Page 50 - Banking Sector

Need to avoid dominance of 1-2 directors on boards: RBI Governor Das

Das asserted that directors in UCBs, who are elected to their positions, must possess expertise in diverse banking functions, including risk management and information technology

RBI cancels licence of Mumbai based 'The Kapol Co-operative Bank'

The RBI on Monday said it has cancelled the licence of Mumbai-based The Kapol Co-operative Bank Limited as the lender does not have adequate capital and earning prospects. Consequent to the cancellation of the licence, the cooperative bank has been prohibited from conducting the business of banking' which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect, the Reserve Bank said in a statement. The Additional Secretary & Central Registrar of Cooperative Societies, Ministry of Cooperation, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, it said. On liquidation, the RBI said every depositor would be entitled to receive 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). About 96.09 per cent of the depositors are entitled to receive full amount of their deposits from ...

RBI found excessive dominance by 1-2 board members even in banks: Guv Das

Board discussions have to be free, fair and democratic, Das said, addressing directors of Urban Cooperative Banks (UCBs) at a meeting organised by the Reserve Bank of India

MFs hungry for bigger slice of banking pie amid growing investor inflows

Seek to exceed RBI's 5% ownership threshold

Indian bonds in global markets

Increasing foreign presence in the debt market will release the pressure on our banks and free up money for lending since demand for loans is far higher than deposit mobilisation

Axis Bank launches NEO for Business transaction banking platform for MSMEs

India currently has over 65 million MSMEs which contribute over 30 per cent to India's gross domestic product

TruCap, HDFC Bank form co-lending tie-up for underserved MSME borrowers

Industry estimates indicate that the MSME sector has an overall credit demand of Rs 69.3 trn, growing at a CAGR of 11.5%

Bank of England halts run of interest rate hikes as economy slows

It cut its forecast for economic growth in the July-September period to just 0.1% from August's forecast of 0.4% and noted clear signs of weakness in the housing market

Fino Payments shares recover after 'funds misappropriation' allegation

Lender says action by some employees will not impact it; conducts internal investigation

BLS Int'l, PSB Alliance partner to offer advanced doorstep banking services

Global tech-enabled services firm BLS International on Monday said it has formed a strategic partnership with PSB Alliance, a prominent company formed by public sector banks (PSBs), to provide advanced doorstep banking services (DSB). Under the partnership, BLS International's expertise and cutting-edge technology will facilitate doorstep banking services for PSBs, it added. The initial rollout will be in 58 cities, with plans for a seamless expansion to all regions and the company is committed to elevate customer experience and accessibility to all the 12 public sector banks under the PSB Alliance, it added. "This collaboration is expected to bring about a paradigm shift in the way banking services are available in the country. The partnership reflects a commitment to stay at the forefront of this transformation and offer cutting-edge services that meet the needs of today's tech-savvy and diverse customer base. "The DSB will not only enhance customer convenience but also align wit

High processing fees hindering growth of e-commerce exports: GTRI report

Banking issues like reluctance to process forex received through alternate channels and high processing fees are hindering the growth of e-commerce exports from India, and there is a need to bring mindset change to unlock the sector's potential, a report by think tank GTRI said on Monday. Unlocking India's e-commerce export potential to USD 350 billion by 2030 requires addressing banking issues that hinder growth and increase operational costs, the Global Trade Research Initiative (GTRI) said. "To initiate change, both the RBI and banks must shift their mindset towards treating small-value exports differently from larger ones. This shift is essential to prevent misuse while streamlining processes. Without this fundamental change, any reforms attempted by the RBI and banks will fall short," it said. Small e-commerce businesses often face challenges because banks are not equipped to handle low-value transactions efficiently, it added. The key issues include reluctance to process fore

Axis Bank investment banking unit's co-CEO Chirag Negandhi resigns

Axis Capital, one of the country's biggest investment banking firms, has been a part of some successful initial public offerings over the past year, including Cyient DLM, Mankind Pharma, Bikaji Food

