Page 38 - Banks

Kotak Mahindra Bank bets big on SMEs, mid-market segments in South

Currently, the bank's SME and mid-market portfolio forms 27 per cent of its entire wholesale banking book

After RBI bans Bob World, Bank of Baroda shares decline around 3%

Shares of state-owned lender Bank of Baroda declined more than 3 per cent on Wednesday. On Tuesday, the Reserve Bank of India barred the Bank of Baroda from onboarding new customers on its mobile app 'Bob World' following material supervisory concerns. The action taken by the central bank is based on certain material supervisory concerns observed in the manner of onboarding customers onto its mobile application. In late morning trade, shares of Bank of Baroda declined 3.10 per cent to Rs 207.55 apiece and plunged further to Rs 207.20 apiece, registering a 3.27 per cent fall during the day on the BSE. On the NSE, the stock of the company dived 2.96 per cent to Rs 207.95 per piece and went lower by 3.22 per cent to close at Rs 207.40 per scrip. In the volume terms, 12.69 lakh equity shares were traded on the BSE, while 4.30 crore shares were on the NSE, during the day. The 30-share BSE Sensex rose 393.69 points to close at 66,473.05, while NSE Nifty gained 121.50 points to settle a

Indian banks pursue unpaid loans by Singapore's GVK in British court

A trial involving six Indian banks pursuing unpaid loans amounting to an estimated USD 2 billion, including interest accrued, from GVK Coal Developers (Singapore) Pte Ltd and associated companies opened in the High Court here on Tuesday. Judge Dame Clare Moulder presided over the hearing at the Commercial Court division to hear the case brought by Bank of Baroda (acting by its Ras Al Khaimah branch), Bank of India (London branch), Canara Bank (London branch), ICICI Bank Ltd (acting by its Bahrain, Dubai and Off-Shore Banking branches), Indian Overseas Bank (Corporate Branch, India) and Axis Bank Ltd. The case dates back to 2011 and 2014, when loan facilities were made available to the company, which the banks say are long overdue other than USD 83 million from the proceeds of the sale of a Bengaluru airport and certain amounts not in dispute. According to court documents, the banks have been pursuing the case at the High Court in London since 2020. GVK's legal representatives had .

SBI chairman Dinesh Kumar Khara gets extension till August next year

State Bank of India (SBI) on Friday said the government extended the tenure of the bank's chairman Dinesh Kumar Khara till August next year. The government extends the term of office of Dinesh Kumar Khara, Chairman, State Bank of India beyond October 2023 till he attains the age of 63 years, or until further orders, whichever is earlier, SBI said in a regulatory filing quoting the finance ministry's notification. Khara attains the age of 63 years on August 28, 2024. SBI, in another filing, informed about the extension of the tenure of Ashwini Kumar Tiwari as the managing director for two years beyond January 27, 2024.

Monetary policy: RBI flags financial stability risks from unsecured loans

Outlier growth in the retail unsecured loan segment prompted the RBI to flag the risks that can arise to financial stability, the Reserve Bank said on Friday. Comments by Governor Shaktikanta Das while announcing the bi-monthly monetary policy review are just an advisory and the central bank is not announcing any macroprudential measures at this point of time, Deputy Governor J Swaminathan said. "We would expect, as the first layer of defence, the banks, NBFCs and fintechs, to take appropriate internal controls," he said, warning that the RBI will "examine" the aspect if it does not see action on it. Earlier in the day, Das said certain components of personal loans are recording very high growth and the RBI is closely monitoring the same for any signs of incipient stress. "Banks and NBFCs would be well advised to strengthen their internal surveillance mechanisms, address the build-up of risks, if any, and institute suitable safeguards in their own interest," he added. There had ..

