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☕  22.06.2023 : Today's Banking / Financial News at a Glance 

🍒    RBI reshuffles portfolios of deputy governors as MK Jain retires : The Reserve Bank of India (RBI) on June 21 reshuffled portfolios of its deputy governors after the exit of MK Jain from the post of deputy governor. Jain's term expired on June 21. The central bank allotted the Department of Co-ordination, Corporate Strategy and Budget Department, Economic and Policy Research, Statistics and Information Management, Deposit Insurance and Credit Guarantee Corporation, and Financial Markets Operations and Regulations to Michael Patra.Further, it also assigned the Department of International, Monetary Policy and Secretary to Patra. M Rajeshwar Rao got the Department of Consumer Education and Protection, Regulations, Supervision, Communication, Enforcement, Inspection, legal, Risk Monitoring, and Financial Inclusion and Development. Similarly, other departments such as Central Security Cell, Right to Information (RIA) Division, Currency Management, External Investments & Operations, Government and Bank Accounts, IT, Payments and Settlements System, HRM, Foreign Exchange, Internal Debt Management, Premises, and Rajbhasha will be handled by T Rabi Sankar. All these portfolios of the deputy governors will be effective from June 22. - moneycontrol.

🍒    RBI pushes for stronger governance at public sector banks : The Reserve Bank of India on Monday exhorted public sector banks to strengthen their boards and increase focus on managing risk. At a meeting with senior management of PSBs in the capital, RBI Governor Shaktikanta Das asked lenders to strengthen governance so that they are able to identify risks early. “The Governor also emphasised the need for banks to ensure continued financial and operational resilience,” sad a statement from the RBI. The theme of the meeting was ‘Governance in Banks - Driving Sustainable Growth and Stability’.Bankers did not comment on deliberations during the day-long meeting. - Business Line

🍒    Chairman posts vacant in six of 11 public sector banks, some for two years : At a time when the Reserve Bank of India has been emphasising on governance in commercial banks, six out of 11 public sector banks do not have non-executive chairman. Some of these posts have been lying vacant for more than two years. UCO Bank, Bank of Maharashtra, Bank of India, Indian Overseas Bank, Indian Bank and Central Bank of India do not have non-executive chairman. UCO Bank and Bank of Maharashtra never had a part time chairman since the process of splitting the chairman and managing director’s post started 2015.Moreover, there are not many independent directors in most public sector banks. In most banks board members would include the MD & CEO, and the executive directors–some of the banks have three to four EDs–RBI and government nominee director, shareholder director and one, or in some cases two independent directors. The issue of vacant chairman positions in public sector banks was raised during RBI governor’s interaction with the board members of public sector banks last month. - Business Standard.

🍒    Compromise with wilful defaulters to help banks recover dues much faster : The Reserve Bank of India on Monday clarified that banks have been allowed for compromise settlement to wilful defaulters and fraudulent accounts to help them to recover the money without much delay. “The primary regulatory objective is to enable multiple avenues to lenders to recover the money in default without much delay. Apart from the time value loss, inordinate delays result in asset value deterioration which hampers ultimate recoveries,” RBI said in the frequently asked questions section released today. “The imperatives for lenders are no different when it comes to recovery from borrowers classified as fraud or wilful defaulter,” the FAQ said. - Business Standard

🍒    Public sector banks, ICAI to set up common platform for balance confirmations : Statutory auditors may have cause for cheer as a new mechanism in the form of a common balance confirmation portal is now being put in place to provide “external confirmation of balances” for aiding the audit of financial statements.  Over the years, auditors have been using “external confirmations” to obtain balance confirmations in respect of accounts receivables, accounts payables, bank balances, loans, investments or inventories held by third parties, etc. from various parties, including banks. Put simply, external confirmations means audit evidence obtained as a direct written response to the auditor from a third party (the confirming party), in paper form, or by electronic or other medium.  - Business Lines

🍒    Axis Bank's one-view feature on mobile app offers access to multiple bank accounts on single platform : Most depositors have multiple bank accounts and it’s difficult for them to track the balances and spend from these accounts. To simplify managing finances for customers, Axis Bank has launched a one-view feature on its mobile app. It provides access to multiple bank accounts on a single platform. The bank has introduced this banking feature by leveraging the account aggregator ecosystem. “This proposition offers a seamless banking experience and provides convenience to customers by eliminating the need for multiple mobile banking applications. We believe this is transformational and a step further towards the future of banking,” says Sameer Shetty, President & Head – Digital Business & Transformation, Axis Bank.- moneycontrol.

