BUSINESS
NBFC-MFI loan disbursements plummet during COVID; industry hopeful of early recovery
MFIs are institutions that borrow from banks and lend to small borrowers at a margin. The COVID lockdown had severely impacted the operations of these institutions as collection process took a hit.
BUSINESS
Privatise select PSBs, overhaul bad loan management, says new paper by Raghuram Rajan and Viral Acharya
Suggesting ways to change ownership structure of public sector banks, the paper said state-linked banks can be a first step in altering the ownership structure of some PSBs, where the government brings down its stakes to below 50 percent.
BUSINESS
Dhanlaxmi Bank sacks senior executive after RBI directive
Banking regulator cites failure to adhere to good corporate governance practices. The Kerala-based bank has been in a state of flux due to a raft of exits from the board.
BUSINESS
Banking Central | An ‘Aatmanirbhar’ interest waiver solution on the cards?
The loan moratorium scheme, which was pitched as an emergency relief measure by the RBI in the wake of the pandemic, has now become a burden for borrowers who opted for it. Will they get a relief? If they do, who will bear the cost?
BUSINESS
Another US-based law firm Pomerantz announces class action suit against HDFC Bank on ‘false and misleading’ statements about its business
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Bank's business, operational and compliance policies. HDFC Bank had inadequate disclosure controls and procedures and internal control over financial reporting, it said.
BUSINESS
Rosen Law, Schall file class-action suits against HDFC Bank in US, allege lack of disclosure
The lawsuits have been filed in the US District Court Eastern District of New York and names HDFC Bank’s outgoing managing director Aditya Puri and CEO-designate Sashidhar Jagdishan along with other officials.
BUSINESS
Is the Banking Regulation (Amendment) Bill a panacea to co-operative banking mess?
While more powers to RBI is good news for UCBs, questions arise on why rural co-operative banks have been left out of the regulatory overhaul.
BUSINESS
PMC Bank crisis one year on: No resolution in sight yet
During investigations, it was found that the bank had been allegedly running fraudulent transactions for several years to facilitate lending to HDIL through fictitious accounts and violating single-party lending rules.
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.
