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☕ 02.04.2020: Today's Banking / Financial News at a Glance
ЁЯНТ Coronavirus outbreak: Consolidation in PSB space now a reality : The landscape of the Indian banking will see a change with the consolidation of 10 public sector banks (PSBs) into four, effective April 1. The mega exercise comes at a time when the country and financial system is grappling with adverse fallout of the Covid-19 pandemic. Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will merge into Punjab National Bank. Mumbai-headquartered Union Bank will absorb Hyderabad-headquartered Andhra Bank and Mengaluru- headquartered Corporation Bank. Bengaluru-headquartered Canara Bank will take Syndicate Bank and Indian Bank will acquire Kolkata-headquartered Allahabad Bank. Each of the amalgamated entities with scale and national reach would have a business of over Rs 8 trillion. he consolidation is expected to help create banks with scale comparable to global banks and capable of competing effectively in India and globally. Greater scale and synergy through consolidation would lead to cost benefits, which should enable the PSBs enhance their competitiveness and positively impact the Indian banking system. - Business Standard
ЁЯНТ All branches of Oriental Bank of Commerce, United Bank of India start functioning as PNB branches : State-owned Punjab National bank on Wednesday said all nation-wide branches of United Bank of India and Oriental Bank of Commerce have started functioning as PNB branches. The amalgamation of Punjab National Bank, United Bank of India and Oriental Bank of Commerce has come into effect from April 1, 2020. The merger will create the second largest nationalized bank of the country both in terms of business and branch network. The synergy from the amalgamation will create a globally competitive, next generation bank, PNB 2.0, the bank said in a release and added that all customers, including depositors, will be treated as PNB customers. PNB 2.0 will be offering specified inter-operable services through all branches and all platforms including Mobile and Internet Banking, it added. The amalgamated bank will have a wider geographical reach through 11,000 plus branches, more than 13,000 ATMs, one lakh employees and a business mix of over Rs 18 lakh crore. "The bigger geographical footprint will help us serve our customers more effectively and efficiently," said SS Mallikarjuna Rao, MD & CEO of Punjab National Bank. - Economic Times
ЁЯНТ Canara Bank now 4th largest PSU bank after merger with Syndicate : Canara Bank on Wednesday said that following its merger with Syndicate Bank, it is now the fourth largest state-owned bank by assets. The bank said that the combined entity will have 10,391 branches, 12,829 ATMs along with a business size of over ₹16 trillion. In banking parlance, the sum of loans and deposits is referred to as total business. The merged entity will have 91,685 employees, it said in a statement on Wednesday. L V Prabhakar, chief executive, Canara Bank, said in the statement, “The combined entity will be large but with an unchanged approach to grass-rooting banking, customer delight, and satisfaction. The amalgamated bank shall massively enhance the reach of banking services to the larger public and augment the financial inclusion activities currently underway." - Live Mint
ЁЯНТ Union Bank becomes 5th largest PSB post merger with Andhra Bank, Corporation Bank : Union Bank on Wednesday said it has become the country's fifth largest public sector lender after amalgamating Andhra Bank and Corporation Bank into itself. The merger, effective from Wednesday, will harness rich individual legacies and forge a dynamic shared future, it said in a release. "As of today, all employees, customers and branches of Andhra Bank and Corporation Bank will become part of the Union Bank of India family," it added.The amalgamation will also strengthen the bank's footprint in southern India with considerable market share in this region, the Mumbai-headquartered lender said.The amalgamation is also expected to generate cost and revenue synergies to the tune of Rs 2,500 crore over the next three years."We now offer our customers a much wider access to branches, ATM, digital services and credit facilities and are now in a much stronger position as a bank," Union Bank Of India MD and CEO Rajkiran Rai G said. - Economic Times
ЁЯНТ Indian Bank allots 520.5 mn shares to Allahabad Bank shareholders : Indian Bank has on Wednesday allotted 520.56 million equity shares of face value of Rs 10 each at approved Share Exchange Ratio to the equity shareholders of Allahabad Bank following the amalgamation of Allahabad Bank into Indian Bank. The bank is in the process of filing listing applications with the stock exchanges and the aforesaid equity shares will either be credited to the Demat Accounts or Share Certificates will be despatched to the eligible shareholders of Allahabad Bank. According to the Amalgamation Scheme, Bank accounts of eligible shareholders of Allahabad Bank as registered with the Depositories or Bank will either be credited or fractional warrants will be issued for the amount arising out of fractional entitlements. - Business Standard
ЁЯНТ Syndicate Bank’s Krishnan S appointed as ED at Canara Bank post merger : State-owned Canara Bank on Wednesday said Krishnan S has become its executive director post its merger with Syndicate Bank. Krishnan held the same portfolio in Syndicate Bank. Syndicate Bank has been merged with Canara Bank with effect from Wednesday. In March, Canara Bank had said Krishnan will be appointed as executive director with effect from April 1, 2020 till October 31, 2020, or until further orders. “We further inform that, he assumed the office as Executive Director, Canara Bank today i.e. on 1.04.2020,” Canara Bank said in a regulatory filing. Krishnan served as the executive director of Syndicate Bank from November 2017 to March 31, 2020. He is a Post Graduate in commerce, a qualified Cost Accountant (ICMA) and also a Certified Associate of Indian Institute of Bankers (CAIIB). He joined the services of Indian Bank in January 1983. The career banker with over thirty years of banking experience has specialization in credit, more specifically corporate credit. - Financial Express
ЁЯНТ K Ramachandran assumes charge as Executive Director of Indian Bank : Indian Bank on Wednesday said K Ramachandran has taken charge as the new executive director of the bank with effect from April 1, 2020. On March 19, the bank had informed the exchanges about appointment of K Ramachandran, Executive Director of Allahabad Bank as Executive Director of Indian Bank. Allahabad Bank has been amalgamated into Indian Bank with the commencement of new financial year 2020-21. “This is to inform that K Ramachandran has today taken charge as Executive Director of the Bank,” Indian Bank said in a regulatory filing. - Financial Express
