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☕ 17.03.2020: Today's Banking / Financial News at a Glance
ЁЯНТ PNB, SBI among worst hit PSU-banks by bad loans to top 50 wilful defaulters : Punjab National Bank, State Bank of India are the worst-hit lenders from bad loans to top 50 wilful defaulters, Minister of State for Finance, Anurag Thakur informed the Parliament today. The list that contains 27 names, lifts the curtain and unveils the banks worst hit by the never-ending bad loan saga for the Indian Banking industry. The list was topped by Punjab National Bank (PNB) with an exposure of Rs 13,473 crore; followed by India’s largest public-sector lender State Bank of India (SBI) with an exposure of Rs 13,432 crore. Among the 27 names, only 9 are of private sector banks and while 18 are of public sector banks. In the list titled, ‘bank-wise details of aggregate funded amount outstanding & amount technically/Prudentially written off, pertaining to top fifty wilful defaulters’ five banks with the largest exposure to the top 50 wilful defaulters include PNB, SBI, Central Bank, Bank of Baroda and Canara Bank. Sum of funded amount outstanding & amount technically / prudentially written off by Central Bank stands at RS 6,504 crore; followed by Bank of Baroda with bad loans worth Rs 5,188 crore from the said defaulters and Canara Bank at Rs 2,939 crore exposure. Among the 10 banks having the largest exposure, only one is a private sector bank while the other 9 belong to the public sector. - Financial Express
ЁЯНТ Finmin officials support FM Nirmala Sitharaman over address to SBI staff : Officials at the finance ministry have come out in support of finance minister Nirmala Sitharaman, who has been criticised on the social media and by the All India Bank Officers’ Confederation for being ‘insensitive’ in the way she was heard addressing SBI officials in Guwahati in a leaked audio clip. She was heard calling the bank’s attitude ‘heartless’ for not resolving the purported issues of Assam’s tea garden workers. Officials on the condition of anonymity said whatever the finance minister said at the function was justified as she expressed legitimate concerns over the functioning of state- and local-level SBI officers. “She was lamenting at insensitivity of local bank officials and pulled up the officers of the state level banker’s committee. In fact, their insensitive action had deprived almost 8 lakh tea garden workers from accessing their Jan-Dhan bank account dues for more than a year,” another official said. - Financial Express
ЁЯНТ RBI announces more liquidity measures : The RBI on Monday hinted at a rate cut at the next Monetary Policy Committee (MPC) meet on April 3 and announced more liquidity enhancing measures. The market was expecting a rate cut as the presser was called only around noon after as many as 43 other central banks, including the US Fed, the European Central Bank and Bank of England, did so. However, the RBI announced another round of $2 billion dollar-rupee swap on March 23 and up to ₹1 lakh crore of long-term repo operations as and when the market needs it. - Business Line
ЁЯНТ HDFC to hold 7.97% stake in Yes Bank for ₹1,000 crore infusion : Mortgage lender HDFC will pick up 7.97 per cent stake in Yes Bank for a ₹1,000 crore capital infusion in the cash-strapped lender. On March 14, Yes Bank allotted 100 crore shares of face value of ₹2 each to the Corporation aggregating to 7.97 per cent of the post issue equity share capital of Yes bank, HDFC said in a regulatory filing on Monday. The allotment of shares comes “after giving effect to the allotment of shares to State Bank of India, the Corporation, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank and IDFC First Bank ,” it said. On Friday, HDFC said it is investing in 100 crore equity shares of ₹2 each in Yes Bank for a consideration of ₹10 per share (including ₹8 premium) for an aggregate consideration of ₹1,000 crore. As per the scheme of reconstruction of Yes Bank, 75 per cent of the total investment by the Corporation would be locked in for three years, HDFC had said. - Business Line
ЁЯНТ Yes Bank to resume full banking services from March 18 : Troubled private lender YES Bank will be resuming full banking services from March 18th, from 6pm. In a tweet, the bank said its 1132 branches across India will also be open for its customers. "We will resume full banking services from Wed, Mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services. You will also be able to access all our digital services & platforms," the tweet said. We will resume full banking services from Wed, Mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services. You will also be able to access all our digital services & platforms. RBI's moratorium on Yes Bank will be lifted by March 18 and the new board led by CEO and MD Prashant Kumar will be put in place by the end of this month, the government had said last week. - economic times
