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☕ 06.03.2020: Today's Banking / Financial News at a Glance
ЁЯНТ 8 state-owned banks announce share swap ratios for mergers : With the March-end deadline for the biggest-ever amalgamation scheme is approaching, eight state-owned banks on Thursday announced swap ratios for the proposed mergers. Punjab National Bank (PNB) in a regulatory filing announced the share exchange ratio in accordance with the scheme of amalgamation, as it is set to merge Oriental Bank of Commerce (OBC) and United Bank of India (UBI) into itself with effect from April 1.PNB's board in its meeting on Thursday has approved for amalgamation of OBC and UBI, Punjab National Bank said in a BSE filing.According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 equity shares of Oriental Bank of Commerce, while 121 equity shares of PNB are to be swapped for every 1,000 equity shares of UBI.A Grievance Redressal Committee headed by Vijay Kumar Vyas, retired judge of Rajasthan High Court, has been set up to address the grievances of shareholders. The committee is intended to address those shareholders who either individually or collectively hold at least 1 per cent of the equity capital of any of PNB, OBC or UBI; or 100 shareholders acting collectively, of any of PNB, OBC or UBI."The board of directors of the bank...have fixed Wednesday, March 25, 2020, as record date for issuing and allotting equity shares of the PNB to the shareholders of OBC and UBI as per the share exchange ratio," PNB said in the filing.Meanwhile, Andhra Bank on Thursday also announced the swap ratio for its merger, it said in a filing. Andhra Bank and Corporation Bank are to be amalgamated into Union Bank of India with effect from April 1, 2020.Andhra Bank said, "Further, the board of directors of the bank at its meeting held on March 5, 2020, has approved the equity share exchange ratio for amalgamation of Andhra Bank into Union Bank of India for 325 equity shares in Union Bank of India for every 1,000 equity shares in Andhra Bank."Union Bank in a separate exchange filing said its board at its meeting on Thursday has also approved the equity share exchange ratio. It includes 325 equity shares of Union Bank of India for every 1,000 shares in Andhra Bank and 330 shares in Union Bank for every 1,000 equity shares in Corporation Bank.Also, for Syndicate Bank's merger into Canara Bank, the share swap is 158 equity shares of Canara Bank for every 1,000 equity shares of Syndicate Bank. The lenders in their respective filings to the exchange said their boards have approved the amalgamation of Syndicate Bank into Canara Bank. The anchor bank Punjab National Bank will become the country's second largest bank, with business size of Rs 17.94 lakh crore, after SBI which has business of over Rs 52 lakh crore. Bank of Baroda will become the third largest bank, followed by Canara Bank, Union Bank of India, Bank of India, and Indian Bank. The other PSBs are Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra, and Punjab and Sind Bank. Stock of PNB on Thursday closed at Rs 44.90 on the BSE, up 1.01 per cent from the previous close, while Union Bank of India's shares jumped 8.25 per cent to Rs 39.35 apiece. Canara Bank rose marginally by 0.40 per cent to close at 139.45 apiece. - economic times
ЁЯНТ N S Vishwanathan decides to step down as RBI deputy guv by March 31 : RBI Deputy Governor N S Vishwanathan has decided to step down by March 31 due to ill health, three months before the end of his extended one-year tenure. While the Reserve Bank has accepted his request to be relieved by March 31, the same has to be accepted by the Cabinet as well, which is likely to happen any day given his health condition, a person in the know of the development said. His one-year extension was to end on July 3. RBI spokesperson Yogesh Dayal refused to confirm or deny the development. - Moneycontrol.com
ЁЯНТ YES Bank: Govt caps deposit withdrawal at Rs 50,000 : The Central Government has directed Yes Bank to limit withdrawals of deposits at Rs 50,000. Any withdrawal over the amount will require the permission of the Reserve Bank of India. In a notification, the government said the bank will not be allowed to pay depositors a sum exceeding Rs.50,000/- lying to his credit, in any savings, current or any other deposit account. The restrictions in the withdrawal of deposits will be subject to certain conditions. The Reserve Bank may, by a general or special order, permit the bank to allow withdrawal of over Rs 50,000 in the following unforeseen circumstances - in connection with the medical treatment of the depositor or any person actually dependent on him, - towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India, - to pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him - in connection with any other unavoidable emergency - Moneycontrol.com