ЁЯНТ BoB offers refund of March EMI to home, auto loan customers : State-run Bank of Baroda on Wednesday said it is offering retail customers the option of getting a refund of the EMI that already has been deducted in March to meet any liquidity need during the disruption caused by COVID-19 pandemic. This option is for home and auto loan borrowers only and is given under the three-month moratorium announced by the Reserve Bank of India last week, on payment of all instalments of all term loans falling due between March 1, 2020, and May 31, 2020. The RBI has offered this dispensation to mitigate the burden of debt servicing brought about by disruptions on account of COVID 19 pandemic and to ensure the continuity of viable businesses. - Economic Times
ЁЯНТ PSU bank stocks end on mixed note as mega merger of lenders takes effect : Shares of public sector banks closed the day on a mixed note after the mega merger of PSU lenders came into effect from Wednesday. As per the mega consolidation plan, Oriental Bank of Commerce and United Bank of India merged into Punjab National Bank (PNB); Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank. Shares of Punjab National Bank dropped 5.72 per cent, while Canara Bank fell marginally by 0.17 per cent on the BSE. In contrast, Indian Bank gained 1.86 per cent and Union Bank of India rose marginally by 0.17 per cent. The broader market depicted a weak trend, with the 30-share BSE barometer tanking 1,203.18 points or 4.08 per cent to close at 28,265.31. - the Financial Express
ЁЯНТ After Vishwanathan's resignation, RBI reallocates portfolios of deputy governors : The Reserve Bank on Tuesday reallocated portfolios of deputy governors, with the Department of Regulation being entrusted to M K Jain. The move was necessitated as N S Vishwanathan demitted office on Tuesday, an RBI communique said.Among Vishwanathan's portfolios, regulation goes to Jain, a career commercial banker-turned-central banker, while inspection will be taken care of by B P Kanungo.Kanungo, a career central banker whose term was extended on Tuesday, will also oversee the coordination function, while risk monitoring will go to Jain.Jain will also take care of communication, while enforcement and secretary departments will be headed by Kanungo, the RBI said.Kanungo, Jain and the third DG Michael Patra will continue to hold their earlier portfolios. - Live Mint
ЁЯНТ IBA to seek RBI clarification on moratorium implementation : Days after the Reserve Bank of India (RBI) allowed banks to offer their borrowers a three-month moratorium on repayments, the Indian Banks’ Association (IBA) on Monday held a meeting between its members on how best to implement the notification. The association is now planning to write to the regulator seeking clarity on how to execute the moratorium. The meeting also took stock of banks’ preparedness in delivering services amid the lockdown, particularly to beneficiaries of the government’s recent announcements on income support. Sunil Mehta, chief executive officer of IBA, said that the body is planning to circulate a set of relevant frequently asked questions (FAQs) among its members. “Quite a few issues were discussed on Monday, such as preparedness for DBT (direct benefit transfer) delivery and sectors which are facing challenges. As for the moratorium issue, we are seeking clarity as to whether there will be a stop of the clock or it will apply only to prospective instalments,” Mehta said. - Financial Express
ЁЯНТ ICICI Bank slashes interest rate on savings account by 25 bps : Private sector lender ICICI Bank on Wednesday cut interest rates on savings accounts by 25 basis points for deposits up to Rs 2 crore. The new rates will be effective from April 8, ICICI Bank said in a regulatory filing. Savings bank accounts with deposits up to Rs 50 lakh will earn 3.25 per cent interest as against existing 3.5 per cent, it said. At the same time, it said, savings bank account with deposit over Rs 50 lakh but less than Rs 2 crore will fetch 3.75 per cent, from the current rate of 4 per cent. - Moneycontrol.com
ЁЯНТ Loan moratorium: Most pvt banks go for "opt-in" option : Most of the private sector lenders have decided to go for the "opt-in" option on loan repayment moratorium, putting the onus on the customer to take the initiative of informing the bank of their choice to go for the three-month breather offered by the Reserve Bank of India. Largest private sector lender HDFC Bank said it would encourage customers with adequate funds to continue repayments to avoid the extra interest charges and tenor extension of the loan. The Reserve Bank last Friday announced a three-month moratorium on loan repayments in the wake of COVID-19 crisis for dues to be paid between March-May 2020 and left it to the bank to implement the same. A slew of state-run banks, which control over two-thirds of the system, have gone for an "opt-out" option where the repayments automatically get deferred unless a customer informs of her willingness to pay. - Economic Times
ЁЯНТ UPI crosses 100 crore transactions in March despite COVID-19 lockdown and Yes Bank crisis : : Unified Payment Interface (UPI) lodged over 1 billion transactions in March even as both value and volume of payments on the channel showed decline from previous months due to curbs on daily commerce and limited economic activity on account of restrictions imposed to slow the spread of COVID-19 and Yes Bank related disruptions. A total of 1.25 billion UPI transactions worth Rs.2.06 lakh crore in the month of March was processed by National Payments Corporation of India, the umbrella organization responsible for operating retail payments. This is a 6% fall in volume and 7% decline in value of UPI transactions compared to 1.33 billion transactions worth Rs.2.22 lakh crore that were made in February, latest data disclosed by NPCI on its twitter page showed. - economic times
ЁЯНТ India Post records transactions worth Rs 2,680 crore in 3 days : : India Post has recorded transactions worth Rs 2,680 crore between Thursday and Saturday with post office saving bank accounts leading the business, according to an official statement issued on Tuesday. The government has kept open services of post offices as part of essential items during the 21-day lockdown period.According to data shared in the statement, people deposited a total amount of over Rs 1,615 crore and withdrew over Rs 896 crore during the three-day period.During the three days, India Post Network claimed to have delivered 1,50,779 speed post, registered letters, parcels delivered and money orders in total, according to the official data. India Post recorded transactions worth Rs 819.72 crore on Thursday, Rs 906.22 crore Friday and Rs 954.22 crore on Saturday. - Economic times
