Tag: Banking

RBI asks banks to provide sufficient details in passbooks

RBI asks banks to provide sufficient details in passbooks

23/06/2017 13:01

The RBI has said that it has asked banks to provide sufficient details of transactions in the passbooks and statements of accounts so that customers can cross-check them.

As per reports, earlier, the Reserve Bank had advised the banks to avoid unreadable entries in passbooks/statements of account and ensure that brief, intelligible particulars are invariably entered with a view to avoiding inconvenience to depositors.

Commenting on the issue, a RBI Official told the media, “It has come to RBI’s notice that many lenders still do not provide adequate details. In the interest of better customer service, it has been decided that banks shall at a minimum provide the relevant details in respect of entries in the accounts.”

As per reports, the details to be provided by banks in passbooks, include name of the payee, mode of transaction, nature of the charges (like fee/ commission/ fine/ penalty), and loan account number.

Federal Bank launches Rs 2,000-cr QIP

Federal Bank launches Rs 2,000-cr QIP

22/06/2017 11:32

South-based Federal Bank said that it has launched a institutional sale of shares, aiming to raise around Rs 2,000 crore or USD 310 million in capital. There is an option to upsize the issue by Rs 500 crore or USD 77 million, sources said.

In a regulatory filing, the bank said its credit committee, and investment and raising capital committee has authorised the opening of the qualified institutional placement (QIP) of shares on June 21.

The floor price has been set at Rs 117.04 per share and it can sell shares at a discount of not more than 5 per cent, it said in the filing.

Investment banking sources put the indicative price band of the share sale at between Rs 111.50 to Rs 116.70.

The bank is looking at issuing between 214.2 million to 224.2 million shares in the issue.

The bank scrip shed 1.81 per cent to close at Rs 116.85 at the BSE, as against a 0.04 per cent correction in the benchmark.

German lender Deutsche Bank, Kotak Mahindra Capital and IIFL Holdings are bankers to the issue.

Meanwhile, shares of the Bank were trading at Rs 118.20 apiece, up 1.16 per cent from the previous close at 11:0 hours on BSE.

Axis Bank signs pact to sell stake in Mswipe Technologies

Axis Bank signs pact to sell stake in Mswipe Technologies

21/06/2017 16:04

Private sector lender Axis Bank Ltd on Wednesday said it has inked a pact to sell 1,90,500 equity shares of Mswipe Technologies Pvt Ltd (Mswipe) for a total cash consideration of Rs 80.94 crore.

“The bank has signed an agreement for sale of 1,90,500 equity shares of face value of Rs 1 per share of Mswipe Technologies Private Limited (‘Mswipe’ or the ‘Entity’), at Rs 4,249 per share, resulting in a total cash consideration of Rs 80.94 crores,” Axis Bank Ltd said in a filing to the Bombay Stock Exchange on June 21, 2017.

Mswipe Technologies is primarily engaged in the business of merchant acquiring services.

The bank further said that, the transaction will be completed not later than July 2017.

The private sector lender has divested 8 per cent holding of Mswipe Technologies Pvt Ltd

Meanwhile, shares of the bank closed at Rs 507.55 apiece, down 0.83 per cent, from previous close on BSE.

RBI likely to step up forex buying; rate cut on cards

RBI likely to step up forex buying; rate cut on cards

15/06/2017 17:09

The Reserve Bank is expected to step up forex buying and may go for a 25 basis points cut in interest rate on August 2, says a report.

According to the US economists of global financial services major Bank of America Merrill Lynch (BofAML), going by the latest Federal Open Market Committee (FOMC) meeting, the US Fed is likely to withdraw liquidity from September.

“We expect the RBI to recoup forex reserves with our US economists now expecting the Fed to withdraw liquidity from September,” BofAML said in a research note.

On RBI’s policy stance, the report said, a 25 basis points or 0.25 percentage point rate cut in August is likely as the next Fed hike is expected only in December.

“On balance, we continue to expect the RBI to cut 25 bps on August 2, as our US economists now expect the Fed to push out the next hike to December. Withdrawal of Fed liquidity should also contain global commodity prices and by extension, ‘imported’ inflation,” the report added.

In the monetary policy review on June 7, the RBI left key rates unchanged with Governor Urjit Patel noting that the central bank wanted to be more sure that inflation will stay subdued.

HSBC sees India growth unchanged at 7.1% this fiscal

HSBC sees India growth unchanged at 7.1% this fiscal

08/06/2017 16:20

India’s growth is likely to remain unchanged at 7.1 per cent this fiscal, as investments are low and government spending may not remain high given the fiscal consolidation path the country is treading, says a report.

“Growth numbers were marked down marginally but still remain higher than ours,” HSBC said in a research note. It further said, “we have a below-consensus view that growth will be flat at 7.1 per cent in 2017-18”.

According to the global financial services major HSBC, output gap in the country is likely to remain negative for longer period of time.

