BUSINESS
With insiders at the helm, Ujjivan is readying for a reset
The tussle between the holding company and the small finance bank is an open secret. A series of exits from the bank, including that of the chief executive officer in the recent past, is no coincidence. With Carol Furtado and Sanjeev Barnwal in the lead, Ujjivan may be readying for a comeback.
BUSINESS
Explainer| UCO Bank out of RBI’s PCA watchlist, lending curbs after 4 years. What is PCA all about?
After four years, the Reserve Bank of India (RBI) has finally let the Kolkata-based UCO Bank out of the prompt corrective action (PCA) list. The performance of the bank was reviewed by the Board for Financial Supervision and it was noted that, as per its published results for the year ended March 31, 2021, the bank is not in the breach of the PCA parameters.
BUSINESS
Citibank's retail assets good bet for local contenders to bolster existing affluent customer base, says CLSA
The shortlisted contenders for Citi's Indian assets include Kotak, HDFC Bank, Axis and DBS Bank.
BUSINESS
Banks’ share investments jump unprecedented 26% in fortnight: RBI data
Experts said banks may have aggressively participated in IPOs and in some cases, converted debt to equity
BUSINESS
Banking Central | Microlenders at critical juncture, giving mixed signals on business recovery
Cues from micro borrowers are important as this segment gets impacted at the first hint of an economic shock but also recovers quickly. If the third wave is contained, microloans may rebound sharply.
BUSINESS
Former SBI Chief Rajnish Kumar joins Andhra government in advisory role
After his retirement from SBI, Kumar took up various assignments including as exclusive advisor to Kotak's Special Situation Fund and as an independent non-executive director at HSBC.
BUSINESS
Small NBFCs continue to struggle for funds despite RBI’s liquidity push
In the wake of Covid-19, the RBI announced several measures to spur bank credit to small NBFCs. But banks haven’t been forthcoming.
BUSINESS
Explained: AT1 bonds, their risks, rewards and why banks issue them
Additional Tier 1 bonds do not have a maturity date and are perpetual in nature. These debt instruments offer higher returns to investors but they also carry a higher risk.
BUSINESS
Senior-level exits haunt AU Small Finance Bank despite management assurances
The management says the executives quit for personal reasons, but the resignations have spooked investors and sparked concerns about asset quality. Analysts say NPA numbers seem fine so far but they seek more transparency.
BUSINESS
Banking Central | Politicians should be kept away from co-operative banks
An RBI expert panel has made several recommendations, including a merger of weak co-operative banks, but the report is silent on the biggest issue—political involvement in the running of co-operative banks. Until this problem is looked into, co-operative banks will struggle
BUSINESS
Fresh challenges emerge for Ujjivan in tough market
The differences between promoter and SFB management have resulted in senior and mid-level exits but bigger problems await Ujjivan on the asset quality front.
BUSINESS
Explained | The good, bad and ugly of Assam’s microfinance relief scheme
There’s immediate relief for every stakeholder. But, will Assam’s scheme set a bad precedent for the industry? The RBI isn’t too enthusiastic and there is a fear such schemes will affect credit culture adversely.
BUSINESS
Interview | India will be one of the few countries to offer high productive nominal growth in the medium term, says Morgan Stanley's Chief India Economist Upasana Chachra
At the core of the issue of poverty and income inequality is the creation of well-paying productive jobs. As such, the key for policy makers should be to push growth rates higher for longer, which can help address these issues.
BUSINESS
Exclusive Interview | I see a lot of uncertainty around the point estimates of future inflation, says MPC member, Jayanth Varma
My professional training in finance teaches me to think of most decisions as a tradeoff between risk and reward. Applying this risk-reward analysis to macroeconomic decision making is even more challenging than it is for decision making at the level of individuals and enterprises.
BUSINESS
Banking Central | Some tough questions to the MPC
The MPC has been following a pattern, largely supporting growth (remaining on an accommodative stance), and ignoring near-term inflation spike. Jayanth Varma, one of the MPC members, has been the lone voice questioning this stance.
BUSINESS
Banking Central | Banks must get their technology game right
Banking has evolved into a predominantly tech-focused service and is fast moving away from the brick-and-mortar model but the frequent outages hobble a smooth shift
BUSINESS
Easing retail inflation validates MPC stance, what next?
In the August policy review, the MPC had said that the high inflation of recent months was transitory, while RBI hiked the CPI inflation estimate for the fiscal year 2022 to 5.7% from 5.1%
BUSINESS
Why Rs 5 lakh DICGC cover isn't enough to bridge a widening trust deficit among depositors
According to the government, with the latest amendment to the DICGC Bill, the deposit insurance coverage in India has gone up to 98.3 percent and covered deposit value has risen to 50.9 percent against the comparative numbers globally—80 percent and 20-30 percent respectively.
BUSINESS
Yes Bank plans to set up asset reconstruction company, invites EoI for partnership
Ernst & Young has been appointed as the process advisor to the bank for the project.
BUSINESS
RBI lobs Olympics gold medalist Neeraj Chopra into new fraud awareness campaign
After Neeraj Chopra, the RBI plans to rope in more Olympians including Bajrang Punia and others for its campaign.
BUSINESS
PNB Housing Finance Vs SEBI: What next on the Carlyle deal?
Earlier, SEBI had directed PNBHFL to halt the proposed deal until the company undertakes a fresh valuation from an independent valuer. Later, the SAT allowed the company to conduct the AGM but asked it to not announce the results of the AGM till a final order. SAT's order is pending in this case.
BUSINESS
Sa-Dhan proposes Rs 2 lakh income limit for both rural, urban households under MFI regulations
The Reserve Bank of India on June 14 released a consultative document on uniform regulation for companies engaged in microfinance business
BUSINESS
Banking Central | How long can MPC ignore inflation and remain 'accommodative'
The divided vote indicates that MPC may not continue with the stance for too long and if inflation continues to surprise on the upside, the change may be coming sooner than expected
BUSINESS
Jayanth Varma continues to be the lone dissenting voice in RBI’s MPC
Varma continues to question the relevance of the MPC forward guidance.
