Page 49 - Indian Banks
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")
Franklin Templeton gave Rs 518 cr loan to YES Capital
Schemes among the six wound up by the fund house had given the loan crore against non-convertible debentures (NCDs) to the firm in March 2019, according to ED's chargesheet
 "Franklin Templeton gave Rs 518 cr loan to YES Capital")
Revised inter-creditor pacts may do away with need for 66% lenders' nod
Banks will be able to customise ICAs in accordance with their needs even as more financial stakeholders are on-boarded, including those with foreign currency exposures
 "Revised inter-creditor pacts may do away with need for 66% lenders' nod")
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")
Liquidity, labour and logistics are the key challenges: JSW Steel's Rao
Ensuring return of labour as important as sending them back home, says Seshagiri Rao
 "Liquidity, labour and logistics are the key challenges: JSW Steel's Rao")
DCB Bank's profit before tax declines 37.6% to Rs 93.84 crore in Q4
Net profit for the financial year ended March 31, 2020 (FY20), stood at Rs 337.25 crore, up marginally from Rs 325.37 crore in FY19.
 "DCB Bank's profit before tax declines 37.6% to Rs 93.84 crore in Q4")
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.
 "Last rate cut for now but there're more bullets in RBI's chamber")
What steps did the govt take to prevent MSMEs from defaulting on loans?
Two important steps have been taken in this regard by the govt
 "What steps did the govt take to prevent MSMEs from defaulting on loans?")
All for liquidity: Watch every rupee, chase dues, and refinance debt
Refinancing high-cost debt into low-cost debt is possible, thanks to the RBI's TLTROs
 "All for liquidity: Watch every rupee, chase dues, and refinance debt")
Stimulus 2.0: Banks will monitor solvency, guarantees cool credit risk fear
While the issue of providing liquidity to existing borrowers who are sapped of revenues has been addressed, banks will have to undertake due diligence on the solvency of units, said bankers.
 "Stimulus 2.0: Banks will monitor solvency, guarantees cool credit risk fear")
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")
YES Bank auditor red-flags multiple breaches of RBI's norms in FY20
Bank sets aside Rs 334 cr for expected penalty for SLR breach
 "YES Bank auditor red-flags multiple breaches of RBI's norms in FY20")
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%")
Delinquency in credit card industry improved by 5 bps in 2019: Report
The outstanding portfolio of private banks in the credit card space has increased by 59 per cent year-on-year while other issuers saw a 20 per cent growth in 2019 over 2018.
 "Delinquency in credit card industry improved by 5 bps in 2019: Report")
Slowdown blues: Incremental credit flow drops 64% to Rs 6.04 trn in FY20
Economic slowdown hits activity, adding fuel to the fire
 "Slowdown blues: Incremental credit flow drops 64% to Rs 6.04 trn in FY20")
BofA Securities pegs PSBs recap requirement at Rs 52,990 cr - Rs 113,550 cr
BofA Securities believes one way to fund the requirement is via recapitalisation bonds.
 "BofA Securities pegs PSBs recap requirement at Rs 52,990 cr - Rs 113,550 cr")
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