26.06.2020: Today's Banking / Financial News at a Glance
🍒 Bank of India posts net loss of ₹3,571 crore in Q4 on sharp rise in loan-loss provisions : Bank of India (BoI) slipped into the red, reporting a net loss of ₹3,571 crore in the fourth quarter ended March 31, 2020, due to a sharp rise in loan-loss provisions. The public sector bank had reported a net profit of ₹252 crore in the year-ago period and ₹106 crore in the preceding quarter.Atanu Kumar Das, MD and CEO, attributed the loss to his bank making aggregate provisions over and above what is required as per IRAC (income recognition and asset classification) norms. The bank would have posted a profit but for this provisioning, he added.Loan-loss provisions in the reporting quarter soared to ₹7,316 crore against ₹1,503 crore in the year-ago quarter. In the current quarter, due to uncertainty regarding recovery, the bank made additional provisioning of ₹3,941 crore in respect in six non-performing asset (NPA) accounts.Das expects BoI to return to profit in the April-June quarter. He projected a credit growth of 8-9 per cent in FY21.While net interest income was down 6 per cent year-on-year at ₹3,793 crore (₹4,044 crore in the year-ago quarter), total non-interest income was up 14 per cent at ₹1,688 crore (₹1,479 crore). The bank extended Covid-19-related moratorium in the case of borrower accounts aggregating ₹74,445 crore. It extended asset classification benefits to accounts aggregating ₹4,145 crore and made a provision of ₹414 crore thereon. - Business Line
🍒 IOB posts ₹144-crore net profit in Q4 : Indian Overseas Bank (IOB) has reported a turnaround in its operations as the Chennai-headquartered PSB posted a net profit of ₹144 crore (includes the extraordinary income of ₹53 crore) for the quarter ended March 31, 2020, compared with a net loss of ₹1,985 crore in the year-ago quarter. The bank has recorded a profit after reporting a net loss for 18 quarters. While the bank’s net NPA has dropped below 6 per cent in the past two quarters, it has reported net profit for March 2020 quarter, indicating the possibilities of coming come out the RBI’s PCA framework soon.“Higher operating profit and lower provisions have helped post a strong net profit in March 2020 quarter. It is a great turnaround and landmark event for the bank as several initiatives taken in recent months have helped,” said Karnam Sekar, Managing Director & CEO of IOB.Operating profit of the bank grew by 6 per cent to ₹1,197 crore against ₹1,131 crore in the year-ago quarter. Interest income was lower at ₹4,442 crore (₹4,556 crore), while non-interest income was higher at ₹1,095 crore (₹917 crore).Provisions and contingencies were lower at ₹1,060 crore (₹4,502 crore). Gross NPA declined to ₹19,913 crore with ratio of 14.78 per cent as on March 31, 2020, against ₹33,398 crore with ratio of 21.97 per cent a year-ago. Total recovery was ₹5,386 crore in Q4 of FY20, while the total fresh slippage for the same period stood at ₹1,350 crore.- Business Line
🍒 Exim Bank profit rises 51% in FY20 : Export-Import Bank of India (Exim Bank) reported a 51 per cent increase in net profit at ₹124 crore in the year ended March 31, 2020, against ₹82 crore in the previous year. The bank’s loan portfolio, including export finance, term loan to exporters and overseas investment, increased by 6.23 per cent year-on-year (yoy) to ₹99,446 crore as of March-end 2020 from ₹93,617 crore as of March-end 2019.Exim Bank is a wholly-owned Government of India financial institution that provides financial assistance to exporters and importers. The non-funded portfolio, comprising financial guarantees, and project-related and other guarantees, increased by 12.59 per cent to ₹15,869 crore as of March-end 2020 from ₹14,096 crore as of March-end 2019. - Business Line
🍒 Small businesses, corporates biggest beneficiaries of loan moratorium: Canara Bank chief : Public sector lender Canara Bank has 17% of its loan book under repayment moratorium, with small businesses and corporates being the biggest beneficiary of this scheme, LV Prabhakar, chief executive officer, Canara Bank told Mint in an interview. “About 19% of the borrowers (by number) have utilised the repayment deferment of interest and instalment," said Prabhakar.While 38% of the bank’s small business borrowers have opted for the moratorium, about 34% of corporate borrowers have utilised it. Besides, 5% retail borrowers and 3% of non-banking financial companies (NBFCs) have taken the deferment benefit. All these numbers are as of 31 March and Prabhakar said that the bank will reassess these after 30 June and will therefore have more clarity in the first week of July. “In March we gave the moratorium option to all our borrowers, but subsequently because of other facilities like covid-19 assistance loans, targeted long-term repo operations (TLTRO) funds, their liquidity problems have eased," he said. - Live Mint
🍒 UCO Bank says 25-30 per cent of borrowers opted for moratorium : Public sector UCO Bank said on Thursday that 25 to 30 per cent of its borrowers have opted for the moratorium which was allowed by the Reserve Bank of India (RBI). A senior UCO Bank official said that most of the borrowers continue to make monthly payments and it shows the quality of those who have taken loans from the bank.“Nearly 25 per cent to 30 per cent of the bank’s borrowers have opted for the moratorium. It only shows the quality of borrowers,” the official said.The RBI has extended the moratorium on loan repayment by another three months which ends in August.The Supreme Court has recently made an observation that banks are charging ‘interest on interest’ from those who opted for the moratorium.To this, the official said that RBI had already submitted an affidavit with the apex court stating that waiver of interest will risk the financial viability of the banks. UCO Bank has also signed an agreement with SBI Life Insurance for selling the insurer’s policies from its branches across the country.- Business Line
