Lenders to take 60% haircut on Authum Infra’s ₹2,887-crore top bid for Reliance Home Fin

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Authum Infrastructure and Investment resolution plan for debt ridden Reliance Home Finance is set to be the successful bid and has received over 75 per cent of the voting by value and over 60 per cent by numbers.

Lenders to the housing finance company are expected to receive ₹2,887 crore of which about 90 per cent or ₹2,587 crore will be paid upfront. The balance 10 per cent amounting to ₹300 crore will be repaid within one year.

Sources indicated that about ₹1,800 crore of cash available with Reliance Home Finance will be distributed to lenders along with the proceeds from the resolution plan.

But with a debt of ₹11,200 crore, lenders would still face a haircut of about 60 per cent.

Bidders

Sources indicated the final voting for the successful plan for Reliance Home Finance will continue till June 19. Voting started on May 31 and was set to be completed on Tuesday (June 15).

But the rest of the voting will not have any impact on the outcome now, they added.

Authum Investment and Infrastructure is a registered NBFC involved in investments in shares and securities. Set up in 1982, it is listed on the BSE and has a networth of over ₹1,500 crore as on December 31, 2021.

The other three bidders for Reliance Home Finance included ARES SSG along with Assets Care and Reconstruction Enterprise, Authum Infrastructure and Investment, Avenue Capital along with ARCIL and Capri Global Capital.

Reliance Home Finance is a subsidiary of Anil Ambani controlled Reliance Capital. Its ₹11,200 crore debt resolution is expected to help Reliance Capital.

Bank of Baroda is the lead banker under the Inter Creditor Agreement for the resolution of debt ridden Reliance Home Finance. The lenders had in August last year proceeded with the resolution plan and had sought bids.

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BBB invites applications for PNB MD & CEO post

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The process of selection of the next Managing Director and CEO of Punjab National Bank (PNB), the country’s second largest public sector bank, has begun with the Banks Board Bureau (BBB) inviting applications for this post.

The incumbent MD & CEO Ch S.S. Mallikarjuna Rao’s term at the helm of PNB is due to end on September 18 this year. Prior to joining PNB as MD & CEO in September 2019, Rao was the MD & CEO of Allahabad Bank since September 2018.

The BBB has now stipulated that any applicant who wants to be considered for this top post at PNB should be in the age group of 45 to 57 years as on September 19, 2021.

Also, the BBB has, among other things, specified that the applicant should have a minimum experience of 15 years in mainstream banking, of which at least one year should be at the board level as on September 19, 2021.

The selected person would hold the office for a period of three years, subject to the age of superannuation as 60 years, according to BBB. The last date for submitting the online application for this post is July 17, 2020, the BBB has said.

The new person who will take over from Rao later this year will have to manage a much larger banking institution as PNB had from April 1 last year gone in for a three way amalgamation with Oriental Bank of Commerce and United Bank of India from April 1, 2020, paving way for the creation of India’s second largest public sector bank with business of over ₹18 lakh crore.

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Canara Bank to be lead sponsor of bad bank, to pick up 12% stake

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The Board of Canara Bank has given in-principle approval for participating in the National Asset Reconstruction Company Ltd (NARCL) as a sponsor by taking 12 per cent equity stake.

The Bengaluru-headquartered public sector bank has sought the Reserve Bank of India’s approval for the same, the Bank said in a regulatory filing.

Banks such as State Bank of India, Bank of Baroda, Bank of India and IDBI Bank are expected to take up to 10 per cent stake in NARCL.

Stressed consortium loans (₹500 crore and above) will be transferred to NARCL. Banks have so far identified 22 stressed assets aggregating about ₹89,000 crore for transfer to NARCL.

Overall, stressed loans aggregating up to ₹2 lakh crore are expected to be transferred by Banks to the company.

Padmakumar Madhavan Nair (Chief General Manager with SBI’s Stressed Assets Resolution Group) has been appointed as MD & CEO of NARCL.

