Page 44 - Banks

Compromise settlement provides ways to lenders to recover lost money: RBI

The Reserve Bank of India (RBI) said on Tuesday that a "compromise settlement" with borrowers aims to enable multiple avenues to lenders to recover the money in default without much delay.

Tweaking banks' key regulatory need may ease interbank cash mkt volatility

MUMBAI (Reuters) - A slight tweak to a key regulatory requirement for Indian banks could help reduce volatility in the overnight interbank borrowing rates, senior bank treasurers said on Tuesday.

RBI approves re-appointment of Vasudevan P N as MD, CEO of Equitas SFB

The Reserve Bank of India on Friday gave its nod for the re-appointment of P N Vasudevan as Managing Director and Chief Executive Officer of private sector Equitas Small Finance Bank The tenure of his appointment would be for a period of three years with effect from July 23, 2023. In a BSE filing, Equitas Small Finance Bank said, "..we would like to inform that Reserve Bank of India vide its letter.... dated June 15, 2023, has given its approval for re-appointment of Vasudevan P N, Managing Director and Chief Executive Officer of the Bank for a period of three years with effect from July 23, 2023." Vasudevan had expressed his desire to move on from his role for a career in health and education. However, in December 2022 he withdrew his decision. Equitas Small Finance Bank reported a net profit of Rs 190.03 crore for the quarter ending March 31, 2023. The bank had registered a net profit at Rs 119.50 crore during the corresponding quarter of the previous year. For the year ending M

Banks ask RBI to frame policy for silver loans similar to gold metal loans

Under the current Gold Monetisation Scheme, 2015, banks can give gold loans to jewellery exporters or domestic makers. The loan, equivalent to the value of gold borrowed, needs to be repaid in rupees

Examine if business models aligned with risk appetite: RBI's M K Jain

He also said that the supervisors need to examine IT issues holistically to determine whether banks have the capacity to develop robust IT systems that align with their business strategies

Wilful defaulters may get loan after five years of compromise settlement

Debt recast to be allowed only if promoter changes

Loan closure to KYC norms: What RBI panel's suggestions mean for you

Proposals will improve banking for customers; make lenders be mindful of how they sell products

US PE firm Bain Capital plans to sell $267 mn stake in Axis Bank: Report

The stake sale would likely be at an offer price range of 964.00 rupees to 977.70 rupees per share, the report added

Higher deposit pricing to compress net interest margins by 10-20 bps

Banks are expected to see a 10-20 bps compression in their net interest margins (NIMs) to 3-3.1 per cent this fiscal as they price deposits higher to attract more funds, says a report. However, lower credit costs will offset this tailwind on account of continued benign asset quality, which will help them maintain profitability steady after touching a decadal high of 1.1 per cent on a return on assets basis, last fiscal, Crisil Ratings said in a report on Tuesday. According to Krishnan Sitaraman, a senior director and chief ratings officer at the agency, NIMs have peaked at the system level. Competition for deposits has driven banks to hike rates since October 2022, and they can increase the rates further given that deposit growth continues to lag credit growth. With an estimated 30-35 per cent of deposits expected to come up for re-pricing this fiscal at higher rates, and the shift from current and savings deposits to term deposits continuing, overall deposit costs will rise this ..

Keytrade Bank selects Infosys Finacle suite for core banking transformation

The bank will subscribe to the Infosys Finacle suite in a software-as-a-service (SaaS) mode on the Microsoft Azure public cloud

India set for $168 bn behemoth as HDFC merger to be completed by 20 July

Announcement of the so called 'record date' - or the cut-off day set for investors - for the swapping of shares of Housing Development Finance Corp. for HDFC Bank Ltd

Stellar show by banks, but will it continue?

