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☕ 07.04.2020: Today's Banking / Financial News at a Glance
ЁЯНТ With RBI moratorium in place, Q4 results likely to be stable for banks : The three-month loan moratorium by the Reserve Bank of India is likely to give a reprieve to banks, which will start announcing their fourth quarter results later this month. But with the national lockdown and the Covid19 pandemic impacting businesses, the road ahead could be rocky. “The fourth quarter should be uneventful, but it is more that preparing for the next quarter is more important. Asset quality is likely to be largely stable,” said Sanjay Agarwal, Senior Director, CARE Ratings. “With a moratorium on loan repayment, we are less inclined to attach serious importance to the reported earnings of banks for this and the next quarter. With that framework in mind, we expect banks to show healthy earnings growth, primarily due to lower provisions, lower tax rate, and higher treasury income,” said Kotak Institutional Equities in a report. - Business LIne
ЁЯНТ Covid-19: Amid economic slump, banks' credit costs, NPAs to rise in 2020 ; Banks in the country are likely to witness a spike in their non-performing assets ratio by 1.9 per cent and credit cost ratios by 130 basis point in 2020, following the economic slowdown on account of COVID-19 crisis, says a report. In its report titled "For Asia-Pacific Banks, COVID-19 Crisis Could Add USD 300 Billion To Credit Costs" S&P Global Ratings said, it expects the non-performing assets (NPA) ratio for the Chinese banking sector to increase by about 2 per cent in 2020, and credit losses, to increase by about 100 basis points. On India, the report said "the NPA ratio in India is likely to fare similarly to China's (1.9 per cent 2 per cent) but the credit costs ratios could be worse, increasing by about 130 basis points," the rating agency's credit analyst Gavin Gunning said in the report. - Business Stanard
ЁЯНТ Canara Bank trims MCLR rates on loans, advances across all tenors : Canara Bank, a Bengaluru-based public sector bank, has reduced its marginal cost of funds based lending rate (MCLR) on loans/advances across all tenors with effect from April 7 for the amalgamated entity (Canara-Syndicate), said a release from the bank. The bank has reduced interest rate by 35 basis points under one-year tenor; 30 basis points under six-months tenor; 20 basis points under three-months tenor and 15 basis points under Overnight and one-month tenors. Accordingly, the tenor linked MCLRs of the bank shall be as under with effect from April 7: Overnight MCLR – interest rate 7.50 per cent. One-month MCLR – interest rate 7.50 per cent. Three-month MCLR – interest rate 7.75 per cent. Six month MCLR – interest rate 7.80 per cent. And one year MCLR – interest rate 7.85 per cent. Repo Linked Lending Rate (RLLR) has been reduced by 75 basis points from 8.05 per cent to 7.30 per cent also effective from April 7. - Business Line
ЁЯНТ Bank of Maharashtra gets government mandate to collect donations for PM Cares Fund : State-owned Bank of Maharashtra (BoM) on Monday said the government has nominated it for collection of donations for the PM-CARES Fund to help fight COVID-19 pandemic. The contributions can be made by cash, RTGS, NEFT, IMPS, cheques and demand drafts drawn in favour of the PM CARES Fund, the lender said in a release. "One can also remit contributions directly by electronic clearing system (ECS) to the designated savings bank account of Bank of Maharashtra," the release said.The contribution made for the fund is 100 per cent exempted under Section 80G of the Income Tax Act.Last week, Indian Overseas Bank said it has been nominated for collection of donations for PM-Cares Fund. The Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-Cares Fund) was set up on March 28 to raise money for combating the Covid-19 crisis and to provide relief to the affected. Many corporates, defence personnel, employees of PSUs such as Railways, sports persons and Bollywood personalities have announced their contribution to the PM-Cares Fund. The pandemic has so far claimed 109 lives and the number of cases in the country climbed to 4,067 on Monday, according to the Union Health Ministry. - economic times
ЁЯНТ HDFC Bank gets mandate to receive donation for PM Cares Fund : Largest private sector lender HDFC Bank on Sunday said it has received the mandate to collect donations for the PM Cares Fund. "It's an honour to have been given this opportunity. I'd urge all of us to make the most of it and help the government in this gargantuan effort that it is making to ensure minimum disruption to our life," Aditya Puri, its Managing Director said. Users can pay conveniently from their homes using a slew of channels, including debit cards, credit cards and other digital banking channels, it said in a statement.Puri said India has acted in time and exuded confidence that the country will emerge victorious from these trying times.The HDFC group has already committed Rs 150 crore into the fund for the government's relief and rehabilitation measures. - economic times
