Thursday, April 15

Month: July 2020

PNB Housing Finance expects to disburse Rs 13,000 crore loan this fiscal: MD and CEO Neeraj Vyas

PNB Housing Finance expects to disburse Rs 13,000 crore loan this fiscal: MD and CEO Neeraj Vyas

Finance
New Delhi: PNB Housing Finance hopes to disburse around Rs 13,000 crore loan in current fiscal, and expects demand to pick up around October-November with the onset of festive season, its MD and CEO Neeraj Vyas said. Demand from mass housing statement has started picking up post relaxations in coronavirus-induced lockdowns and gradual reopening of economy, he said. "Demand in a particular segment (mass housing) is picking up, which generally in the market is called green shoots (of revival). We were expecting that we would be touching sometime in September disbursements of Rs 500 crore, but we have already crossed that mark," Vyas told in an interview. PNB Housing Finance, promoted by Punjab National Bank, disbursed loans of about Rs 694 crore (Rs 674 crore retail loan and Rs 20 crore c...
Indian Bank trims interest rate on gold loans for farmers to seven per cent

Indian Bank trims interest rate on gold loans for farmers to seven per cent

Finance
Indian Bank has slashed its interest rate on gold loans offered to farmers to 7 per cent. The state-owned lender has reduced interest rate on its short-term gold loan scheme -- Bumper Agri Jewel. Earlier, interest rate on the product was 7.5 per cent. The reduction has been done considering the present pandemic situation and also to provide easy credit to the needy farmers at a cheaper cost, a release said. “With effect from July 22, 2020, Agricultural Jewel Loans are sanctioned at 7 per cent fixed which means it is only Rs 583 per lakh per month,” the bank said. Under this Bumper Agri Jewel loan scheme, the bank is giving 85 per cent of the ornament value as loan. The loan is repayable in six months.
Banks need to raise and conserve capital in COVID time: Former RBI deputy governor

Banks need to raise and conserve capital in COVID time: Former RBI deputy governor

Finance
KOLKATA: Commercial banks of the country are required to raise capital at this juncture even if it is not needed as the COVID-19 pandemic has made the future uncertain, former deputy governor of RBI N S Vishwanathan said. He said that raising resources at the moment is essential as it might not be available or become exorbitant when actually needed. "Banks are required to raise capital at the moment. They need to raise and conserve capital. This is because when it is needed, capital may not be available or become highly expensive," Vishwanathan said while speaking at a webinar organised by Enqube Collaboration. According to him, both the government and RBI have announced a slew of measures to limit the debilitating effect of COVID-19. "However, the future is uncertain and the contraction ...
Serving the underbanked, micro-financing, affordable housing: Bandhan Bank’s Vision 2025

Serving the underbanked, micro-financing, affordable housing: Bandhan Bank’s Vision 2025

Finance
New Delhi: Bandhan Bank said it will continue expanding its geographical reach to underbanked areas, leverage its micro-financing skills and make inroads into affordable housing segment with the amalgamation of Gruh Finance as part of its strategies for the next five years amid the coronavirus crisis. Containment of the ongoing outbreak, implementation of effective financial tools, adoption of digital means and maintaining significant economic productivity may help the economy recover from the present crisis and build upon a stable financial system, Bandhan Bank said in its Annual Report for 2019-20. As part of its strategy, Bandhan Bank has laid out its aspirations to be an "affordable financial institution by providing simple, cost-effective and innovative financial solutions", the Kol...

