Page 46 - Banking Sector
Veteran banker Vaswani takes charge as Kotak Mahindra Bank's MD, CEO
He replaced Dipak Gupta, who was the interim MD and CEO, following founder director Uday Kotak stepping down as the head of the bank, effective September 1, 2023
 "Veteran banker Vaswani takes charge as Kotak Mahindra Bank's MD, CEO")
Lending rates decline in Nov while deposit rates harden: RBI data
The WALR on outstanding rupee loans of SCBs was at 9.80 per cent in November 2023 as against 9.84 per cent in October 2023 and 9.83 per cent in September
 "Lending rates decline in Nov while deposit rates harden: RBI data")
Best of BS Opinion: Banking for growth, Indian economy's resilience & more
Here is the best of Business Standard's opinion pieces for today
 "Best of BS Opinion: Banking for growth, Indian economy's resilience & more")
Banking for growth
Financing of NBFCs must be monitored
 "Banking for growth")
SBI, HDFC Bank will need to maintain higher capital from FY25, says RBI
The additional Common Equity Tier 1 (CET1) requirement will be in addition to the capital conservation buffer
 "SBI, HDFC Bank will need to maintain higher capital from FY25, says RBI")
Total amount of frauds reported by banks declines to six-year low: RBI
However, the number of frauds that were reported by banks have gone up from 7,263 frauds in 2020-21 to 13,576 in 2022-23
 "Total amount of frauds reported by banks declines to six-year low: RBI")
Banks bid 3.2 times against notified amount of Rs 50,000 cr at VRR auction
Market participants speculate that this might be the last VRR auction conducted by the central bank as the liquidity condition is expected to improve in a few days due to government spending
 "Banks bid 3.2 times against notified amount of Rs 50,000 cr at VRR auction")
RBI warns banks, NBFCs against reliance on model-based lending practices
The regulator said inherent biases and lack of transparency with AI/ML outcomes carry risks
NBFC loan sanctions shrink by 5% to Rs 2.09 trn in urban area: FIDC
Growth in Semi-urban, rural areas holds up
 "NBFC loan sanctions shrink by 5% to Rs 2.09 trn in urban area: FIDC")
NaBFID MD bats for re-introduction of S4A-like debt recast scheme
National Bank for Financing Infrastructure and Development's (NaBFID) managing director Rajkiran Rai G has said there is a need to re-introduce the Scheme for Sustainable Structuring of Stressed Assets (S4A) scheme to help infrastructure finance in the future. Rai said at present, there is not a single asset calling out for such help but it is essential to get a facility which will enable "rightsizing of debt" and make it more sustainable. He also said that given the present system, no entity can exploit the S4A scheme by indulging in things like the evergreening of loans. The RBI had introduced the S4A scheme in 2016 and ended in February 2018. Debt was split into sustainable and unsustainable based on cash flows under the scheme, which was focused on corporate loans and also had a threshold above which an account could qualify. "We need to see the context in which it was brought and how it was used. And now, we are talking in a totally different context," Rai told PTI, pushing for
 "NaBFID MD bats for re-introduction of S4A-like debt recast scheme")
Bank of Baroda raises Rs 2,500 crore through basel-III tier-II bonds
The bank received a total of 88 bids amounting to Rs 6,803 crore, according to a note by the bank
 "Bank of Baroda raises Rs 2,500 crore through basel-III tier-II bonds")
Bandhan Bank receives Rs 280 crore bid for Rs 776 crore home loan NPAs
Bandhan decided to sell housing loan NPAs, where repayment was due for over 180 days, worth Rs 776.62 crore as on September 30.
 "Bandhan Bank receives Rs 280 crore bid for Rs 776 crore home loan NPAs")
RBI imposed monetary penalties worth Rs 40 crore on 211 entities in 2022-23
Out of 211, 176 penalties worth Rs 14.04 crore were alone imposed on cooperative banks, Bhagwat Karad told Lok Sabha on Monday
Rising cost of funds may squeeze bank NIMs by 30 bps more: CARE Ratings
Banks are still grappling with policy rate hikes on deposits, along with regulatory actions on unsecured lending
RBI receives bids 2.7 times against notified amount at 7-day VRR auction
The central bank conducted a VRR auction after six months
 "RBI receives bids 2.7 times against notified amount at 7-day VRR auction")
US Fed holds policy rate in 5.25%-5.50% range, sees 75 bps cut next year
Fed's 'soft landing' scenario still on the table
 "US Fed holds policy rate in 5.25%-5.50% range, sees 75 bps cut next year")
Financial sector stocks, new listings take centerstage in November for MFs
The equity market witnessed a sharp rally last month. The benchmark Nifty50 rose by 5.5 per cent, the most since July 2022
 "Financial sector stocks, new listings take centerstage in November for MFs")
Not mentioning L/C no. on invoice is not a discrepancy, says expert
Provided all the stipulated documents are received by the issuing bank, the absence or mistyping of a credit number does not constitute a reason for refusal
 "Not mentioning L/C no. on invoice is not a discrepancy, says expert")
Central bank and cricket
While the economy seems to be on a firm growth path, the fight against inflation is not over yet. It has not even entered the last round
RBI to establish cloud facility for financial sector to secure data privacy
Focusing on digital banking, the RBI announced a regulatory framework for web-aggregation of loan products and proposed the establishment of a fintech repository by April 2024
