Reserve Bank of India – Press Releases
[ad_1]
Read More/Less
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[ad_2]
Month: September 2021
Delay in legislation on crypto boosts lobbying, BFSI News, ET BFSI
[ad_1]
Read More/Less
NEW DELHI: The delay in the government finalising the legislation on cryptocurrency has prompted intense lobbying, with agencies worried over the risks emanating from an unregulated segment with extreme price volatility, posing a threat to investors, many of whom do not understand the instrument.
Besides, there are concerns over the instrument being used for money laundering and terror funding, an issue that has been flagged by other agencies across the globe, sources told TOI.
While the Supreme Court had lifted the ban imposed by the RBI, the government had listed a bill on cryptocurrency to be introduced during the Budget session of Parliament but with the session cut short, the legislation could not make it.
During the monsoon session, the government remained silent on the future of the proposed bill with finance minister Nirmala Sitharaman recently saying that it has been sent for clearance by the Union Cabinet before it can be introduced in Parliament. The next session is at least two months away.
But crypto exchanges have used the interim period to launch a massive lobbying initiative with several governments and regulatory agencies, raising concerns. The exchanges have argued that a ban on digital currency transactions will result in job losses.
While there are fears that a ban will lead to investors getting locked into the instrument, sources indicated that a three-six month window will be provided for investors to exit.
Several officials have junked the argument that crypto currencies are an asset class. Besides, there are worries over the legal basis for the presence of some of the exchanges, which remain outside the jurisdiction of either Sebi or the RBI. “There has to be global coordination to combat the challenge posed by cryptocurrencies. They are not a currency as only the sovereign can issue currency. There is a grave danger in allowing these instruments,” said a source.
[ad_2]
CLICK HERE TO APPLY
Binance removes Singapore products on main platform after regulator’s warning, BFSI News, ET BFSI
[ad_1]
Read More/Less
HONG KONG: Binance, one of the world’s largest cryptocurrency exchanges, said it will restrict its services in Singapore days after the city state’s central bank said it should stop offering payment services.
Binance will stop offering Singapore dollar payment options and Singapore dollar trading pairs from Sep. 10 and remove the app from the Singapore iOs and Google Play stores, it said in a post on its website.
[ad_2]
CLICK HERE TO APPLY
4 Banking Stocks To Buy As Suggested By Broking Firm Sharekhan
[ad_1]
Read More/Less
Buy Axis Bank for a price target of Rs 940
Sharekhan has set a price target of Rs 940 on the stock of Asix Bank as the bank eyes a calibrated retail-led growth driven by low-cost deposits and a strong capital base.
“Axis Bank highlighted on its business strategy, in terms of growth and profitability. The bank wants to broaden its low-cost deposit franchise and thereby grow the deposit base in line with its loan book. Retail assets would remain a key growth driver. Moreover, it also plans to scale up and accelerate growth in the wholesale banking business. Its strategy going forward is to build a ‘digital bank’ and be a leader in the digital payments space,” the brokerage has said.
Axis Bank: Retail loans to drive growth
According to Sharekhan, the management indicated that it would focus on deposit-led loan growth, especially retail loans that form 54% of its total loan book. “Axis Bank’s loan book clocked a 13% CAGR during FY16-FY21. In Q1FY22, it expanded its loan book cautiously by 9.5% y-o-y. Of this, retail loans grew by 14% y-o-y and corporate loans also rose at 8% y-o-y in Q1. About 88% of its loan book is secured lending. Axis Bank’s emphasis continues to be on borrowers which have a relationship with the bank,” the brokerage has said.
Valuations of Axis Bank
According to Sharekhan, Axis Bank trades at 2.1x/1.8x/1.6x FY2022E/FY2023E/FY2024E ABVPS and we believe valuations are reasonable and there is potential for re-rating as earnings pick up and the economic scenario normalises.
