Private banks, which worked as agency banks for government businesses prior to 2012, are allowed to undertake such agency jobs for central and state governments without any fresh approval, Reserve said Monday. Banks seeking fresh approval from RBI for government agency businesses should be healthy and are not under prompt corrective action framework or moratorium … Read more
The Niti Aayog has kept public sector banks (PSBs) that were part of the last round of consolidation and State Bank India out of the privatisation plan. These banks are Punjab National Bank, , Canara Bank and Indian Bank, and Bank of Baroda and SBI that were part of an earlier round of consolidation. The … Read more
The Reserve Bank of India‘s recent proposal for tighter regulatory framework for non-banking financial companies may strengthen their balance sheets but will not address their funding and liquidity issues, says a report. Last week, RBI released a discussion paper which proposed a scale-based regulatory approach linked to the systemic risk contribution of shadow lenders. In … Read more
The government did infuse almost Rs 2.7 lakh crore between fiscal 2017-2020 but the pandemic might force the government to infuse more capital to keep public lenders healthy. Public sector lenders need to raise as much as Rs 2.1 lakh crore in external capital over the next two years to tackle the capital shortages that … Read more
The Reserve Bank of India has directed HDFC Bank to pay Rs 210 crore to Mashreq Bank, which had extended a loan to real estate financier Altico Capital that is seeking central bank approval for debt resolution, people with direct knowledge of the matter told ET. Last October, the indebted non-banking finance company and Dubai-based … Read more