Page 40 - Banks

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

Lenders likely to hike deposit rates up to 25 bps this festival season

Only those with asset-liability management mismatch would consider upward rate revisions

RBI, banks plan new feature to popularise digital currency transactions

Retail CBDC transactions are averaging close to 18,000 a day, way short of the RBI's one million-a-day target by 2023 end

Why the story of India's so-called 'bad bank' has not been too good so far

The target was for banks to sell Rs 2 trillion worth of non-performing assets (NPAs) to NARCL by 2021-22. Only 10 per cent of this has been executed

Indian G20 presidency has walked the talk on MDBs, inclusion: FM Sitharaman

Expert group report on MDB reforms, IMF-FSB synthesis note on crypto to be taken up in next finance track meeting in Marrakesh

Banks can't use LOC as measure to recover money: Delhi High Court

Banks cannot use Look Out Circulars as a way to recover money, the Delhi High Court has said, holding LOCs can't be opened on mere possibility of a person being made an accused in a criminal case as they take away a person's right to travel abroad which is a fundamental right under the Constitution. A Look Out Circular (LOC), the high court said, is a measure to make a person surrender before investigating authorities or a court of law and can be issued only when there are sufficient reasons for it. The court made the observations while quashing the LOC issued at the insistence of Bank of Baroda against Nipun Singhal, a former director at Lloyd Electric and Engineering Limited which is facing a CBI probe over certain transactions. The court was informed that about 18 months after the petitioner had left the company, it was declared as a non-performing asset in November 2018, and in January 2022, the petitioner received a show cause notice from Bank of Baroda about having been declar