RBI found excessive dominance by 1-2 board members even in big commercial banks: Das
Reserve Bank Governor Shaktikanta Das on Monday said the central bank has noticed "excessive dominance" by one or two board members even in "big commercial banks" and asked the lenders to desist from such practices. Board discussions have to be free, fair and democratic, Das said, addressing directors of Urban Cooperative Banks (UCBs) at a meeting organised by the Reserve Bank of India (RBI) here.

RBI 'not comfortable' with NPAs in urban co-op banks, asks lenders to focus on governance
RBI Governor Shaktikanta Das has said the central bank is "not comfortable" with the gross non-performing assets ratio of 8.7 per cent in urban cooperative banks (UCBs) and asked them to work towards improving the same. Addressing directors of UCBs in the financial capital at an RBI-organised conference, Das urged that such lenders should improve the governance standards, avoid related-party transactions and focus on credit risks, among others.

Protecting depositor money sacred duty for a banker, more important than praying at temple or gurdwara: Shaktikanta Das
Protecting depositors’ hard-earned money is a sacred duty for a banker, and more important than visiting a religious place, RBI Governor Shaktikanta Das said on Monday.

Government approves one-year extension to RBI Deputy Governor Rajeshwar Rao
New Delhi, The government on Monday extended the term of RBI Deputy Governor M Rajeshwar Rao for a period of one year, according to sources. The Appointments Committee of the Cabinet has approved the re-appointment of M Rajeshwar Rao, Deputy Governor Reserve Bank of India, for a period of one year with effect from October 9, 2023, they said.

Bank boards should prevent overdominance by few members: RBI Das
Mumbai: Reserve Bank of India Governor Shaktikanta Das Monday asked bank boards to democratise discussions and prevent excessive dominance by few members. In his address at the conference for directors of urban cooperative banks (UCBs), Das said the quality of board discussions should be free and frank because the idea of cooperation is based on the idea of democracy.

ARCs want lenders to share list of stressed assets they intend to sell
Mumbai: Asset reconstruction companies (ARCs) have requested the Reserve Bank of India (RBI) to implement some more recommendations of the 2021 ARC panel, including lenders sharing at the beginning of the year, a list of bad loans they plan to sell and widening the investor base in security receipts to include high net-worth individuals, family offices and pension funds.

RBI tells lenders to name debtors whose assets are possessed under Sarfaesi Act
Lenders may have to undertake a huge exercise over the next six months as Reserve Bank of India (RBI) has asked them to display on their website information on borrowers whose secured assets have been taken into possession by them under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Indians have just five days to return withdrawn Rs 2,000 notes worth $3 billion
Indians have just five days to return about $3 billion worth of now-withdrawn Rs 2,000 notes.

Customer centricity not an ‘option’ but ‘necessity’, says RBI DG Swaminathan
Banks and other lending institutions must ensure that having a customer-centric approach is not an “optional” requirement in current times but more of a necessity, Reserve Bank of India (RBI) deputy governor (DG) Swaminathan J said at the Conference on Customer Service held in Mumbai on September 21.

Banks must not classify customers' complaints as queries, says RBI
Source Credit: Abhijit Lele, Business Standard

Mumbai: The Reserve Bank of India (RBI) has asked banks not to classify customer complaints as queries, saying the practice understates problems and could prompt it to take action.

Need to avoid dominance of 1-2 directors on boards: RBI Governor Das
 

RBI imposes penalty on SBI, Indian Bank, Punjab & Sind Bank
The Reserve Bank on Monday said it has imposed penalties on three state-owned banks, including SBI and Indian Bank, for violation of various regulatory norms. A penalty of Rs 1.3 crore has been imposed on the State Bank of India for non-compliance with certain directions issued by the RBI on 'Loans and Advances - Statutory and Other Restrictions' and 'Guidelines on Management of Intra-Group Transactions and Exposures', it said in a statement.

Small finance banks eye premium customers to diversify base, boost profitability
Small finance banks are eyeing premium customers, both in terms of income and credit worthiness, to improve profitability through diversifying their client base, boosting customer stickiness and bringing in more high transacting customers.

