BUSINESS
Loan moratorium extension: Is it a trap or an opportunity?
You are the best judge to decide whether this offer makes sense for you or not. If you are someone with enough cash flows, it is better to continue with regular payments. If you are looking to generate some liquidity for near term use, loan moratorium makes sense for you. It’s a call you need to take.
BUSINESS
End of an era as Kapurs step down as Yes Bank promoters
With Kapurs’ choosing to step back as YES Bank promoters, an era is over at Yes Bank. Yes Bank was co-founded in 2004 by Ashok Kapur and Rana Kapoor with Ashok as chairman and Rana as managing director and CEO.
BUSINESS
Decoding GDP data: India’s economy suffered a double whammy last fiscal and the worst is yet to come
The Gross Fixed Capital Formation (GFCF), which is a major indicator that shows investment activity on the ground, contracted by 2.8 percent in FY2020 as against a growth of 9.8 percent in the previous fiscal year
BUSINESS
Reviving Jet Airways: Long list of suitors surprises. But the big question remains
The list includes a few known, and some unknown names, and even an airline
BUSINESS
Q4 GDP data today: Why does the growth number matter to us?
Theoretically, the lockdown impacted the economy only in the last week of March. But, in reality much of the normal course of business had slowed down days before the nationwide lockdown came into effect. This is because people movement declined significantly much before the lockdown.
BUSINESS
Two reasons why India’s cash-starved govt banks need urgent capital support now
If the govt wants PSBs to shoulder the burden of the economic package execution, simultaneously fighting the COVID-19 uncertainty, it needs to fill their capital void. Else, it needs to prepare a plan to get out of government ownership in these banks and let private players run the show.
BUSINESS
Kalpana Morparia, an iconic banker, set to draw curtains on an illustrious career
Morparia made her name in the banking world during her stint at ICICI Bank. After retiring from ICICI Bank in 2007 as Joint Managing Director, Morparia took charge at JP Morgan in 2008.
BUSINESS
Eight months after PMC crisis, RBI yet to find a suitor for the bank
Even after eight months since the Reserve Bank of India (RBI) superseded the bank’s board and appointed an administrator, the revival plan is yet to progress meaningfully
BUSINESS
What does the IBC data tell us about the state of Indian economy?
Of the total 12 cases that were directed to the Insolvency and Bankruptcy Court by the Reserve Bank of India (RBI) in 2017, a resolution has been arrived in six cases while liquidation orders were passed against two companies.
BUSINESS
Little to cheer for banking sector on first anniversary of Modi government's second term
There were no real positives for banking sector in the past one year.
BUSINESS
Loan moratorium extension until August 31: Can prolonged EMI deferral spoil borrowers' credit culture?
Since most borrowers of MFIs are from low income segments, it is difficult to restore the credit culture once the payments go off the track, MFI officials say.
BUSINESS
COVID-19 shadows HDFC Q4 numbers: Performance of developer loans key going ahead
Going ahead what HDFC needs to watch is the performance of developer loans. In Q4, there has been a big spike in NPAs from this segment.
BUSINESS
RBI responds well, but its actions are band-aid solutions sans fiscal steps to boost demand
Much of the economic package announced by the government is loans and interest subventions. Loans aren’t free money. It needs to be paid back to lenders and in the absence of demand, the RBI will be forced to come up with more band-aid measures.
BUSINESS
Axis Trustee includes ‘misselling’ of Yes Bank AT1 bonds in petition at Bombay HC
On May 7, Moneycontrol first reported that alleged ‘misselling’ of these bonds to retail bond holders by Yes Bank’s executives was likely to be made part of an existing petition in the High Court of Bombay filed by Axis Trustee. Retail AT1 bond holders allege that Yes Bank executive sold these bonds to retail customers as ‘Super FDs’ offering safety and relatively high return compared with regular fixed deposits.
BUSINESS
Das comes to the rescue of stressed borrowers again but passes ball to banks' court
So far, if one looks at measures from the government and the RBI, the central bank’s actions have offered immediate support to the borrowers.
BUSINESS
Why a government-controlled bad bank is not a good idea
A bad bank is essentially an entity which bundles together all the bad assets in the banking industry, buys it at a discounted price from banks and tries to find buyers by putting a turnaround plan in place
BUSINESS
COVID-19 impact: The beginning of a new bad loan cycle is here
The COVID-19 effect on the Indian economy, coupled with some of the schemes launched by the government to contain the problem may actually cause another wave of bad loans in the Indian banking system. Warning signals are already visible.
BUSINESS
With Centre’s economic package offering no relief, NBFCs send SOS to FinMin
NBFCs were shocked to know that both the schemes carried very short repayment tenures and therefore, were of little help to them
BUSINESS
Govt’s Rs 30,000-crore special liquidity scheme for NBFCs a non-starter, three-month tenure disappoints industry
On Wednesday, the government issued the details of the special liquidity scheme for non-banking finance companies and housing finance companies following Cabinet approval.
BUSINESS
Bajaj Finance gears up for a tough quarter ahead; bets big on Bharat, rather than India
Bajaj finance, like most lenders, is set to face the severe uncertainty related to Covid-19 in the next few months. The extension of lockdown till May 31 will likely have further impact on customers’ ability to borrow more and repay existing loans.
BUSINESS
Ramdev International fraud: Why did SBI, other lenders wait for 4 long years to move CBI?
An obscure Delhi-based rice producer defaulted on loans worth more than Rs 400 crore, but lenders were painfully slow in swinging to action.
BUSINESS
Three reasons why govt's Rs 5,000-crore street vendor loan scheme is spooking bankers
Industry experts fear that these loans may backfire on the banking sector and could end up as non-performing assets on the books.
BUSINESS
COVID-debt clause in economic package likely to worsen banking mess
What does ‘COVID-related debt’ mean for the banking sector? How does a bank decide whether a loan is defaulted due to the coronavirus pandemic or not? To begin with, there are chances of rampant misuse of the definition by companies.
BUSINESS
Five questions on Government’s Rs 3 lakh crore MSME collateral-free loan scheme
MSMEs are one of the major employers in the Indian economy. This segment needs assistance in the present crisis. But is this Rs 3 lakh crore loan scheme really beneficial for MSMEs? What will be the implications in the banking system?
