Page 4 - Banks

FSIB recommends Ashwani Kumar for the post of managing director of UCO Bank

FSIB, the headhunter for directors of state-owned banks and financial institutions, on Thursday recommended the name of Indian Bank executive director Ashwani Kumar for the post of managing director of UCO Bank. Prior to joining Indian Bank, Kumar was serving as chief general manager of Mumbai Zone of Punjab National Bank (PNB). The Financial Services Institutions Bureau (FSIB) interviewed 11 candidates from various public sector banks (PSBs) for the forthcoming positions of MD & CEO in PSBs, the Bureau said in a statement. "Keeping in view their performance in the interface, their overall experience and the extant parameters, the Bureau recommends Ashwani Kumar for the position of MD & CEO in UCO Bank vice Soma Sankara Prasad who is completing his tenure on May 31, 2023," it said. The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi. FSIB is headed by former secretary, Department of ...

Credit Suisse explodes into full-blown crisis as stocks, bonds crater

The stock fell as much as 31%, hitting record lows, and prices on its benchmark bonds sank to levels that indicate the Swiss lender is in deep financial stress

BofA gets more than $15 bn in deposits after Silicon Valley Bank collapse

The inflows offer a first glimpse into deluge of deposits that made its way to the country's largest banks as customers fearful of a spreading crisis sought refuge in the firms seen as too big to fail

Justice Department, SEC to probe into collapse of Silicon Valley Bank

The Justice Department and the Securities and Exchange Commission have launched investigations into the collapse of Silicon Valley Bank, a person familiar with the matter told The Associated Press. The investigations - which are separate inquiries - are in the early stages and will also examine the actions of the bank's senior executives, the person said. The Justice Department's investigation involves federal prosecutors in California, along with prosecutors involved in fraud cases, the person said. The person was not authorized to publicly discuss the specific details of the ongoing investigations and spoke to the AP on condition of anonymity.

SVB fallout: Nazara Tech says Rs 60 cr shifted to other bank accounts

Nazara Technologies on Wednesday said that out of Rs 64 crore held by its two step-down subsidiaries in Silicon Valley Bank, Rs 60 crore has been successfully transferred to bank accounts outside of SVB. The balance of Rs 4 crore remains in SVB accounts for unrestricted operational use, the company said in a regulatory filing. Nazara informed that both the companies -- Kiddopia Inc and Mediawrkz Inc -- have been given unrestricted access to the entire amount of USD 7.75 million (Rs 64 crore) that was held at SVB. "From this amount, a sum of USD 7.25 million (Rs 60 crore) has been transferred to bank accounts outside of SVB and the balance amount of USD 0.5 million (Rs 4 crore) remains in SVB accounts for unrestricted operational use," the company said. The abrupt failure of SVB last week had left many startups, tech companies, entrepreneurs and VC funds nervous and jittery about their deposits. SVB was deeply entrenched in the tech startup ecosystem and the default bank for many .

Banks from 18 nations open 30 special vostro accounts for trade in rupee

Several banks, including HDFC Bank and UCO Bank, have opened as many as 30 special vostro accounts as of date to facilitate overseas trade in the rupee, a top government official said on Wednesday. Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said as of date, some 18 countries have already opened special vostro accounts with Indian banks. "About 30 banks from overseas countries have signed up with 30 banks on our side, so 30 accounts...The transaction has started in bits and pieces," he told reporters here. Sberbank and VTB Bank -- the largest and second-largest banks of Russia, respectively -- are the first foreign lenders to receive the approval after the RBI announced the guidelines on overseas trade in the rupee in July last year. Another Russian bank Gazprom, which does not have its unit in India, has also opened this account with Kolkata-based UCO Bank. The move to open the special vostro account clears the deck for settlement of payments in rupee for trade

Indian startups able to withdraw up to $300mn from SVB: Report

The collapse of SVB in the US had left the Indian startup ecosystem worried. More than 1,000 Indian startups were likely to have exposure to the SVB

'Help us rebuild' deposit base: Silicon Valley Bridge Bank's new CEO

Mayopoulos said on a Tuesday conference call with clients that the future of the bank "is still being charted," and that the company could be recapitalized, taken over by a new owner or wound down