In her Union Budget speech on February 1, 2021, Finance Minister Nirmala Sitharaman said that an Asset Reconstruction Company (ARC) and an Asset Management Company (AMC) would be set up to consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds and other potential investors for eventual value realisation.

Indian Banks Association (IBA) is the Nodal Agency for constituting the ARC and AMC, designated as National Asset Reconstruction Company Ltd (NARCL) and India Debt Management Company Ltd (IDMCL), respectively.

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Spike in May retail inflation leads to drop in G-Sec prices

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Government Securities (G-Sec) prices dropped on Tuesday as the retail inflation reading for May 2021 spiked above the monetary policy committee’s upper tolerance threshold of 6-6.30 per cent against 4.2 per cent in April.

Given that MPC tracks the retail (consumer price index/ CPI-based) inflation gauge closely, if the reading sustains above the 6 per cent mark for another month or two, it will have to do a hard re-think on its ultra-loose monetary policy to tamp down inflation.

Price of the 10-year G-Sec (coupon rate: 5.85 per cent) came down by about 26 paise to close at ₹98.64 (previous close: ₹98.895), with its yield rising 4 basis points to 6.04 per cent (previous close: 6.00 per cent).

Price and yield of bonds are inversely related and move in opposite directions.

‘Double whammy’

Madan Sabnavis, Chief Economist, CARE Ratings, said, “The CPI inflation number at 6.3 per cent is higher than our expectation of 4.9 per cent and is a kind of double whammy for the economy coming as it does over a sharp increase in WPI (wholesale price index-based inflation) by 12.9 per cent.”

He emphasised that high CPI inflation will be a concern for the Reserve Bank of India (RBI) as it is higher than their estimate of 5 per cent.

“Though the stated policy is that growth is more important, which means that repo rate will not be touched, it will be a nagging issue nevertheless especially if inflation remains in this region. We expect it to be around 5.5-6 per cent in next couple of months,” Sabnavis said.

Price of the G-Sec maturing in 2026 (coupon rate: 5.63 per cent) fell 42 paise to close at ₹99.94 ( ₹100.36), with its yield rising about 10 basis points to 5.64 per cent (5.54 per cent).

Price of the G-Sec maturing in 2035 (coupon rate: 6.64 per cent) too declined 42 paise to close at ₹99.94 (₹100.36), with its yield rising about 4 basis points to 6.64 per cent (6.60 per cent).

Suyash Choudhary, Head – Fixed Income, IDFC AMC, observed that the May CPI print will likely on the margin push up the importance of inflation in the growth versus inflation trade-off for RBI.

“This doesn’t necessarily mean that the central bank will start to respond to this right-away. However, the bond market may step up speculation with respect to the shelf-life for RBI’s current ultra-dovishness.

“This may make the task of dictating yields to the market that much more difficult for the central bank. At any rate, in our base case view, RBI would have started to dial back on its level of intervention at some point and we were budgeting for a gradual rise in yields overtime,” he said.

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Bharti AXA General Insurance back in black in FY21; reports ₹120 crore PAT

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Bharti AXA General Insurance recorded a net profit of ₹120 crore on a gross written premium of ₹3,183 crore during financial year 2020-21.

The private general insurer had recorded a net loss of ₹243.63 crore on a gross written premium of ₹3,157 crore in FY20.

Bharti AXA General Insurance achieved a lower combined ratio at 110.5 per cent during FY21 compared to 120.7 per cent in FY20 on account of improved profitability. Market ranking of the company in the private General Insurance sector also improved to 10th from 11th position in previous year despite the pandemic.

Sanjeev Srinivasan, Managing Director and CEO, Bharti AXA General Insurance, said in a statement, “Owing to the Covid-19 pandemic, FY21 has been a challenging year for the industry and especially for us at Bharti AXA General Insurance.