🍒 Federal Bank to buy another 4% stake in its JV from IDBI Bank for Rs 80 cr : South-based lender Federal Bank will be paying over Rs 80 crore to buy additional four per cent stake in its life insurance joint venture IDBI Federal Life Insurance, a top official has said. The stake buy from the state-run IDBI Bank will take Federal Bank's stake in the 12-year-old company to 30 per cent, the maximum permissible level for a lender under the regulations, its managing director and chief executive Shyam Srinivasan told PTI.Without giving targeted timelines, he said IDBI Bank, which holds 48 per cent stake in the venture, will be selling 27 per cent stake in the venture to get its holding down to 21 per cent.Federal Bank will be purchasing 4 per cent, while their Dutch partner Ageas Insurance International NV will be buying 23 per cent to take its ownership to 49 per cent, the maximum permissible for a foreign partner in a life insurance venture."The valuations have been decided between partners by appointing third parties. IDBI Bank will reduce either to 25 or 21 per cent depending on whether we buy or not," he said and added that "we will take our stake to the maximum permissible 30 per cent and it will take about Rs 80-90 crore for the 4 per cent stake." - Business Standard
🍒 Yes Bank launches mobile payment app ‘Yuva Pay’ : Yes Bank launched its digital wallet solution ‘Yuva Pay’ in partnership with UDMA Technologies to enable contactless payments for its customers. The digital wallet issued under minimum KYC regulations to Yes Bank will offer bill payments via Bharat Bill Pay and provide Unified Payments Interface (UPI) facility to customers.Through the app, customers can pay their utility bills (including municipal, house, water tax, electricity, LPG, DTH, Mobile bill, license fees), make insurance renewals, FASTag recharges, EMI payments, and use the app to make payments at retail outlets. “The program also aims to make the low income groups transition to digital and contactless transactions by enabling wider access to secure electronic payment services," said Anita Pai, chief operating officer, Yes Bank. - Live Mint
🍒 Private banks: Now, RBI can frame reconstruction scheme without putting moratorium in public domain : Call this a fallout of the recent YES Bank debacle and its subsequent rescue episode. The Centre has now decided to empower the Reserve Bank of India (RBI) to handle mishaps in private banks (any banking company) without allowing any loss of public confidence and disruption in financial system. The much talked about Banking Regulation (Amendment) Ordinance 2020 – which was approved by Cabinet on Wednesday — will also allow RBI to prepare a reconstruction scheme without having to first make an order of moratorium on barring deposit withdrawals, official sources said.- Business Line
🍒 Aditya Puri took home Rs 180 crore in FY20 : HDFC Bank chief Aditya Puri took home a total remuneration of Rs 18.9 crore as against Rs 13.7 crore last year. During the year, which was last full year as CEO, Puri also exercised options of Rs 161 crore. Puri, who has led HDFC Bank since its inception in 1994, will be stepping down in October this year as he turns 70. During his term, the bank has grown from a one-branch operation in 1995 to become India’s largest private bank with a market cap of Rs 5.7 lakh crore. Last year, the lender increased its profits by 25% to Rs 26,257, which is more than rest of the sector. According to the bank’s annual report, Puri’s fixed remuneration was Rs 15.9 crore, perquisites Rs 2.2 crore and other benefits Rs 79.8 lakh. Stock options exercised this year at Rs 161 crore were almost four times last year’s Rs 42 crore. - Times of India
🍒 Govt steps in to avoid another PMC Bank like fiasco, aims to ensure proper regulation of co-op banks : The government on Wednesday fast-tracked its plan to protect the interest of small depositors by deciding to bring urban as well as multi-state co-operative banks under regulations of the Reserve Bank of India (RBI) through an ordinance. Briefing the media after the Cabinet meeting on Wednesday, information and broadcasting minister Prakash Javadekar said there are 1,540 urban cooperative and multi-state co-operative banks with 8.60 crore depositors, having total savings of about Rs 5 lakh crore. “Depositors will feel a lot safer after this move,” the minister said. The Cabinet has also approved a proposal to extend an interest subsidy of 2% for 12 months through May 31, 2021 to small-time entrepreneurs in the vulnerable sections of the society under the Mudra (Sishu) scheme. The move will cost the government Rs 1,542 crore. - Financial Express