Banks may hike MCLR by 150 bps in FY24 amid tight liquidity: Report

RBI has raised policy repo rate by 250 basis points in stages to 6.5% in February 2023

Bank borrowings jump 64% in FY23, cross Rs 5 trillion mark for first time

Reliance on short-term funding increases as bank borrowings average Rs 4.2 trn

Class action suit against Silicon Valley Bank parent company, CEO, CFO

A class action lawsuit is being filed against the parent company of Silicon Valley Bank, its CEO and its chief financial officer, saying that company didn't disclose the risks that future interest rate increases would have on its business. The lawsuit against SVB Financial Group, CEO Greg Becker and CFO Daniel Beck was filed in the U.S. district court for the Northern district of California. It is looking for unspecified damages to be awarded to those who invested in SVB between June 16, 2021 and March 10, 2023. The lawsuit from shareholders led by Chandra Vanipenta says some quarterly and annual financial reports from SVB didn't fully account for warnings from the Federal Reserve about interest rate hikes. In particular, the lawsuit said that annual reports for 2020 through 2022, understated the risks posed to the company by not disclosing that likely interest rate hikes, as outlined by the Fed, had the potential to cause irrevocable damage to the company, the lawsuit stated. It

Silicon Valley Bank's collapse rattles the disruptors in tech industry

Silicon Valley Bank's collapse rattled the technology industry that had been the bank's backbone, leaving shell-shocked entrepreneurs thankful for the government reprieve that saved their money while they mourned the loss of a place that served as a chummy club of innovation. They were the gold standard, it almost seemed weird if you were in tech and didn't have a Silicon Valley Bank account, said Stefan Kalb, CEO of Seattle startup Shelf Engine, during a Monday interview as he started the process of transferring millions of dollars to other banks. The Biden administration's move guaranteeing all Silicon Valley Bank's deposits above the insured limit of $250,000 per account resulted in a palpable sigh of relief in Israel, where its booming tech sector is connected with an umbilical cord to Silicon Valley, said Jon Medved, founder of the Israeli venture capital crowdfunding platform OurCrowd. But the gratitude for the deposit guarantees that will allow thousands of tech startups to .

Too-big-to-fail US lenders rake in deposits after three banks fail

JPMorgan Chase & Co., the largest US bank, alone received billions of dollars in recent days, and Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. are also seeing higher-than-usual volume

Top headlines: Russia still India's main arms supplier, SVB fallout

Business Standard brings you the top headlines at this hour

SVB fallout: Present imperfect, future tense for Indian start-ups

Though many of them expect limited near-term impact, lack of SVB-like support system may pinch them later

Silicon Valley Bank collapse: Benchmark yield slips the most in five months

SVB collapse likely to force Fed to go slow on rate hikes, say analysts

Beyond the Big Bank Theory: SVB collapse shows need for regulatory scrutiny

SVB now threatens the start-up ecosystem, which is already in the throes of a funding winter due to raising interest rates

Bank stocks drop and S&P 500 swings as Wall Street fear next fallout

Wall Street is worried about what may be next to topple following the second- and third-largest bank failures in U.S. history, and stocks are swinging sharply Monday as investors scramble to find someplace safe to park their money. The S&P 500 was virtually unchanged in morning trading, but only after tumbling 1.4% at the open. The sharpest drops were again coming from banks. Investors are worried that a relentless rise in interest rates meant to get inflation under control are approaching a tipping point and may be cracking the banking system. The U.S. government announced a plan late Sunday meant to shore up the banking industry following the collapses of Silicon Valley Bank and Signature Bank since Friday. The most pressure is on the regional banks a couple steps below in size of the massive, too-big-to-fail banks that helped take down the economy in 2007 and 2008. Shares of First Republic plunged 78%, even after the bank said Sunday it had strengthened its finances with cash ..

Real estate market's hall of mirrors no fun house, but mood upbeat

Despite multi-year low valuations, brokerages see rise in demand and fall in inventory

SVB: Indian banks stand out amid 'global gloom and doom', says Macquarie

"Despite concerns of a slowdown in loan growth and margin compression, the earnings upgrade cycle continues for the banking sector," the analyst wrote