Page 29 - Indian Banking Sector

After IL&FS crisis, Covid-19 makes NBFCs struggle despite RBI actions

While bank credit to NBFCs has seen a rise of 30 per cent year on year, credit has mostly flown into larger NBFCs with good parentage and ones with better ALM positions.

RBI proposes 10-yr term for bank promoter-CEOs, 15 yrs for non-promoters

If the CEO or WTD is not a promoter or major shareholder of the bank, that person can continue for 15 years at the bank, after which he or she must step down.

Foreign portfolio investors to pick up $300-million stake in YES Bank

The FPIs are in advanced talks with an Indian bank to act as a custodian.

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

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

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

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

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

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

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.

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.

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

Lockdown 4.0: Normalcy returning for shadow lenders, albeit at a slow pace

Enquiries for fresh loans see uptick

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.

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

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."

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.

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

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.