BANKING

British insurer Aviva's India unit is under scrutiny for alleged tax evasion between 2017 and 2023. The company is accused of using fake invoices and covert cash payments to sales agents, potentially evading $5.2 million in taxes. Aviva is cooperating with authorities in their investigation.

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Visa and the Tourism & Hospitality Skill Council (THSC) have agreed to a three-year partnership worth up to USD 1 million to train at least 20,000 Indian youths in tourism-related skills. The initiative, involving the Ministry of Skill Development & Entrepreneurship, targets youths in 10 states to enhance tourism services in India.

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Mastercard Inc. aims to combat online payment fraud by expanding the use of token technology to replace credit card numbers and passwords with biometric data such as fingerprints and face scans. The company is processing 1 billion tokenized transactions weekly and plans to tokenize all e-commerce transactions in Europe by the decade's end.

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Prime Minister Narendra Modi urged financial regulators to intensify efforts against cyber fraud and improve digital literacy to support fintech growth. Speaking at the Global Fintech Fest, he emphasized the importance of using technology for risk management and fraud detection, and highlighted India's fintech advancements.

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Liquidity in the Indian banking system has fallen significantly this month, according to a Union Bank of India report. It has dropped from a peak of Rs 2.86 lakh crore to Rs 0.95 lakh crore by August 28. This decline continues despite government and RBI appeals for banks to boost liquidity.

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HDFC Bank, India’s largest private lender, plans to sell Rs 10,000 crore worth of loan portfolios through pass-through certificates. The move aims to cut exposure to certain sectors and address challenges in raising deposits. The sale will help improve the bank’s credit-deposit ratio.

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BANKING

An Indian tax investigation has revealed that British insurer Aviva breached commission regulations by using fake invoices and untracked cash payments. Between 2017 and 2023, Aviva's India business paid $26 million to entities claiming to provide services but were actually fronts for funneling money to sales agents, evading $5.2 million in taxes.

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Insurance companies are adapting their products to meet the needs of the growing number of Indian students studying abroad. This year, 1.33 million Indians are pursuing higher studies overseas. Increased geopolitical risks and healthcare costs have led insurers like HDFC Ergo, Tata AIG, and ICICI Lombard to offer customized and comprehensive insurance plans. Flexible policies now cover medical expenses, accommodation, and return travel costs, aiming to rival university policies often at a lower cost.

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State Bank of India chairman Challa Sreenivasulu Setty, appointed for three years, urges employees to elevate the bank into the most valued financial institution. He succeeds Dinesh Khara and aims to reinforce SBI's status as the 'Banker to Every Indian' and achieve service excellence. Under Setty's leadership, SBI aims for new milestones and strategic growth.

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RBI governor Shaktikanta Das announced plans to make UPI and RuPay global to improve cross-border payment systems. The central bank aims to create UPI-like infrastructure overseas and link UPI with other countries' fast payment systems.

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The National Company Law Appellate Tribunal has asked IL&FS to justify extending its protection from legal proceedings, which currently expires on October 15. NCLAT dismissed claims from Sadbhav Engineering and GKC Projects but demanded reasons for continued protection. If lifted, the order could impact 70 unresolved IL&FS entities under the IBC.

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Challa Sreenivasulu Setty is set to become the 27th chairman of State Bank of India on August 28. With extensive experience across various roles in SBI, Setty has handled corporate banking, stressed assets, and retail banking. He takes over at a time when the bank is experiencing exceptional performance.

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As per Sureka’s LinkedIn profile, he joined the lender in 2005 in its financial markets division. He was elevated to group president in October 2016. For the last four years, he was the head of treasury. Before joining Yes Bank, Sureka had worked with ICICI Bank for three years. Sureka is a chartered accountant from the Institute of Chartered Accountants of India.

