Page 635 - Finance News
Govt retains interest rates on small savings; depositors may cheer decision
A cheer for depositors, the move is contrary to what RBI and banks had advised
 "Govt retains interest rates on small savings; depositors may cheer decision")
IL&FS is a test case for group resolution, says Uday Kotak
The new board of Infrastructure Leasing and Financial Services (IL&FS) expects to recover close to 50 per cent of the firm's overall debt, which stands at above Rs 94,000 crore
 "IL&FS is a test case for group resolution, says Uday Kotak")
SBI to float $2-bn distressed asset fund; to bring in global partners
The size of the distressed asset fund is expected to be on the lines of the government of India-backed AIF for distressed housing projects
 "SBI to float $2-bn distressed asset fund; to bring in global partners")
Do not want businesses to shut, will help revive: Sitharaman to India Inc
Addressing industry representatives, Sitharaman said India's macro-economic indicators were on a solid footing
 "Do not want businesses to shut, will help revive: Sitharaman to India Inc")
IMF raises questions over methodology to calculate GDP growth in India
IMF also said there were weaknesses in the deflation method used to derive value added. Deflators are used to convert GDP at current prices to constant prices
 "IMF raises questions over methodology to calculate GDP growth in India")
IMF cautions India against fiscal stimulus, says govt should go for reforms
The Budget projected the Centre's fiscal deficit to come down to 3.3 per cent of the country's gross domestic product (GDP) in 2019-20 against 3.4 per cent a year ago
 "IMF cautions India against fiscal stimulus, says govt should go for reforms")
The big sweet spot: Retail loan market to double in 5 years to Rs 96 trn
While concerns have been expressed of late that stress may be on the rise in the retail loan books, it is also true that lenders now have access to a plethora of data points for credit assessment
 "The big sweet spot: Retail loan market to double in 5 years to Rs 96 trn")
Five-point agenda for NBFCs to create a sustainable business model
Non-banking financial companies (NBFCs) continued to contribute significantly to the economy
 "Five-point agenda for NBFCs to create a sustainable business model")
The co-lending model of NBFCs & banks may reshape credit delivery. Will it?
A problem which is now being worked upon is to how to marry the low cost of funds from banks with the lower cost of operations of NBFCs and pass this on to borrowers through a blended rate
 "The co-lending model of NBFCs & banks may reshape credit delivery. Will it?")
Banks' non-food credit growth slows 7.2% to Rs 86.73 trn in Nov: RBI
Credit growth to industry fell to 2.4 per cent to Rs 27.72 trillion in November 2019 from 4 per cent in the corresponding month of 2018.
 "Banks' non-food credit growth slows 7.2% to Rs 86.73 trn in Nov: RBI")
Beleaguered LVB suffers yet another top-level exit as CFO puts in papers
S Sundar follows at least three other senior executives, including former CEO Parthasarathi Mukherjee, who quit in August
 "Beleaguered LVB suffers yet another top-level exit as CFO puts in papers")
RBI asks UCBs with deposits of over Rs 100 cr to form Board of Management
The BoM will be constituted by the Board of Directors (BoD) of the UCBs concerned within one year, the RBI said
 "RBI asks UCBs with deposits of over Rs 100 cr to form Board of Management")
Expecting better liquidity, NBFCs hope to come out of dark tunnel in 2020
Asset quality pressures, liquidity squeeze, asset-liability mismatches, higher borrowing costs, rising defaults levels and rating downgrades made 2019 a tumultuous year for NBFCs or the shadow banks
 "Expecting better liquidity, NBFCs hope to come out of dark tunnel in 2020")
Year in review: History behind, Das-led RBI charts new trails in 2019
Under his governorship, Das silenced the ever-hungry market and North Block mandarins with 135 basis points reduction in interest rates through five successive rate cuts
 "Year in review: History behind, Das-led RBI charts new trails in 2019")
Decade in review: How state-owned banks rose to the occasion amid crisis
At the start of the decade, the government was busy infusing stimulus packages to revive various sectors affected by the global credit crisis
 "Decade in review: How state-owned banks rose to the occasion amid crisis")
RBI allows use of UPI and other non-bank payment methods to link FASTags
Move to boost NETC, foster competition among system participants; turnaround time for resolving failed transactions will be applicable to the transactions carried out in the NETC system
 "RBI allows use of UPI and other non-bank payment methods to link FASTags")
RBI wants urban cooperative banks to focus mainly on priority sector
UCBs' target for priority-sector lending has been proposed at 75 per cent of their credit from 40 per cent now
10-year bond yields rise on RBI's special open market operations
Interestingly, instead of the 10-year bond yields coming down, it increased about 5 basis points to close at 6.55% after the OMO
IFIN reports net loss of Rs 13,272 cr in FY19, net revenue down by 87.22%
96% of loans disbursed are non-performing
 "IFIN reports net loss of Rs 13,272 cr in FY19, net revenue down by 87.22%")
Banks to levy Rs 150 after 4 cash transactions, Twitter users say not fair
This move being considered as a move to discourage cash transactions and encourage digital payments
 "Banks to levy Rs 150 after 4 cash transactions, Twitter users say not fair")