ЁЯНТ No blind recycling of inward currency, banks told : The State-Level Bankers’ Committee (SLBC), Kerala, has directed all member banks that inward currencies at branches should not be recycled straightaway, as part of caution against the spread of Covid-19. Inward currencies may be separately wrapped in packets marked with dates, and should be recycled only after 48 hours (two days), an SLBC notice sent to member banks on Wednesday said. The SLBC inferred that currency notes are a potential instrument for spreading coronavirus, and cited a State Health Department observation that the virus could sustain itself on infected currency notes for about 12 hours. The directive against immediate recycling of the currency has to be scrupulously followed, the circular said. “Let us ensure that all possible steps are taken to prevent the spread of Covid-19 virus. All staff members must continue to wear masks and gloves, use sanitisers, and adhere to the social distancing protocol.” - Business Line
ЁЯНТ PhonePe launches insurance policy for Covid-19 treatment : Digital payments platform PhonePe on Wednesday announced the launch of “India’s first” coronavirus hospitalisation insurance policy in collaboration with Bajaj Allianz General Insurance. The policy, named Corona Care, is priced at ₹156 with an insurance cover of ₹50,000 for a person aged under 55 years with the cover applicable at any hospital offering coronavirus treatment. It also covers 30 days of expenses related to pre-hospitalisation costs and post-care medical treatment. Customers don’t need to undertake any medical tests before purchasing the policy and can purchase it instantly from their homes. - Business Line
ЁЯНТ AU Small Finance Bank commits ₹5 crore for Covid-19 relief work : AU Small Finance Bank has committed ₹5 crore for Covid-19 relief work, of which ₹2 crore is for PM CARES Fund and ₹51 lakh each to Delhi and Maharashtra Chief Ministers’ relief funds. It will also contribute ₹2 crore through various corporate social responsibility (CSR) initiatives. Further, AU Bank will also provide support to the Rajasthan Government for a testing facility that was established in Bhilwara, one of the worst hit districts in the State, the company said in a statement. “As an essential service provider, AU Bank is always standing strong with the Government and citizens of the country. Along with this, we are constantly taking initiatives to support our government fight the coronavirus pandemic. All the employees are participating in these efforts wholeheartedly, especially the AU Foundation team that is consistently doing need assessment and devising specific programmes for the needy,” Sanjay Agarwal, Managing Director and Chief Executive Officer at AU Bank, said. - Business Line
ЁЯНТ IndusInd Bank promoters repay loan, pledged shares to be released : IndusInd Ltd, Mauritius, which is the promoter of private sector lender IndusInd Bank, has fully repaid its loan to Citibank London on March 31. “The pledge of 23.8 million equity shares of IndusInd Bank shall be released by Citibank, London, on Wednesday,” the private sector lender said in a regulatory filing, adding that IndusInd Ltd, Mauritius is now a debt-free entity. In a letter to the bank’s new Managing Director and CEO Sumant Kathpalia, IndusInd International Holdings and IndusInd Ltd said that the holdings of IIHL (Mauritius) and IL (Mauritius) stand at 14.68 per cent of the bank’s fully diluted capital basis. “IndusInd International Holdings Ltd (IIHL) and IndusInd Ltd, Mauritius, stand committed to maintain their equity holding in IndusInd Bank at the overall regulatory limits prescribed for promoters of private sector banks in India,” said the letter, which was part of the regulatory filing. - Business Line
ЁЯНТ Loan moratorium: Bankers rush to explain terms to customers : The Frequently Asked Questions (FAQs) on the three-month loan moratorium by the Indian Banks’ Association late on Tuesday night came in the wake of much confusion among customers on their loan status. Many bankers reported that they were getting questions from customers on whether the three-month deferment would be akin to a waiver and whether all customers should take it. “Since the start of the week, customers have been sending queries on whether the loan moratorium means they do not have to pay any EMI for three months. We had been explaining to them that this is not the case,” said an executive with a private bank.Another banker said banks have been advising customers to continue paying the EMI if they can afford to. “If there is no disruption in their salaries due to the lockdown, it is advisable that they continue paying their loan instalments as else they would have to pay higher interest than what the funds lying in the savings bank account would get,” said another banker. - Business Line
ЁЯНТ Karur Vysya Bank donates Rs 5 crores to Prime Minister’s National Relief Fund : Private sector lender Karur Vysya Bank donated Rs. 5 crore to the Prime Minister’s National Relief Fund (PMNRF). In a press statement issued today, the Karur-based lender said, "Karur Vysya Bank has donated a sum of Rs. five crores to the Prime Minister’s National Relief Fund as part of its Corporate Social Responsibility initiatives." - Business Line
ЁЯНТ RBI relief measures are a tonic to Indian economy, says Karnataka Bank chief : The relief measures announced by the Reserve Bank of India to tide over the economic stress caused by the Covid-19 pandemic will act as a much-needed tonic to the Indian economy, said Mahabaleshwara MS, Managing Director and Chief Executive Officer of Karnataka Bank. Delivering his first address of FY2020-21 to the bank’s staff across the country via video streaming on Wednesday, he said bankers have to show their commitment in this war-like situation by extending the benefit of the RBI relief package to all borrowers expeditiously. - Business Line