ЁЯНТ Tamilnad Mercantile Bank to seek shareholders' approval for IPO again : Ninety-nine-year old Tamilnad Mercantile Bank (TMB) is to again seek shareholders’ approval to become a public listed entity. It had done so in 2016, too, at its 93rd annual general meeting (AGM). However, the shareholders, largely from the Nadar community, rejected the proposal for an Initial Public Offer (IPO) of equity by a majority. The bank has since not held any AGM and is now scheduled, on April 9, to hold its 94th to 97th AGMS all together, for years 2015-16 to 2018-19. This is a sequel to last month’s high court order, which allowed the conduct of all the pending AGMs, subject to specified conditions. TMB has 20,600 shareholders. A majority reportedly voted against an IPO last time, so that the door is not opened to “outsiders” (non-Nadars). Their argument is TMB was meant for Nadars and should be owned by Nadars. Its earlier name was Nadar Bank. - Business Standard
ЁЯНТ RBL Bank fails to assuage investors' concerns; shares plunge 24%, hit all-time low : Shares of RBL Bank plunged over 24 percent in intraday trade to hit their fresh all-time low of Rs 156.45 on BSE and looked on course to extend their losing run into the third consecutive session on March 16. The stock cracked due to fears that it could be the next lender to face a crisis after Yes Bank. However, the bank, in a regulatory filing on March 11 said, it is financially strong, well-capitalised, profitable and a growing entity with strong governance set up. "We wish to re-emphasise that RBL Bank is a fundamentally strong institution. Rumors around financial health and stability of the institution especially in social media seem to be misplaced, motivated and not based on facts," the bank said in a regulatory filing. - Moneycontrol.com
ЁЯНТ Coronavirus sell-off spoils SBI Card debut; share closes 10% lower : Bears tightened their grip on the market on March 16 aided by coronavirus fears. SBI Cards and Payment Services, which debuted on the bourses today, also bore the brunt. The scrip corrected 9.51 percent from its listing price of Rs 755 to settle at Rs 683.2 apiece on the BSE.It touched an intraday low of Rs 658 which was also its opening price on the exchange. On the National Stock Exchange, the stock closed at Rs 681.40, down Rs 73.60, or 9.75 percent after hitting a day's low of Rs 656. It failed to reach its issue price on both exchanges during the session. SBI Card traded with volumes of 6,08,92,478 equity shares on the NSE and 41.67 lakh shares on the BSE.The BSE Sensex fell more than 2,700 points, taking the total loss of over 10,800 points from record high seen in January and investors' wealth was eroded by Rs 7.5 lakh crore today. SBI Card, the subsidiary of country's largest lender State Bank of India, mopped up Rs 10,340 crore through its public issue during March 2-5 after seeing a 26.54 times subscription. - Moneycontrol.com
ЁЯНТ Yes Bank co-founder Kapoor's ED remand extended till March 20 : A special court here on Monday extended till March 20, the Enforcement Directorate (ED) custody of Yes Bank co-founder Rana Kapoor, arrested on money laundering charges. The former MD and CEO of the private lender was arrested by the ED here on March 8 under provisions of the PMLA (Prevention of Money Laundering Act) as he was allegedly not cooperating in the probe related to the crisis at Yes Bank which has been placed under moratorium by the RBI.The 62-year-old banker was initially remanded in the ED custody till March 11 which was later extended up to March 16.As his remand ended on Monday, Kapoor was produced before special PMLA court judge P P Rajvaidya, who extended his ED custody till March 20 on a plea by the central investigating agency.Meanwhile, Kapoor told the court he has been suffering for long from asthma and also depression."I just want to bring to your (court) notice that my family is providing treatment, but don't known when it will erupt," the veteran banker added. - economic times
