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UBS weighs wealth tie-up to compete in cutthroat Indian market
UBS Group AG is considering partnerships for wealth management in India to navigate the competitive market. Options include buying a stake in a local firm for a joint venture. This move aims to expand UBS’s reach among India’s wealthy, following its recent acquisition of Credit Suisse’s team.
‘Navratna’ MTNL offers to pay 40% dues; PSU banks hang up
Several lenders have classified loans to Mahanagar Telephone Nigam (MTNL) as non-performing assets, leading the state-run telecom utility to propose a debt recast plan. MTNL’s offer to pay 40% of dues was rejected by lenders. The company faces significant financial challenges, including missed payments and heavy debt.
RBI rejects Canara Bank’s credit card subsidiary plan
The Reserve Bank of India has turned down Canara Bank’s proposal to establish a credit card subsidiary. Canara Bank had planned to convert its IT services subsidiary into a credit card unit to boost its card business. The rejection comes amid concerns over the growth of unsecured loans.
Union Bank of India becomes first major Indian Bank to sign PCAF
Union Bank of India has joined the Partnership for Carbon Accounting Financials (PCAF) to align with global climate risk management efforts. This move follows the Reserve Bank of India’s draft guidelines on climate risk disclosures, emphasizing the importance of tracking financed emissions. The bank aims to measure and manage its indirect emissions from lending and investment activities.
Bandhan Bank launches facility to collect GST through online, offline modes
Bandhan Bank has introduced a new facility for collecting Goods and Services Tax (GST) from both customers and non-customers. This service can be accessed online through the bank’s Retail and Corporate Internet Banking platforms, or offline at any branch using cash, cheque, or demand draft. The initiative aims to enhance ease of business and bring government services closer to the public.
RBL Bank launches fuel credit card with IOCL
RBL Bank has launched the ‘Xtra Credit Card’ in partnership with Indian Oil Corporation, offering customers up to 8.5% savings on fuel purchases. The bank expects a moderate growth of 12-15% in its credit card portfolio this fiscal year. The card will be issued via the Mastercard network and offers significant fuel points for every ₹100 spent.
Education loans to remain among fastest-growing segments for NBFCs: Crisil
Education loans for overseas courses are set to grow rapidly for non-banking financial companies (NBFCs) due to increasing demand for higher education. Crisil Ratings projects a 40-45% rise in assets under management, reaching over Rs 60,000 crore this fiscal. Despite country-specific concerns, asset quality remains stable.
AU Small Finance inks pact with United India Insurance Co for distribution of insurance products
AU Small Finance Bank and United India Insurance Company have announced a strategic partnership to offer general insurance solutions to the bank’s customers. This collaboration aims to provide reliable and affordable insurance options across various categories, leveraging UIIC’s extensive network and AU SFB’s expanding infrastructure, covering 21 states and 4 union territories.
RBI imposes penalties on Housing and Urban Development Corporation, 2 others
The Reserve Bank of India has imposed penalties on three entities, including Housing and Urban Development Corporation Ltd, for non-compliance with specific regulatory provisions. Housing and Urban Development Corporation Ltd faces a penalty of Rs 3.5 lakh, while Godrej Housing and Aadhar Housing Finance Ltd have been fined Rs 5 lakh each.
Sanjeev Mehta quits Standard Chartered Bank, set to launch new venture
Sanjeev Mehta has resigned as Standard Chartered Bank’s Managing Director and Head of Transaction Banking Sales for South Asia after a 17-year tenure. Mehta, who left the bank in July, plans to start a new greenfield venture.
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Why banks are under the gun to beat mutual funds and emerge out of a big threat
The Indian banking sector is struggling to attract deposits due to competition from mutual funds offering higher returns. Regulatory restrictions limit banks’ ability to provide attractive returns, leading to a shift in investor preferences. Banks are exploring new strategies to address this challenge and maintain stability.
Chanda Kochhar-Videocon case: SC issues notice to former ICICI Bank head, husband on CBI’s plea against bail granted by Bombay HC
The Supreme Court of India has issued a notice to former ICICI Bank CEO Chanda Kochhar and her husband Deepak Kochhar on a CBI plea against the Bombay High Court’s order declaring their arrest illegal. The couple was arrested in 2022 over an alleged loan fraud case involving Videocon Group and granted interim bail in January 2023.
Deposit problem to ease if govt parks surplus funds with commercial banks instead of RBI, says Kotak MF’s Nilesh Shah
Kotak Mutual Fund CEO Nilesh Shah suggests that bank deposits could grow faster if the government parks short-term funds with commercial banks instead of the Reserve Bank of India. Currently, government funds with the RBI earn no interest and do not enter the banking system until spent by the government.
Cybersecurity professionals limited, big challenge for future: SBI chief CS Setty
SBI Chairman CS Setty highlighted the limited supply of cybersecurity professionals as a significant challenge. Investments in cybersecurity are increasing, but professional support remains scarce. HSBC faces 1 lakh cyberattacks daily. Additionally, SBI is boosting marketing efforts amid slow deposit growth, while Standard Chartered Bank noted challenges in dollar bond issuances due to increased withholding tax.
Banks’ hands are tied, can’t fight with MFs on returns, says IBA chairman
Banks face challenges in attracting deposits due to regulatory restrictions, making mutual funds more appealing. Indian Banks’ Association chairman MV Rao highlights the need for government support to draw savers. HSBC India CEO suggests studying deposit creation causes, while SBI chairman notes difficulties with special schemes like green deposits.
Digital payments in India to grow threefold from 159 bn in FY24 to 481 bn by FY29: PwC
India’s digital payments industry is booming, with transaction volumes growing by 42% YoY in FY 2023-24. A PwC report projects a threefold increase in transaction volumes by FY 2028-29. UPI leads this growth, accounting for over 75% of transactions and expected to reach 439 billion transactions by FY 2028-29.
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