ЁЯНТ Yes bank can't declare firm NPA for non payment of loan due to coronavirus: HC : The Delhi High Court Monday said that prima facie Yes Bank could not have declared a private company's account as non-performing asset (NPA) for its failure to pay loan installments due to coronavirus pandemic. Justice Sanjeev Sachdeva, who conducted the hearing through video conferencing, took on record the statement made by the counsel for Anant Raj Ltd that it will make payment on or before April 25, the instalment which fell due as on January 1, 2020 along with the interest accrued till the date of payment irrespective of the lockdown position. "Prima facie, I am of the view that the classification of the account of the petitioner (company) as an NPA on March 31, 2020 could not have been done by the respondent (bank). Accordingly, status quo ante is restored qua the classification of the account of petitioner and the account classification as it stood on March 1, 2020 shall stand restored? " the judge said. - economic times
ЁЯНТ Covid-19: Airtel Payments Bank partners with Bharti AXA General Insurance : Airtel Payments Bank has partnered with Bharti AXA General Insurance to offer simple and focused health insurance plans to provide financial protection against Covid-19. Under the partnership, the general insurer has rolled out two different health insurance plans — Bharti AXA Group Health Assure, which offers lumpsum benefit of ₹25,000, and Group Hospital Cash providing daily benefit starting ₹500 per day — to cover protection against the coronavirus. “We are happy to join hands with Airtel Payments Bank with our two, need-based, health insurance plans and leverage the power of digital to maximise the penetration of health insurance in India. We believe that ensuring a safety net against the financial repercussions of Covid-19 or any disease is just as important as exercising precautions against it. This alliance further strengthens our commitment as a responsible protection partner,” Sanjeev Srinivasan, MD and CEO, Bharti AXA General Insurance, said. - Business Line
ЁЯНТ RBL Bank to continue focus on retail and branch banking business : Private sector lender, RBL Bank remains optimistic about its retail and branch business. It is keeping a close watch on the impact of the national lockdown and efforts to prevent further spread of novel coronavirus. “We are very clear that retail will continue to be a focus. The next three months, we won’t be able to invest much because of what’s happening. We have to be mindful of the impact of the pandemic. We are very clear our branch banking will expand,” said Rajeev Ahuja, Executive Director, RBL Bank.The bank will also continue to build on its business and housing loans as the situation normalises though it has cut back on its card issuances. “Our business loans will also continue—those are modest ticket size. We will also continue building our housing business in both semi-urban and urban. That also we will continue building. Those are opportunities, which will continue in my view, and those are sectors, where we have some strength,” Ahuja told BusinessLine, adding that in the medium to long term, the bank remains committed to expanding the entire retail business-- branch footprint, rural and urban consumption and housing.- Business Line
ЁЯНТ Kotak Mahindra Bank customer deposits up 19.6% : Private sector lender Kotak Mahindra Bank registered a near 20 per cent increase in its total customer deposits in the fourth quarter of last fiscal. In a regulatory filing, it said its total customer deposits (excluding deposit certificates) grew by 19.6 per cent to about ₹2.58 lakh crore in the January to March 2020 quarter as compared to ₹2.16 lakh crore in the same period a year ago.Deposit certificates, however, fell to ₹4,400 crore from ₹9,730 crore in the fourth quarter of 2018-19.Net advances grew by 6.7 per cent to ₹2.19 lakh crore in the quarter ended March 31, 2020 as against ₹2.05 lakh crore in the same period a year ago. The bank’s CASA ratio stood at 56.2 per cent as on March 31, 2020 as against 52.5 per cent a year ago. - Business Line
ЁЯНТ Kotak Bank registers sharp growth in customer deposits : Private sector lender Kotak Mahindra Bank has registered a sharp growth in total customer deposits even as some of its peers reported withdrawals in the wake of the YES Bank crisis. In a regulatory filing, Kotak Mahindra Bank said its total customer deposits (excluding deposit certificates) grew by 19.6 per cent to about ₹2.5-lakh crore by March 31, 2020, when compared to ₹2.16-lakh crore as on March 31, 2019. On a quarterly basis, total customer deposits grew by 11.7 per cent in the Janaury to March quarter. Deposit certificates, however, fell to ₹4,400 crore by March 31, 2020, from ₹9,730 crore a year ago. Net advances grew by 6.7 per cent to ₹2.19 lakh crore by March 31, 2020, against ₹2.05-lakh crore a year ago. On a quarterly basis, however, net advances grew just by 1.3 per cent in the fourth quarter of last fiscal. - Business Line
ЁЯНТ Bajaj Finance weighs adequacy of provisioning for large accounts : Bajaj Finance, on Monday, said it is assessing the adequacy of provisioning for identified large accounts and that it will consider enhancing provisions for these accounts. The non-banking finance company, in an exchange filing, also said it is considering one-time accelerated provisioning for Covid-19 to further strengthen its provisioning standards. - Business Line