ЁЯНТ Banks may ask RBI for breather on lump sum repayment of deferred interest : Banks may move the Reserve Bank of India (RBI) to allow businesses and individuals availing working capital facilities more time to repay the interest in case they seek deferment of recovery of interest for three months under the Reserve Bank of India’s COVID-19 regulatory package. Currently, entities who opt for deferment of recovery of interest for three months have to repay the deferred interest amount in the fourth month. As per the frequently asked questions prepared by the Indian Banks’ Association (IBA), while the recovery of interest applied to Cash Credit/Overdraft (working capital facilities) on 31st March, 30th April and 31st May 2020 is being deferred, the entire interest must be recovered along with the interest being applied on 30th June 2020. - Business Line
ЁЯНТ Kerala proposes bank loans at 9% for SHGs in Covid-19 package : The Kerala government has requested banks to consider giving loans at 9 per cent interest rate to self-help groups (SHGs) as a special Covid-19 package. It advised the State Level Bankers’ Committee (SLBC) that in view of the lockdown and related hardships, banks should lend along the lines suggested by it. Sources said this is being modelled on the Resurgent Kerala Loan Scheme that the SLBC had come up with during the 2018 floods in the state. The government had provided interest-free loans offering subvention of 9 per cent, requesting banks to peg their interest rate at the same level. - Business Line
ЁЯНТ Bharat BillPay registers growth in transactions in March : Digital payments continued to be robust in March with some decline due to the lockdown across the country in the wake of the coronavirus pandemic. Significantly, it was only Bharat BillPay that registered a growth in transactions last month as more consumers went online to pay their utility bills during the home isolation. As many as 1.58 crore transactions were undertaken on the Bharat BillPay platform in March, amounting to ₹1,953.55 crore, according to data released by the National Payments Corporation of India. In February, 1.49 crore transactions were conducted on the platform, processing ₹1,957.40 crore. - Business Line
ЁЯНТ Customers opting for deferment of installment may end up paying additional interest : Borrowers, including retail borrowers, must carefully weigh their options before opting for deferment of the installments and interest/Equated Monthly Installments (EMIs) on term loans falling due between March 1, 2020, and May 31, 2020, under the Reserve Bank of India’s Covid-19 regulatory package. It could result in an increase in the amount/number of EMIs. State Bank of India has clearly told its customers opting to defer recovery of installment in their term loan account till May 31, 2020, that interest will continue to accrue to their loan account during the period of deferment, and this could result in increase in the amount/number of their EMIs. - Business Line
ЁЯНТ RBI announces more measures to support exporters, banks and States/UTs : The Reserve Bank of India (RBI) has announced further measures, including extending the time for realisation and repatriation of proceeds for exports made up to or on July 31, 2020 to 15 months from the date of export against nine months earlier, while upping the temporary accommodation it provides to States and Union Territories to deal with the COVID-19 pandemic. The central bank also said it is not activating the countercyclical capital buffer for banks. -Business Line
ЁЯНТ RBL Bank lost about 8% deposits in Q4, cost of deposit declines : Private sector lender RBL Bank Ltd on Wednesday said while it lost about 8% of its deposits in the March quarter, its cost of deposits declined on a sequential basis during the period. In a statement to the exchanges, the bank said there has been some run-offs of deposits but the reduction was essentially in bulk deposits from government entities and corporations. The bank has also re-balanced its deposit profile wherein the proportion of retail deposit and current and savings account (CASA) ratio was higher sequentially as on 31 March. RBL Bank said it saw a strong operating profit trajectory for the quarter, stable quarter-on-quarter (QoQ) and a consequent healthy growth year-on-year (YoY). Net interest margin (NIM), a key measure of profitability, was at an all-time high in the March quarter, the bank said, adding that net interest income growth was higher than growth in advances and balance sheet growth. - Live Mint
ЁЯНТ Maharashtra: 1% concession on stamp duty from April 1 : The one per cent concession in stamp duty announced in the Maharashtra budget on March 6 will start from April 1, officials said on Saturday. The concession is applicable to Mumbai Metropolitan Region, Pune, Nagpur and Pimpri Chinchwad for a period of two years, they said. "The one per cent concession on stamp duty will be on registration of documents pertaining to sale and lease of immovable property, gift deeds etc," an official informed. - Times of India
ЁЯНТ Yes Bank raises Rs 3,500cr from sale of certificate of deposits to two PSU banks: Report : Troubled private sector lender Yes Bank has successfully raised Rs 3,500 crore on March 31 via certificates of deposits of nearly six-month maturity, as per a report by The Economic Times. “Two large public sector banks” “flush with liquidity” are subscribers to Yes Bank’s CDs and the process was completed within three working days," as per sources quoted in the report. Yes Bank likely offered an interest rate of 8.25 percent on its CDs. Crisil on March 19 had assigned an A2 rating to the bank’s Rs 20,000 crore money market instrument, the report added. - Moneycontrol.com
ЁЯНТ Right to appoint auditors should rest with company’s shareholders, say industry bodies : A company’s board and shareholders should appoint its auditors and the decision should not be handed over to an external panel, industry leaders have said, arguing against changing the existing system of appointment of auditors. “The selection of auditors is the prerogative of the stakeholders of the company (audit committee/board/shareholders),” the Confederation of Indian Industry (CII) has said. - Business Line
ЁЯНТ Gold price today: Yellow metal rises Rs 301 to Rs 43,474/10gm, silver dips : Gold prices jumped Rs 301 to Rs 43,474 per 10 gram in Mumbai bullion market on safe-haven demand. Major gold trading centres in the country have been shut due to the 21-day lockdown announced by state governments to prevent the spread of novel coronavirus, or COVID-19, pandemic. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 32,606, Rs 39,822, Rs 43,474 plus 3 percent GST, respectively. Silver declined Rs 350 to Rs 39,200 per kg from its closing on March 31.
ЁЯНТ Sensex drops 1,200 points on weak global cues; Nifty below 8,300 : Sensex fell 1,203 points to 28,265 while the Nifty50 closed 343 points lower at 8,253. The Indian market will remain shut on April 2 on account of a public holiday.
