In some good news this past week, SBI reduced charges for the non-maintenance of Average Monthly Balance in savings accounts, effective April 01, 2018.
The CBI today opposed in the Delhi High Court the bail plea of Karti Chidambaram in the INX Media corruption case, contending that he has already destroyed evidence being an "influential" person.
Public sector banks (PSBs) are planning to tighten the corporate lending norms for loans above Rs 250 crore and transfer such loans under the consortium of banks for monitoring, discouraging multiple banking arrangements.
Foreign branches of Indian banks, which are already witnessing some decline in business and increased borrowing costs will also be hurt, said a report by SBI's economic research wing.
The market breadth was in favour of the advances with 957 stocks advancing while 668 declined and 383 remained unchanged. On the other hand, in the BSE, 1176 stocks advanced and 888 declined and 108 remained unchanged.
The CBI alleged that firms controlled by Modi and Choksi obtained fraudulent LoUs and letters of credit (LCs), worth over 13,000 crore, from PNB in connivance with some officials of the bank.
The Mumbai branch of Punjab National Bank had issued as many as 1,213 letters of undertaking (LoUs) fraudulently for the group of companies belonging to Nirav Modi since March 2011.
Earlier this week, the Reserve Bank has stopped banks from issuing LoUs and Letters of Comfort for trade finance for imports into the country.
In a FIR filed with BS&FC, two LoUs were issued by PNB employees Gokulnath Shetty and Hemant Kharat, who were also named in the complaint filed against Nirav Modi’s companies, to Chandri Papers and Allied Products worth Rs 9,000 crore.
The agency had yesterday informed the court it had added 'criminal breach of trust' charge to the case related to diamond trader Mehul Choksi's firms.
Speaking publicly for the first time on the Rs 13,600-crore fraud that broke out at Punjab National Bank, Reserve Bank of India Governor Urjit Patel today blamed "deep fissure in the landscape of banking regulatory terrain" that allowed the scam to take place.
Almost 26 banks, including PNB, had sanctioned credit limits to Nirav Modi's companies, and the total amount may swell to Rs 3,000 crore
However, the central bank has allowed issue of letters of credit (LC) and bank guarantees for trade credit for imports into India.
The market breadth was in favour of the declines with 755 stocks advancing while 940 declined and 324 remained unchanged. On the other hand, in the BSE, 1137 stocks advanced and 1467 declined and 153 remained unchanged.
Punjab National Bank and Canara Bank were biggest losers among PSBs, shedding 4 percent each.
Among others, the agency has arrested Gokulnath Shetty, the then deputy manager (now retired) of PNB, in connection with issuance of fraudulent letters of undertaking (LoUs) to Choksi-owned firms.
Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued subject to compliance with RBI provisions
Fugitive jeweller Nirav Modi obtained his first fraudulent guarantee from PNB's Brady House branch in Mumbai on March 10, 2011 and managed to get 1,212 more such guarantees over the next 74 months, Finance Minister Arun Jaitley said today.
This takes the Delhi-based lender’s total exposure to one of country’s biggest banking frauds up to Rs 13,640 crore from the earlier estimate of Rs 12,700 crore.
PSU Bank index was up 3.5 percent and Nifty Bank index gained 1 percent or 300 points, outperforming the Nifty that rose 0.3 percent.
The Nifty PSU banking index jumped 3.66 percent led by Bank of India which zoomed over 9 percent intraday on the back of recovery of Rs 7,000 crore from other banks. Punjab National Bank was up 4.3 percent while Andhra Bank zoomed over 5 percent.
The International Monetary Fund has said banking reforms like insolvency code and recapitalisation will be ineffective unless governance standards are improved.
In an interview with Moneycontrol, Rajat Verma, MD and Head of commercial banking India, HSBC, said the share of PSBs in large corporate lending will reduce over next 5 years.
The list includes international branches of Indian banks and some foreign banks.
The RBI has ALSO asked all banks for details of the LoUs they had written.