Banking and Financial News Update September 18, 2021

☕ 18.09.2021 : Today's Banking / Financial News at a Glance

🍒 SBI, Kotak Mahindra, PNB, BoB offer record low rates of interest on loans to cash in on festive cheer : While State Bank of India (SBI) is offering festive season home loans at 6.70% irrespective of loan amount, Kotak Mahindra Bank has reduced rates to record lows of 6.5%. With outreach programmes scheduled to make a return in the first week of October, credit flow to productive sectors of the consumer economy is likely to increase further. Similarly, Punjab National Bank has waived service charges and processing fees on all retail products. Meanwhile, HDFC Bank, the country’s most valuable brand, is partnering with fintech companies to accelerate its credit card reach after a regulatory ban was recently eased. It hopes to issue 300,000 credit cards every month. At the end of July, credit card spends surpassed pre-pandemic levels at ₹1.11 lakh crore, suggesting revival in customer activity. - Economic Times

🍒 Bad bank likely to spark global interest in India's $300 bn distressed assets industry : Top global investors such as SSG Capital, Deutsche Bank, SC Lowy, Varde Partners and Fiera Capital are likely to raise their stakes in India’s $300-billion distressed assets industry amid prospects of quicker resolutions, after North Block on Thursday announced the formation of a bad bank dedicated to extricating stuck loans. ET spoke with half a dozen senior executives involved in selling distressed assets about the prospects of the industry. - Business Line

🍒 PNB cuts repo-linked lending rate by 25 bps to 6.55% : Punjab National Bank (PNB) on Friday said it has reduced its the repo-linked lending rate (RLLR) by 25 basis points (bps) to 6.55 per cent from 6.80 per cent earlier. “The repo-linked lending rate (RLLR) has been changed from 6.80 per cent to 6.55 per cent, with effect from September 17, 2021 (Friday),” PNB said in a regulatory filing with the bourses. This is expected to push retail lending as it comes ahead of the upcoming festival season. The RLLR, which was introduced in October 2019, is a floating rate-based and is linked to the repo rate of the Reserve Bank of India (RBI). - Business Line

🍒 PAN-Aadhaar linkage deadline extended till March 2022 : Aadhaar linking with PAN can now be done till March 31, 2022, after the government extended the deadline from September 30, 2021.  “The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act,” the Central Board of Direct Taxes (CBDT) said on Friday. - Economic Times

🍒 Fintech start-up IppoPay raises $250,000 in pre-seed funding : IppoPay to use the proceeds to reach 100,000 merchants and expand its suite of offerings IppoPay, a Chennai-based fintech start-up that provides digital payment solutions to merchants in tier-2 and tier-3 cities, has raised $250,000 in pre-seed funding from early-stage investor Better Capital along with Prabhu Rangarajan (co-founder of M2P) and Sailesh Ramakrishnan (partner at Rocketship VC). In a statement, the company said it intends to use the proceeds to reach 100,000 merchants and expand its suite of offerings. IppoPay claims that its platform has recorded transactions worth ₹1,750 crore in over one crore transactions for about 5,000 merchants. IppoPay is currently partnered with YES Bank, Axis Bank, ICICI Bank and Paytm Bank. - Business Line

🍒 IDFC board approves divestment of mutual fund business : The Board of Directors of IDFC Ltd and IDFC Financial Holding Company Ltd (IDFC FHCL) at their meetings held on Friday considered and approved to initiate steps to divest the mutual fund business — IDFC Asset Management Company (IDFC AMC) Ltd. IDFC AMC is the direct subsidiary of IDFC FHCL and indirect subsidiary of IDFC. As on March 31, 2021, IDFC held 99.96 per cent in IDFC AMC.IDFC AMC’s average assets under management (AAUM) for the June quarter was at ₹1,26,070 crore, as per AMFI data. IDFC, in a regulatory filing, said the disinvestment is subject to requisite regulatory approvals, as applicable. - Business Line

🍒 Intellect Design Arena, Resurs Bank ink pact for digital banking solution : Intellect Design Arena Ltd, a Chennai-based multiproduct FinTech company for financial and insurance institutions, on Friday announced that it has entered a strategic partnership with Resurs Bank, a leader in retail finance in the Nordic region.  Resurs Bank is investing in a new, entirely cloud-based banking platform that creates the prerequisites to provide customers and partners with state-of-the-art services, interfaces and products. - Business Line

🍒 NARCL will have negligible short-term impact for banks: Kotak Securities report : The National Asset Reconstruction Company Ltd (NARCL),which is being put together by public sector banks and a few private sector banks to clean up their bad loans, will have negligible short-term impact as the upfront cash received is a smaller proportion and divided across banks, according to a Kotak Securities Ltd (KSL) report. Government guarantee, aggregating ₹30,600 crore, to the cecurity receipts (SRs) to be issued by NARCL puts a 18 per cent floor on recovery rate, the report said. = Business Line

🍒 JM Financial Products to raise upto ₹500 crore via public issue of secured NCDs : JM Financial Products, the NBFC arm of the JM Financial Group on Friday announced Tranche – I public issue of secured NCDs of face value of ₹1,000 each. The issue includes a base issue size of up to ₹100 crore with an option to retain over subscription up to ₹400 crore, which would in all total up to ₹500 crore. “The funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, and for repayment / prepayment of interest and principal of the borrowings of the company (at least 75 per cent) and for general corporate purposes (up to 25 per cent),” JM Financial said in a statement.. - Business Line

🍒 Pension subscriber base rises to 4.53 crore till August, says PFRDA : The Pension Fund Regulatory and Development Authority (PFRDA) on Friday said the subscriber base under its flagship pension schemes rose by 24 per cent in August this year to over 4.53 crore. The PFRDA administers two pension schemes — National Pension System (NPS) and Atal Pension Yojana (APY). “The number of subscribers in various schemes under the National Pension System (NPS) rose to 453.41 lakh by end-August 2021 from 365.47 lakh in August 2020, showing a year-on-year increase of 24.06 per cent,” the PFRDA said in a release. - Business Line