🍒    Madhivanan Balakrishnan appointed ED of IDFC FIRST Bank : Madhivanan Balakrishnan has been elevated as the Executive Director and Chief Operating Officer of IDFC First Bank following the RBI's approval, a statement said on Wednesday. His elevation was recommended by the nomination and remuneration committee for a period of three years, IDFC FIRST Bank said in the statement. Madhivanan has been a part of the bank since 2019 and is currently serving as the Chief Operating Officer. IDFC FIRST Bank recorded a profit after tax of Rs 2,437 crore in 2022-23, with capital adequacy of 16.82 per cent. - economic times

🍒    An NPS compromise, finally? Centre likely to offer assured base pensions, say sources : The Central government will likely assure its employees a minimum pension of 40%-45% of their last drawn salary by altering the current market-linked pension scheme to assuage some holdout states, two government officials told Reuters. The move comes after the government set up a committee in April to review the pension system in a year peppered with state elections, leading up to the national elections in 2024, when Prime Minister Narendra Modi will seek a rare third term. Modi has been forced to re-look at the current pension system, adopted after a significant fiscal reform in 2004, as some states switched back to the older, fiscally straining system of fully funding a guaranteed pension. - economic times

🍒    SBI Wecare special senior Citizens FD scheme extended : State Bank of India (SBI) has extended its special senior citizen scheme dubbed SBI WeCare which offers higher interest rates to senior citizens on tenures between 5 years to 10 years. According to the SBI website, “SBI takes pride in its association with Senior Citizens and introduces a new Deposit Scheme "SBI WECARE' protecting their income by offering additional interest on Term Deposits.”SBI launched the "SBI WECARE" special FD scheme in 2022 to secure senior citizens' income by offering higher interest on term deposits.- economic times

🍒    SBI Amrit Kalash special FD scheme with higher interest rate extended : State Bank of India (SBI) has extended its 'Amrit Kalash' special fixed deposit scheme for retail customers. According to the SBI website, this 400-day term deposit offers a rate of 7.1% for regular customers and 7.6% for senior citizens. As per the SBI website, “The specific tenor scheme of “400 days” (Amrit Kalash) at Rate of Interest of 7.10 % w.e.f. 12- April- 2023. Senior Citizens are eligible for rate of interest of 7.60%.” This SBI special FD scheme also includes premature withdrawal and loan against deposit options. - Economic Times

🍒    PNB Housing Finance plans a comeback in corporate lending business : PNB Housing Finance is plotting a cautious comeback in the corporate lending segment after consciously reducing its portfolio over the last few years. The mortgage lender, which was hurt by the meltdown in real estate, is planning to resume business in construction finance for residential projects in the second half of the fiscal year, returning with lessons from past experience. Monitoring in the real estate industry is also stronger now. "We wanted to bring down non-performing assets (NPA) in the corporate loans book. Now as things are sorted out, we plan to restart lending to builders with retail linkage. But we are in no hurry. We are planning it later in the year," PNB Housing Finance managing director Girish Kousgi told ET. - economic times

🍒    Cooperative banks face challenges on compromise settlements, say experts : The Framework for Compromise Settlements and Technical Write-offs introduced by the Reserve Bank of India may pose policy and regulatory challenges for some cooperative banks, mainly small urban cooperative banks (UCBs), because they lack the professional expertise, experts said. A compromise settlement refers to an arrangement between a borrower and a bank, where a loan is cleared by paying a smaller amount than what is due.“UCBs and mainly some small UCBs may have issues in dealing with the compromise settlements framework as they lack professional experience on the policy front when compared to bigger UCBs,” said NS Vishwanathan, former deputy governor of the RBI who also headed a committee on cooperative banks.- moneycontrol.

🍒    HDFC Bank gains as Goldman Sachs reinstates 'buy' call, sees 21% upside\ : Shares of HDFC Bank jumped nearly 1.5 percent in the early trade on June 21, as Goldman Sachs reinstated its “buy” rating on the stock and raised its target price from Rs 1,840 to Rs 2,050 a share, a 21 percent upside from the current market price. India’s largest private sector bank is expected to emerge stronger after the merger with HDFC Limited, Goldman Sachs said in its report on June 21. It forecasts sector-leading earnings growth of 18 percent during FY23-26. This will be on the back of superior return ratios with a huge degree of earnings visibility in FY23-26. “The stock currently trades at 14.6x standalone FY24 earnings per share (EPS) estimate and is expected to continue with strong balance-sheet growth and superior profitability,” the report said - moneycontrol.

