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FS Daily Bytes: 28th June


  1. The loss-making PSB, UCO Bank, plans to raise INR 3000 Cr this fiscal. It also plans to turn profitable this year considering that it is under PCA (imposed by RBI)
  2. Bank Union plans strike on 22nd Aug primarily to protest merger & privatization initiatives
  3. 3 UBI officials have been held for fraud by CID, West Bengal. The value is of INR 173 Cr and done by forging bank guarantee papers
  4. Demonetization continues to hit the rural sector. While MFIs are facing collection challenges, the rural branches of banks are running dry for months. Seems this is connected to RBI focusing printing more of low value notes in last few months
  5. Shriram Capital appoints Rajesh Laddha as MD & CEO
  6. Former RBI Guv Y V Reddy seems to agree with Finance Ministry on ensuring India follows its own path for Basel III implementation. Currently the banks must comply the CET of 8% and CAR of 11.5% by March 2019 in a phased manner. The finance ministry representative at RBI are making a case for delaying the same as PSBs are reeling under capital stress due to high NPA and increased provisioning on the same
  7. Government is looking to revitalize IDBI before it goes for stake sale or privatization as current valuation will be too low due to increasing NPA which has hit 21.25%


  1. Italy’s centre-left Democratic government is bracing for political challenges after being accused of throwing ‘good money over bad’ by other major political parties. This is about the 5 Billion pound of state funds that has been sanctioned for takeover of Veneto Banca and Banco Popolare by Intesa Sanpaolo (Italy’s largest bank)
  2. A new BCG Perspective ‘corporate-banking-getting-big-in-small-business-banking’ has highlighted the potential of small businesses for corporate banking, if the banks work on leveraging digital, process digitization, analytics and tailor the service model & product portfolio to tune for small businesses.
  3. A report in FT highlights the growing clout of young generations in Chinese banking ecosystem. The established legacy banks are steadily losing their rank in global band positioning while internet rivals in P2P/ consumer finance (e.g. Tencent, Alipay, Lufax) are gaining more traction from the new generation

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