“Conservative provisioning, strong capital base, overall franchise value and a high provision coverage ratio (PCR) are positives, which will help the bank ride over medium-term challenges and support growth and valuations. We maintain a Buy rating on the stock with a revised price target of Rs. 940,” the brokerage has said.
Preferred picks from the banking space: ICICI Bank, SBI and HDFC Bank
The brokerage has also highlighted other banks that are its preferred picks including, ICICI Bank, SBI and HDFC Bank, in its recent Q1FY2022 Results Review.
“Banks saw high slippages in Q1, especially in retail, agriculture or MSME due to the second wave of Covid-19. NII growth was weak and NIMs were under pressure due to sluggish disbursement and muted loan growth,” the brokerage has said.
“Second wave of covid-19 also impacted asset quality of NBFCs and led to loan degrowth. Performance of home finance remained resilient as Govt.’s efforts for affordable housing bode well for the sector,” the brokerage has said.
Disclaimer
The article is informational in nature, which is taken from the brokerage report of Sharekhan. Please do consult a professional advisor vefore you invest in equities. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in the article.
[ad_2]
CLICK HERE TO APPLY
SGX Nifty up 40 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI
[ad_1]
Read More/Less
Domestic stocks are likely to kick off the new week on a flat note amid a lack of directional cues from peer markets. Asian stocks were largely mixed on Monday morning, tracking a flat close for Wall Street on Friday. Oil was trading lower whereas the dollar was quoting near a month’s low. Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on Singapore Exchange traded 39 points, or 0.22 per cent, higher at 17,398.50, signaling that Dalal Street was headed for a positive start on Monday.
- Tech View: Nifty50 on Friday index formed a bullish candle on the daily chart. Analysts said bulls have shown no sign of weakness and a higher targets of 17,500 and 17,700 are possible.
- India VIX: The fear gauge gained over 2 per cent to 14.54 level on Friday over its close at 14.24 on Thursday.
Asian stocks mixed in early trade
Asian markets opened mixed on Monday with investor focus shifting to Japanese politics after Prime Minister Yoshihide Suga said he would not stand for re-election. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.11 per cent.
- Japan’s Nikkei rallied 1.77%
- Korea’s Kospi added 0.03%
- Australia’s ASX 200 shed 0.62%
- China’s Shanghai gained 0.34%
- Hong Kong’s Hang Seng tanked 0.42%
US stocks closed mostly lower on Friday
The Nasdaq ended Friday at a new peak but the other main Wall Street indexes fell, reflecting the mixed sentiment stemming from a disappointing US jobs report which raised fears about the pace of economic recovery but weakened the argument for near-term tapering.
- Dow Jones shed 0.21% to 35,369.09
- S&P 500 retreated 0.03% to 4,535.43
- Nasdaq added 0.21% to 15,363.52
Dollar trades near one-month low
The dollar languished near a one-month low against major peers on Monday, as investors pushed back expectations for when the Federal Reserve will begin tapering its massive stimulus.
- Dollar index held at 92.155
- Euro little changed at $1.18775
- Pound gained to $1.3861
- Yen moved to 109.79 per dollar
- Yuan at 6.4587 against the greenback
Oil extends losses after Saudi price cut
Oil prices extended losses on Monday after the world’s top exporter Saudi Arabia slashed crude prices for Asia over the weekend, signalling that global markets are well supplied. Brent crude futures for November fell 57 cents, or 0.8 per cent, to $72.04 a barrel while US West Texas Intermediate crude for October was at $68.73 a barrel, down 56 cents, or 0.8 per cent.FPIs buy shares worth Rs 769 crore
Net-net, foreign portfolio investors (FPIs) bought Rs 768.58 crore worth of equities on Friday, taking their total August inflows to Rs 16,459 crore. DIIs bought Rs 668.60 crore worth equities on Friday, data suggests.
MONEY MARKETS
Rupee: The Indian rupee settled with a marginal gain of 4 paise at 73.02 against the US dollar on Friday, even as the domestic equities continued their record-setting spree.
