Page 5 - Banking System

Privatisation of banks: The sequencing must be right

It would be naïve to read the recent Union Budget announcement on privatisation of two public sector banks as a signal of the government's intent to altogether exit the banking sector. That is not goi

Banks, brokers get most complaints for mis-selling insurance products

In 2018-19, banks received more than 12,000 mis-selling complaints; brokers close to 11,000. The number was even higher in FY18.

BS Policy poll: Pause for sure, liquidity to be back in focus at RBI

The apex bank would still like to drain out some liquidity while managing yields through OMO or operation twist, to fend off inflation, especially when rate hikes seem distant

Longer tenure bond funds top the returns charts in 2020, shows data

The Reserve Bank of India (RBI) continued its easy monetary policy in 2020 by cutting policy rates and infusing liquidity into the banking system

The power of forward guidance

The point of dissonance is, however, regarding the surplus liquidity sloshing around the banking system and the fear that it might endanger financial stability

Push Rupay as first option, seed accounts with Aadhaar by Dec: FM to banks

Retired bank employees should not be forgotten; bankers should be a cohesive family such as in defence, says Sitharaman

Book excerpt: How RBI under Raghuram Rajan started the war against NPAs

The RBI found that the banks were delaying recognising large accounts as NPAs, even if projects were not starting up, and the 'project commencement' milestone was largely cosmetic

Fin sector must reduce reliance on banking system for fundraise: Sebi chief

t would be a challenging task to achieve the government''s target of having Rs 100 trillion investments in infrastructure by 2024-25 unless the bond market is adequately developed, Tyagi added

Rs 11.1 trillion: Amount RBI pumped into banking system to boost liquidity

It pared repo rate by 40 bps on May 22, on top of a 75 bps cut on March 27, brought liquidity enhancing steps that stabilised bond yields even in the face of a Rs 12 trn borrowing programme

Govt to bear interest on interest for small borrowers during moratorium

Any individual whose loan amount is less than Rs 2 crore will be eligible for waiver of the compounding of interest.

Ind-Ra cuts banking outlook to negative on rising NPA, credit cost

As per Ind-Ra's bear case, the spike in stressed assets due to pandemic is expected to double the credit costs for banking system

Indian-American bank president pleads guilty in $17-million fraud

An Indian-American president of a now-defunct New Jersey-based marble and granite wholesaler has admitted his role in scheming to defraud a bank in connection with a $17 million secured line of credit

Banks lower revenue outlook as coronavirus pandemic crimps loan demand

Bank of America, the second-largest US bank by assets, said it found little appetite for new loans when it surveyed its corporate clients twice this year

Huge liquidity surplus unlikely to be inflationary, say economists

Instead of pushing up inflation, the huge surplus liquidity, bordering at Rs 7 trillion daily, is helping in policy rate transmission and aiding govt to borrow at a cheaper rate

Rs 1.51 tn disbursed to MSME sector under emergency credit plan, says govt

There has been a big jump in the sanctions in the last 15 days, says finance ministry.

The Indian banking system is safe, but NPAs may shoot up, says RBI

The gross NPA ratio may rise from 8.5 per cent in March to 12.5 per cent by March 2021, but could worsen to 14.7 per cent under a very severely stressed scenario. However, no bank will fail

Indian financial system sound but Covid could spike bad loans: RBI

Gross NPAs of banks may rise from 8.5% this March to 12.5% by March 2021 but could worsen to 14.7% under very severely stressed scenarios. However, no bank will fail, apex vank says in FSR

Lockdown impact: Bank credit growth plunges 50% in fortnight to May 22

Banks had surplus liquidity of Rs 4.5 trn in the period

Intellect Design Arena launches iTurmeric Fincloud through IBM Cloud

The initiative will support onboarding to the IBM financial services-ready public cloud, including guidance through a prescriptive implementation and evidence process to help deliver Intellect Design

Bank liable for unauthorised online transaction

The National Commission observed that there was a security breach of the bank's net banking system