Banking & Financial Services

The rating of the AT1 bond signifies the weakness in the standalone operations of the bank, India Ratings said

The liquidity crisis in the non-banking financial companies (NBFCs) came to light when IL&FS defaulted on a commercial paper in September

Loans from the shadow banking sector expanded rapidly in the period up to the IL&FS defaults, a time in which the regulated banks were in the depths of a bad-loan crisis, weighed down by some $200 billion of soured credit

SBI service charges: There are no account opening and closure charges for SBI customers, according to the website of SBI.

In March, SBI raised Rs 1,251 crore in bonds to boost its additional Tier 1 capital ratio. Its board has extended the deadline to raise Rs 20,000 crore till March next year.

Of these 1,142, PNB has so far initiated recovery proceedings by filing suits against 1,108 defaulters to recover Rs 23,879.8 crore

The six-member panel, headed by Former RBI Governor Bimal Jalan, which was originally supposed to submit the report in April

In 2018-19, the government had pumped in the highest-ever infusion of Rs 1.6 lakh crore into PSBs to meet regulatory and growth capital requirements.

Shares of Yes Bank, which rose as much as 5.6 per cent intraday, pared some gains to settle 2.7 per centhigher on the NSE Nifty that was up 0.36 per cent.

The RBI's asset quality review led to a massive spike in NPAs, and was supported with the enactment of the bankruptcy law for resolving the cases.

Moody's has also given thumbs up to the RBI's move to extend the circular to NBFC firms on provisioning for NPAs

SBI or State Bank of India has introduced repo rate-linked home loans. SBI, the country's largest bank by assets, said in a statement last Friday that it would offer home loans linked to the repo rate from July 1, 2019. Repo rate is the key interest rate at which commercial banks borrow short-term funds from the Reserve Bank of India (RBI). The announcement from SBI comes days after the RBI said it would ensure "faster and higher" transmission of lower interest rates to their customers.

The comment comes at a time when there are fears that India may be facing a major crisis in its shadow banking sector after shares of mortgage lender Dewan Housing Finance Corp Ltd (DHFL) plunged this week after two credit-rating firms cut their view of DHFL debt to "default" levels

It also announced the reduce interest rate on cash credit account and over draft customers with limits of over Rs 1 lakh, from July.

The RBI said it decided to impose a penalty after reviewing the bank's reply to a notice seeking an explanation about why it had not complied with regulatory norms.