Page 42 - Banking Sector

US Federal Reserve releases scenarios for 2024 bank "stress tests"

Fed's annual 'stress tests' dictate how much capital banks need to be healthy and how much they can return to shareholders via share buybacks and dividends

Banking laws and regulatory shake-ups

Regulatory action against Paytm's payments bank points to the need for reform of banking regulation

Audit of Rs 22.7K cr microloans due to large claim amount: Bandhan CEO

The maximum eligible amount a bank can claim under the CGFMU insurance is 15 per cent of the total insured amount

Paytm crisis: Non-bank lenders explore options for loan disbursal

While non-bank lenders have not terminated their contracts with Paytm, sources said that they have no visibility as to when they might be able to resume lending through the Paytm app

RBI conducts 2 VRR auctions to infuse liquidity into banking system

The liquidity deficit in the system widened to Rs 1.96 trillion on Sunday

Exim Bank looks to raise up to $1 billion in FY24 for commercial lending

The liquidity is comfortable in the international market, and the conditions are better for Indian entities than a few months ago in terms of raising resources, Bangari said

Paytm Payments Bank fiasco: Independent directors raised concerns

Red flags were raised on regulatory issues but they may have been late

RBI slams microfinance institutions for charging higher rates to borrowers

In 2021, the RBI had given full freedom to entities on interest rates to be charged for microloans by lifting the interest rate cap of 24 per cent put earlier

Non-executive directors' remuneration cap increased to Rs 30 lakh: RBI

The notification further stated that the banks are required to have suitable criteria for granting fixed remuneration to their NEDs, with the approval of their Board before any review of remuneration

RBI raises ceiling on remuneration of non-executive directors to Rs 30 lakh

The Reserve Bank on Friday raised the ceiling on remuneration of non-executive directors in private banks to Rs 30 lakh per annum from Rs 20 lakh. In April 2021, the central bank had fixed the ceiling of remuneration at Rs 20 lakh per annum for NEDs (non-executive directors). "Considering the crucial role of NEDs in efficient functioning of bank boards and its various committees and in order to further enable the banks to sufficiently attract qualified competent individuals on their boards, it has been decided to revise the aforementioned ceiling to Rs 30 lakh per annum," it said in a statement. RBI further said the banks are required to have suitable criteria for granting fixed remuneration to its NEDs, with the approval of their boards before any review of the extant remuneration. "The board of the bank may fix a lower amount within the ceiling limit of Rs 30 lakh per annum depending upon the size of the bank, experience of the NED and other relevant factors," it said. The ...

ESAF Small Finance Bank Q3 results: Profit jumps threefold to Rs 112 crore

ESAF Small Finance Bank on Friday reported over three-fold increase in net profit at Rs 112 crore for the third quarter ended December 2023 on account of improvement in core income. The Kerala-based bank had posted a net profit of Rs 37 crore for the year-ago period. Total income increased to Rs 1,094 crore in December quarter from Rs 782 crore a year ago, the bank said in a regulatory filing. Interest income also improved to Rs 974 crore from Rs 701 crore in the third quarter of the previous fiscal. Net interest income rose to Rs 597 crore from Rs 451 crore in the corresponding period of the preceding year. On asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 4.16 per cent from 7.24 per cent at the end of December quarter FY23. Similarly, net NPAs also declined to 2.19 per cent from 3.73 per cent in the previous year. Provision and contingencies nearly came down to Rs 138 crore from Rs 188 crore in same period of FY23. T

Banking crisis most infamous legacy of UPA government: White Paper

"Worse, even that high percentage of bad debts was an underestimate," the paper said

Volume, value of UPI transactions slip due to downtime with bank servers

The volume and value of transactions on UPI were pegged at 430.42 million and Rs 77,049 crore, respectively, a day before the widespread outage

Enterprise fintech industry set to surge, aiming for $20 bn market by 2030

'Large and small banks have started investing heavily in tech and are focusing on scaling their digital business throwing up opportunities for enterprise fintech firms'

RBI conducts two VRRR auctions in a single day for the first time

The central bank will conduct another overnight VRRR auction of Rs 50,000 crore on Wednesday

Capital Small Finance Bank mobilises Rs 157 crore from anchor investors

Capital Small Finance Bank on Tuesday collected Rs 157 crore from anchor investors a day before its initial public offering. The bank has allocated 33.53 lakh equity shares to 19 funds at Rs 468 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE's website. Those who participated in the anchor round are Whiteoak Capital Fund, LC Pharos Multi Strategy Fund, Nippon Life India Trustee Ltd, 360 One Fund, Edelweiss Tokio Life Insurance Company, HDFC Life Insurance Company and ICICI Prudential Life Insurance Company. The Rs 523 crore-IPO of Capital Small Finance Bank consists of Rs 450 crore of fresh issue and the remaining Rs 73 crore of Offer For Sale through which promoters and external investors will dilute 5 per cent of their pre-issue holdings. Those selling shares in the OFS include Oman India Joint Investment Fund II, American Capital and Amicus Capital Private Equity. The bank's maiden public issue, with a price band of Rs 445-468 per

RBI cancels licence of Jai Prakash Narayan Nagari Sahakari Bank

The RBI has cancelled the licence of Jai Prakash Narayan Nagari Sahakari Bank Basmathnagar, Maharashtra, as the lender, with its present financial position, would be unable to pay its present depositors in full. The Commissioner for Co-operation and Registrar of Cooperative Societies, Maharashtra, has been requested to issue an order for winding up the bank and appoint a liquidator, the RBI said in a statement on Tuesday. On liquidation, every depositor would be entitled to receive a deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the bank, about 99.78 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC, the Reserve Bank said. As of September 21, 2023, DICGC has already paid Rs 23.89 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank. Giving ...

Can Paytm be used for recharge, UPI services post Feb 29? Company clarifies

Paytm News: The RBI, last Wednesday, ordered Paytm's affiliate Paytm Payments Bank (PPB) to wind down most of its businesses by February 29

ED probing Paytm, its bank unit over currency transactions: Report

The sources did not indicate what specific provisions of the Foreign Exchange Management Act (FEMA), which covers individual

Generative AI's biggest impact could be felt in banking and technology

New research suggests that generative AI will have its biggest impact on white-collar workers with high-paying jobs in industries like banking and tech.