While the overall demand for goods and services across the economy has been relatively low, consumers felt an evident need of insurance on the back of the uncertainty the pandemic has brought.This changing consumer behaviour helped us respond with required solutions and agility through tech advancements. Further, the year demanded realignment with focus on the health and commercial lines segment, and we managed to drive growth in these lines of business on account of increased awareness and launch of new products.”

While the health segment saw a 11 per cent growth at ₹457 crore in FY2020-21 against ₹410 crore last year, Retail health grew by 48 per cent driven by launch of new products and increased awareness due to the pandemic.

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3 Banking Stocks To Buy Today By Angel Broking

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1. Federal Bank:

Kochi-based Federal Bank is a leading commercial bank in the private space. The bank also has international presence in Abu Dhabi, Dubai, Oman, Kuwait etc. Total assets at the bank at the end of FY21 stood at Rs. 1.9 lakh crore, deposits had been at Rs. 1.56 lakh crore while the bank’s loan book was at Rs. 1.2 lakh crore.

For the Q4 quarter of FY21, the company’s loan book registered 7.9% YoY growth owing to strengthening of the retail portfolio. NIM as well as NII too registered an increase, with NII growing by a strong 16.8% YoY to Rs. 1437 crore.

“NPA’s have remained steady for the bank over the past few years with GNPA for Q4FY21 at 3.41% while NNPA ratio stood at 1.19%. PCR at the end of FY21 stood at ~65% which we believe is adequate. Total restructured book stood at Rs. 1409 crore at the end of Q4FY21. This is against earlier expectations of total restructuring of Rs. 3,000-3,500 crore”, added the report.

Key financials for FY2022E

NII- Rs. 7156 crore

NIM – 3.3%

PAT- Rs. 2311 crore

EPS- Rs. 11.6

ROE- 13.4%

P/E- 7.6x

2. IDFC First Bank:

2. IDFC First Bank:

This is the new age private banking firm in the country that other than offering basic banking services including deposits and loan is also into offering investments such as mutual fund, gold bonds etc.

“IDFC Fist Bank, Post management change has clearly outperformed in building liability franchise and retail lending. Since new management took charge, every qtr. liability franchise has been strengthened. CASA ratio improved from 10.4% in Q3FY19 to ~43% In Q4FY21. NIM’s have also been stable for the bank despite interest reversals in Q4FY21”, said the report.

Now as banks will see less of inflow coming from the asset side, the ability to raise funds at low cost shall be the key parameter that will drive banking space from here on. In April this year, the bank raised fresh equity worth Rs. 3000 crore.

For the last quarter ended March 2021, the bank posted a 78% jump in its net profit at Rs. 128 crore. In the corresponding quarter in the year ago period, the profit stood at Rs. 72 crore. For the full year 2021, the profit stood at Rs. 452 crore versus loss of Rs. 2864 crore in the previous fiscal. The stock last traded at a price of Rs. 59.85 per share on the NSE.

Key financial metrics for FY22E

NII- Rs. 8488 crore

NIM- 4.9%

EPS- Rs. 2.5

PAT- Rs. 1425.8 crore

ROE- 7.7%

P/E- 22.7x

3. Shriram City Union

3. Shriram City Union

The leading NBFC from the house of Shriram Group offers specialized services in MSME and retail lending. The major portion of the company’s loan book comprises small business accounts as of FY 2020 end. Also, the company extends 2-wheeler, auto, personal and gold loans.

“The company posted a good set of numbers for the quarter due to positive surprise on the asset quality front. NII for Q4FY21 was up by 3.2% YoY to Rs. 928.5 crore while PPOP was up by 7.2% YoY to Rs. 551 crores. Provision during the quarter was down by 47.4% yoy to Rs. 163.8 crore while profits were up by 84% yoy to Rs. 282 crores. Shriram City Union reported a strong 6.0% sequential growth in disbursement for the quarter which led to a 3.9% qoq growth in AUM to ~ Rs. 29,571 crore”, said the report.

