BUSINESS
RBI Governor Shaktikanta Das launches Round 2 of liquidity bonanza; this time for small NBFCs, MFIs
These measures are significant for microlenders since these companies have been gasping for money.
BUSINESS
COVID-19 lockdown | NBFC-MFIs stare at liquidity shock: Will RBI step in?
The lock-down announced in late March to fight Covid-19 spread has hit the industry bad. NBFC-MFIs are also looking at the likelihood of high bad loans as lock-down could result in major income loss of small borrowers.
BUSINESS
RBI’s 10% cap for banks to invest in TLTRO funds lacks clarity
This means any particular bank will not be able to consider the same company which has already benefited from the window for further funding unless the bank borrows more to stay within the limit.
BUSINESS
Coronavirus impact | MFIs sitting on a ticking time bomb as loan defaults likely to go through the roof
NBFC-MFIs are in bigger trouble since, under RBI rules, these companies have to give moratorium to borrowers. But, at the same time, NBFCs are not eligible to get moratorium from banks. Thus, it is a double whammy for these firms.
BUSINESS
India GDP: Are private forecasters taking a shot in the dark?
There is a great deal of uncertainty at this stage on the COVID-19 economic fallout. The future course that the Indian economy will take highly depends on the fiscal response the government will adopt and the extent of the virus infections.
BUSINESS
Is RBI’s liquidity shot failing to reach small firms gasping for money?
According to primary dealers and bankers, mainly AAA rated top companies got money from banks while smaller firms have been largely left out.
BUSINESS
MPC minutes: Virus’ ‘dance of death’, uncertainty on post-COVID-19 world and a promise to fire again
In the words of Michael Patra, deputy governor of the RBI, the coronavirus’ 'danse macabre' is taking a catastrophic toll on human lives, causing economic disruptions, and “in these challenging circumstances, monetary policy has to assume an 'avant garde' role.
BUSINESS
PBOC buys 1.1% HDFC shares on behalf of Chinese sovereign wealth fund, Saudi picks 0.7% stake: Deepak Parekh
Saudi Arabian Monetary Authority (SAMA) too have picked up 0.7 percent in HDFC on behalf of Saudi sovereign wealth fund, Parekh said. SAMA’s name isn’t reflecting in the names of major shareholders since the holding is less than one percent of the company.
INDIA
Thrissur Pooram is not happening this year due to the virus. That is a big deal in Kerala
There is a deep emotional connect to Keralites to Thrissur Pooram. Every year, days before the event, people flood the cultural capital of the state (as Thrissur is known) and leave only after the spectacle is over. But this year things are different.
BUSINESS
How the Wadhawans offer a peek into the lives of powerful crony capitalists
According to the Enforcement Directorate, the Wadhawans had real estate dealings with gangster Dawood Ibrahim's aide and drug trafficker Iqbal Mirchi, whom they allegedly met in London.
BUSINESS
Loan moratorium rule: NBFCs are caught between a rock and a hard place. Will RBI pay heed?
According to RBI data, outstanding loans to NBFCs from banks stand at Rs7 lakh crore. On a year-on-year basis, this exposure has grown by 22 percent. That is a significant exposure.
BUSINESS
Lockdown impact: RBI report confirms prolonged pain for rural economy
Due to the coronavirus-induced lockdown, most economic activities have come to a standstill.
BUSINESS
With 61% of loan book tied up in high-risk microcredit, Bandhan Bank feels the heat of coronavirus lockdown
The nationwide lockdown to fight COVID-19 presents a major crisis for banks with high exposure to the microcredit segment. With many small businesses on the verge of shutting down, loan repayments may stop.
BUSINESS
RBI holds off key additions to HDFC Bank board, fuels buzz of in-house successor to Puri
The RBI decision is significant considering that both Jagdishan and Zaveri are seen as strong contenders to the post of HDFC Bank’s managing director after Puri retires this October
BUSINESS
SBI cuts savings deposit rate to lowest-ever 2.75%: More banks to play safe, FDs will be next
SBI’s cut in savings rate will likely be followed up by cut in fixed deposit rates. Most banks will take cues from SBI’s savings deposit cut soon and later do the same in their fixed deposit rates.
BUSINESS
Coronavirus impact: Spike in unemployment rate in March points to more pain for Indian economy
Surveys conducted by the Reserve Bank of India have painted a grim outlook on industries and consumer confidence.
BUSINESS
IndusInd Bank Q4 deposits fall 7%, CASA ratio declines
Analysts have cautioned that the bank will have to find ways to arrest the fall in deposits by restoring customer confidence. Besides IndusInd, RBL Bank too had seen about 8 percent slide in deposits in January-March quarter.
BUSINESS
RBI loan moratorium scheme: Banks, HFCs tread cautiously on EMI deferral offer
According to bankers, there has been an increase in the number of customer queries related to the moratorium scheme in the past few days.
BUSINESS
Kotak Mahindra Bank's deposits grow by 12% in Jan-March quarter despite Yes Bank hangover
Until Yes Bank's collapse, new-age private banks were seen as preferred entities for several institutions, including government entities, due to competitive interest rates and tech-enabled customer services.
BUSINESS
RBI industrial outlook surveys confirm what bank NPA charts have been telling us for long
According to an RBI survey, consumer confidence, as measured by the current situation index, in early March 2020 remained broadly close to the all-time low.
BUSINESS
Yes Bank crisis, faltering economy weigh heavily on IndusInd Bank. Can it weather the storm?
On Friday, global rating agency, Moody’s placed IndusInd Bank's domestic and foreign currency issuer ratings of Baa3/P-3 under review for downgrade. This reflects likely deterioration in asset quality in a worsening economy
BUSINESS
As curtains fall on six PSU banks, old-timers walk down the memory lane with a mix of nostalgia and grief
As six Indian public sector banks (PSBs), some of which have been in existence for over a century, ceased to exist on April 1 after their amalgamation with bigger PSBs, old timers are looking back at the halcyon days of these institutions wistfully.
BUSINESS
Exclusive: PNB expects Rs 5,000-crore fresh slippages in Q4; no lay-off post merger, says MD & CEO Mallikarjuna Rao
PNB expects about 75 percent of the fresh slippages to come from the SME (small and medium enterprises) and retail portfolios in Q4. The scenario on loan growth and future asset quality depends on how long the COVID-19 impact will be felt on the economy
BUSINESS
SBI to deduct a day’s PL encashment and salary from all employees for PM CARES Fund
These deductions will be effected immediately, the circular says. If an employee wants to opt out of the scheme, he will have to formally inform superiors.
