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.
BUSINESS
RBI cancels licence of Karad Janata Bank, more than 99% of depositors to get full payment back under DICGC
More than 99 per cent of the depositors of Karad Janata Sahakari Bank will get full payment of their deposits from DICGC, the RBI said.
BUSINESS
Yes Bank Q2 results: Back on track, yet bad loans remain elevated
Yes Bank’s new management has managed to get the lender back on track. The bank, however, needs to continue with caution.
BUSINESS
MPC minutes: It may take years for economic growth to regain lost momentum
There is a strong signal in the MPC minutes that growth revival may take much longer than expected and MPC’s main focus will be growth revival, rather than inflation targeting
BUSINESS
Time for IDBI Bank to shed the PCA tag?
The bank will have to still clean up its books and bring down the gross NPA levels. The Q2 numbers do not give us the full NPA numbers due to the impact of the Supreme Court’s 3 September interim order
BUSINESS
EXCLUSIVE: Fraud-hit Sambandh Finserve’s Director quits; more Board exits, including the CEO, likely
K Prasad, one of the independent directors, who was earlier with the RBI, resigns. A letter by the senior management personnel alleges that the management has been cooking the books under the directions MD and CEO Deepak Kindo.
BUSINESS
Analysis | SBI Card Q2 NPA numbers much worse than what it appears
The company has not classified accounts that are standard as on August 31, 2020, as NPAs following a SC order. If that is to be taken into account its Q2 gross NPAs would have jumped to 7.5%, from 1.4% Q-o-Q.
BUSINESS
Exclusive | Smaller microlenders may find it tough to survive if liquidity doesn’t come by March, says MFIN CEO
Alleged fraud at Sambandh Finserve could impact the confidence of lenders. The company has initiated a forensic audit into the allegations raised by a section of the senior management.
BUSINESS
Why HDFC Bank’s investors need to look beyond the Aditya Puri factor
At least 18 executives have exited HDFC Bank since FY17. Many of them had been with the bank for over a decade and were part of the private lender’s unparallelled growth story. Jagdishan will be off the blocks with a relatively new team.
