BANKING SECTOR

worst-ever-banking-crisis:-two-directors-of-hdil-arrested

Worst-ever banking crisis: Two directors of HDIL arrested

Banking crisis in India seems to be looming large due to faulty policy as PMC Bank crisis is yet another addition to such brimming incidences with Mumbai police arresting two directors of HDIL – Rakesh Wadhavan and Sarang Wadhavan. Actually the responsibility of failing of PMC Bank is attributed to its 10 accounts out of 44 accounts in the PMC Bank.

 

The two directors were summoned by economic offence wing of Mumbai police but they did not turn up and they have been asked not to use property worth Rs 3,500 of HIDL. The company is accused of inflicting loss to the bank to the tune of Rs 4,355.4 crore.

04 Oct 2019
banking-sector-crises:-none-talks-about-exodus-from-axis-bank-

Banking-sector crises: None talks about exodus from Axis Bank?

If some well placed sources are to be believed approximately 11,500 employees of Axis Bank have resigned in past four months. Recently, Mcqueary Australia has rated the top official of the bank which adds to the apathy of the banking sector as a whole. Further, many more seniors are slated to quit along with the entire team.

Some top officials of the banking sector say that in private sector banks this is a usual trend. They attribute this phenomenon to the mobility of skilled work-force and poaching. They say that private sector banks especially banks namely; ICICI, HDFC, Kotak and Yes Bank keep poaching amongst themselves which often results into exodus of employees and keeping in view the same 11,500 is not a figure that they may underline the banking-sector crisis. Obviously, those employees would have gone to other banks and Axis would have got from others that means zero net loss.

Whatever is the reason, impact and ground reality of banking sector but it is very surprising that no one is talking about it?

03 Oct 2019
worst-ever-banking-crisis:-two-directors-of-hdil-arrested

Worst-ever banking crisis: Two directors of HDIL arrested

By IndianMandarins 04 Oct 2019

Banking crisis in India seems to be looming large due to faulty policy as PMC Bank crisis is yet another addition to such brimming incidences with Mumbai police arresting two directors of HDIL – Rakesh Wadhavan and Sarang Wadhavan. Actually the responsibility of failing of PMC Bank is attributed to its 10 accounts out of 44 accounts in the PMC Bank.

 

The two directors were summoned by economic offence wing of Mumbai police but they did not turn up and they have been asked not to use property worth Rs 3,500 of HIDL. The company is accused of inflicting loss to the bank to the tune of Rs 4,355.4 crore.

banking-sector-crises:-none-talks-about-exodus-from-axis-bank-

Banking-sector crises: None talks about exodus from Axis Bank?

By IndianMandarins 03 Oct 2019

If some well placed sources are to be believed approximately 11,500 employees of Axis Bank have resigned in past four months. Recently, Mcqueary Australia has rated the top official of the bank which adds to the apathy of the banking sector as a whole. Further, many more seniors are slated to quit along with the entire team.

Some top officials of the banking sector say that in private sector banks this is a usual trend. They attribute this phenomenon to the mobility of skilled work-force and poaching. They say that private sector banks especially banks namely; ICICI, HDFC, Kotak and Yes Bank keep poaching amongst themselves which often results into exodus of employees and keeping in view the same 11,500 is not a figure that they may underline the banking-sector crisis. Obviously, those employees would have gone to other banks and Axis would have got from others that means zero net loss.

Whatever is the reason, impact and ground reality of banking sector but it is very surprising that no one is talking about it?

investment-of-lic-in-private-banks-and-many-psbs-erodes

Investment of LIC in private banks and many PSBs erodes

By IndianMandarins 05 Sep 2019

Investment of LIC in IDBI Bank has erodes by more than half over the past year or so and also the value of its investments in other PSBs plunged. Plunge in price of PSB stocks and dilution of its stake owing to capital infusion by the government has eroded its wealth in these banks. Besides IDBI Bank, LIC has lost over ₹4,800 crore since June 2018.

 

Further the merger move would hurt insurance company more in future. Around 20-30 per cent dilution in the book value of the merged entities — PNB, Canara Bank, Union Bank and Indian Bank — over the next year or so will lead to LIC’s value of holdings in PSU Banks erode further.

 

The government infusing capital into PSBs eroded value for investors. This is because most of the PSBs trade at a steep discount to their book value and hence the government infusing capital at such low valuations immediately leads to dilution in equity base.

cbdt-to-help-psbs-recover-loans

CBDT to help PSBs recover loans

By IndianMandarins 27 Jun 2019

The CBDT may share information of assets of borrowers with the banks to prevent loan defaults in public sector banks. For this purpose, on June 25 it issued a directive asking all principal chief commissioners to share information under section 138(1)(b) of the Income-tax Act about individuals with more than Rs 50 lakh of annual income.