“SCUF surprised positively on the asset quality front Gross stage 3 loans decreased by 9bps qoq to 6.37% in Q4FY21. Net stage 3 for the quarter declined to 3.08% while PCR ratio stood at 51.6%”, added the report.

Key metrics FY2022E

NII- Rs. 4295 crore

NIM- 12%

PAT- Rs. 1343.8 crore

EPS- Rs. 203.6

ROE- 15.3

P/E- 7.8%

GoodReturns.in



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This Stock Gave Multibagger Returns Of 887% In The Last One Year

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Investment

oi-Roshni Agarwal

|

This company shares skyrocketed in price in the last one year and comparing its closing price as on June 15, 2020 of Rs. 157 per share on the NSE, the stock after exactly a year today settled at a price of Rs. 1431.9. In the intra-day trade the company from the steel-sponge iron space touched a new 52-week high price of Rs. 1550.05, a remarkable rally of 887 percent. On the BSE, the stock hit a 52-week high of Rs. 1561.95. This is also the stock’s all-time high price.

This Stock Gave Multibagger Returns Of 887% In The Last One Year

This Stock Gave Multibagger Returns Of 887% In The Last One Year

Which is this company that has delivered multibagger returns and why it is rallying?

The company is none other than Chhattisgarh based integrated steel manufacturer, Godawari Power & Ispat Ltd. (GPIL) Before going to the details of why the stock is rallying here are the few key points of the stock:

1. Number of FII/FPI holding in the stock has increased from 8 to 17 in the quarter ended March, though stake has been reduced to 0.62% from 0.65%.

2. MFs have increased holdings from 0.42% to 0.46%

3. Bullish momentum -As the stock is trading above its short, medium and long term moving averages.

4. M-cap of the firm stood at Rs. 5041 crore after the market closing hours as on June 15, 2021

Why Godawari Power stock rallied phenomenally in the last one year?

The firm’s encouraging financial performance is one main factor that is fuelling the stock price rally. For the March ended quarter, the firm recorded a sharp 879% growth in profit at Rs. 326.95 crore versus Rs. 33.37 crore in the same quarter during the year ago period. Operating profit (excluding other income) also registered an increase of 214.73% to Rs. 489.63 crore versus Rs 155.57 crore profit in the same quarter of the last fiscal year.

For the FY ending 2021, the net profit at the firm climbed 282.77 percent to Rs. 638.39 crore. Also, net sales at the firm edged higher by 23.82% to Rs. 4071 crore versus Rs. 3288 crore for the FY ending March 2020.
Other developments that triggered price rally in Godawari Power and Ispat include:

1. Shareholders of the company gave an approval to pare its stake/ holding in Godawari Green Energy (GGEL) i.e. an important subsidiary of the steel manufacturing company. GGEL is a SPV, with GPIL as the promoter entity and having an equity holding of 77.82 percent on a fully diluted basis.

2. At its meeting on May 25, the board of Directors of the company approved the plan of setting up a captive Solar PV Power Plant of 250 MW capacity in Raigarh District of Chhattisgarh with a cost outlay of Rs. 750 crores.

3. Furthermore, in March this year, the company got clearance from the Chhattisgarh Environment Conservation Board, Raipur in respect of ‘consent to operate’ the augmented capacity of iron ore pellet plant as well as consent with regard to setting up manufacturing facilities in other divisions.

GoodReturns.in

Story first published: Tuesday, June 15, 2021, 20:19 [IST]



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Reserve Bank of India – Tenders

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Reserve Bank of India, Mumbai invites E-tenders for the captioned work, from eligible vendors/contractors those who are having Directorate of Maharashtra fire services authorities valid license for providing man power and support services for Operation and Maintenance of Wet Riser system for Bank`s Main office building & Amar building at Fort, RBI, Mumbai and to submit the required documents i.e., Form-B every six months. The initial period of contract will be one year as per laid down contractual obligations. The work is estimated to cost Rs. 13.26 Lakh all-inclusive taxes per Annum.

