Moneycontrol Be a Pro
Get App
you are here: HomeNewsBusiness
Last Updated : Jul 15, 2019 07:57 PM IST | Source:

Banking wrap: Lenders unhappy with NCLAT's Essar Steel order, SBI offers free fund transfers online

Aditya Puri lists top qualities for his successor, NABARD mulls risk-based supervision for regional rural and co-operative banks.

Moneycontrol News @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Top lenders expressed their disappointment over NCLAT order in Essar Steel case this week, which ruled out the distribution ratio decided by the Committee of Creditors, and asked for more equitable share among operational creditors. Its been more than two quarters since the resolution has been stuck in IBC, which is adding to lenders' discontentment. They are now second guessing the entire process.

Essar Steel: Parity with operational creditors a huge disincentive, says SBI Chairman

The National Company Law Appellate Tribunal's (NCLAT) recent judgement in the Essar Steel case, which draws parity between secured and operational creditors, may drive away banks from approaching the Insolvency and Bankruptcy Code (IBC) route for resolutions going ahead. While lenders are gearing up to challenge the NCLAT's ruling in Supreme Court, there is hope that amendments will be made in the IBC law to ensure faster resolutions in future.

NBFC crisis not a systemic issue but may take time to resolve: Amitabh Chaudhry, Axis Bank MD

The ongoing crisis in non-banking finance companies (NBFC) is related to specific companies and not for the sector as a whole, but the time taken to resolve the issue is becoming a matter of concern, said Amitabh Chaudhry, Managing Director and Chief Executive Officer of Axis Bank. Chaudhry said that the promoters of NBFCs that are in need of capital should look at bringing in equity infusion without further delay. He added that relying on regulatory and government intervention to bail out sick NBFCs would seem unfair.

SBI waives off online RTGS, NEFT, IMPS transfer charges

The country's largest lender, the State Bank of India (SBI) has waived off charges on funds transfers made via RTGS and NEFT for its YONO app, internet and mobile banking customers from July 1. The bank will also give free access to IMPS for the same set of customers from August 1. Other lenders do not seem in a hurry to follow suit.

HDFC Bank's Aditya Puri reveals an important trait he would want in his successor

The country's largest private lender, HDFC Bank , is all set to search for its next managing director and chief executive officer. While laying down a brief outline for the criteria, its current head Aditya Puri suggested that knowledge of technology and digital drive would be among the top traits that the lender will focus on. "He has leadership, he should command and not demand respect, and has a good idea about technology and fundamental knowledge about the economy," Puri said while speaking after the bank's annual general meeting on July 12."Digital is important not only for him but for everybody. The world is changing," he added.

NABARD mulls risk-based supervision for regional rural & co-operative banks

The National Bank for Agriculture and Rural Development (NABARD), which oversees regional rural banks and co-operative banks, is planning to move to risk-based supervision to assess the health of these lenders that operate at the grassroot level.The new framework will be on the lines of norms laid down by the Reserve Bank of India for scheduled commercial banks.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jul 13, 2019 04:01 pm
Follow us on
Available On