The Reserve Bank of India's 2024 norms for the voluntary conversion of Small Finance Banks (SFBs) into universal banks, particularly the subjective 'diversified loan portfolio' criterion, are proving to be a significant hurdle, with Ujjivan SFB and Jana SFB having their applications returned.
"I would like to resign as an independent director of the bank with effect from January 27, 2020. Given an entity owned and controlled by me has made an application to the RBI for a universal banking license, I felt it was -- in the interest of propriety and corporate governance -- only appropriate that I stepped down from this role," Bansal said in his resignation letter, which was disclosed by Ujjivan SFB in the regulatory filing.
Ujjivan Small Finance Bank's initial public offering attracted heavy investor demand on the final day of bidding on Wednesday as the issue was subscribed a whopping 126.36 times.
A well-run non-banking company has better margins than a bank, but the objective of setting up Ujjivan was to provide comprehensive financial inclusion, Ujjivan Small Finance Bank MD & CEO Samit Ghosh tells Anup Roy in an interview.
The Reserve Bank of India's (RBI's) latest order on unsecured loans is set to hit the banking sector's growth in the near-term, cautioned analysts, as they see banks slowing down on aggressive retail lending. Besides, cost of funds for non-banking finance companies (NBFC) is expected to inch up as banks will pass on higher capital charge to NBFCs. "We believe the fallout of the RBI action will be mainly on growth, given the rising dependence on unsecured retail loans and lending to NBFCs for growth.
Among the gainers, microfinance player Ujjivan Financial Services which made its stock market debut in May has seen the biggest rally in its share price.
Besides, two new entities-- IDFC and Bandhan -- have been given full-fledged banking licence.
Companies featuring in the Next 500 list are mostly mid-sized and termed as the 'small wonders' by the magazine.
A total of 25 companies raised Rs 28,220 crore during the financial year.
Investors engaged in profit booking in the recent gainers at attractive and higher valuations.
For the first time since 2001, promoter stake in BSE 500 decisively below 50%
Eye business expansion, fulfil working capital requirements and making loan repayments
During the current financial year, 25 companies have raised Rs 28,220 crore through IPOs
RBI had received 72 applications for small finance bank licences.
Venture capitalists Adam Wolfensohn and Ameya Bijoor tell Anjuli Bhargava about the kind of investments and companies they are looking to invest in.
The Department of Post, Tech Mahindra, Videocon Group and stock exchange NSE have joined big corporates like Ambanis and Birlas to seek entry into banking business through newly created niche category of Payments and Small Finance Banks.
Gains were led by HUL on better-than-expected margins in March quarter and capital goods shares.
These banks are finding it hard to pick up seasoned bankers at the pay they are offering
Ajit Mishra, vice president, research, Religare Broking, answers your stockmarket queries.
However, despite the reduction, their interest rates would be about 50-100 basis points higher than those of banks
India offices of MNCs like DHL, Google and Marriott ranked among the top workplaces in Asia.
'You cannot have only one product or one market or one customer segment.'
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Rate-sensitive sectors like banks, auto and realty witnessed strong buying demand in trades today
Sensex surged 486 points or 1.9%.
The niche banks - small finance and payments banks -have been set up to further the regulator's objective of deepening financial inclusion.
Brokerages are expanding the universe of stocks they cover amid a boom in the market. Several stocks in the mid-cap universe are now tracked by more analysts than they were a year ago. For instance, SBI Cards and Payment Services is now tracked by 17 brokerages, compared to just four a year ago.
Commemorating 75 years of India's independence, SBI has launched a 75-day Utsav Deposit Scheme, offering 6.10 per cent for fixed deposits. Senior citizens will get an additional 0.50 per cent and the offer is on until October 30, SBI said.
The move to ban Rs 500 and 1000 notes may not curb the root cause of black money.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Ajit Mishra, vice president, research, Religare Broking, answers your queries.
Ajit Mishra, vice president, research, Religare Broking, answers your queries.
'The recent US jobs report has eased fears of a hike in the Fed meeting.'
Ajit Mishra, Vice President, Research, Religare Broking, answers readers's queries on stocks they own or want to buy.
Ajit Mishra, vice president, research, Religare Broking, answers your queries.
Even as you fight the ongoing health challenge, here are some tips to strengthen your personal finance in the time of coronavirus.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
