Category: Banking

Inflation clouds force RBI to increase repo rate

Newsroom24x7 Network Mumbai: Four years down the line, after Narendra Modi assumed office as Prime Minister, with inflation clouds looming over Indian economy, the Reserve Bank of India has increased the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5 per cent. The decision to hike the rate, after four

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Macroprudential Regs affecting APAC Banks more than Basel: Fitch

Newsroom24x7 Network Hong Kong/Singapore: Regulators in most Asia-Pacific (APAC) markets are likely to remain proactive in their use of macroprudential measures, and this could have a greater near-term impact on banks’ operating environment and credit profiles than the adoption of Basel III global standards, says Fitch Ratings. That said, Basel III will play an important

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Allegations against ICICI Bank pose reputational risks

ewsroom24x7 Network Mumbai/Singapore: An investigation into allegations that India’s ICICI Bank (BBB-/Stable/bbb-) extended a loan with a potential conflict of interest raises questions over the bank’s governance and creates reputational risks, says Fitch Ratings. According to Fitch, other regulatory sanctions are also possible, depending on the outcome of the investigation. The allegation regarding ICICI Bank

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Fitch places PNB’s Viability Rating on Rating Watch Negative

Newsroom24x7 Network Singapore: Fitch Ratings has placed Punjab National Bank’s (PNB) Viability Rating of ‘bb’ on Rating Watch Negative (RWN), following the large fraud reported by PNB. Fitch will resolve the Rating Watch once more clarity emerges on the extent of control failures and the impact on PNB’s financial position. At this stage, Fitch does

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PNB and Foreign Letters of Credit scam: CBI registers case

Newsroom24x7 Network Mumbai: The Central Bureau of Investigation has registered a case on 15 February 2018 under section 120B read with 420 of IPC and 13(2) read with 13(1)(d) of Prevention of Corruption Act against a Managing Director of a private company based at Walkeshwar, Mumbai; three Mumbai based private companies; 10 Directors of three

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Rs. 11000 crore scam: PNB stock plummets to record low

Newsroom24x7 Network Mumbai: The Punjab Nationl Bank share price plummeted to a 52 week low to 125.25 on the NSE on Thursday against a high of 231.45 on 26 October 2017 in the wake of Punjab National Bank’s regulatory filing to the stock exchange that it had detected “fraudulent and unauthorised” transactions to the value

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Recap helps weak credit profiles of Indian State Banks

Newsroom24x7 Network Mumbai: The Indian government’s USD32 billion recapitalisation programme should help in part to mitigate the risks that Indian state banks face on account of weak asset quality and poor earnings, says Fitch Ratings. However, unwinding of these risks will take some time, implying that resolution of bad assets and continued high credit costs

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Banks provide vital information about post-demonetization transactions of 5800 suspicious companies

Newsroom24x7 Network New Delhi: Vital information has been received by the Government of India from 13 banks regarding the bank account operations and post-demonetization transactions of some of the 2,09,032 suspicious companies that had been struck off the Register of Companies earlier this year. Investigative agencies have been asked to complete necessary investigation regarding these

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Indian banks face USD65 billion capital shortage by FYE19

Newsroom24x7 Network Mumbai/Singapore: Indian banks are likely to require around USD65 billion of additional capital to meet new Basel III capital standards that will be fully implemented by the financial year ending March 2019 (FY19), according to Fitch Ratings’ latest estimates. According to Fitch, weak capital positions have a major negative influence on Indian banks’

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State Support Driving Indian AT1 Market

Newsroom24x7 Network Mumbai/Singapore: This month’s capital injection into IDBI Bank suggests the Indian government remains unwilling to allow state banks to miss coupon payments on Additional Tier 1 (AT1) instruments, says Fitch Ratings. IDBI may have been at risk of skipping a coupon payment without the fresh capital, which might have disrupted the domestic AT1

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CBI arrests zonal head of Bank of Maharashtra

Newsroom24x7 Staff Pune: The Central Bureau of Investigation has arrested a former Zonal Head, Pune City Zone, Bank of Maharashtra, and a director of a private logistics Company, based at Surat (Gujarat) in an on-going investigation of a bank fraud case. CBI registered a case against the Surat based private logistics firm and 10 other

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Fitch: Indian Loan Waivers are a Risk to Fiscal Consolidation

Newsroom24x7 Network Mumbai/Hong Kong/Singapore: The farm loan-waiver schemes being discussed and rolled out across an increasing number of Indian states could have a significant impact on state government finances, and might undermine efforts to bring down general government debt, says Fitch Ratings. The impact on India’s debt dynamics and capital spending will depend on the

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SBI announces financing of rooftop solar projects worth Rs. 400 crore with private developers

Newsroom24x7 Network New Delhi: The State Bank of India (SBI) today announced financing of rooftop solar projects worth Rs. 400 crore, with private developers. This would add at least 100 MW of rooftop solar capacity to the grid, and is a significant step towards meeting the Government of India’s target for 40 GW of rooftop

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