🍒 RBI staff union hails proposed ordinance on co-operative banks : The All-India Reserve Bank Employees’ Association (AIRBEA) has welcomed the decision of the Union Cabinet to promulgate an ordinance to bring the 1,482 urban and 58 multi-state co-operative banks under the supervision of the Reserve Bank of India, which would protect the interests of an estimated 13.5 crore depositors. “We are particularly happy since we have been demanding this from the late 1990s when the scam at the Madhavpura Mercantile Co-operative Bank in Gujarat pushed co-operative banks across the country into a critical situation, several had folded up, and depositors lost precious money,” Samir Ghosh, General Secretary of AIRBEA, wrote in a letter to the RBI Governor. - Business Line
🍒 CBI chargesheets Rana Kapoor, Kapil Wadhawan in YES Bank fraud case : The Central Bureau of Investigation has filed a chargesheet against Rana Kapoor, Kapil Wadhawan and their kin in the YES Bank fraud case. A CBI statement said that the chargesheet names Dewan Housing Finance Limited, Kapil Rajesh Wadhawan, Dheeraj Rajesh Wadhawan, Belief Realtors Private Limited, RKW Developers Private Limited, DOIT Urban Ventures (India) Private Limited, Roshni Kapoor and Rana Kapoor. The chargesheet was filed in the court of Special Judge, CBI City Sessions Court, Mumbai. In March this year, the CBI had linked the Kapoors and Wadhwans to a YES Bank-DHFL diversion of ₹1,350 crore. They were charged with corruption, cheating, bribery, and criminal misconduct.- Business Line
🍒 The ‘threat’ posed by 96,000 rural co-operatives outside RBI compass : Nine months after the Punjab and Maharashtra Co-operative (PMC) Bank fiasco, the Cabinet has approved an ordinance to bring urban and multi-State cooperative banks under the supervision of the RBI, to ease depositors’ concerns. With numerous co-operative banks going bust time and again, the move to strengthen these banks by improving governance and oversight through the RBI is welcome. But only 1,544 urban co-operative banks (including 58 multi-state cooperative banks), will be covered under the ordinance. There are 96,000-odd rural co-operatives that constitute about 65 per cent of the total assets of co-operatives. Among them, Primary Agricultural Credit (PAC) Societies (about 95,000 in number as of March 2018) continue to remain outside the purview of the Banking Regulation Act, which is a cause for worry, given their wide presence in the remote hinterlands. - Business Line
🍒 SEBI slaps Rs 25 lakh fine on 5 persons for fraudulent trading : Capital markets regulator SEBI on Thursday imposed a penalty totalling Rs 25 lakh on five individuals for indulging in fraudulent trading in the shares of Cupid Trades and Finance Ltd. A penalty of Rs 5 lakh each has been levied on Devang Mukandray Patel, Sonal Devang Patel, Manishaben Maheshkumar Patel, Rajesh Kumar and Kishor Sharma. The regulator had conducted a probe into the trading activities of certain entities in the scrip of Cupid Trades & Finance for the period of January 2010 to December 2014. - Moneycontrol.com
🍒 Govt must support fintechs: Ficci-PWC report : The government should liaise with financial technology firms for distribution of financial benefits and relief measures amid the covid crisis, said a new report by industry body the Federation of Indian Chambers of Commerce and Industry (Ficci) and multinational professional services firm PwC. “The need for digital awareness and presence is prominently recognized by individuals, businesses, and governments alike. Fintechs can act as enablers for the banking and financial sector, playing a crucial role in ubiquity and adoption of digital financial services. A few measures related to policy and regulation can support the fintech sector during the ongoing crisis," the report said. - Live Mint
🍒 With easing of curbs, Indian banks in UK cautiously optimistic about future : With British Prime Minister Boris Johnson announcing further easing of economic and social lockdown enforced by the Covid-19 pandemic— to come into effect from July 4 onwards — Indian banks operating in the UK are cautiously optimistic about business returning to near normal in the foreseeable future. Following the UK government last week lowering the level of alert from 4 to 3 — on a scale of 5 — and relaxing social distancing rules, Loknath Mishra, managing director and chief executive of ICICI UK Plc, indicated: “We are experiencing a rise in the volume of NRI deposits and remittances.” - Business Standard
🍒 Indian money parked in Swiss banks down 6%; third lowest in over 3 decades : unds parked by Indian individuals and enterprises in Swiss banks, including through India-based branches, fell nearly 6 per cent in 2019 to 899 million Swiss francs (Rs 6,625 crore), annual data from Switzerland's central bank showed on Thursday. This marks the second consecutive year of decline in aggregate funds of Indian clients with all Swiss banks, taking the figure to the third lowest level in more than three decades since 1987 when the Swiss National Bank (SNB) began compiling the data. The total amount of CHF 899.46 million, described by SNB as aggregate 'liabilities' of Swiss banks or 'amounts due to' their Indian clients at the end of 2019, included CHF 550 million (over Rs 4,000 crore) of customer deposits; CHF 88 million (Rs 650 crore) held via other banks; 7.4 million (Rs 50 crore) through fiduciaries or trusts; and CHF 254 million (Rs 1,900 crore) as 'other amounts due to customers' in form of securities and various financial instruments. - Business Standard
