Page 577 - Finance News
RBI reserves to recap banks amid economic slowdown? Experts divided
Reserve Bank of India (RBI) Governor Shaktikanta Das last week said banks should not wait for any event to happen, but actively raise capital to ensure financial resilience.
 "RBI reserves to recap banks amid economic slowdown? Experts divided")
India saw nearly Rs 25,000-cr wilful defaulter cases even before lockdown
Nationwide lockdown to contain the pandemic may force more business to default on loans, say analysts
 "India saw nearly Rs 25,000-cr wilful defaulter cases even before lockdown")
Covid-19 provisions may consume maximum 1% capital, says YES Bank CEO
The private lender is in the capital market to raise equity worth Rs 15,000 cr via an FPO in the Rs 12-13 price band
 "Covid-19 provisions may consume maximum 1% capital, says YES Bank CEO")
Retail payments report recovery in May, jump 23% to Rs 24.22 trillion
Total payments that include digital payments and payments made via paper-based instruments rose 12.5 per cent to Rs 94.64 trillion in May, against Rs 84.10 trillion in April.
 "Retail payments report recovery in May, jump 23% to Rs 24.22 trillion")
HDFC Bank probes lending practices at vehicle-financing operation
The bank decided against proceeding with an earlier proposal to extend the employment of Ashok Khanna, an 18-year veteran at the bank, after the investigation was completed
 "HDFC Bank probes lending practices at vehicle-financing operation")
Banks to resume wage revision talks with trade union leaders on July 22
Discussions will factor in the impact of the pandemic on banks' finances
 "Banks to resume wage revision talks with trade union leaders on July 22")
YES Bank FPO: Don't judge it on the basis of price discount alone
NPA-adjusted valuations are not attractive; asset quality is a concern
City Union Bank board approves raising Rs 1,100 cr through equity, debt
The lender will seek shareholders' approval for the fundraise plan at its upcoming AGM next month
 "City Union Bank board approves raising Rs 1,100 cr through equity, debt")
HDFC plans to seek shareholders' approval to raise Rs 45,000 crore
The board of directors of HDFC Ltd will meet on July 30 to announce the quarterly results for the first quarter ended June of the current fiscal, it said in a regulatory filing.
 "HDFC plans to seek shareholders' approval to raise Rs 45,000 crore")
PNB to focus on self-service, automation to deal with Covid-19 setbacks
MD Rao said 2019-20 started with an overarching goal towards 'Year of Profitability and Creating Value', leaving the adversities of the previous financial year behind
 "PNB to focus on self-service, automation to deal with Covid-19 setbacks")
Small NBFCs may face funding challenges again as banks get choosy: CARE
Outstanding bank lending to NBFCs declined marginally to Rs 8.04 trn in May 2020 from Rs 8.12 trn in April 2020, according to RBI data
 "Small NBFCs may face funding challenges again as banks get choosy: CARE")
The perils of name lending: Banks count cost of loans in NMC collapse
Borrowing on the basis of reputation, known as "name lending", and taking on a large exposure to one person or entity is not unusual in the Gulf region
 "The perils of name lending: Banks count cost of loans in NMC collapse")
Banks must raise capital well in time to build resilience: RBI Governor
Building buffers and raising capital (for all kind of banks) will be very crucial for credit flow and resilience in financial system, says Shaktikanta Das
 "Banks must raise capital well in time to build resilience: RBI Governor")
Coronavirus will result in high NPAs and capital erosion: RBI Governor
There is need for a structured mechanism with legal backing to deal with stressed assets, says the governor
 "Coronavirus will result in high NPAs and capital erosion: RBI Governor")
PSBs to do Covid heavy lifting, will soon need capital support: Experts
Fitch Ratings estimates that under a moderate stress scenario, Indian banks are around $15 billion short of the capital required to meet a 10 per cent weighted-average common equity tier 1 ratio.
YES Bank sets floor price of Rs 12 per equity share for FPO issue
Lender will end up issuing 11.54-12.5 billion fresh equity shares; FPO will lead to 50% per dilution in current equity base of 12.55 billion shares
Union Bank of India, UCO Bank reduce MCLR by 20 bps and 10 bps
UCO Bank's revised one-year MCLR will be 7.50 per cent, down from the current 7.60 per cent.
 "Union Bank of India, UCO Bank reduce MCLR by 20 bps and 10 bps")
Operating buffers of top five banks to fall 15%, says India Ratings
Of the top five private banks, Ind-Ra rates HDFC Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank.
 "Operating buffers of top five banks to fall 15%, says India Ratings")
PMC bank scam: Wadhawans bail rejected, offence grave says court
The Wadhawan duo are accused in the multi-crore rupee Punjab & Maharashtra Cooperative (PMC) Bank scam case.
 "PMC bank scam: Wadhawans bail rejected, offence grave says court")
Lakshmi Vilas Bank to rope in large marquee investors apart from Clix
Lender's loss before tax narrowed down to Rs 233.14 crore during the quarter ended March 2020 from Rs 499.96 crore, during the same period last year
 "Lakshmi Vilas Bank to rope in large marquee investors apart from Clix")