Abhijit Lele

All stories by Abhijit Lele

Covid-19: Remittances from West Asia hit in FY21

Covid-19: Remittances from West Asia hit in FY21

Rediff.com25 Jul 2022

The money sent home by Indians from West Asian countries took a beating in 2020-21 due to the pandemic. On the other hand, overseas Indians in advanced nations - the United States, United Kingdom and Singapore - emerged as important sources of remittance, according to a Reserve Bank of India (RBI) survey. Indians working in informal sectors in West Asia seem to have been impacted the most due to the lockdowns and subdued crude oil prices as well as slower pace of migration in recent years.

Foreign travel top reason why India's overseas remittances doubled

Foreign travel top reason why India's overseas remittances doubled

Rediff.com18 Jun 2022

Spending on international travel tripled in April 2022 as Covid-related curbs were eased in various countries in FY22.

Taken An SBI Loan, But Not Repaid It?

Taken An SBI Loan, But Not Repaid It?

Rediff.com6 Jun 2022

There are loans to salaried people where the borrower is employed, but has failed to make repayment. Such loans would be identified and sold in a pool to ARCs.

Flow of money into NRI deposits moderates to $3.23 bn in FY22

Flow of money into NRI deposits moderates to $3.23 bn in FY22

Rediff.com26 May 2022

Flow of money into non-resident Indian (NRI) deposits moderated sharply to $3.23 billion in April 2021-March 2022 from $7.36 billion in the same period of the previous year. Outstanding deposits have also gone down to $139.02 billion at the end of March 2022. This compares to $141.89 billion a year ago, according to Reserve Bank of India (RBI) data.

Russia-Ukraine war may expose 42% India firms to significant risks: Moody's

Russia-Ukraine war may expose 42% India firms to significant risks: Moody's

Rediff.com26 Apr 2022

Global rating agency Moody's on Monday said the high commodity prices and supply chain disruptions due to further escalation in the Russia-Ukraine crisis could expose about 42 per cent of rated Indian companies to significant risks. They are mainly in the oil and gas and automotive sectors. The impact may be seen under two scenarios: first, revised base line and second being downside economic scenarios incorporating a global recession and a more severe liquidity squeeze, it said. The military conflict between Russia and Ukraine is impacting companies in Asia Pacific, adding to existing challenges from supply chain disruption and the coronavirus pandemic.

Two years on, is Yes Bank finally out of the woods?

Two years on, is Yes Bank finally out of the woods?

Rediff.com5 Apr 2022

Transiting from "survival mode", which took most of the management time in FY21, the bank has been able to take a long-term view in terms of growth and preparing technology in the past 12 months.

SBI plans to position YONO as complete digital bank

SBI plans to position YONO as complete digital bank

Rediff.com11 Mar 2022

The country's largest lender State Bank of India (SBI) will revamp its banking application (app) YONO and position it as a complete digital bank (DB) under a new rubric 'Only YONO' for enhancing customer experience and ease of use. The bank plans to bring in a consultant to help draw up the project plan, keeping in mind business goals for the next five years. With 54 million monthly active users (MAUs), SBI YONO has seen growth of over 35 per cent in MAUs in 2021.

Zombie firms spoiling India's economic recovery: RBI study

Zombie firms spoiling India's economic recovery: RBI study

Rediff.com17 Feb 2022

Zombies a.k.a perpetually loss-making firms in India seem to have dampened the effectiveness of monetary policy at the margin as they use borrowed resources more for their survival than for undertaking new investment, according to a RBI study. The monetary policy does not hinder the creative destruction process by misallocating credit flows to zombies during periods of economic slowdown, showed a study by officers of Reserve Bank of India. It has been published in RBI's bulletin for February 2022. In India, zombie firms are estimated to account for about 10 per cent of total debt of the non-financial corporate sector.

RBI may not tinker with rates in FY22

RBI may not tinker with rates in FY22

Rediff.com6 Jan 2022

The Reserve Bank of India (RBI) will stay away from changing key rates - including the reverse repo rate - this fiscal in the backdrop of Omicron. However, it will continue to shape the rate movements through liquidity market operations. Soumya Kanti Ghosh, group chief economic advisor, State Bank of India, said whether Omicron surge or not, there is not going to be any hike this year. However, the central bank may continue to shape rates through market operations.

Asset quality of NBFCs worsens in H1 amid pandemic

Asset quality of NBFCs worsens in H1 amid pandemic

Rediff.com29 Dec 2021

The asset quality of non-banking financial companies (NBFCs) deteriorated in April-September 2021 (H1FY22) owing to the second wave of the pandemic. Their gross non-performing assets (NPAs) rose to 6.8 per cent in September 2021 from 6 per cent in March 2021. The Reserve Bank of India's (RBI's) annual Trend and Progress report (FY21) said the sector might have to grapple with higher delinquencies as and when policy measures unwound. The pandemic posed significant challenges to NBFCs during the first wave (2020) also.

RBL's chief tries to allay concerns on bank's health

RBL's chief tries to allay concerns on bank's health

Rediff.com27 Dec 2021

RBL Bank's interim chief executive officer (CEO) and managing director (MD) Rajeev Ahuja on Sunday tried to allay concerns around the health of the bank. He said events during the weekend are not linked to RBL's asset quality. The bank said Vishwavir Ahuja, its managing director (MD) and chief executive officer (CEO), had on Saturday proceeded on leave with immediate effect on medical grounds.