Have a Good day.. "ЁЯМ╗
☕ 02.04.2020: Today's Banking / Financial News at a Glance
ЁЯНТ Coronavirus outbreak: Consolidation in PSB space now a reality : The landscape of the Indian banking will see a change with the consolidation of 10 public sector banks (PSBs) into four, effective April 1. The mega exercise comes at a time when the country and financial system is grappling with adverse fallout of the Covid-19 pandemic. Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will merge into Punjab National Bank. Mumbai-headquartered Union Bank will absorb Hyderabad-headquartered Andhra Bank and Mengaluru- headquartered Corporation Bank. Bengaluru-headquartered Canara Bank will take Syndicate Bank and Indian Bank will acquire Kolkata-headquartered Allahabad Bank. Each of the amalgamated entities with scale and national reach would have a business of over Rs 8 trillion. he consolidation is expected to help create banks with scale comparable to global banks and capable of competing effectively in India and globally. Greater scale and synergy through consolidation would lead to cost benefits, which should enable the PSBs enhance their competitiveness and positively impact the Indian banking system. - Business Standard
ЁЯНТ All branches of Oriental Bank of Commerce, United Bank of India start functioning as PNB branches : State-owned Punjab National bank on Wednesday said all nation-wide branches of United Bank of India and Oriental Bank of Commerce have started functioning as PNB branches. The amalgamation of Punjab National Bank, United Bank of India and Oriental Bank of Commerce has come into effect from April 1, 2020. The merger will create the second largest nationalized bank of the country both in terms of business and branch network. The synergy from the amalgamation will create a globally competitive, next generation bank, PNB 2.0, the bank said in a release and added that all customers, including depositors, will be treated as PNB customers. PNB 2.0 will be offering specified inter-operable services through all branches and all platforms including Mobile and Internet Banking, it added. The amalgamated bank will have a wider geographical reach through 11,000 plus branches, more than 13,000 ATMs, one lakh employees and a business mix of over Rs 18 lakh crore. "The bigger geographical footprint will help us serve our customers more effectively and efficiently," said SS Mallikarjuna Rao, MD & CEO of Punjab National Bank. - Economic Times
ЁЯНТ Canara Bank now 4th largest PSU bank after merger with Syndicate : Canara Bank on Wednesday said that following its merger with Syndicate Bank, it is now the fourth largest state-owned bank by assets. The bank said that the combined entity will have 10,391 branches, 12,829 ATMs along with a business size of over ₹16 trillion. In banking parlance, the sum of loans and deposits is referred to as total business. The merged entity will have 91,685 employees, it said in a statement on Wednesday. L V Prabhakar, chief executive, Canara Bank, said in the statement, “The combined entity will be large but with an unchanged approach to grass-rooting banking, customer delight, and satisfaction. The amalgamated bank shall massively enhance the reach of banking services to the larger public and augment the financial inclusion activities currently underway." - Live Mint
ЁЯНТ Union Bank becomes 5th largest PSB post merger with Andhra Bank, Corporation Bank : Union Bank on Wednesday said it has become the country's fifth largest public sector lender after amalgamating Andhra Bank and Corporation Bank into itself. The merger, effective from Wednesday, will harness rich individual legacies and forge a dynamic shared future, it said in a release. "As of today, all employees, customers and branches of Andhra Bank and Corporation Bank will become part of the Union Bank of India family," it added.The amalgamation will also strengthen the bank's footprint in southern India with considerable market share in this region, the Mumbai-headquartered lender said.The amalgamation is also expected to generate cost and revenue synergies to the tune of Rs 2,500 crore over the next three years."We now offer our customers a much wider access to branches, ATM, digital services and credit facilities and are now in a much stronger position as a bank," Union Bank Of India MD and CEO Rajkiran Rai G said. - Economic Times
ЁЯНТ Indian Bank allots 520.5 mn shares to Allahabad Bank shareholders : Indian Bank has on Wednesday allotted 520.56 million equity shares of face value of Rs 10 each at approved Share Exchange Ratio to the equity shareholders of Allahabad Bank following the amalgamation of Allahabad Bank into Indian Bank. The bank is in the process of filing listing applications with the stock exchanges and the aforesaid equity shares will either be credited to the Demat Accounts or Share Certificates will be despatched to the eligible shareholders of Allahabad Bank. According to the Amalgamation Scheme, Bank accounts of eligible shareholders of Allahabad Bank as registered with the Depositories or Bank will either be credited or fractional warrants will be issued for the amount arising out of fractional entitlements. - Business Standard
ЁЯНТ Syndicate Bank’s Krishnan S appointed as ED at Canara Bank post merger : State-owned Canara Bank on Wednesday said Krishnan S has become its executive director post its merger with Syndicate Bank. Krishnan held the same portfolio in Syndicate Bank. Syndicate Bank has been merged with Canara Bank with effect from Wednesday. In March, Canara Bank had said Krishnan will be appointed as executive director with effect from April 1, 2020 till October 31, 2020, or until further orders. “We further inform that, he assumed the office as Executive Director, Canara Bank today i.e. on 1.04.2020,” Canara Bank said in a regulatory filing. Krishnan served as the executive director of Syndicate Bank from November 2017 to March 31, 2020. He is a Post Graduate in commerce, a qualified Cost Accountant (ICMA) and also a Certified Associate of Indian Institute of Bankers (CAIIB). He joined the services of Indian Bank in January 1983. The career banker with over thirty years of banking experience has specialization in credit, more specifically corporate credit. - Financial Express
ЁЯНТ K Ramachandran assumes charge as Executive Director of Indian Bank : Indian Bank on Wednesday said K Ramachandran has taken charge as the new executive director of the bank with effect from April 1, 2020. On March 19, the bank had informed the exchanges about appointment of K Ramachandran, Executive Director of Allahabad Bank as Executive Director of Indian Bank. Allahabad Bank has been amalgamated into Indian Bank with the commencement of new financial year 2020-21. “This is to inform that K Ramachandran has today taken charge as Executive Director of the Bank,” Indian Bank said in a regulatory filing. - Financial Express
