Page 26 - Indian Banking Sector
Union Bank creates new organisational structure with 18 zonal offices
The bank has opened two new zonal offices in the southern part of the countryaimed at further strengthening its market share
 "Union Bank creates new organisational structure with 18 zonal offices")
Bank of Baroda, Union Bank of India reduce lending rates across all tenors
Bank of Baroda has revised its one-year MCLR to 7.65 per cent from 7.80 per cent
 "Bank of Baroda, Union Bank of India reduce lending rates across all tenors")
Interest waiver will impact financial viability of banks: RBI to SC
The RBI also said that the moratorium on loans, which was recently extended to August 31, is in the nature of a deferment and cannot be construed to be a waiver
 "Interest waiver will impact financial viability of banks: RBI to SC")
Federal Bank's Q4 PBT declines 32% over provisions for Covid-19 pandemic
The bank's provision coverage ratio improved to 72.48 per cent at end of March 2020, up from 67.16 per cent in March 2019
 "Federal Bank's Q4 PBT declines 32% over provisions for Covid-19 pandemic")
High risk aversion of most lenders is astounding, says Bajaj Finserv CMD
Instead of extending the moratorium by another three months, it would have been better to allow lenders to offer a one-time restructuring only to those who need it, says Sanjiv Bajaj
 "High risk aversion of most lenders is astounding, says Bajaj Finserv CMD")
State Bank of India slashes FD rate by 40 bps, second cut in May
The lender will also extend EMI moratorium by 3 months for all eligible customers without waiting for a request
 "State Bank of India slashes FD rate by 40 bps, second cut in May")
ATMs to become virtual bank branches, accept deposits with instant credit
Close to 14.6 per cent (or 35,000) of the 240,000 ATMs in India are new-age recyclers, even though they have been around for only 3 years on the local landscape.
 "ATMs to become virtual bank branches, accept deposits with instant credit")
IDFC First Bank seniors to forgo 65% of bonus amid Covid-19 crisis
V Vaidyanathan, managing director and chief executive, will take 30 per cent cut in his compensation, including fixed compensation as well as all allowances.
 "IDFC First Bank seniors to forgo 65% of bonus amid Covid-19 crisis")
Last rate cut for now but there're more bullets in RBI's chamber
Following this, the reverse repo rate, or the rate at which the banks perk extra liquidity with the RBI, was reduced to 3.35 per cent from 3.75 per cent - both at their historic lows.
Covid-19 crisis: Slippages may jump to Rs 5.5 trillion, says India Ratings
Credit costs could touch Rs 2.7 trillion
 "Covid-19 crisis: Slippages may jump to Rs 5.5 trillion, says India Ratings")
Lockdown 4.0: Normalcy returning for shadow lenders, albeit at a slow pace
Enquiries for fresh loans see uptick
 "Lockdown 4.0: Normalcy returning for shadow lenders, albeit at a slow pace")
Bad bank may start with Rs 60K-crore NPAs; govt may put in Rs 10K crore
Banking lobby group Indian Banks' Association (IBA) is expected to take the proposal, which is on the lines of the Sashakt panel recommendations, to the finance ministry this week.
 "Bad bank may start with Rs 60K-crore NPAs; govt may put in Rs 10K crore")
MSME sector's bad loan ratio at 12.5% as of January, shows report
NPA level of public sector banks has increased from 18 per cent in December 2018 to 19 per cent in December 2019
 "MSME sector's bad loan ratio at 12.5% as of January, shows report")
Covid-19 crisis: It's time for concrete revival plan, says SBI chairman
Rajnish Kumar said, "a certainty on regulatory stance, and support that may be coming from the government, is required as we are now in the exit phase of the lockdown."
 "Covid-19 crisis: It's time for concrete revival plan, says SBI chairman")
Blue chips see cuts in target prices; half of Nifty sees cuts of over 15%
According to data from Bloomberg, banks have seen among the sharpest cuts in target prices -- between 16 and 60 per cent.
 "Blue chips see cuts in target prices; half of Nifty sees cuts of over 15%")
Expect slippages to rise to 9% post lockdown: YES Bank's Prashant Kumar
The plan to raise up to Rs 15,000 crore is very much on. We have identified six merchant bankers for the process and are waiting for the Q4 results to be out, YES Bank's MD said
 "Expect slippages to rise to 9% post lockdown: YES Bank's Prashant Kumar")
Covid-19 crisis: RBI may extend moratorium on bank loans by 90 more days
Suggestions from various quarters, including from Indian Banks' Association, have come for the further extension of moratorium and the RBI is actively considering them, according to sources.
 "Covid-19 crisis: RBI may extend moratorium on bank loans by 90 more days")
RBI guv Das chastises banks not doing enough on lending, NBFC liquidity
Relaxation likely on branch audit as Guv meets bankers
 "RBI guv Das chastises banks not doing enough on lending, NBFC liquidity")
RBI governor Shaktikanta Das to hold meeting with bank chiefs today
The meeting will take stock of implementation of several steps announced by the RBI, including moderation in interest rate and its transmission, as well as liquidity infusion measures for industry
Sidbi, Nabard compete to lend to top MFIs under RBI's liquidity support
According to informal estimates, the two organisations together are looking to extend Rs 7,000-8,000 crore in funding
 "Sidbi, Nabard compete to lend to top MFIs under RBI's liquidity support")