🍒 IIFL Home Finance inks co-lending pact with PNB : IIFL Home Finance Ltd on Friday said it has entered into a co-lending arrangement with Punjab National Bank (PNB), and aims to grow its loan book by 25 per cent from such partnerships. This is the fourth co-lending agreement signed by the company with banks, IIFL HFL said in a release. "IIFL HFL today announced and signed an agreement with PNB, India’s 2nd largest public sector bank, for co-lending. The loan sourcing and servicing will be managed by IIFL Home Finance and 80 per cent of the loan will be provided by PNB," it said. - Business Line

🍒 No TDS on bank deposit interest for recipient under scheduled tribe category: Finance Ministry : Finance Ministry on September 17 notified that there will be no deduction of tax on bank deposit interest if the recipient belongs to a scheduled tribe. "The Central Government in exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (“the Act”) notified that no deduction of tax shall be made on the following payment under section 194A of the Act, namely payment in the nature of interest, other than interest on securities, made by a Scheduled Bank (herein after the ‘payer’) located in a specified area to a member of Scheduled Tribe (herein after the ‘receiver’) residing in any specified area as referred to in s.10(26) of the Act," said the ministry in a release. - Moneycontrol.

🍒 Forex reserves down by $1.34 billion to $641.113 billion ; After reaching a record high in the previous week, the country's foreign exchange reserves declined by $1.34 billion to $641.113 billion in the week ended September 10, 2021, according to RBI data. In the previous week ended September 3, the reserves had surged by $8.895 billion to a life time high of $642.453 billion. During the reporting week ended September 10, the fall in the reserves was on account of a decline in Foreign Currency Assets (FCAs), a major component of the overall reserves, Reserve Bank of India's (RBI) weekly data released on Friday showed. - moneycontrol.

🍒 Shares of PSBs were trading mixed on the bourses today after the Goodovernment approved a guarantee of Rs 30,600 crore to be provided for the security receipts issued by the NARCL to buy bad loans of lenders. Among the individual stocks, SBI hit a new high of Rs 471.90, up 2% in intra-day trade today, extending its previous day’s 4.5% rally on the NSE. The stock surpassed its previous high of Rs 467.45, touched on August 4, 2021. Indian Bank, Canara Bank and Bank of India were up by 1% each, while Indian Overseas Bank, Punjab & Sind Bank, UCO Bank, Punjab National Bank and Bank of Baroda were down in 1% to 3%  on the NSE. - Business Standard

🍒 Rupee settles 4 paise higher at 73.48 against US dollar : The rupee closed 4 paise higher at 73.48 (provisional) against the US dollar on Friday, tracking the broad weakness of the American currency in the overseas market. At the interbank forex market, the local unit opened flat at 73.49 against the greenback. During the session, the domestic unit witnessed an intra-day high of 73.42 and a low of 73.55. In the previous session, the rupee had settled at 73.52 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12 per cent to 92.82.

🍒 Sensex, Nifty end lower as volatility index rises above 15 : The BSE Sensex which recorded an all-time high of 59,737.32 during the morning session, closed at 59,015.89, down 125.27 points or 0.21 per cent. It recorded an intraday low of 58,871.73. The Nifty 50 closed at 17,585.15, down 44.35 points or 0.25 per cent after recording a fresh high of 17,792.95. It recorded an intraday low of 17,537.65. Kotak Bank, HDFC Bank, Bharti Airtel, Eicher Motor and Maruti were the top gainers on the Nifty 50 while Tata Steel, Coal India, State Bank of India, TCS and Hindalco were the top laggards.

🍒 Gold prices today drop to lowest in 5 months after big fall : Gold and silver rates struggled in Indian markets today after a sharp fall in the previous session. On MCX, gold futures were down slightly to ₹46,050 per 10 gram while silver edged up 0.26% to ₹61,233 per kg. In the previous session, gold had dropped 1.7% or ₹807 per 10 gram, extending fall to ₹1200 in three days. Silver had slumped ₹2150 or 3.5% per kg in the previous session.

Banking and Financial Update 17 September 2021

☕ 17.09.2021 : Today's Banking / Financial News at a Glance

🍒 State Bank of India, Bank of Baroda reduce home loan rates by 25-45 bps  : Country’s largest lender, State Bank of India, has launched a bouquet of festive offers on Thursday for prospective home loan customers. The offers are aimed to make home loans more affordable in the festive season. In a first-of-its-kind initiative, SBI offers credit score linked home loans at just 6.70%, irrespective of the loan amount. Earlier a borrower availing a loan greater than Rs 75 lakh, had to pay an interest rate of 7.15%. With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70%. The offer results in a saving of 45 bps, which translates to a huge interest saving of more than Rs 8 lakh, for a Rs 75 lakh loan with a 30-year tenure. Meanwhile, BoB said it will offer a waiver of 25 basis points on the existing rates for home and car loans, along with a waiver of processing fee in home loans. Now, the bank's home and car loan rates will start from 6.75 per cent and 8 per cent, respectively.  - Business Standard

🍒 Indian Banks' Association to push for more reforms, take over EASE agenda : Indian Banks' Association or IBA has taken up reformation of the corporate lending system, dealing with issues like syndicate lending and multiple financing, said its chief executive Sunil Mehta. "IBA has given its recommendations to RBI," he said. The government, however, wants the banking association to have domain experts and not limit itself to an association that passes banking issues to the RBI. "IBA can also look at providing training and skilling of middle management banking professionals for unburdening the banks in terms of empowering and upskilling the banking professionals in the country," said financial services secretary Debasish Panda. The IBA has started its operational office in New Delhi. "IBA in times to come has a very important role to play and must work towards increasing it visibility as a central nodal agency taking up large number of issues," said Panda urging them to scout for good competent resources and technology adoption for capitalisation. Rajkiran Rai, chairman IBA noted that the association's transformation started since 2018 and is now more closely involved in the business side operations than mere advocacy. - economic times 

