Banking current affairs

Banking current affairs 

🍒    NPCC introduces CVV-less payments for tokenised cards : RuPay has now introduced the CVV (Card Verification Value) free payment experience for its debit, credit and prepaid cardholders who have tokenized their cards on the merchant application or webpage, said The National Payments Corporation of India (NPCI) on Monday . This new experience is meant to ensure that the cardholder will not have to reach out to their wallet or remember any card details, if they have saved (tokenized) their card on the ecommerce merchant which supports this feature, NPCI said in a statement. Tokenization is a simple technology to secure card transactions without sharing the clear or real card details with the merchants. - economic times

🍒    KVB posts its highest-ever annual net profit at ₹1,106 cr in FY23 : Karur Vysya Bank has reported its highest-ever annual net profit and a significant improvement in asset quality for the year FY23. The old private sector bank’s board has recommended a dividend of .₹2 per equity share of face value ₹2 each for the year ended March 31, 2023. KVB has posted a 64 per cent increase in net profit at ₹1,106 crore for the year ended March 31, 2023(₹673 crore), buoyed by a strong increase in net interest income and other income amid higher provisions.  The operating profit of the bank stood at ₹2,476 crore in FY23 (₹1630 crore) . - Business Line

🍒    RBI imposes monetary penalty on Mizoram Rural Bank, Tripura Gramin Bank for rule violations : The Reserve Bank of India (RBI) announced on May 15 that it has imposed a monetary penalty on Mizoram Rural Bank  and Tripura Gramin Bank for violations of rules. The central bank imposed Rs 5 lakh penalty on Mizoram Rural Bank and Rs 2 lakh penalty on Tripura Gramin Bank release said. According to the release, the penalty was levied on both banks as it failed to categorize certain loan accounts as non-performing in line with the Income Recognition and Asset Classification (IRAC) norms. Upon issuing a notice to the bank regarding the matter, the bank was asked to provide a justifiable reason as to why a penalty should not be imposed for its non-compliance with the directions. - moneyconrol.

🍒    Insurance industry's gross direct premium to cross Rs 3 lakh crore by FY25: ICRA : The insurance industry is expected to net gross direct premium income (GDPI) of about Rs 3 lakh crore by FY25 as against Rs 2.4 lakh crore at the end of March 2023, a report said. Private insurers' combined ratio is likely to improve and Return of Equity (RoE) is expected at 11.2-12.8 per cent in FY2024 and 12.5-13.9 per cent in FY2025, ICRA said in a report. Most PSU insurers are expected to witness high combined ratio resulting in net losses, though it will be lower compared to last few years, it said. Moreover, it said, the capital requirement of three PSU general insurers (excluding New India) is estimated at a sizeable Rs 172-175 billion to meet solvency of 1.50 times as of March 2024, assuming 100 per cent forbearance from the regulator. - Moneycontrol.

🍒    UCBs seek hike in cap on home loans, separate limit for commercial realty : Urban Co-operative Banks (UCBs) have sought an upward revision in the ceiling for housing loans from the current limit of 15 percent of net liabilities and the creation of an independent limit for commercial real estate exposure. The chief executives of select Urban Banks, who met RBI governor Shanktikanta Das last week, also urged the Central bank to enhance the ceiling on gold loans from Rs two lakh to Rs five lakh under the bullet repayment scheme.About the revision in norms for home loans, the National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) said the existing limits on individual housing loans have been doubled for tier-I and tier-II banks. But the sectoral exposure limit of 15 per cent to housing and commercial real estate has remained unchanged. - Business Standard

🍒    ESMA tones down CCIL stand in draft to RBI : The European Securities and Markets Authority (ESMA) has proposed less-stringent rules on inspecting and penalising Indian financial market institutions such as the Clearing Corporation of India (CCI) to enable unhindered trading by European banks, said two people familiar with the matter. Under the new suggested rules sent to the Reserve Bank of India (RBI), ESMA will keep the former in the loop. Action against central counterparty companies won't be taken without the knowledge of the Indian regulator, according to the people cited above.  - Economic Times