ЁЯНТ Yes Bank: ED summons Anil Ambani on March 19 : Reliance Group Chairman Anil Ambani has been summoned by the ED later this week in connection with its money laundering probe against Yes Bank promoter Rana Kapoor and others, officials said on Monday. They said Ambani was first asked to depose at the Enforcement Directorate office in the Ballard Estate area of Mumbai on Monday as his group companies are among the big entities whose loans allegedly went bad after borrowing from the crisis-hit bank.The officials said Ambani, 60, sought exemption from appearance on some personal grounds.He has now been asked to appear on March 19, they said. - economic times
ЁЯНТ No decision to discontinue printing of Rs 2,000 banknotes: MoS Finance Anurag Thakur : The government on Monday said no decision has been taken to discontinue printing of Rs 2,000 banknotes, and state-owned SBI and Indian Bank are reconfiguring ATMs for Rs 500 and Rs 200 notes. "No indent was placed with the presses for printing of Rs 2,000 denomination notes for 2019-20. However, there is no decision to discontinue the printing of Rs 2,000 banknotes," Minister of State for Finance Anurag Singh Thakur said in a written reply in Lok Sabha.The minister was replying to a question whether the government has stopped printing of new Rs 2,000 currency notes and if the public sector banks have issued any circular to stop circulation of Rs 2,000 notes through ATMs. "In view of the higher circulation of currency notes of Rs 500 and Rs 200 denominations and inconvenience faced by the customers in exchanging Rs 2,000 currency notes, two of the public sector banks namely State Bank of India and Indian Bank have been issued instructions to the field functionaries to reconfigure the ATMs for currency notes of Rs 500 and Rs 200 denominations," Thakur said. - economic times
ЁЯНТ Banks are adopting account aggregator framework on data : Axis Bank, Bajaj Finserv, ICICI Bank, IDFC FIRST Bank, HDFC Bank, Indusind Bank, Kotak Mahindra Bank and State Bank of India are in various stages of adopting the account aggregator (AA) framework, according to an industry body, ahead of a public rollout of the new technology product in May. Account aggregators are responsible for transferring, but not storing, client data. An AA ecosystem, as envisaged by the Reserve Bank of India (RBI), would be a platform for financial services companies to reach out to the consumer to seek consent before using their personal data to optimise their product offerings.“All the work is going in that direction. We are coordinating between the ecosystems. The scale-up will see a hockey stick effect. These banks and AA companies are part of the first wave. Many are waiting to join the second wave,” said BG Mahesh, a cofounder of Sahamati, a non-profit collective of account aggregators.So far, Cams Finserv, FinSec AA Solutions and Cookiejar Technologies have received operating licences from the Reserve Bank of India. Kotak Mahindra Group said it was launching a pilot among 50,000 employees to test use cases for the AA framework in banking, broking, wealth management, and insurance. - economic times
ЁЯНТ Covid-19 threat: Devise strategy and monitoring mechanism: RBI to banks, NBFCs : The Reserve Bank of India (RBI) has issued an advisory asking banks and non-banking finance companies (NBFCs) to devise a strategy and monitoring mechanism concerning the spread of novel coronavirus disease (Covid-19) within the organisation, take stock of critical processes and revisit their business continuity plan in the emerging situations/scenarios, and encourage customers to use digital banking facilities as far as possible. It also wants the supervised entities to assess the impact on their balance sheet, asset quality and liquidityarising out of potential scenarios such as further spread of Covid-19 in India and its effect on the economy, contagion from wider disruption in the global economy, and the global financial system.Based on these studies, they should take immediate contingency measures to manage the risks and inform the RBI. - Business Line
ЁЯНТ US Federal Reserve cuts key interest rate to 0-0.25 per cent amid coronavirus crisis : In a drastic measure to stem any major disruption to the US economy as a result of the coronavirus outbreak, the Federal Reserve has cut its benchmark interest rate to almost zero and said it would buy USD700 billion in bonds. The Federal Reserve on Sunday announced slashing the key rate and buying USD700 billion in Treasury and mortgage-backed securities to help the economy withstand the viral outbreak. “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” the Fed said in a statement. - Business Line