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PMJDY's journey over the past decade has been nothing short of transformative. It has fundamentally changed the way banks and financial institutions operate, pushing them to reach the remotest corners of the country and serve the "Antyoday" - the poorest of the poor. Today, more than 53 crore Jan Dhan accounts have been opened, with a cumulative deposit balance exceeding ₹2.3 lakh crore. This is a testament to the scheme's success in nurturing a savings culture among previously unbanked individuals. Additionally, Jan Dhan account holders have been provided around 36 crore RuPay debit cards.

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Shriram Finance, an Indian non-banking lender, plans to raise $1.25 billion to $1.5 billion in the current fiscal year from international markets to diversify its borrowings. The funds will be raised through a mix of loans and bonds. This move comes after India's central bank required lenders to hold more capital for loans to NBFCs, increasing the cost of raising funds.

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Funding constraints and over-heating of credit in some geographies have also dented the growth momentum, microfinance industry association Sa-Dhan said, citing data from credit information company Crif High Mark.

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Yes Bank has entered into a co-lending partnership with Newtap Finance to offer personalized financing solutions on CRED. Dreamplug Technologies Private Limited (DTPL), the operator of CRED, will act as the Lending Service Provider (LSP) for Yes Bank and Newtap Finance in this partnership.

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Overseas credit card spending saw a significant rise post Covid-19 travel restrictions easing, outpacing prepaid payment instruments and debit cards. Despite a higher tax rate of 20% on international credit card transactions, spending increased by 63% between December 2022 and July 2024, driven by higher reward points and convenience. Debit cards saw only an 8% rise.

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RBI Governor Shaktikanta Das announced that the Reserve Bank of India is piloting the Unified Lending Interface (ULI) to enable frictionless credit. The platform is expected to be launched nationwide soon. This development was disclosed at the Global Conference on Digital Public Infrastructure and Emerging Technologies in Bangalore during the RBI@90 initiative.

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Domestic banks and non-banking financial companies raised their exposure to the Adani Group to 36% of its total debt by March 2024, lending ₹88,100 crore. The group’s debt increased due to capital expenditures in airports and green energy. However, a 45% rise in operating profit helped reduce its net debt-to-operating profit ratio to its lowest in six years at 2.19 times, down from 3.27 times a year earlier.

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Lenders to debt-laden Reliance Capital expressed concerns over the term sheet provided by IIHL for Rs 7,300 crore debt mobilisation, citing numerous conditions. The CoC sought further documents and moved to forfeit IIHL's Rs 2,750 crore escrow amount if defaults occurred. Interest on the debt from August 8 was also demanded.

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Anil Ambani faced a five-year ban from SEBI and a Rs 25 crore fine over fund diversion at Reliance Home Finance. Once flourishing in 2007, his ventures suffered severe setbacks after the 2008 financial crisis, ending in Reliance Capital's bankruptcy declaration in 2021.

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Research showed that while just 15% of insolvency cases have claims over Rs 1,000 crore, they make up 90% of recoverable value. Specialized tribunals are being recommended to expedite high-value cases, and Finance Minister Nirmala Sitharaman proposed new NCLT benches to tackle these concerns and improve resolution times.

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Secured lenders of Reliance Capital sought the National Company Law Appellate Tribunal's intervention to include interest on delayed payments by IndusInd International Holdings (IIHL). They also sought permission to forfeit ₹2,750 crore in case of default. This move followed a July NCLT order granting IIHL time extension for their resolution plan's implementation.

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India's HDFC Bank has decided against the $2 billion sale of a 20% stake in its non-banking subsidiary, HDB Financial Services, to Japan's MUFG. Instead, HDBC aims for HDB to be listed to comply with RBI regulations. The decision has disappointed Japanese officials who had shown strong support for the deal.

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India's banking sector is experiencing strong profitability and improved asset quality, but lagging deposit growth compared to credit growth presents challenges. Financial shifts, tax issues, and competitive investments are factors. Banks are exploring methods like better rates and special services to attract deposits. The divergence may end by June-October 2025.

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The minister emphasised on active outreach by RRB branches located in MSME clusters to ensure credit to small and micro enterprises, the statement noted, adding that she also highlighted that sponsor banks and RRBs must recognise the challenges that lie ahead, especially maintaining asset quality, expanding digital services and ensuring robust corporate governance.