🍒    Banks, ARCs spar over key document, indemnity clause : India's high-street banks and stress loan players - also known as asset reconstruction companies (ARCs) - are locked in a cold tussle for the last two months. Large banks want that the ARCs which acquire loans to give an undertaking that they have no links whatsoever with the promoters of defaulting borrower companies - a legal declaration that would become particularly significant if any such company faces bankruptcy and is auctioned to a new owner. Some of the big lenders are also refusing to sign the standard indemnity they give on sale of sticky loans to ARCs. Many fear this could become a deal breaker in the stressed loan market. - economic times

🍒    HDFC to raise up to ₹8,000 crore via 5-year bonds at 7.7% : Housing Development Finance Corporation (HDFC) is planning to raise up to ₹8,000 crore via the issue of 5-year bonds carrying a coupon of 7.7 per cent, the company informed the exchanges on Monday. The issue has a base size of ₹3,000 crore and the option to retain oversubscription of up to ₹5,000 crore.The senior unsecured non-convertible debentures (NCDs) will be issued on a private placement basis, and are set to mature on May 16, 2028. The bonds are rated ‘AAA’ by CRISIL and ICRA. The objective of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilized for financing/ refinancing the housing finance business requirements,” HDFC said. Minimum subscription to the issue has been set at 100 NCDs of ₹1 lakh each. Axis Bank is the arranger to the issue. - business line

🍒    Suryoday Small Finance Bank reports ₹39-crore net profit in Q4FY23 : Suryoday Small Finance Bank (SSFB) reported a net profit of ₹39 crore in the fourth quarter against a net loss of ₹48 crore in the year-ago period on the back of a healthy growth in net interest income and other income and sharp decline in loan-loss provisions. Net interest income rose 43 per cent year-on-year (yoy) to ₹210 crore (₹146 crore in the year-ago quarter). Other income jumped 70 per cent yoy to ₹34 crore (₹20 crore).Net interest margin improved to 10.4 per cent against 7.8 per cent in the year-ago quarter. Loan-loss provision declined 54 per cent yoy to ₹51 crore (₹112 crore). - Business Line

🍒    IIFCL plans to raise ₹16,000 crore this fiscal to fund business growth, says MD Jaishankar : IIFCL, a state-owned infrastructure lender, said that it recorded its “highest-ever” standalone net profit at ₹1,076 crore in 2022-23. This was more than double the net profit of ₹514 crore recorded in previous fiscal.  Encouraged by the strong show, IIFCL is now aiming to double its net profit for current fiscal to over ₹2,000 crore, P R Jaishankar, Managing Director, told businessline. For the current fiscal, IIFCL is eyeing disbursements target of ₹17,000 crore as against ₹13,826 crore in 2022-23. - business line

🍒    Sensex, Nifty climb to five-month highs on FII inflows, gains in realty, FMCG shares : Rising for the second straight day, the 30-share BSE Sensex climbed 317.81 points or 0.51 per cent to settle at 62,345.71, the highest closing level since December 14. During the day, it rallied 534.77 points or 0.86 per cent to 62,562.67. The broader NSE Nifty gained 84.05 points or 0.46 per cent to end at 18,398.85 points, a level not seen since December 20, 2022. - Business Line

🍒    Rupee falls 6 paise to 82.24 against US dollar : The rupee depreciated 6 paise to 82.24 against the US dollar in early trade on Monday, weighed down by the strength of the American currency in the overseas market. Forex traders said the rupee was trading in a narrow range as the strength of the American currency was negated by a firm trend in domestic equities and easing crude oil prices. At the interbank foreign exchange, the domestic unit opened weak at 82.22 against the dollar, then fell to 82.24, registering a decline of 6 paise over its last close. - Business Line

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