1. Online Tenders by e-tendering process are invited for above work at Bank’s Main office building & Amar building at Fort, RBI, Mumbai. The e-tender is to be submitted through the website www.mstcecommerce.com. The work is estimated to cost Rs. 13.26 lakhs all –inclusive taxes per annum and is to be completed within 90 days.

2. The intending tenderer must have Directorate of Maharashtra fire services authorities valid license and experience in Similar works such as Maintenance of wet Riser and Fire Fighting System for office buildings/residential premises. The contractors should have Fire Authorities valid license minimum up to the contract period.

3. Online Tenders will be available to view/download for all firms from 05:00 PM on -15.06.2021 but only those contractors who have minimum 5 years’ experience in the field of undertaking similar works of wet riser system works, maintenance services and during last 5 years (works completed on or after May 31, 2016) and have executed successfully similar works individually costing as under:

(a) Three works each costing not less than 40% of Rs. 13.26 Lakh

OR

(b) Two works each costing not less than 50% of Rs. 13.26 Lakh

OR

(c) One work costing not less than 80% of Rs. 13.26 Lakh

AND

(d) Have a minimum yearly turnover of 100% of the Rs. 13.26 Lakh during the last 3 financial years

AND

(e) Have a service set up in Mumbai for rendering maintenance service. Only tenderers who qualify as above will be eligible to participate in the tender for the work.

(f) Should have valid license copy issued by Maharashtra Fire Services.

The required documents evidencing compliance of all the above criteria (Pre-Qualification Papers) shall be submitted by the firm on or before July 6, 2021 by 05:00 PM at Fort Office Estate Cell or by email to anandmahadevan@rbi.org.in and abhayjoshi@rbi.org.in

3. The contractors shall also be required to furnish, at the time of submitting Pre-Qualification papers the following information in writing along with documents to satisfy the Bank about their eligibility for participating in the tendering process:

(a) Composition of the firm Full particulars (whether contractor is an individual or a partnership firm or a company etc.) of the composition of the firm of contractors in detail should be submitted along with the name(s) and address(es) of the partners, copy of the Articles of association/power of Attorney/any other relevant document
(b) Work experience and completion of similar works of specified value during the specified period Copies of the detailed work orders for the qualifying works indicating date of award, value of awarded work, time given for completing the work, etc. and the corresponding completion certificates indicating actual date of completion and actual value of executed similar works should be enclosed in proof of the work experience.

The details along with documentary evidence of previous experience if any, of carrying out works for the Reserve Bank of India at any centre should also be given.

(c) Creditworthiness of the contractor & their Turn over during the specified period Copies of the Income Tax Clearance Certificates/Income Tax Assessment orders along with the latest final accounts of the business of the contractor duly certified by a Chartered Accountant should be enclosed in proof of their creditworthiness and turnover for last three financial years.
(d) Name(s) and address(es) of the Bankers and their present contact executives Written information about the names and address of their bankers along with full details like names, postal addresses, e-mail IDs, telephone (landline and mobile) nos., fax nos. etc. of the contact executives (i.e. the persons who can be contacted at the office of their bankers by the Bank, in case it is so needed) should be furnished
(e) Details of bank accounts Full particulars of their bank accounts, like account no., type, when opened etc. should be given
(f) Name(s) and address(es) of the Clients and their present contact executives. Written information about the names and addresses of their clients along with full details, like names, postal addresses, e-mail IDs, telephone (landline and mobile) nos., fax nos. etc. of the contact executives (i.e. the persons who can be contacted at the office of their clients by the Bank in case it is so needed) should be furnished.
(g) Details of completed works The client-wise names of work(s), year(s) of execution of work(s), awarded and actual cost(s) of executed work(s), completion time stipulated in the contracts (s) and actual time taken to complete the work(s), names and full contact-details of the officers/authorities/departments under whom the work(s) was/were executed should be furnished.
(h) Details of Service setup Address and contact details of the service set up at the place of proposed work place i.e., Mumbai for rendering after sales service.
(i) Registration proofs* ESI, EPF, Labor laws, GST registration (*All the applicable bidders shall submit the copy of registration and if not applicable, an undertaking may be given for the same. All the bidders should give an undertaking /declaration in attached format.
(j) Electrical contractor License Electrical contractor license issued by the PWD/competent authority shall be furnished.
(k) Maharashtra state fire services department Local Authority /competent authority shall be furnished

