Frauds can have immediate impact on the banks' financials and can also cause a systemic risk in extreme cases
Lenders ask RBI to ensure cheaper credit for infrastructure sector. Banks say while hardening of rates may be required to combat inflation, even a 50 basis point rise could render many projects unviable. In a meeting with RBI, bankers factored in the impact of higher interest rates on most sectors as a part of the inflation management drive but indicated that the government & the central bank should take steps to ensure cheaper credit for building roads, power plants & ports.
Monetary transmission has been an issue for the Indian banking sector.
Raghuram Rajan said on Friday it is not clear India needs a so-called "bad bank.
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.
All documents and data were safe as there was a Disaster Recovery Centre for every bank
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.
New regime on loans to one party to kick in by Apr 2019.
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.
Card fees likely to increase to offset replacement cost.
As the clean-up has taken hold, loan growth slipped to 10.7 per cent in the last fiscal
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.
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.
Disgruntled executives are already pinning hopes on the new banks, too.
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.
Consolidation will help banks derive economies of scale, but integration will not be easy.
Instructions were issued on holding loan camps in the last week of September.
'It's a toss-up between a fire sale of equity or merger with a strong bank,' points out Tamal Bandyopadhyay.
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.
'What the RBI is doing is trying to catch the mouse when they have to catch the tiger.'
Any revision in loan rates would be visible next month.
Many firms' debt far exceeds their market capital.
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.
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.
Despite Indian economy recovering, there is very little room for loan growth, say bankers.
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.
Employees of public sector banks have called off the strike planned on February 25 and 26
Do you save more money if you use bank portals for online shopping?
K V Kamath to take charge of BRICS Bank in July.
Prefer proposal for airline to float bonds guaranteed by govt.
The latest fraud is a failure of management supervision and accountability, as no bad debt was generated and no cash was involved
According to ICRA, even in a high-growth scenario, wherein the second half of FY20 sees the incremental bank credit rise to Rs 6.5-7 trn, there will still be a 40-45% year-on-year decline.
"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.
In addition to the problem of long queues at automated teller machines, there would be the problem of guiding new cardholders, especially in rural and semi-urban areas, on how to use those cards, some bankers told Business Standard.
"Large-scale corruption is being alleged in schemes being executed through banks... the top authorities must take the matter seriously and help curb corruption," Kumar said while addressing the meeting of the State Level Bankers' Committee (SLBC).
Currently, the fee is Rs 15 per financial transaction. This has been recommended to be revised to Rs 16.50, plus service tax (12%), taking the amount to Rs 18.48.
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