In its policy review meet yesterday, the central bank also lowered its growth forecast to 7.3 per cent, from 7.4 per cent earlier.

The report said that investment still remained low in the country, while urban wages are growing but at multi-year lows. Moreover, government spending may not remain as high given the fiscal consolidation path, and the rise in exports over the last few months are showing some signs of moderation.

HSBC said though “rural growth could come in high if rains are strong, but that would just about offset the weakness from other sectors. This means that the output gap is likely to remain negative for longer”.

Regarding RBI’s monetary policy stance, the report said a prolonged pause is likely with risks of a rate cut in August.

“Given that we believe inflation expectations have fallen into a virtuous cycle, anchoring inflation at around 4 per cent, we do not find a pressing need for the RBI to either cut or hike policy rates by a large quantum,” it said.

However, there are risks of some moderate easing later in the year, particularly a 25 bps rate cut in August, if the current softness in inflation turns out to be durable, it added.

HSBC sees India growth unchanged at 7.1% this fiscal
08/06/2017 16:20

India’s growth is likely to remain unchanged at 7.1 per cent this fiscal, as investments are low and government spending may not remain high given the fiscal consolidation path the country is treading, says a report.

“Growth numbers were marked down marginally but still remain higher than ours,” HSBC said in a research note. It further said, “we have a below-consensus view that growth will be flat at 7.1 per cent in 2017-18”.

According to the global financial services major HSBC, output gap in the country is likely to remain negative for longer period of time.

In its policy review meet yesterday, the central bank also lowered its growth forecast to 7.3 per cent, from 7.4 per cent earlier.

The report said that investment still remained low in the country, while urban wages are growing but at multi-year lows. Moreover, government spending may not remain as high given the fiscal consolidation path, and the rise in exports over the last few months are showing some signs of moderation.

HSBC said though “rural growth could come in high if rains are strong, but that would just about offset the weakness from other sectors. This means that the output gap is likely to remain negative for longer”.

Regarding RBI’s monetary policy stance, the report said a prolonged pause is likely with risks of a rate cut in August.

“Given that we believe inflation expectations have fallen into a virtuous cycle, anchoring inflation at around 4 per cent, we do not find a pressing need for the RBI to either cut or hike policy rates by a large quantum,” it said.

However, there are risks of some moderate easing later in the year, particularly a 25 bps rate cut in August, if the current softness in inflation turns out to be durable, it added.

Federal Bank plans Rs 4k cr fund raise from home & foreign market

Federal Bank plans Rs 4k cr fund raise from home & foreign market

07/06/2017 16:02

Federal Bank plans to raise up to Rs 4,000 crore by issuing various debt securities in tranches from domestic and overseas markets, reported PTI.

The bank said it will seek approval of the shareholders for the fund raise plan at its forthcoming annual general meeting.

The board of directors of the bank have approved the proposal and nod from the shareholders is pending.

The bank said it will seek shareholders’ approval for “raising of funds by way of issuance of debt securities including but not limited to non-convertible debentures, tier II bonds, long term bonds (infrastructure and affordable housing), masala bonds, green bonds up to Rs 4,000 crore in Indian currency in one or more tranches in domestic/overseas market on private placement.”

HDFC Bank to raise Rs 50K cr via infra bonds, debt securities

HDFC Bank to raise Rs 50K cr via infra bonds, debt securities

21/04/2017 15:50

HDFC Bank said that it will raise up to Rs. 50,000 crore through debt securities and infrastructure bonds over the next 12 months.

In a filing to the BSE, HDFC Bank said the board has approved the issue of debt instruments, Tier II bonds and long-term infrastructure bonds worth up to Rs. 50,000 crore.

The securities would be issued on a private placement basis, it said, adding that the approval of shareholders for the issuance would be sought at the ensuing annual general meeting.

The bank further said that it will pay a dividend of Rs 11 on every equity share of Rs. 2 each out of its net profit for the financial year ended March 31, 2017.

HDFC Bank reported a net profit of Rs. 14,549 crore, a growth of 18.3 per cent in 2016-17 over the previous financial year.

The board has also approved the reappointment of Shyamala Gopinath as part-time non-executive chairperson of the bank for the period January 2, 2018, to June 19, 2019.

Gopinath had served as Deputy Governor at the Reserve Bank till June 2011 and handled key portfolios, including banking regulation, financial markets and exchange rate.

Central Bank of India Dec-qtr loss narrows to Rs 605.7 cr

Central Bank of India Dec-qtr loss narrows to Rs 605.7 cr

06/02/2017 13:11

Country’s one of the oldest and largest commercial lender Central Bank of India has reported that its standalone net loss has narrowed to Rs 605.7 crore during the October-December quarter ended December 31, 2016.

The bank had posted standalone net loss at Rs 836.62 crore in corresponding quarter of previous fiscal, said Central Bank of India in a filing to the Bombay Stock Exchange.

