PNB Reports 93% Fall In Net Profits

PNB, the country’s second-largest public sector bank by assets posted a 93 percent fall in quarterly profit and said it expected bad loans to rise further in the current quarter as a central bank-directed clean-up exercise continues. PNB shares fell as much as 6.5 percent to 88.20 rupees in Mumbai on Tuesday.

The total income increased to Rs 13,891.2 crore for the quarter ended December, up 7.64 percent, from Rs 12,904.85 crore in the same quarter last financial year. Gross NPAs as a percentage to total advances rose to 8.47 percent from 5.97 per cent in the same quarter an year ago.

Gross bad loans as a percentage of total loans were 8.47 percent at end-December, compared with 6.36 percent in the previous quarter. Provisions, including for bad loans, more than doubled from a year earlier to 37.76 billion rupees. Net non-performing assets (NPAs) went up to 5.86 percent from 3.82 percent at the end of December 2014, the bank said. Reacting to the bank’s quarterly numbers, PNB’s shares declined by 4.56 percent to Rs 90.05 on BSE.

4 NBFCs registration cancelled by RBI

The Reserve Bank of India on Monday said that it has cancelled the certificate of registration of four non-banking financial companies.No details were given by the apex bank for cancellation of the certificates of these firms.“The Reserve Bank has cancelled the certificate of registration of four non-banking financial companies (NBFCs) in exercise of the powers under the Reserve Bank of India Act, 1934”, it said in a notification on Monday. Goyal Commercial Pvt Ltd and First Debt Management Co. of India Ltd are the NBFCs belonging to Kolkata, while Nostalgia Finvest Private Limited and Narad Realtors Private Limited belong to Mumbai.Goyal Commercial Pvt Ltd and First Debt Management Co. of India Ltd are the NBFCs belonging to Kolkata, while Nostalgia Finvest Private Limited and Narad Realtors Private Limited belong to Mumbai

Rs. 1L Crore Disbursed Under MUDRA YOJANA

Loans worth about Rs1 lakh crore have been sanctioned to small entrepreneurs under the Pradhan Mantri MUDRA Yojana, Prime Minister Narendra Modi said on Sunday, emphasising that the government wants youth to be job creators and not job seekers. “We do not want youth of the country to become job seekers; we want that they become job creators so that they give employment to one, two or five people. So, under MUDRA Yojana we are giving fund to the youth. We have disbursed about Rs1 lakh crore. 

SBoP donates Rs 2.36 cr to PM Relief Fund

State Bank of Patiala has contributed Rs 2.36 crore to the Prime Minister’s Relief Fund for Chennai rain victims.
According to an official statement, SBoP managing director SA Ramesh Rangan along with general manager (RNW-Delhi) MV Krishna presented a cheque of Rs 2.36 crore to Finance Minister Arun Jaitley .
The donation is a manifestation of the concern of 15,000 employees of the bank, who donated their one day salary to help the affected persons.

PNB Riases RS 1.5K Crore From BASEL-III Compliant Bonds

The third largest public sector lender Punjab National Bank (PNB) on Friday raised Rs 1,500 crore from Basel III-compliant bonds through private placement.“The bank has raised Rs 1,500 crore tier II (Basel III compliant) capital bonds,” PNB said in an exchange filling, adding the debt instrument carries an annual coupon of 8.65 per cent.

Domestic banks have to comply with Basel-III standards by March 2019, which require them to have higher capital base to protect themselves from financial risks emanating from global headwinds.
The new stringent capital norms were framed after the 2008 global financial crisis. Following this the Reserve Bank has issued the Basel-III norms for implementation in a phased manner till 2019.
Many banks have been raising funds to meet these requirements. A Fitch Ratings report estimates a requirement of $140 billion by the banks to fully comply with the Basel III norms by March 2019. 
So lets know about Basel III – Basel III (or the Third Basel Accord) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk. It was agreed upon by the members of the Basel Committee on Banking Supervision in 2010–11, and was scheduled to be introduced from 2013 until 2015, however, changes from 1 April 2013 extended implementation until 31 March 2018 and again extended to 31 March 2019.

CAMS Launches Aadhar based eKYC

CAMS launches Aadhaar-based eKYC for setting up MF account instantly. Computer Aged Management Services (CAMS), the leading services solutions provider for fund houses, has launched Aadhaar-based eKYC (know your customer) using OTP (one-time password) authentication to make mutual fund (MF) account opening and transactions a paperless and presence less process through myCAMS at .

CAMS, the transfer agency for most MFs, is also in the process of integrating the websites of AMCs (asset management companies) with eKYC module where it is the registrar. This is in line with market regulator SEBI’s vision to ease the KYC process and facilitate MF online account opening and transactions, CAMS said.
SEBI has recently enabled Aadhaar based e-KYC service offered by UIDAI (Unique Identification Authority of India) for KYC verification on authorization by the client using biometric or OTP (one-time password) authentication on a voluntary basis. Investors, who wish to use their Aadhaar number and PAN for KYC compliance, can now complete KYC process in just three simple steps using Aadhaar-based eKYC and set up a MF account instantly without having to submit forms, documents and do in-person verification (IPV) either physically or virtually. Investors can voluntarily submit Aadhaar and mobile numbers for validation with Aadhaar/UIDAI database. On successful authentication through OTP, investors can complete KYC and start investing in MFs through myCAMS at SEBI currently permits investment of Rs 50,000 in a financial year per MF for investors using Aadhaar-based eKYC using OTP based authentication.