🍒 Bank of Baroda announces festive offers on retail loans : State-owned Bank of Baroda on Thursday rolled out a slew of festive offers for its retail borrowers. The lender is offering a waiver of 0.25 per cent in the existing applicable rates for Baroda Home Loans and Baroda Car Loans, according to a release. The bank's home loan rates start at 6.75 per cent and car loan rates at 7 per cent. It has also waived off processing fee on home loans. "With the introduction of these retail loan offers for this festive season, we intend to bring festive cheer among our existing loyal customers and also offer new to bank customers an attractive proposition for availing home loans and car loans," the bank's general manager (mortgages & other retail assets) H T Solanki said. - economic times

🍒 Over Rs 30,000 crore guarantee approved for bad bank, says FM Sitharaman : The Cabinet had yesterday approved govt guarantee of up to Rs 30,600 crore to back security receipts to be issued by National Asset Reconstruction Company (NARCL), said Finance Minister Nirmala Sitharaman in an address on the bad bank on Thursday. The NARCL will pay up to 15% of the agreed value for the cash loans and the remaining 85% would be government-guaranteed security receipts. "We have addressed issues in the banking sector that were staring us in the face in 2015," Sitharaman said. - econmic times

🍒 Kotak Mahindra Group acquires vehicle financing portfolio of Volkswagen Finance : Kotak Mahindra Group has acquired the vehicle financing loan portfolio of Volkswagen Finance Private Limited, the Indian captive financing arm of Volkswagen Group. Kotak Mahindra Prime will acquire the passenger cars and two-wheelers portfolio, and Kotak Mahindra Bank will acquire the commercial vehicles portfolio of Volkswagen Finance.  "The strategic intent behind this acquisition is to further strengthen Kotak’s vehicle financing loan portfolio and expand our market share,” said D Kannan, Group President – Commercial Banking, Kotak Mahindra Bank. “The long-term growth prospects of the Indian vehicle market are very attractive and this acquisition reinforces Kotak’s standing as one of the leading vehicle financing players.” - economic times

🍒 RBI approves Ujjivan's committee of directors for smooth functioning of the bank : Ujjivan Small Finance Bank has formed a special committee of three independent directors to oversee the operations and administration of the bank in the absence of a regular chief executive. The Reserve Bank of India approved it. Chairman of the bank's board BA Prabhakar, Ravichandran Venkataraman and Rajni Mishra are members of the committee, a person familiar with the matter said. The bank's entire senior leadership will report to the committee of directors," the person added. The bank is facing a vacuum in the top management with chief executive Nitin Chugh resigning last month. Chief financial officer Upma Goel also resigned in July. Both will officially exit the bank on September 30. - economic times

🍒 Poonawalla Fincorp's Managing Director, Abhay Bhutada, resigns after SEBI action : Poonwalla Fincorp managing director Abhay Bhutada has resigned from the non banking finance company (NBFC) a day after Securities and Exchange Board of India (SEBI) barred him from dealing in securities, for allegedly using price sensitive information in trading in the shares of Magma Fincorp before it was acquired by the Poonawalla Group. Bhutada will step down with immediate effect after the company's board accepted his Bhutada’s resignation, the company said in a statement to the exchanges. Group CEO Vijay Deshwal is likely to continue to run the operations of the company. In its order on Wednesday, SEBI said - economic times

🍒 Bad Bank plan gets Cabinet nod, credit flow to economy expected to improve : The cabinet has approved the establishment of a bad bank, another tool to resolve the bad debt dogging banks that has constrained the flow of credit to the economy, said a government official aware of the matter. An announcement is expected soon. Finance minister Nirmala Sitharaman had in the budget for FY22 announced a bad bank comprising an asset reconstruction company (ARC) and an asset management company (AMC) to consolidate and take over the stressed debt of banks. The government will provide guarantees to support the bad bank. Initially, the guarantee amount was pegged at a maximum ₹31,000 crore. It could be set lower as banks have projected an upside in recovery and full government guarantees may not be invoked. - economic times

🍒 Easing of inflation provides RBI space to support growth : The trajectory of inflation is sliding more favourable than anticipated, raising hopes that normalisation of ultra-loose policy may be pushed back than previously thought, according to a Reserve Bank of India analysis. The RBI in its state of the economy report said that prospects for the economy achieving `escape velocity' are brightening. “As pandemic scars heal and supply conditions are restored with productivity gains, a sustained easing of core inflation can be expected, which will reinforce the growth-supportive stance of monetary policy,” said the RBI article, prepared by its economic wing led by deputy governor Michael D Patra. - economic times

🍒 Mahindra Finance forays into vehicle leasing, subscription business : Mahindra and Mahindra  Financial Services on Thursday announced its entry into the leasing and subscription business. “The new vertical would operate under the brand name Quiklyz,” it said in a statement.  Under the leasing and subscription model, consumers would pay a monthly fee to access the vehicle of their choice across all car brands, at a lower price point compared to regular car ownership. “Corporate and businesses are also looking for alternate ways to have access to vehicles which can match their requirements without the burden of traditional ownership models,” the company noted in the statement. - Business Line

🍒 Kotak Mahindra Group acquires Volkswagen’s vehicle finance business :   Kotak Mahindra Bank on Thursday announced the acquisition of German carmaker Volkswagen's captive vehicle finance business for an undisclosed sum. The deal involves the private sector lender's in-house NBFC Kotak Mahindra Prime acquiring the passenger car and two-wheeler portfolio, while Kotak Mahindra Bank Limited (KMBL) will acquire the commercial vehicles portfolio from Volkswagen Finance (VF), as per an official statement. Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around ₹1,340 crore, the statement said, adding all these loans have been classified as “standard loans”. - Business Line

🍒 Abhay Bhutada resigns from Poonawalla Fincorp : Abhay Bhutada, Managing Director of Poonawalla Fincorp, has resigned with immediate effect. “Abhay Bhutada, Managing Director of the company has resigned from the board of the company with immediate effect from September 16, 2021, and the board of directors has accepted Abhay Bhutada’s resignation,” Poonawalla Fincorp said on Thursday. Vijay Deshwal, Group CEO, Poonawalla Fincorp will continue to run the operations of the company, it said “Bhutada has decided to step down as the MD of the company in the broader interest of the company and its stakeholders,” it said. - Business Line

