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☕ 22.03.2020: Today's Banking / Financial News at a Glance
ЁЯНТ A secret RBI team is fighting a parallel war against Covid-19 : While the world tries to come to grips with a pandemic, a crack team from the Reserve Bank of India (RBI) has been reportedly working from a remote location to ensure the country's financial system stays immune to Covid-19, the rogue virus that has claimed over 10,000 lives across the world so far. According to a Business Standard report, the team, of about 150 people and from critical RBI wings like debt, reserve management, is part of the central bank's business continuity plan to ensure Covid causes minimum disruption to the financial system. The team, the report added, has been on it since March 19. This, according to another Mint report, is first such measure undertaken by the Central bank that will ensure that key information technology (IT) services for the delivery of digital banking, treasury services and cheque clearance are not disrupted by the outbreak, and also ensure the smooth running of RBI functions from secured data centres as nearly 14,000 staffers, except senior-most management, reportedly work from home. The BS report claims the team has been split into two. While one runs the checks, the other is on standby. - economic times
ЁЯНТ RBI chalks out contingency plan for smooth functioning of services : The Reserve Bank of India (RBI) has put in place a contingency plan to ensure that key information technology (IT) services for the delivery of digital banking, treasury services and cheque clearance are not disrupted by the coronavirus outbreak, according to an official who spoke on condition of anonymity. RBI has, for the first time, shared its Business Continuity Plan (BCP), an integral risk mitigation measure for critical operations such as ensuring zero disruptions in the national payments systems. It includes measures to prepare for anticipated disruptions, ensure smooth flow of operations and staffing, identify key resources, and form crisis management groups, while keeping all staff insulated from exposure to the virus. - Live Mint
ЁЯНТ RBI extends regulatory restrictions on PMC Bank by 3 months : Even as the Reserve Bank managed a resolution plan for the troubled private commercial bank- Yes Bank, it has extended restrictions to the troubled cooperative bank- Punjab and Maharashtra Co-operative (PMC) Bank citing restriction over the regulatory turf of co-operative banks and legal restrictions delaying the process. Defending its position, the banking regulator elaborated its stand regarding revival of the co-operative bank. "It must be noted that unlike in the case of commercial banks, the Reserve Bank has no powers to draw up an enforceable scheme of reconstruction of a cooperative bank" the Reserve Bank said in a release on Saturday. " Nevertheless, in the interest of the depositors and the stability of the cooperative banking sector, the Reserve Bank of India, in consultation with various stakeholders and authorities, is trying to work out a scheme for revival of the bank" But it reiterated the need to extend restrictions by another three months " In order to take this forward, it is considered necessary to extend the aforesaid Directions for a further period of three months" RBI said. - economic times
ЁЯНТ Banks push digital offerings, insurance amid corona scare : As people are socially distancing themselves amid the spread of the novel coronavirus pandemic, banks have been promoting their digital offerings through various measures such as widening their digital services to waiving off charges on digital transactions, and even providing insurance cover to customers. At the same time, some banks are witnessing lower volumes on digital payments owing to reduced consumer activity. Earlier this week, Bank of Baroda (BoB) announced zero charges on digital transactions for three months, while ICICI Bank launched ‘ICICIStack’, which provides nearly 500 digital services on a single platform to cover most banking requirements. These services, which are in the categories of accounts, payments, loans, investment stacks, among others, are end-to-end digitised and require little or no manual intervention. Sameer Shetty, head – digital banking, Axis Bank, said that the bank is also planning to launch a new set of digital products across liabilities, loans and fee products in the coming months. With the spread of the pandemic, the bank has been seeing an increase in insurance inquiries. “In light of the current events, we have launched customised insurance solutions for our customers over the last week. Some of these solutions cover the needs of customers in the wake of the coronavirus issue,” Shetty added. - Financial Express
