Daily Banking News & Business Updates for Aug, 25th. Get the latest financial and trending banking news from around the web.
1) Commercial banks net credit to the real estate sector witnessed 3.5 times growth during 2021, as compared to the pandemic period.This can be attributed to the low interest regime and relaxed lending norms.First five months of 2022 with a net credit disbursal of ₹ 29,914 crore, which is 75% of the total disbursals in 2021.
2) The ₹3,567-crore resolution of Sintex Industries is awaiting NCLT approval five months after the committee of creditors approved its sale to a Reliance Industries-Acre ARC consortium.
3) CP Sales Fall 60% as Short-term Rates Soar. Slump to ₹46k cr in first fortnight of July; outflow from debt MFs also a reason; borrowers tap banks for working capital.
4) UBI, the second largest creditor to KSK Mahanadi Power, has put its ₹2,077 crore outstanding loan to the company on the block.UBI has set a reserve price of ₹919 crore in cash for its exposure. At this price, it will recover 44% of the outstanding amount (a 56% haircut).
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Financial Express:
1) FCI resorts to short-term loans again, raises Rs 22,000 crore.Delayed release of subsidy forces the corporation to resume practice which was halted in FY22.
2) The microfinance sector has recorded a growth of 111 per cent in disbursements to Rs 57,842 crore in the first quarter of the current financial year from Rs 27,328 crore during the same quarter last year.
3) Bounce rate inches up to 22.22% in July.The share of failed auto-debit transactions stood at 29.11% in volume terms in July, down 11 basis points as compared to the previous month.
4) Yes Bank to seek shareholder nod for Rs 8,900-cr fundraise today.On July 29, the board of directors of Yes Bank had approved the fundraising exercise, along with a proposal to increase its authorised share capital to Rs 8,200 crore from Rs 6,200 crore.
Business Line:
1) The spectacular jump in UPI transactions over the last few years may be one of the reasons for the growth in banking system’s low-cost CASA deposits.
2) Capri Global Capital opens 108 gold loan branches across major States.Expect to build a gold loan book size of ₹8,000 cr, expand network with 1,500 branches over the next five years.
3) SpiceJet begins fundraising process; to raise ₹1,500-2,000 crore.Stake sale, lease-back of aircraft, sale of assets being considered besides QIP route.
4) Rating agency raises concern over Adani Group’s debt-funded expansion drive.In worst-case scenario, these overly ambitious plans could eventually spiral into a massive debt trap: CreditSights.
Business Standard:
1) Canara Bank to raise up to Rs 3,500 crore through Tier II bonds.Its last capital raise via Tier II bonds for Rs 2,500 crore was in December 2021 at coupon of 7.09 per cent.
2) Department of Commerce to set up a dedicated trade promotion body.The commerce department plans to overhaul the data and analytics ecosystem via centralised data management and embedded analytics capabilities.
3) New ODI regulations: Govt allows investment in financial services abroad.Holding less than 10% in an overseas entity not considered ‘control’.
4) India’s merchandise exports are likely to be around USD 470-480 billion in the current fiscal against USD 420 billion in 2021-22, Commerce Secretary.
live Mint:
1) FALLOUT OF DIGITAL LENDING NORM.Payment Aggregators to Approach RBI Seeking Relief.Want to know where they fit in after third party role eliminated.
2) The RBI aims to bring down retail inflation to its medium-term target of 4 per cent within two years, according to RBI Guv. The Central bank will approach the target without much of a growth sacrifice.
3) Leading economists see economy clipping 13-15.7% in Q1.The national statistical office will announce the first quarter GDP numbers later next week.
4) The Union Minister of Road Transport said the Centre will be approaching capital markets next month and seek retail investments to raise funds for four road projects.