🍒 PFC issues India’s first ever Euro-denominated green bonds : Power Finance Corporation (PFC) launched its maiden €300 million 7-year Euro Bond issuance on September 13 which got oversubscribed 2.65 times by institutional investors across Asia and Europe, the company said Thursday in a statement. The pricing of 1.841 per cent achieved is the lowest yield locked in by an Indian issuer in the Euro markets, it added. “It is not only the first Euro bond issuance by PFC but also the first ever Euro-denominated Green bond issuance from India. Moreover, it is the first Euro issuance by an Indian non-banking finance corporation(NBFC) and the first Euro bond issuance from India since 2017,” the release further added. - Business Line

🍒 Banks geared for card tokenisation : Banks indicate they are well prepared for the card tokenisation system and emphasise it will not impact customers. While lenders expect it to be a smooth transition, there could be some initial friction as consumers and merchants adapt to the new system.  “This move by the Reserve Bank of India will enhance card security framework for digital transactions. With tokenisation, a card specific token is generated. Going forward that token can be used for all online transactions. This will ensure enhanced security. In case of any data breach or hacking attempt at the merchant’s end, the customer’s card details will still be protected,” said Sanjeev Moghe, EVP and Head-Cards and Payments, Axis Bank, adding that the lender is prepared for tokenisation. - Business Line

🍒 UBS Principal Capital Asia sells IndusInd Bank's shares worth Rs 354 cr : UBS Principal Capital Asia Ltd on Thursday sold IndusInd Bank shares worth nearly Rs 354 crore through an open market transaction. Bulk deal data with the BSE showed that over 33.91 lakh shares were offloaded at an average price of Rs 1,034.5 apiece. This took the total transaction value to Rs 353.89 crore. Through a separation transaction, Societe Generale purchased the shares at the same price. On the BSE, shares of IndusInd Bank jumped 7.34 per cent to close at Rs 1,131.25 apiece. Separately, CDC Group Plc sold 1 crore shares of IIFL Finance for Rs 294.52 crore. - Business Standard

🍒 Srei Infra CEO Rakesh Bhutoria steps down on salary issue: Company filing : Srei Infrastructure Finance (Srei) on Wednesday said its chief executive officer (CEO) Rakesh Kumar Bhutoria has resigned, mainly on account of the salary payment issue that has impacted team morale. "We wish to inform you that Rakesh Kumar Bhutoria has stepped down from the position of the Chief Executive Officer of the company to explore alternative sectors," Srei Infra said in a regulatory filing.  Considering the salary payment issues arising out of the Trust and Retention Account (TRA) operationalised by the bankers, it has been impacting team morale, it added. - Business Standard

🍒 Sensex breaches 59,000; Nifty crosses 17,600 ; The BSE Sensex has breached the 59,000-mark, recording a fresh all-time high of 59,204.29. It closed at 59,141.16, up 417.96 points or 0.71 per cent. It recorded an intraday low of 58,700.50. The Nifty recorded a closing high of 17,629.50, up 110.05 points or 0.63 per cent. It recorded a fresh all-time high of 17,644.60 and an intraday low of 17,510.45. IndusInd Bank, ITC, State Bank of India, Reliance and IOC were the top gainers on the Nifty 50 while Grasim, Bharti Airtel, TCS, Shree Cement and Tata Steel were the top laggards. 

🍒 Rupee slips 2 paise to close at 73.52 : The rupee slipped 2 paise to close at 73.52 (provisional) against the US currency on Thursday, tracking the strengthening of the greenback in the overseas markets. At the interbank foreign exchange market, the domestic currency opened flat at 73.51, witnessed an intra-day high of 73.34 and a low of 73.52 against the American currency during day trade. The local unit finally settled for the day at 73.52, down 2 paise over its previous close.

🍒 Gold prices today near 1-month low after sharp fall, silver rates higher : Gold prices were weak today in Indian markets after a sharp fall in the previous session. On MCX, gold futures were down 0.04% to near one-month low of ₹46,878 while silver edged 0.28% higher to ₹63,468 per kg. In the previous session, gold had slumped 0.77% or about ₹400 while silver had dipped 0.5%.  

Banking and Financial News Update For 15 September 2021

☕ 15.09.2021 : Today's Banking / Financial News at a Glance

🍒 SBI to cut base rate by 5 bps to 7.45% from Sept 15 : India's largest bank, State Bank of India (SBI) on September 14 has decided to cut the base rate by 5 bps to 7.45 percent from Wednesday. SBI will also cut the prime lending rate by 5 bps to 12.20 percent.Previously in April 2021, SBI had reduced home loans  rates to 6.70 per cent and a special concession of 5 bps to women borrowers.Base rate is the minimum rate of interest set by the Reserve Bank of India and is taken as standard rate by all banks. Banks are not permitted to lend at a rate below the base rate once set by the central bank. The current base rate set by central bank is 7.30-8.80 percent. - moneycontrol.

