1. A report by brokerage company, Ambit Capital, has warned off hard stop to India growth story. The report goes on to explain that this growth has been spurred by retail credit/ retail consumption while private sector investments has hardly grown making the growth unsustainable
2. CVC has truly highlighted the need to ‘KYE’ or Know Your Employees for banks as in several instances of internal fraud/ fraud perpetrated by employees have come to fore
3. United Bank has waived off processing charges completely on retail loans in a bid to attract retail customers loan portfolio
4. Bharat Financial Inclusion Ltd (earlier SKS Microfinance) is in exclusive talks with IndusInd bank for merger
5. Pressure on RBI for further reduction in interest to fuel growth may ease off as data is showing a food price led increase in retail inflation. Crop damage, unfavorable monsoon and consequent pressure on supply has driven this rise
6. Allahabad High Court has ruled that proceedings against a company cannot continue simultaneously at NCLT and the DRT (Debt Recovery). This is interesting as in this case (SBI vs. LML- 2-wheeler), LML has itself gone to NCLT to delay the recovery which may be is in sight through DRT courts.
7. Bankers are at crossroads on enabling Aadhar based payment system at its POS. The challenge is tied to the cost & whether it makes business sense. The guidelines of UIDAI, which mandates encryption of the biometric data captured at POS to avoid security breach, makes the proposition costly from installation point of view. Also; bankers are not sure on whether Aadhar led payment system which debits customer account and not credit card, will help their business case as they mainly look to increase customer spending.
Rest of World
1. The price of bitcoin took a plunge as reports came in that Chinese government has cracked down on cryptocurrencies and plans to close local cryptocurrency exchanges