10-year bond: India 10-year bond yield declined 0.24 per cent to 6.16 after trading in 6.15 – 6.19 range.
Call rates: The overnight call money rate weighted average stood at 3.16 per cent on Friday, according to RBI data. It moved in a range of 1.95-3.40 per cent.
DATA/EVENTS TO WATCH
- GB BoE Saunders Speech (1 pm)
- GB New Car Sales YoY AUG (1:30 pm)
- GB Construction PMI AUG (2 pm)
- AU ANZ Job Advertisements MoM AUG (7 am)
- EA Construction PMI AUG (1 pm)
MACROS
Brookfield to sell toll road platform
Six years after setting up a platform for its toll road assets, Brookfield Asset Management is looking to cash out. The Canadian asset manager aims to sell Peak Infrastructure, valuing the vehicle at Rs 8,700 crore ($1.2 billion) inclusive of debt, to cash in on the prevailing valuation uptick of similar assets, said people aware of the development.
Delay in legislation on crypto boosts lobbying
The delay in the government finalising the legislation on cryptocurrency has prompted intense lobbying, with agencies worried over the risks emanating from an unregulated segment with extreme price volatility, posing a threat to investors, many of whom do not understand the instrument.
Textile exporters in a bind over Afghan crisis
Textile traders in Surat are worried over pending payments of about Rs 4,000 crore from Afghanistan which have got stuck with the Taliban taking control of the country. Afghanistan’s central bank has instructed the commercial banks not to allow corporate bank account holders to withdraw money for any purpose or to carry out any electronic transaction inside or outside of Afghanistan.
Emerging market currencies in a sweet spot
Central banks in developing nations will take center stage this week as assurances that the Federal Reserve is in no hurry to raise interest rates lay the groundwork for an extended rally in emerging market currencies.
Global banks want a bigger share of India’s ESG pie
Global banks are ramping up financing options for ESG (environmental, social and governance) compliant loans and bonds in India amid increasing environmental and social consciousness, a large pool of global funds waiting to invest in these securities and a big opportunity for such projects in the country.
[ad_2]
CLICK HERE TO APPLY
Finance Minister Nirmala Sitharaman lays foundation for Income Tax office building, BFSI News, ET BFSI
[ad_1]
Read More/Less
Union Finance Minister Nirmala Sitharaman on Sunday laid the foundation for the office building of the Income Tax Department in Bengaluru, which officials said, would be one of its kind, oriented to harness maximum natural lighting and GRIHA rating IV compliant. The building has provision for solar panels for power generation and a Rain Water Harvesting system, they said.
Recycled water will be used for gardening and dual plumbing. The Central Air Cleaning system will be equipped with magnetic filter and UV-Ray Sterilization, officials said, adding the building will be constructed by the Bengaluru Project Circle of the Central Public Works Department.
The officials said the state-of-the art building will comprise an exclusive public relations office to address grievances on priority and a waiting lounge for tax payers.
It also houses Aaykar Seva Kendra for providing hassle free taxpayer services. This centrally located office building is taxpayer friendly. Design and space allocation of the building provides congenial working environment for officers and staff of Income Tax Department, they said.
[ad_2]
CLICK HERE TO APPLY
Benchmark G-Secs can edge up from the current level
[ad_1]
Read More/Less
The benchmark government securities yield fell 10 basis points last week to close at 6.155 per cent on Friday and the momentum is expected to continue this week, according to bond traders who are waiting keenly for the consumer price index (CPI) inflation to be released mid-September.
The rally in the G-Secs market came on the back of a combination of factors like the US Fed Chair Jerome Powell’s dovish stance at the Jackson Hole Summit, high domestic liquidity and absence of key triggers in the market.
Period of apprehension
Bond traders, however, had a period of apprehension post the monetary policy announcement earlier this month.
Indications from the RBI that it is beginning to normalise its monetary policy by balancing liquidity at the shorter end through VRRR, along with one of the MPC members expressing reservation about the accomodative stance, made the market nervous. A primary dealer said there were concerns that more members would convert to hawks.