🍒 Union Bank of India inks its first sustainability-linked overseas loan : Union Bank of India, through its international banking division, has secured a sustainability-linked loan aggregating to total syndicated facility of $1.5 billion with one of the leading trading corporates globally, the state-owned bank said on Tuesday.  Under the facility, Union Bank of India will include three key performance indicators (KPIs) relating to a reduction in greenhouse gas emissions, responsible sourcing of metals and growing renewable power portfolio. The sustainability-linked KPIs will have to be tested annually and verified by a third-party expert. Under this structure, the interest rate paid by the borrower on the credit facilities will decrease or increase based on the group’s progress on three key performance indicators (KPIs), the bank said in a statement. - Live Mint

🍒 UCO Bank sees ‘improved investor appetite’ : UCO Bank, which recently came out of the purview of the Reserve Bank’s Prompt Corrective Action, is expecting an “improved investor appetite”, which is likely to help its proposed capital raising plan. The bank had recently received the board approval to raise close to ₹3,000 crore capital in 2021-22. The fundraise can take place through various modes, such as follow-on public offer, qualified institutional placement and preferential issue, subject to necessary approvals, it had said in a regulatory notification to stock exchanges. - Business Line

🍒 Punjab National Bank begins exit from Canara HSBC OBC Life Insurance : Punjab National Bank, the country’s second largest public sector bank, has set the ball rolling for sale of if its entire stake in Canara HSBC OBC Life Insurance (CHOICE) by inviting bids for the appointment of a legal advisor for the proposed transaction.  After the three way amalgamation with Oriental Bank of Commerce and United Bank of India from April 1 last year, PNB had become a promoter shareholder, with 23 per cent stake in CHOICE. Prior to this amalgamation, OBC held 23 per cent stake in CHOICE. - Business Line

🍒 Co-lending: Punjab & Sind Bank ties up with Indiabulls : Punjab & Sind Bank (PSB), a public sector bank, has entered into a strategic co-lending alliance with Indiabulls Commercial Credit and Indiabulls Housing Finance (IHFL) for MSME and Priority Sector Housing Loans respectively.  Commenting on the partnership, S Krishnan, MD & CEO of PSB said that the co-lending model will improve the flow of credit to the unserved and underserved sector of the economy and make available funds to the ultimate beneficiary at an affordable cost, considering the lower cost of funds from banks and greater reach of the NBFCs/ HFLs. - Business Line

🍒 Escorts ties up with IndusInd Bank for finance to farmers : To make its range of tractors and farm equipment more accessible, Escorts Ltd has partnered with IndusInd Bank to provide financial solutions to farmers.  IndusInd Bank will offer farmers easy access to financial assistance in the form of loans in a seamless manner, Escorts said in a statement on Tuesday. Given its deep understanding of rural markets and wider penetration, IndusInd Bank will bring forth better accessibility to innovative financial solutions which, in turn, will help Escorts attain its larger goal of fostering the dreams of farmers, the company said. - Business Line

🍒 ICICI Bank leases 25,000 sq ft in Connaught Place : ICICI Bank Ltd. has leased 25,000 sq ft at Delhi's Dr. Gopal Dass Bhawan, Barakhamba Road, two people aware of the development said. The deal was facilitated by NCR-based brokerage firm Realistic Realtors. “Our goal is to assist businesses in locating elevated properties in prime locations that provide unparalleled access to all of the facilities that will benefit the buyer during the leasing process. Our area of expertise has demonstrated that we can deliver the finest service and consultancy to our clientele across a multitude of sectors,” said Ankit Gupta, Regional Director, Realistic Realtors. - economic times

🍒 ARCs may hunt MSME, retail assets as ground shifts: Crisil : Asset reconstruction companies (ARCs) are expected to circle stressed accounts in the micro, small and medium enterprises (MSME) and retail segments in the near-to-medium term, given the twin challenges of inadequate funding access and intensifying competition once the proposed bad bank materialises, rating agency Crisil said on Monday. ARCs have been facing headwinds in the past two fiscals, with assets under management (AUM) – as measured by security receipts (SRs) outstanding – contracting after a strong run-up in the previous five, as per it’s analysis. - economic times

🍒 NBFCs resent current account move by banks, flag reconciliation issues : Non-bank lenders have made a representation to the Indian Banks’ Association (IBA), asking it to advise lenders that the restriction on current accounts laid down by the banking regulator is not applicable to them, as multiple such accounts are required across geographies for collection purposes. While non-bank lenders (NBFCs) have proposed converting all collection accounts into cash credit facilities, they say banks are insisting on depositing cash or cheques in the centralised accounts, which has led to reconciliation issues. They say several such accounts have been closed by banks in recent months to meet with RBI rules on current accounts. “We request IBA to advise banks that the restriction on current accounts is not applicable to NBFCs, as already confirmed by RBI in their guidelines, insofar as they are required for collection,” NBFC lobby body FIDC said in a letter to IBA, seen by ET. - economic times

🍒 India, Singapore launch project to link UPI and PayNow for instant fund transfers : India and Singapore will link their respective fast payment systems -- Unified Payments Interface (UPI) and PayNow -- to enable users to make instant, low-cost fund transfers on a reciprocal basis, the Reserve Bank said on Tuesday. The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) announced the project to link the fast payment systems. The linkage is targeted for operationalisation by July 2022, the RBI said in a statement. "The UPI-PayNow linkage will enable users of each of the two fast payment systems to make instant, low-cost fund transfers on a reciprocal basis without a need to get onboarded onto the other payment system," it said. - economic times

🍒 Bad loans of banks may cross Rs 10 lakh crore by end of this fiscal, says study : Banks' bad loans might cross Rs 10 lakh crore by the end of this fiscal, mainly on account of slippages in retail and MSME sectors, a study said on Tuesday. "NPAs are expected to rise to 8.5-9 per cent by March 2022, driven by slippages in retail, Micro, Small and Medium Enterprise (MSME) accounts, besides some restructured assets," the study by industry body Assocham and ratings firm Crisil said. The study titled 'Reinforcing the Code' said the Gross Non-Performing Assets (GNPAs) of banks are expected to cross Rs 10 lakh crore by March 2022. - economic times

🍒 Credit demand back to normal for NBFCs : Demand for loans to purchase trucks and construction equipment is gathering steam and back to the pre-Covid levels on rising infrastructure spending by governments and capital expenditure by private companies. The demand for retail credit too is back on track, shrugging off the economic cost of the pandemic. - economic times

🍒 ToneTag completes RBI’s first cohort of voice-based retail payments : ToneTag has successfully completed the Reserve Bank of India’s first cohort for voice-based retail payments. It has executed offline voice-based payments via feature phones and smartphones in areas with inconsistent internet connectivity, with people who are digitally not savvy or find it difficult to use apps for banking or payments, making digital payments a reality for all, it said in a statement on Tuesday. - Business Line

