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☕08.11.2020: Today's Banking / Financial News at a Glance
🍒 Economy expected to bounce back from next fiscal: SBI chairman : The country's economy, which has shown resilience to come out from a downturn caused by the COVID-19 pandemic, is expected to bounce back from the next fiscal, State Bank of India chairman Dinesh Kumar Khara said on Saturday. There will be a "paradigm shift" which will lead to a more matured economy" with economic players learning to contain costs, he said. Addressing the virtual annual general meeting of Bengal Chamber of Commerce and Industry, Khara said, "The economy is expected to bounce back from the next fiscal starting from April 2021. The next normal will see a paradigm shift and some of them will be permanent." Khara said the economy had shown "resilience to come out from the downturn" and some positive traction was witnessed towards the end of the first quarter of the current fiscal. - Economic times
🍒 Canara Bank cuts MCLRs by 0.05-0.15 pc for various tenors from Nov 7 : State-owned Canara Bank on Friday said it has cut the marginal cost of fund based lending rates (MCLR) by 0.05-0.15 per Cent with effect from November 7. The one-year MCLR -- the benchmark for most of the consumer loans -- has been reduced by 0.05 per cent to 7.35 per cent from 7.40 per cent currently, Canara Bank said in a regulatory filing.The six-month MCLR too has been lowered by a similar quantum to 7.30 per cent. Among others, the overnight and one-month MCLRs are cut by 0.15 per cent each to 6.80 per cent, while the three-month MCLR stands revised to 6.95 per cent, against 7.10 per cent. The new rates will come to effect from November 7, 2020, Canara Bank said. On Thursday, Indian Overseas Bank had announced to cut the one, two and three-year MCLRs by 0.05 per cent each to 7.45 per cent. The overnight and one-month MCLR will be priced at 6.85 per cent each from 7.05 per cent and 7.35 per cent, respectively, at present. The new rates will come to effect from November 10, 2020, Indian Overseas Bank had said. - Business Line
🍒 Bank of Maharashtra cuts Repo Linked Lending Rate to 6.90 per cent : Bank of Maharashtra (BoM) has cut its Repo Linked Lending Rate (RLLR) to 6.90 per cent from 7.05 per cent earlier. The Pune-headquartered public sector bank, in a statement, said customers availing home loan, car loan, education loan, personal loan along with MSME (micro, small and medium enterprise) loan products can benefit following the 15 basis points RLLR cut, with effect from November 7. - Business Line
🍒 Ujjivan Small Finance Bank Q2 profit up marginally at Rs 96 cr : Ujjivan Small Finance Bank (SFB) on Saturday reported a marginal rise in net profit at Rs 96 crore for September quarter as provisions spiked.The bank posted a net profit of Rs 93 crore in the same quarter a year ago. In June quarter, the profit was Rs 55 crore. Total income during July-September 2020-21 increased to Rs 818.01 crore from Rs 729.36 crore in the year-ago period on the back of healthy interest income. Core income or the interest income increased 15.2 per cent to Rs 753.61 crore from Rs 654.33 crore in the same quarter of 2019-20. Net interest income grew 21 per cent to Rs 470 crore. - Business Line
🍒 Significant progress in proposed merger with Clix Group: Lakshmi Vilas Bank : Lakshmi Vilas Bank said that it has made "significant progress" with Clix Group for the proposed merger of the two. The bank also said that it has completed a minor incremental due diligence this week as requested by Clix Group. "Now, the respective sides are in the process of a workable and mutually acceptable framework," the bank announced Saturday. Meanwhile, the ailing private sector lender has seen its capital adequacy ratio (CAR) turning negative (-2.85%) for the first time while its tier 1 capital has been in the negative zone since March. Tier 1 capital was a negative 4.85% at the end of September against the minimum requirement of 8.875%. If the proposed merger of Clix Capital Service and Clix Finance India into the bank goes through, the issue of capital would be addressed. - Economic Times
🍒 Lakshmi Vilas Bank posts net loss of Rs 396.99 crore for Q2FY21 : The Lakshmi Vilas Bank on November 7 posted a net loss of Rs 396.99 crore during the quarter ending September 2020. The bank extended its net loss of Rs 357.17 crore from the second quarter of the previous financial year. Net interest margin shrunk to 1.37 percent for Q2FY21 against 1.47 percent for same period the previous year, the bank said in an exchange filing. Operating loss narrowed to Rs 5.66 crore against Rs 40.37 crore for Q2 the previous year. - Moneycontrol.
🍒 World Bank cautions against fake credit, debit cards with its name, logo : The World Bank on Friday cautioned the public against fraudulent issuance of debit and credit cards carrying its name and logo. The advisory came after its attention was drawn to such fraudulent issuance of debit/credit cards in India, according to the multilateral lending agency. "The World Bank Group does not issue debit/credit cards. The Bank Group has no involvement with individuals/groups who have issued these fake cards, and would like to caution the public to be wary of such fraudulent practices," it said in the advisory. "Please feel free to visit the World Bank's website www.worldbank.org to clarify about World Bank's programs and policies," it added. - Business Standard
🍒 Over 11 lakh MSMEs registered on Udyam online system since July: Govt : Over 11 lakh MSMEs have registered on the new online system of Udyam Registration launched in July, the government said on Saturday. Out of these, 3.72 lakh enterprises have registered under manufacturing category whereas 6.31 lakh enterprises under service sector. The share of micro enterprises is 93.17 per cent whereas small and medium enterprises are 5.62 per cent and 1.21 per cent, respectively. - moneycontrol.
🍒 Huge deviation in Bank Nifty and Nifty likely to narrow by December-end : Bank Nifty continues to act as a trailblazer, rallying by 12 percent during the week. The recent structure suggests that it has more room on the upside with the presence of a series of bullish anchor columns and positive follow-through. We expect, the leadership index to retrace 2/3 (i.e. 27,170) of its January-March 2020 decline. Ratio of Bank Nifty/Nifty since October month has seen the formation of bullish anchor columns followed with positive follow-through on P&F charts, implying strength & outperformance of banks against the benchmark Nifty. As per our pattern projection, the ratio can move higher towards 2.29 levels. Positive crossover is observed in XO zone. We believe a huge deviation between BankNifty and Nifty (in play for the most part of 2020), is likely to narrow down by year-end. Comparative out-performance and improved internal structure of the Indian markets are likely to attract positive traction. - Moneycontrol..
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