D J Pandian Appointed as AIIB Vice President

Former IAS officer D J Pandian has been appointed vice-president and chief investment officer (CIO) of Beijing-based Asian Infrastructure Investment Bank (AIIB)Welcome development,” Economic Affairs Secretary Shaktikanta Das tweeted.

He is retired IAS officer of Gujarat cadre and had served as chief secretary of the state. He also had worked on deputation with the World Bank. He was also the MD of Gujarat State Petroleum Corporation (GSPC).
About Asian Infrastructure Investment Bank (AIIB) 

AIIB is an international financial institution that aims to support the building of infrastructure in the Asia-Pacific region. The bank was proposed as an initiative by the government of China, supported by 37 regional and 20 non-regional Prospective Founding Members (PFM), all of which have signed the Articles of Agreement that form the legal basis for the proposed bank. 
It will fund infrastructural projects such as energy, urban construction, transportation and logistics as well as education and healthcare. It has authorised capital of US 100 billion dollars and subscribed capital of USD 50 billion. China, India and Russia are the three largest shareholders of AIIB, taking 30.34%, 8.52%, 6.66% stake respectively. Their voting shares are 26.06%, 7.5% and 5.92% respectively.

SBI Launched FlexiPay Home Loan

State Bank of India has launched its “SBI FlexiPay Home Loan” aimed at youngsters with a rising income. The loan allows takers the option of only paying the interest on the loan for the first years. SBI said that it is not offering any discount in interest rates or offering more loan to value.

“We are offering this loan on the premise that youngsters will initially find it tough to pay monthly instalments. So once their career stabilizes, which could be before or even at the end of the five-year period, they can start paying regular EMIs. With every three years after we’ll increase the EMI by 5% so that the person is well-able to chart out his financial growth,” said SBI chief general manager Ramesh Babu at its Chennai launch.
The bank said in a statement that the new offering will enable young working professionals to get higher loan amount compared to their loan eligibility under normal home loan schemes.
Rajnish Kumar, managing director, SBI, said in doing so the bank will not dilute the prescribed loan-to-value (LTV) ratio.  “This product cannot be called teaser loan as we have taken adequate safeguards like making it available only for salaried professionals and not for all categories of customers.”
Targeted at the salaried-class, the interest rate is currently 9.55% – with women applicants having to pay a lower interest of 9.50%. The loan also has an additional rider in that the candidates gets 20% extra of the loan amount they are eligible for. “Say the person is eligible for a Rs 1 crore loan, then under FlexiPay loan – he can avail of a loan amount of Rs 1.2 crore,” he said. If the applicants wants to close the loan earlier than the time period of 25-30 years, then they can do so without incurring pre-payment charges.

Government To Infuse About Rs. 5000 Cr. In PSU Banks This Quarter

The government will infuse about Rs.5,000 crore capital in the public sector undertaking (PSU) banks in the current fiscal to strengthen their balancesheet. “As committed, banks will get fund infusion in the fourth quarter. Banks will get about Rs.5,000 crore,” financial services secretary Anjuly Chib Duggal said on the sidelines of an event.

Funds would be infused after Parliament approves third Supplementary Demand for Grants in the upcoming Budget session. Last year, the Government announced a revamp plan ‘Indradhanush’ to infuse Rs70,000 crore in state-owned banks over four years, while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirements in line with global risk norms Basel III.

As per the blueprint, PSU banks will get Rs.25,000 crore this fiscal and also in the next fiscal. Besides, Rs.10,000 crore each would be infused in 2017-18 and 2018-19. Of the Rs.25,000 crore earmarked for 2015-16, the government has pumped in about Rs.20,088 crore in 13 public sector banks so far. The government had arrived at Rs 1.8 lakh crore capitalization needs for PSU banks assuming credit growth rate of 12 per cent for the current year and 12-15 per cent for the next three years depending on the size of the bank and their growth ability. Talking about various initiatives taken by the government to deepen the social security net, Duggal said banks are addressing last mile connectivity issues. The department of financial services is having discussions with banks on a regular basis to sort out the issues as soon as possible, she said. Banks like State Bank of India and Andhra Bank are currently addressing issue of Internet connectivity in the 800 identified areas. Besides, steps are being taken to strengthen Internet connectivity in various parts so that direct benefit transfer is made seamless.

LVB Mobile App : Digital Route Of Laxmi Vilas Bank

Lakshmi Vilas Bank (LVB), a 90-year-old private sector bank, is shedding its brick-and-mortar model by introducing digital technology to shore-up its customer base, Managing Director and CEO Parthasarathi Mukherjee told The Hindu.

It has plans for new services as a part of its digital focus. It has unveiled LVB Mobile “Banking operations are increasingly moving from brick-and-mortar model. Digital payment channels such as internet and mobile banking are gaining momentum. Going forward, our business will diversify substantially into many such areas and focus on fine-tuning products and services in a bid to build a large base of clientele,” said Mr. Mukherjee , who took charge last month.
The share of electronic payments is on the rise, both in volume and value terms. Several payment channels such as cards (including credit, debit and prepaid varieties), Internet and mobile-based, are growing. During 2014-15, 171 million transactions valued at Rs.1 trillion were handled through mobile banking service in the country.
LVB is lining up a slew of services as a part of its digital focus and will soon introduce mobile wallet services. It has just rolled out its mobile app LVB Mobile.
The bank will build on its strengths in the small and medium enterprise and retail segments, Mukherjee said.
“Retail is very big market. But, our foot print is very small at the moment. So, there will be a lot of focus on retail and we will build new processes and systems in retail lending.” The bank also plans to increase the share of Current Accounts as well as Saving Accounts.