Bank

‘Bad bank’ can help improve NPA resolution

Separating bad assets from good ones and maximum recovery at the lowest cost are the tenets on which the ‘bank’ must be built The limited success of the current NPA resolution framework and its mechanisms calls for new forms of institutions which will be effective in dealing with the current NPA crisis. The need for a new institution is warranted ... Read More »

Good Stress Test Grades Don’t Impress Bank Investors

That “A” in gym doesn’t make up for the “D” in math. Photographer: Steven Gottlieb/Corbis/Getty Images Bank investors seem more stressed out than they have been in a while. Shares of the big banks are down an average of 9.3 percent this year, compared with a gain of nearly 1 percent for the S&P 500 Index. The results last week of ... Read More »

ICICI Bank used term loans, LCs to help borrowers avoid loan defaults: Report

Moneycontrol News  ICICI Bank Ltd  issued hundreds of letters of credit (LCs) to debt-ridden borrowers to help them avoid loan default, a whistleblower complaint claims according to a Mint report. Loan evergreening, or the practice of extending loans to companies to help repay previous loans, is fairly common in India. This allows the companies more time to repay the bad loans. Regulators disapprove of ... Read More »

Indian Bank’s board withdraws dividend announcement

RBI cites rules relating to full provisioning of losses. The board of directors of Indian Bank has decided to withdraw its May 10 resolution recommending declaration of dividend at ₹ 6 per equity share (60%). In a filing with the BSE, the bank said the decision was taken at a board meeting held on June 28. The move comes after ... Read More »

Different SBI Savings Bank Accounts Explained: Interest Rates, Minimum Balance And Other Details

SBI small savings account: A person holding this account is allowed a maximum balance of Rs. 50,000 State Bank of India (SBI) offers several special types of savings bank accounts. These include the savings plus bank account, basic savings bank account, small savings accountand savings account for minors. While all these bank accounts offer an interest rate of 3.5 per cent for balance up to Rs. 1 crore, just ... Read More »

Why creating a ‘bad bank’ is a better idea than simply throwing money at PSBs

The financial year 2017-18 was among the bleakest for public sector banks (PSBs) as they together reported a record loss of Rs 85,370 crore. The banks had to make higher provisions for bad asset recognition as the Reserve Bank of India’s latest guidelines meant they could no longer restructure loans the way they had been doing in the past. Much ... Read More »

No need for a bad bank! Stop giving loans to the wrong people

The idea of creating a ‘bad bank’ is back on the table, but it’s a bad idea under the circumstances. Not because it won’t work. Bad banks have worked in several countries around the world, including South Korea and the US. But it’s a little different in India. Far from a bad bank, India currently needs a solution to bad ... Read More »

SBI’s Overdraft Facility Against FD For Online Customers: Interest Rates, Eligibility Explained Here

Customers can now avail an overdraft against Fixed Deposit (FD) via State Bank of India (SBI) YONO app, informed country’s largest lender on its official twitter handle- @TheOfficialSBI.  Under SBI’s overdraft facility, customers holding fixed deposit (FD) in a single name can avail up to 90 per cent of the fixed deposit (FD) amount as an overdraft to meet emergency and other needs. The ... Read More »

Yes Bank may give 50% upside by FY19 end: Akash Jain

We believe Yes Bank will get rerated after reporting stellar Q4FY18 results. Before results, we were expecting an upside of 30 percent plus by FY19 end. After this strong performance, we would not be surprised if it delivers 50 percent upside from current market price by FY19 end. As expected, the results of the Bank were above expectations. What we like the ... Read More »

Serving, retired top officials of IDBI Bank booked by CBI in Rs 600-crore loan fraud

The CBI has booked top officials of two public sector banks, a former CMD of IDBI Bank, former Aircel promoter C Sivasankaran, his son and companies controlled by him in connection with a Rs 600-crore loan fraud, officials said today. The CBI has named 15 bank officials who worked at senior levels at IDBI Bank in 2010 and 2014 when loans ... Read More »