ЁЯНТ NBFCs seek liquidity support,one-time restructuring of loans : Non-banking finance companies are seeking more relief from the Reserve Bank of India and SEBI, including lines of credit and one-time restructuring of loans. While the RBI has already announced a slew of relief measures, including a three-month moratorium on all term loans in the wake of the national lockdown to prevent rapid spread of Covid19, NBFCs, through the Finance Industry Development Council, have highlighted more issues that require clarity. “However, a feedback from the NBFC industry participants is that banks are highly risk averse to extend new term loans and working capital facilities, and cite exposure cap…,” said FIDC in a fresh representation that this has led to small- and medium-sized NBFCs getting deprived of liquidity support. - Business Line
ЁЯНТ IndusInd Bank taps CPPIB, GIC to raise $500 million : IndusInd Bank and its promoter the Hinduja Group have initiated talks with sovereign wealth funds and pension funds, including Canada’s CPPIB and Singapore’s GIC Pte Ltd, to raise as much as $500 million. This is aimed at bolstering investor confidence amid deterioration of the private lender’s balance sheet and flight of deposits after the Yes Bank Ltd fiasco. More than two-thirds of the bank’s market value has been wiped off since the beginning of March. The stock last traded at ₹313.25 on Friday. “IndusInd Bank has been one of the most impacted banks in the covid-19 market rout. With promoter shareholding almost close to the maximum cap defined by the Reserve Bank of India, they have to bring in external investors to pump in capital. The group is in talks with deep pocketed investors who can help bring in capital and also assuage market concerns," said one of the people cited above, requesting anonymity as the talks are private. - Live Mint
ЁЯНТ SBI Card shuts offices due to lockdown, but critical processes run as usual : SBI Cards and Payment Services, the country's second-largest credit card issuer, has closed all its offices across India after the government announced a 21-day nationwide lockdown till April 14 due to novel coronavirus (COVID-19) pandemic. The shutdown has been in compliance with the advisories issued by Central and State administrations, but critical processes continue as usual, the company said. "Our Business Continuity Plan (BCP) has kicked in and all our critical processes are running as usual, with our workforce supporting the critical business operation s remotely from home," company said in its release. "Digital transformation through our investments in technology over the years has ensured that our core services and operations continue with minimal customer impact while safeguarding our employees, data, systems and assets," it added. - Moneycontrol.com
ЁЯНТ COVID-19: FinMin working on second relief package to revive battered economy : The Finance Ministry is working on a second relief package for the Indian economy hit hard by the coronavirus outbreak and the 21-day nationwide lockdown imposed to curb the contagion, sources said. Last month, the government announced a Rs 1.70 lakh crore relief package in the form of foodgrains and cash transfers for the poor and vulnerable section of the society to help them deal with the hardships caused by the lockdown. Now, the government is working on a stimulus to be given to hard-hit sectors of the economy after the lockdown is lifted, sources said, adding, an announcement is expected in the next few days depending on the severity of the pandemic. - Moneycontrol.com
ЁЯНТ RBI loan moratorium scheme: Banks, HFCs tread cautiously on EMI deferral offer : By now, most banks and Housing Finance Companies (HFCs) have published the details of Reserve Bank of India's (RBI) loan moratorium scheme on their websites. Some banks are also sending direct messages and emails to borrowers to seek their response. It isn't clear what percentage of borrowers have applied for the loan moratorium offer so far. A spokesperson of HDFC Bank said the bank is getting requests from customers but it is early to give a response. A spokesperson of ICICI Bank too said it is difficult to say at this stage. SBI did not respond to a query. - Moneycontrol.com
ЁЯНТ Haryana alerts not to share OTP for EMI loan : Haryana Police issued an advisory requesting citizens to avoid sharing OTPs on phone calls concerning postponing their loan Equal Monthly Installments (EMIs) as cyber criminals may try to siphon off funds from their bank accounts on the pretext of helping them. Giving this information here today, Additional Director General of Police (Law and Order), Mr Navdeep Singh Virk said that a new style of cybercrime come to the fore after the government offered EMI moratorium for individual or business borrowers amid COVID-19 lockdown. Such scamsters have now come up with a new method to dupe gullible citizens by sending them OTPs. Explaining the modus operandi, he said that such fraudsters may pose as bank representatives, requesting the citizens to share their OTPs in order to postpone their loan EMIs. Once the OTP is shared, the amount is fraudulently siphoned away by these scamsters. - economic times