🍒 IRDAI sets up panel on insurance for use drones : The Insurance Regulatory and Development Authority of India (IRDAI) has formed a working group to suggest insurance products covering the various risks involved in the use of drones. “There is an immediate need to make available suitable insurance products covering the various risks involved in the use of drones,” the insurance regulator said in a circular. Drones are emerging as one of the fastest growing technologies and are being used for a variety of purposes and were playing a ‘significant’ role in the present Covid-19 situation helping the authorities in several activities, IRDAIsaid. - Business Line
🍒 Dvara KGFS sets fund-raising target of ₹600 crore for FY21 : Dvara KGFS, a non-banking finance company focusesd on financial inclusion, has set a fund-raising target of ₹600 crore under debt route for FY21, to meet its disbursement plans for the year and fuel its growth and expansion needs. The announcement was made during a virtual press conference organised by the company on Thursday to highlight the digital banking facilities provided to people in the remote villages during the lockdown. Dvara KGFS said it has facilitated gross cash withdrawal transactions of more than ₹7 crore through its 300-odd branches since April 19 through an Aadhar-Enabled Payment System (AEPS). “We are happy that we were able to provide AEPS service to around 45,000 villagers and facilitate a gross cash withdrawal of more than ₹7 crore through our 300-odd branches in such a short span of time,” said Joby CO, CEO of Dvara KGFS. - Business Line
🍒 Bharti AXA Life rolls out combo product in Covid-19 times : Focussing on a customer-centric approach to its product development strategy, Bharti AXA Life Insurance has come up with a combo product that provides an all-in-one solution for life cover, hospitalisation, accident and critical illness amid the scare and spread of Covid-19 pandemic. This product has been designed solely based on customer feedback. “The new combo product ‘Health and Life Secure’ is a step in that direction to meet this need and has been rolled out based on the findings of a proprietary survey we did. This is expected to be a key differentiator as having all coverages in one plan will save customers from keeping separate policies and paying premium separately for them,” Manik Nangia, Chief Operating Officer, Bharti Enterprises - Financial Services, told BusinessLine in an interview. - Business Line
🍒 Power Finance Corporation sanctions over Rs 1 lakh crore loans for power projects in FY20 : State-owned Power Finance Corporation (PFC) on Thursday said it sanctioned loans over Rs 1 lakh crore for power projects during the 2019-20 financial year. Out of the Rs 1 lakh crore, it successfully disbursed Rs 68,000 crore loans during the last financial year, PFC said in a statement.PFC, under the administrative control of the Ministry of Power, is the largest non-banking financial corporation (NBFC) in power sector in India."PFC ended FY 2019-20 on a strong note despite numerous challenges, including outbreak of COVID-19 virus. The institution delivered a sound financial performance with loan sanctions of more than Rs 1 lakh crore along with loan disbursements of about Rs 68,000 crore in the last financial year," it said. - Moneycontrol.com
🍒 IIFL Finance share price rises 10% after promoter raises stake : IIFL Finance share price rose 10 percent intraday on June 25 after the promoter of the company increased their stake. On June 24 the company's promoter Nirmal Bhanwarlal Jain has acquired 0.12 percent stake in the company via open market increasing total shareholding of the promoter group to 25.06 percent..The share touched its 52-week high Rs 212.80 and 52-week low Rs 58.15 on 14 February 2020 and 03 June 2020, respectively. Currently, it is trading 61.63 percent below its 52-week high and 40.41 percent above its 52-week low. - Business Line
🍒 Bank of India share price falls 5% on Q4 loss : Bank of India share price declined 4.8 percent intraday on June 25 after the public sector lender reported a massive loss for the March quarter of 2020. The stock, which has corrected 40 percent in the last year, was trading at Rs 52.30, down 4.74 percent on the BSE at 1433 hours. - Business Line
🍒 IOB share price locked at 10% upper circuit on Q4 profit : Indian Overseas Bank (IOB) share price locked at 10 percent upper circuit on June 25 after the company posted net profit in the quarter ended March 2020. The company in the Q4 has reported net profit at Rs 143.8 crore against loss of Rs 1,985.2 crore in the same quarter last fiscal. - Business Line
🍒 Sensex ends flat, Nifty closes at 10,288 : The benchmark indices closed today's volatile session on a negative note. The Nifty finished the June F&O session at 10,288.90, down 16.40 points or 0.16 per cent. The BSE Sensex ended at 34,842.10, down 26.88 points or 0.08 per cent.Asian Paints, ITC, Eicher Motor were the top gainers. While, ICICI Bank, IndusInd Bank and Powergrid were top laggards. Nifty FMCG and Pharma ended in green zone, while IT and Media closed in red.
🍒 Rupee settles 7 paise higher at 75.65 against US dollar : The rupee erased its initial losses and settled 7 paise higher at 75.65 (provisional) against the US dollar on Thursday tracking positive domestic equities and foreign fund inflows. The rupee opened at 75.76 against the US dollar, but gathered strength and closed at 75.65, higher by 7 paise over its previous close. It had finished at 75.72 against the greenback on Wednesday.
🍒 Shares of Central Bank of India in Stock Market : 82% of moneycontrol users recommend buying Central Bank of India. In Bse, stocks quoted at Rs.17.27 against Prev Close Rs.17.44. In NSE, shares traded at Rs.17.25 against Prev Close Rs.17.40....
