- 17 PUBLIC SECTOR BANKS MAKE LOSSES IN DECEMBER’2017 QUARTER: Out of the 22 Public Sector Banks, 17 Public Sector Banks have made losses during the December’ 2017 quarter. Provisions for bad loans have taken the toll on their profit margins. Provisions of these 17 banks almost doubled over the same quarter last year to Rs. 60,742 crore. These 17 banks put together have a total loss of Rs. 18,943 crore for December 2017 quarter. Whereas the remaining 5 banks have a cumulative total profit of Rs. 850 crore. Compared to this, 6 major private sector banks have made a cumulative total profit of Rs. 10,082.61 crores for the same period with HDFC Bank alone making a profit of Rs 4,642.60 crore.
- PNB INCIDENT SHOWS VULNERABILITY OF INDIAN BANKING SYSTEM: The Associated Chamber of Commerce & Industry of India ( ASSOCHAM) has criticised the functioning of Public Sector Banks in a first reaction to the $ 1.8 billion fraud that took place in Punjab National Bank. The detailed statement says “Alleged fraudulent transactions worth Rs. 11,300 crore from a single branch of Punjab National Bank with connivance of the junior officials shows the vulnerability of public sector banks”. ASSOCHAM further states “ the said fraud shows how the risk management is lacking in these entities and how a chain of command system was not there or was not followed”
- RBI’S NEW NPA RESOLUTION: The Apex bank in a dramatic move has discontinued the existing programmes for banks to restructure their defaulted large loans, such as Corporate Debt Restructuring (CDR), Sustainable Structuring of Stressed Assets(S4A), and Strategic Debt Restructuring (SDR) and made the Insolvency & Bankruptcy Code as the main tool to deal with defaulters. Now the Banks have been asked to report credit information, including classification of an account as Special Mention Account (SMA) to Central Repository of Information on Large Credits(CRILC) on all borrowers having an aggregate exposure of Rs. 5 crore and above on a weekly basis.
- PNB FRAUD CASE: ICAI TO LOOK INTO AUDITORS’ ROLE: Chartered Accountants’ apex body ICAI will review the $ 1.80 billion fraud at Punjab National Bank to look at whether there have been any lapses on the part of auditors and has sought information from SEBI and from the investigation agencies.
- NO LTCG TAX IF U SELL SHARES OR MUTUAL FUND UNITS BEFORE 31ST MARCH 2018: The proposed Long-Term Capital Gains ( LTCG) tax on equity in the union budget 2018 came as a blow to investors. However any LTCG earned till March 31, 2018 will not be taxed, as the provision of 2018 Budget are effective from 01/04/2018 .
- PUBLIC SECTOR BANKS NEED Rs. 2.06 TRILLION CAPITAL FOR 8—9% CREDIT GROWTH IN FY 19: Public Sector Banks may need capital of Rs 2.06 trillion ( or Rs 2.06 lakh Crore) for a credit growth of around 8 to 9% for the financial year 2019. This is as per a report released by India Ratings and Research.
- 6 BILLION HIDDEN $ BAD LOANS SPOTLIGHT INDIAN BANKING STRESS: Reserve Bank of India in its audit has unearthed about 3.6 billion $ (Rs. 232 billion) of bad loans in the books of State Bank of India. This shows the under reporting of bad loans in the financial sector.
- ATMS CAN NOW VERIFY TRANSACTIONS VIA AADHAAR: The ATMs are set to become smart. Banks are replacing the existing ATMs with new digital machines which are compact and come with a 15 inch tablet like multi touch screen and these can perform Aadhaar based biometric authentication and all other transactions via net banking also.
This post first appeared on IMPACT OF DEMONITIZATION OF CURRENCY IN INDIA IN 2016, please read the originial post: here