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The investment was made through its consolidated subsidiary MUFG Bank and brings the total investment by MUFG in DMI Finance to Rs 4712 crores (approximately $565 million) adding to the $400 millon that MUFG invested in the company last April.

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This newly raised capital is to fund category expansion, product development through R&D and innovation, diversification of offerings, enhancing market presence, and catering to the evolving needs of the consumer in the home category.

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Tata Capital Ltd has applied to the Competition Commission of India for approval to merge with Tata Motors Finance Ltd. The merger, approved by both companies' boards in June, will see Tata Capital issuing equity shares to TMFL shareholders, resulting in Tata Motors holding a 4.7% stake. The move aligns with Tata Motors' focus on emerging technologies.

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For the June 2024 quarter margins for most non-bank lenders remained under pressure due to increased borrowings and lower fee income. NBFCs saw a mixed June quarter with some moderation in AUM growth led by weak disbursements and some marginal weakness in asset quality and credit costs due to seasonality, elections, and heatwave in northern states.

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Health insurance GST: Parthanil Ghosh of HDFC ERGO noted that the 18% GST on health insurance premiums has increased costs, affecting affordability. He suggested that reducing or exempting GST could lower premiums and improve penetration rates. Other challenges include financial literacy, trust issues, and the lack of a healthcare regulator, despite increased awareness post-pandemic.

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GST on health insurance: Finance Minister Nirmala Sitharaman faced calls to remove GST on health and life insurance, stressing these taxes existed before GST. The discussion highlighted India's challenges in insurance affordability and penetration. Experts argue that reducing GST could lower premiums and improve accessibility. High medical inflation and claim rejections also contribute to hesitancy in purchasing insurance.

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BANKING

HDFC Bank is tackling a talent shortage in its wealth management sector by recruiting retail bankers from within and outside the organization. The bank's wealth team, which grows by up to 20% annually, manages wealthy clients in numerous cities. However, expanding in smaller towns is difficult due to a shortage of both high-net-worth individuals and qualified professionals.

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Foreign banks operating in India have requested the Reserve Bank of India (RBI) to extend the compliance deadline for the 2018 data localization guidelines to January 2025. These guidelines require that all payment system data related to Indian customers be stored exclusively within India. The banks have already started complying with the rules for new transactions but face challenges in moving or deleting historical data stored abroad.

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Amazon explored launching a separate app for its digital payments service, Amazon Pay, in India. The shift aimed to enhance visibility and usage outside the main e-commerce app. The strategy aligned with a recent Rs 600 crore investment in Amazon Pay India, reflecting the company's continued focus on the Indian market.

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BANKING

Mumbai's banks saw their borrowings exceed ₹9 lakh crore by July 26, with credit growth outpacing deposit accumulation. As a result, lenders turned to short-term funding methods like interbank repo operations and infrastructure bonds. Despite some improvement in deposit accretion, banks continued to face liquidity shortages, prompting increased market borrowing to meet the rising credit demand.

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Bank of Baroda secured a ₹5,000 crore loan deal for SAIL, offering a 7.49% interest rate for a five-year period. Competing against major public and private sector banks, BoB's bid was the most competitive. SAIL will use the loan to fund its capital and working capital expenditures.

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Shriram Finance Ltd anticipated sustained growth in its micro and small enterprises sector, driven by demand for small loans. The company expected a yearly 25% growth in the MSME portfolio. In contrast, the commercial vehicle business saw slower growth. Shriram has diversified its operations and projects a notable rise in MSME loans soon.

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Future Enterprises, undergoing insolvency proceedings, saw Central Bank of India emerge as the frontrunner to acquire its 25% and 33% stakes in two insurance ventures with Generali. The committee of creditors approved the bank's bid to enhance its insurance sector presence while Future Enterprises sought to settle its debt issues.

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The firm is also exploring ways to raise funds through long-term bonds and debentures, he told ET, adding that TFCI will aggressively expand its wholesale and retail loan book as it is well capitalised at above 58%.