ЁЯНТ Last-mile financiers claim banks reluctant to pass on repayment relief : Transmission trouble appears to be brewing again in India’s lending industry: Only that the latest episode concerns the grace period on loan payments instead of borrowing costs. Last week, the central bank allowed a three-month moratorium on loan repayments in the aftermath of the unprecedented business disruption. But millions of customers that borrow from non-bank lenders and fintech companies could fail to benefit from the Mint Road move if high-street banks lending funds to these last-mile financiers don’t give them similar flexibility in repayments.These small non-banks are claiming that partner lenders — large private sector banks, small finance banks and even larger NBFCs — are reluctant to defer the monthly dues on borrowed funds to these companies even as their customers are expecting their loans to be covered under the moratorium. The three-month grace period for borrowers was among a slew of measures aimed at helping borrowers, especially small businesses, tide through cash-flow challenges engendered by the Covid-19-induced lockdown. - economic times
ЁЯНТ Covid-19 Impact: Banks to witness spike in credit costs, non-performing assets in 2020 : Banks in the country are likely to witness a spike in their non-performing assets ratio by 1.9 per cent and credit cost ratios by 130 basis point in 2020, following the economic slowdown on account of COVID-19 crisis, says a report. In its report titled "For Asia-Pacific Banks, COVID-19 Crisis Could Add USD 300 Billion To Credit Costs" S&P Global Ratings said, it expects the non-performing assets (NPA) ratio for the Chinese banking sector to increase by about 2 per cent in 2020, and credit losses, to increase by about 100 basis points. On India, the report said "the NPA ratio in India is likely to fare similarly to China's (1.9 per cent 2 per cent) but the credit costs ratios could be worse, increasing by about 130 basis points," the rating agency's credit analyst Gavin Gunning said in the report. Gunning said there are concerns that the coronavirus will spread faster, further, and for longer. "This will deepen the economic pain we already anticipate for 2020. Financing conditions may likewise sour as investors become more risk averse. This would hit bank credit," he said. The report noted that an additional USD 300 billion spike in lenders' credit costs and a USD 600 billion increase in (NPAs) will occur in 2020 due to the adverse impact of coronavirus pandemic. - economic times
ЁЯНТ Self Help Group potential can boost rural production and consumption : In the last Rs 1.76 lakh crore stimulus package announced by the union finance minister to fight COVID 19, one of the announcements included doubling collateral free loans to women Self Help Groups (SHGs) from Rs 10 lakh to Rs 20 lakh. This will help 63 lakh SHGs covering 7 crore families, as per the announcement. The measure announced has the potential to have a substantial impact on the rural economy. The following example will indicate how a well-supported SHG framework can be a game changer. Face masks, the first shield against current COVID 19 is in short supply. As per report of ministry of rural development, more than 132 lakh masks have been produced by 14,522 SHGs involving 65,936 members in 399 districts, spread across 24 states of India, in just a period of 15 days from March 15 to March 30, 2020. Further, as these are being produced at decentralised way in various centres across all the states of India in 399 districts, i.e. more than half of all districts across India. The masks will reach intended target group faster, without much logistics and transportation issue. This is the power of SHGs which can play a significant role in India. - economic times
ЁЯНТ Be transparent in rewards to agents: IRDAI : IRDAI has asked insurers to ensure transparency in payment of rewards to insurers. “It is observed that the board approved policy for the payment of rewards to insurance agents and intermediaries lacks transparency,” TL Alamelu, Member - Distribution, IRDAI, said in a circular sent to all insurers. The policy of rewards should specify a specific portion or rewards reasonably allotted to commission/remuneration to the individual insurance agents and intermediates subject to an overall limit in a consistent manner, she added. - Business Line
ЁЯНТ Digital payments technology adoption in APAC yet to gain momentum : Digital payments technology adoption in Asia-Pacific remains in a nascent stage, and unlike digital payment methods used by consumers in which streamlined checkout processes accept instant payment using credit cards, the bulk of B2B payments is still tied to paper checks and manual processes, according to a latest report from ResearchAndMarkets.com. The future of digital payments is driven by applications and innovations created through partnerships and collaborations among industry stakeholders that are driving digital transformation. Asia-Pacific's B2B payments market is being spurred by a growing B2B eCommerce market and by the appearance of financial technology (fintech) participants that recognize increasing market opportunities. With the integration of technologies such as a hyperledger framework, open API, and encryption, enterprises are heading towards an era that is borderless, paperless, reliable, and characterized by secure digital payments via a seamless process with minimal disruption. - Moneycontrol.com.