4. In the event of intending tenderer’s failure to satisfy the Bank, the Bank reserves the right to refuse their participation/reject their tender.

5. Tender forms will be available for download on MSTC Website http://www.mstcecommerce.com from 05:00 PM on 15.06.2021. A pre-bid meeting of the eligible bidder (who meets the PQ criteria) will be held on 13.07.2021 at 11:00 AM in the Bank’s Office Building, Estate Cell, Fort Office, Mumbai

The Pre-Qualification papers super scribed as “Pre-Qualification documents for Annual Maintenance Contract for Operation and Maintenance of Wet Riser system for Bank`s Main office building & Amar building at Fort, RBI, Mumbai.” addressed by name to Shri. Ajay Michyari, Regional Director, Reserve Bank of India, shall be submitted to AGM (Admin) Estate Cell, Fort Office Mumbai latest by July 6, 2021 till 05:00 PM for Bank’s examination. Alternatively, the scanned copy of all the PQ document may be forwarded to mail id: abhayjoshi@rbi.org.in and anandmahadevan@rbi.org.in latest by July 6, 2021 till 05:00 PM. However those firms who have forwarded the scanned copies through mail has to submit the original copies of PQ documents on or before July 6, 2021 till 05:00 PM.

6. An EMD of Rs. 26,520/- (Twenty Six Thousand Five hundred twenty Only) shall be submitted by the eligible tenderer on or before July 22, 2021 by 02:00 PM in the form and manner as prescribed in the Part-I of the tender.

7. Tender in prescribed form shall be submitted in two parts in online mode. Part-I tender will contain an online undertaking towards acceptance of Bank’s standard technical and commercial conditions for the proposed work, tenderers’ covering letter (scanned copy to be uploaded) and Part-2 (Price bid) to be filled online.

9. Part I of the tenders will be opened at 3:00 PM on July 22, 2021 in the online mode. Part II of the online tender will be opened on subsequent date, with due intimation to the eligible tenderers.

10. The applicants /tenders have to submit in a sealed envelope /cover:

  1. Client’s certificate as per format mentioned in the tender.

  2. Banker’s certificate as per format mentioned in the tender.

The certificates should be addressed to Shri. Ajay Michyari, Regional Director, Reserve Bank of India, Estate Office, Fort Cell, 2nd Floor, Mumbai- 400 001 and shall be submitted on or before 05:00 PM on July 6, 2021 in a sealed envelope/cover to AGM (Admin), Estate Cell, Fort Office, Mumbai. The client’s certificate shall be accepted only when the same is signed by an official of the rank of Executive Engineer or equivalent in respect of a Government/Semi Government organization or a PSU. The client’s certificate issued by the private organizations shall also accompany Tax Deducted at Source (TDS) certificates. Applications/tenders received without the above certificates are liable for rejection. The Bank shall have the right to independently verify these certificates.

The Bank shall evaluate the said reports before evaluation of price bid of the tenderers. If any tenderer is not found to possess the required eligibility for participating in the tendering process at any point of time and/or his performance reports received from his clients and/or his bankers are found unsatisfactory, the Bank reserves the right to reject his offer even after opening of Part-I of the tender. The Bank is not bound to assign any reason for doing so.

11. The Bank is not bound to accept the lowest tender and reserves the right to accept either in full or in part any tender. The Bank also reserves the right to reject any or all the tenders without assigning any reason thereof.