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Finance Minister Nirmala Sitharaman called for substantial reforms in multilateral development banks to secure additional funds for developing countries during the third Voice of Global South Summit. She stressed the need for swift and agile financing solutions and suggested fresh capital infusions. Highlighting a $4 trillion annual financing gap for sustainable development goals, Sitharaman urged for measures to optimize balance sheets and mobilize private capital. Emphasis was also placed on South-South cooperation to enhance development financing. An Independent Expert Group formed by the G20 was mentioned as part of ongoing reform efforts.

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Canara Bank is expanding its branches to address deposit mobilization challenges, with 150 new branches launched in FY23-24 and another 250 planned for FY25. CEO K Satyanarayana Raju emphasized investments in AI, ML, and cyber security. The bank plans partial stake divestment in its subsidiaries, aiming for listing by FY25-26.

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National Insurance Company Ltd (NIC) aimed to return to profit in the 2024-25 fiscal after nearly a decade of losses, reducing its FY 2023-24 loss to Rs 187 crore. The insurer targeted a Rs 100-200 crore profit, planned policy tariff revisions, and shifted focus towards retail health and motor insurance products.

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BANKING

ICICI Prudential Life Insurance posted the sharpest reduction in margin among listed life insurance companies, with the value of new business (VNB) margin narrowing to 24% in the first quarter of fiscal 2025 from 30% a year earlier. Its annual premium equivalent (APE), meanwhile, rose 34.4% on year to ₹1,963 crore.

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BANKING

RBI approved the appointment of former SBI Deputy Managing Director Salee Sukumaran Nair for a three-year term after S Krishnan's resignation. Nair, with over 35 years at SBI, has handled key assignments, including roles in corporate accounts and stressed assets. Shareholder approval is pending, and he is expected to start in September.

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BANKING

RBI increased policy repo rate hike by a cumulative 250 bps since May 2022, while the weighted average lending rates on fresh and outstanding rupee loans of scheduled commercial banks have increased by 181 bps and 119 bps respectively. Karur Vysya's net interest margin for the June quarter stood at 4.13%, down 6 bps as compared to what it was in the year-ago period. The bank earned a net profit of Rs 459 crore for the first quarter of the current fiscal, reflecting a 28% year-on-year rise.

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BANKING

Gold-loan NBFCs experienced reasonable growth in disbursements due to robust credit demand and operational resilience. The May 2024 RBI advisory limited cash disbursements over Rs 20,000, prompting a shift to digital channels. Despite a minor increase in turnaround time, gold-loan NBFCs saw a 12% rise in June disbursements.

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BANKING

Sumit Bali has been appointed by Yes Bank to head its retail business and collections from August 26. With extensive experience in retail banking, Bali joins Yes Bank after his tenure at Axis Bank. His appointment comes at a critical time as Yes Bank is in talks with Sumitomo Mitsui and Emirates for a stake acquisition.

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The central bank is expected to introduce these rules later this year and bankers are worried they will hurt profitability in the medium term.

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BANKING

The Ministry of Corporate Affairs has introduced new accounting standards for insurance contracts, harmonizing them with global norms. These standards, effective April 1, 2024, are expected to enhance transparency and attract foreign investments in the insurance sector by allowing better risk assessment and comparison with global peers.

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BANKING

The Reserve Bank of India has warned banks about the dangers of relying too heavily on third-party vendors. Deputy Governor J. Swaminathan mentioned a recent ransomware attack as a cautionary example and proposed linking insurance premiums to the risk levels of financial institutions to encourage stronger risk management.

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BANKING

Life insurers are pushing sales aggressively to lock in customers before the new surrender value norms take effect on October 1. These new rules, which require insurers to offer guaranteed surrender values from the first year on non-participating products, are expected to pressure profit margins and change commission structures.

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BANKING

Indian Renewable Energy Development Agency Ltd (IREDA) announced plans to establish a subsidiary to finance small businesses and retail customers involved in renewable energy projects. The subsidiary will partner with microfinance firms and other non-banking finance companies to provide support in areas lacking adequate banking services.

