Finance Minister Nirmala
Sitharaman will hold a meeting on
Friday via video conference with
chief executives of PSBs and
Chairman of SBI to review the credit
flow into the economy from these
banks. The Friday meeting will also
be attended by NABARD, SIDBI
CMD and MD of National Housing
Bank.
-Business Line
The Government is considering a
5-7% interest subvention on loans
to street vendors to make the
targeted ₹5,000-crore financial
assistance scheme popular amid
apprehensions that organised
lenders would baulk at lending to
the bottom of the pyramid. The
interest subvention is likely to be in
line with the benefits being given to
self-help groups where women
borrowers take loans at 7 % interest
and the government bears the
difference between the lending
rate of banks and the rate charged
on borrowers, people familiar with
the matter said.
-Economic Times
Banks and financial institutions
expect much heavy lifting through
credit support, pegged at over Rs 11
trillion in FY21, in the days ahead.
As a result, lenders have sought the
easing of NPA norms, one-time
restructuring, and extension of the
moratorium till August-end for
borrowers affected by the Covid
situation. Senior bank executives
said the IBA has already
approached the RBI with a plea for
easing regulatory norms, so as to
support borrowers hit by the
outbreak. -Business Standard
Bank credit rose 6.52% year-on-year
to Rs 102.52 trillion, while deposits
grew 10.64% to Rs 138.50 trillion in
the fortnight ended May 8,
according to latest RBI data. In the
fortnight ended May 10, 2019, bank
loans had stood at Rs 96.24 trillion,
and deposits at Rs 125.17 trillion.
-Business Standard
Leading banks have reached out to
the Ministry of Corporate Affairs to
fast-track 40 high-value insolvency
cases that have been resolved and
are awaiting approval from
bankruptcy courts. With prospects
of almost zero recovery over the
next few months, banks are
worried that buyers may call off
deals or reduce valuations
significantly if the final approvals
are delayed due to stalled economic
activity.
-Economic Times
Bandhan Bank today estimated that
about ₹260 crore of loans to 65,000
micro borrowers may have been
impacted by cyclone Amphan that
tore through parts of West Bengal
and Odisha. In a statement to the
stock exchanges, the bank said it
expects the Amphan-affected
portfolio to regularise by the Dec
quarter of FY21.
-Livemint
Standard Chartered Bank has
announced the extension
of medical benefits and domestic
relocation benefits to LGBT+
(lesbian, gay, bisexual, transgender)
partners of all employees in India,
as part of efforts to further its
diversity and inclusion agenda, said
a company statement issued today.
-Economic Times
Paytm has recorded around 4-fold
jump in payments received by
merchants in its new ledger service
amid the coronavirus pandemic, a
senior Co official said today.
-Moneycontrol.com
Bajaj Allianz Life is not expecting
significant growth for insurance
industry this year due to
coronavirus impact on the
economy, Tarun Chugh, MD & CEO
of Bajaj Allianz Life Insurance has
said. However, the insurer said,
customers will like to buy policies
online.
-Business Line
A working group constituted by the
IRDAI has recommended that banks
and financial institutions should not
be permitted to cover loan defaults
of sellers under trade credit
insurance.
-Moneycontrol.com
The fiscal outgo for the Union
Government towards the
₹20.97-lakh crore Aatmanirbhar
Bharat Abhiyaan package,
announced last week by the
Finance Minister, will be about
₹3-lakh crore over two fiscals ―
₹1.8-lakh crore in fiscal 2021 and
₹1.17-lakh crore in fiscal 2022,
according to an analysis by
Brickwork Ratings (BWR). The credit
rating agency observed that banks
and other financial institutions will
have to do the heavy lifting under
the package.
-Business Line
SEBI today said that credit rating
agencies can deviate from the
90-day period required to upgrade
the rating of an entity from default
to non-investment grade. The credit
rating agencies (CRAs) can take the
decision on case-to-case basis, the
SEBI said in a circular.
-Business Line
Calling India's Rs 20.9 lakh crore
stimulus inadequate in providing
for recovery of an economy
pummelled by COVID-19, former
RBI Governor Raghuram Rajan has
said the package gives free
foodgrains but migrant workers,
rendered jobless by lockdown, need
money to buy milk, vegetables and
cooking oil and pay rent. The world
is facing the greatest economic
emergency and almost any resource
is inadequate, he said.
-Economic Times
The COVID-19-induced lockdown
saw a spurt in crybercrimes in India
with Kerala recording the highest
number during the period,
according to an analysis of IT
security solutions provider K7
Computing. Kerala state as a whole
saw around 2,000 attacks during
the period, the highest thus far in
the country. This was followed by
Punjab with 207 attacks and Tamil
Nadu at 184 attacks, the statement
said.
-Economic Times
