SECTOR
Union budget 2021: Creation of bad bank, additional demand stimulus measures key for banking sector
Bank credit growth remains depressingly slow due to poor demand in the economy and erosion in consumer confidence.
BUSINESS
Explained | What does private banks’ quarterly business update data tell us?
The demand for loans is a direct function of the economic activity on the ground. The good news is that even at a tough phase, smaller private banks have managed to come with a healthy set of numbers.
BUSINESS
Banking Central | RBI is accountable for its failures
In the last few years, multiple cases have exposed the weak links in RBI's supervision of private financial institutions. The regulator needs to be made answerable for its failures as well.
BUSINESS
RBI launches Digital payments index to track transactions
The RBI-DPI comprises five broad parameters that enable measurement of deepening and penetration of digital payments in the country over different time periods.
BUSINESS
DHFL may get a new owner by January-end; advantage Piramals due to ‘local’ factor
CoC meeting underway to decide the winner as Piramals and Oaktree submit almost at par bids.
BUSINESS
What’s in store for banks in 2021? A better year for sure, but COVID-19 scars will remain
Bankers and analysts believe retail NPAs rather than corporate bad loans will be a headache. Also, credit growth has to pick up if there is to be a meaningful recovery for the sector. With a full-fledged economic revival still some way off, some amount of pain will carry on into the next year.
BUSINESS
Loans worth Rs 8 lakh crore written off by Indian banks in the last decade
In its latest Trend and Progress report, the RBI said that the decline in gross NPAs in the banking system was largely aided by loan write-offs.
BUSINESS
HDFC Bank proposes Atanu Chakraborty as next part-time chairperson
The bank has sent Chakraborty's name to the RBI and is awaiting the central bank’s clearance before a formal announcement. This could happen by early next month.
BUSINESS
'If it ain't broke, don't fix it': RBI working paper says 4% inflation target is good for India
Recently there were speculations that the government could ask the MPC to loosen the inflation target to facilitate a growth supportive policy.
BUSINESS
Banking Central | What awaits Indian banks in 2021
Banking sector will face three major challenges in 2021.
BUSINESS
Dhanlaxmi Bank proposes to appoint Shivan J K as new MD & CEO
Earlier, Dhanlaxmi Bank shareholders had rejected the appointment of former CEO Sunil Gurbaxani.
BUSINESS
RBI bulletin: Redouble efforts to excoriate the ‘worm in the apple’ — high inflation
High inflation threatens to hurt the early growth recovery and price pressures need to be contained urgently, the RBI bulletin said.
BUSINESS
Big companies corner cheaper funds while smaller ones struggle
In November 2020, nearly 93 percent of the issuances carried a rating of AA- and above, out of which 70 percent of the issuances had a rating of AAA. Top-rated firms are able to access funds at extremely lower rates taking benefit of the excess liquidity in the market.
BUSINESS
How app-based loan sharks lay death-traps for borrowers
Illegal app-based financiers are thriving across the country. These moneylenders target younger customers who look for quick loans for consumption purposes. On default, the harassment begins.
BUSINESS
In latest letter, Kapil Wadhawan repeats his offer to repay Rs 91,000 crore to DHFL's creditors in 7-8 years
Wadhawan’s offer comes in the midst of ongoing CoC meetings to consider bids for DHFL including from Piramal Group and Oaktree.
BUSINESS
Committee of Creditors likely to meet on December 23 again to evaluate DHFL bidders, wants more clarity from contenders
CoC will likely look at eligibility of bidders beyond financial component. Piramal Enterprises offers a higher cash upfront—preferred by lenders— than rival Oaktree for troubled mortgage lender DHFL.
BUSINESS
Banking Central | MPC minutes show panel’s deepening worries on growth
The rate panel is left with no choice but to support growth which explains its accommodative stance regardless of high inflation
BUSINESS
DHFL race: Piramal holds edge over Oaktree due to higher upfront cash, insurance tangle for foreign firms
Piramal Enterprises offers at least Rs 1,000 crore higher upfront payment than US asset manager Oaktree for DHFL in fourth round of auction. India’s FDI laws complicate Oaktree bid as DHFL has an insurance business.
BUSINESS
Banking Central | The year-end ruminations of a pessimist banker
The year 2020 was a horrible one for banks in many ways. Will 2021 be any different?
BUSINESS
Analysis | Why MPC must bat for growth
RBI Governor Shaktikanta Das has given a clear signal to the markets that there is a possibility of more growth-supportive measures going ahead. He emphasised the part that the central bank is willing to do whatever necessary to make sure enough liquidity is available in the market, using all instruments at its disposal.
BUSINESS
MFIs seek change in RBI's priority sector lending rules to tap small finance bank loans
Presently, only direct lending to economically weaker sections constitute PSL loans for SFBs.
BUSINESS
Who gets impacted by RBI’s new draft rules on dividend payments?
According to Emkay, at least two NBFCs -- Mahindra and Mahindra Financial Services (MMFS) and LIC Housing Finance -- may face restrictions on dividend distribution
BUSINESS
106 directives, three bank closures — how RBI cracked down on erring cooperative banks in 2020
The RBI has launched a major drive this year to clean up the co-operative sector. But the sector's woes largely remain unchanged.
BUSINESS
Draft rules for dividend pay by NBFCs: RBI proposes 15% CRAR, less than 6% NPAs
According to the draft circular released by the RBI, deposit taking NBFCs and systemically important non-deposit taking NBFCs should have Capital to Risk (Weighted) Assets Ratio (CRAR) of at least 15 per cent for last three years, including the accounting year for which it proposes to declare dividend.
