Page 596 - Finance News
HFCs: Home alone
'The burden of unsold inventory of over half a million housing units in the top 7 cities will worsen due to impact of the pandemic. Business process re-engineering will hold the key to the future'
RBI asks banks to continue with incentives on crop loans, govt to foot bill
Many farmers couldn't visit banks to pay dues on short-term crop loans in the wake of the Covid-19 lockdown and restrictions on movement of people
 "RBI asks banks to continue with incentives on crop loans, govt to foot bill")
NBFCs stare at 30-70% fall in FY21 earnings due to coronavirus pandemic
According to an Edelweiss report, Rs 1 trillion non-convertible dentures (NCDs) and Rs 1.2 trillion commercial papers (CPs) are due for maturity in May and June
 "NBFCs stare at 30-70% fall in FY21 earnings due to coronavirus pandemic")
Fearing NPAs, banks shoot off notices to malls for loan repayment
Banks want tenants to make payment in escrow accounts
 "Fearing NPAs, banks shoot off notices to malls for loan repayment")
RBI extends deployment time limit to 45 days from 30 under TLTRO 2.0
The extension has been granted based on the feedback received from banks and taking into account the disruptions caused by COVID-19, RBI said in a statement
 "RBI extends deployment time limit to 45 days from 30 under TLTRO 2.0")
ICICI Bank confirms exposure to Singapore-based oil trader Hin Leong
The Bank did not elaborate the extent of its exposure and the steps it is taking to protect its interest
 "ICICI Bank confirms exposure to Singapore-based oil trader Hin Leong")
HDFC cuts prime lending rate by 15 bps; move to benefit home loan customers
The reduction in rate comes after the RBI provided a boost to the banking system through its policy measures and also introduced a targeted long term repo operation (TLTRO)
 "HDFC cuts prime lending rate by 15 bps; move to benefit home loan customers")
Singapore's Caladium ups stake at Bandhan Bank by 1% via market purchases
It now holds 72 million shares in the lender
 "Singapore's Caladium ups stake at Bandhan Bank by 1% via market purchases")
Moratorium may lead to greater build-up of credit losses for banks: Moody's
Asia's banking sector profitability will also decline from deteriorating asset quality and lower net interest margins, said Moody's
 "Moratorium may lead to greater build-up of credit losses for banks: Moody's")
Covid-19 impact: RBI increases centre's WMA limit sharply to Rs 2 trillion
Ways and means advances (WMA) are temporary liquidity line given by the central bank to the government to meet short-term expenditure needs of the government
 "Covid-19 impact: RBI increases centre's WMA limit sharply to Rs 2 trillion")
ICICI Bank seeks impounding of ships operated by HLT unit Ocean Tankers
The tankers, Wu Yi San and Chang Bai San, were carrying cargoes financed by ICICI, the source said, adding the bank had about $100 million exposure to HLT.
 "ICICI Bank seeks impounding of ships operated by HLT unit Ocean Tankers")
RBI's liquidity support to NBFCs negligible: Emkay Global Research
The RBI has so far not provided any clarity on whether banks will grant moratorium to the shadow lenders on the loans they have availed
Brookfield's equity infusion crucial for Indostar Capital in Q1 FY21: CARE
Besides challenges faced by wholesale NBFC in particular, the credit costs (amount to be provided for stressed assets), are likely increase post outbreak of COVID 19
 "Brookfield's equity infusion crucial for Indostar Capital in Q1 FY21: CARE")
Covid-19: Post paycuts, young salaried look up to P2P platforms for loans
With no upper limit, the interest rates in the platform can go as high as 35 per cent, on a reducing balance
 "Covid-19: Post paycuts, young salaried look up to P2P platforms for loans")
RBI may cap reverse repo rate to ensure liquidity translates into credit
Lenders to face central bank's censure; board meet in May seen leading to fresh measures
Reopening of services to depend on permission from local authorities: NBFCs
Although the government has allowed NBFCs, HFCs to start operations, they have not allowed resumption of operations in hotspots and have also not permitted field activities
 "Reopening of services to depend on permission from local authorities: NBFCs")
Nabard to review fundings of Regional Rural Banks, co-op banks on April 20
To tap RBI refinance window for funding to RRBs etc
 "Nabard to review fundings of Regional Rural Banks, co-op banks on April 20")
Kotak Mahindra Bank to consider raising equity capital
On a standalone basis, as of December quarter, the lender had a capital adequacy ratio of 18.2 per cent, with tier 1 capital at 17.7 per cent. The regulatory requirement is at 11.07 per cent
 "Kotak Mahindra Bank to consider raising equity capital")
RBI moratorium: 10% provisioning may shave Rs 35,000 cr off bank profits
Banks will have to categorise the moratorium loans as special mention accounts (SMA) wherein loans are in the 0-90 days overdue buckets
 "RBI moratorium: 10% provisioning may shave Rs 35,000 cr off bank profits")
RBI's steps for NBFCs may not boost credit flow to broader economy: Moody's
On Friday, the RBI said it will conduct the second tranche of targeted long-term repo operation (TLTRO 2.0) for an aggregate amount of Rs 50 billion, to begin with.
 "RBI's steps for NBFCs may not boost credit flow to broader economy: Moody's")