ЁЯНТ BoB offers refund of March EMI to home, auto loan customers : State-run Bank of Baroda on Wednesday said it is offering retail customers the option of getting a refund of the EMI that already has been deducted in March to meet any liquidity need during the disruption caused by COVID-19 pandemic. This option is for home and auto loan borrowers only and is given under the three-month moratorium announced by the Reserve Bank of India last week, on payment of all instalments of all term loans falling due between March 1, 2020, and May 31, 2020. The RBI has offered this dispensation to mitigate the burden of debt servicing brought about by disruptions on account of COVID 19 pandemic and to ensure the continuity of viable businesses. - Economic Times
ЁЯНТ PSU bank stocks end on mixed note as mega merger of lenders takes effect : Shares of public sector banks closed the day on a mixed note after the mega merger of PSU lenders came into effect from Wednesday. As per the mega consolidation plan, Oriental Bank of Commerce and United Bank of India merged into Punjab National Bank (PNB); Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank. Shares of Punjab National Bank dropped 5.72 per cent, while Canara Bank fell marginally by 0.17 per cent on the BSE. In contrast, Indian Bank gained 1.86 per cent and Union Bank of India rose marginally by 0.17 per cent. The broader market depicted a weak trend, with the 30-share BSE barometer tanking 1,203.18 points or 4.08 per cent to close at 28,265.31. - the Financial Express
ЁЯНТ After Vishwanathan's resignation, RBI reallocates portfolios of deputy governors : The Reserve Bank on Tuesday reallocated portfolios of deputy governors, with the Department of Regulation being entrusted to M K Jain. The move was necessitated as N S Vishwanathan demitted office on Tuesday, an RBI communique said.Among Vishwanathan's portfolios, regulation goes to Jain, a career commercial banker-turned-central banker, while inspection will be taken care of by B P Kanungo.Kanungo, a career central banker whose term was extended on Tuesday, will also oversee the coordination function, while risk monitoring will go to Jain.Jain will also take care of communication, while enforcement and secretary departments will be headed by Kanungo, the RBI said.Kanungo, Jain and the third DG Michael Patra will continue to hold their earlier portfolios. - Live Mint
ЁЯНТ IBA to seek RBI clarification on moratorium implementation : Days after the Reserve Bank of India (RBI) allowed banks to offer their borrowers a three-month moratorium on repayments, the Indian Banks’ Association (IBA) on Monday held a meeting between its members on how best to implement the notification. The association is now planning to write to the regulator seeking clarity on how to execute the moratorium. The meeting also took stock of banks’ preparedness in delivering services amid the lockdown, particularly to beneficiaries of the government’s recent announcements on income support. Sunil Mehta, chief executive officer of IBA, said that the body is planning to circulate a set of relevant frequently asked questions (FAQs) among its members. “Quite a few issues were discussed on Monday, such as preparedness for DBT (direct benefit transfer) delivery and sectors which are facing challenges. As for the moratorium issue, we are seeking clarity as to whether there will be a stop of the clock or it will apply only to prospective instalments,” Mehta said. - Financial Express
ЁЯНТ ICICI Bank slashes interest rate on savings account by 25 bps : Private sector lender ICICI Bank on Wednesday cut interest rates on savings accounts by 25 basis points for deposits up to Rs 2 crore. The new rates will be effective from April 8, ICICI Bank said in a regulatory filing. Savings bank accounts with deposits up to Rs 50 lakh will earn 3.25 per cent interest as against existing 3.5 per cent, it said. At the same time, it said, savings bank account with deposit over Rs 50 lakh but less than Rs 2 crore will fetch 3.75 per cent, from the current rate of 4 per cent. - Moneycontrol.com
ЁЯНТ Loan moratorium: Most pvt banks go for "opt-in" option : Most of the private sector lenders have decided to go for the "opt-in" option on loan repayment moratorium, putting the onus on the customer to take the initiative of informing the bank of their choice to go for the three-month breather offered by the Reserve Bank of India. Largest private sector lender HDFC Bank said it would encourage customers with adequate funds to continue repayments to avoid the extra interest charges and tenor extension of the loan. The Reserve Bank last Friday announced a three-month moratorium on loan repayments in the wake of COVID-19 crisis for dues to be paid between March-May 2020 and left it to the bank to implement the same. A slew of state-run banks, which control over two-thirds of the system, have gone for an "opt-out" option where the repayments automatically get deferred unless a customer informs of her willingness to pay. - Economic Times
ЁЯНТ UPI crosses 100 crore transactions in March despite COVID-19 lockdown and Yes Bank crisis : : Unified Payment Interface (UPI) lodged over 1 billion transactions in March even as both value and volume of payments on the channel showed decline from previous months due to curbs on daily commerce and limited economic activity on account of restrictions imposed to slow the spread of COVID-19 and Yes Bank related disruptions. A total of 1.25 billion UPI transactions worth Rs.2.06 lakh crore in the month of March was processed by National Payments Corporation of India, the umbrella organization responsible for operating retail payments. This is a 6% fall in volume and 7% decline in value of UPI transactions compared to 1.33 billion transactions worth Rs.2.22 lakh crore that were made in February, latest data disclosed by NPCI on its twitter page showed. - economic times
ЁЯНТ India Post records transactions worth Rs 2,680 crore in 3 days : : India Post has recorded transactions worth Rs 2,680 crore between Thursday and Saturday with post office saving bank accounts leading the business, according to an official statement issued on Tuesday. The government has kept open services of post offices as part of essential items during the 21-day lockdown period.According to data shared in the statement, people deposited a total amount of over Rs 1,615 crore and withdrew over Rs 896 crore during the three-day period.During the three days, India Post Network claimed to have delivered 1,50,779 speed post, registered letters, parcels delivered and money orders in total, according to the official data. India Post recorded transactions worth Rs 819.72 crore on Thursday, Rs 906.22 crore Friday and Rs 954.22 crore on Saturday. - Economic times
