Banking Sector
LIC's embedded value estimated at Rs 5,414.9 billion
The embedded value in the case of a life insurance company is the current value of the company's future profits. According to LIC officials, the IEV has been determined at Rs 541,492 crore (Rs 5,414.9 billion) as compared to Rs 95,605 crore (Rs 956 billion) as on March 31, 2021 and Rs 539,686 crore (Rs 5,397 billion) as on September 30, 2021.
Front-running scandal may lead to increased scrutiny of bank accounts, tax returns of fund managers, dealers
Axis Asset Management Co., which is India's seventh largest mutual fund manager and partly owned by Schroders, had in May sacked two employees, including its chief dealer, amid an ongoing internal probe. The fund in early July submitted its findings to the regulators and said that it had evidence to believe that the terminated executives had violated securities law.
Banks gross NPA at 5.9 per cent, a 6-year low: CARE Ratings
According to the credit rating agency, the GNPA of Indian banks at the end of FY22 was at 5.9 per cent and the overall provision coverage ratio (PCR) went up to 70.9 per cent. "As the Indian economy has navigated the pandemic-induced shocks, the bank credit growth by scheduled commercial banks (SCBs) improved post-August 2021 to reach 13.1 per cent in early June 2022, a rate last recorded in March 2019," the report said.
SoftBank's Rajeev Misra leaving group to start his own ventur
Rajeev Misra, who joined SoftBank in 2014, will stay in a reduced capacity with the group's first $100 billion Vision Fund, reports The Wall Street Journal. "Misra will stay on in a reduced capacity at SoftBank, overseeing the original Vision Fund investments, while stepping back from oversight of its successor Vision Fund 2," the report said, citing an internal memo that was sent by SoftBank Founder Masayoshi Son.
Now three pvt banks to provide LCs for overseas defence procurement
The Ministry said that MoUs in this connection have been signed with each of these three banks recently by the PCDA, on behalf of MoD, a statement said. Till now, only authorised public sector banks were utilised to provide these services to the MoD, and now for the first time, these private banks will be allowed to provide financial services for overseas procurement.
1 in 2 Indians facing extortion, data misuse via instant loan apps
While 58 per cent of citizens said when they or someone in their family/ household staff took a loan using instant loan apps in the past two years, they were charged annual interest of over 25 per cent. Over 54 per cent of citizens surveyed experienced extortion or data misuse during the collection process, according to the report by community social media platform LocalCircles.
Public sector banks shut down 2,044 branches in FY22: AIBEA
On the other hand, the number of branches of private banks went up by 4,023 to 34,342 branches in 2022 as compared to 2021, the All India Bank Employees' Association (AIBEA) said. Private banks had a staff strength of 534,022 at the end of FY21, while in FY22, the number was 357,346 with the staff numbers of several banks not available on their websites, it added. According to the AIBEA, public sector banks had 88,265 branches at the end of FY21 and the number came down to 86,221 in FY22.
If banks raise interest rates on FDs to 7.5-8%, there could be a flight from mutual funds
In a report on mutual funds, it noted that equity flows are muted while the debt outlook is positive. Over the past couple of months, a few major trends have emerged, including absence of NFOs, because of the regulations, decline in AUM, sustained high outflows from the debt segment and decline in new SIP account openings
Bank unions defer June 27 strike as IBA agrees to start talks on July 1
The residual issues are like five-day week for bankers, hike in conveyance allowance to physically challenged employees, uniform banking hours in branches, improvement in medical insurance and staff welfare schemes, fitment to ex-servicemen employees, improvement in the pension rules as given to the Central government staff, special allowance in Northeastern states and others, Venkatachalam said.
SoftBank Group International CEO quits in just 5 months
Alex Clavel, currently Managing Partner at SoftBank Group International, is replacing Combos from June 30. According to the company, Combes has decided to leave SoftBank to pursue new opportunities. "I am confident that Clavel's experience combined with the strong SoftBank team around him -- will serve us well as we continue our journey as Vision Capitalists," said Masayoshi Son, Chairman and CEO of SoftBank Group.
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