Nine banks, two non-bank lenders to infuse Rs 7,000 crore in bad bank
Eleven shareholders will hold just above 9% each initially, and this would mean that no single shareholder has more than 10% in promoting stake. More shareholders could join at a later date.
View: How the government can truly make India's state-run banks efficient just like their private sector peers
Since financial institutions a...
Walmart poaches Goldman Sachs bankers for a new fintech startup
Omer Ismail, head of Goldman Sachs' consumer bank, and one of his top lieutenants David Stark will leave the investment bank for Walmart's fintech startup.
Bad bank will be a new ARC set up by PSBs: Shaktikanta Das
Central bank governor Shaktikanta Das said the proposed bad bank, considered crucial in helping extract capital stuck in soured loans, will be a new asset reconstruction company (ARC) set up by public sector lenders to take over bad assets.
India has space for another strong ARC led by banks: Shaktikanta Das
Das also added that just like non-bank lenders the RBI was internally working on refining and strengthening guidelines governing asset reconstruction companies.
Bankers fear spike in NPAs from Mudra loans
Bankers say that the Supreme Court moratorium over classifying loans as non performing assets (NPAs) has so far kept defaults under wraps, even as recovery efforts are ongoing. But they fear that as much as 25% loans under the scheme could turn bad.
How crossword puzzles helped this investment banker crack the market in 2020
Mangesh Ghogre reckons 2020 was a landmark year for IPOs.
View: Dividing central bankers into hawks and doves misses the big picture
Last week, the Reserve Bank continued to hold rates steady, as it has since mid-2020. When Modi’s government replaced half of the six-member panel in October, the lineup was widely judged to be more dovish. This was supposed to be a new-look committee, one that was sympathetic to easing. It hasn’t worked out that way.
Bankers expect few takers for RBI's new TLTRO tap for shadow banks
To make it easier for banks and NBFCs to avail this facility, RBI has allowed banks to classify even above 25% of the total investment permitted to be included in the held to maturity (HTM) portfolio. All exposures under this facility are exempted from reckoning under the large exposure framework (LEF) allowing banks to take as much as demand they can depending on their risk appetites.
Bankers await clarity on ARC structure, capital allocation
Though the government has not allocated any funds for this new company, expectations are that public sector banks which are likely to be the biggest beneficiaries of this proposal will also be asked to invest.
Long delays in power resolution tests bankers' patience
Central Bank of India last week followed Indian Overseas Bank to sell its loans to Chhattisgarh-based KSK Mahanadi Power Co, as the project has failed to find a buyer more than 15 months after it was admitted for bankruptcy proceedings.
RBI unlikely to extend Dec 31 loan rejig deadline
The governor on Wednesday concluded a two-day meeting with public sector and private sector banks, held through video conference. Days before banks closed their books for the third quarter, Das asked them to make enough provisions should loans go bad. He also asked banks to raise more capital to grow loans.
RBI meets bankers, takes stock of Covid related stress & credit growth
In the meeting that was conducted through video conferencing, the governor and deputy governors discussed the progress in the implementation of resolution framework for COVID-related stressed assets, credit flow to different sectors of the economy including stressed sectors along with availability of credit to MSMEs.
An RBI working group insider explains the thinking behind businessmen-as-bankers recommendation
"We have suggested revisiting the fit-and-proper criteria. We have said that financial conglomerates getting into banking should have a structure NOFHC to come through and that companies should be regulated through RBI guidelines and necessary legislative framework," says Sachin Chaturvedi who is on RBI's central board.
Retired PSU bankers may get one rank, one pension plan
Finance minister Nirmala Sitharaman has sounded off banks to do more for employees who retired earlier so they are not discriminated against in terms of pension. The government has also asked banks to review the family pension scheme so that the pension for the spouse is the same as the government.