ЁЯНТ SBI Card IPO bids worth 2 lakh crore; issue subscribed 26 times : SBI Cards and Payment Services (SBI) received bids of about Rs 2 lakh crore for its IPO till Thursday afternoon. The issue was subscribed 26.22 times on final day, which at the upper limit of the price band of Rs 755 was worth Rs 1,98,550 crore. The QIB category alone bade for Rs 1,04,586 crore shares compared with the issue size of Rs 1,846 crore. Quota for non-institutional investors or HNIs was subscribed 43.71 times or Rs 60,526 crore. Retail quota was subscribed 2.49 times, employee 4.73 per cent and shareholders 25.08 per cent, data suggested. The bidding process closed for QIBs on Wednesday. Only retail and high-network individuals (HNIs) participated in Thursday’s special window. Geojit Financial Services, Angel Broking, Nirmal Bang Securities and Hem Securities, among others, have ‘subscribe’ ratings on the issue. - economic times
ЁЯНТ JPMorgan cuts YES Bank target price to Re 1 from Rs 55 : JP Morgan on Thursday cut its target price on YES Bank to Re 1 from Rs 55 after media reports suggested State Bank of India (SBI) and state-run Life Insurance Corporation of India (LIC) may pick up 49 per cent stake in the company for Rs 2 per share. “We believe the forced bailout investors will likely want the bank to be acquired at near zero value to account for risks associated with the stress book and likely loss of deposits,” JP Morgan analyst said in a note. The foreign brokerage added that it remains underweight on the lender and believes net worth of the bank is largely impaired. - economic times
ЁЯНТ HC dismisses Chanda Kochhar's plea against termination of employment : The Bombay High Court on Thursday dismissed a petition filed by Chanda Kochhar against her termination as the managing director and chief executive officer of the ICICI Bank. A division bench of Justices N M Jamdar and M S Karnik accepted the bank's contention that Kochhar's petition was not maintainable as the dispute was contractual and concerns a private body.The bank's counsel Darius Khambata had earlier argued that a judicial review cannot be incurred under Article 226 of the Constitution, which empowers high courts to issue directions, orders or writs in such a matter. The bank sought dismissal of Kochhar's petition. - Economic Times
ЁЯНТ SBI’s YONO chalks up 2 crore registered users : SBI charts out aggressive strategy for deposit, advances growth. State Bank of India (SBI) on Thursday said its digital service platform YONO (You Only Need One) now has two crore registered users. The platform, which was launched in November 2017, provides customers an all-in-one solution for their banking, shopping, lifestyle and investment needs, the bank said in a statement. “So far, SBI has opened over 68 lakh SB accounts on YONO with customers having an option to open digital savings account 24x7 with a one-time branch visit for KYC (know-your-customer). Through YONO SBI, the bank is opening 20,000 accounts every day,” the statement said. - Business Line
ЁЯНТ HDFC cuts lending rate by 5 bps for salaried people, effective from March 9 : HDFC cut its lending rate by 5 basis points (bps) for salaried people with effect from March 9. The new rate would now be 8.05 per cent for salaried class borrowers with loans up to Rs 30 lakh. While loans above Rs 30 lakh till Rs 75 lakh have been priced at 8.30 per cent, loans above Rs 75 lakh have been priced at 8.40 per cent. For women borrowers in each category, the effective loan rate would be 5 bps lower - Business Stanard
ЁЯНТ CAMS Financial gets RBI nod to launch account aggregator services : CAMS Financial Information Services, a subsidiary of Computer Age Management Services, has received RBI registration to provide account aggregator services. The RBI has stipulated the framework for the registration of a new class of NBFCs for account aggregator services to aggregate customers’ financial assets information and deliver reporting services.As an account aggregator, CAMS Finserv will collate financial information from multiple Financial Information Providers and securely sent them to the authorised Financial Information User with the consent of the customer.Anuj Kumar, President and CEO, CAMS, said account aggregator is an initiative of the RBI to drive financial inclusion and digitalisation of citizens’ experience in seeking and managing their personal financial information. - Business Line