Banks continue to struggle for CASA share in Q2, challenge to remain in H2

CASA accounts, vital for daily operations of businesses, households, or individuals, offer banks a cost-effective source of funds

MDB reforms off the block

Driven by the G20 declaration, transformative changes have begun at multilateral banks

Banks, financial services behind 70% jump in greenwashing incidents in 2023

European financial institutions accounted for most of those instances, and much of the greenwashing involved claims about fossil fuels

Last date to exchange Rs 2,000 banknotes is tomorrow, clarifies RBI

The RBI had earlier fixed September 30, 2023 as the last date for the purpose of completing the exercise in a time-bound manner and to provide adequate time to the public

Depositors' trust is with banks, not fintech cos: Mastercard India chief

Chairman of Mastercard India Rajnish Kumar on Thursday said that the trust of the depositors is with the banking system and not with fintech companies. Speaking at the CII banking conclave here, Kumar, also the former chairman of the State Bank of India (SBI), said that what the fintech companies are challenging is the legacy system in an innovative way. "Banks are now conscious about innovative capabilities and changing fast with the times", he said. Because of the legacy system, the challenges for the banks are much more. "Leadership has a big role to play. Most of the public sector banks are actively adopting technology", he said. Implementation of the core banking system (CBS) was a humongous task, but the legacy banks did it, he said. Core banking has now changed and paved the way for app-based banking, Kumar added.

30-year sovereign green bonds may attract insurance companies, not banks

A report by Nomura expressed disappointment at the government's sporadic issuance of green bonds, stating it has led to a relative lack of liquidity in these securities

G20 & beyond: Multilateral banks take centre stage

As Multilateral Development Banks lead the charge to achieve sustainable development goals, here are four clear paths they should follow

JPMorgan settles claims that it enabled Epstein's sex trafficking acts

JPMorgan Chase has agreed to pay USD 75 million to the US Virgin Islands to settle claims that the bank enabled the sex trafficking acts of financier Jeffrey Epstein. JPMorgan said on Tuesday that USD 55 million of the settlement will go toward local charities and assistance for victims. Another USD 20 million will go toward legal fees. The Virgin Islands, where Epstein had an estate, sued JPMorgan last year, saying its investigation has revealed that the financial services giant enabled Epstein's recruiters to pay victims and was indispensable to the operation and concealment of the Epstein trafficking enterprise. Epstein died by suicide in a federal jail in 2019.

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

Here's why Adani's grip on banks is tighter than his hold on markets

Overseas institutions are also a better bet for Adani. Tapping Indian banks, especially state-run lenders, would be a tad cheaper, but might invite greater political scrutiny ahead of general election

Bank lending to NBFCs jumps 23.6% in July to Rs 13.8 trillion: Report

Banks' credit exposure to non-banking financial companies rose 23.6 per cent on-year to Rs 13.8 lakh crore in July, pushing up their overall share to 9.3 per cent during the month, an analysis of the RBI's monthly data by a ratings agency showed. The month also saw lower borrowings from international markets due to the prevailing elevated global interest rates following tightening of monetary policies by global central banks, according to a note by Care Edge. There has been a consistent upward trend in bank credit to NBFCs in the second half of FY22, coinciding with the phased reopening of the economy after the pandemic. The growth momentum further accelerated during FY23 and in the first quarter of FY24. However, NBFCs' overall borrowings on a month-on-month basis declined 3.3 per cent, primarily due to the merger of HDFC with its subsidiary HDFC Bank from July 1, Care Edge said. Mutual funds' debt exposure to NBFCs, including Commercial Papers (CPs) and corporate debt, jumped 60.

Global banks expand maternity benefits to retain women employees in India

India already mandates a minimum 26 weeks of maternity leave at full pay - among the most in the Group of 20 economies, according to the World Bank's Gender Data Portal

'Inputs ignored': Dhanlaxmi Bank independent director resigns from board

This comes after Ravindran Pillai, head of R P Group, came out with a special notice for the removal of Kalyanasundaram by passing a resolution at its 96th AGM to be held on 30 September

Non-SLR bond inclusion in HTM expected to deepen corporate bond market

Bank treasury heads believe that the inclusion of non-SLR securities in HTM portfolios may spur activity in the corporate bond market

Re-jig of banks' investment rules to boost govt debt appetite: Bankers

Currently, the limit is 19.5% of a bank's net deposits, with some dispensation on bonds purchased between Sept. 1, 2020 and March 31, 2023