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FS Daily Bytes: 4th July

India

  1. ICICI Prudential has expressed interest to take over Sahara Life policyholders liabilities. Sahara Life was earlier restricted by IRDAI to stop issuing new policies
  2. RBI to issue Rs 200 notes  in coming months
  3. Citibank India arm, Citi India, reported 12% growth in its profit for FY1617 booking 3626 Cr INR. It’s NIM rose to 5.4% (last year 5.1%) while NPA remained constant at 0.5%
  4. Former RBI Governor Y V Reddy feels that Government should not be restructuring the PSB (e.g. consolidation etc.) before stake sale as it involves cost. He would rather like the new partner taking over to do the restructuring
  5. A joint study by PwC- Assocham has warned of increase in cyber-attacks on financial services institution with rise in digital economy. The study highlighted that India registered 350% rise in cybercrime in 3 years
  6. Credit card bill payment, receipt by Business correspondents on behalf of a banking company or co-op bank and a few others will be exempted from the ban on 2 lac or above cash transaction (Finance Act 2017). Read more
  7. Rahul Bajaj, in the latest annual report for the company, mentioned that demonetization, NPA & lack of investments had a dampening effect on the economy
  8. Fitch believes that GDP will be boosted by GST though significant risk to remain in short term
  9. Supreme Court was not enthused by the Gov argument on the demonetization currency deposit timelines and have asked RBI & Gov to devise a plan for those who were not able to do it as per earlier deadline of Dec-31st, 2016
  10. Public sector banks employees opposing the privatization initiative of the banks, plans to observe July 19 as the ‘Save public sector banks’ day
  11. IndoStar to buy majority stake in ICICI Home finance by investing 3000 Cr INR. ICICI had been looking for quite some time to divest this unit. IndoStar is a NBFC backed by PE Everstone Capital and has its own home finance company
  12. There are reports of banks capping free transactions and charging Jan Dhan Yojana accounts (PMJDY)  holders primarily taking advantage of confusion in RBI rule which states 4 free withdrawals but not stating ‘what after!’

 

International

  1. Payment processing firm Worldpay saw its stock jump by nearly 25% after it confirmed takeover approaches by JP Morgan Chase bank and the payment processing giant Vantiv
  2. Bank of England (BOE) has given deadline to lenders to prove that they are adequately protected against credit risks
  3. Moody revised its outlook for APAC banks to stable from negative primarily due to improving operating conditions and credit cycle. China, Hong Kong etc were the key drivers and India does not (as expected) seem to be on that radar

ANZ has offloaded its retail & wealth business in multiple Asia geographies to DBS group & seems to consolidate and invest in its institutional segment. Read more.

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