ЁЯНТ Yes Bank says no communication on a stake purchase : Yes Bank has said it has not received any communication of a potential stake purchase by a consortium led by State Bank of India. “The Bank has not received any such communication from RBI or the government or regulatory authorities or from the SBI and we are unaware of any such decision,” it said in a clarification to the stock exchanges on Thursday. SBI also clarified to the exchanges, “We will abide by the timelines under Regulation 30 of SEBI (LODR) Regulations 2015 in disclosing the developments, if any in the matter to Stock Exchanges.” - Business Line
ЁЯНТ EPFO cuts interest rate to 8.5 per cent for 2019-20 : Over six crore active EPF subscribers will be disappointed, as the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has decided to recommend an 8.5 per cent rate of interest for FY20. This is 15 basis points (100 basis points is 1 percentage point) lower than the rate of interest for FY19. - Business Line
ЁЯНТ Coronavirus: Irdai asks insurers to design products covering treatment cost : The insurance regulator on Wednesday issued guidelines to health insurers on how to handle coronavirus claims, and asked firms to design products covering the cost of treatment. “In order to provide need-based health insurance coverage, insurers are introducing products for various specific diseases including vector-borne diseases. For the purpose of meeting health insurance requirements of various sections, insurers are advised to design products covering the costs of treatment for coronavirus,” said the Insurance Regulatory and Development Authority of India (Irdai). - Business Standard
ЁЯНТ HSBC files winding up plea in Singapore court against IL&FS subsidiary : Global banking giant HSBC has filed a winding up petition in a Singapore court against an overseas subsidiary of IL&FS Transport Services Ltd (ITNL) for recovery of dues totalling more than Rs 1,000 crore. In the first such case against a group entity of crisis-hit Infrastructure Leasing and Financial Services Ltd (IL&FS) Group, the Hongkong and Shanghai Banking Corporation (HSBC) is seeking to recover its funds parked in bonds worth RMB 1,000 million (over Rs 1,050 crore) maturing in 2021, which were issued by ITNL Offshore Pte Ltd. As per a notice published in Singapore's government gazette on March 3, HSBC filed its application for winding up of ITNL Offshore Pte Ltd in Singapore High Court on February 27. - Business Standard
ЁЯНТ Taxpayers will be 'big casualty' if govt bails out Yes Bank: Macquarie : Taxpayers are the biggest casualty in the government-approved bailout plan of YES Bank by a State Bank of India (SBI)-led consortium, says the latest report by global research and brokerage firm Macquarie. Any bail out of a private sector entity by public sector undertakings (PSUs) / Government / taxpayers indeed creates a moral hazard, the brokerage firm said. “The fact that government is considering such a bail out proposal clearly shows the risk inherent in investing in PSU banks/companies who continue to be subjected to the vagaries and compulsions of the government. The bigger casualty is taxpayers as their money is being used to infuse capital in PSU banks time and again. In other words, it is the taxpayers who are bailing out YES Bank indirectly in our view,” wrote analysts at Macquarie in a co-authored report led by Suresh Ganapathy, their associate director. - Business Stadard
ЁЯНТ Lenders approve Rs 23,000 cr resolution plan for RCom; Chinese banks to get major share : With lenders approving a Rs 23,000 crore resolution plan for Reliance Communication, as much as Rs 5,500 crore will flow to Chinese banks, clearing about 55 per cent of their principal dues, including of those lenders to whom firm's promoter Anil Ambani had allegedly given a personal guarantee. In a regulatory filing, RCom said "that in the e-voting conducted pursuant to the meeting of the committee of creditors held on March 2, 2020, which e-voting concluded on March 4, 2020 at 8 pm (IST), the committee of creditors of RCOM has, by way of voting share of 100 per cent of the committee of creditors, approved the resolution plan submitted by UV Asset Reconstruction Company Limited. - Moneycontrol.com
ЁЯНТ YES Bank rescue plan: Govt may nudge LIC to play white knight along with SBI : The government has tapped Life Insurance Corporation of India (LIC) to join a consortium led by State Bank of India (SBI) to buy stake and inject funds in beleaguered lender YES Bank, multiple people familiar with the matter told Moneycontrol. If LIC, India's largest insurer, joins the consortium, it would be the second such instance in the recent past that it would have offered a lifeline to an entity starved of capital. LIC, which is due to launch an initial public offering in FY21, owns 51 percent of IDBI Bank after a purchase from the government. On the SBI-LIC deal, YES Bank said that it has not received any such communication from the RBI or government. SBI said it will disclose any development to the stock exchanges. - Moneycontrol.com
