According to analysts, too big to fail is a phrase used to describe a bank or company that’s so entwined in the economy that its failure would be catastrophic.
On the asset quality front, the bank recorded improvement with gross NPA declining to 7.69 per cent, or Rs 8,072.43 crore from 16.77 per cent, or Rs 15,746 crore.
The Kerala-based private sector lender's core net interest income grew by 61.8 per cent to Rs 155.2 crore during the reporting quarter, while the treasury profits helped in non-interest income more than doubling to Rs 116.6 crore.
Commentary from the managements at IT firms post the Q3 results has been more than encouraging; most believe the deal pipeline will continue to be strong and that they are well-positioned to exploits segments like digital and cloud.
Bank deposits rose 8.5 per cent to Rs 147.27 lakh crore in the April-December 2020 period, as against an increase of 5.1 per cent a year ago, according to the recent data released by the Reserve Bank of India (RBI).
The bank’s net revenues (net interest income plus other income) grew to Rs 23,760.8 crore for the quarter from Rs 20,842.2 crore in the same quarter a year ago.
“It has been decided in the interim to permit UCBs which maintain CRAR of 9 per cent or above to refund the value of share capital to their members or nominees or heirs of deceased members on demand,” the RBI said in a circular to UCBs.
The FSR has warned that if the macroeconomic environment worsens into a severe stress scenario, the ratio may escalate to 14.8 per cent.
The minister said that co-operative banks have enabled the common man to have the financial backing to be self-reliant. This, he said, has supported the economy of the country and the state.
CiC grew by Rs 3,23,003 crore, or 13.2 per cent, to Rs 27,70,315 crore as on January 1, 2021 from Rs 24,47,312 crore as on March 31, 2020, according to recent data released by the Reserve Bank of India (RBI).
A pre-pack is an agreement for a distressed company’s debt resolution between secured creditors and investors instead of a public bidding process, as under the Corporate Insolvency Resolution Process (CIRP) of the IBC.
The bonds issued through the SBI's London branch, will be listed on Singapore Exchange and India INX, the international bourse from BSE, the release said.
It also announced Bharat Laghu Udyam Suraksha that provides cover for the building/structures, plant and machinery, stock and other assets of enterprises where the total value of risk across all insurable asset classes at one location exceeds Rs 5 crore
On January 5, 2020, only five days into the year, the first president of the National Company Law Tribunal (NCLT), Justice M M Kumar, retired from his post. The insolvency body has been without a full-time president ever since.
New rules for cheque payment: Under the positive pay system, an issuer a cheque will have to electronically submit certain minimum details of the particular cheque (such as date, name of the beneficiary, payee and amount) to the drawee bank.
Commercial banks in India managed to bring down their NPAs to 7.5 per cent of advances as of September 2020 from 8.2 per cent in March 2020 and 9.1 per cent in March last year.
Once approved by RBI, Chakraborty — a 1985 batch IAS officer of the Gujarat Cadre — may take over as the part-time chairman of HDFC Bank in January. The tenure of its current part-time chairperson Shyamala Gopinath will end on January 1.
The accounts are Mangalam Oil Industries with outstanding dues of Rs 10.77 crore, Alliance Fibres Ltd (Rs 18.31 crore) and Birsa Institute of Technology (Trust) (Rs 5.41 crore).
The meeting, held through video conference, was attended by Deputy Governors of the RBI. The progress in the implementation of resolution framework for Covid-related stressed assets was also discussed.
Infinite India platform offers banking solutions as well as value-added services such as incorporation of a business entity, corporate filings, licences and registrations, HR services, compliances and taxation among others, ICICI Bank said in a release.
Sources said banks are reviewing loan accounts, which have already been flagged for monitoring, and more large accounts are likely to be reported as fraud in the next couple of months.
DEA Secretary Tarun Bajaj said the government would continue with momentum on reforms which began right after the pandemic and the upcoming Budget will reflect that emphasis on economic reforms.
According to BankBazaar Moneymood 2021 report, 2020 started on a promising note, with recession of 2019 beginning to ease off in the first quarter (Q1) of the calendar. However, the Covid-19 pandemic brought regular life to a grinding halt towards the end of March.
The bank has been focusing largely on the secured assets front when it comes to new loans and the business has gone back to pre-COVID levels, while the riskier unsecured loans like the ones are credit cards is at 60-70 per cent of the pre-COVID levels.
“To improve the credit to GDP ratio, access to credit and cost of credit need to be addressed by lesser reliance on collateral security and greater cash-flow based lending,” Das said.