- SBI UNLIKELY TO MEET FULL YEAR TARGET OF NBFC LOAN PURCHASE: State Bank of India is unlikely to meet its full year target of NBFC loan purchase as it is selectively buying portfolios in the Housing, Agriculture and MSME categories. It feels there are not many good and quality assets worth buying. This fiscal, SBI has so far bought loans worth only Rs.17,000 crore from Non-Banking Finance Companies as against the set target of Rs. 45,000 crore.
- INDIA’S BAD LOANS RATIO IS THE WORST IN THE WORLD: India holds the dubious distinction of having the worst Non-Performing (Bad loans) loan ratio among the world’s major economies. Reserve Bank of India in its latest report states that the bad loans ratio of banks fell for the first time since the year 2015. It has surpassed Italy’s bad loan ratio. Italy has successfully managed to reduce its bad loan ratio.
- REALTY COMPANIES CAN OPT FOR OLD OR NEW RATES OF GST FOR THEIR ONGOING RESIDENTIAL PROJECTS: Real Estate Firms will have the option of adopting a lower rate of Goods & Services Tax (GST) without Input Tax Credit (ITC) or go for the existing rate with ITC. This applies only to the on-going projects where the construction and actual bookings have started before 1ST April 2019 but are yet to be completed. Projects beginning on or after 1ST April 2019 will invariably fall into lower GST rate regime. In our opinion if the developer opts for GST with ITC benefit then he has to offer the flats at higher GST rates and customers may not be willing to purchase at higher GST rate.
- RBI SAYS NO TO IDBI BANK NAME CHANGE PROPOSAL: The Reserve Bank of India has turned down IDBI Bank’s proposal to change its name from IDBI Bank to LIC IDBI Bank or LIC Bank following acquisition of its major stake by LIC. Earlier this month, RBI changed the categorisation of IDBI Bank to a private Sector lender.
- SBI CUSTOMERS CAN NOW WITHDRAW CASH FROM ATM WITHOUT THE USE OF DEBIT CARD: Customers of State Bank of India will no longer require debit cards to withdraw money from ATM. State Bank of India has announced that the customer can generate a One-Time-Pin (OTP) through their mobile application and use the PIN to draw money from the ATM. The service is currently made available at 16,500 ATMs. And very soon it will be available in more than 60,000 ATMs across the country.
- BANK OF BARODA LAUNCHES CRECHE/DAYCARE FACILTY FOR CHILDREN OF EMPLOYEES: Bank of Baroda has become one of the first Public Sector Banks to launch a crèche/child day care facility for children of its employees. It has launched the facility at its Mumbai Corporate Office which houses more than 1,500 employees. The bank intends to launch more of such day care centres in the near future. This initiative is designed to help its employees to save time and reduce stress of finding right day care centres for their children. The bank will bear 60% of the cost with the 40% to be borne by the respective employee.
- DEUTSCHE BANK IS PLANNING TO SET UP A BAD LOAN BUYING UNIT IN INDIA: Deutsche Bank is planning to set up a unit in India to buy and reorganise bad loans in India. It seeks to make profit from an unprecedented bad-loan clean-up in India with one of the worst Non-Performing loan ratios. The Bank felt the need to have its own Asset Reconstruction Company (ARC) to buy and reorganise Non-Performing Loans as current Indian rules restrict overseas investors from buying soured loans directly from investors in India.
- PRIVATE BANKS MAINTAIN CREDIT GROWTH OF 20%: The credit growth of private banks in the third quarter of the present financial year touched 22% year-on year. This is for the fifth consecutive quarter that the private banks have maintained the growth rate at 20% or more. On the other hand the growth rate of Public sector banks remained subdued at 8.4%.
This post first appeared on IMPACT OF DEMONITIZATION OF CURRENCY IN INDIA IN 2016, please read the originial post: here