ЁЯНТ Indian Bank urges customers to go digital to keep Coronavirus at bay : Indian Bank has requested its customers to use its Digital Banking Services (DBS) in order to protect themselves from the coronavirus. "The bank requests all the customers and the general public to avoid visiting the public places including banks, in order to curtail the spread of virus through human-chain. Banks and ATMs are frequented by the general public, which may further aggravate the situation," said the Bank in a press statement today. It advised the public to use modes of digital payments such as mobile banking, internet banking, debit and credit cards from the convenience of their homes, instead of using cash which may require them to go to crowded places for paying bills. - Business Standard
ЁЯНТ No major impact on asset quality amid Covid-19 crisis: HDFC Bank : The HDFC Bank management told analysts on Thursday that it does not expect a significant impact on its asset quality as a result of lock-downs amid Covid-19 outbreak. While credit card spends at the bank held steady in the first two months of 2020, they dropped in March, the private sector lender said, adding it is tightening underwriting standards. The lender’s American depository receipts (ADRs) slumped 12% on the New York Stock Exchange (NYSE) on Wednesday, prompting the management to speak to analysts. The share price of HDFC Bank has fallen 31% between January 1 and March 20; most banking stocks have taken a beating, especially over the last week, with loan portfolios expected to deteriorate following the Coronavirus crisis. The concern stems from the assumption that HDFC Bank’s asset quality will worsen due to the current state of near lockdown in some parts of the country. HDFC Bank is a retail-focused bank, with retail loans accounting for 52% of the loan book, and has executed its strategy almost flawlessly over the last 20-odd years. The bank clarified that 70-75% of its exposure to small enterprises – a particularly vulnerable segment – is secured and that it has limited exposure to airlines, another segment that would be badly hit by the slowdown. The management is currently tightening its underwriting standards for credit cards. - financial express
ЁЯНТ RBI extends regulatory restrictions on PMC Bank by 3 months : Even as the Reserve Bank managed a resolution plan for the troubled private commercial bank- Yes Bank, it has extended restrictions to the troubled cooperative bank- Punjab and Maharashtra Co-operative (PMC) Bank citing restriction over the regulatory turf of co-operative banks and legal restrictions delaying the process. Defending its position, the banking regulator elaborated its stand regarding revival of the co-operative bank. "It must be noted that unlike in the case of commercial banks, the Reserve Bank has no powers to draw up an enforceable scheme of reconstruction of a cooperative bank" the Reserve Bank said in a release on Saturday. " Nevertheless, in the interest of the depositors and the stability of the cooperative banking sector, the Reserve Bank of India, in consultation with various stakeholders and authorities, is trying to work out a scheme for revival of the bank" But it reiterated the need to extend restrictions by another three months " In order to take this forward, it is considered necessary to extend the aforesaid Directions for a further period of three months" RBI said.- economic times
ЁЯНТ Coronavirus impact: HDFC Bank shares tank as Bernstein raises concerns : Shares of private sector lender HDFC Bank tanked nearly 8% intraday on Friday after global brokerage firm Bernstein downgraded its rating on the stock to underperform, citing risks emanating from the Covid-19 outbreak. "HDFC bank, being a quality franchise, has weathered crises well in the past and has often been seen as a safe haven. However, in the current pandemic-driven environment, we believe HDFC Bank carries certain idiosyncratic risks and unique management challenges," Gautam Chhugani, an analyst at Bernstein said in a note dated 19 March. At 0120 pm on the BSE, shares of the private sector lender traded 1.6% lower at ₹880.70 apiece, but off the day's low of ₹826.25. - Live Mint