ЁЯНТ HSBC sends over 100 London staff home over coronavirus case : HSBC has sent more than 100 of its London staff home after a worker tested positive for the coronavirus, the first known case at a major company in Europe's main financial hub. Italy's UniCredit also told some staff to go home after two new infections were reported among its employees - one in Germany and one in Italy. The possibility of the coronavirus spreading across the finance industry is worrying regulators, who fear the absence of important staff could lead to liquidity problems in markets if firms cannot operate their trading operations normally. - Moneycontrol.com
ЁЯНТ SBI falls 5%, Yes Bank gains 29% on deal buzz : Shares of SBI fell as much as 5.3 percent while those of Yes Bank rose more than 17 percent intraday after reports made rounds that the former may buy a stake in the beleaguered bank. According to Bloomberg, SBI has been asked by the government to form a consortium for stake purchase of the Yes Bank. Commenting on the development, former IBA CEO VG Kannan told CNBC-TV18 that the stake purchase by SBI should not be seen as an acquisition but rather an investment. - Moneycontrol.com
ЁЯНТ Gold rises for fourth day to Rs 43,373 per 10 gram, silver slips Rs 35 per kg : Gold prices extended gain for the fourth consecutive day to touch Rs 43,373 per 10 gram in the Mumbai bullion market on safe-haven appeal. Investors seek refuge in the yellow metal on worries of coronavirus spreading across the globe and its impact on the economy. Silver prices slipped Rs 35 to Rs 46,170 per kg from its closing on March 4.
ЁЯНТ Rupee logs 1st gain in 5 days, ends 6 paise higher : The rupee snapped its four-session losing run on Thursday to close 6 paise higher at 73.33 against the US dollar amid hopes that efforts by countries and global agencies would offset financial damage from the novel coronavirus outbreak. Besides, easing crude oil prices and weakness in the dollar vis-a-vis other key global currencies also helped the rupee build resistance.
Have a Good day.. "ЁЯМ╗
☕ 06.03.2020: Today's Banking / Financial News at a Glance
ЁЯНТ 8 state-owned banks announce share swap ratios for mergers : With the March-end deadline for the biggest-ever amalgamation scheme is approaching, eight state-owned banks on Thursday announced swap ratios for the proposed mergers. Punjab National Bank (PNB) in a regulatory filing announced the share exchange ratio in accordance with the scheme of amalgamation, as it is set to merge Oriental Bank of Commerce (OBC) and United Bank of India (UBI) into itself with effect from April 1.PNB's board in its meeting on Thursday has approved for amalgamation of OBC and UBI, Punjab National Bank said in a BSE filing.According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 equity shares of Oriental Bank of Commerce, while 121 equity shares of PNB are to be swapped for every 1,000 equity shares of UBI.A Grievance Redressal Committee headed by Vijay Kumar Vyas, retired judge of Rajasthan High Court, has been set up to address the grievances of shareholders. The committee is intended to address those shareholders who either individually or collectively hold at least 1 per cent of the equity capital of any of PNB, OBC or UBI; or 100 shareholders acting collectively, of any of PNB, OBC or UBI."The board of directors of the bank...have fixed Wednesday, March 25, 2020, as record date for issuing and allotting equity shares of the PNB to the shareholders of OBC and UBI as per the share exchange ratio," PNB said in the filing.Meanwhile, Andhra Bank on Thursday also announced the swap ratio for its merger, it said in a filing. Andhra Bank and Corporation Bank are to be amalgamated into Union Bank of India with effect from April 1, 2020.Andhra Bank said, "Further, the board of directors of the bank at its meeting held on March 5, 2020, has approved the equity share exchange ratio for amalgamation of Andhra Bank into Union Bank of India for 325 equity shares in Union Bank of India for every 1,000 equity shares in Andhra Bank."Union Bank in a separate exchange filing said its board at its meeting on Thursday has also approved the equity share exchange ratio. It includes 325 equity shares of Union Bank of India for every 1,000 shares in Andhra Bank and 330 shares in Union Bank for every 1,000 equity shares in Corporation Bank.Also, for Syndicate Bank's merger into Canara Bank, the