🍒    DBS, three other finance bodies fined 3.8 million Singaporean dollars for money laundering: Report : Four financial institutions, including the Singaporean lender DBS which has a strong presence in India, have been fined 3.8 Singaporean dollars for breaching anti-money laundering and anti-terrorism financing rules, a media report said on Wednesday. DBS, along with homegrown OCBC, Citibank Singapore and insurer Swiss Life Singapore of Swiss Life Group, have been jointly fined 3.8 million Singaporean dollars for their role in a matter related to the German-registered payment firm Wirecard, one of the largest financial sector scams in recent years, The Straits Times reported.- financial express

🍒    CCI approves acquisition of additional shareholding by HDFC in HDFC ERGO : The Competition Commission of India (CCI) granted approval to Housing Development Finance Corporation (HDFC) to acquire a certain additional shareholding in HDFC ERGO General Insurance Company Limited (HDFC ERGO). “The proposed combination pertains to the acquisition by HDFC Limited of certain additional shareholding of HDFC ERGO on a spot delivery basis such that HDFC Limited (after the Proposed Transaction) and the surviving amalgamated entity, i.e., HDFC Bank Limited (HDFC Bank) will hold over 50 per cent of the shareholding of HDFC ERGO in compliance with Indian banking laws,” CCI said in a statement.  - financial express

🍒    Karur Vysya Bank to focus on commercial, retail & agri loans " Private sector lender Karur Vysya Bank said it will be focusing on commercial, retail and agriculture sectors followed by corporate banking to register over 14% credit growth for FY24. “Housing loans, loan against property (LAP) and personal non- agri jewel loans will be major segments in retail while agri gold loans’ momentum will also continue,” the bank’s MD and CEO Ramesh Babu told mediapersons.In FY23, commercial sector accounted for 33% of the total advances while retail was 23%, agri 23% and corporate 21%. - financial express.

🍒    Mastercard CEO Michael Miebach joins USISPF Board of Directors :  Mastercard CEO Michael Miebach on Tuesday joined the board of directors of the US-India Strategic and Partnership Forum, according to an official announcement. "I look forward to working with USISPF to build the strategic, commercial, and people-to-people ties that will serve as the bedrock of the US-India partnership in the 21st century," Miebach said. - economic times

🍒    SMFG India Credit eyes Rs 75,000 cr loan book by FY26 : Mid-sized non-banking lender SMFG India Credit, formerly Fullerton India Credit, is looking at doubling the loan book over the next two-three years from the present Rs 36,000 crore. Japanese financial powerhouse SMFG bought a controlling 74.9 per cent stake in Fullerton in December 2021 for an undisclosed sum, and from May 2023, it was renamed as SMFG India Credit. - economic times

🍒    CMS' ATM network jumps 50 pc to over 17,500 in FY23 : CMS Info Systems, one of the largest business services providers in the banking logistics and technology services space, has installed more than 50 per cent more ATMs in FY23 over the previous fiscal, taking the total number to over 17,500. This was enabled by a huge order from the state-owned Punjab National Bank to install over 5,200 ATMs across 526 locations, spanning 26 states in FY23, which it completed in the past fiscal. This addition to PNB's ATM network takes the total number of cash vending machines that CMS has installed and is being serviced to over 17,500 as of March 2023, which is a growth of over 50 per cent, a company official told PTI - economic times

🍒    HDFC Credila sale for ₹9,060 crore to be done in 15 days post approvals : Housing Development Finance Corporation (HDFC) has said that the sale of 90 per cent stake in wholly-owned subsidiary HDFC Credila, the largest PE buyout in the Indian financial services sector, will be completed in 15 business days after receiving required approvals. As per the June 19 agreement, HDFC will sell 13.3 crore shares of HDFC Credila to Kopvoorn B.V., Moss Investments, Defati Investments Holding B.V. and Infinity Partners for ₹9,060 crore. The transaction is subject to approvals from RBI and CCI. - economic times