 

"Since the information on assets as contained in the income tax return in specified cases is received by the tax authority.....board is of a view that sharing of information with PSBs in respect of assets held by defaulters of loans, so as to enable recovery of loans from such defaulters, is in public interest and hence, can be furnished," the directive said.

 

Tax department not only aims to share information of immovable assets of loan defaulters with the public sector banks but also intends to provide "information, such as, details of bank account, sundry debtors of the loan defaulter which may aid recovery of loan by PSB."

 

However, the information will be given to the banks after an undertaking is received and the information will be given for borrowers, mortgages, and guarantors in the loans with a confidentiality clause and must be used only for the purpose of recovery of loans.

 

Sources added that in order to ensure that the tax dues against the defaulter (if any) are safeguarded, the CBDT insists on obtaining a no-objection certificate from the jurisdictional commissioner of income tax of the loan defaulter “before appropriation of the… amount recovered from sale of… the asset of the defaulter, the information in respect of which is shared.”

sekar-is-md-&-ceo,-iob;-others-appointed-osd-and-ed-in-psbs

Sekar is MD & CEO, IOB; others appointed OSD and ED in PSBs

By IndianMandarins 10 Apr 2019

The NaMo administration on Tuesday announced the appointment of Karnam Sekar  appointed MD & CEO of Indian Overseas Bank ( w.e.f. 01 July 2019) till his retirement on 30 June 2020. Presently, Karnam is MD & CEO of Dena Bank. He is considered OSD and Whole-time Director in IOB beginning 01 April 2019. Further, R A Sankara Narayan (MD & CEO, Vijaya Bank) was appointed to the post of MD & CEO in Canara Bank till his retirement  on 31 January 2021.

 

In addition, appointments of OSDs and EDs were also cleared in various public-sector banks. Accordingly;

  • Dr Rajesh Kumar Yaduvanshi (ED, Dena Bank) appointed Executive Director in Punjab National Bank for a period ending 01 April 2020. He will retire in June 2021.
  • Nageswara Rao Y (ED, Vijaya Bank) appointed OSD and Whole-time Director in Syndicate Bank till his retirement in January 2021.
  • Murali Ramaswami (ED, Vijaya Bank) appointed Executive Director in Bank of Baroda w.e.f 01 October 2019 till his retirement on 31 December 2020. He would function as OSD till 30 September 2019.

interviews-for-appointment-of-heads-of-nhb-and-iifcl-today

Interviews for appointment of heads of NHB and IIFCL today

By IndianMandarins 25 Mar 2019

Interviews for the appointment of heads of India Infrastructure Finance Company (IIFCL) and National Housing Bank (NHB) are scheduled to be held on Monday - that is today. Both have been headless for a long time.

 

The Department of Financial Services (DFS) is learned to have shortlisted five candidates for IIFCL and 12 candidates for the post of managing director of NHB. The interview panel comprises the Financial Services Secretary, Department of Personnel and Training Secretary and some external members.

 

According to the public notice issued by the DFS, the candidate should have at least 25 years of experience as on the date of the vacancy in different verticals in commercial banks or financial institution. Of this, two years of experience should be either at the board level or GM in nationalized banks or CGM in IFCI, SIDBI, IIFCL, Exim Bank, SBI or RBI.

 

According to the notice, even officers serving as joint secretary or above in the Government of India or at an equivalent in the state government with 2 years long experience in the field of commercial or industrial finance are eligible.

 

The appointment will be initially for 3 years and may be extended by up to 2 years based on performance.

 

It may be recalled that candidates were interviewed in 2017 for the post of managing director (MD) IIFCL but none was selected.

 

So, the Department of Financial Services (DFS) invited fresh applications in August last year. In total, the infrastructure lender has been without a regular MD for the past 20 months.

 

The housing finance regulator NHB became headless in August last year following the resignation of Sriram Kalyanaraman amid allegations of irregularities and misconduct against him.

four-directors-re-nominated-for-psbs

Four directors re-nominated for PSBs

By IndianMandarins 02 Mar 2019

The NaMo administration, on Friday, announced the re-nomination of four Non-Official Directors on the Board of Directors of banks as follows:-

  1. Dr Archana Ravindrarai Dholakia- Bank of Maharashtra
  2. Prof. (Dr) Radha R Sharma- Allahabad Bank
  3. Amit Chatterjee- UCO Bank
  4. M Bhagwantha Rao- Corporation Bank

two-psbs-out-of-rbi-pca-list

Two PSBs out of RBI PCA list

By IndianMandarins 28 Feb 2019

The RBI has lifted lending curbs on two more public sector banks (PSBs), Allahabad Bank and Corporation Bank, by removing them from its prompt corrective action list after the government infused capital in them. Private sector Dhanlaxmi Bank too has been taken out of the PCA Framework.

 

Earlier on January 31, Bank of India, Bank of Maharashtra and Oriental Bank of Commerce were taken out of the PCA Framework.

 

The PCA framework kicks in when banks breach any of the three key regulatory trigger points -- namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA).

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