Large banks continue to be bullish on personal loans
Large banks continue to be upbeat on growing their unsecured retail personal loan books at a time when both analysts and the Reserve Bank of India (RBI) have sounded caution about their aggressive growth in the segment. Senior bankers believe that their strong underwriting norms and proactive actions gives them confidence of being able to contain the non-performing assets in this category.

Indian banks set to draw more global investment, says S&P Global
Indian banks are expected to attract increasing global investment from investors looking for better returns as higher credit growth, improved margins and stable asset quality have boosted the prospects of the lenders, said S&P Global Market Intelligence in a report.

Review of digital banking units' progress soon

The government may soon review the performance of digital banking units (DBUs) and their impact on digital lending and digital financial services.

Axis Bank's infusion will give Max Life enough capital for 2 yrs: Tripathy
Max Life Insurance will look into the possibility of reverse merger with parent Max Financial Services after Axis Bank’s capital infusion, says managing director (MD) & chief executive officer (CEO) Prashant Tripathy, in an interview with Manojit Saha for the Business Standard Banking Show.

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RBI imposes restrictions on Ahmedabad-based Colour Merchants Co-op Bank
The Reserve Bank has imposed several restrictions on Ahmedabad-based Colour Merchants Co-operative Bank, including capping withdrawal at Rs 50,000 per customer, in the wake of the deteriorating financial condition of the lender. The restrictions, imposed in the form of 'directions', have come into effect with the close of business on September 25, 2023, the central bank said in a statement. The restrictions will remain in force for six months.

RBI cancels licence of Mumbai-based 'The Kapol Co-operative Bank'
The RBI on Monday said it has cancelled the licence of Mumbai-based The Kapol Co-operative Bank Limited as the lender does not have adequate capital and earning prospects. Consequent to the cancellation of the licence, the cooperative bank has been prohibited from conducting the business of 'banking' which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect, the Reserve Bank said in a statement.

TCS strengthens partnership with Standard Bank to centralize & standardize its custody and securities settlement operations
Tata Consultancy Services (TCS) on Monday said that it has expanded its partnership with the Standard Bank Group (SBG), to centralize and standardize its custody and securities settlement operations in over 15 markets with the TCS BaNCS Global Securities Processing Platform.

India considering Rs 60,000 crore housing loan interest subsidy scheme
India is considering spending Rs 60,000 crore ($7.2 billion) to provide subsidised loans for small urban housing over the next five years, two government sources told Reuters.

Tata Capital launches instant digital sanctions for CV Loans
To offer this solution, Tata Capital has partnered with the major Original Equipment Manufacturers (OEMs) to ensure customers get a wide choice while buying new Commercial Vehicles.

CBDT notifies classification of NBFCs into top, upper and middle layers
New Delhi: The Central Board of Direct Taxes (CBDT) has notified classes of Non-Banking Financial Companies (NBFCs) which will be eligible for provision of Income Tax Act related with certain deductions to be only on actual payment. This is a crucial notification concerning the payment of interest on loans to NBFCs. Based on the changes made in the Finance Act 2023, new classification will come into effect from September 22.  “In exercise of the powers conferred by clause (da) of section 43B of the Income-tax Act, 1961, the Central Government, hereby, notifies the following classes of NBFCs, for the purpose of the said clause, namely, all NBFCs classified in the top layer, in the upper layer and in the middle layer,” the notification read.

Navadhan creating new wealth for rural-preneurs
In the heartlands of India, where innovation often meets necessity, Navadhan Capital is connecting small rural businesses with financial resources. With a network of 18 lending partners across NBFCs, small finance banks and banks, the Mumbai-based fintech startup has enrolled over 250,000 customers and disbursed over Rs 120 crore. The startup’s revenue has gone up 20 times over the past two years. Encouraged by the market response, Navadhan has rolled out plans to expand its field operations from two states to 10 states in the next two years.

NARCL pays Srei lenders promised upfront cash

National Asset Reconstruction Co (NARCL), the winning bidder for the bankrupt Srei twins, has distributed to lenders Rs 2,580 crore of cash accumulated in the distressed infrastructure financiers as part of the debt-resolution program at the Kolkata-based companies.