Total income of the bank, however, fell by 1.8 per cent at Rs 6,787.87 crore in Q3 FY17 from Rs 6,911.62 crore in Q3 FY16.

During the quarter, provisions (other than tax) and contingencies declined to Rs 1,486 crore from Rs 1,661 crore in previous quarter and from Rs 1,499 crore in corresponding quarter of last fiscal.

During the quarter under review, the bank’s gross non-performing assets increased to 14.14 per cent of total loans, compared with 8.95 per cent in the year-ago quarter. Net NPA of the bank too grew to 8.54 per cent against 5.30 per cent in corresponding period last year.

Meanwhile, shares of the bank were trading at Rs 89.35 apiece, up 0.85 per cent, from previous close on BSE at 13:16 hours.

RBI lowers required ratings, minimum ticket size of CPs

RBI lowers required ratings, minimum ticket size of CPs

03/02/2017 11:40

In its bid to widen the bond market, the Reserve Bank has relaxed commercial paper (CP) issuances by lowering the minimum required credit rating to A3 from A2 as well as the ticket size from Rs 10 lakh to Rs 6 lakh. “CP shall be issued in minimum denomination of Rs 5 lakh and multiples of Rs 1 lakh…the minimum credit rating for a CP shall be ‘A3’ as per rating symbol and definition prescribed by Sebi,” the Reserve Bank said in a new notification under the Commercial Paper Directions 2017, issued by its financial markets regulation department.

Earlier minimum required rating was A2, while the minimum ticket size was Rs 10 lakh. It can also be noted that many small companies have been facing difficulties in raising funds from the money market as they do not enjoy good credit ratings and this move will help such companies raise debt capital.

The notification said eligible issuers shall obtain credit rating for issuance of CP from at least two Sebi-registered rating agencies, and should adopt the lower of the two ratings.

It also said CP may be issued at a discount to face value but CPs are an unsecured money market instrument issued in the form of a promissory note. The original tenor of a CP lies between seven days to one year. CPs are held in a dematerialised form through any of the depositories approved by and registered with Sebi.

RBI also made it mandatory to report secondary market trading and settlement within 15 minutes of the trade to the Financial Market Trade Reporting and Confirmation Platform (F-Trac) of Clearcorp Dealing System India.

It also said CPs can be bought back in full or part, at prevailing market price and the buyback offer should be extended to all investors in the CP issue and should not be made before 60 days from the date of issue. Once bought back CPs shall stand extinguished.

The apex bank further said the issuer has to ensure that the proceeds should be used to finance only current assets and operating expenses. The end use must be explicitly disclosed in the offer document. The issuer should also furnish the board resolution authorising the company to borrow through CP to IPAs (issuing and paying agents).

The issuer also has to submit a certificate from CEO/CFO to IPAs on quarterly basis that the CP proceeds are used for the disclosed purposes only.

Post Session: Sensex zooms 330 pts on F&O expiry, Nifty settles above 8,600; Kotak Bank jumps 7%

25/01/2017 16:11

The Indian equities continued their gaining streak for the third straight session on expiry of January series F&O contracts as banking stocks extended rally on strong quarterly results, tracking firm cues from Asian peers. Private sector lender Kotak Mahindra Bank surged 7 per cent after it reported a growth of 34 per cent in its consolidated net profit for the October-December quarter of 2016 at Rs 1,267 crore. Besides, the investors also remained optimist over Union Budget 2017-18, hoping that it would sops for some sectors to help spur economic growth.

The 30-share barometer index of Bombay Stock Exchange, Sensex closed trade at 27708.14, up by 332.56 points or by 1.21 per cent, and the NSE Nifty ended at 8602.75, up by 126.95 points or by 1.5 per cent.

During the day’s trade, the BSE Sensex touched intraday high of 27736.83 and intraday low of 27439.68, while the NSE Nifty touched intraday high of 8612.6 and intraday low of 8493.95.

The top gainers of the BSE Sensex pack were Housing Development Finance Corporation Ltd. (Rs. 1336.00,+4.31%), Adani Ports & Special Economic Zone Ltd. (Rs. 303.85,+3.61%), Hero MotoCorp Ltd. (Rs. 3232.00,+3.15%), Axis Bank Ltd. (Rs. 463.70,+2.76%), Coal India Ltd. (Rs. 316.10,+2.13%), among others.

On the flip side, Wipro Ltd. (Rs. 473.45,-1.59%), Bharti Airtel Ltd. (Rs. 311.55,-1.52%), Reliance Industries Ltd. (Rs. 1016.70,-1.06%), Sun Pharmaceutical Industries Ltd. (Rs. 636.10,-0.94%), Infosys Ltd. (Rs. 936.65,-0.89%), were among top losers on BSE.

On the sectoral front, financial and consumer durables indices emerging as top gainers, adding as much as 2.33 per cent and 2.26 per cent respectively.

The market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 3105, shares advanced were 1575 while 1310 shares declined and 220 were unchanged.