🍒 Tata Capital launches LAMF scheme : Tata Capital has launched ‘Loan Against Mutual Funds’ (LAMF), whereby customers can digitally avail loans ranging from ₹5 lakh and ₹2 crore. The non-banking finance company, in a statement, said the end-to-end (onboarding to disbursement) digital loan offering, which is quick and hassle free, is provided against a wide range of equity and debt schemes across mutual funds. - Business Line

🍒 Hexahealth raises ₹33 crore from Omidyar, others : Healthcare startup Hexahealth on Tuesday said it has raised ₹33 crore in funding led by impact investor Omidyar Network and Chiratae Ventures. The seed funding round, which aims to transform surgery experience for patients, also saw participation from 3one4 Capital, while healthcare professionals like Viren Shetty, Rohit MA and Rehan Khan of Merck India have come in as angel investors, as per a statement. - Business Line

🍒 Madras High Court withdraws order on bumper-to-bumper insurance : The Madras High Court has withdrawn its order on bumper-to-bumper insurance following submissions made by counsels of Insurance Regulatory and Development Authority of India (IRDAI), General Insurance Corporation of India (GIC) and the Society of Indian Automobile Manufacturers (SIAM) that the Court’s direction may not be conducive and suitable for implementation in the current situation. - Business Line

🍒 Trust between govt and industry critical, says FM Nirmala Sitharaman : Highlighting the importance of trust between the government and industry, Union Finance Minister Nirmala Sitharaman said on Monday that it was essential to leverage opportunities thrown up by the Covid-19 pandemic and take the country one generation ahead. The trust between the two sides was reflected in the government’s actions, Sitharaman said while addressing members of the Conf - Business Line

🍒 Microfinance loan portfolio rises 4.2% to Rs 2,37,369 cr as of June-end : The microfinance industry's gross loan portfolio (GLP) rose 4.2 per cent to Rs 2,37,369 crore as of June 30, 2021, compared with Rs 2,27,727 crore as of June 30, 2020, according to a report by Microfinance Institutions Network (MFIN). Microfinance loan disbursals during the first quarter of the financial year 2021-22 improved significantly to Rs 25,503 crore, compared with Rs 6,186 crore in the corresponding quarter last year.MFIN is an industry association comprising 58 NBFC-MFIs and 39 associates including banks, small finance banks (SFBs) and non-banking financial companies (NBFCs). It released the Micrometer report for the April-June 2021 quarter on Tuesday. - Business Standard

🍒 Reserve Bank penalises Spice Money, Kuppam Co-op Town Bank : The Reserve Bank on Tuesday said it has imposed a penalty of Rs 2.44 lakh on Spice Money Limited for contravention of certain norms. The RBI also imposed a fine of Rs 5 lakh on The Kuppam Co-operative Town Bank, Kuppam, Chittoor district (Andhra Pradesh) for deficiencies in regulatory compliance. Regarding Spice Money, RBI said it was observed that the entity was non-compliant with directions issued by the central bank on maintenance of escrow account balance. - Business Standard

🍒 Bad bank meets RBI capital norms through rights issue : Shareholders of India’s bad bank put in an additional ₹74.6 crore through a rights issue to meet minimum capital norms, enabling it to apply for a Reserve Bank of India (RBI) licence, showed documents available with the registrar of companies (RoC).  Under a rights issue, a company allows only existing shareholders to participate in the fundraise. - Live Mint

🍒 Rupee closes flat at 73.68 against US dollar : The rupee settled flat at 73.68(provisional) against the US currency on Tuesday in tandem with the muted trend in domestic equities. At the interbank foreign exchange market, the local currency opened at 73.62 and witnessed a low of 73.70 and an intra-day high of 73.57 in the day trade. The domestic unit finally settled at 73.68 against the greenback, unchanged from its previous close. - Moneycontrol

🍒 Gold prices hover near Rs 47,000 per 10 gm on muted global trend; silver declines by Rs 70 a kg : Gold prices fell for the fourth straight day by Rs 42 to Rs 47,017 per 10 gram in the Mumbai retail market on muted global trends. Investors were cautious ahead of US August Inflation data to be released later in the day which could offer hints on the Federal Reserve’s decision to taper stimulus.  The price of 10 gram, 22-carat gold in Mumbai was Rs 43,068 plus 3 percent GST, while 24-carat 10 gram stood at Rs 47,017 plus GST. The 18-carat gold is quoted at Rs 35,263 plus GST in the retail market. Silver prices modestly slide by Rs 70 to Rs 62,806 per kg against its closing price on September 13.

🍒 Sensex, Nifty end flat with a positive bias : The BSE Sensex closed at 58,247.09, up 69.33 or 0.12 per cent. It hit an intraday high of 58,482.62 and a low of 58,214.29. The Nifty 50 closed at 17,380.00, up 24.70 points or 0.14 per cent. It hit an intraday high of 17,438.55 and a low of 17,367.05. IndusInd Bank, HCL Tech, Hero Motocorp, Adani Ports and Tata Motors were the top gainers on the Nifty 50 while UltraTech Cement, HDFC, BPCL, Nestle India and Tata Steel were the top laggards..

Saving Bank Account Interest of All Small Finance Banks in India as on 15.09.2021

 Check out the saving bank interest rate offered by all the small finance banks working in India.

Our research team has prepared the full compilation which are segregated in amounts upto 25 Lakhs in range of Upto 1 Lakh, 1 to 5 Lakhs, 5 to 10 Lakhs and 10 to 25 Lakhs.

Keep vising regularly our blog for further updates on other saving instruments.

For Any Doubt or Query post in comments section our team will be happy to answer your queries.