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BANKING

Bajaj Finance Ltd. intended to raise up to $500 million from overseas markets. The company is negotiating with at least four foreign banks for terms of the loan, which will be priced against the Secured Overnight Financing Rate. This move comes after new RBI rules limited domestic borrowing options for shadow financiers.

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BANKING

The Reserve Bank of India (RBI) recently took feedback from banks and financial institutions dealing with Russian funds registered in India. Some Russian financial institutions earlier sounded out RBI on a mechanism to let them use rupees lying in special accounts in India, for investment in stocks and securities here.

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BANKING

Rana Ashutosh Kumar Singh has assumed the role of Managing Director in charge of Risk Compliance and the Stressed Assets Resolution Group at State Bank of India (SBI), following government approval last week. Gajendra Singh Rana, previously the chief general manager of the Mumbai circle, has been appointed as Deputy Managing Director for retail and real estate. Singh's new role includes overseeing departments previously managed by former MD Alok Choudhary. The recent changes come ahead of CS Setty's appointment as SBI chairman, succeeding Dinesh Khara, whose term ends on August 28.

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BANKING

BoB and Canara Bank have increased their lending rates by 5 basis points on six-month and one-year tenures with effect from August 12. UCO Bank, too, has raised its lending rates by 5 bps, effective from August 10. One bps is 0.01 percentage point.

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BANKING

The government and banks sought advice from attorney general R Venkataramani to regain public sector banks' power to issue look-out circulars against defaulters. Consultations with stakeholders and potential legal amendments are underway. Courts have previously ruled against banks issuing LOCs independently. A swift resolution is expected by involving the banking regulator, RBI, and possibly the Supreme Court.

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BANKING

CareEdge Ratings has raised concerns about the credit-deposit ratios of Non-Banking Financial Companies (NBFCs) due to declining deposits. The rating agency suggests that these ratios could affect NBFCs' ability to secure funds. The report also highlights the need for increased regulatory supervision, which could lead to higher compliance costs. The State Bank of India (SBI) reported that credit growth in Indian banks is outpacing deposit growth, despite increased investments in mutual funds and equities.

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BANKING

Finance Minister Nirmala Sitharaman emphasized the need for banks to focus on increasing smaller, consistent deposits, which are crucial for the banking system, as concerns grow over the widening gap between deposits and credit. She highlighted that while deposits grew by 10.6% as of late July, credit expanded by 13.7%, creating potential liquidity issues. RBI Governor Shaktikanta Das supported this view and noted that banks should innovate deposit schemes to attract more funds.

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BANKING

Finance Minister Nirmala Sitharaman urged banks to prioritize 'core banking' in a meeting with RBI's Central Board of Directors. The session reviewed budget provisions and the economic outlook after the 2024-25 Union Budget. The RBI kept the repo rate at 6.5%, forecasting a 7.2% economic growth rate for the fiscal year 2024-25.

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BANKING

Jagdishan acknowledged that the banking landscape changed dramatically after the lender decided to merge with parent HDFC in April 2022, but he defended the decision.

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BANKING

Morgan Stanley Asia Singapore and HDFC Flexicap Fund were among investors that bought Nexus Select Trust units valued at over ₹4,354 crore from Blackstone. This transaction reduced Blackstone's stake in the REIT from 43.1% to 22%. Units sold through open market block deals were priced at ₹138 each, slightly above the floor price.

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BANKING

India's largest private lender HDFC Bank experienced an adjustment period that might slow credit growth, said MD Sashidhar Jagdishan. The bank aimed to reduce its credit-to-deposit ratio by focusing on higher deposit growth. Advances grew by 52.6% annually, with deposits rising 24.4%. Jagdishan emphasized the bank's strategy benefits in a changing business cycle.

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BANKING

Bank deposit rates: Indian banks reported a brief surge in deposit growth over credit offtake as of mid-July 2024. Despite this, banks are facing a growing challenge as urban savers increasingly opt for higher-yield investments like mutual funds and stocks. HDFC Bank's Managing Director highlighted this trend, expressing concerns over the stability and growth prospects of bank deposits.