Rules on banks' investment portfolios to be revamped first time in 21 years

Rules on banks' investment portfolios to be revamped first time in 21 years

Rediff.com10 Dec 2021

For the first time in 21 years, the Reserve Bank of India (RBI) will revise norms for investment portfolios of commercial banks to reflect changes in global standards on valuation and measurement, and progress in the domestic market. This could pave the way for banks to transition to the new accounting standards (Ind-AS). The outstanding investment portfolio of commercial banks was at Rs 45.84 trillion as of November 19 this year.

Another Anil Ambani firm in big trouble

Another Anil Ambani firm in big trouble

Rediff.com2 Dec 2021

Reliance Power (RPower) has defaulted on payment of interest worth Rs 1.17 crore to DBS Bank India and Rs 44 lakh to IDBI Bank. It failed to pay up interest on October 30, 2021. The firm, part of the Anil Ambani-promoted Reliance group, in filing with BSE, said it has term loans and working capital arrangements with three lenders - YES Bank, IDBI Bank and DBS. Its stock closed 1.41 per cent lower at Rs 12.6 per share on the BSE on December 1. About exposure of YES Bank, there is a 'standstill' applicable till December 26, 2021.

8 banks recast exposures worth Rs 27,000 cr in OTR 2.0

8 banks recast exposures worth Rs 27,000 cr in OTR 2.0

Rediff.com2 Nov 2021

Personal loans have about 80 per cent share in exposures restructured under regulatory package 2.0 by eight banks who have declared results for the second quarter. The remaining 20 per cent are loans to individuals used for business and credit to MSMEs. The total recast exposure of these banks under One Time Restructuring (OTR 2.0) was Rs 27,708 crore.

Superseding boards of two Srei cos won't roil markets

Superseding boards of two Srei cos won't roil markets

Rediff.com13 Oct 2021

Superseding the boards of two non-banking financial companies (NBFCs) in the Srei group will neither create liquidity challenges for sound entities, nor build systemic crises because the markets have factored in the problems with the Kolkata-based firms. Such regulatory steps will help in making the NBFC space more robust, bankers and market experts said. The action should have begun earlier because the Reserve Bank of India (RBI) had done a special audit last financial year and asked the group to make provisions for assets considered stressed, analysts said.

Depositors of 21 stressed co-op banks to get Rs 5 lakh by Nov

Depositors of 21 stressed co-op banks to get Rs 5 lakh by Nov

Rediff.com23 Sep 2021

The Deposit Insurance and Credit Guarantee Corporation (DICGC) will pay the depositors of 21 stressed cooperative banks, including the Punjab & Maharashtra Co-Operative Bank (PMC Bank), up to Rs 5 lakh within 90 days. The Reserve Bank of India (RBI) had imposed restrictions on the withdrawal of deposits from these banks. Of the 21 banks, 11 are from Maharashtra, five from Karnataka, and one each from Uttar Pradesh, Kerala, Rajasthan, Madhya Pradesh, and Punjab.

HDFC Bank writes off Rs 3,100-crore NPAs in Q1

HDFC Bank writes off Rs 3,100-crore NPAs in Q1

Rediff.com19 Jul 2021

The country's largest private lender HDFC Bank's bad-loan write-offs doubled to Rs 3,100 crore in the April-June quarter (first quarter, or Q1) of 2021-22 (FY22), from the level of Rs 1,500 crore in the same quarter of 2020-21 (Q1FY21). It also offloaded its non-performing assets (NPAs) amounting to Rs 1,800 crore in Q1FY22 to maintain a robust asset quality profile. It had jettisoned NPAs worth Rs 1,000 crore in the last quarter. Lenders knock off stress assets from books after making full provisions. Their right to recover dues from delinquent borrowers remains intact after the write-downs.

'We'll have to live with branches for some time'

'We'll have to live with branches for some time'

Rediff.com15 Jul 2021

'67 per cent of our transactions happen digitally and about 93 per cent of transactions happen outside the branch.' 'Despite that, there is ample scope for promoting banking-related activities in branches.' 'So, for some time, we will have to, probably, live with the same structure.'

Carlyle Group to acquire controlling stake in PNB Housing Finance

Carlyle Group to acquire controlling stake in PNB Housing Finance

Rediff.com3 Jun 2021

Private equity firm Carlyle Group and associates will acquire a controlling stake of over 50 per cent in PNB Housing Finance by investing in the Rs 4,000 crore preferential issue of equity and warrants of the Delhi-based mortgage lender. After the proposed transactions, expected to be completed by January 1, 2022, Carlyle will also have the right to nominate the chairperson of PNB Housing Finance (PNB HF). This right will continue as long as it holds at least 40 per cent of the share capital on a fully diluted basis.

IDBI Bank back in black in FY21 after five years

IDBI Bank back in black in FY21 after five years

Rediff.com5 May 2021

The bank expects to grow loan book by 10 per cent in the current financial year with calibrated exposure to corporate accounts and thrust on the retail segment.

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