Banking and Financial Update 14 September 2021

☕ 14.09.2021 : Today's Banking / Financial News at a Glance

🍒 RBI cautions public against KYC updation frauds : The Reserve Bank of India on Monday cautioned the public against frauds being perpetrated on the pretext of updating Know Your Customer or KYC details. The regulator also alerted the public against sharing any personal or financial information with unidentified persons. The fresh set of cautionary remarks come after the RBI received several complaints and reports of customers falling prey to frauds being perpetrated in the name of KYC updation. The regulator said that the usual modus operandi in such cases include receiving unsolicited calls, emails or messages from unidentified person, urging the customer to share personal detonate like account login, card or PIN information. - economic times

🍒 BBB invites bids for conducting background verification of candidates : The Banks Board Bureau (BBB), the headhunter for state-owned banks and financial institutions, on Monday invited bids from firms to carry out background verification of candidates for director-level vacancies. The firm will prepare a candidate verification report for every aspirant to provide the necessary inputs to the BBB members before the interactions of the individual personages with the bureau, according to a public notice issued to invite bids. “A bidder will be selected under the Quality cum Cost Based System method (QCBS) with weightages of 80:20 (80 per cent for technical proposal and 20 per cent for financial proposal) and as per procedures described in this RFP,” it said. It also said that Rs 9,000 per candidate for approximately 50 candidates per annum would be paid to the firm. - financial express

🍒 Kotak arm invests Rs 1,000 cr in TVS family's logistics business : A Kotak Mahindra Bank arm on Monday announced a Rs 1,000-crore investment into a third-party logistics (3PL) business promoted by the south-based TVS family. Kotak Special Situations Fund (KSSF) has invested Rs 200 crore in TVS Supply Chain Solutions and has provided a Rs 800 crore finance to TS Rajam Rubbers Private Ltd through a non-convertible debentures route. The loan will help TVS SCS promoter R Dinesh acquire Canadian pension fund CDPQ's stake in TVS SCS, an official statement said. “The investments will help the TVS family consolidate their holdings in TVS SCS,” it said. - economic times

🍒 JP Morgan opens new campus in Hyderabad : J.P. Morgan Monday launched of its new campus in Hyderabad, which is spread across 822,000 square feet at Salarpuria Sattva Knowledge City and will consolidate the bank's global operations, it said in a release Monday. Employees across technology, risk, operations and support services will work out the new centre. "The new, integrated campus is a strong testament of our commitment to continue to meet our clients’ needs while ensuring a world-class work environment for our employees, as well as tap the incredible talent pool that the city offers,” said Daniel Wilkening, Chief Administrative Officer, Commercial Banking and Head of Global Services, JPMorgan Chase. This is one of JPMorgan Chase’s key campuses globally and its largest in Asia Pacific. - economic times

🍒 By November, Rs 10,000 crore will be payable to PMC, Guru Raghavendra customers under new banking Act : About Rs 10,000 crore of depositors’ money in banks under Reserve Bank of India (RBI) moratorium — such as the Punjab and Maharashtra Cooperative (PMC) Bank and Guru Raghavendra Sahakara Bank — will be payable to eligible customers by November end, under the recently-notified Deposit Insurance and Credit Guarantee Corporation (Amendment) Act. “While banks are yet to finalise the eligible account holders, initial estimates suggest the total amount to be around Rs 10,000 crore,” said a bank executive aware of the developments. - economic times

🍒 Rules of surplus distribution for LIC could be aligned with private rivals ahead of its IPO : In the wake of the mega initial public offer of Life Insurance Corporation, the government of India is mulling to align the rules of surplus distribution of the public life insurer with those of its private counterparts, according to a report in Times of India. LIC is governed by a special law, which currently is allowed to transfer only 5 percent of its surplus to the funds of shareholders. Rest of the 95 percent flows into the policyholder's fund in order to pay bonus on eligible life insurance policies. The said ratio is 90:10 when it comes to other life insurance companies which are regulated by the Insurance Act. - economic times

🍒 Retail banking a growth story whose potential hasn’t been unearthed fully: IDBI Bank : IDBI Bank is readying an “API (Application Programming Interface)-Banking” platform that will act as a bridge between third party entities such as account aggregators, payment service providers and fintechs, and its core banking solution platform to create a connected ecosystem, enhance customer experience and open up new revenue streams, according to Suresh Khatanhar, Deputy Managing Director (DMD). In an interaction with BusinessLine, Khatanhar emphasised that retail banking is a growth story whose potential has not been unearthed fully. - Business Line

🍒 IRDAI extends validity of Covid-19 specific policies till March next : In the wake of concerns over possible third wave of the pandemic, the insurance regulator has extended the validity of Covid19 specific policies, Corona Kavach and Corona Rakshak, till March 31, 2022. As per the current guidelines, the validity of these policies will expire on Sept 30,2021. However, in the circular issued on Monday, the Insurance Regulatory and Development Authority of India (IRDAI) has permitted general, health and life insurers to offer and renew the policies for six more months till end of the fiscal year 2020-21. - Business Line

🍒 NFRA eyes larger role, wants to be regulator for entire gamut of financial reporting : Audit regulator National Financial Reporting Authority (NFRA) wants to be positioned as a regulator for the entire gamut of financial reporting, covering all processes and participants in the financial reporting chain.  Towards this end, NFRA has “requested” its Technical Advisory Committee (TAC) to come up with draft proposals in this regard. This has been revealed as part of one of the conclusions made by NFRA to the 19 specific questions arising from the recommendations of the TAC report of March 2021, which formed the basis of a consultation paper issued by the audit regulator in June. - Business Line

🍒 PayU now exploring small-ticket products for underserved, says Anirban Mukherjee : Having struck the largest fintech deal in the country with the acquisition of BillDesk, PayU India is now looking to explore small-ticket financial offerings and embedded finance for gig workers.  The company is currently piloting credit offerings for the SMB segment, Anirban Mukherjee, CEO, PayU India, said. “Our goal is to become one of the leading payment companies by innovating digital credit and payments through partnerships and building together a full ecosystem of various financial services. On the digital credit front, we have already bought PaySense and merged it with LazyPay. We are at present experimenting with SMB credit and revolving credit. The demand is massive, and the segment is underserved,” Mukherjee told BusinessLine. - Business Line