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🍒 Bank of India posts net loss of ₹3,571 crore in Q4 on sharp rise in loan-loss provisions : Bank of India (BoI) slipped into the red, reporting a net loss of ₹3,571 crore in the fourth quarter ended March 31, 2020, due to a sharp rise in loan-loss provisions. The public sector bank had reported a net profit of ₹252 crore in the year-ago period and ₹106 crore in the preceding quarter.Atanu Kumar Das, MD and CEO, attributed the loss to his bank making aggregate provisions over and above what is required as per IRAC (income recognition and asset classification) norms. The bank would have posted a profit but for this provisioning, he added.Loan-loss provisions in the reporting quarter soared to ₹7,316 crore against ₹1,503 crore in the year-ago quarter. In the current quarter, due to uncertainty regarding recovery, the bank made additional provisioning of ₹3,941 crore in respect in six non-performing asset (NPA) accounts.Das expects BoI to return to profit in the April-June quarter. He projected a credit growth of 8-9 per cent in FY21.While net interest income was down 6 per cent year-on-year at ₹3,793 crore (₹4,044 crore in the year-ago quarter), total non-interest income was up 14 per cent at ₹1,688 crore (₹1,479 crore). The bank extended Covid-19-related moratorium in the case of borrower accounts aggregating ₹74,445 crore. It extended asset classification benefits to accounts aggregating ₹4,145 crore and made a provision of ₹414 crore thereon. - Business Line
🍒 IOB posts ₹144-crore net profit in Q4 : Indian Overseas Bank (IOB) has reported a turnaround in its operations as the Chennai-headquartered PSB posted a net profit of ₹144 crore (includes the extraordinary income of ₹53 crore) for the quarter ended March 31, 2020, compared with a net loss of ₹1,985 crore in the year-ago quarter. The bank has recorded a profit after reporting a net loss for 18 quarters. While the bank’s net NPA has dropped below 6 per cent in the past two quarters, it has reported net profit for March 2020 quarter, indicating the possibilities of coming come out the RBI’s PCA framework soon.“Higher operating profit and lower provisions have helped post a strong net profit in March 2020 quarter. It is a great turnaround and landmark event for the bank as several initiatives taken in recent months have helped,” said Karnam Sekar, Managing Director & CEO of IOB.Operating profit of the bank grew by 6 per cent to ₹1,197 crore against ₹1,131 crore in the year-ago quarter. Interest income was lower at ₹4,442 crore (₹4,556 crore), while non-interest income was higher at ₹1,095 crore (₹917 crore).Provisions and contingencies were lower at ₹1,060 crore (₹4,502 crore). Gross NPA declined to ₹19,913 crore with ratio of 14.78 per cent as on March 31, 2020, against ₹33,398 crore with ratio of 21.97 per cent a year-ago. Total recovery was ₹5,386 crore in Q4 of FY20, while the total fresh slippage for the same period stood at ₹1,350 crore.- Business Line
🍒 Exim Bank profit rises 51% in FY20 : Export-Import Bank of India (Exim Bank) reported a 51 per cent increase in net profit at ₹124 crore in the year ended March 31, 2020, against ₹82 crore in the previous year. The bank’s loan portfolio, including export finance, term loan to exporters and overseas investment, increased by 6.23 per cent year-on-year (yoy) to ₹99,446 crore as of March-end 2020 from ₹93,617 crore as of March-end 2019.Exim Bank is a wholly-owned Government of India financial institution that provides financial assistance to exporters and importers. The non-funded portfolio, comprising financial guarantees, and project-related and other guarantees, increased by 12.59 per cent to ₹15,869 crore as of March-end 2020 from ₹14,096 crore as of March-end 2019. - Business Line
🍒 Small businesses, corporates biggest beneficiaries of loan moratorium: Canara Bank chief : Public sector lender Canara Bank has 17% of its loan book under repayment moratorium, with small businesses and corporates being the biggest beneficiary of this scheme, LV Prabhakar, chief executive officer, Canara Bank told Mint in an interview. “About 19% of the borrowers (by number) have utilised the repayment deferment of interest and instalment," said Prabhakar.While 38% of the bank’s small business borrowers have opted for the moratorium, about 34% of corporate borrowers have utilised it. Besides, 5% retail borrowers and 3% of non-banking financial companies (NBFCs) have taken the deferment benefit. All these numbers are as of 31 March and Prabhakar said that the bank will reassess these after 30 June and will therefore have more clarity in the first week of July. “In March we gave the moratorium option to all our borrowers, but subsequently because of other facilities like covid-19 assistance loans, targeted long-term repo operations (TLTRO) funds, their liquidity problems have eased," he said. - Live Mint
🍒 UCO Bank says 25-30 per cent of borrowers opted for moratorium : Public sector UCO Bank said on Thursday that 25 to 30 per cent of its borrowers have opted for the moratorium which was allowed by the Reserve Bank of India (RBI). A senior UCO Bank official said that most of the borrowers continue to make monthly payments and it shows the quality of those who have taken loans from the bank.“Nearly 25 per cent to 30 per cent of the bank’s borrowers have opted for the moratorium. It only shows the quality of borrowers,” the official said.The RBI has extended the moratorium on loan repayment by another three months which ends in August.The Supreme Court has recently made an observation that banks are charging ‘interest on interest’ from those who opted for the moratorium.To this, the official said that RBI had already submitted an affidavit with the apex court stating that waiver of interest will risk the financial viability of the banks. UCO Bank has also signed an agreement with SBI Life Insurance for selling the insurer’s policies from its branches across the country.- Business Line