ЁЯНТ Cryptocurrencies see robust interest, but many banks yet to start processing transactions : Less than a fortnight after the Supreme Court lifted the ban on trading in cryptocurrencies, players in the sector are seeing a sharp rise in the number of users. These companies are gearing up with expansion plans although many banks are yet to allow transactions. “After the verdict, we allowed rupee deposits within 24 hours. More than 1,000 customers register on our platform every day. We are seeing transactions growing,” said Sathvik Vishwanath, CEO and co-founder of cryptoasssets and blockchain company Unocoin. Speaking to BusinessLine, Vishwanath said the company is focussing on growing its customer base and transaction volumes. “We are also coming up with a lending feature where people can use their bitcoin as collateral and get money to their bank accounts. This will allow long-term investors to get some liquidity,” he said. - Business Line
ЁЯНТ Coronavirus pandemic: Most airlines may go bankrupt by May-end, says CAPA : The continuing spread of coronavirus may lead to the bankruptcy of most airlines as early as May-end, said Centre for Asia Pacific Aviation, a leading industry advisory. It added that a catastrophe could be avoided only if governments came together and coordinated to limit further damage. "Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full," CAPA said in a statement on March 16. - Monecyontrol.com
ЁЯНТ Rupee plunges 50 paise to 74.25 against US dollar amid coronavirus uncertainty : The Indian rupee continued its downward spiral and plunged 50 paise to 74.25 (provisional) against the US dollar on Monday as concern over the economic fallout from the coronavirus pandemic outweighed the US Fed's emergency interest rate cut and the RBI's liquidity enhancing measures. Forex traders said the fall in the domestic unit was in line with other Asian peers amid mounting fears of a coronavirus-led economic slowdown.
ЁЯНТ Gold falls below Rs 40,000 mark; silver tumbles Rs 6,445 per kg : Gold prices extended fall for the fifth consecutive day to Rs 39,995 per 10 gram in the Mumbai bullion market on profit booking as investors prefer to sit on cash. The yellow metal also came under pressure owing to the unwinding of long positions after a hike in margin calls forced traders to reduce their positions and cover losses in other asset classes. Silver prices declined Rs 6,445 to Rs 36,640 per kg from its closing
Have a Good day.. " ЁЯМ╗
☕ 17.03.2020: Today's Banking / Financial News at a Glance
ЁЯНТ PNB, SBI among worst hit PSU-banks by bad loans to top 50 wilful defaulters : Punjab National Bank, State Bank of India are the worst-hit lenders from bad loans to top 50 wilful defaulters, Minister of State for Finance, Anurag Thakur informed the Parliament today. The list that contains 27 names, lifts the curtain and unveils the banks worst hit by the never-ending bad loan saga for the Indian Banking industry. The list was topped by Punjab National Bank (PNB) with an exposure of Rs 13,473 crore; followed by India’s largest public-sector lender State Bank of India (SBI) with an exposure of Rs 13,432 crore. Among the 27 names, only 9 are of private sector banks and while 18 are of public sector banks. In the list titled, ‘bank-wise details of aggregate funded amount outstanding & amount technically/Prudentially written off, pertaining to top fifty wilful defaulters’ five banks with the largest exposure to the top 50 wilful defaulters include PNB, SBI, Central Bank, Bank of Baroda and Canara Bank. Sum of funded amount outstanding & amount technically / prudentially written off by Central Bank stands at RS 6,504 crore; followed by Bank of Baroda with bad loans worth Rs 5,188 crore from the said defaulters and Canara Bank at Rs 2,939 crore exposure. Among the 10 banks having the largest exposure, only one is a private sector bank while the other 9 belong to the public sector. - Financial Express
ЁЯНТ Finmin officials support FM Nirmala Sitharaman over address to SBI staff : Officials at the finance ministry have come out in support of finance minister Nirmala Sitharaman, who has been criticised on the social media and by the All India Bank Officers’ Confederation for being ‘insensitive’ in the way she was heard addressing SBI officials in Guwahati in a leaked audio clip. She was heard calling the bank’s attitude ‘heartless’ for not resolving the purported issues of Assam’s tea garden workers. Officials on the condition of anonymity said whatever the finance minister said at the function was justified as she expressed legitimate concerns over the functioning of state- and local-level SBI officers. “She was lamenting at insensitivity of local bank officials and pulled up the officers of the state level banker’s committee. In fact, their insensitive action had deprived almost 8 lakh tea garden workers from accessing their Jan-Dhan bank account dues for more than a year,” another official said. - Financial Express