Have a Good day.. " ЁЯМ╗ЁЯСйЁЯСйЁЯСзЁЯСжрдк
☕ 07.04.2020: Today's Banking / Financial News at a Glance
ЁЯНТ With RBI moratorium in place, Q4 results likely to be stable for banks : The three-month loan moratorium by the Reserve Bank of India is likely to give a reprieve to banks, which will start announcing their fourth quarter results later this month. But with the national lockdown and the Covid19 pandemic impacting businesses, the road ahead could be rocky. “The fourth quarter should be uneventful, but it is more that preparing for the next quarter is more important. Asset quality is likely to be largely stable,” said Sanjay Agarwal, Senior Director, CARE Ratings. “With a moratorium on loan repayment, we are less inclined to attach serious importance to the reported earnings of banks for this and the next quarter. With that framework in mind, we expect banks to show healthy earnings growth, primarily due to lower provisions, lower tax rate, and higher treasury income,” said Kotak Institutional Equities in a report. - Business LIne
ЁЯНТ Covid-19: Amid economic slump, banks' credit costs, NPAs to rise in 2020 ; Banks in the country are likely to witness a spike in their non-performing assets ratio by 1.9 per cent and credit cost ratios by 130 basis point in 2020, following the economic slowdown on account of COVID-19 crisis, says a report. In its report titled "For Asia-Pacific Banks, COVID-19 Crisis Could Add USD 300 Billion To Credit Costs" S&P Global Ratings said, it expects the non-performing assets (NPA) ratio for the Chinese banking sector to increase by about 2 per cent in 2020, and credit losses, to increase by about 100 basis points. On India, the report said "the NPA ratio in India is likely to fare similarly to China's (1.9 per cent 2 per cent) but the credit costs ratios could be worse, increasing by about 130 basis points," the rating agency's credit analyst Gavin Gunning said in the report. - Business Stanard
ЁЯНТ Canara Bank trims MCLR rates on loans, advances across all tenors : Canara Bank, a Bengaluru-based public sector bank, has reduced its marginal cost of funds based lending rate (MCLR) on loans/advances across all tenors with effect from April 7 for the amalgamated entity (Canara-Syndicate), said a release from the bank. The bank has reduced interest rate by 35 basis points under one-year tenor; 30 basis points under six-months tenor; 20 basis points under three-months tenor and 15 basis points under Overnight and one-month tenors. Accordingly, the tenor linked MCLRs of the bank shall be as under with effect from April 7: Overnight MCLR – interest rate 7.50 per cent. One-month MCLR – interest rate 7.50 per cent. Three-month MCLR – interest rate 7.75 per cent. Six month MCLR – interest rate 7.80 per cent. And one year MCLR – interest rate 7.85 per cent. Repo Linked Lending Rate (RLLR) has been reduced by 75 basis points from 8.05 per cent to 7.30 per cent also effective from April 7. - Business Line
ЁЯНТ Bank of Maharashtra gets government mandate to collect donations for PM Cares Fund : State-owned Bank of Maharashtra (BoM) on Monday said the government has nominated it for collection of donations for the PM-CARES Fund to help fight COVID-19 pandemic. The contributions can be made by cash, RTGS, NEFT, IMPS, cheques and demand drafts drawn in favour of the PM CARES Fund, the lender said in a release. "One can also remit contributions directly by electronic clearing system (ECS) to the designated savings bank account of Bank of Maharashtra," the release said.The contribution made for the fund is 100 per cent exempted under Section 80G of the Income Tax Act.Last week, Indian Overseas Bank said it has been nominated for collection of donations for PM-Cares Fund. The Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-Cares Fund) was set up on March 28 to raise money for combating the Covid-19 crisis and to provide relief to the affected. Many corporates, defence personnel, employees of PSUs such as Railways, sports persons and Bollywood personalities have announced their contribution to the PM-Cares Fund. The pandemic has so far claimed 109 lives and the number of cases in the country climbed to 4,067 on Monday, according to the Union Health Ministry. - economic times
ЁЯНТ HDFC Bank gets mandate to receive donation for PM Cares Fund : Largest private sector lender HDFC Bank on Sunday said it has received the mandate to collect donations for the PM Cares Fund. "It's an honour to have been given this opportunity. I'd urge all of us to make the most of it and help the government in this gargantuan effort that it is making to ensure minimum disruption to our life," Aditya Puri, its Managing Director said. Users can pay conveniently from their homes using a slew of channels, including debit cards, credit cards and other digital banking channels, it said in a statement.Puri said India has acted in time and exuded confidence that the country will emerge victorious from these trying times.The HDFC group has already committed Rs 150 crore into the fund for the government's relief and rehabilitation measures. - economic times
