UPI clocks its highest monthly volume with 1.5 billion transactions in July

Posted on 2020-08-01T19:32:37+05:30 - banking

The ‘V-shaped’ rebound comes on the back of steep fall seen in the months of March and April during the nationwide lockdown when the popular instant payment service had lost nearly 25% of transaction volumes.

UCO Bank ready to come out of RBI's prompt corrective action framework: Official

Posted on 2020-08-01T14:22:42+05:30 - banking

In May 2017, the central bank had initiated PCA against the lender due to high non-performing assets and negative return on assets.

Not allowed WhatsApp to go live for full-scale UPI operations: RBI tells Supreme Court

Posted on 2020-08-01T04:36:32+05:30 - banking

The central bank said it had advised the National Payment Corporation of India (NPCI), which manages the UPI system, to not permit WhatsApp to launch full-scale payment services till the time it fully complied with the rules.

Banks' YoY credit growth at 6.7 per cent remains subdued in June

Posted on 2020-07-31T22:17:12+05:30 - banking

The slowdown in disbursement of new credit in this period has been attributed by bankers to challenges in conducting origination activities, lack of clarity in moratorium extension and risk averseness amid tell-tale signs of stress across sectors.

Mini lockdowns pose big challenge: Banks, NBFCs hit a bump on the road to recovery

Posted on 2020-07-31T08:15:26+05:30 - banking

India began a nationwide lockdown on March 25. Curbs began to be eased in May, sparking a revival due to pent-up demand. But states imposed localised shutdowns this month after outbreaks of the disease. India has the third-largest number of Covid-19 infections.

Deadline for proposed Lakshmi Vilas Bank-Clix Capital merger due diligence extended till Sept 15

Posted on 2020-07-30T20:47:17+05:30 - banking

"There may be slight delay in the mutual due diligence and preparation of documents for regulatory requirements due to Covid situation and travel restrictions. Hence, both the parties mutually agreed to extend the exclusivity period till 15th September 2020," the bank said on Thursday evening.

YES Bank looks to carve out technology platform, transfer stressed assets to two arms: MD

Posted on 2020-07-30T17:08:14+05:30 - banking

The lender is creating a structure for what will be an in-house bad bank that will house all its bad loans and also buy bad assets from other lenders.

Suspending IBC for a year bad idea, restart bankruptcy courts in 2-3 months: Viral Acharya

Posted on 2020-07-29T21:26:42+05:30 - banking

Acharya, who went back to New York as a professor of economics after quitting his job at the RBI six months before the end of his three-year term, said bankruptcy should not be seen as a punishment, but as a way to restructure debts and pitched for the courts to reopen in the next two to three months.

Banks go slow on unsecured loans like consumer durables and financing through credit cards

Posted on 2020-07-29T18:36:20+05:30 - banking

To fill his growth gap, banks are now focusing on secured segments like mortgage loans, agriculture and top rated medium and small enterprises.

India risks ‘Japanification’ as bad loans surge, says Viral Acharya

Posted on 2020-07-29T14:08:38+05:30 - banking

The ex-central banker was referring to Japan’s experience in the 1990s when a weak banking and financial sector crippled activity and contributed to a lost decade of sub-par economic growth. The RBI sees the country’s bad-loan ratio swelling to the highest level in more than two decades — to 12.5% by March 2021, the highest level since 1999.

View: Yes Bank is a zombie. India must learn before more bailouts

Posted on 2020-07-29T10:14:24+05:30 - banking

Yes Bank was privately owned, before it was quasi-nationalized by making it SBI’s problem. But next year, there will be several small state-owned banks in a similar situation where capital buffers are depleted. This can’t happen yet because of RBI's Covid moratorium on repayments. When the freeze ends next month, loans will start turning overdue.

PM Modi to meet PSB heads on Wednesday, likely to discuss issues being faced by financial sector

Posted on 2020-07-28T23:47:10+05:30 - banking

Presentations by the PSB heads are likely to cover the key issues being faced by the sector in the backdrop of the slowing economy besides status on credit disbursement.