Fed stance soothes nerves
Bond yields continued to rise gradually and reached a peak of 6.255 per cent ahead of the Jackson Hole summit. However, Powell’s dovish stance calmed the nerves with the benchmark yield moving 10 basis points lower last week to close at 6.155 per cent.
Moreover, traders indicate that there was significant foreign portfolio investors’ (FPI) participation in the G-Secs market last week, especially in long tenor papers.
Vijay Sharma, Senior Executive Vice-President, PNB Gilts said the worst of the inflation seems to be over.
“The situation on the fiscal side is also not bad. It looks like the GST collections are also doing really well. These factors should augur well for bonds in the coming times unless we encounter some unexpected events. We can say that the level of 6.25 is now well protected. The momentum being very strong, the market can rally up to 6.1-6.12 per cent also unless some event pierces the rally,” Sharma said.
Siddharth Shah, head of treasury at STCI Primary Dealer said, at 6.25 per cent levels, the market found comfort in going long.
“Furthermore, the Fed Chair’s speech gave some amount of comfort. With the SDL supply seeing reduction, expectations of additional borrowing diminishing on account of upbeat GST collections, replacement demand for bonds on account of G-SAP amidst high market liquidity, conditions became ripe for a rally in bond yields. The benchmark yield is now close to 6.15 per cent and has the potential to go further down to 6.10-6.12 per cent,” Shah said.
[ad_2]
CLICK HERE TO APPLY
MOVES-Goldman hires Citi banker as co-head of investment banking in MENA
[ad_1]
Read More/Less
DUBAI, Sept 5 – Goldman Sachs has hired senior Citigroup banker Jassim AlSane as its co-head of investment banking in the Middle East and North Africa region, according to two sources familiar with the matter.
AlSane, a Kuwaiti national, has spent 13 years with Citi where he has most recently been managing director in its investment banking unit, focusing on mostly Abu Dhabi and Kuwait, one of the sources said.
Goldman has also hired Omar AlZaim from HSBC as head of investment banking for Saudi Arabia, one of the sources said.
Goldman Sachs and HSBC did not immediately respond to requests for comment. Citi declined to comment.
Bloomberg reported the news of the appointments earlier on Sunday.
Goldman Sachs has been pushing to win deals in Saudi Arabia and Abu Dhabi, where initial public offerings (IPOs) and mergers and acquisitions are on the up.
It landed a lead role https://www.reuters.com/world/middle-east/abu-dhabis-adnoc-adds-goldman-sachs-lead-banks-drilling-ipo-sources-2021-07-01 in the IPO of ADNOC’s drilling unit, sources said in July, in it first such high-profile deal in the emirate since 2019.
Goldman’s investment banking unit was sidelined from any new business from Abu Dhabi more than two years ago after state fund Mubadala’s subsidiary filed a lawsuit against it to recover losses suffered through its dealings with Malaysia’s fund 1MDB.
The lawsuit was dropped last year.
In Saudi Arabia, Goldman is advising on the sale of Saudi Aramco’s gas pipelines stake sale and previously worked on Aramco’s IPO. (Reporting by Davide Barbuscia and Saeed Azhar; Editing by Pravin Char)
[ad_2]
CLICK HERE TO APPLY
ICICI Bank gets Irdai nod to cut stake in non-life arm to 30%, BFSI News, ET BFSI
[ad_1]
Read More/Less
Mumbai: The insurance regulator Irdai has allowed ICICI Bank to bring down its stake in ICICI Lombard General Insurance to 30%. The private bank currently holds just below 52% in the non-life company.
The approval to reduce promoter stake was conveyed to the bank, while approving the scheme of demerger of the general insurance business of Bharti Axa, which was acquired by ICICI Lombard last year through a scheme of arrangement. The scheme will result in the merger of Bharati Axa General Insurance with ICICI Lombard.