ЁЯНТ Yes bank can't declare firm NPA for non payment of loan due to coronavirus: HC : The Delhi High Court Monday said that prima facie Yes Bank could not have declared a private company's account as non-performing asset (NPA) for its failure to pay loan installments due to coronavirus pandemic. Justice Sanjeev Sachdeva, who conducted the hearing through video conferencing, took on record the statement made by the counsel for Anant Raj Ltd that it will make payment on or before April 25, the instalment which fell due as on January 1, 2020 along with the interest accrued till the date of payment irrespective of the lockdown position. "Prima facie, I am of the view that the classification of the account of the petitioner (company) as an NPA on March 31, 2020 could not have been done by the respondent (bank). Accordingly, status quo ante is restored qua the classification of the account of petitioner and the account classification as it stood on March 1, 2020 shall stand restored? " the judge said. - economic times
ЁЯНТ Covid-19: Airtel Payments Bank partners with Bharti AXA General Insurance : Airtel Payments Bank has partnered with Bharti AXA General Insurance to offer simple and focused health insurance plans to provide financial protection against Covid-19. Under the partnership, the general insurer has rolled out two different health insurance plans — Bharti AXA Group Health Assure, which offers lumpsum benefit of ₹25,000, and Group Hospital Cash providing daily benefit starting ₹500 per day — to cover protection against the coronavirus. “We are happy to join hands with Airtel Payments Bank with our two, need-based, health insurance plans and leverage the power of digital to maximise the penetration of health insurance in India. We believe that ensuring a safety net against the financial repercussions of Covid-19 or any disease is just as important as exercising precautions against it. This alliance further strengthens our commitment as a responsible protection partner,” Sanjeev Srinivasan, MD and CEO, Bharti AXA General Insurance, said. - Business Line
ЁЯНТ RBL Bank to continue focus on retail and branch banking business : Private sector lender, RBL Bank remains optimistic about its retail and branch business. It is keeping a close watch on the impact of the national lockdown and efforts to prevent further spread of novel coronavirus. “We are very clear that retail will continue to be a focus. The next three months, we won’t be able to invest much because of what’s happening. We have to be mindful of the impact of the pandemic. We are very clear our branch banking will expand,” said Rajeev Ahuja, Executive Director, RBL Bank.The bank will also continue to build on its business and housing loans as the situation normalises though it has cut back on its card issuances. “Our business loans will also continue—those are modest ticket size. We will also continue building our housing business in both semi-urban and urban. That also we will continue building. Those are opportunities, which will continue in my view, and those are sectors, where we have some strength,” Ahuja told BusinessLine, adding that in the medium to long term, the bank remains committed to expanding the entire retail business-- branch footprint, rural and urban consumption and housing.- Business Line
ЁЯНТ Kotak Mahindra Bank customer deposits up 19.6% : Private sector lender Kotak Mahindra Bank registered a near 20 per cent increase in its total customer deposits in the fourth quarter of last fiscal. In a regulatory filing, it said its total customer deposits (excluding deposit certificates) grew by 19.6 per cent to about ₹2.58 lakh crore in the January to March 2020 quarter as compared to ₹2.16 lakh crore in the same period a year ago.Deposit certificates, however, fell to ₹4,400 crore from ₹9,730 crore in the fourth quarter of 2018-19.Net advances grew by 6.7 per cent to ₹2.19 lakh crore in the quarter ended March 31, 2020 as against ₹2.05 lakh crore in the same period a year ago. The bank’s CASA ratio stood at 56.2 per cent as on March 31, 2020 as against 52.5 per cent a year ago. - Business Line
ЁЯНТ Kotak Bank registers sharp growth in customer deposits : Private sector lender Kotak Mahindra Bank has registered a sharp growth in total customer deposits even as some of its peers reported withdrawals in the wake of the YES Bank crisis. In a regulatory filing, Kotak Mahindra Bank said its total customer deposits (excluding deposit certificates) grew by 19.6 per cent to about ₹2.5-lakh crore by March 31, 2020, when compared to ₹2.16-lakh crore as on March 31, 2019. On a quarterly basis, total customer deposits grew by 11.7 per cent in the Janaury to March quarter. Deposit certificates, however, fell to ₹4,400 crore by March 31, 2020, from ₹9,730 crore a year ago. Net advances grew by 6.7 per cent to ₹2.19 lakh crore by March 31, 2020, against ₹2.05-lakh crore a year ago. On a quarterly basis, however, net advances grew just by 1.3 per cent in the fourth quarter of last fiscal. - Business Line
ЁЯНТ Bajaj Finance weighs adequacy of provisioning for large accounts : Bajaj Finance, on Monday, said it is assessing the adequacy of provisioning for identified large accounts and that it will consider enhancing provisions for these accounts. The non-banking finance company, in an exchange filing, also said it is considering one-time accelerated provisioning for Covid-19 to further strengthen its provisioning standards. - Business Line