Barclays PLC to cut about 450 jobs in UK retail bank, says trade union

The bank is consulting over which roles will be cut, with the majority expected to be in head office roles, including at vice-president level

Leasing data shows BFSI sector has bounced back from pandemic lull

The rise in leasing by BFSI companies has been attributed to the return to office and improved domestic financial sector outlook

UBS Group AG to cut hundreds of wealth jobs in Asia as activity slows

UBS is battling muted client sentiment and activity levels in Asia-Pacific, where the regional business hub of Hong Kong has long been a booking center along with Singapore for China's ultra-wealthy

Warburg Pincus sells 4.2% stake in IDFC FIRST Bank for Rs 2,480 cr

Warburg Pincus on Friday divested a 4.2 per cent stake in private lender IDFC First Bank for Rs 2,480 crore through an open market transaction. US-based private equity firm Warburg Pincus offloaded the shares of IDFC First Bank through its affiliate Cloverdell Investment on the BSE. According to the bulk deal data, Cloverdell Investment sold more than 27.86 crore shares, amounting to a 4.2 per cent stake in IDFC First Bank. The shares were disposed at Rs 89 apiece, taking the aggregate transaction value to Rs 2,480.34 crore. At the end of the June quarter, Warburg Pincus through its affiliates -- Cloverdell Investment and Dayside Investment -- have a shareholding of 8.5 per cent in the private lender IDFC First Bank, shareholding data pattern with the bourse showed. Meanwhile, Rajiv Jain-backed GQG Partners acquired 17.6 crore shares or nearly 2.6 per cent stake in IDFC First Bank. The shares were purchased at the same price, taking the deal value to Rs 1,527 crore. Shares of IDF

UBS smashes Q2 banking profit record on heels of Credit Suisse takeover

The $29 billion gain is a result of the accounting difference between the $3 billion price UBS paid for Credit Suisse and the value of the acquired lender's balance sheet

Govt calls meeting of states, bank officials on 'PM Vishwakarma' on Monday

The government has called a meeting of senior officials from states, public sector banks and State Level Bankers Committee (SLBC) on Monday, to discuss the implementation of the Rs 13,000 crore 'PM Vishwakarma' scheme, which seeks to support traditional artisans and craftsman. The scheme, which would be launched on September 17, would be implemented by three ministries -- MSME, Skill Development and Finance. The target is to enrol as many as 3 lakh beneficiaries in the current fiscal, an official said. "The Skill Ministry has called a meeting on August 28, in which principal secretaries of states, managing directors of banks, and SLBC representatives have been invited. "The meeting will discuss the roadmap for implementation of the scheme and process of identification of beneficiaries of PM Vishwakarma scheme," the official said. Under the scheme, the skilled workmen will be given training for 4-5 days to upgrade their skill, following which they will become eligible for loan. "Ou

HDFC Bank''s asset quality continues to be stable: Senior bank official

Asset quality of the country's largest credit card issuer HDFC Bank continues to be stable even as many of its peers are facing challenges, a senior official said on Thursday. The bank is witnessing "good traction" on the Unified Payments Interface (UPI) for credit cards, its head for payments business and consumer finance Parag Rao told reporters here. "We have not seen any rise (in defaults) or any stress in our portfolio. We continue to be stable even as we get out of the pandemic," Rao said, speaking on the sidelines of the launch of a co-branded credit card with Marriott Bonvoy. Recently, there have been concerns over high growth in unsecured credit card portfolios by many players in the industry, which has also led to speculation about regulatory moves to take care of the concerns. As per RBI data, state-run banks' gross non-performing assets (GNPAs) from the credit card segment have doubled to 18 per cent at the end of 2022-23. When asked about the likelihood of any such ..

Indian banks' dividend to rise to at least 7-year high in FY24: S&P report

MUMBAI (Reuters) - Indian banks' aggregate dividend payout to shareholders is set to rise to its highest level in at least seven years in 2023-2024, helped by strong business metrics and healthy credit growth, a report from S&P Global Market Intelligence showed.