ЁЯНТ Subhash Chandra appears before ED in Yes Bank case; Naresh Goyal in another probe : Essel Group Chairman Subhash Chandra appeared before the Enforcement Directorate on Saturday in connection with a money laundering probe against Yes Bank promoter Rana Kapoor and his family members, officials said. Also, Jet Airways founder Naresh Goyal was questioned by the ED in connection with a separate money laundering case linked to alleged financial fraud with a Mumbai-based tours and travel company.It was earlier stated by officials that Goyal was questioned in the Yes Bank case but later it was clarified that he joined investigation in another case. Goyal has been summoned by the agency in the Yes Bank case too but he is yet to depose.Officials said Subhash Chandra arrived at the ED office here at Ballard Estate at about 11 am.His statement will be recorded by the investigating officer of the case under the Prevention of Money Laundering Act (PMLA). The Essel Group has an alleged unpaid loan of Rs 8,400 crore towards Yes Bank. - economic times
ЁЯНТ Coronavirus pandemic | NCLAT to hear only 'urgent matters' : As a precautionary measure against the coronavirus outbreak, the National Company Law Appellate Tribunal (NCLAT) has restricted itself to hear only "urgent matters" till April 1 and has extended operation of all interim orders and stay passed in the pending matters till their next hearings. All the matters listed for hearing during the aforesaid period “shall stand adjourned and date of hearing would be noti?ed later," said the latest notice from NCLAT. "Interim order/stay order passed in the pending matters shall continue till the next date of hearing,” it said. Announcing the precautionary measures, NCLAT said: ”Premises of this Appellate Tribunal shall remain locked during the aforesaid period except for the days when the Bench will meet for hearing urgent matters upon mentioning.” “All judges, members and the staff members shall stay indoors/ con?ned to their residences, but shall not leave the Headquarters and shall be available/ accessible at short notice as and when their services are required,” said a notice issued by NCLAT registrar dated March 20. - moneycontrol.com
ЁЯНТ Investors lose more than Rs 13 lakh crore; over 300 stocks in BSE500 fell 10-50% : The Indian market witnessed one of its worst weeks since the 2008 market crash as benchmark indices plunged more than 12 percent each while the bigger cut was seen in the BSE Small-cap index which plunged 14 percent, and the Mid-cap index fell nearly 12 percent for the week ended March 20. Tracking global selloff, investors’ loses more than Rs 13 lakh crore in a week. The average market capitalisation of the BSE-listed companies fell from Rs 129.26 lakh crore registered on March 13, to Rs 116.09 lakh crore as on March 20. More than 90 percent of the stocks in the S&P BSE 500 index gave negative returns. As many as 313 stocks in the BSE500 index fell 10-50 percent. This included names such as Eicher Motors, MRF, Tata Coffee, Granules India, V-Mart, Uco Bank, Godrej Properties, Can Fin Homes Titan Company and Future Lifestyle among others. -Moneycontrol.com
ЁЯНТ LIC eyes sale of 2.5 cr individual policies, Rs 55,000 cr in premium collection for FY'20 : State-run life insurer LIC is hopeful of crossing its fiscal target of selling over 2.5 crore individual policies and a premium collection of more than Rs 55,000 crore before March 31, 2020. This is 17 per cent growth in terms of number of individual policies sold compared to the number of policies sold in FY19. "We have created a new record by selling 2,17,00,000 individual policies and a premium collection of Rs 50,500 crore as on March 21, 2020," the Life Insurance Corporation (LIC) said.The life insurer said it is confident of crossing its target of 2.5 crore individual policies well before March-end. - Moneycontrol.com
ЁЯНТ Rs 2000, Rs 500, Rs 200 or any note can spread Coronavirus! SBI Research suggests an alternative : In order to prevent the spread of novel Coronavirus through cash, SBI Research has suggested the government to examine the possibility of using polymer currency notes, instead of paper currency notes, on the lines of countries like Australia, UK and Canada. Experts say that the virus can spread through currency notes. Hence, it is better to switch to digital mode of transactions. But then, complete avoidance of cash in a country like India is probably not possible. Hence, there is a need for a safer alternative to paper currency notes. In its ‘Ecowrap’ report dated March 17, 2020, the SBI Research said, “Even if due precautions are taken, yet avoidance of cash usage cannot be avoidedand as such it becomes one of the most easy carrier for spreading any virus. Therefore, immediate steps should be taken to check spreading of any virus through currency notes. Countries like UK, Australia and Canada have switched to polymer notes to reduce the risk of spreading infections through currency. Therefore, the possibilities of usage of polymer notes in India should also be examined.” -economic times..