🍒 Federal Bank to buy another 4% stake in its JV from IDBI Bank for Rs 80 cr : South-based lender Federal Bank will be paying over Rs 80 crore to buy additional four per cent stake in its life insurance joint venture IDBI Federal Life Insurance, a top official has said. The stake buy from the state-run IDBI Bank will take Federal Bank's stake in the 12-year-old company to 30 per cent, the maximum permissible level for a lender under the regulations, its managing director and chief executive Shyam Srinivasan told PTI.Without giving targeted timelines, he said IDBI Bank, which holds 48 per cent stake in the venture, will be selling 27 per cent stake in the venture to get its holding down to 21 per cent.Federal Bank will be purchasing 4 per cent, while their Dutch partner Ageas Insurance International NV will be buying 23 per cent to take its ownership to 49 per cent, the maximum permissible for a foreign partner in a life insurance venture."The valuations have been decided between partners by appointing third parties. IDBI Bank will reduce either to 25 or 21 per cent depending on whether we buy or not," he said and added that "we will take our stake to the maximum permissible 30 per cent and it will take about Rs 80-90 crore for the 4 per cent stake." - Business Standard
🍒 Yes Bank launches mobile payment app ‘Yuva Pay’ : Yes Bank launched its digital wallet solution ‘Yuva Pay’ in partnership with UDMA Technologies to enable contactless payments for its customers. The digital wallet issued under minimum KYC regulations to Yes Bank will offer bill payments via Bharat Bill Pay and provide Unified Payments Interface (UPI) facility to customers.Through the app, customers can pay their utility bills (including municipal, house, water tax, electricity, LPG, DTH, Mobile bill, license fees), make insurance renewals, FASTag recharges, EMI payments, and use the app to make payments at retail outlets. “The program also aims to make the low income groups transition to digital and contactless transactions by enabling wider access to secure electronic payment services," said Anita Pai, chief operating officer, Yes Bank. - Live Mint
🍒 Private banks: Now, RBI can frame reconstruction scheme without putting moratorium in public domain : Call this a fallout of the recent YES Bank debacle and its subsequent rescue episode. The Centre has now decided to empower the Reserve Bank of India (RBI) to handle mishaps in private banks (any banking company) without allowing any loss of public confidence and disruption in financial system. The much talked about Banking Regulation (Amendment) Ordinance 2020 – which was approved by Cabinet on Wednesday — will also allow RBI to prepare a reconstruction scheme without having to first make an order of moratorium on barring deposit withdrawals, official sources said.- Business Line
🍒 Aditya Puri took home Rs 180 crore in FY20 : HDFC Bank chief Aditya Puri took home a total remuneration of Rs 18.9 crore as against Rs 13.7 crore last year. During the year, which was last full year as CEO, Puri also exercised options of Rs 161 crore. Puri, who has led HDFC Bank since its inception in 1994, will be stepping down in October this year as he turns 70. During his term, the bank has grown from a one-branch operation in 1995 to become India’s largest private bank with a market cap of Rs 5.7 lakh crore. Last year, the lender increased its profits by 25% to Rs 26,257, which is more than rest of the sector. According to the bank’s annual report, Puri’s fixed remuneration was Rs 15.9 crore, perquisites Rs 2.2 crore and other benefits Rs 79.8 lakh. Stock options exercised this year at Rs 161 crore were almost four times last year’s Rs 42 crore. - Times of India
🍒 Govt steps in to avoid another PMC Bank like fiasco, aims to ensure proper regulation of co-op banks : The government on Wednesday fast-tracked its plan to protect the interest of small depositors by deciding to bring urban as well as multi-state co-operative banks under regulations of the Reserve Bank of India (RBI) through an ordinance. Briefing the media after the Cabinet meeting on Wednesday, information and broadcasting minister Prakash Javadekar said there are 1,540 urban cooperative and multi-state co-operative banks with 8.60 crore depositors, having total savings of about Rs 5 lakh crore. “Depositors will feel a lot safer after this move,” the minister said. The Cabinet has also approved a proposal to extend an interest subsidy of 2% for 12 months through May 31, 2021 to small-time entrepreneurs in the vulnerable sections of the society under the Mudra (Sishu) scheme. The move will cost the government Rs 1,542 crore. - Financial Express