ЁЯНТ RBI announces more liquidity measures : The RBI on Monday hinted at a rate cut at the next Monetary Policy Committee (MPC) meet on April 3 and announced more liquidity enhancing measures. The market was expecting a rate cut as the presser was called only around noon after as many as 43 other central banks, including the US Fed, the European Central Bank and Bank of England, did so. However, the RBI announced another round of $2 billion dollar-rupee swap on March 23 and up to ₹1 lakh crore of long-term repo operations as and when the market needs it. - Business Line
ЁЯНТ HDFC to hold 7.97% stake in Yes Bank for ₹1,000 crore infusion : Mortgage lender HDFC will pick up 7.97 per cent stake in Yes Bank for a ₹1,000 crore capital infusion in the cash-strapped lender. On March 14, Yes Bank allotted 100 crore shares of face value of ₹2 each to the Corporation aggregating to 7.97 per cent of the post issue equity share capital of Yes bank, HDFC said in a regulatory filing on Monday. The allotment of shares comes “after giving effect to the allotment of shares to State Bank of India, the Corporation, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank and IDFC First Bank ,” it said. On Friday, HDFC said it is investing in 100 crore equity shares of ₹2 each in Yes Bank for a consideration of ₹10 per share (including ₹8 premium) for an aggregate consideration of ₹1,000 crore. As per the scheme of reconstruction of Yes Bank, 75 per cent of the total investment by the Corporation would be locked in for three years, HDFC had said. - Business Line
ЁЯНТ Yes Bank to resume full banking services from March 18 : Troubled private lender YES Bank will be resuming full banking services from March 18th, from 6pm. In a tweet, the bank said its 1132 branches across India will also be open for its customers. "We will resume full banking services from Wed, Mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services. You will also be able to access all our digital services & platforms," the tweet said. We will resume full banking services from Wed, Mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services. You will also be able to access all our digital services & platforms. RBI's moratorium on Yes Bank will be lifted by March 18 and the new board led by CEO and MD Prashant Kumar will be put in place by the end of this month, the government had said last week. - economic times
ЁЯНТ Tamilnad Mercantile Bank to seek shareholders' approval for IPO again : Ninety-nine-year old Tamilnad Mercantile Bank (TMB) is to again seek shareholders’ approval to become a public listed entity. It had done so in 2016, too, at its 93rd annual general meeting (AGM). However, the shareholders, largely from the Nadar community, rejected the proposal for an Initial Public Offer (IPO) of equity by a majority. The bank has since not held any AGM and is now scheduled, on April 9, to hold its 94th to 97th AGMS all together, for years 2015-16 to 2018-19. This is a sequel to last month’s high court order, which allowed the conduct of all the pending AGMs, subject to specified conditions. TMB has 20,600 shareholders. A majority reportedly voted against an IPO last time, so that the door is not opened to “outsiders” (non-Nadars). Their argument is TMB was meant for Nadars and should be owned by Nadars. Its earlier name was Nadar Bank. - Business Standard
ЁЯНТ RBL Bank fails to assuage investors' concerns; shares plunge 24%, hit all-time low : Shares of RBL Bank plunged over 24 percent in intraday trade to hit their fresh all-time low of Rs 156.45 on BSE and looked on course to extend their losing run into the third consecutive session on March 16. The stock cracked due to fears that it could be the next lender to face a crisis after Yes Bank. However, the bank, in a regulatory filing on March 11 said, it is financially strong, well-capitalised, profitable and a growing entity with strong governance set up. "We wish to re-emphasise that RBL Bank is a fundamentally strong institution. Rumors around financial health and stability of the institution especially in social media seem to be misplaced, motivated and not based on facts," the bank said in a regulatory filing. - Moneycontrol.com
