India's savings are going down and government is also a dis-saver. Hence, India needs to find ways to increase real savings and investments in the country
On Wednesday, a report said that due to provisions of penalty on non-maintenance of minimum balance, SBI had closed 41.16 lakh savings bank accounts between April 1, 2017 and January 31, 2018.
Earlier this week, the Reserve Bank has stopped banks from issuing LoUs and Letters of Comfort for trade finance for imports into the country.
Inconsistency in advance tax payments was a reason for this step, the report said.
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.
Last April, the nation's largest lender had re-introduced the penal charges on non-maintenance of average monthly balance after a gap of five years.
The move will benefit nearly 25 crore of the bank's customers.
The list includes international branches of Indian banks and some foreign banks.
Acting on a complaint by Satey Kumar, manager of RBI's Kanpur branch, the FIR was registered against the accused for sending fake Rs 1,000 and Rs 500 notes to the central bank.
PSBs have in the recent past expedited their loan recovery process, specifically against those loans that have turned bad.
More than 23 lakh customers reportedly received Rs 47 crore in their Airtel payments bank accounts, which they did not know had been opened.
The market breadth was in favour of the declines with 765 stocks advancing while 939 declined and 315 remained unchanged. On the other hand, in the BSE, 1199 stocks advanced and 1406 declined and 151 remained unchanged.
The top Sensex gainers were Videocon which jumped 5 percent followed by INOX Leisure, Vakrangee and Religare, each adding over 3 percent. IFCI added 2.8 percent in the morning trade.
Ashwani Gujral of ashwanigujral.com recommends buying Titan Company with a stop loss of Rs 810, target of Rs 840, Reliance Industries with a stop loss of Rs 900, target of Rs 925 and a buy also on Jubilant Foodworks with a stop loss of Rs 1990, target of Rs 2050.
SBI plans to sell a total of 15 such NPA accounts to recover Rs 988.95 crore, including the country's largest sweetener manufacturer Simbhaoli Sugars that has an outstanding of Rs 158.57 crore to the bank.
Giving the background for the penalty, the banking regulator said that the currency chest inspection of two branches of SBI revealed, inter alia, violation of the instructions issued by RBI.
The market breadth was in favour of the declines with 247 stocks advancing while 1452 declined and 315 remained unchanged. On the other hand, in the BSE, 428 stocks advanced and 2095 declined and 102 remained unchanged.
Credit Suisse continues to prefer private banks over PSU banks and has overweight calls on State Bank of India with a target of Rs 381 and Bank of Baroda with target of Rs184 while it is underweight on Bank of India with a target of Rs 122 per share.
TReDS is an online platform for facilitating the financing of trade receivables of MSMEs from corporate buyers through multiple financiers.
The PSU banking index cracked 2.87 percent after investigation deepened in the PNB fraud case. The largest contributor to the index fall was Bank of India which plunged 6.46 percent, hitting fresh 52-week low. Syndicate Bank ended lower by 5 percent.
Ashwani Gujral of ashwanigujral.com is of the view that one can buy BPCL and PVR and can sell SBI, ICICI Bank, DHFL and Canara Bank.
Banking sector during the week continued to be embroiled in the Punjab National Bank fraud.
While the nation's largest lender SBI raised its one year MCLR (marginal cost of fund-based lending rate) by 20 basis points (bps) to 8.15 percent, PNB increased its loan prices by 15 bps to 8.30 percent.
The bank found out these accounts after internal scrutiny and said that these accounts are not directly related to the PNB fraud but may help in the investigation.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell SBI, DLF and Axis Bank and can buy NTPC and Power Grid.