SCHEDULE OF TENDER (SOT)

a. e-Tender no RBI/Mumbai/Estate/516/20-21/ET/803
b. Mode Of Tender e-Procurement System
(Online Part I – Techno-Commercial Bid and Part II – Price Bid through www.mstcecommerce.com/eprochome/rbi)
c. Date of NIT available to parties to download 15.06.2021 from 05:00 PM onwards
d. Pre-Bid meeting 11:00 AM on 13.07.2021 at 2nd Floor, Estate Cell, Fort Office, Mumbai 400001
e. Earnest Money Deposit ₹ 26,520/- (Rupees Twenty Six Thousand Five hundred twenty only) by NEFT or in the form of DD on or before 2:00 PM on July 22, 2021.

The DD shall be submitted in sealed cover addressed by name to Shri Ajay Michyari, Regional Director, Main Office Building, Reserve Bank of India, Fort, Mumbai -400001 so as to reach Estate Office, Second Floor, Main Office Building, Reserve Bank of India, Fort, Mumbai- 400001

NEFT Details
A/c No – 04861436206
IFSC CODE – RBIS0MBPA04

f. Last date of submission of EMD July 22, 2021 till 2.00 PM
g. Last date of submission of Pre-Qualification (PQ) papers July 06, 2021 till 5:00 PM
h. Date of Starting of e-Tender for submission of on line Techno-Commercial Bid and price Bid at www.mstcecommerce.com/eprochome/rbi June 15, 2021 from 05:00 PM onwards
i. Date of closing of online e-tender for submission of Techno-Commercial Bid & Price Bid July 22, 2021 till 2.00 PM
j. Date & time of opening of Part-I (i.e. Techno-Commercial Bid)

Part II of the online tender will be opened on same day or subsequent date, which will be intimated to the tenderers in advance.

July 22, 2021 at 3.00 PM

Shall be intimated to the eligible bidders subsequently

k. Transaction Fee Rs.1000/- plus GST @18%

To be paid through MSTC payment Gateway/ NEFT/RTGS in favour
Of MSTC Ltd.

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Reserve Bank of India – Press Releases

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The Reserve Bank of India vide directive DoS.CO.UCBs-West/D-1/12.07.157/2019-20 dated June 15, 2020 had placed Karnala Nagri Sahakari Bank Ltd., Panvel, Raigad, Maharashtra under Directions from the close of business on June 15, 2020 for a period of six months. The validity of the directions was extended vide Directive DOR.AID/D43/12.22.365/2020-21 dated December 14, 2020 up to June 15, 2021.

2. It is hereby notified for the information of the public that Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the aforesaid Directions shall continue to apply to the bank till August 15, 2021 as per the directive DOR.AID/D-16/12.22.365/2021-22 dated June 15, 2021, subject to review.

3. All other terms and conditions of the Directive under reference shall remain unchanged. A copy of the directive dated June 15, 2021 notifying the above extension is displayed at the bank’s premises for the perusal of public.

4. The aforesaid extension and /or modification by Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/368

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Reserve Bank of India – Press Releases

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The Reserve Bank of India (RBl) has imposed, by an order dated June 14, 2021, a monetary penalty of ₹6.00 lakh (Rupees Six Lakh only) on the Bijnor Urban Co-operative Bank Limited, Bijnor (the bank) for contravention of sections 20 and 35A read with section 56 of the Banking Regulation Act, 1949 and regulations on ‘Guarantees, co-acceptances and letters of credit’. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid provisions of the Act and directions issued thereunder by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, that the bank failed to adhere to the provisions related to prohibition on director related loans and issue of performance guarantee. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for violation of the said directions.

After considering the bank’s written reply and oral submissions made by the bank during personal hearing and subsequent additional submissions, RBI came to the conclusion that the aforesaid charge of non-adherence/violation of provisions of the Act and directions issued thereunder by RBI was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/367

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