share swap is 158 equity shares of Canara Bank for every 1,000 equity shares of Syndicate Bank. The lenders in their respective filings to the exchange said their boards have approved the amalgamation of Syndicate Bank into Canara Bank. The anchor bank Punjab National Bank will become the country's second largest bank, with business size of Rs 17.94 lakh crore, after SBI which has business of over Rs 52 lakh crore. Bank of Baroda will become the third largest bank, followed by Canara Bank, Union Bank of India, Bank of India, and Indian Bank. The other PSBs are Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra, and Punjab and Sind Bank. Stock of PNB on Thursday closed at Rs 44.90 on the BSE, up 1.01 per cent from the previous close, while Union Bank of India's shares jumped 8.25 per cent to Rs 39.35 apiece. Canara Bank rose marginally by 0.40 per cent to close at 139.45 apiece. - economic times
ЁЯНТ N S Vishwanathan decides to step down as RBI deputy guv by March 31 : RBI Deputy Governor N S Vishwanathan has decided to step down by March 31 due to ill health, three months before the end of his extended one-year tenure. While the Reserve Bank has accepted his request to be relieved by March 31, the same has to be accepted by the Cabinet as well, which is likely to happen any day given his health condition, a person in the know of the development said. His one-year extension was to end on July 3. RBI spokesperson Yogesh Dayal refused to confirm or deny the development. - Moneycontrol.com
ЁЯНТ YES Bank: Govt caps deposit withdrawal at Rs 50,000 : The Central Government has directed Yes Bank to limit withdrawals of deposits at Rs 50,000. Any withdrawal over the amount will require the permission of the Reserve Bank of India. In a notification, the government said the bank will not be allowed to pay depositors a sum exceeding Rs.50,000/- lying to his credit, in any savings, current or any other deposit account. The restrictions in the withdrawal of deposits will be subject to certain conditions. The Reserve Bank may, by a general or special order, permit the bank to allow withdrawal of over Rs 50,000 in the following unforeseen circumstances - in connection with the medical treatment of the depositor or any person actually dependent on him, - towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India, - to pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him - in connection with any other unavoidable emergency - Moneycontrol.com
ЁЯНТ SBI Card IPO bids worth 2 lakh crore; issue subscribed 26 times : SBI Cards and Payment Services (SBI) received bids of about Rs 2 lakh crore for its IPO till Thursday afternoon. The issue was subscribed 26.22 times on final day, which at the upper limit of the price band of Rs 755 was worth Rs 1,98,550 crore. The QIB category alone bade for Rs 1,04,586 crore shares compared with the issue size of Rs 1,846 crore. Quota for non-institutional investors or HNIs was subscribed 43.71 times or Rs 60,526 crore. Retail quota was subscribed 2.49 times, employee 4.73 per cent and shareholders 25.08 per cent, data suggested. The bidding process closed for QIBs on Wednesday. Only retail and high-network individuals (HNIs) participated in Thursday’s special window. Geojit Financial Services, Angel Broking, Nirmal Bang Securities and Hem Securities, among others, have ‘subscribe’ ratings on the issue. - economic times
ЁЯНТ JPMorgan cuts YES Bank target price to Re 1 from Rs 55 : JP Morgan on Thursday cut its target price on YES Bank to Re 1 from Rs 55 after media reports suggested State Bank of India (SBI) and state-run Life Insurance Corporation of India (LIC) may pick up 49 per cent stake in the company for Rs 2 per share. “We believe the forced bailout investors will likely want the bank to be acquired at near zero value to account for risks associated with the stress book and likely loss of deposits,” JP Morgan analyst said in a note. The foreign brokerage added that it remains underweight on the lender and believes net worth of the bank is largely impaired. - economic times
ЁЯНТ HC dismisses Chanda Kochhar's plea against termination of employment : The Bombay High Court on Thursday dismissed a petition filed by Chanda Kochhar against her termination as the managing director and chief executive officer of the ICICI Bank. A division bench of Justices N M Jamdar and M S Karnik accepted the bank's contention that Kochhar's petition was not maintainable as the dispute was contractual and concerns a private body.The bank's counsel Darius Khambata had earlier argued that a judicial review cannot be incurred under Article 226 of the Constitution, which empowers high courts to issue directions, orders or writs in such a matter. The bank sought dismissal of Kochhar's petition. - Economic Times
