in 2008, indicating their association before the alleged loan scam.