ЁЯНТ No blind recycling of inward currency, banks told : The State-Level Bankers’ Committee (SLBC), Kerala, has directed all member banks that inward currencies at branches should not be recycled straightaway, as part of caution against the spread of Covid-19. Inward currencies may be separately wrapped in packets marked with dates, and should be recycled only after 48 hours (two days), an SLBC notice sent to member banks on Wednesday said. The SLBC inferred that currency notes are a potential instrument for spreading coronavirus, and cited a State Health Department observation that the virus could sustain itself on infected currency notes for about 12 hours. The directive against immediate recycling of the currency has to be scrupulously followed, the circular said. “Let us ensure that all possible steps are taken to prevent the spread of Covid-19 virus. All staff members must continue to wear masks and gloves, use sanitisers, and adhere to the social distancing protocol.” - Business Line
ЁЯНТ PhonePe launches insurance policy for Covid-19 treatment : Digital payments platform PhonePe on Wednesday announced the launch of “India’s first” coronavirus hospitalisation insurance policy in collaboration with Bajaj Allianz General Insurance. The policy, named Corona Care, is priced at ₹156 with an insurance cover of ₹50,000 for a person aged under 55 years with the cover applicable at any hospital offering coronavirus treatment. It also covers 30 days of expenses related to pre-hospitalisation costs and post-care medical treatment. Customers don’t need to undertake any medical tests before purchasing the policy and can purchase it instantly from their homes. - Business Line
ЁЯНТ AU Small Finance Bank commits ₹5 crore for Covid-19 relief work : AU Small Finance Bank has committed ₹5 crore for Covid-19 relief work, of which ₹2 crore is for PM CARES Fund and ₹51 lakh each to Delhi and Maharashtra Chief Ministers’ relief funds. It will also contribute ₹2 crore through various corporate social responsibility (CSR) initiatives. Further, AU Bank will also provide support to the Rajasthan Government for a testing facility that was established in Bhilwara, one of the worst hit districts in the State, the company said in a statement. “As an essential service provider, AU Bank is always standing strong with the Government and citizens of the country. Along with this, we are constantly taking initiatives to support our government fight the coronavirus pandemic. All the employees are participating in these efforts wholeheartedly, especially the AU Foundation team that is consistently doing need assessment and devising specific programmes for the needy,” Sanjay Agarwal, Managing Director and Chief Executive Officer at AU Bank, said. - Business Line
ЁЯНТ IndusInd Bank promoters repay loan, pledged shares to be released : IndusInd Ltd, Mauritius, which is the promoter of private sector lender IndusInd Bank, has fully repaid its loan to Citibank London on March 31. “The pledge of 23.8 million equity shares of IndusInd Bank shall be released by Citibank, London, on Wednesday,” the private sector lender said in a regulatory filing, adding that IndusInd Ltd, Mauritius is now a debt-free entity. In a letter to the bank’s new Managing Director and CEO Sumant Kathpalia, IndusInd International Holdings and IndusInd Ltd said that the holdings of IIHL (Mauritius) and IL (Mauritius) stand at 14.68 per cent of the bank’s fully diluted capital basis. “IndusInd International Holdings Ltd (IIHL) and IndusInd Ltd, Mauritius, stand committed to maintain their equity holding in IndusInd Bank at the overall regulatory limits prescribed for promoters of private sector banks in India,” said the letter, which was part of the regulatory filing. - Business Line
ЁЯНТ Loan moratorium: Bankers rush to explain terms to customers : The Frequently Asked Questions (FAQs) on the three-month loan moratorium by the Indian Banks’ Association late on Tuesday night came in the wake of much confusion among customers on their loan status. Many bankers reported that they were getting questions from customers on whether the three-month deferment would be akin to a waiver and whether all customers should take it. “Since the start of the week, customers have been sending queries on whether the loan moratorium means they do not have to pay any EMI for three months. We had been explaining to them that this is not the case,” said an executive with a private bank.Another banker said banks have been advising customers to continue paying the EMI if they can afford to. “If there is no disruption in their salaries due to the lockdown, it is advisable that they continue paying their loan instalments as else they would have to pay higher interest than what the funds lying in the savings bank account would get,” said another banker. - Business Line
ЁЯНТ Karur Vysya Bank donates Rs 5 crores to Prime Minister’s National Relief Fund : Private sector lender Karur Vysya Bank donated Rs. 5 crore to the Prime Minister’s National Relief Fund (PMNRF). In a press statement issued today, the Karur-based lender said, "Karur Vysya Bank has donated a sum of Rs. five crores to the Prime Minister’s National Relief Fund as part of its Corporate Social Responsibility initiatives." - Business Line
ЁЯНТ RBI relief measures are a tonic to Indian economy, says Karnataka Bank chief : The relief measures announced by the Reserve Bank of India to tide over the economic stress caused by the Covid-19 pandemic will act as a much-needed tonic to the Indian economy, said Mahabaleshwara MS, Managing Director and Chief Executive Officer of Karnataka Bank. Delivering his first address of FY2020-21 to the bank’s staff across the country via video streaming on Wednesday, he said bankers have to show their commitment in this war-like situation by extending the benefit of the RBI relief package to all borrowers expeditiously. - Business Line