🍒 Paytm Payments Bank launches India’s first FASTag-based metro parking facility : Paytm Payments Bank Ltd (PPBL) has enabled the country’s first FASTag-based metro parking facility in partnership with Delhi Metro Rail Corporation (DMRC).   As an acquiring bank for the parking facility at the Kashmere Gate metro station, PPBL will facilitate the processing of all FASTag based transactions for cars having a valid FASTag sticker, thus eliminating the hassle of stopping and paying cash at the counter. Additionally, Paytm Payments Bank has enabled a UPI-based payment solution for 2-wheelers entering the parking site, thus digitizing the entire parking payments at the site. - Business Line

🍒 Small merchants now more open to cashless payment methods, reveals Amex India survey : Indian customers have started thinking about the community at large and are willing to shop from small merchants so as to support revival of small businesses in these pandemic times, a top Amex India official said on Monday. This has come out in the recent survey commissioned by American Express to examine the impact of the pandemic on the country’s small businesses, and their plans for business continuity for adopting new approaches aligned with changing consumer preferences. - Business Line

🍒 RBI announces opening of third cohort under Regulatory Sandbox : The Reserve Bank of India on Monday announced the opening of the third cohort under the Regulatory Sandbox. The application for the third cohort may be submitted from October 1 to November 14, 2021, it said. The theme for the third cohort is MSME lending. - Business Line

🍒 Revised PSL target: Large UCBs to take hard look at ‘co-operative’ structure : Large urban co-operative banks (UCBs) such as Saraswat Co-operative Bank and SVC Co-operative Bank may take a hard look at their co-operative structure in the backdrop of the steep priority sector lending (PSL) target prescribed by the Reserve Bank of India (RBI). UCBs have to increase their PSL portfolio – comprising loans to agriculture, micro, small and medium enterprises, export credit, education, housing, social infrastructure, among others – so that it accounts for 75 per cent of their advances by March 2024. - Business Line

🍒 DBS partners SWIFT for real-time cross-border payment tracking : DBS has launched real-time online tracking for cross-border collections for businesses in India in partnership with SWIFT Global Payments Innovation (gpi), the bank said on Monday. DBS said it is the first bank in India and Asia-Pacific to offer this service to clients, which is expected to benefit close to 4,000 corporate and small business clients in India, with numbers expected to grow further. - Live Mint

🍒 Banks may classify ₹35,000  cr  loans  to Srei as NPA in Q2 : Banks are preparing to classify loans worth ₹35,000 crore made to Srei group as non-performing assets (NPA) in the September quarter after an appeals tribunal cleared the hurdles in this respect last week. On 7 September, the National Company Law Appellate Tribunal (NCLAT) set aside a 30 December 2020 order issued by the Kolkata bench of the National Company Law Tribunal which said that any non-payment of dues by SREI Infrastructure Finance and SREI Equipment Finance will not be recognised as an event of default, till a scheme of arrangement is signed by all creditors, which included its lenders as well as bond holders. While many banks have already downgraded loans to Srei Equipment Finance Ltd and Srei Infrastructure Finance Ltd as stressed loans in the previous quarter, accelerated provisioning will be made in the current quarter. - Live Mint

🍒 NBFC, payment system operators can submit requests with RBI for Aadhaar e-KYC licence : The RBI on Monday said that NBFCs and payment system operators seeking to obtain Aadhaar e-KYC authentication licence can submit the application with the central bank. In May 2019, the finance ministry had come out with a detailed procedure for processing of applications (under the PML Act) for use of Aadhaar authentication services by entities other than banking companies. - financial express

🍒 Gold prices marginally fall to Rs 47,059/10 gm on dollar uptick; silver crashes Rs 1,191 a kg : Gold prices fell for the third consecutive day by Rs 100 to Rs 47,059 per 10 gram in the Mumbai retail market on firm dollar and subdued global cues. The yellow metal traded in a tight range as investors await the US Fed policy outcome next week.  The price of 10 gram, 22-carat gold in Mumbai was Rs 43,106 plus 3 percent GST, while 24-carat 10 gram stood at Rs 47,059 plus GST. The 18-carat gold is quoted at Rs 35,294 plus GST in the retail market. Silver prices tumbled by Rs 1,191 to Rs 62,876 per kg against its closing price on September 9. 

🍒 Rupee slumps 18 paise to close at 73.68 against US dollar  : The Indian rupee fell 18 paise to close at 73.68 (provisional) against the US dollar on Monday, tracking a strong American currency in the overseas market and muted trend in domestic equities. At the interbank foreign exchange market, the local currency opened at 73.63 and dropped to a low of 73.73 in the day trade. The domestic unit finally settled at 73.68 against the greenback, down 18 paise over its previous close.

🍒 Suryoday Small Finance Bank soars 20% on reports of merger talks : Suryoday Small Finance Bank (SSFB) shares soared 20 per cent on Monday to close at ₹179.40 apiece against the previous close of ₹149.50 on BSE on reports that the bank and Clix Group are in the merger talks. This move comes in the backdrop of the proposed amalgamation of Clix Group (comprising Clix Capital Services Pvt Ltd and Clix Finance India Pvt Ltd) with the erstwhile financially distressed Lakshmi Vilas Bank (LVB) falling through last year. - Business Line

🍒 Sensex down 127 points at closing, Nifty below 17,400 : The BSE Sensex closed at 58,177.76, down 127.31 points or 0.22 per cent. It hit an intraday high of 58,314.64 and a low of 57,944.63. The Nifty 50 closed at 17,355.30, down 13.95 points or 0.08 per cent. It hit an intraday high of 17,378.35 and a low of 17,269.15. The breadth of the market remained positive, with as many as 1,719 stocks advancing on the BSE, compared to 1,544 stocks that were declined while 205 remained unchanged.  Coal India, Hindalco, Kotak Bank, Tata Steel and BPCL were the top gainers on the Nifty 50 while Reliance, ICIC Bank, SBI Life, Hindustan Unilever and HDFC Bank were the top laggards.