Last year, ICICI Lombard had signed a deal to purchase Bharti Axa, as part of which Bharti Axa shareholders will receive two shares of ICICI Lombard for every 115 shares held by them.
Last month, a senior finance ministry official said that the Indian insurance industry is moving from being a promoter-led to a market-led one with the capital markets becoming a dominant source of capital for the companies. The RBI too has been asking lenders to bring down their stake in insurance companies below 50%. In May 2021, HDFC sold overe 44 lakh shares in HDFC Ergo to bring down its stake below 50% and comply with RBI norms.
Approving the reduction in stake, the Insurance Regulatory and Development Authority of India (Irdai) said that the private insurer must ensure that its solvency margin ratio should remain above control level at all times. Also ICICI Bank is required to infuse capital to meet business growth or solvency in proportion to shareholding after merger.
[ad_2]
CLICK HERE TO APPLY
Madhya Pradesh High Court stays RBI notification on UCBs
[ad_1]
Read More/Less
The Reserve Bank of India (RBI) may need to introspect on the notification related to the appointment of managing director/whole-time director in primary (urban) co-operative banks (UCBs). After a ruling by the Gujarat High Court in 2013, which was upheld by the Supreme Court in 2021, the Madhya Pradesh High Court has stayed the implementation of RBI’s notification.
The stay may attract more such petitions in different courts as stakes are very high for States in this matter. Also, traditionally, politicians have a larger say in the affairs of the co-operative sector. As per RBI data on May 31, there are 1,531 UCBs in the country — 53 scheduled and 1,478 non-scheduled.
The Centre recently carved out a Ministry exclusively for co-operatives, seen as questioning States’ authority on the subject.
Although the Banking Regulation (Amendment) Act notified on September 29, 2020 was meant to provide additional power to the central bank for effectively regulating co-operative banks, there is a feeling that it may not be easy, given the Centre-States tussle on the issue. In the latest case, the petitioner, Bairagarh (Madhya Pradesh)-based Mahanagar Nagrik Sahakari Bank had moved the State High Court challenging the constitutional validity of the amended Section 4 of the Banking Regulation Amendment Act, 1965. It had argued that the RBI order dated June 25, 2021, is ‘absolutely incompetent and lacks in authority’.
Eligibility criteria
The RBI’s order debarred persons such as Member of Parliament or State Legislature or Municipal Corporation or Municipality or other local bodies from holding the post of MD/WTD.
Also, persons engaged in any other business or vocation, director of a company (except non-profit one), a partner of any firm which carries on any trade, business or industry, having substantial interest in any company or working as director, manager, managing agent, partner or proprietor of any trading, commercial or industrial concern will not be eligible.
The order states that the tenure of the posts will not be for more than five years at a time, subject to a minimum period of three years at the time of first appointment, unless terminated or removed earlier, and will be eligible for re-appointment. The performance of MD/WTD shall be reviewed by the board annually. Also, the post cannot be held by the same incumbent for more than 15 years. However, after a cooling period of three years, reappointment is possible.
In State’s domain
The petitioner submitted that Bairagarh-based Mahanagar Nagrik Sahakari Bankit was an UCB registered under the MP State Co-operative Societies Act, 1960. The Act governs service conditions of the MD/CEO of the co-operative banks registered under it. It added that the co-operative is part of the State List in the Seventh Schedule of the Constitution while banking is a part of the Union List.
It was argued that the power to legislate co-operative societies falls exclusively with the State and not within the domain of the Union, much less the RBI.
The petitioner’s counsel also submitted that the 97th Constitution Amendment (2011) provided that in case of a co-operative society carrying on the business of banking, the provisions of the Banking Regulation Act 1949 will apply.
This provision was struck down by the Gujarat High Court and recently upheld by the Supreme Court.
The Madhya Pradesh High Court has stayed the operation and effect of the RBI’s order dated June 25. The matter will be listed for further hearing after eight weeks.
[ad_2]