Aditya Birla Fin NCDs offer an AAA-rated alternative to bank FDs

Mumbai: Conservative investors looking to diversify their fixed-income portfolios beyond traditional fixed deposits could consider the Non-Convertible Debentures (NCDs) of Aditya Birla Finance. This instrument will fetch individuals about 1% or 100 basis points above deposits offered by top-rated lenders.

Bajaj Finance shares rise as fundraising talk brings cheer

Mumbai: Bajaj Finance jumped 4.6%, leading the Nifty gainers in Monday's trading, as investors cheered the lender's plans to raise funds from the market. Analysts said the move, in addition to bolstering the company's capital base, is expected to improve its financial ratios. The stock closed at ₹7,819.20 on the BSE on Monday off the day's high of ₹7,848.35.

Majority of lenders of IL&FS Tamil Nadu Power Company seal loan recast deal

A majority of the lenders have signed an agreement to restructure the Rs 9,000-crore debt of IL&FS Tamil Nadu Power Co Ltd (ITPCL), allowing them to distribute the Rs 3,134 crore cash in the company as early as next week, after the board of the debt- laden financial and infrastructure conglomerate gives its approval, people familiar with the process said.

Aditya Birla Finance unveils ₹2,000 crore NCD issue
 

We must be among the top three players in every segment: Nirmal Jain, founder IIFL Group
Speaking exclusively to businessline, Nirmal Jain, founder, IIFL Group recalls the journey from 2018’s IL&FS crisis to now. Reiterating that ₹1 lakh-crore AUM is his near term goal post, he explains the way ahead for IIFL Finance.

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We eventually want to become a reinsurance broker: Yashish Dahiya, PB Infotech
Yashish Dahiya, Chairman & CEO, PB Fintech, says “we have enough data, which implies that we believe that we can deserve a better pricing than exists in the market today. And for that, we would like to become a reinsurance broker. That is the end of it. What we eventually want to be is a reinsurance broker. Now for that, for a while we have to be a reinsurance carrier. Now that is not a board decided thing, I am just speaking plainly. Our intention is not to become a reinsurer and become a very capital intensive business where we invest a lot of capital. Our intent is to be an enabler, data provider, tech provider and be the process provider and process definer.”

Demat accounts grow 26% to 12.7 crore in August
The number of demat accounts rose to 12.7 crore in August 2023, a surge of 26 per cent on a yearly basis, primarily due to attractive returns from equity markets, and ease of account opening process.Also, the incremental additions of such accounts were higher in August in comparison to the preceding month. Further, this was way higher than the average 21 lakh monthly additions in fiscal year FY23, according to an analysis by Motilal Oswal Financial Services.The new account additions rose 4.1 per cent month-on-month to 31 lakh in August compared to 30 lakh additions in July.

HDFC Sky app details: Fee, Charges, Features for Investing in Mutual Fund SIP, ETF, Indian & US Stocks
HDFC Sky app details: HDFC Sky is a new investment app launched by HDFC Securities. The app promises to help users track all their investments in a single place. Here’s a look at the important features that this app is offering.

NSE plans to extend trading hours for derivatives segment in a phased manner: Report
India’s largest bourse, the National Stock Exchange (NSE), is finalising its plans to extend the equity derivatives trading hours in a phased manner, with an aim to offer an opportunity to domestic traders to react to global events, a report said.

Hong Kong’s SFC to reveal names of ‘suspicious’ crypto exchanges under its governance
Securities and Futures Commission (SFC), a Hong Kong-based financial authority, has taken up the decision to tackle unregulated cryptocurrency trading exchanges under its administration, as stated by Cointelegraph. 

DeFi project Mixin Network suspends services after $200 million crypto hack
Decentralised finance project Mixin Network has suspended deposits and withdrawals after suffering a hack involving $200 million in crypto assets, the entity said through a post on X, the firm previously known as Twitter.

SIT to probe cryptocurrency frauds in Himachal: Deputy CM
A special investigation team (SIT) headed by Deputy Inspector General of Police (Northern Range) Abhishek Dhullar would be constituted to investigate cryptocurrency frauds in Himachal Pradesh, Deputy Chief Minister Mukesh Agnihotri said in the Assembly on Monday.

