BUSINESS
Lakshmi Vilas Bank finally finds a savior in Clix
There has been a steady decline in Lakshmi Vilas Bank's deposit base since September 2019 and increase in the NPA ratios. The bank's Tier l Capital ratio has turned negative, at -0.88 per cent, as compared to the minimum requirement of 8.875 per cent
BUSINESS
Microlenders seek e-KYC authentication for client on-boarding
Currently, NBFC-MFIs are not permitted to do e-KYC for their customers. Only those MFIs which are operating as banking correspondents of commercial banks can do e-KYC for that category of customers.
BUSINESS
Analysis | With CPI inflation at 6.7% in August, CEA Subramanian has got his 'expectation' wrong; MPC has a big dilemma ahead
As the August print shows, the CEA’s “expectation” has clearly gone wrong on the course of retail inflation.
BUSINESS
Banking Central l Dear depositor, be very, very careful when you are offered extra returns
Popular Finance, Fashion Gold, PMC, Yes AT1—the lure of higher returns, loose regulations trap gullible investors. Surprisingly, investors keep returning to such firms, ignoring repeated warnings.
BUSINESS
Loan Moratorium | Don’t sideline the RBI
Interest waiver and loan moratorium started as an RBI scheme — and not as a government scheme to provide relief to borrowers. Ironically, now the RBI is a mute spectator
BUSINESS
Coming, a mega loan recast: What does this mean for banking industry?
According to rating agency Crisil, nearly two-thirds of the companies rated by it would be eligible for one-time debt restructuring based on the parameters proposed by the K V Kamath Committee. That’s a big number.
BUSINESS
Kerala's private banks hire top talent, tweak gameplan to gain national focus
Private banks based in Kerala were largely region-focused. They were happy with that kind of business presence and often depended on local business communities for growth. That isn’t the case any longer. These banks are realigning their focus.
BUSINESS
Kamath panel offers a painkiller for crisis-ridden economy. Will it work?
The loan recast exercise will provide a temporary relief to the banking sector. But, if the economic recovery gets delayed, these loans could turn NPAs after the two year period
BUSINESS
ICICI-Videocon case: Deepak Kochhar arrested. Is Chanda Kochhar next?
The ICICI-Videocon case is unlikely to end with Deepak Kochhar’s arrest. Names of Chanda Kochhar and other ICICI Bank officials who played a key role in sanctioning loan to the Videocon Group could come up next.
BUSINESS
Private sector banks catch up with PSBs on MSME loan scheme
If one looks at the sanction figures, private banks have sanctioned Rs 82,950 crore so far as against Rs 786,067 crore by state-run banks.
BUSINESS
The fallen stars of Indian banking
They ruled the banking industry but then greed struck. Money laundering, kickbacks and cheating are among a long list of accusations that people like Chanda Kochhar, Rana Kapoor face. How do dream careers end up in a nightmare, read on
BUSINESS
Microlenders knock on RBI’s door seeking exemption from new current account rules
According to the recent guidelines from the RBI, banks cannot open multiple current accounts for customers who have availed cash credit or overdraft facility from other banks. All transactions need to be routed through cash credit or overdraft accounts.
BUSINESS
Yes Bank Q1: Worst is behind for the lender, but a likely asset quality shock lies ahead
The biggest take away is the growth in deposits from March-quarter which indicates some confidence is returning to the bank after a tumultuous phase.
BUSINESS
Quick Take| Kotak Mahindra Q1 numbers signal asset quality pressure; COVID-19 impact visible
Most bank managements have given a cautious guidance on business outlook. So what’s different for Kotak? The pressure on asset quality that is already visible and uncertainty.
BUSINESS
Why Deepak Parekh doesn’t like the idea of a moratorium extension
The moratorium scheme announced by the RBI, initially for three months, March-May, and later for another three months, June-August, is only temporary relief for companies. This, in a way, hides the actual stress on the books of banks for the time being.
BUSINESS
Banking Central | Who will save India’s public sector banks from politicians?
Unless banks are given the freedom to decide on business decisions, banking sector NPAs can’t be addressed. In a highly competitive industry, PSBs need to be given a level playing field.
BUSINESS
ICICI Bank Q1: COVID-19 caution dominates yet another quarter; future uncertain
Moratorium loans decline to 17.5 percent in June, provisions jump, mood cautious.
BUSINESS
RBI Financial Stability Report | Moratorium impact on NBFCs, HFCs may be substantial
The RBI launched TLTRO and TLTRO 2.0 to help NBFCs get liquidity support. However, the scheme benefited only top-rated, big NBFCs since banks remained risk-averse.
BUSINESS
RBI Financial Stability Report: Indian banks’ gross NPAs could rise to 14.7% by March 2021
In a base case scenario, the GNPAs could rise to 12.5 per cent by March next year, the RBI said.
BUSINESS
Urjit Patel highlights issue of 'creeping banking sector fiscalisation' in his new book
As successive governments have found their capacity for further fiscal expansion becoming constrained, it has used the banks that it owns to fire up and pump-prime the economy; hence the term banking sector-fiscalization.
BUSINESS
RBI neglected to take away the ‘punch bowl’ from the credit-binge ‘party’, says Urjit Patel in new book
In his book, Patel has elaborated on how excessive government ownership has weakened the government banks in the country
BUSINESS
Do not reward wrongdoers by bestowing awards; do some background checks: Urjit Patel’s memo to financial media
The context here is the annual awards given by financial media houses to banks. The recipients, sometimes, include even those banks who have been fined by the RBI and other regulators, sometimes more than once, for rule violations.
BUSINESS
Urjit Patel cautions on rising bank frauds, wants boards, managements to act
A look at the latest data of large banks shows a spike in the number of frauds and the money involved over the previous year. Subsequently, there is a corresponding rise in provisions made.
BUSINESS
Auto loan controversy in HDFC Bank could haunt Aditya Puri’s successor
‘GPS for vehicle loan’ episode has damaged HDFC Bank’s speckless reputation just when the private lender is preparing to hand over the reins to a new boss.