ЁЯНТ Coronavirus sell-off spoils SBI Card debut; share closes 10% lower : Bears tightened their grip on the market on March 16 aided by coronavirus fears. SBI Cards and Payment Services, which debuted on the bourses today, also bore the brunt. The scrip corrected 9.51 percent from its listing price of Rs 755 to settle at Rs 683.2 apiece on the BSE.It touched an intraday low of Rs 658 which was also its opening price on the exchange. On the National Stock Exchange, the stock closed at Rs 681.40, down Rs 73.60, or 9.75 percent after hitting a day's low of Rs 656. It failed to reach its issue price on both exchanges during the session. SBI Card traded with volumes of 6,08,92,478 equity shares on the NSE and 41.67 lakh shares on the BSE.The BSE Sensex fell more than 2,700 points, taking the total loss of over 10,800 points from record high seen in January and investors' wealth was eroded by Rs 7.5 lakh crore today. SBI Card, the subsidiary of country's largest lender State Bank of India, mopped up Rs 10,340 crore through its public issue during March 2-5 after seeing a 26.54 times subscription. - Moneycontrol.com
ЁЯНТ Yes Bank co-founder Kapoor's ED remand extended till March 20 : A special court here on Monday extended till March 20, the Enforcement Directorate (ED) custody of Yes Bank co-founder Rana Kapoor, arrested on money laundering charges. The former MD and CEO of the private lender was arrested by the ED here on March 8 under provisions of the PMLA (Prevention of Money Laundering Act) as he was allegedly not cooperating in the probe related to the crisis at Yes Bank which has been placed under moratorium by the RBI.The 62-year-old banker was initially remanded in the ED custody till March 11 which was later extended up to March 16.As his remand ended on Monday, Kapoor was produced before special PMLA court judge P P Rajvaidya, who extended his ED custody till March 20 on a plea by the central investigating agency.Meanwhile, Kapoor told the court he has been suffering for long from asthma and also depression."I just want to bring to your (court) notice that my family is providing treatment, but don't known when it will erupt," the veteran banker added. - economic times
ЁЯНТ Yes Bank: ED summons Anil Ambani on March 19 : Reliance Group Chairman Anil Ambani has been summoned by the ED later this week in connection with its money laundering probe against Yes Bank promoter Rana Kapoor and others, officials said on Monday. They said Ambani was first asked to depose at the Enforcement Directorate office in the Ballard Estate area of Mumbai on Monday as his group companies are among the big entities whose loans allegedly went bad after borrowing from the crisis-hit bank.The officials said Ambani, 60, sought exemption from appearance on some personal grounds.He has now been asked to appear on March 19, they said. - economic times
ЁЯНТ No decision to discontinue printing of Rs 2,000 banknotes: MoS Finance Anurag Thakur : The government on Monday said no decision has been taken to discontinue printing of Rs 2,000 banknotes, and state-owned SBI and Indian Bank are reconfiguring ATMs for Rs 500 and Rs 200 notes. "No indent was placed with the presses for printing of Rs 2,000 denomination notes for 2019-20. However, there is no decision to discontinue the printing of Rs 2,000 banknotes," Minister of State for Finance Anurag Singh Thakur said in a written reply in Lok Sabha.The minister was replying to a question whether the government has stopped printing of new Rs 2,000 currency notes and if the public sector banks have issued any circular to stop circulation of Rs 2,000 notes through ATMs. "In view of the higher circulation of currency notes of Rs 500 and Rs 200 denominations and inconvenience faced by the customers in exchanging Rs 2,000 currency notes, two of the public sector banks namely State Bank of India and Indian Bank have been issued instructions to the field functionaries to reconfigure the ATMs for currency notes of Rs 500 and Rs 200 denominations," Thakur said. - economic times
ЁЯНТ Banks are adopting account aggregator framework on data : Axis Bank, Bajaj Finserv, ICICI Bank, IDFC FIRST Bank, HDFC Bank, Indusind Bank, Kotak Mahindra Bank and State Bank of India are in various stages of adopting the account aggregator (AA) framework, according to an industry body, ahead of a public rollout of the new technology product in May. Account aggregators are responsible for transferring, but not storing, client data. An AA ecosystem, as envisaged by the Reserve Bank of India (RBI), would be a platform for financial services companies to reach out to the consumer to seek consent before using their personal data to optimise their product offerings.“All the work is going in that direction. We are coordinating between the ecosystems. The scale-up will see a hockey stick effect. These banks and AA companies are part of the first wave. Many are waiting to join the second wave,” said BG Mahesh, a cofounder of Sahamati, a non-profit collective of account aggregators.So far, Cams Finserv, FinSec AA Solutions and Cookiejar Technologies have received operating licences from the Reserve Bank of India. Kotak Mahindra Group said it was launching a pilot among 50,000 employees to test use cases for the AA framework in banking, broking, wealth management, and insurance. - economic times
