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.
BUSINESS
Jet Airways: Why the airline’s aggrieved lenders aren’t excited about the Kalrock deal
There isn’t much for lenders in the Kalrock-Jet Airways deal. Over 90 per cent of the money is gone. There is no clarity on what lies ahead for Jet under the consortium. Still, it is better than a no-deal, total write-off, bankers say.
BUSINESS
CSB Bank Q2: Gold loans continue to be dominant theme on bank's books
CSB, largely a regional-focused bank, reported a healthy quarter focusing on gold loans.
BUSINESS
LIC raises stake in Kotak Mahindra Bank to 3.18%
LIC has increased shareholding in Kotak Mahindra Bank to 3.18 percent from from 2.45 percent, as per the bank’s latest shareholding pattern.
BUSINESS
Fund-starved smaller MFIs write to RBI seeking change in base rate calculation
Presently, microlenders can charge only upto 2.75 times of the base rate of five large commercial banks. But they borrow at 16-18 percent from NBFCs. This puts pressure on their margins.
BUSINESS
Banking Central | Time for RBI, industry to look deep into corporate governance issues in NBFC-MFIs
The fraud in Odisha-based Sambandh Finserve points to likely regulatory oversight and questionable role of auditors. The industry needs to introspect.
BUSINESS
Aditya Puri hangs up boots with a good quarter, but asset quality remains a concern amid COVID-19 pandemic
HDFC Bank's asset quality has improved, provisions are on the expected lines, and there is a realistic guidance on the COVID-situation and its likely impact on the loan book
BUSINESS
Ghost loans make a comeback: Role of founder & CEO questioned in Sambandh fraud
Several questions remain unanswered in the Sambandh Finserve scandal. What were the auditors doing all these years while the company’s loan books were being allegedly fudged? Didn’t the Board, especially the independent directors, take note of the state of affairs? That the top management could allegedly pull off such a fraud with impunity all this while also raises the larger question on the functioning of MFIs, and the need for more vigilance by the regulator.
BUSINESS
Supreme Court's stay on NPA classification will give shocker for banks in Q3 and Q4. Here’s why
Banks cannot classify NPAs that are standard as on August 31 until a final SC order is issued. As of now, the status quo will remain at least till November 2. That’s bad news for banks in Q3 and Q4.
BUSINESS
Analysis | What bank NPA numbers won’t tell us during Q2 results
Banks will not disclose the full NPA figures in the second quarter drawing comfort from a recent Supreme Court ruling that says all borrowal accounts that are standard as on August 31 cannot be declared as NPAs till further orders.
BUSINESS
After Gurbaxani sacking by shareholders, Dhanlaxmi Bank looks for a new MD & CEO
At the September 30 AGM, shareholders had ousted Sunil Gurbaxani, the RBI-appointed MD&CEO with over 90 per cent votes polled turning against his appointment. Following this, the RBI appointed a CoD to take interim charge
BUSINESS
RBI says resolution framework can be invoked for all exposures of lending institutions
RBI has issued FAQs on the resolution framework for COVID-19 related stress. Here are the key highlights
BUSINESS
Lakshmi Vilas Bank board to meet on October 15 to consider rights issue
Moneycontrol first reported on October 1 that LVB has engaged with some of its existing institutional investors informally to understand if they will participate in a rights issue should the bank pursue the plan.
BUSINESS
Yes Bank AT1 Bond case: Bombay High Court’s interim orders to continue till October 31
In mid-March, the court had passed the interim order that said any action taken by the respondents “shall be subject to further orders” passed by the court
BUSINESS
Explainer: What does RBI's latest consumer surveys tell us?
To support the economy, the RBI has been announcing a series of liquidity measures to make money available for lending institutions so that credit flow to productive sectors continues. But, in a low demand scenario, banks have been struggling to push credit to customers.
BUSINESS
Banking Central | Lessons for investors from Popular Finance scam
Popular Finance episode is the latest in the long-running sordid saga of finance firms cheating customers. The most important lesson for investors: don’t put all your eggs in one basket.
BUSINESS
CARE downgrades various debt instruments of Lakshmi Vilas Bank, outlook negative
The ratings are constrained by LVB's regional nature of operations, weak asset quality parameters, weak capitalisation levels and continuation of losses in Q 1FY21, CARE said
