BUSINESS
PSU banks likely subscribed Rs 12,850 crore of CDs issued by IndusInd Bank on March 17
According to the Clearing Corporation of India data, IndusInd Bank raised Rs 11,000 crore worth of CDs on March 11 and Rs 1,850 crore on March 10
BANKING
Banks need to identify roadmaps for timely capital raising: DFS secretary Nagaraju
He also said that banks also need to do efficient allocation of resources besides striving to bring down intermediation costs
BANKING
IBA must drive innovation, strengthen regulation for Viksit Bharat: DFS secretary Nagaraju
Nagaraju highlights the need for the association to establish uniform ethical and operational standards, facilitate policy dialogue with the government
BUSINESS
Mumbai Police’s EOW may question RBI officials in the New India Cooperative Bank case
The questioning of RBI officials could be based on the inspection conducted on the cooperative bank, to examine what prompted the officials to give a positive report when there were discrepancies.
BUSINESS
Slower-than-expected inflation opens door wider to April rate cut
Retail inflation eased to a seven-month low of 3.61 percent in February, as food inflation eased further, according to data released by the government on March 12
BUSINESS
RBI starts industry-wide review of derivative positions after IndusInd Bank fiasco
The RBI wants to ascertain if more banks are in non-compliance of its derivative trade rules and also wants to compliance on the treasury front
BUSINESS
Torres Ponzi Scheme: EOW continues to receive 100-150 complaints per day
As per reports, the investigation is still going on the case and more than 10,000 complaints have been filed amounting to over Rs 177 crore.
BUSINESS
More arrests likely in New India Cooperative Bank case as probe gathers pace
EOW officials have confirmed to Moneycontrol that on March 11, the Mumbai police has conducted Polygraph Test, also called a lie detector test on Hitesh Mehta at Forensic Science Laboratory in Mumbai's Kalina. During the test, 50 questions were asked and reports of the test is expected on March 17, police officials said.
BUSINESS
Bankers fear strain on deposit mobilisation after IndusInd Bank derivative loss
As the accounting discrepancy has come to light in March, a busy period for deposit mobilisation, it could hurt banks efforts to garner large deposits, bankers say
BUSINESS
IndusInd Bank may take Rs 1,500 crore charge on derivatives portfolio adjustment
Kathpalia said that the external agency’s review is expected to be done by the fourth quarter of the current financial year and estimated the impact at 2.35% of the bank’s net worth as of the December FY25 quarter.
BUSINESS
Govt gets 20 queries each from merchant bankers, legal advisors for minority stake sales in PSU banks, financial firms
On February 24, the government had invited bids to appoint merchant bankers and legal advisers to sell part of the government's holdings in select public sector banks and public financial institutions through SEBI-approved methods, according to the Department of Investment and Public Asset Management's notification.
BUSINESS
Rate cuts don't become effective if liquidity is tight, says CRISIL Ratings' Dharmakirti Joshi
CRSIL ratings, in their report, expect that the central bank will 50-75 bpos in the financial year 2025-26, to support consumption and lower borrowing costs
BUSINESS
Despite liquidity concerns addressed by RBI, economists bet on another rate cut in April policy to aid growth
Economists also foresaw the huge further liquidity support by the RBI due to tight liquidity conditions. Usually, liquidity in the banking system gets tight in March and falls to higher deficit due to advance tax and GST outflows.
BUSINESS
Cut-off yield range on benchmark bonds in FY25 at auctions remain lowest in three fiscals
In FY22, the repo rate was lower at 4.00 percent and the RBI, after containing interest rates during the pandemic, was increasing it amid high inflation, hence yields were going up at a moderate rate. The next two financial years saw a higher yield on the government securities due to higher inflation and higher repo rate for a longer period.
BUSINESS
Banks' liquidity shortfall eases sharply to around Rs 20,000 crore, lowest since going into deficit in December
Economists had pegged the auction to provide around Rs 85,000-88,000 crore worth of liquidity into the banking system.
BUSINESS
Banks borrow lowest funds via daily VRR auctions on March 4 since inception of instrument
However, despite today’s borrowing by banks was lowest, but the banks have borrowed less amount at 21 auctions than notified amount, out of total 31 auctions.
BUSINESS
Without embracing technology, companies will not exist, says KV Kamath
KV Kamath said companies should recognise the speed of changing technology in the context of risk, so that they are not left behind. He said managements must counsel their companies about the rate of change of Artificial Intelligence, and how businesses are going to use it.
BUSINESS
Private banks more successful than PSU banks in attracting deposits this fiscal
A lower deposit growth this fiscal has meant that PSU banks have lost the deposit market share by 10-70 basis points (bps) on-year, the IIFL Capital report said.
BUSINESS
Rebound in December GDP, likely lower February inflation spurs hopes of another RBI rate cut in April
The GDP growth rebounded in the December quarter after sinking to a seven-quarter low, and with a lower reading on inflation expected in February, economists are penciling in a higher probability of a RBI rate cut in April.
BUSINESS
MC Explainer: How the RBI’s USD/INR swap auction may ease liquidity crunch
The central bank is set to conduct $10 billion USD/INR Buy/Sell swap auction for a tenor of 3 years on February 28. This move will inject rupee liquidity for longer duration in the banking system of roughly Rs 85,000 crore.
BUSINESS
Currency derivatives open interest rises as rupee volatility spurs hedging
According to the Bloomberg data, the Indian rupee has depreciated to 87.2025 against the US dollar as on February 26, as compared to 83.8213 on October 3, 2024.
BUSINESS
Microfinance sector’s portfolio at risk 31-180 days rises sharply to 6.4%
Banks and small finance banks’ PAR 31-180 rose to 6.8 percent and 7.2 percent respectively as of December 31, 2024, compared to 2.3 percent and 2.8 percent, a year ago.
BUSINESS
FPI funds in Govt bonds fall as gap between India, US bond yields narrows
FPI investment in Fully Accessible Route (FAR) securities stood at Rs 2.66 lakh crore as on February 24, as compared to Rs 2.75 lakh crore as on February 7.
BUSINESS
Economists predict repo rate at 5.75% by mid-2025 amid concerns over growth
The hope for another rate cut has increased after the concerns showed by the monetary policy committee (MPC) members in the February policy minutes, and easing inflation trajectory.