ЁЯНТ Covid-19 threat: Devise strategy and monitoring mechanism: RBI to banks, NBFCs : The Reserve Bank of India (RBI) has issued an advisory asking banks and non-banking finance companies (NBFCs) to devise a strategy and monitoring mechanism concerning the spread of novel coronavirus disease (Covid-19) within the organisation, take stock of critical processes and revisit their business continuity plan in the emerging situations/scenarios, and encourage customers to use digital banking facilities as far as possible. It also wants the supervised entities to assess the impact on their balance sheet, asset quality and liquidityarising out of potential scenarios such as further spread of Covid-19 in India and its effect on the economy, contagion from wider disruption in the global economy, and the global financial system.Based on these studies, they should take immediate contingency measures to manage the risks and inform the RBI. - Business Line
ЁЯНТ US Federal Reserve cuts key interest rate to 0-0.25 per cent amid coronavirus crisis : In a drastic measure to stem any major disruption to the US economy as a result of the coronavirus outbreak, the Federal Reserve has cut its benchmark interest rate to almost zero and said it would buy USD700 billion in bonds. The Federal Reserve on Sunday announced slashing the key rate and buying USD700 billion in Treasury and mortgage-backed securities to help the economy withstand the viral outbreak. “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” the Fed said in a statement. - Business Line
ЁЯНТ Cryptocurrencies see robust interest, but many banks yet to start processing transactions : Less than a fortnight after the Supreme Court lifted the ban on trading in cryptocurrencies, players in the sector are seeing a sharp rise in the number of users. These companies are gearing up with expansion plans although many banks are yet to allow transactions. “After the verdict, we allowed rupee deposits within 24 hours. More than 1,000 customers register on our platform every day. We are seeing transactions growing,” said Sathvik Vishwanath, CEO and co-founder of cryptoasssets and blockchain company Unocoin. Speaking to BusinessLine, Vishwanath said the company is focussing on growing its customer base and transaction volumes. “We are also coming up with a lending feature where people can use their bitcoin as collateral and get money to their bank accounts. This will allow long-term investors to get some liquidity,” he said. - Business Line
ЁЯНТ Coronavirus pandemic: Most airlines may go bankrupt by May-end, says CAPA : The continuing spread of coronavirus may lead to the bankruptcy of most airlines as early as May-end, said Centre for Asia Pacific Aviation, a leading industry advisory. It added that a catastrophe could be avoided only if governments came together and coordinated to limit further damage. "Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full," CAPA said in a statement on March 16. - Monecyontrol.com
ЁЯНТ Rupee plunges 50 paise to 74.25 against US dollar amid coronavirus uncertainty : The Indian rupee continued its downward spiral and plunged 50 paise to 74.25 (provisional) against the US dollar on Monday as concern over the economic fallout from the coronavirus pandemic outweighed the US Fed's emergency interest rate cut and the RBI's liquidity enhancing measures. Forex traders said the fall in the domestic unit was in line with other Asian peers amid mounting fears of a coronavirus-led economic slowdown.
ЁЯНТ Gold falls below Rs 40,000 mark; silver tumbles Rs 6,445 per kg : Gold prices extended fall for the fifth consecutive day to Rs 39,995 per 10 gram in the Mumbai bullion market on profit booking as investors prefer to sit on cash. The yellow metal also came under pressure owing to the unwinding of long positions after a hike in margin calls forced traders to reduce their positions and cover losses in other asset classes. Silver prices declined Rs 6,445 to Rs 36,640 per kg from its closing
Have a Good day.. " ЁЯМ╗
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