Have a Good day.. "ЁЯМ╗ЁЯСйЁЯСйЁЯСзЁЯСж
☕ 22.03.2020: Today's Banking / Financial News at a Glance
ЁЯНТ A secret RBI team is fighting a parallel war against Covid-19 : While the world tries to come to grips with a pandemic, a crack team from the Reserve Bank of India (RBI) has been reportedly working from a remote location to ensure the country's financial system stays immune to Covid-19, the rogue virus that has claimed over 10,000 lives across the world so far. According to a Business Standard report, the team, of about 150 people and from critical RBI wings like debt, reserve management, is part of the central bank's business continuity plan to ensure Covid causes minimum disruption to the financial system. The team, the report added, has been on it since March 19. This, according to another Mint report, is first such measure undertaken by the Central bank that will ensure that key information technology (IT) services for the delivery of digital banking, treasury services and cheque clearance are not disrupted by the outbreak, and also ensure the smooth running of RBI functions from secured data centres as nearly 14,000 staffers, except senior-most management, reportedly work from home. The BS report claims the team has been split into two. While one runs the checks, the other is on standby. - economic times
ЁЯНТ RBI chalks out contingency plan for smooth functioning of services : The Reserve Bank of India (RBI) has put in place a contingency plan to ensure that key information technology (IT) services for the delivery of digital banking, treasury services and cheque clearance are not disrupted by the coronavirus outbreak, according to an official who spoke on condition of anonymity. RBI has, for the first time, shared its Business Continuity Plan (BCP), an integral risk mitigation measure for critical operations such as ensuring zero disruptions in the national payments systems. It includes measures to prepare for anticipated disruptions, ensure smooth flow of operations and staffing, identify key resources, and form crisis management groups, while keeping all staff insulated from exposure to the virus. - Live Mint
ЁЯНТ RBI extends regulatory restrictions on PMC Bank by 3 months : Even as the Reserve Bank managed a resolution plan for the troubled private commercial bank- Yes Bank, it has extended restrictions to the troubled cooperative bank- Punjab and Maharashtra Co-operative (PMC) Bank citing restriction over the regulatory turf of co-operative banks and legal restrictions delaying the process. Defending its position, the banking regulator elaborated its stand regarding revival of the co-operative bank. "It must be noted that unlike in the case of commercial banks, the Reserve Bank has no powers to draw up an enforceable scheme of reconstruction of a cooperative bank" the Reserve Bank said in a release on Saturday. " Nevertheless, in the interest of the depositors and the stability of the cooperative banking sector, the Reserve Bank of India, in consultation with various stakeholders and authorities, is trying to work out a scheme for revival of the bank" But it reiterated the need to extend restrictions by another three months " In order to take this forward, it is considered necessary to extend the aforesaid Directions for a further period of three months" RBI said. - economic times
ЁЯНТ Banks push digital offerings, insurance amid corona scare : As people are socially distancing themselves amid the spread of the novel coronavirus pandemic, banks have been promoting their digital offerings through various measures such as widening their digital services to waiving off charges on digital transactions, and even providing insurance cover to customers. At the same time, some banks are witnessing lower volumes on digital payments owing to reduced consumer activity. Earlier this week, Bank of Baroda (BoB) announced zero charges on digital transactions for three months, while ICICI Bank launched ‘ICICIStack’, which provides nearly 500 digital services on a single platform to cover most banking requirements. These services, which are in the categories of accounts, payments, loans, investment stacks, among others, are end-to-end digitised and require little or no manual intervention. Sameer Shetty, head – digital banking, Axis Bank, said that the bank is also planning to launch a new set of digital products across liabilities, loans and fee products in the coming months. With the spread of the pandemic, the bank has been seeing an increase in insurance inquiries. “In light of the current events, we have launched customised insurance solutions for our customers over the last week. Some of these solutions cover the needs of customers in the wake of the coronavirus issue,” Shetty added. - Financial Express