ЁЯНТ NBFCs seek liquidity support,one-time restructuring of loans : Non-banking finance companies are seeking more relief from the Reserve Bank of India and SEBI, including lines of credit and one-time restructuring of loans. While the RBI has already announced a slew of relief measures, including a three-month moratorium on all term loans in the wake of the national lockdown to prevent rapid spread of Covid19, NBFCs, through the Finance Industry Development Council, have highlighted more issues that require clarity. “However, a feedback from the NBFC industry participants is that banks are highly risk averse to extend new term loans and working capital facilities, and cite exposure cap…,” said FIDC in a fresh representation that this has led to small- and medium-sized NBFCs getting deprived of liquidity support. - Business Line
ЁЯНТ IndusInd Bank taps CPPIB, GIC to raise $500 million : IndusInd Bank and its promoter the Hinduja Group have initiated talks with sovereign wealth funds and pension funds, including Canada’s CPPIB and Singapore’s GIC Pte Ltd, to raise as much as $500 million. This is aimed at bolstering investor confidence amid deterioration of the private lender’s balance sheet and flight of deposits after the Yes Bank Ltd fiasco. More than two-thirds of the bank’s market value has been wiped off since the beginning of March. The stock last traded at ₹313.25 on Friday. “IndusInd Bank has been one of the most impacted banks in the covid-19 market rout. With promoter shareholding almost close to the maximum cap defined by the Reserve Bank of India, they have to bring in external investors to pump in capital. The group is in talks with deep pocketed investors who can help bring in capital and also assuage market concerns," said one of the people cited above, requesting anonymity as the talks are private. - Live Mint
ЁЯНТ SBI Card shuts offices due to lockdown, but critical processes run as usual : SBI Cards and Payment Services, the country's second-largest credit card issuer, has closed all its offices across India after the government announced a 21-day nationwide lockdown till April 14 due to novel coronavirus (COVID-19) pandemic. The shutdown has been in compliance with the advisories issued by Central and State administrations, but critical processes continue as usual, the company said. "Our Business Continuity Plan (BCP) has kicked in and all our critical processes are running as usual, with our workforce supporting the critical business operation s remotely from home," company said in its release. "Digital transformation through our investments in technology over the years has ensured that our core services and operations continue with minimal customer impact while safeguarding our employees, data, systems and assets," it added. - Moneycontrol.com
ЁЯНТ COVID-19: FinMin working on second relief package to revive battered economy : The Finance Ministry is working on a second relief package for the Indian economy hit hard by the coronavirus outbreak and the 21-day nationwide lockdown imposed to curb the contagion, sources said. Last month, the government announced a Rs 1.70 lakh crore relief package in the form of foodgrains and cash transfers for the poor and vulnerable section of the society to help them deal with the hardships caused by the lockdown. Now, the government is working on a stimulus to be given to hard-hit sectors of the economy after the lockdown is lifted, sources said, adding, an announcement is expected in the next few days depending on the severity of the pandemic. - Moneycontrol.com
ЁЯНТ RBI loan moratorium scheme: Banks, HFCs tread cautiously on EMI deferral offer : By now, most banks and Housing Finance Companies (HFCs) have published the details of Reserve Bank of India's (RBI) loan moratorium scheme on their websites. Some banks are also sending direct messages and emails to borrowers to seek their response. It isn't clear what percentage of borrowers have applied for the loan moratorium offer so far. A spokesperson of HDFC Bank said the bank is getting requests from customers but it is early to give a response. A spokesperson of ICICI Bank too said it is difficult to say at this stage. SBI did not respond to a query. - Moneycontrol.com
ЁЯНТ Haryana alerts not to share OTP for EMI loan : Haryana Police issued an advisory requesting citizens to avoid sharing OTPs on phone calls concerning postponing their loan Equal Monthly Installments (EMIs) as cyber criminals may try to siphon off funds from their bank accounts on the pretext of helping them. Giving this information here today, Additional Director General of Police (Law and Order), Mr Navdeep Singh Virk said that a new style of cybercrime come to the fore after the government offered EMI moratorium for individual or business borrowers amid COVID-19 lockdown. Such scamsters have now come up with a new method to dupe gullible citizens by sending them OTPs. Explaining the modus operandi, he said that such fraudsters may pose as bank representatives, requesting the citizens to share their OTPs in order to postpone their loan EMIs. Once the OTP is shared, the amount is fraudulently siphoned away by these scamsters. - economic times