🍒 RBI staff union hails proposed ordinance on co-operative banks : The All-India Reserve Bank Employees’ Association (AIRBEA) has welcomed the decision of the Union Cabinet to promulgate an ordinance to bring the 1,482 urban and 58 multi-state co-operative banks under the supervision of the Reserve Bank of India, which would protect the interests of an estimated 13.5 crore depositors. “We are particularly happy since we have been demanding this from the late 1990s when the scam at the Madhavpura Mercantile Co-operative Bank in Gujarat pushed co-operative banks across the country into a critical situation, several had folded up, and depositors lost precious money,” Samir Ghosh, General Secretary of AIRBEA, wrote in a letter to the RBI Governor. - Business Line
🍒 CBI chargesheets Rana Kapoor, Kapil Wadhawan in YES Bank fraud case : The Central Bureau of Investigation has filed a chargesheet against Rana Kapoor, Kapil Wadhawan and their kin in the YES Bank fraud case. A CBI statement said that the chargesheet names Dewan Housing Finance Limited, Kapil Rajesh Wadhawan, Dheeraj Rajesh Wadhawan, Belief Realtors Private Limited, RKW Developers Private Limited, DOIT Urban Ventures (India) Private Limited, Roshni Kapoor and Rana Kapoor. The chargesheet was filed in the court of Special Judge, CBI City Sessions Court, Mumbai. In March this year, the CBI had linked the Kapoors and Wadhwans to a YES Bank-DHFL diversion of ₹1,350 crore. They were charged with corruption, cheating, bribery, and criminal misconduct.- Business Line
🍒 The ‘threat’ posed by 96,000 rural co-operatives outside RBI compass : Nine months after the Punjab and Maharashtra Co-operative (PMC) Bank fiasco, the Cabinet has approved an ordinance to bring urban and multi-State cooperative banks under the supervision of the RBI, to ease depositors’ concerns. With numerous co-operative banks going bust time and again, the move to strengthen these banks by improving governance and oversight through the RBI is welcome. But only 1,544 urban co-operative banks (including 58 multi-state cooperative banks), will be covered under the ordinance. There are 96,000-odd rural co-operatives that constitute about 65 per cent of the total assets of co-operatives. Among them, Primary Agricultural Credit (PAC) Societies (about 95,000 in number as of March 2018) continue to remain outside the purview of the Banking Regulation Act, which is a cause for worry, given their wide presence in the remote hinterlands. - Business Line
🍒 SEBI slaps Rs 25 lakh fine on 5 persons for fraudulent trading : Capital markets regulator SEBI on Thursday imposed a penalty totalling Rs 25 lakh on five individuals for indulging in fraudulent trading in the shares of Cupid Trades and Finance Ltd. A penalty of Rs 5 lakh each has been levied on Devang Mukandray Patel, Sonal Devang Patel, Manishaben Maheshkumar Patel, Rajesh Kumar and Kishor Sharma. The regulator had conducted a probe into the trading activities of certain entities in the scrip of Cupid Trades & Finance for the period of January 2010 to December 2014. - Moneycontrol.com
🍒 Govt must support fintechs: Ficci-PWC report : The government should liaise with financial technology firms for distribution of financial benefits and relief measures amid the covid crisis, said a new report by industry body the Federation of Indian Chambers of Commerce and Industry (Ficci) and multinational professional services firm PwC. “The need for digital awareness and presence is prominently recognized by individuals, businesses, and governments alike. Fintechs can act as enablers for the banking and financial sector, playing a crucial role in ubiquity and adoption of digital financial services. A few measures related to policy and regulation can support the fintech sector during the ongoing crisis," the report said. - Live Mint
🍒 With easing of curbs, Indian banks in UK cautiously optimistic about future : With British Prime Minister Boris Johnson announcing further easing of economic and social lockdown enforced by the Covid-19 pandemic— to come into effect from July 4 onwards — Indian banks operating in the UK are cautiously optimistic about business returning to near normal in the foreseeable future. Following the UK government last week lowering the level of alert from 4 to 3 — on a scale of 5 — and relaxing social distancing rules, Loknath Mishra, managing director and chief executive of ICICI UK Plc, indicated: “We are experiencing a rise in the volume of NRI deposits and remittances.” - Business Standard
🍒 Indian money parked in Swiss banks down 6%; third lowest in over 3 decades : unds parked by Indian individuals and enterprises in Swiss banks, including through India-based branches, fell nearly 6 per cent in 2019 to 899 million Swiss francs (Rs 6,625 crore), annual data from Switzerland's central bank showed on Thursday. This marks the second consecutive year of decline in aggregate funds of Indian clients with all Swiss banks, taking the figure to the third lowest level in more than three decades since 1987 when the Swiss National Bank (SNB) began compiling the data. The total amount of CHF 899.46 million, described by SNB as aggregate 'liabilities' of Swiss banks or 'amounts due to' their Indian clients at the end of 2019, included CHF 550 million (over Rs 4,000 crore) of customer deposits; CHF 88 million (Rs 650 crore) held via other banks; 7.4 million (Rs 50 crore) through fiduciaries or trusts; and CHF 254 million (Rs 1,900 crore) as 'other amounts due to customers' in form of securities and various financial instruments. - Business Standard
