Frauds can have immediate impact on the banks' financials and can also cause a systemic risk in extreme cases
Monetary transmission has been an issue for the Indian banking sector.
The Reserve Bank of india is likely to tell state-run United Bank of India (UBI), which has seen erosion of capital due to bad loans and higher provisioning to implement prompt corrective action.
Raghuram Rajan said on Friday it is not clear India needs a so-called "bad bank.
RBI Governor Shaktikanta Das on Wednesday defended the Reserve Bank's handling of the price situation, saying acting prematurely on inflation would have exerted a heavy cost on the economy and citizens. Acknowledging that the inflation target has been missed, Das said the RBI decided to support the economy by not introducing a rate hike in face of a spike in inflation. "We prevented a 'complete collapse of the economy' by keeping rates lower and stayed away from premature tightening," Das said speaking at the annual FIBAC conference of bankers in Mumbai.
The Ministry of External Affairs (MEA) on March 17 had announced that State Bank of India (SBI) would extend a term loan of $1 billion to Sri Lanka, fully guaranteed by the Indian government, and this was part of India's financial aid to the troubled island nation. Ministry of External Affairs (MEA) spokesperson Arindam Bagchi was quoted saying by news agency PTI that the loan would be used for importing food, medicines, and other essential items. "India has always stood with the people of Sri Lanka and we will continue to extend all possible support at this juncture.
These businessmen represent the top five firms that have taken loans from the crisis-hit Yes Bank and these debts were either in the red or were stressed, officials said.
All documents and data were safe as there was a Disaster Recovery Centre for every bank
For that to happen, Moitra's much followed speeches should be heard outside Parliament so that the PR spins of the ruling dispensation are countered with informed debate, argues Shyam G Menon.
Five Indian-origin women executives have made it to Barron's prestigious annual '100 Most Influential Women in US Finance' list for achieving positions of prominence in the financial services industry and helping shape its future. Barron's is a sister publication of the Wall Street Journal, published by Dow Jones and Company. "The list honours established and emerging leaders in financial services, the corporate world, nonprofit organisations, and government," the magazine said in a press release.
Card fees likely to increase to offset replacement cost.
Disgruntled executives are already pinning hopes on the new banks, too.
New regime on loans to one party to kick in by Apr 2019.
As the clean-up has taken hold, loan growth slipped to 10.7 per cent in the last fiscal
Consolidation will help banks derive economies of scale, but integration will not be easy.
The overarching talking point will be the reluctance on the part of private banks to loosen their purse strings and increase lending substantially, even as the central bank believes there is adequate liquidity within the system.
Most legal experts indicate the former ICICI Bank CEO will take the matter to court. Her contention will be she can't be fired and called guilty without proof.
Business is down to such an extent that last year these firms could not even meet RBI's capital norm of Rs 50 million for partnerships and Rs 100 million for public and private firms in this line of business.
Instructions were issued on holding loan camps in the last week of September.
Banks' loans are set to grow at the slowest pace in a decade this financial year, as companies continue to shy away from borrowing in the current uncertain macro-economic environment.
The finance minister asked lenders to identify eligible borrowers and reach out to them and urged for quick implementation of a sustained resolution plan for the revival of every viable business.
Many firms' debt far exceeds their market capital.
As per the survey conducted by Swiss Bankers Association, protection of financial privacy remains important for people in the country with 86 per cent of respondents believing that the financial details of bank clients must be protected from third parties.
Bankers on Wednesday asserted that interest rates were unlikely to go up in the immediate future. They said this on the eve of a crucial meeting of state-owned bank chiefs with Finance Minister P Chidambaram, where the government is expected to signal a bias towards a soft interest rate regime.
Any revision in loan rates would be visible next month.
Reserve Bank of India Governor Raghuram Rajan had said recently that there was "no need" to set up a separate bad bank to deal with stressed assets of public sector lenders.
'It's a toss-up between a fire sale of equity or merger with a strong bank,' points out Tamal Bandyopadhyay.
Despite Indian economy recovering, there is very little room for loan growth, say bankers.
With the international markets facing uncertainty after Russia invaded Ukraine and Western nations retaliated with sanctions, Indian companies are putting their international fundraising plans on hold as they wait for the markets to recover. Bankers said apart from the geopolitical crisis, international rates are hardening in anticipation of interest rate hikes by the US Federal Reserve to control rising prices in the US. The Ukraine situation has implications for the market. In such a situation, international investors try to shift to safe haven assets by exiting from emerging markets.
Employees of public sector banks have called off the strike planned on February 25 and 26
The government had announced a waiver of over Rs 60,000 crore (Rs 600 billion) in advances to farm sector as a one time measure in the budget of 2008 following stress in the rural sector.
For all its claims to economic glory, the majority of India's population lives vulnerable lives, a situation that has only worsened over the past 15 years, to the extent that the government now fears to release economic data or even conduct a proper Census, notes Rathin Roy.
K V Kamath to take charge of BRICS Bank in July.
Do you save more money if you use bank portals for online shopping?
Prefer proposal for airline to float bonds guaranteed by govt.
'What the RBI is doing is trying to catch the mouse when they have to catch the tiger.'
"I have no personal grudge against Ravinder Reddy, the rural bank manager. It was an unfortunate incident. The truth would come out later. However, I tender unconditional apology to him and bankers to put an end to this. I don't want to put the people to inconvenience due to the bank union's agitation," Jagannath told reporters in Delhi.
The latest fraud is a failure of management supervision and accountability, as no bad debt was generated and no cash was involved
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