ЁЯНТ Last-mile financiers claim banks reluctant to pass on repayment relief : Transmission trouble appears to be brewing again in India’s lending industry: Only that the latest episode concerns the grace period on loan payments instead of borrowing costs. Last week, the central bank allowed a three-month moratorium on loan repayments in the aftermath of the unprecedented business disruption. But millions of customers that borrow from non-bank lenders and fintech companies could fail to benefit from the Mint Road move if high-street banks lending funds to these last-mile financiers don’t give them similar flexibility in repayments.These small non-banks are claiming that partner lenders — large private sector banks, small finance banks and even larger NBFCs — are reluctant to defer the monthly dues on borrowed funds to these companies even as their customers are expecting their loans to be covered under the moratorium. The three-month grace period for borrowers was among a slew of measures aimed at helping borrowers, especially small businesses, tide through cash-flow challenges engendered by the Covid-19-induced lockdown. - economic times
ЁЯНТ Covid-19 Impact: Banks to witness spike in credit costs, non-performing assets in 2020 : Banks in the country are likely to witness a spike in their non-performing assets ratio by 1.9 per cent and credit cost ratios by 130 basis point in 2020, following the economic slowdown on account of COVID-19 crisis, says a report. In its report titled "For Asia-Pacific Banks, COVID-19 Crisis Could Add USD 300 Billion To Credit Costs" S&P Global Ratings said, it expects the non-performing assets (NPA) ratio for the Chinese banking sector to increase by about 2 per cent in 2020, and credit losses, to increase by about 100 basis points. On India, the report said "the NPA ratio in India is likely to fare similarly to China's (1.9 per cent 2 per cent) but the credit costs ratios could be worse, increasing by about 130 basis points," the rating agency's credit analyst Gavin Gunning said in the report. Gunning said there are concerns that the coronavirus will spread faster, further, and for longer. "This will deepen the economic pain we already anticipate for 2020. Financing conditions may likewise sour as investors become more risk averse. This would hit bank credit," he said. The report noted that an additional USD 300 billion spike in lenders' credit costs and a USD 600 billion increase in (NPAs) will occur in 2020 due to the adverse impact of coronavirus pandemic. - economic times
ЁЯНТ Self Help Group potential can boost rural production and consumption : In the last Rs 1.76 lakh crore stimulus package announced by the union finance minister to fight COVID 19, one of the announcements included doubling collateral free loans to women Self Help Groups (SHGs) from Rs 10 lakh to Rs 20 lakh. This will help 63 lakh SHGs covering 7 crore families, as per the announcement. The measure announced has the potential to have a substantial impact on the rural economy. The following example will indicate how a well-supported SHG framework can be a game changer. Face masks, the first shield against current COVID 19 is in short supply. As per report of ministry of rural development, more than 132 lakh masks have been produced by 14,522 SHGs involving 65,936 members in 399 districts, spread across 24 states of India, in just a period of 15 days from March 15 to March 30, 2020. Further, as these are being produced at decentralised way in various centres across all the states of India in 399 districts, i.e. more than half of all districts across India. The masks will reach intended target group faster, without much logistics and transportation issue. This is the power of SHGs which can play a significant role in India. - economic times
ЁЯНТ Be transparent in rewards to agents: IRDAI : IRDAI has asked insurers to ensure transparency in payment of rewards to insurers. “It is observed that the board approved policy for the payment of rewards to insurance agents and intermediaries lacks transparency,” TL Alamelu, Member - Distribution, IRDAI, said in a circular sent to all insurers. The policy of rewards should specify a specific portion or rewards reasonably allotted to commission/remuneration to the individual insurance agents and intermediates subject to an overall limit in a consistent manner, she added. - Business Line
ЁЯНТ Digital payments technology adoption in APAC yet to gain momentum : Digital payments technology adoption in Asia-Pacific remains in a nascent stage, and unlike digital payment methods used by consumers in which streamlined checkout processes accept instant payment using credit cards, the bulk of B2B payments is still tied to paper checks and manual processes, according to a latest report from ResearchAndMarkets.com. The future of digital payments is driven by applications and innovations created through partnerships and collaborations among industry stakeholders that are driving digital transformation. Asia-Pacific's B2B payments market is being spurred by a growing B2B eCommerce market and by the appearance of financial technology (fintech) participants that recognize increasing market opportunities. With the integration of technologies such as a hyperledger framework, open API, and encryption, enterprises are heading towards an era that is borderless, paperless, reliable, and characterized by secure digital payments via a seamless process with minimal disruption. - Moneycontrol.com.
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