🍒    Credit Wise Capital partners with Muthoot Capital for two-wheeler loans  : Credit Wise Capital, a non-banking financial company specialising in two-wheeler financing, and Muthoot Capital have announced a ₹400-crore co-lending partnership to digitise two-wheeler financing through Twin2 — a proprietary product of CWC.  Aalesh Avlani, Co-Founder of Credit Wise Capital, said the two-wheeler market holds great untapped potential and the partnership with Muthoot Capital aims to capitalise on that. “Together we will expand our customer base and offer enhanced financing solutions, along with a strong credit assessment framework and streamlined loan processing services.”- Business Line

🍒    Lloyds Banking Group to invest in new technology centre in Hyd : The UK based Lloyds Banking Group will be investing in a new technology centre in Hyderabad. The Group, which operates the UK’s largest digital bank and has over 20 million digitally active users, plans to further expand its digital capability with the opening of the new technology centre later this year.Operating as part of Lloyds Banking Group, Lloyds Technology Centre forms part of the Group’s £3 billion strategic investment over the next three years to transform its digital offering. It will initially employ around 600 highly skilled specialists in technology, data and cyber security roles as it further enhances the Group’s customer experience and builds its in-house technical capability, according to a release. - Business Line

🍒    Paytm enables digital donations at Puri Jagannath temple during Rath Yatra : One97 Communications Limited (OCL), which owns the Paytm brand, said on Tuesday that it is enabling devotees visiting Puri’s Jagannath temple to make donations using Paytm UPI and Paytm UPI Lite by scanning its QR code.   On occasion of the Rath Yatra, the company is offering a VIP Darshan to select devotees making donations through the Paytm app until June 25. Users can win VIP Darshan for a second lucky draw which will be announced on June 25 for the Darshan on June 28. - Business Line

🍒    Piramal exits Shriram Finance for ₹4,824 crore, GIC Singapore picks up stake : Piramal Enterprises on Wednesday sold its entire 8.34 per cent stake, or 3.12 crore shares, of Shriram Finance via multiple block deals on the National Stock Exchange. All the transactions were made at ₹1,545 per share against the floor price of ₹1,483 and Tuesday’s closing price of ₹1,559.65. This translated to a deal value of around ₹4,824 crore.Following the block deals, shares of Shriram Finance surged 15 per cent, touching its upper band at a record high of ₹1,793.55. It later pared some gains to close 11.3 per cent higher at ₹1,736.00. - Business Line

🍒    LIC Mutual Fund set to acquire schemes of IDBI Mutual Fund : LIC Mutual Fund (LICMF) is all set to take over the schemes of IDBI Mutual Fund (IDBIMF). IDBIMF has sent a letter to all unitholders of its schemes to this effect. The communication also specifies the proposed change in sponsorship, trusteeship, management, and administration of the IDBIMF schemes. Since these changes are fundamental in nature, as per norms, the unitholders of IDBIMF are also offered an exit option without any exit load. - Business Line

🍒    Sensex registers new peak; Nifty hits fresh high on closing day basis : The S&P BSE Sensex also managed to hit a record high of 63,588 in morning trade. However, it climbed a shade lower at 63,523.15, a gain of 195.45 points or 0.31 per cent over the previous day’s close. On December 1 last year, the Sensex had hit its record peak of 63,583.07 and the Nifty at 18,887.60. - Business Line

🍒    Rupee falls 1 paisa to 82.10 against US dollar : The rupee slipped by 1 paisa to 82.10 against the US dollar in early trade on Wednesday, tracking the strong dollar and withdrawal of foreign funds from domestic equities.An upward movement in crude price also weighed on the local unit, forex traders said. At the interbank foreign exchange, the domestic unit opened lower at 82.13 but regained further to touch the peak of 82.07. The currency later turned flat and traded at 82.10 against the greenback, registering a fall of 1 paisa from its previous close. - Business Line

🍒    Gold hovers near 3-month low on Powell comments : Gold was near a three-month low hit earlier on Wednesday and on track for a fourth straight daily decline, while traders assessed U.S. Federal Reserve Chair Jerome Powell's congressional testimony. Spot gold was down 0.3% at $1,929.51 per ounce by 11:10 a.m. ET (1510 GMT) after dropping as much as 0.9% earlier. U.S. gold futures fell 0.4% to $1,940.60. - moneycontrol.

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