Bitcoin trades below $26,200; Toncoin, XRP shed up to 3%

The major crypto tokens were trading in the red on Monday. Bitcoin (BTC) fell 1.5% to $26,157, whereas Ethereum (ETH) was below the 1,600 level.

UTI Mutual Fund launches UTI Innovation Fund
UTI Mutual Fund (UTI) has launched UTI Innovation Fund, an open-ended equity scheme following the innovation theme to bring the next generation edge to investor’s portfolios. The Fund would follow a bottom-up approach for investing in innovation-oriented businesses and disruptors with the potential of non-linear growth outcomes.

This SBI MF scheme turned Rs 1 lakh to Rs 27 lakh in 19 years. Do you own it?
SBI Focused Equity Fund, which has recently completed its 19 years of operations, has delivered multibagger returns to investors with a compounded annual growth rate (CAGR) of 18.91% since its inception.

Mutual Fund Nominee: Where to Check or Update Details Online Before Last Date September 30
Mutual Fund Nominee Update Last Date: For all existing mutual fund unit holders, it is mandatory to nominate or opt out of nomination before September 30, 2023, failing which the folios shall be frozen for debits, according to the Securities and Exchange Board of India (SEBI).

12 international funds offer more than 30% in one-year horizon

Mutual fund advisors always tell investors that the real purpose of investing in international or overseas funds is geographical diversification, not better returns than Indian stocks. However, they can say that apart from the benefits of geographical diversification these funds also offer great returns - perhaps in some years. At least that is what numbers say. Around 12 international funds have offered more than 30% in a one-year horizon, a data crunching by ETMutualFunds showed. There were around 68 schemes in the international category.

SEBI’s move to ease rules for corporates’ bond market borrowings is welcome
The Securities Exchange Board of India (SEBI) has decided to water down regulations that forced large corporates to mandatorily tap the bond market for part of their borrowing needs. The decision is pragmatic, as a number of companies impacted by these rules have found them impossible to comply with. It was at the behest of the Centre that SEBI ushered in the ‘large corporates borrowing framework’ in end-2018. From FY20, all listed companies with long-term borrowings of ₹100 crore or more and a credit rating of AA and above were asked to source 25 per cent of their incremental debt needs through the market.

India bond yields dip as index inclusion continues to lift mood
Indian government bond yields inched lower on Monday as investors remained positive after JPMorgan last week included India in its emerging market debt index. The 10-year benchmark 7.18% 2033 bond yield was at 7.1281% as of 10:00 a.m. IST on Monday, after ending at 7.1570% in the previous session. “The sharp reversal in yields on Friday was because of profit booking, and many traders lightened their positions as they sold stock after the debt auction, which is enabling them to take some fresh positions,” a trader with a primary dealership said.

Muthoot Finance's Rs 700 crore NCD issue oversubscribed on Day 1
Gold loan company Muthoot Finance's 32nd series of public issue of secured redeemable Non-Convertible Debentures (NCDs), with a base issue of Rs 100 crore and an option to retain oversubscription up to Rs 600 crore, aggregating to a tranche limit of Rs 700 crore was oversubscribed on the first day of the issue with an offer worth Rs 770.35 crore.

Indian G-sec Bonds in JP Morgan: yields to touch 7% in FY 24, says SBI
Following the inclusion of Indian Government bonds into JP Morgan's Emerging-market Index,  yields could touch 7% even before March of the current fiscal and should affirmatively breach 7% in FY25, according to the State Bank of India. 

Rupee to also gain from India entry into global bond index

Mumbai: The inclusion of India in a major global bond index and anticipation of more such announcements will likely bolster the rupee vis-a-vis its peers even as the probability of US interest rates remaining higher for longer theoretically dims the appeal of emerging market assets.

JPM Index inclusion is Indian bonds' liberalisation moment

Mumbai: It took nearly 30 years for net annual overseas purchases of Indian stocks to hit the $20-billion milestone at current rates of exchange. Bonds should comfortably breach that threshold in as many months.