Tuesday, April 20

Month: October 2020

Bank of Baroda reduces lending rate by 15 bps to 6.85%

Bank of Baroda reduces lending rate by 15 bps to 6.85%

Finance
NEW DELHI: Bank of Baroda, India's third largest public sector bank, announced a reduction in Baroda Repo Linked Lending Rate (BRLLR) from seven per cent to 6.85 per cent. The rate cut would be effective from November 1, 2020. With the cut in the external benchmark repo linked rate, all retail loans of the bank would get automatically adjusted. The customers availing home loan, mortgage loan, car loan, education loan, personal loan and all other retail loan products could avail of this benefit. Earlier, ahead of the festive season, the bank had announced a concession in interest rates on home loans and car loans. Now with the revision of BRLLR, home loan rates start at 6.85 per cent, car loan rates at 7.1 per cent, mortgage loan rates at 8.05 per cent and education loan rates at 6.85 per ...
Activist tries to shore up support for CEO attempting to turn around troubled coal company

Activist tries to shore up support for CEO attempting to turn around troubled coal company

investment
Monty Rakusen | Cultura | Getty ImagesCompany: Contura Energy, Inc. (CTRA)Business: Contura is large scale provider of metallurgical ("met") and thermal coal. The company has mining operations across coal basins in Pennsylvania, Virginia and West Virginia. It supplies both metallurgical coal to produce steel and thermal coal to generate power. The met coal business is the largest producer of coking products, which are critical components of steel production. The met coal business makes up more than 75% of the company's total revenue. The thermal coal is primarily sold to the domestic power generation industry.Stock Market Value: $118 million ($6.45 per share)Activist: MG Capital ManagementPercentage Ownership:  5.8%Average Cost: $4.33Activist Commentary: MG Capital is an investment compan
Jio Payments Bank | RBI Penalty: Jio Payments Bank gets Rs 1 crore penalty from RBI

Jio Payments Bank | RBI Penalty: Jio Payments Bank gets Rs 1 crore penalty from RBI

Finance
Reserve Bank of India imposed a penalty of Rs 1 crore on Reliance Jio Payments Bank Limited for non-compliance with RBI directions on timely submission of application in the case of re-appointment of Managing Director and Chief Executive Officer (MD & CEO). "This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47A (1)(c) read with section 46(4)(i) of the Act," RBI said in the statement, adding that the action was based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Jio Payments Bank was required to submit an application under Section 35B of the Act in the case of reappointment of MD & CEO of the bank four months ...
‘Stay invested’ — Raymond James CEO on investing amid Covid worries

‘Stay invested’ — Raymond James CEO on investing amid Covid worries

investment
Raymond James CEO Paul Reilly told CNBC on Friday that long-term investors should not be scared away from equity markets, despite the rise in coronavirus cases and other risk factors that weighed on Wall Street in October."The important message is stay invested," Reilly said on "Power Lunch." "If you're afraid of some segments, that's OK. You can adjust through this period of uncertainty."Reilly's comments came on another down day for stocks, as U.S. indexes posted their worst weekly losses since March. That was back in the early days of financial markets having to grapple with the risks presented by the global Covid-19 outbreak.In addition to rising coronavirus cases in the U.S. and Europe, investors in October also had to contend with next Tuesday's presidential election and the almost ...
IndusInd Bank: IndusInd expects restructuring book to be in control: CEO

IndusInd Bank: IndusInd expects restructuring book to be in control: CEO

Finance
IndusInd Bank expects its total restructured book to be in "single digits" even as it stepped up provisions to deal with any Covid related uncertainties. "We are still in the process for identifying accounts for restructuring and we expect it to be in the low single digits. We have got some requests for restructuring but they are not substantial," CEO Sumant Kathpalia said in a conference call with reporters. The bank's total slippages at just 19 basis points of its loan book or Rs 400 crore were made up by the Rs 495 of recoveries and upgrades the bank had in the quarter ended September. One basis point is 0.01 percentage point. Kathpalia said the bank's guidance of credit costs at 92 basis points could change because of the restructuring allowed by the RBI. The bank increased total prov...
Visa, Mastercard and Amex struggle as sluggish travel hits profits