ЁЯНТ SBI’s YONO chalks up 2 crore registered users : SBI charts out aggressive strategy for deposit, advances growth. State Bank of India (SBI) on Thursday said its digital service platform YONO (You Only Need One) now has two crore registered users. The platform, which was launched in November 2017, provides customers an all-in-one solution for their banking, shopping, lifestyle and investment needs, the bank said in a statement. “So far, SBI has opened over 68 lakh SB accounts on YONO with customers having an option to open digital savings account 24x7 with a one-time branch visit for KYC (know-your-customer). Through YONO SBI, the bank is opening 20,000 accounts every day,” the statement said. - Business Line
ЁЯНТ HDFC cuts lending rate by 5 bps for salaried people, effective from March 9 : HDFC cut its lending rate by 5 basis points (bps) for salaried people with effect from March 9. The new rate would now be 8.05 per cent for salaried class borrowers with loans up to Rs 30 lakh. While loans above Rs 30 lakh till Rs 75 lakh have been priced at 8.30 per cent, loans above Rs 75 lakh have been priced at 8.40 per cent. For women borrowers in each category, the effective loan rate would be 5 bps lower - Business Stanard
ЁЯНТ CAMS Financial gets RBI nod to launch account aggregator services : CAMS Financial Information Services, a subsidiary of Computer Age Management Services, has received RBI registration to provide account aggregator services. The RBI has stipulated the framework for the registration of a new class of NBFCs for account aggregator services to aggregate customers’ financial assets information and deliver reporting services.As an account aggregator, CAMS Finserv will collate financial information from multiple Financial Information Providers and securely sent them to the authorised Financial Information User with the consent of the customer.Anuj Kumar, President and CEO, CAMS, said account aggregator is an initiative of the RBI to drive financial inclusion and digitalisation of citizens’ experience in seeking and managing their personal financial information. - Business Line
ЁЯНТ Yes Bank says no communication on a stake purchase : Yes Bank has said it has not received any communication of a potential stake purchase by a consortium led by State Bank of India. “The Bank has not received any such communication from RBI or the government or regulatory authorities or from the SBI and we are unaware of any such decision,” it said in a clarification to the stock exchanges on Thursday. SBI also clarified to the exchanges, “We will abide by the timelines under Regulation 30 of SEBI (LODR) Regulations 2015 in disclosing the developments, if any in the matter to Stock Exchanges.” - Business Line
ЁЯНТ EPFO cuts interest rate to 8.5 per cent for 2019-20 : Over six crore active EPF subscribers will be disappointed, as the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has decided to recommend an 8.5 per cent rate of interest for FY20. This is 15 basis points (100 basis points is 1 percentage point) lower than the rate of interest for FY19. - Business Line
ЁЯНТ Coronavirus: Irdai asks insurers to design products covering treatment cost : The insurance regulator on Wednesday issued guidelines to health insurers on how to handle coronavirus claims, and asked firms to design products covering the cost of treatment. “In order to provide need-based health insurance coverage, insurers are introducing products for various specific diseases including vector-borne diseases. For the purpose of meeting health insurance requirements of various sections, insurers are advised to design products covering the costs of treatment for coronavirus,” said the Insurance Regulatory and Development Authority of India (Irdai). - Business Standard
ЁЯНТ HSBC files winding up plea in Singapore court against IL&FS subsidiary : Global banking giant HSBC has filed a winding up petition in a Singapore court against an overseas subsidiary of IL&FS Transport Services Ltd (ITNL) for recovery of dues totalling more than Rs 1,000 crore. In the first such case against a group entity of crisis-hit Infrastructure Leasing and Financial Services Ltd (IL&FS) Group, the Hongkong and Shanghai Banking Corporation (HSBC) is seeking to recover its funds parked in bonds worth RMB 1,000 million (over Rs 1,050 crore) maturing in 2021, which were issued by ITNL Offshore Pte Ltd. As per a notice published in Singapore's government gazette on March 3, HSBC filed its application for winding up of ITNL Offshore Pte Ltd in Singapore High Court on February 27. - Business Standard
