Tag: Covid-19

Credit Suisse offers ₹7.5-cr additional aid to Concern India Foundation, GiveIndia

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Credit Suisse has committed an additional ₹7.5 crore in aid to Concern India Foundation and GiveIndia, to provide financial assistance to hospitals in Mumbai, Pune, Delhi and Bangalore, to help India in its fight against the Covid-19 pandemic.

The financial aid would be utilised to procure critical medical supplies, oxygen and ICU equipment for the hospitals treating Covid-19 patients, it said in a statement.

Credit Suisse is also raising funds from its staff for GiveIndia’s India Covid Response Fund, which will then be matched by the bank through a separate donation. The campaign has already raised more than ₹2.8 crore of additional support so far.

Mickey Doshi, CEO India, Credit Suisse, said, “We are deeply concerned and anguished by the impact of the second wave of Covid-19 in India. Our thoughts are with our impacted colleagues and their loved ones, and with our clients and local communities. Credit Suisse stands in solidarity with everyone in the country during these extremely difficult times. The aid to Concern India and GiveIndia should help in procuring critical medical supplies and equipment for hospitals. This support is our small effort, alongside the notable endeavours of the rest of India Inc. as well as the Indian government, towards ensuring that our healthcare ecosystem gets all the help it possibly can during this unprecedented crisis”.

These initiatives follow the bank’s earlier ₹4.5-crore grant to Concern India Foundation and United Way Mumbai in April 2020, for the procurement of essential equipment at seven hospitals in Mumbai and Pune.

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Covid kills over 1,000 bank employees as virus ravages India

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Indian banks have lost more than a thousand employees and many more are infected, according to an industry body, underscoring the heavy toll that the virus has taken in the Asian country battling the world’s worst coronavirus crisis.

“We have lost more than 1,000 colleagues already,” S. Nagarajan, General Secretary of the All India Bank Officers’ Association told Bloomberg News over phone on Saturday. “Bank employees are frontline workers and the virus is affecting them.”

With more than 24 million people infected in India and over 266,200 dead amid the world’s fastest-growing outbreak, the bulk of Indian States are in a lockdown with strict stay-at-home orders. But the banking sector is slotted as an essential service and partially exempt from the lockdown orders. Lenders are allowed in some cases to call as much as 50% of their workforce in bank branches to avoid any disruption in banking services.

C.H. Venkatachalam, General Secretary of the All India Bank Employees Association — the largest body of bank workers — told the moneycontrol.com website that 1,200 employees had died due to the virus. “Not all banks are forthcoming in sharing the details and compensation policies for the families of those who died due to this virus,” Venkatachalam said.

Venkatachalam was not immediately available to Bloomberg for comments.

The Press Trust of India on Friday reported that Debasish Panda, a senior federal government bureaucrat wrote to State authorities urging them to vaccinate bank and insurance employees against COVID on a priority basis.

India, which is facing a severe vaccine shortage, has administered more than 180 million COVID shots so far. At this rate, it will take a projected 2.5 years to cover 75% of the population with a two-dose vaccine, according to Bloomberg’s vaccine tracker.

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Dollar fights for footing as Fed minutes eyed

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The US dollar found pockets of support in Asia on Monday, but struggled to post gains, as investors are heavily positioned for it to fall further while the US Federal Reserve holds interest rates low and US trade and current account deficits grow.

Easing commodity prices and virus outbreaks in Singapore and Taiwan — where Covid-19 had been contained — helped modest dollar gains of 0.2 per cent against the Australian and New Zealand dollars in the early part of the Asia session. The greenback also rose 0.1 per cent against the euro and the yen. But it remains close to testing major support levels, which if broken could see a return to a downtrend that pressed it lower through April.

Also read: Rupee rises 13 paise to settle at 73.29 against US dollar

A dollar bounce that followed higher-than-expected inflation data last week has also faded as traders figure the Fed will keep rates low. The dollar last traded at $1.2134 per euro and has support around $1.2179. The dollar index is likewise, at 90.389, just above key supports at 89.677 and 89.206. It bought 109.45 yen and traded at $0.7758 per Aussie and $0.7228 per kiwi.

Fed minutes, from an April meeting that predated the data surprise on inflation last week, are due on Wednesday and are the next market focus for clues on the Fed’s thinking.

“We expect the minutes … to reiterate that policymakers consider the pick up in inflation to be transitory,” said Kim Mundy, a currency strategist at the Commonwealth Bank of Australia in Sydney. “The upshot is that we do not expect the (Fed) to consider tapering its asset purchases soon,” she said. “The dollar is expected to resume its downtrend this week after last week’s CPI-inspired boost.”