There are challenges ahead. It won't be easy for the banking sector to put up a better performance every quarter

China's state-run banks reduce interest rates on deposits: Report

China's largest state-run banks have reduced interest rates on deposits this week to boost consumer spending

RBI notifies 4 key measures to strengthen 1,514 urban co-operative banks

Aiming to strengthen 1,514 urban co-operative banks, the Centre on Friday said the Reserve Bank has notified four key measures, including giving them two years more to meet the priority sector lending targets. The Ministry of Cooperation in a statement said that four important initiatives have been taken to strengthen 1,514 Urban Co-operative Banks (UCBs) in the country. "Pursuant to detailed discussions held by Union Home Minister and Minister of Cooperation Amit Shah, with Finance Minister Nirmala Sitharaman and Governor, Reserve Bank of India (RBI), the RBI has notified these vital measures to strengthen Urban Co-operative Banks," it said. The ministry has listed the four measures notified by the RBI. In order to expand their business, UCBs can now open new branches up to 10 per cent (maximum 5 branches) of the number of branches in the previous financial year without prior approval of RBI in their approved area of operation. UCBs have to get the policy approved by their board

Clarification on applicability of TCS on overseas credit card spends soon

The tax department will soon come out with a clarification in the form of FAQs to distinguish between expenses incurred on personal visits and business trips for levy of 20 per cent TCS on overseas credit card spends from July 1, a senior official said on Friday. Following a notification which brought credit card spends under LRS, concerns have been raised on how personal and business expenses would be segregated by the banks who will be required to deduct the TCS on such expenses. Finance ministry joint secretary (Tax Policy and Legislation) Raman Chopra said the government would soon issue a clarification on the mode of applicability of the TCS provision. "There has been a lot of discussion with the finance secretary, the revenue secretary and the finance minister. We are certainly going to come up with some clarifications and FAQs on that and that will clarify the position beyond any reasonable doubt in what manner TCS is to be collected and to what extent threshold is available

Exchange of Rs 2,000 notes: SC refuses plea challenging RBI decision

The Supreme Court on Friday refused urgent hearing on a plea challenging the notifications enabling exchange of Rs 2,000 currency notes without any requisition slip and ID proof. A vacation bench of justices Aniruddha Bose and Rajesh Bindal perused the report filed by the registry, and said there is no urgency in the matter. The top court directed that the matter be placed before Chief Justice D Y Chandrachud after summer vacations. The petitioner advocate Ashwini Upadhyay submitted that it was very unfortunate that the top court is not taking up such an important matter. The apex court said this is a court and not a public platform and the matter has to end somewhere. This is second time that the apex court has refused an urgent hearing on the issue. On June 1, the top court had refused to list for urgent hearing Upadhyay's plea challenging the notifications and said it would not be taking up such pleas during the summer break. The lawyer had earlier submitted that Rs 2,000 ban

Tepid response to RBI's two-day VRRR auction; banks park Rs 1,850 crore

The central bank infuses liquidity into the banking system using repos and sucks it out using reverse repos

270 mn loans to women under MUDRA; here's all you need to know about scheme

The MUDRA loans are given by commercial banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial institutions

Banks' reliance on AI to handle customer service worries consumer watchdog

Can you trust Erica, or Sandi or Amy to increasingly control parts of your financial life without giving you inaccurate information or sending money to the wrong place? That's what the Consumer Financial Protection Bureau is asking in a report released Tuesday, where the bureau lays out a number of concerns about the growing use of chatbots by banks to handle routine customer service requests. The CFPB worries that banks or loan-servicing companies may cut back on human customer service employees and push an increasing number of routine tasks to AI. Further, the regulator says poorly designed chatbots could run afoul of federal laws that govern how debts are collected or how personal information is being used. If firms poorly deploy these services, there's a lot of risk for widespread customer harm, said Rohit Chopra, director of the CFPB, in an interview with The Associated Press. For several years, banks have been handling more and more customer service requests with chatbots, of

Banks can offer NDF contracts to resident Indians for hedging: RBI

MUMBAI (Reuters) - India's central bank has issued rules allowing banks to offer non-deliverable forward contracts involving the rupee to resident Indians.