Page 29 - Banks

S&P Global downgrades outlooks on 5 US banks to 'negative' on CRE exposures

The ratings agency downgraded the outlook for First Commonwealth Financial, M&T Bank, Synovus Financial, Trustmark and Valley National

RBI eases recently tightened regulations for banks' investments in AIFs

This was to ensure the rules were uniformly implemented among lenders and to address stakeholders' concerns, the Reserve Bank of India (RBI) said in a release

Ethiopia's biggest bank says 80% cash lost during system glitch recouped

Ethiopia's biggest bank says it has recouped nearly 80 per cent of the cash it lost during what it says was a glitch in its system that allowed customers to take out more money than they had in their accounts. Abe Sano, president of the Commercial Bank of Ethiopia, told reporters on Tuesday that around USD 14 million was withdrawn or digitally transferred during the error. The value of the transactions ranged from 9 cents to USD 5,350, he said. The amount lost initially was reported as USD 40 million. Nearly 15,000 people have voluntarily returned funds that were taken illegally, the bank said in a statement. But 567 individuals haven't yet returned money that is not theirs. On Tuesday, the bank posted their names and account details online, in an apparent attempt to shame them into giving it back. The total amount remaining is not significant for the bank, but if this money is not fully recouped, it sends the wrong message, Abe said. News of the glitch spread on social media on Ma

Will take action on those involved in bank irregularities: PM to Sarasu

Prime Minister Narendra Modi spoke to the BJP candidate in Kerala's Alathur Lok Sabha constituency, Prof T N Sarasu, on Tuesday and assured her that strict action would be taken against those involved in the alleged irregularities in the cooperative banks in the southern state. Party leaders said Modi, who called Professor Sarasu, inquired about her campaign progress in the Alathur seat. The seat is reserved for the Scheduled Castes, and the candidature of Sarasu, a retired college principal, was announced on Sunday. During her conversation with the prime minister over the phone, Sarasu raised the issue of irregularities reported from certain cooperative banks in Kerala and sought his intervention to punish the guilty. Responding to this, Modi said, "I am happy that, as the candidate, you are taking the issue of the people and common man's problems. It is a good thing for any public servant. I am happy to hear that you are raising the issue." He said he had heard about it and had

Public sector banks' dividend payout may exceed Rs 15,000 crore in FY24

Public sector banks (PSBs) are likely to pay a dividend in excess of Rs 15,000 crore for the financial year ending March 2024 on the back of improved profitability, according to sources. In the first three quarters of the current financial year, all 12 PSBs earned a total profit of Rs 98,000 crore, only Rs 7,000 crore less than the entire FY23. PSBs earned the highest-ever aggregate net profit of Rs 1.05 lakh crore during FY23 compared to Rs 66,539.98 crore earned in 2021-22. As a result, the government earned a dividend of Rs 13,804 crore, 58 per cent higher than the Rs 8,718 crore paid out in the previous financial year. Since the profit in the current financial year would be much higher than the previous year, so will be the dividend payout to the government, sources said. Going by the past record, the dividend payout for FY24 should be in excess of Rs 15,000 crore, they added. Earlier in January, the Reserve Bank, in its draft guidelines, proposed to allow banks having net ..

Holi 2024 Bank Holiday: Bank to remain shut in some states, check list here

Holi 2024 Bank Holiday: India will celebrate Holi on March 25, 2024, and banks in most of the states will remain closed on this day. Check the full list of remaining holidays in the country

Govt invites feedback on draft accessibility guidelines for banking sector

The government has invited feedback and suggestions on its draft accessibility guidelines for the banking sector with the aim to ensure that banking services are accessible to all, including persons with disabilities. The draft rules by the Department of Disabilities Affairs covered various aspects of physical infrastructure, automated machines, digital platforms, and training initiatives within the banking sector. By providing detailed specifications and requirements, the guidelines said it aims to create an environment that is welcoming and accommodating to individuals with diverse abilities. According to the draft guidelines, banks are required to ensure that their information or service counters are accessible to all users. This includes provisions for wheelchair users, individuals of short stature, and those with sensory disabilities. Specific measures such as tactile guiding indicators, adjustable counter heights, and hearing enhancement systems are mandated to facilitate ..

Banks should pass reasoned orders while declaring entity defaulter: HC

The Bombay High Court has said banks and financial institutions should pass reasoned orders before declaring an entity or person a wilful defaulter under the Reserve Bank of India's Master Circular. A division bench of Justices B P Colabawalla and Somasekhar Sundaresan, in its order on March 4, noted that wilful defaulters are ostracized from access to the financial sector and hence, the discretion given to banks under the circular should be exercised with caution as mandated by the RBI. "Banks and financial institutions that seek to invoke the Master Circular to declare occurrence of wilful default, must share the reasoned orders passed by its Identification Committee and Review Committee," the HC said. The bench was hearing a petition filed by Milind Patel, former joint managing director of IL&FS Financial Services Limited (IFIN), challenging an order passed by the Union Bank of India in February 2023 declaring the firm and its promoters wilful defaulters under the 2015 Master ..

