Page 13 - Indian Banking Sector
Last rate cut for now but there're more bullets in RBI's chamber
Following this, the reverse repo rate, or the rate at which the banks perk extra liquidity with the RBI, was reduced to 3.35 per cent from 3.75 per cent - both at their historic lows.
 "Last rate cut for now but there're more bullets in RBI's chamber")
Covid-19 crisis: Slippages may jump to Rs 5.5 trillion, says India Ratings
Credit costs could touch Rs 2.7 trillion
 "Covid-19 crisis: Slippages may jump to Rs 5.5 trillion, says India Ratings")
Lockdown 4.0: Normalcy returning for shadow lenders, albeit at a slow pace
Enquiries for fresh loans see uptick
 "Lockdown 4.0: Normalcy returning for shadow lenders, albeit at a slow pace")
Bad bank may start with Rs 60K-crore NPAs; govt may put in Rs 10K crore
Banking lobby group Indian Banks' Association (IBA) is expected to take the proposal, which is on the lines of the Sashakt panel recommendations, to the finance ministry this week.
 "Bad bank may start with Rs 60K-crore NPAs; govt may put in Rs 10K crore")
MSME sector's bad loan ratio at 12.5% as of January, shows report
NPA level of public sector banks has increased from 18 per cent in December 2018 to 19 per cent in December 2019
 "MSME sector's bad loan ratio at 12.5% as of January, shows report")
Covid-19 crisis: It's time for concrete revival plan, says SBI chairman
Rajnish Kumar said, "a certainty on regulatory stance, and support that may be coming from the government, is required as we are now in the exit phase of the lockdown."
 "Covid-19 crisis: It's time for concrete revival plan, says SBI chairman")
Blue chips see cuts in target prices; half of Nifty sees cuts of over 15%
According to data from Bloomberg, banks have seen among the sharpest cuts in target prices -- between 16 and 60 per cent.
 "Blue chips see cuts in target prices; half of Nifty sees cuts of over 15%")
Expect slippages to rise to 9% post lockdown: YES Bank's Prashant Kumar
The plan to raise up to Rs 15,000 crore is very much on. We have identified six merchant bankers for the process and are waiting for the Q4 results to be out, YES Bank's MD said
 "Expect slippages to rise to 9% post lockdown: YES Bank's Prashant Kumar")
Covid-19 crisis: RBI may extend moratorium on bank loans by 90 more days
Suggestions from various quarters, including from Indian Banks' Association, have come for the further extension of moratorium and the RBI is actively considering them, according to sources.
 "Covid-19 crisis: RBI may extend moratorium on bank loans by 90 more days")
RBI guv Das chastises banks not doing enough on lending, NBFC liquidity
Relaxation likely on branch audit as Guv meets bankers
 "RBI guv Das chastises banks not doing enough on lending, NBFC liquidity")
RBI governor Shaktikanta Das to hold meeting with bank chiefs today
The meeting will take stock of implementation of several steps announced by the RBI, including moderation in interest rate and its transmission, as well as liquidity infusion measures for industry
Sidbi, Nabard compete to lend to top MFIs under RBI's liquidity support
According to informal estimates, the two organisations together are looking to extend Rs 7,000-8,000 crore in funding
 "Sidbi, Nabard compete to lend to top MFIs under RBI's liquidity support")
One month of bank merger: Coronavirus lockdown proves a dampener
On April 1, Punjab National Bank (PNB) took over Oriental Bank of Commerce (OBC) and United Bank of India (UBI) to become the country's second-largest lender after SBI in terms of business
 "One month of bank merger: Coronavirus lockdown proves a dampener")
From overweight to underweight, how sentiments have changed for banks
Large brokerages are fast losing their conviction on the sector that has multiple challenges
 "From overweight to underweight, how sentiments have changed for banks")
Indian Bank sees new opportunities with larger footprint after merger
Both the banks have come together amid the coronavirus (Covid-19) lockdown and started working as a single bank with a larger footprint.
 "Indian Bank sees new opportunities with larger footprint after merger")
Lockdown 2.0: Coronavirus-hit units get Rs 10,000 crore from banks
Banks have built internal capacities for assisting companies, including micro, small & medium enterprises (MSMEs).
 "Lockdown 2.0: Coronavirus-hit units get Rs 10,000 crore from banks")
RBI opens Rs 50,000-crore special liquidity window to support mutual funds
According to the available data, the credit risk fund category saw its assets under management (AUM) dip by another 12 per cent in April to Rs 48,392 crore
Credit disbursement: Banks face pressure to avoid large-scale slippages
Public sector bank executives point out that banks understand the need to provide critical support to borrowers hit by the lockdown, imposed to contain the spread of Covid-19.
 "Credit disbursement: Banks face pressure to avoid large-scale slippages")
RBI considers standing deposit facility to manage extra liquidity
No firm decision has been reached on this, said sources. The SDF, when introduced, will become the lower bound of the corridor for the liquidity management window.
 "RBI considers standing deposit facility to manage extra liquidity")
IBA to discuss the issue of giving a moratorium to NBFCs on Saturday
A senior executive of a public sector bank said the IBA's management committee meeting would discuss the issue of giving a moratorium to finance firms.