🍒 IRDAI sets up panel on insurance for use drones : The Insurance Regulatory and Development Authority of India (IRDAI) has formed a working group to suggest insurance products covering the various risks involved in the use of drones. “There is an immediate need to make available suitable insurance products covering the various risks involved in the use of drones,” the insurance regulator said in a circular. Drones are emerging as one of the fastest growing technologies and are being used for a variety of purposes and were playing a ‘significant’ role in the present Covid-19 situation helping the authorities in several activities, IRDAIsaid. - Business Line
🍒 Dvara KGFS sets fund-raising target of ₹600 crore for FY21 : Dvara KGFS, a non-banking finance company focusesd on financial inclusion, has set a fund-raising target of ₹600 crore under debt route for FY21, to meet its disbursement plans for the year and fuel its growth and expansion needs. The announcement was made during a virtual press conference organised by the company on Thursday to highlight the digital banking facilities provided to people in the remote villages during the lockdown. Dvara KGFS said it has facilitated gross cash withdrawal transactions of more than ₹7 crore through its 300-odd branches since April 19 through an Aadhar-Enabled Payment System (AEPS). “We are happy that we were able to provide AEPS service to around 45,000 villagers and facilitate a gross cash withdrawal of more than ₹7 crore through our 300-odd branches in such a short span of time,” said Joby CO, CEO of Dvara KGFS. - Business Line
🍒 Bharti AXA Life rolls out combo product in Covid-19 times : Focussing on a customer-centric approach to its product development strategy, Bharti AXA Life Insurance has come up with a combo product that provides an all-in-one solution for life cover, hospitalisation, accident and critical illness amid the scare and spread of Covid-19 pandemic. This product has been designed solely based on customer feedback. “The new combo product ‘Health and Life Secure’ is a step in that direction to meet this need and has been rolled out based on the findings of a proprietary survey we did. This is expected to be a key differentiator as having all coverages in one plan will save customers from keeping separate policies and paying premium separately for them,” Manik Nangia, Chief Operating Officer, Bharti Enterprises - Financial Services, told BusinessLine in an interview. - Business Line
🍒 Power Finance Corporation sanctions over Rs 1 lakh crore loans for power projects in FY20 : State-owned Power Finance Corporation (PFC) on Thursday said it sanctioned loans over Rs 1 lakh crore for power projects during the 2019-20 financial year. Out of the Rs 1 lakh crore, it successfully disbursed Rs 68,000 crore loans during the last financial year, PFC said in a statement.PFC, under the administrative control of the Ministry of Power, is the largest non-banking financial corporation (NBFC) in power sector in India."PFC ended FY 2019-20 on a strong note despite numerous challenges, including outbreak of COVID-19 virus. The institution delivered a sound financial performance with loan sanctions of more than Rs 1 lakh crore along with loan disbursements of about Rs 68,000 crore in the last financial year," it said. - Moneycontrol.com
🍒 IIFL Finance share price rises 10% after promoter raises stake : IIFL Finance share price rose 10 percent intraday on June 25 after the promoter of the company increased their stake. On June 24 the company's promoter Nirmal Bhanwarlal Jain has acquired 0.12 percent stake in the company via open market increasing total shareholding of the promoter group to 25.06 percent..The share touched its 52-week high Rs 212.80 and 52-week low Rs 58.15 on 14 February 2020 and 03 June 2020, respectively. Currently, it is trading 61.63 percent below its 52-week high and 40.41 percent above its 52-week low. - Business Line
🍒 Bank of India share price falls 5% on Q4 loss : Bank of India share price declined 4.8 percent intraday on June 25 after the public sector lender reported a massive loss for the March quarter of 2020. The stock, which has corrected 40 percent in the last year, was trading at Rs 52.30, down 4.74 percent on the BSE at 1433 hours. - Business Line
🍒 IOB share price locked at 10% upper circuit on Q4 profit : Indian Overseas Bank (IOB) share price locked at 10 percent upper circuit on June 25 after the company posted net profit in the quarter ended March 2020. The company in the Q4 has reported net profit at Rs 143.8 crore against loss of Rs 1,985.2 crore in the same quarter last fiscal. - Business Line
🍒 Sensex ends flat, Nifty closes at 10,288 : The benchmark indices closed today's volatile session on a negative note. The Nifty finished the June F&O session at 10,288.90, down 16.40 points or 0.16 per cent. The BSE Sensex ended at 34,842.10, down 26.88 points or 0.08 per cent.Asian Paints, ITC, Eicher Motor were the top gainers. While, ICICI Bank, IndusInd Bank and Powergrid were top laggards. Nifty FMCG and Pharma ended in green zone, while IT and Media closed in red.
🍒 Rupee settles 7 paise higher at 75.65 against US dollar : The rupee erased its initial losses and settled 7 paise higher at 75.65 (provisional) against the US dollar on Thursday tracking positive domestic equities and foreign fund inflows. The rupee opened at 75.76 against the US dollar, but gathered strength and closed at 75.65, higher by 7 paise over its previous close. It had finished at 75.72 against the greenback on Wednesday.
🍒 Shares of Central Bank of India in Stock Market : 82% of moneycontrol users recommend buying Central Bank of India. In Bse, stocks quoted at Rs.17.27 against Prev Close Rs.17.44. In NSE, shares traded at Rs.17.25 against Prev Close Rs.17.40....
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