NATIONALISED BANKS
Budget 2024: Govt may tweak laws to push banking sector reforms in Budget session
The govt plans to introduce amendments to various banking laws during the Budget session to facilitate banking sector reforms, including privatisation of public sector banks. These amendments aim to decrease government holding in state-owned banks, enhance governance, and protect investors. The upcoming session, starting on July 22, will address these crucial changes.
Delhi HC sets aside Punjab and Sind Bank's withdrawal of one-time settlement
The OTS offer, its acceptance and the sanction letter constitute a sufficient contract, the judge said. “Thus, the Punjab and Sind Bank, which is a nationalised bank and an instrumentality of the state, cannot act arbitrarily or whimsically in matters of contract.” The Punjab and Sind Bank (PSB) withdrawing the OTS was a “cryptic order, bereft of any reasons”, Justice Pushkarna said.
PSBs lean less on OIS as a hedgeon uncertain local rate outlook
State-owned banks are reducing their reliance on derivatives to hedge domestic interest rate risks, with a notable decline in the market share of nationalised banks in the IRS MIBOR segment. Factors such as liquidity deficits, market volatility, and inflation targets have influenced this trend.
Embassy REIT raises Rs 1200 crore debt to acquire prime commercial asset in Chennai
Embassy REIT secured a Rs 1200 crore debt from a nationalised bank to purchase a 5 mn sq ft commercial asset in Chennai, expanding into a new growth market. The acquisition was funded through debt at 8.05% and internal accruals. The property has a high occupancy rate and will enhance Embassy REIT's commercial portfolio significantly.
Modi govt turned around banking sector, over Rs 10 lakh crore bad loans recovered in 10 years: Nirmala Sitharaman
Finance minister Nirmala Sitharaman highlighted the Modi government's success in the banking sector, recovering over Rs 10 lakh crore from bad loans. The Enforcement Directorate investigated 1,105 bank fraud cases, attaching proceeds worth Rs 64,920 crore.
Investors bought Rs 27,000 cr of sovereign gold bonds in FY24: RBI report
Sovereign gold bonds have caught the fancy of investors who bought Rs 27,031 crore worth of the bonds last fiscal, an amount more than four times invested in 2022-23 on the prospects of higher returns and tax benefits.
Narayanan Vaghul, the banking doyen, passes away at 88
Narayanan Vaghul, the banker who built ICICI, passed away at 88. He was the youngest chairman of Bank of India at 44 and quit banking due to bureaucratic interference. Vaghul was awarded Padma Bhushan in 2010 and The Economic Times Lifetime Achievement Award in 2006. He is survived by his wife, daughter, and son.
RBI announces reduction in the quantum of the government’s treasury bill sales
The Reserve Bank of India (RBI) has responded to tight liquidity conditions in the banking system by announcing a significant reduction in the government's treasury bill sales and introducing a new selection of bonds for the Centre's buyback operations. This move aims to alleviate cash constraints for banks, which have been exacerbated by muted government spending during the ongoing general elections. By reducing the supply of treasury bills and offering bonds for repurchase at acceptable prices, the RBI seeks to inject liquidity into the banking system and ease borrowing costs for banks.
RBI at 90: India's central bank must do better on supervisory front to not sully its track record
Reflecting on the 90-year journey of India's RBI, from political shifts to economic reforms, and its pivotal role in financial evolution. While successes in monetary policy stand out, challenges in bank supervision remain. Urgent reforms are needed for a resilient future.
SBI submits details of electoral bonds to Election Commission of India
The State Bank of India (SBI) has submitted the details of electoral bonds to the Election Commission of India after the Supreme Court rejected its extension request. The apex court had declared the electoral bond scheme as 'unconstitutional' and scrapped the scheme of anonymous political funding. SBI is the only authorised financial institution under the scheme.
Ukraine's largest lender PrivatBank makes record profits despite war
PrivatBank, Ukraine's largest lender, posted record profits in 2023 due to war inflow of deposits, interest rate gains, and low-risk costs. Ukrainian businesses rebounded, and the economy is recovering. The bank faces ongoing legal challenges and court cases from former owner Ihor Kolomoisky.
SGB latest tranche: What is the interest rate of Sovereign Gold Bond
The Reserve Bank of India (RBI) issues SGB on behalf of the Indian government. The SGB Series 2023-24 Series IV will open for subscription on February 12, 2024 and will close for subscriptions on February 16, 2024.
RBI gets serious about connected lending, a concern that has been raised earlier as well
India restricts corporate houses from owning banks, raising questions about their absence despite financial capabilities. Allowing them could foster 'connected lending,' granting preferential loans to connected parties. A 2020 RBI proposal advocated their entry, criticism centered on consolidating economic and political power.
Good work by nationalised banks, private banks need to do more to take govt schemes to public: MoS Bhagwat Karad
Dr. Bhagwat Karad, the Union Minister of State for Finance, has urged private banks to do more in extending the Centre's financial schemes to groups such as farmers, businesses, and street vendors. While nationalized banks have been actively involved in this effort, private sector banks need to step up their involvement.
Switzerland may hold vote on plan to nationalise UBS
The initiative proposes to amend the Swiss constitution to say that “large banks of systemic importance are to be managed as joint stock companies with the confederation as majority shareholder in terms of share capital,” according to the paper.
PSU banks in real danger of privatisation, says AIBOC
The All India Bank Officers' Confederation (AIBOC) has warned that public sector banks (PSBs) in India are in danger of privatisation, despite the crucial role they play in promoting financial inclusion and mobilising savings. Since their nationalisation in 1969, PSBs have channelled funds to vital sectors such as agriculture, small and medium-sized enterprises, education and infrastructure among others.
Deepak Parekh bids adieu: Why the man who built HDFC never owned more than 1% of it
The filial relations as a metaphor have been on Parekh's mind. Last year, while announcing the plan to merge HDFC with its bank, Parekh had said, "As the son grows older, he acquires the father's business." He is leaving when the son, HDFC Bank, has grown up enough to take care of the father, HDFC.
Large corporates will never be allowed to open a bank in India: N Vaghul
Large corporates will never be allowed to open a bank in India, veteran banker N Vaghul has said. Vaghul said India has learnt from its pre-bank nationalisation experience and will never repeat the same mistakes by allowing large corporations into banking.
Govt raises maximum tenure of PSU banks' CEO to 10 years
The amendment would be called Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2022, it added. The central government has the right to terminate the term of office of a whole-time director, including the managing director, any time before the expiry of the term specified, by giving him a notice of not less than three months, in writing or three months' salary and allowances in lieu of notice.
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