Page 47 - Banks

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CBI registers 2 cases against IL & FS subsidiaries for defrauding banks

The Central Bureau of Investigation (CBI) has registered two separate cases against IL & FS subsidiaries and its directors for allegedly duping banks to the tune of Rs 120.03 crore.The FIR accessed by ANI reads that the general manager of Punjab National Bank registered a complaint with CBI alleging that the borrower Company IL & FS Energy Development Company Ltd. (IEDCL) and its Directors, namely, Hari Sankaran, Late Ravi Parthasarathy (since died), Ramesh Chander Bawa, Arun Kumar Saha, Sunil Kumar Wadhwa and Anoop Seth and another unknown private person (s) and unknown public servant(s) entered into a criminal conspiracy to cheat Punjab National Bank (e- United Bank of India) and the accused persons misappropriated the sanctioned credit facilities by way of cheating, utilization of loan funds contrary to the sanction terms and conditions, diversion of sale proceeds to related/ sister concern companies, etc. and thereby caused wrongful loss to the tune of Rs 100.03 Cr plus to

Swiss central bank urges review of 'too big to fail' bank safeguards

Switzerland's central bank said the government and regulators should carry out an in-depth review of rules aimed at preventing disastrous bank collapses, saying key guardrails failed to prevent Credit Suisse from needing to be rescued by Swiss competitor UBS. The Swiss National Bank scrutinised several of the safeguards imposed in the wake of the 2008-2009 global financial crisis that were aimed at preventing a repeat. The central bank concluded that several too big to fail rules designed to avoid the collapse of a major global bank were inadequate and may even have delayed action to ward off disaster. Looking forward, the experience with Credit Suisse shows the need for a review of the TBTF framework in order to facilitate early intervention, the central bank said in its annual financial stability report published on Thursday. It is now up to the authorities to carry out an in-depth review and draw lessons, also in view of the higher systemic importance of the combined bank and th

Manipal Technologies partners with Indian Bank to offer banking products

Manipal Technologies Limited on Thursday said it has partnered with state-owned Indian Bank to drive financial inclusion by offering customised banking products. The partnership aims to build a sustainable network of corporate business correspondents (CBCs) that will enhance the availability, affordability, and accessibility of financial services, particularly in underserved markets and rural areas, it said in a release. As part of this association, Manipal Technologies Limited (MTL) will work closely with Indian Bank to offer tailor-made banking products in rural locations. The initial focus will be serving more than 600 locations and gradually expanding the presence in newer regions in states such as Tamil Nadu, Chhattisgarh, Uttar Pradesh, Kerala, Maharashtra, Haryana, and Punjab, MTL said. "We aim to empower individuals with seamless access to financial services, ranging from account opening, withdrawals, deposits, lead generation, opening FDs (fixed deposits), and applying for

RBI directive on one-time-settlement with defaulters can derail banks: MP

The RBI circular permitting banks to enter into a one-time settlement with wilful defaulters poses a significant risk to the stability of financial institutions in the country, the CPI MP Binoy Viswam has said. In a letter to Union Finance Minister Nirmala Sitharaman, Viswam said that by offering lenient settlement terms to individuals and entities that have deliberately evaded their repayment obligations, the circular undermines the fundamental principles of responsible lending and borrower accountability. "I write to you to express my deep apprehensions regarding the circular issued by the Reserve Bank of India (RBI) permitting banks to enter into a one-time settlement (OTS) with wilful defaulters. This circular poses significant risks to the stability of our financial system," he said. He said that such a move not only "erodes public confidence in our banking sector but also creates moral hazards by incentivizing reckless borrowing and default." "Allowing wilful defaulters to ..

Indian banks looking for a bigger stake in digital India via own QR codes

Lenders are leveraging partnerships with fintechs and technology service providers to manage their apps and QR codes

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