Visa, Mastercard and Amex struggle as sluggish travel hits profits

investment
Global travel screeched to a halt during the pandemic, and it's hurting credit card companies' bottom line. American Express, Mastercard and Visa all reported double-digit drops in profit for the recent quarter, compared to a year ago. The companies pointed to a plunge in international travel as borders remain closed during the pandemic. The companies earn a fee off of every transaction that runs on their network, while American Express also makes a significant portion of revenue from annual fees. A lack of cross-border payments is especially painful as those card swipes have higher margins, and end up being more lucrative.Visa was the latest major card company to report results on Wednesday. Cross-border transactions fell 29%, while Visa's revenue in the quarter was down 17% from a year
RBI board mulls future course for weaker banks

RBI board mulls future course for weaker banks

Finance
MUMBAI: Should weaker banks hold back lending and expansion till they are totally out of the woods? Or, is there a better chance to improve their financials if the regulator allows them to lend and grow? The question cropped up at last week’s meeting of the central board of the Reserve Bank of India (RBI) – with opinions of directors divided on the matter. Five banks – Central Bank of India, IDBI Bank, Indian Overseas Bank, Uco Bank and Lakshmi Vilas Bank – are now under the RBI prompt corrective action (PCA) framework that brings in multiple restrictions aimed at conserving capital of banks and better their loss-absorption capacity. The curbs would be lifted only after fresh directives from the regulator. “Some of the (board) members felt that a delay in lifting the restrictions could pr
DCB Bank: RBI imposes Rs 22 lakh fine on DCB Bank for violating marketing norms

DCB Bank: RBI imposes Rs 22 lakh fine on DCB Bank for violating marketing norms

Finance
New Delhi: Private sector lender DCB Bank on Thursday said RBI has imposed a fine of Rs 22 lakh on the bank for violating marketing norms for financial products. The Reserve Bank imposed the penalty by an order dated October 28, DCB Bank said in a BSE filing. "The RBI has...imposed a monetary penalty of Rs 22 lakh on DCB Bank for non-compliance with certain provisions of directions issued by RBI contained in the circular on 'Marketing/distribution of mutual fund/insurance etc., products by banks' dated November 16, 2009," the RBI order attached with the filing said. The central bank said the penalty has been imposed in exercise of powers vested in RBI under the Banking Regulation Act, 1949. "This action is based on the deficiencies in regulatory compliance and is not intended to pronoun...
Jim Cramer says it’s hard to buy stocks with Covid outbreak worsening

Jim Cramer says it’s hard to buy stocks with Covid outbreak worsening

investment
CNBC's Jim Cramer said Wednesday that a lack of coronavirus stimulus is making it difficult for investors to buy stocks as the Covid-19 outbreak in the United States worsens."It's very hard to buy a lot of stocks when you see these numbers," Cramer said on "Squawk Box," as U.S. equities were headed to steep declines Wednesday. The Dow Jones Industrial Average was down about 500 points, or 1.8%, shortly after the open."And it's a shame too because with stimulus, we'd be very tempted to own some of these stocks," added Cramer. "But right now, I think everyone is just fearful."The U.S. has a seven-day average of 71,832 new coronavirus cases, which is a record high, according to data compiled by Johns Hopkins University. Hospitalizations also have been rising in more 30 states in recent days....
moratorium period: Interest waiver: Outstanding as of Feb 29 to be reference for ex gratia relief

moratorium period: Interest waiver: Outstanding as of Feb 29 to be reference for ex gratia relief

Finance
New Delhi: The loan outstanding as of February 29 would be the reference amount for calculating the differential interest amount under the 'scheme for grant of ex gratia payment of difference between compound interest and simple interest' according to the FAQs released by the Finance Ministry. The Reserve Bank on Tuesday asked all lending institutions, including non-banking financial companies, to ensure that the scheme of waiver of interest on interest for loans up to Rs 2 crore for the six-month moratorium period is implemented by November 5, as decided by the government. Last Friday, the government had announced the scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. The lending inst...