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BANKING

Bajaj Finance received a show cause notice from the Directorate General of Goods and Services Tax Intelligence for alleged GST evasion amounting to ₹341 crore. The notice accused the company of misclassifying service charges as interest to avail tax benefits. This investigation began after an inspection in Kerala, revealing possible misclassifications in their GST filings.

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BANKING

Reserve Bank of India (RBI) Governor Shaktikanta Das has cautioned banks about potential asset-liability mismatches if they rely too heavily on short-term bulk deposits. He noted that as households shift their savings to alternative investments, banks face challenges in funding, with deposit growth lagging behind loan growth.

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BANKING

Goods and services tax authorities have sent notices demanding unpaid GST from more than 20 insurance companies, including HDFC Ergo and Star Health. The Directorate of GST Intelligence found these insurers provided services to SEZ employees and their families without paying IGST, leading to ₹2,000 crore in dues. Companies received show-cause notices after their explanations were deemed unsatisfactory.

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BANKING

Kotak Mahindra Prime aimed to grow its ₹30,000-crore book by targeting SUV and used car sectors. The finance arm anticipated that festive season discounts and custom financing would boost sales. Director Shahrukh Todiwala projected single-digit industry growth, expecting inventory pile-ups at dealerships to clear during the festive months.

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BANKING

Cholamandalam MS General Insurance projected its motor insurance portfolio to reach 62-63% by the financial year's end. The company reported a 14.3% growth in Gross Written Premiums, totaling Rs 1,945 crore for April-June 2024. They also covered 99 athletes in the Paris Olympics, showing strong expectations for equity investment growth.

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BANKING

Financial Services Secretary Vivek Joshi urged greater cooperation between fintech firms and banks to create scalable, compliant solutions. Addressing the FICCI-IBA PICUP Fintech Conference, Joshi stressed the need for fintech to focus on governance, regulatory compliance, and cybersecurity. Banks should suggest problems, and fintechs provide solutions, especially in digital lending capacities for MSMEs.

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BANKING

Mizuho has withdrawn from the bid for a significant stake in Yes Bank, leaving Sumitomo Mitsui Banking Corporation and Emirates NBD as the main contenders. Yes Bank is seeking a new owner, four years after a central bank-led rescue. The SBI denied selling its stake in the bank.

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BANKING

State-run banks will embark on a government-approved reform agenda for fiscal 2025 focusing on data-driven human resource strategies, including manpower planning, succession planning, and productivity improvements. Key initiatives include integrating data analytics into HR processes, enhancing succession planning with profile matching, and promoting gender diversity, particularly in senior management roles.

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BANKING

Union Minister Shivraj Singh Chouhan declared that insurance companies face a 12% penalty for delayed PMFBY claim payments, deposited directly into farmers' accounts. He addressed the main causes of delays and highlighted improvements under PMFBY, including increased applications and coverage, tackling past issues effectively.

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BANKING

DBS Bank India introduced ‘DBS Golden Circle’, a priority banking initiative for senior citizens, providing attractive interest rates on savings and fixed deposits, cyber insurance, and several other benefits. The program aims to secure income in old age, offering flexibility in accessing funds and enhancing the overall banking experience for those aged 60 and above.

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BANKING

Shapoorji Pallonji group will offer six times the loan value as security to Power Finance Corporation, leveraging real estate assets and Tata Sons shares to ensure full repayment over the loan term, according to a statement by Venkatesh A, director of the group promoters office. The company clarified the security arrangement following media reports questioning its adequacy, stating that the loan proposal was formally approved by the PFC board on 14 June

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BANKING

Jio Financial Services Ltd. introduced the JioFinance app in Paris, enabling Indians to make international payments for Eiffel Tower tickets and Galeries Lafayette purchases. Visa has paired with the app for seamless transactions and easy financial management.