ЁЯНТ Banks may ask RBI for breather on lump sum repayment of deferred interest : Banks may move the Reserve Bank of India (RBI) to allow businesses and individuals availing working capital facilities more time to repay the interest in case they seek deferment of recovery of interest for three months under the Reserve Bank of India’s COVID-19 regulatory package. Currently, entities who opt for deferment of recovery of interest for three months have to repay the deferred interest amount in the fourth month. As per the frequently asked questions prepared by the Indian Banks’ Association (IBA), while the recovery of interest applied to Cash Credit/Overdraft (working capital facilities) on 31st March, 30th April and 31st May 2020 is being deferred, the entire interest must be recovered along with the interest being applied on 30th June 2020. - Business Line
ЁЯНТ Kerala proposes bank loans at 9% for SHGs in Covid-19 package : The Kerala government has requested banks to consider giving loans at 9 per cent interest rate to self-help groups (SHGs) as a special Covid-19 package. It advised the State Level Bankers’ Committee (SLBC) that in view of the lockdown and related hardships, banks should lend along the lines suggested by it. Sources said this is being modelled on the Resurgent Kerala Loan Scheme that the SLBC had come up with during the 2018 floods in the state. The government had provided interest-free loans offering subvention of 9 per cent, requesting banks to peg their interest rate at the same level. - Business Line
ЁЯНТ Bharat BillPay registers growth in transactions in March : Digital payments continued to be robust in March with some decline due to the lockdown across the country in the wake of the coronavirus pandemic. Significantly, it was only Bharat BillPay that registered a growth in transactions last month as more consumers went online to pay their utility bills during the home isolation. As many as 1.58 crore transactions were undertaken on the Bharat BillPay platform in March, amounting to ₹1,953.55 crore, according to data released by the National Payments Corporation of India. In February, 1.49 crore transactions were conducted on the platform, processing ₹1,957.40 crore. - Business Line
ЁЯНТ Customers opting for deferment of installment may end up paying additional interest : Borrowers, including retail borrowers, must carefully weigh their options before opting for deferment of the installments and interest/Equated Monthly Installments (EMIs) on term loans falling due between March 1, 2020, and May 31, 2020, under the Reserve Bank of India’s Covid-19 regulatory package. It could result in an increase in the amount/number of EMIs. State Bank of India has clearly told its customers opting to defer recovery of installment in their term loan account till May 31, 2020, that interest will continue to accrue to their loan account during the period of deferment, and this could result in increase in the amount/number of their EMIs. - Business Line
ЁЯНТ RBI announces more measures to support exporters, banks and States/UTs : The Reserve Bank of India (RBI) has announced further measures, including extending the time for realisation and repatriation of proceeds for exports made up to or on July 31, 2020 to 15 months from the date of export against nine months earlier, while upping the temporary accommodation it provides to States and Union Territories to deal with the COVID-19 pandemic. The central bank also said it is not activating the countercyclical capital buffer for banks. -Business Line
ЁЯНТ RBL Bank lost about 8% deposits in Q4, cost of deposit declines : Private sector lender RBL Bank Ltd on Wednesday said while it lost about 8% of its deposits in the March quarter, its cost of deposits declined on a sequential basis during the period. In a statement to the exchanges, the bank said there has been some run-offs of deposits but the reduction was essentially in bulk deposits from government entities and corporations. The bank has also re-balanced its deposit profile wherein the proportion of retail deposit and current and savings account (CASA) ratio was higher sequentially as on 31 March. RBL Bank said it saw a strong operating profit trajectory for the quarter, stable quarter-on-quarter (QoQ) and a consequent healthy growth year-on-year (YoY). Net interest margin (NIM), a key measure of profitability, was at an all-time high in the March quarter, the bank said, adding that net interest income growth was higher than growth in advances and balance sheet growth. - Live Mint
ЁЯНТ Maharashtra: 1% concession on stamp duty from April 1 : The one per cent concession in stamp duty announced in the Maharashtra budget on March 6 will start from April 1, officials said on Saturday. The concession is applicable to Mumbai Metropolitan Region, Pune, Nagpur and Pimpri Chinchwad for a period of two years, they said. "The one per cent concession on stamp duty will be on registration of documents pertaining to sale and lease of immovable property, gift deeds etc," an official informed. - Times of India
ЁЯНТ Yes Bank raises Rs 3,500cr from sale of certificate of deposits to two PSU banks: Report : Troubled private sector lender Yes Bank has successfully raised Rs 3,500 crore on March 31 via certificates of deposits of nearly six-month maturity, as per a report by The Economic Times. “Two large public sector banks” “flush with liquidity” are subscribers to Yes Bank’s CDs and the process was completed within three working days," as per sources quoted in the report. Yes Bank likely offered an interest rate of 8.25 percent on its CDs. Crisil on March 19 had assigned an A2 rating to the bank’s Rs 20,000 crore money market instrument, the report added. - Moneycontrol.com
ЁЯНТ Right to appoint auditors should rest with company’s shareholders, say industry bodies : A company’s board and shareholders should appoint its auditors and the decision should not be handed over to an external panel, industry leaders have said, arguing against changing the existing system of appointment of auditors. “The selection of auditors is the prerogative of the stakeholders of the company (audit committee/board/shareholders),” the Confederation of Indian Industry (CII) has said. - Business Line
ЁЯНТ Gold price today: Yellow metal rises Rs 301 to Rs 43,474/10gm, silver dips : Gold prices jumped Rs 301 to Rs 43,474 per 10 gram in Mumbai bullion market on safe-haven demand. Major gold trading centres in the country have been shut due to the 21-day lockdown announced by state governments to prevent the spread of novel coronavirus, or COVID-19, pandemic. The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 32,606, Rs 39,822, Rs 43,474 plus 3 percent GST, respectively. Silver declined Rs 350 to Rs 39,200 per kg from its closing on March 31.
ЁЯНТ Sensex drops 1,200 points on weak global cues; Nifty below 8,300 : Sensex fell 1,203 points to 28,265 while the Nifty50 closed 343 points lower at 8,253. The Indian market will remain shut on April 2 on account of a public holiday.
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