ЁЯНТ Indian Bank urges customers to go digital to keep Coronavirus at bay : Indian Bank has requested its customers to use its Digital Banking Services (DBS) in order to protect themselves from the coronavirus. "The bank requests all the customers and the general public to avoid visiting the public places including banks, in order to curtail the spread of virus through human-chain. Banks and ATMs are frequented by the general public, which may further aggravate the situation," said the Bank in a press statement today. It advised the public to use modes of digital payments such as mobile banking, internet banking, debit and credit cards from the convenience of their homes, instead of using cash which may require them to go to crowded places for paying bills. - Business Standard
ЁЯНТ No major impact on asset quality amid Covid-19 crisis: HDFC Bank : The HDFC Bank management told analysts on Thursday that it does not expect a significant impact on its asset quality as a result of lock-downs amid Covid-19 outbreak. While credit card spends at the bank held steady in the first two months of 2020, they dropped in March, the private sector lender said, adding it is tightening underwriting standards. The lender’s American depository receipts (ADRs) slumped 12% on the New York Stock Exchange (NYSE) on Wednesday, prompting the management to speak to analysts. The share price of HDFC Bank has fallen 31% between January 1 and March 20; most banking stocks have taken a beating, especially over the last week, with loan portfolios expected to deteriorate following the Coronavirus crisis. The concern stems from the assumption that HDFC Bank’s asset quality will worsen due to the current state of near lockdown in some parts of the country. HDFC Bank is a retail-focused bank, with retail loans accounting for 52% of the loan book, and has executed its strategy almost flawlessly over the last 20-odd years. The bank clarified that 70-75% of its exposure to small enterprises – a particularly vulnerable segment – is secured and that it has limited exposure to airlines, another segment that would be badly hit by the slowdown. The management is currently tightening its underwriting standards for credit cards. - financial express
ЁЯНТ RBI extends regulatory restrictions on PMC Bank by 3 months : Even as the Reserve Bank managed a resolution plan for the troubled private commercial bank- Yes Bank, it has extended restrictions to the troubled cooperative bank- Punjab and Maharashtra Co-operative (PMC) Bank citing restriction over the regulatory turf of co-operative banks and legal restrictions delaying the process. Defending its position, the banking regulator elaborated its stand regarding revival of the co-operative bank. "It must be noted that unlike in the case of commercial banks, the Reserve Bank has no powers to draw up an enforceable scheme of reconstruction of a cooperative bank" the Reserve Bank said in a release on Saturday. " Nevertheless, in the interest of the depositors and the stability of the cooperative banking sector, the Reserve Bank of India, in consultation with various stakeholders and authorities, is trying to work out a scheme for revival of the bank" But it reiterated the need to extend restrictions by another three months " In order to take this forward, it is considered necessary to extend the aforesaid Directions for a further period of three months" RBI said.- economic times
ЁЯНТ Coronavirus impact: HDFC Bank shares tank as Bernstein raises concerns : Shares of private sector lender HDFC Bank tanked nearly 8% intraday on Friday after global brokerage firm Bernstein downgraded its rating on the stock to underperform, citing risks emanating from the Covid-19 outbreak. "HDFC bank, being a quality franchise, has weathered crises well in the past and has often been seen as a safe haven. However, in the current pandemic-driven environment, we believe HDFC Bank carries certain idiosyncratic risks and unique management challenges," Gautam Chhugani, an analyst at Bernstein said in a note dated 19 March. At 0120 pm on the BSE, shares of the private sector lender traded 1.6% lower at ₹880.70 apiece, but off the day's low of ₹826.25. - Live Mint
