Page 12 - Banking System
Book excerpt: How RBI under Raghuram Rajan started the war against NPAs
The RBI found that the banks were delaying recognising large accounts as NPAs, even if projects were not starting up, and the 'project commencement' milestone was largely cosmetic
 "Book excerpt: How RBI under Raghuram Rajan started the war against NPAs")
Fin sector must reduce reliance on banking system for fundraise: Sebi chief
t would be a challenging task to achieve the government''s target of having Rs 100 trillion investments in infrastructure by 2024-25 unless the bond market is adequately developed, Tyagi added
 "Fin sector must reduce reliance on banking system for fundraise: Sebi chief")
Rs 11.1 trillion: Amount RBI pumped into banking system to boost liquidity
It pared repo rate by 40 bps on May 22, on top of a 75 bps cut on March 27, brought liquidity enhancing steps that stabilised bond yields even in the face of a Rs 12 trn borrowing programme
 "Rs 11.1 trillion: Amount RBI pumped into banking system to boost liquidity")
Govt to bear interest on interest for small borrowers during moratorium
Any individual whose loan amount is less than Rs 2 crore will be eligible for waiver of the compounding of interest.
 "Govt to bear interest on interest for small borrowers during moratorium")
Ind-Ra cuts banking outlook to negative on rising NPA, credit cost
As per Ind-Ra's bear case, the spike in stressed assets due to pandemic is expected to double the credit costs for banking system
 "Ind-Ra cuts banking outlook to negative on rising NPA, credit cost")
Indian-American bank president pleads guilty in $17-million fraud
An Indian-American president of a now-defunct New Jersey-based marble and granite wholesaler has admitted his role in scheming to defraud a bank in connection with a $17 million secured line of credit
Banks lower revenue outlook as coronavirus pandemic crimps loan demand
Bank of America, the second-largest US bank by assets, said it found little appetite for new loans when it surveyed its corporate clients twice this year
 "Banks lower revenue outlook as coronavirus pandemic crimps loan demand")
Huge liquidity surplus unlikely to be inflationary, say economists
Instead of pushing up inflation, the huge surplus liquidity, bordering at Rs 7 trillion daily, is helping in policy rate transmission and aiding govt to borrow at a cheaper rate
 "Huge liquidity surplus unlikely to be inflationary, say economists")
Rs 1.51 tn disbursed to MSME sector under emergency credit plan, says govt
There has been a big jump in the sanctions in the last 15 days, says finance ministry.
 "Rs 1.51 tn disbursed to MSME sector under emergency credit plan, says govt")
The Indian banking system is safe, but NPAs may shoot up, says RBI
The gross NPA ratio may rise from 8.5 per cent in March to 12.5 per cent by March 2021, but could worsen to 14.7 per cent under a very severely stressed scenario. However, no bank will fail
 "The Indian banking system is safe, but NPAs may shoot up, says RBI")
Indian financial system sound but Covid could spike bad loans: RBI
Gross NPAs of banks may rise from 8.5% this March to 12.5% by March 2021 but could worsen to 14.7% under very severely stressed scenarios. However, no bank will fail, apex vank says in FSR
 "Indian financial system sound but Covid could spike bad loans: RBI")
Lockdown impact: Bank credit growth plunges 50% in fortnight to May 22
Banks had surplus liquidity of Rs 4.5 trn in the period
 "Lockdown impact: Bank credit growth plunges 50% in fortnight to May 22")
Intellect Design Arena launches iTurmeric Fincloud through IBM Cloud
The initiative will support onboarding to the IBM financial services-ready public cloud, including guidance through a prescriptive implementation and evidence process to help deliver Intellect Design
 "Intellect Design Arena launches iTurmeric Fincloud through IBM Cloud")
Bank liable for unauthorised online transaction
The National Commission observed that there was a security breach of the bank's net banking system
Covid-19: Some banking systems may need help if situation worsens, says IMF
Leading regulators and bank chief executives, particularly in the United States, have said lenders are robust enough to withstand the unfolding economic crisis.
 "Covid-19: Some banking systems may need help if situation worsens, says IMF")
Centre tells states to ensure smooth movement of bank, ATM staff
Banks told to keep adequate cash at ATMs as FM announces free cash withdrawals at ATMs
 "Centre tells states to ensure smooth movement of bank, ATM staff")
YES Bank crisis: Paying loan? Shift ECS mandate to a nationalised bank
If you are paying a personal/home loan or doing SIPs, shift ECS mandate to another bank. It just might make sense to have one account with a nationalised bank
 "YES Bank crisis: Paying loan? Shift ECS mandate to a nationalised bank")
We'll keep investing in India as long as we see opportunities: Blackstone
Schwarzman spoke to Pavan Lall, and fielded questions on concerns about the coronavirus, the next few quarters for the world economy, and doing business in India
 "We'll keep investing in India as long as we see opportunities: Blackstone")
BS Banking Annual 2019: Indian banks safe, say SBI, HDFC Bank chiefs
HDFC Bank MD Aditya Puri and SBI Chairman Rajnish Kumar discuss the present and the future of the industry in a fireside chat
 "BS Banking Annual 2019: Indian banks safe, say SBI, HDFC Bank chiefs")
DFIs: Look before you leap
Before setting up any new development bank, the govt must examine the contribution and performance of the existing ones
 "DFIs: Look before you leap")
