Banking Sector

"The RBI in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, has directed Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders. However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees," it said.

That's the seventh consecutive increase in England Bank Rate in a row, but a smaller rise than many investors had expected, The Guardian reported. Today's rate rise -- the second 50bp increase in a row -- shows that the Bank is trying to prevent inflation becoming persistently embedded, despite concerns over the economy.

The country's largest lender, State Bank of India (SBI) on Thursday clarified that it has not been identified as a nodal bank for handling Russia-related transactions. The clarification by the bank came in response to reports in certain sections of media that it had been identified as nodal bank for looking after Russia-related transactions.

The 18 lenders led by the Bank of Baroda (BOB) will also be discussing the One Time Settlement (OTS) proposal by DB Realty for its Rs 633 crore default in RCFL. According to the banking sources, the OTS proposal of DB Realty is likely to be rejected by the lenders as they are offering less than 50 per cent of the total outstanding dues of Rs 633 crore.Moreover, both the promoters, Vinod Goenka and Shahid Balwa, are also involved in multiple cases with CBI and ED.

In his new role, Sanjay Khanna will also spearhead several strategic and business development initiatives for the company while steering smooth collaboration across its diverse businesses in India. His position will be key to advancing and strengthening the company's strategic focus in India.

"Even as growth touches double digits again, it will be lower than the pre-pandemic level. Indeed, AUM had logged a 3-year compound annual growth rate (CAGR) of close to 20 per cent through fiscal 2019. Intense competition from banks and the rising interest rate scenario will limit the competitiveness of NBFCs in certain segments, leading them to focus on higher-yield segments for growth," said Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer, CRISIL Ratings.

The four insurers are: The Oriental Insurance Company Limited, National Insurance Company Limited, The New India Assurance Company Limited and United India Insurance Company Limited. The four companies have hired Ernst & Young (EY) as the consultant for the assignment called "Organisational Efficiencies and Performance Management in Public Sector General Insurance Companies.

The number of active loans increased to 6 crore by March 2022, from 4 and 3.5 crore in the March 2021, and 2020, respectively. While, personal loans book size rose to Rs 8 lakh crore in March 2022, from Rs 6 lakh crore in March 2021. According to report, the highest number of personal loans were disbursed by NBFCs (Non-Banking Financial Company) followed by private banks.

In FY23BE, the 21 states analysed have budgeted to meet the fiscal deficit target of 3.61 per cent, down from 3.71 per cent in FY22RE. Revenue deficit is expected to come down to 0.6 per cent from 1 per cent in FY22RE, and primary deficit is expected to remain broadly steady at 1.38 per cent versus 1.44 per cent in FY22RE, the report notes.

The auction for the additional tier-I bond is expected to be held on August 30 on the BSE's bidding platform. The source expects there will be higher demand for the bonds from the investors considering the issuances taken place in few days where coupon has been set lower. "On the upcoming AT1 bond of Bank of Baroda, we expect coupon to set between 7.80 per cent and 8.00 per cent," the source cited said.