Reserve Bank of India (RBI) Governor Shaktikanta Das announced a cut in the repo rate by 40 basis points (bps) to 4 per cent, while the reverse repo rate was reduced simultaneously to 3.35 per cent.
An RBI report states that private sector banks led the credit expansion with their share in the total credit successively expanding to 35.7 per cent in December 2019, from 32.2 per cent a year ago and 30.0 per cent two years ago.
Banks are already facing sluggish credit offtake and a spike in non-performing assets (NPAs) due to the lockdown and the contraction in the economy.
Kotak Mahindra Bank, through its debt capital markets team, will work closely with the Franklin Templeton Trustees, to assist with all portfolio actions in these six schemes that are being wound up, Franklin Templeton Mutual Fund said in a statement.
The minister said that "total relief will be worth Rs 1,500 crore," and added that this interest subvention is going to benefit over 3 crore people. Separately, she announced an extension of Credit Linked Subsidy Scheme (CLSS) for housing sector up to March 2021.
Banks which were pressing for a guarantee from the government to lend money to NBFCs despite the Reserve Bank of India opening a liquidity window for NBFCs and microfinance firms have welcomed the government guarantee announced in the stimulus package.
With the lockdown coming into effect from March 25, state-owned banks opened an additional line of credit of 10 per cent of the existing fund based on working capital limits, subject to a maximum of Rs 200 crore.
While bankers are pushing for this, and there is support for the proposal within a section of the government, the broader view in the Finance Ministry is that PSBs are “well-capitalised” and private asset reconstruction companies already exist in the banking system.
The RBI’s total gold reserves were 612.56 tonnes in the preceding fiscal ended March 2019. With the addition of more stocks, the value of gold reserves rose to $30.57 billion (around Rs 2,32,000 crore) by March 2020 from $23.07 billion in March 2019.
The rise in currency with the public comes despite appeals by the government and the RBI to use digital payment tools amidst the coronavirus outbreak.
Gross non-performing assets of the bank fell to 5.53 per cent of advances (Rs 41,409 crore) in Q4 of FY20 from 6.70 per cent (Rs 46,291 crore) a year ago.
The project will be implemented by the National Health Mission (NHM), the National Centre for Disease Control (NCDC) and the Indian Council of Medical Research (ICMR).
On March 27, the RBI, in its first COVID package, had slashed the repo rate by 75 bps to 4.40 per cent and cash reserve ratio (CRR) — the portion of deposits to be kept with the RBI — by 100 bps to 3 per cent.
A recent report by Crisil points out how SMEs are hit when the economy moves into a low-growth phase.
SBI Home Loan EMIs: The move will benefit those customers of SBI who have their loans linked to its Marginal Cost of funds based Lending Rate (MCLR) - which changes each time the bank makes changes in its benchmark rate. Separately, senior citizen customers, the bank has introduced a special deposit scheme called 'SBI Wecare Deposit' with a higher interest rate.
The move comes weeks after the top management voluntarily surrendered 15 per cent of their payments for 2020-21.
The bank had reported a loss of Rs 18,560 crore in the December quarter. The income from write-down of AT1 bonds worth Rs 8,415 crore was Rs 6,297 crore, the bank said.
SBI and other banks will offer the moratorium on loan repayment to NBFCs which have taken loans from them, banking sources said.
General insurance companies have received 900 claims for over Rs 18 crore towards COVID-19 treatment till Monday, according the General Insurance Council, the official representative body of the domestic general insurers.
The NPA rate for MSMEs has increased continuously over last few years to reach 12.6 per cent as of December 2019, Cibil said in a report.