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.
While corporates had shut their factories due to the lockdown, there’s no provision to cover such losses in the policy.
The Registrar of Co-operative Societies, Maharashtra, has also been requested to issue an order for winding up the affairs of the bank and appoint a liquidator, the RBI said.
A Bench headed by Justice N V Ramana, which heard a plea that claimed the March 27 circular of the RBI has not been implemented by banks, said “in view of the above, we direct the Reserve Bank of India to ensure implementation of the Circular dated 27.03.2020 in its letter and spirit”.
As of Thursday morning, RBI's Twitter handle has 7.45 lakh followers. On April 20 alone, the handle saw 1.31 lakh new followers, according to an official with the central bank, who attributes the massive spike to an ongoing campaign.
Max Financial Services presently holds a 72.5 per cent stake in Max Life, while Mitsui Sumitomo Insurance (MSI) owns 25.5 per cent stake.
“Recent events at credit risk funds have increased risk of redemptions at debt mutual funds. However, we think a big shift in AUM mix over the past 18 months towards stronger borrowers should mitigate this risk,” it said.
The RBI’s liquidity offer is expected to bring some degree of comfort in the debt market which has been under huge redemption pressure, especially in the credit risk fund category which has assets of over Rs 55,000 crore.
The bank’s net profit fell 16% year-on-year to `302 crore in the March quarter as a result of higher provisions.
The retail industry body claimed that despite the Reserve Bank of India (RBI) circulars to banks to lend support to businesses, on the ground retailers are finding it difficult to access funds from banks for various reasons.
The special liquidity facility for mutual funds (SLF-MF) is available from today (April 27) till May 11 or up to utilisation of the allocated amount, whichever is earlier. The RBI will review the timeline and amount, depending upon market conditions.
SEBI had written to RBI in March itself impressing upon it the need to provide a liquidity window for mutual funds.
The overall premium income (new business) of 24 players in the segment fell to Rs 25,409 crore this March from Rs 37,459 crore a year ago, as per data released by the Life Insurance Council.
As many as six of the fund house’s FoF schemes have lost up to 25 per cent in their net asset values (NAVs).
Subscribed 100% in Rs 7,697 cr worth issues, over 50% in Rs 15,358 cr issues
These shares were acquired pursuant to invocation of pledge by security trustee on behalf of the corporation, which was pledged against a loan given by the lender in its normal course of business, HDFC Ltd said in a regulatory filing.
"Franklin Templeton Mutual Fund's decision to wind up six debt schemes is a matter of grave concern to the investors, mutual fund industry and the financial markets," Chidambaram said in a statement.
Winding up the funds is the “only viable option to preserve value for investors and to enable an orderly and equitable exit” for all unit holders, the asset manager said in a statement posted on its website on Thursday.
Of the Rs 25,000 crore put by the central bank on the TLTRO window on Thursday, banks took only Rs 12,850 crore (for three-year tenor), while there were no takers for the remaining amount. The RBI offers TLTRO funds at the repo rate of 4.40 per cent.
Coronavirus (Covid-19): The Finance Ministry, however, stated that the DA and DR at current rates will continue to be paid.