ЁЯНТ Subhash Chandra appears before ED in Yes Bank case; Naresh Goyal in another probe : Essel Group Chairman Subhash Chandra appeared before the Enforcement Directorate on Saturday in connection with a money laundering probe against Yes Bank promoter Rana Kapoor and his family members, officials said. Also, Jet Airways founder Naresh Goyal was questioned by the ED in connection with a separate money laundering case linked to alleged financial fraud with a Mumbai-based tours and travel company.It was earlier stated by officials that Goyal was questioned in the Yes Bank case but later it was clarified that he joined investigation in another case. Goyal has been summoned by the agency in the Yes Bank case too but he is yet to depose.Officials said Subhash Chandra arrived at the ED office here at Ballard Estate at about 11 am.His statement will be recorded by the investigating officer of the case under the Prevention of Money Laundering Act (PMLA). The Essel Group has an alleged unpaid loan of Rs 8,400 crore towards Yes Bank. - economic times
ЁЯНТ Coronavirus pandemic | NCLAT to hear only 'urgent matters' : As a precautionary measure against the coronavirus outbreak, the National Company Law Appellate Tribunal (NCLAT) has restricted itself to hear only "urgent matters" till April 1 and has extended operation of all interim orders and stay passed in the pending matters till their next hearings. All the matters listed for hearing during the aforesaid period “shall stand adjourned and date of hearing would be noti?ed later," said the latest notice from NCLAT. "Interim order/stay order passed in the pending matters shall continue till the next date of hearing,” it said. Announcing the precautionary measures, NCLAT said: ”Premises of this Appellate Tribunal shall remain locked during the aforesaid period except for the days when the Bench will meet for hearing urgent matters upon mentioning.” “All judges, members and the staff members shall stay indoors/ con?ned to their residences, but shall not leave the Headquarters and shall be available/ accessible at short notice as and when their services are required,” said a notice issued by NCLAT registrar dated March 20. - moneycontrol.com
ЁЯНТ Investors lose more than Rs 13 lakh crore; over 300 stocks in BSE500 fell 10-50% : The Indian market witnessed one of its worst weeks since the 2008 market crash as benchmark indices plunged more than 12 percent each while the bigger cut was seen in the BSE Small-cap index which plunged 14 percent, and the Mid-cap index fell nearly 12 percent for the week ended March 20. Tracking global selloff, investors’ loses more than Rs 13 lakh crore in a week. The average market capitalisation of the BSE-listed companies fell from Rs 129.26 lakh crore registered on March 13, to Rs 116.09 lakh crore as on March 20. More than 90 percent of the stocks in the S&P BSE 500 index gave negative returns. As many as 313 stocks in the BSE500 index fell 10-50 percent. This included names such as Eicher Motors, MRF, Tata Coffee, Granules India, V-Mart, Uco Bank, Godrej Properties, Can Fin Homes Titan Company and Future Lifestyle among others. -Moneycontrol.com
ЁЯНТ LIC eyes sale of 2.5 cr individual policies, Rs 55,000 cr in premium collection for FY'20 : State-run life insurer LIC is hopeful of crossing its fiscal target of selling over 2.5 crore individual policies and a premium collection of more than Rs 55,000 crore before March 31, 2020. This is 17 per cent growth in terms of number of individual policies sold compared to the number of policies sold in FY19. "We have created a new record by selling 2,17,00,000 individual policies and a premium collection of Rs 50,500 crore as on March 21, 2020," the Life Insurance Corporation (LIC) said.The life insurer said it is confident of crossing its target of 2.5 crore individual policies well before March-end. - Moneycontrol.com
ЁЯНТ Rs 2000, Rs 500, Rs 200 or any note can spread Coronavirus! SBI Research suggests an alternative : In order to prevent the spread of novel Coronavirus through cash, SBI Research has suggested the government to examine the possibility of using polymer currency notes, instead of paper currency notes, on the lines of countries like Australia, UK and Canada. Experts say that the virus can spread through currency notes. Hence, it is better to switch to digital mode of transactions. But then, complete avoidance of cash in a country like India is probably not possible. Hence, there is a need for a safer alternative to paper currency notes. In its ‘Ecowrap’ report dated March 17, 2020, the SBI Research said, “Even if due precautions are taken, yet avoidance of cash usage cannot be avoidedand as such it becomes one of the most easy carrier for spreading any virus. Therefore, immediate steps should be taken to check spreading of any virus through currency notes. Countries like UK, Australia and Canada have switched to polymer notes to reduce the risk of spreading infections through currency. Therefore, the possibilities of usage of polymer notes in India should also be examined.” -economic times..
Have a Good day.. "ЁЯМ╗ЁЯСйЁЯСйЁЯСзЁЯСж
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