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BANKING

State Bank of India, the largest lender in the country, made a renewed push into wealth management. By deploying 2,000 executives as relationship managers and focusing on smaller companies, SBI aimed to capture a share of the growing wealth. The bank also reported a slight profit increase for the quarter, exceeding market expectations.

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BANKING

Irdai's guidelines, effective from April 2024, mandate that insurers cannot reject any claim based on the pre-existence of an ailment three years after policy issuance. This regulatory change aims to make health insurance more accessible for policyholders with pre-existing conditions.

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BANKING

Banks experienced growing stress in unsecured retail, micro finance, and rural loans in the first quarter, influenced by heatwaves, election slowdowns, and higher risk weights. Despite a 21% increase in net profit, margins and deposit growth continued to lag credit demand. Major slippages were seen in State Bank of India and IDFC First Bank. Analysts consider these challenges temporary but warn of declining margins and high deposit rate requirements to attract savings.

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BANKING

The finance ministry urged state-owned general insurers to focus on profitability rather than revenue growth. After a Rs 7,250 crore capital infusion, companies like Oriental Insurance and National Insurance improved their financial performance. Operational reforms, including staff recruitment, are underway. The government monitors their progress and hasn't planned further capital infusion.

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BANKING

As India shifts towards high-risk, high-return investment options, households are losing around Rs 60,000 crore annually in derivatives trades. With 90% of derivatives traders incurring losses, there are concerns about household savings being wasted on speculation. In response, SEBI has introduced a seven-point plan to curb such trades, and the Union Budget includes measures to discourage them. This situation offers banks hope that investors might return to traditional savings options.

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BANKING

It can be noted that concerns over losses incurred by 90 per cent of investors in the derivative trades have led to fears of household savings being blown in speculation rather than being deployed for productive purposes among policymakers.

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BANKING

The finance ministry has instructed public sector insurance companies, including LIC, to expedite claim disbursements for landslide victims in Kerala. Efforts are being made to reach policyholders through various channels like newspapers, social media, and SMS.

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BANKING

Dinesh Kumar Khara, the outgoing chairman of the State Bank of India (SBI), stated that under his leadership, the bank's net profits over the past four years have significantly surpassed the cumulative profits of the previous 64 years. Despite this financial success, Khara expressed concern that the bank's extensive network and resources are not being fully valued.

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BANKING

The finance ministry has instructed public sector insurance companies, including LIC, to expedite claim disbursements for landslide victims in Kerala. Efforts are being made to reach policyholders through various channels like newspapers, social media, and SMS.

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BANKING

On Friday, the Union Cabinet approved several amendments to banking laws aimed at addressing unclaimed deposits and improving customer ease. Key changes include increasing the number of nominees per deposit account to up to four and introducing "successive and simultaneous" nominations, which will help joint account holders and heirs access funds after an account holder's death.

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BANKING

All provisions as per Income Recognition, Asset Classification, and Provisioning (IRACP) norms, regardless of whether they are accounted for under “BDDR” or another head, must be charged as an expense to the P&L Account in the accounting period in which they are recognised. These provisions will continue to be eligible for regulatory capital purposes as defined in existing capital adequacy guidelines.

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BANKING

Lenders of Reliance Capital cautioned Hinduja Group's IndusInd International Holdings for missing NCLT-imposed deposit conditions, including Rs 250 crore in a domestic escrow account and Rs 2,500 crore offshore. Given a final extension till August 10, IIHL has yet to meet deadlines, prompting lenders to reserve remedial rights.

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BANKING

HSBC's Indian operations' profit rose by 4% year on year, driven by 7% growth in global banking and commercial banking divisions. With India as its fourth-largest profit center, the bank's total loan book saw a 17% increase, reflecting stronger wholesale and personal loan segments during the six months ending June 2024.

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BANKING

IRDAI imposed a Rs 2 crore penalty on HDFC Life due to regulatory violations identified during an inspection of financial years 2017-2020. Rs 1 crore was for issues related to policyholders' interests, and Rs 1 crore for outsourcing irregularities. Additional directions were issued to ensure compliance with regulatory standards.

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