Why The Nirav Modis Are So Common In PSB Banks?    Budget 2018: Why structural reforms may again be given a miss?    Capital First & IDFC Bank to Merge: Deja Vu for Mr. Vaidyanthan

FS Daily Bytes; 1st June

India:

  1. HDFC expands into global housing finance market by buying 15% stake in Tanzania’s First Housing Finance Company (greenfield in Tanzania with tie ups with local banks)
  2. Niti Aayog planning to soon release the 3-year action agenda on comprehensive economic growth in India. This will be followed by the 7-year vision document/ strategy paper in next 3 months. The comments from 10 states have been received for the 3-year document and once the same from all the states is received, the same will finalized post consultation with Chairman, PM of India. Employment generation, taxation policies are some of the key areas of discussion
  3. RBI appoints new ED (Ganesh Kumar). Key portfolio will be IT, Payment & Settlement systems, External investments & operations.
  4. SBI announces new service charges which is expected to bolster the bank’s fee income (part of non-interest income and an increasing interest point for banks. Click here to know why?). Dove tailing with the ‘digital push’, more charges for ATM transaction, cash deposit & withdrawal (wallet). But even IMPS is now going to attract some nominal charges per transaction (5 Rs min). Also, Debit cards (non RUPAY) will also attract some issuance charges
  5. The Finance minister reemphasized that NPA resolution is an ongoing activity and expects more action from RBI under the new ordinance (RW though believes that the new ordinance falls short. Click to read…). In meantime, BOI, seeks to focus on one-time settlement of bad loans
  6. Shinjini Kumar (ex RBI, PWC, KPMG, Paytm) is appointed the head for Citi, India, consumer business
  7. CBI carries out searches in Delhi NCR on Corporation Bank case. The case relates to the bank being defrauded of INR 9 crore by a slew of private firms/ players, who took loan using fraudulent documents
  8. Informal economy seems to be the most impacted by demonetization. Not a surprise, since this economy is most dependent on cash. Unfortunately, many ordinary people are part of these and the hardships will be difficult to shoo away in near term
  9. Uday Kotak (KMB) outlines the need for government to recognize that very soon it will need to take a decision on putting more money in PSB or make some strategic decision for the lenders, besieged by bad loans. RW: Question is whether political consideration can override economic necessity?
  10. SBI outlined the need for ‘standardising security infrastructure is the key and deploying secure Cloud services is the first step toward’ warding off cyber threats in banking. RW had highlighted the need to invest in its column on security. Click here to read…)
  11. In an apparent curtail of BBB (Banks Bureau Board), its power to appoint CEOs for PSU has been taken away & put with financial services secretary headed committee. Things have not been smooth for BBB, as its earlier decision on a similar few positions were overlooked or overridden by GOI.

On the international, a few key highlights:

  1. JP Morgan to fork out $35 Million to settle the conflict on interest cast. For the uninitiated, JP Morgan has allegedly pushed ‘Good technology’ for sale to Blackberry at a significantly lower price ($425 million compared to $1 Billion- valuation of Good prior to sale) to win future business from BB.
  2. Barclays cuts stake in African operations to 15%
  3. Fitch puts China’s Baidu on ‘negative watch list’ for its foray into financial services as it sees ‘rising risk’ from its shadow finance activities (wealth management products)

 

Source:

Feed news item from ‘Top News’ section in RandomWalks

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