Banks' asset quality to improve in next six months as economy grows: Survey

FICCI, Indian Banks' Association survey had 23 respondents represent 77% of industry by asset size

Banks to remain open on March 31 despite Easter Sunday: Here's why

The RBI has designated 33 agency banks to remain operational on March 31. Take a look at the full list

Defunct SVB Group to sell Indian subsidiary to First Citizens Bancshares

SVB Financial Group is currently seeking approval from a bankruptcy court, with a hearing scheduled for April 9. The company anticipates that the transaction will close after this hearing

RBI directs all bank branches dealing in govt biz to remain open on Mar 31

The Reserve Bank of India (RBI) on Wednesday advised banks to keep its branches dealing with government business to remain open on March 31. The last day of the current financial year is a Sunday. "The Government of India has made a request to keep all branches of the banks dealing with Government receipts and payments open for transactions on March 31, 2024 (Sunday) so as to account for all the Government transactions relating to receipts and payments in the FY2023-24 itself," the RBI said in a statement. Accordingly, agency banks are advised to keep all their branches dealing with government business open on March 31, 2024 (Sunday), it said.

Bankrupt airline Go First's bidder ups bid following nudge from banks

Go First, which filed for bankruptcy in May last year, received two financial bids as part of its bankruptcy process, the second being Sharjah-based Sky One Airways, Reuters had reported

UBS Group moves past $100 billion a year after Credit Suisse shock

Overnight, the client funds managed by its wealth unit jumped by about one-fifth to $3.4 trillion at the time.

Public-sector banks asked to submit three-year business plans by March-end

According to the finance ministry's order, the business plans should cover strategies related to increasing low-cost deposits, raising capital, and resolving bad loans, among other things

Banks asked to check mis-selling, safeguard customers' interest: DFS Secy

Financial Services Secretary Vivek Joshi has said that public sector banks have been asked to check mis-selling of insurance products and ensure protection of account holders' interest. Banks have been sensitised on the matter, as the Department of Financial Services (DFS) regularly gets complaints that fraudulent and unethical practices are being adopted by banks and life insurance companies for procuring policies from the bank customers, he told PTI in an interview. "Banks have been asked to give utmost importance to the interest of account holders," he said. There have been instances where life insurance policies were sold to customers aged above 75 years in tier-II and III cities. Usually, banks push products of their subsidiary insurers. When resisted by customers, branch officials would sheepishly admit that they are under pressure from the top. Insurance products are pushed when customers go to seek any kind of loan or buy a term deposit. It is also conveyed that the Centr

5 PSU banks to reduce govt shareholding to meet Sebi's MPS norms: DFS Secy

Five public sector lenders, including Bank of Maharashtra, IOB and UCO Bank are planning to reduce government stake to less than 75 per cent to comply with Sebi's minimum public shareholding (MPS) norms, Financial Services Secretary Vivek Joshi has said. Out of 12 public sector banks (PSBs), four were complying with MPS norms as on March 31, 2023. "As part of an ongoing effort, three more PSBs have complied with minimum 25 per cent public float during the current financial year. Remaining five PSBs have laid out action plans to meet MPS requirement," he told PTI in an interaction. Currently, government holding in Delhi-based Punjab & Sind Bank is 98.25 per cent. It is followed by Chennai-based Indian Overseas Bank at 96.38 per cent, UCO Bank 95.39 per cent, Central Bank of India 93.08 per cent, Bank of Maharashtra at 86.46 per cent. As per the Securities and Exchange Board of India (Sebi), all listed companies must maintain an MPS of 25 per cent. However, the regulator had given .

RBI imposes Rs 1.4 crore penalty on Bank of India for non-compliance

The Reserve Bank of India (RBI) on Wednesday said it has imposed a penalty of Rs 1.4 crore on Bank of India for non-compliance with certain regulatory norms. It has also imposed a penalty of Rs 29.55 lakh on private sector lender Bandhan Bank for non-compliance with certain directions. The penalty on Bank of India has been imposed for non-compliance with the RBI's directions related to 'interest rate on deposits', 'customer service in banks', 'interest rate on advances', and contravention of provisions of Credit lnformation Companies Rules, 2006. The RBI said statutory inspection for supervisory evaluation of the bank was conducted by it with reference to its financial position as on March 31, 2021 and March 31, 2022. Meanwhile, the RBI also said a penalty of Rs 13.60 lakh has been imposed on Indostar Capital Finance Ltd for non-compliance with the 'Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016' and with certain provisions of KYC directions. In all cases, the penal

RBI tells 2 banks to stop adding new customers to co-branded credit cards

RBI directed South Indian Bank and Federal Bank to stop adding new customers to their co-branded credit cards, the lenders did not disclose the reasons cited by the central bank

Banks' lending rate hit 46-month high in Jan; for fresh deposits in Aug

The weighted average lending rate by scheduled commercial banks on fresh loans increased to 9.45 per cent in January 2024 compared to 9.32 per cent in December 2023