ЁЯНТ Taxpayers will be 'big casualty' if govt bails out Yes Bank: Macquarie : Taxpayers are the biggest casualty in the government-approved bailout plan of YES Bank by a State Bank of India (SBI)-led consortium, says the latest report by global research and brokerage firm Macquarie. Any bail out of a private sector entity by public sector undertakings (PSUs) / Government / taxpayers indeed creates a moral hazard, the brokerage firm said. “The fact that government is considering such a bail out proposal clearly shows the risk inherent in investing in PSU banks/companies who continue to be subjected to the vagaries and compulsions of the government. The bigger casualty is taxpayers as their money is being used to infuse capital in PSU banks time and again. In other words, it is the taxpayers who are bailing out YES Bank indirectly in our view,” wrote analysts at Macquarie in a co-authored report led by Suresh Ganapathy, their associate director. - Business Stadard
ЁЯНТ Lenders approve Rs 23,000 cr resolution plan for RCom; Chinese banks to get major share : With lenders approving a Rs 23,000 crore resolution plan for Reliance Communication, as much as Rs 5,500 crore will flow to Chinese banks, clearing about 55 per cent of their principal dues, including of those lenders to whom firm's promoter Anil Ambani had allegedly given a personal guarantee. In a regulatory filing, RCom said "that in the e-voting conducted pursuant to the meeting of the committee of creditors held on March 2, 2020, which e-voting concluded on March 4, 2020 at 8 pm (IST), the committee of creditors of RCOM has, by way of voting share of 100 per cent of the committee of creditors, approved the resolution plan submitted by UV Asset Reconstruction Company Limited. - Moneycontrol.com
ЁЯНТ YES Bank rescue plan: Govt may nudge LIC to play white knight along with SBI : The government has tapped Life Insurance Corporation of India (LIC) to join a consortium led by State Bank of India (SBI) to buy stake and inject funds in beleaguered lender YES Bank, multiple people familiar with the matter told Moneycontrol. If LIC, India's largest insurer, joins the consortium, it would be the second such instance in the recent past that it would have offered a lifeline to an entity starved of capital. LIC, which is due to launch an initial public offering in FY21, owns 51 percent of IDBI Bank after a purchase from the government. On the SBI-LIC deal, YES Bank said that it has not received any such communication from the RBI or government. SBI said it will disclose any development to the stock exchanges. - Moneycontrol.com
ЁЯНТ HSBC sends over 100 London staff home over coronavirus case : HSBC has sent more than 100 of its London staff home after a worker tested positive for the coronavirus, the first known case at a major company in Europe's main financial hub. Italy's UniCredit also told some staff to go home after two new infections were reported among its employees - one in Germany and one in Italy. The possibility of the coronavirus spreading across the finance industry is worrying regulators, who fear the absence of important staff could lead to liquidity problems in markets if firms cannot operate their trading operations normally. - Moneycontrol.com
ЁЯНТ SBI falls 5%, Yes Bank gains 29% on deal buzz : Shares of SBI fell as much as 5.3 percent while those of Yes Bank rose more than 17 percent intraday after reports made rounds that the former may buy a stake in the beleaguered bank. According to Bloomberg, SBI has been asked by the government to form a consortium for stake purchase of the Yes Bank. Commenting on the development, former IBA CEO VG Kannan told CNBC-TV18 that the stake purchase by SBI should not be seen as an acquisition but rather an investment. - Moneycontrol.com
ЁЯНТ Gold rises for fourth day to Rs 43,373 per 10 gram, silver slips Rs 35 per kg : Gold prices extended gain for the fourth consecutive day to touch Rs 43,373 per 10 gram in the Mumbai bullion market on safe-haven appeal. Investors seek refuge in the yellow metal on worries of coronavirus spreading across the globe and its impact on the economy. Silver prices slipped Rs 35 to Rs 46,170 per kg from its closing on March 4.
ЁЯНТ Rupee logs 1st gain in 5 days, ends 6 paise higher : The rupee snapped its four-session losing run on Thursday to close 6 paise higher at 73.33 against the US dollar amid hopes that efforts by countries and global agencies would offset financial damage from the novel coronavirus outbreak. Besides, easing crude oil prices and weakness in the dollar vis-a-vis other key global currencies also helped the rupee build resistance.
Have a Good day.. "ЁЯМ╗
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