Hong Kong national security law may spook socially conscious investors

investment
Investors who take a sustainable approach to allocating capital may be reevaluating putting their money into Hong Kong after the city implemented a national security law, an analyst said on Friday."That's the one area of international capital flows that could be quite significant," said Andrew Collier, managing director of Orient Capital Research, a research firm.Sustainable or "ESG" investing factors in a company's environmental, social and governance ratings. These strategies vary and are subjective, but generally aim to make socially conscious investing decisions.Hong Kong has seen more than a year of protests that sometimes turned violent as residents pushed back against eroding freedoms in the city. Critics say the recently implemented national security law grants the central governm...
Bad-loan ratio set to worsen to 12.5%, warns RBI in its Financial Stability report

Bad-loan ratio set to worsen to 12.5%, warns RBI in its Financial Stability report

Finance
Bad loans at Indian banks are expected to swell to 12.5% of outstanding credit by March 2021, according to the Reserve Bank of India, after a prolonged lockdown hurt businesses and left millions jobless. The ratio was already one of the highest among major economies at 8.5% at the end of March, as a two-year shadow banking crisis in India soured debt. If the macroeconomic environment worsens further, the ratio may escalate to 14.7% under the very severely stressed scenario, the RBI said in its semiannual financial stability report on Friday. Any worsening of banks’ loan books would hurt their capital buffers and make it more difficult to extend credit just when companies need it most. A moratorium on loan repayments is providing some cushion for struggling businesses, but lenders may find

Jim Cramer praises Tesla CEO Elon Musk as ‘big thinker’ after earnings

investment
CNBC's Jim Cramer praised Tesla CEO Elon Musk on Thursday for building a company that promises to be much more than just electric vehicles."This man is selling technology, and he's talking about fully assisted and then he's talking about driverless. He's thinking so much bigger," Cramer said on "Squawk on the Street." "He's a big thinker. He makes us look like Lilliputians."The "Mad Money" host's comments came one day after Tesla reported its fourth consecutive quarter of profitability, clearing the way to be considered for inclusion in the S&P 500 index.Shares of Tesla, which have soared over 280% this year alone, were up and down Thursday, trading around $1,620 each. The stock hit an all-time of $1,794.99 last week.While emphasizing that Tesla's future is about more than just the ca
Bharti AXA General gets Rs 800 cr crop insurance mandate from Maharashtra, Karnataka govts

Bharti AXA General gets Rs 800 cr crop insurance mandate from Maharashtra, Karnataka govts

Finance
MUMBAI: Private non-life insurer Bharti AXA General Insurance on Thursday said it has received Rs 800 crore worth crop insurance mandate from Maharashtra and Karnataka governments to insure farmers in both the states under the Pradhan Mantri Fasal Bima Yojana (PMFBY). The company has secured authorisation for three years from both the state governments to implement the PMFBY in six districts of Maharashtra and three districts of Karnataka, a release said. The PMFBY offers insurance cover to farmers against losses of crops during the entire cycle, from preparation of sowing to harvesting and post-harvest, due to poor yield. “Apart from implementing crop insurance for farmers in both the states, we will also capitalise on innovative technologies and digital capabilities for sharing relevant
More banking sector reforms needed to improve efficiency and accountability in the PSBs

More banking sector reforms needed to improve efficiency and accountability in the PSBs

Finance
By: Sandeep Sen The only time you can repair a car or an aircraft, a hotel or a house is when it is not in operation. The same applies for the banking industry which has been subject to massive banking frauds and rising non performing assets during the last five years. The banking reforms that started in 2015 in right earnest has achieved a lot. But a lot more needs to be done. This is probably the best time to complete the half done banking sector reforms as activity in the banking sector is at an all time low. The merger of the PSB’s is already under way. The restructuring of operations to increase efficiency and accountability in the PSB’s has however still not been done. That process is complex and will take a lot of time, but it is the real repair work without which the PSB’s will

Coronavirus stock comeback similar to 1990s dot-com bubble

investment
Billionaire Mark Cuban told CNBC on Monday that the stock market's rally from its late-March coronavirus-driven low reminds him of the 1990s dot-com bubble."In some respects it's different because of the Fed and the liquidity they've introduced and the inflation for financial assets that comes with that. But on a bigger picture, it's so similar," Cuban said on "Squawk Box." Cuban, who made billions of dollars during the dot-com boom, pointed to the newfound interest in the stock market from people who weren't interested before, such as his teenage niece."I had my 18-year-old niece asking me what stocks she should invest in because her friends are making 30% per day and other people just randomly asking me that never look at stocks at all what stocks they should invest in," said Cuban, who