BUSINESS
Independent director accuses promoters of Rs 600-crore scam in listed optic fibre maker
Promoters of Aksh Optifibre, a Delhi-based company, accused of creating a byzantine collection of shell companies, entering into undisclosed related party deals, and carrying out gold-plated imports. Independent director shoots letters to finance ministry and board calling for forensic audit.
BUSINESS
Exclusive | Ex-ICICI Bank executive Murali Ramakrishnan likely to be named as CEO of South Indian Bank
If the proposed move fructifies, Ramakrishnan would be the first MD & CEO of South Indian Bank coming on board from a private sector lender.
BUSINESS
Finance Ministry rejects NBFC industry’s request for longer-term liquidity assistance
As per the notification, liquidity instruments under the scheme will have a maturity of only three months
BUSINESS
2 deals, 2 CBI cases: How banks flouted rules while lending to Videocon’s Venugopal Dhoot
Videocon’s loan dealings with banks expose how easily banks could flout norms when approached by a powerful industrialist and raises more questions on the efficacy of safeguards banks and regulators follow to avert corruption in high value loan deals.
BUSINESS
Dhanlaxmi Bank board-room tussle: Following chairman, two more members quit
On Tuesday, K.N Murali, Independent Director and G. Venkatanarayanan, Additional Director resigned from the Board of the Bank with effect from June 29, 2020 citing personal reasons.
BUSINESS
Dhanlaxmi Bank Chairman Sajeev Krishnan quits ahead of his term
According to people familiar with the development, Krishnan resigned from the bank ahead of his term on account of differences with the management.
BUSINESS
A month of Rs 3 lakh crore MSME loan scheme: Sanctions are high but disbursals remain low; here's why
A closer look at the emergency credit line guarantee scheme (ECLGS) numbers show, even though banks have been aggressive in ramping up loan sanctions, the actual disbursements are yet to pick up in a meaningful way.
BUSINESS
India’s MSMEs hit hard by COVID-19: What lies ahead for small entrepreneurs?
MSMEs are the first to take hit in an economic downturn. This time too, many MSMEs are hit hard due to the onslaught of the pandemic. The demand on the ground has slowed to a trickle. Adding to the woes, a good number of skilled workforce has moved back to their home states due to the prolonged lockdown.
BUSINESS
COVID-19 crisis: RBI may agree to one-time loan restructuring scheme for stressed borrowers
If RBI permits this demand, this will be a big relief to NBFC borrowers since economic activities have slowed to a trickle on account of the prolonged lockdown.
BUSINESS
Upset RBI officers knock at Governor Shaktikanta Das's door over new unified cadre, HR bias
In the letter dated 25 June, the RBI Officers’ Association said the recently constituted Specialized Supervisory and Regulatory Cadre (SSRC) will adversely impact the central bank's supervisory functions.
BUSINESS
Annual pay in FY20: HDFC Bank MD Aditya Puri’s Rs 18.9 crore vs SBI Chairman Rajnish Kumar’s Rs 31 lakh
The wage disparity between the public and the private sectors, however, is not limited to banks.
BUSINESS
Explained: Govt gives more teeth to RBI to govern co-operative banks: What does it mean?
There are about 1,482 urban co-operative banks and 58 multi-state co-operative banks in the country which are now being brought under the RBI's watch.
BUSINESS
SBI writes off loans worth Rs 1.79 lakh crore in last four years
The bank recovered Rs 9,250 crore from Advance Under Collection Account in FY20 as against Rs 8,345 crore in FY19. AUCA refers to chronic bad debt cases where recovery is unlikely in the normal course.
BUSINESS
RBI extends Rs 50,000-crore special liquidity facility to Yes Bank for 3 more months
The facility, which was announced earlier for three months till 16 June, was given to the bank as temporary assistance after the lender was bailed out by a bank consortium as part of an RBI-initiated reconstruction package.
BUSINESS
FinMin wants PSBs to cut expenditure by 20%: Good move, but where is the recapitalisation plan?
Government’s directive to PSBs to cut unnecessary expenditure in a crisis scenario is a certainly a good move. But, this will not be enough. PSBs are staring at much bigger capital requirements in the Covid-19 hit economy.
BUSINESS
Former RBI governor Urjit Patel makes peace with government, to join as NIPFP Chairman
Beginning June 22, Patel will begin a four-year term as the Chairperson of the National Institute of Public Finance and Policy, a research body under the control of the ministry of finance.
BUSINESS
BJP’s Tamil Nadu unit launches helpline to obtain loans
Up to 19,000 people have applied for loans, five applications have been processed and Rs 20 lakh loans was released, according to the party website. Moves comes as as Rs 3 lakh crore MSME loan scheme has failed to take off.
BUSINESS
Rs 3 lakh crore MSME loan scheme: PSBs struggle to improve actual disbursals; will private banks come on board?
In fact, on a cumulative basis, only half of the amount sanctioned is disbursed so far. PSB bankers are on an overdrive to make the scheme work under direction of the government
BUSINESS
RBI plans systemically important tag for big HFCs, here's what it means
Since most of the big HFCs are already well regulated by the central bank, the proposed categorisation will not make much of a difference.
BUSINESS
Interest waiver during loan moratorium: Who will speak for the bank depositor?
Interest payment on bank deposits is crucial for a large section of the population who park their money in banks, considering FDs as safer instruments. Bank deposits are the preferred option for a large section of investors, especially senior citizens and the retired, who rely on monthly interest payments to meet their expenses.
BUSINESS
How Chinese central bank’s move in HDFC alerted New Delhi to tighten rules
India’s concern was mainly over Chinese opportunism. By the second half of April, India began to put in place controls to screen Chinese investment proposals in Indian companies.
BUSINESS
Here's why the lukewarm response to RBI's unified supervisory cadre can be a worry for the banking sector
There is a difference of opinion between top management and officers about the effectiveness of the new division. Officers believe that existing infrastructure needs to be strengthened through training instead of creating a new cadre.
BUSINESS
Very few takers among MFIs for RBI’s second loan moratorium scheme
While all MFIs have availed the first moratorium, not many are keen to avail the facility for the second time. MFIs are particularly worried about the huge interest burden that will fall upon them while availing the scheme
BUSINESS
Second-time lucky? Clix Capital offers to play Santa at Lakshmi Vilas Bank
The bank was in talks with Indiabulls Housing Finance last year for a possible merger. That didn’t go through after the regulator rejected the proposal. Once again, the lender is trying its luck with another larger investor.
