Till Infrastructure Leasing & Financial Services Ltd and Diwan Housing Finance Corp. Ltd stole the limelight in the second half of 2018 for all the wrong reasons, ballooning bad loans in the Indian banking system held centre stage. The mis-governance of a multi-state urban cooperative bank (UCB), which was run by a real estate developer, leading to its collapse, has changed the narrative.
The government is ready to bring in changes in the laws governing multi-state co-operative banks. A three-member committee is being set up to look into the issues and suggest legislative changes to prevent another Punjab and Maharashtra Co-operative (PMC) Bank-like scandal and empower the banking regulator. The changes in legislation could happen as early as during the winter session of Parliament.
IDBI Bank Ltd, quarantined in the correctional facility of the Reserve Bank of India (RBI) which restricts its ability to lend, is about to start corporate lending in a limited way to its existing customers with high credit ratings. Till now, its ability to lend is capped at Rs5 crore per customer. In the June quarter, it announced successive 11th quarter loss – Rs3,801 crore.
Last week our cook Lilu-tai asked me whether her money is safe in her bank. She is 75, can barely sign her name. She is scared that all her savings might get wiped out overnight.
The Reserve Bank of India (RBI) modelled its official emblem on the double mohur of the East India Company. The lion under a palm tree on the logo later gave way to a tiger to represent India better. Last week, after the Indian central bank announced transferring Rs 1.
In late July, the Reserve Bank of India (RBI) penalised 11 banks for not complying with the norms to classify an account as fraud and report to the regulator. Despite being advised by the RBI to report fraud in an account ‘immediately’ after the Central Bureau of Investigation (CBI) initiated criminal proceedings, the banks had either delayed or did not report the fraud to the central bank. The RBI did not mention it but the “account” in question is that of the now-defunct Kingfisher Airlines Ltd.
Those who are eyeing the position of a deputy governor at the Reserve Bank of India (RBI) have not much time left to make up their minds as the deadline for submission of applications expires on 30 August. Early this month, the government invited applications for the post, which fell vacant after Viral Acharya decided to step down, roughly six months before the scheduled end of his term. Ahead of him, Urjit Patel resigned little less than a year before his three-year term as governor would have come to an end.
When it comes to monetary policy, a career bureaucrat could be more innovative than an economist. Reserve Bank of India (RBI) governor Shaktikanta Das has proved that. After taking three baby steps since February, when the rate cutting cycle started, he changed track last week: No more baby steps (25 basis points or bps rate cut); not a giant step (50 bps) either.