Speculators increased their bets against the dollar last week, mostly by adding to bets on the euro and to a lesser extent sterling as Britain and Europe head toward recovery. Sterling was perched near a two-and-a-half-month high on Monday, at $1.4085, as Britain reopens its economy after a four-month Covid-19 lockdown.

Things are travelling in the opposite direction in Asia where some early leaders in taming the pandemic are now dealing with new outbreaks. Singapore and Taiwan have both tightened curbs as cases rise and the Taiwan dollar fell to a three-week low on Monday. The dollar crept up 0.1 per cent against the Chinese yuan to trade at 6.4424 ahead of industrial output and retail sales figures due mid-morning on Monday. Elsewhere, cryptocurrencies traded under pressure after another weekend bouncing around following tweets from Tesla boss Elon Musk. Bitcoin hit its lowest since February on Sunday after Musk hinted at Tesla possibly selling its holdings. Bitcoin last traded 2 per cent weaker at $45,302 and ether was 4 per cent lower at $3,421.

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Covid-19 takes a toll on low-income group’s capacity to buy home

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The Covid-19 pandemic took a toll on the capacity of the low-income group (LIG) to buy a home in FY21, going by housing finance bellwether HDFC’s loan approval numbers.

However, the appetite of the higher income group (HIG) and middle-income group (MIG) on this count remained undiminished.

In the LIG segment (annual income: above ₹3 lakh to ₹6 lakh) in number terms, housing loan approvals declined to 27 per cent of overall approvals in FY21 from 30 per cent in FY20, as per HDFC’s investor presentation.

In value terms, too, housing loan approvals in the aforementioned segment were down to 14 per cent of overall approvals against 16 per cent.

This trend could be attributed to buyers’ sentiments getting impacted due to the pandemic, which triggered job losses and salary cuts as trade and industry hunkered down, resorting to desperate cost-cutting measures to stay afloat.

HIG and MIG fare better

Housing loan approvals in the case of the HIG segment (annual income: above ₹18 lakh) in number terms rose to 19 per cent of overall approvals in FY21 from 17 per cent in FY20, as per the presentation.

In value terms, housing loan approvals in the HIG segment were up to 40 per cent of overall approvals against 36 per cent.

In the MIG segment (annual income: above ₹6 lakh to ₹18 lakh), housing loan approvals showed disparate movement in number and value terms .

In number terms, MIG housing loan approvals moved up to 48 per cent of overall approvals in FY21 from 47 per cent in FY20.

However, in value terms, housing loan approvals declined to 44 per cent of overall approvals from 46 per cent. This probably indicates that the cost-conscious MIG segment drove a hard bargain with property developers, who were sitting on huge unsold inventory.

Housing loan approvals to the EWS segment (annual income: up to ₹3 lakh) remained unchanged at 6 per cent in number terms and 2 per cent in value terms of the overall loans approved.

Average home loan size up

In sync with the increased number of home loan approvals to the HIG and MIG segment, HDFC’s average home loan size rose to ₹29.5 lakh in FY21 from ₹27 lakh in FY20.

The average loan to value (the amount of loan that a lender gives relative to the property’s value) declined to 69 per cent from 70 per cent at origination.

The average home loan term and the average age of the borrower came down by a year to 11 years and 38 years, respectively, in FY21.

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FinMin asks States to vaccinate banking industry personnel on ‘priority’ basis

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The Finance Ministry has once again written to the States requesting them to consider putting in place a special dispensation for vaccinating the staff of banks, insurance companies, business correspondents, payment systems and other financial services providers on ‘priority’ basis.

In a letter written on Friday to the Chief Secretaries of States, Debashish Panda, Secretary, Department of Financial Services (DFS), has re-emphasised their critical role in ensuring that branches/offices remain open and functional and continue to provide the complete suite of services to customers. The DFS letter has highlighted that vaccinating the staff of banks and other financial services providers on priority will go a long way in boosting their morale and enhancing their enthusiasm for seamless provision of financial services. The letter pointed out that many bank officials had even succumbed to the virus with some of them losing their lives.

“Since bank staff have to necessarily commute from their homes to their offices/branches and the said officers/branches have to function and remain physically open, may I request your personal attention in kindly instructing all district my magistrates/superintendent of police and other local authorities to cooperate with bank and financial services employees, provide adequate safety and security to them and not hinder or impede their functioning or movement,” said Panda in his letter. It may be recalled that the finance Ministry had, on April 22, written to the State governments to put in place a special system to vaccinate the employees of banks, insurance companies and financial services providers, including banking correspondents and cash logistic providers, on a priority basis.

 

Unfortunate instances

Besides the request to the States for vaccinating bankers on priority, the DFS secretary has also drawn attention to some unfortunate instances that had taken place recently in different States/UTS, where bank employees have been manhandled by State law enforcement authorities. “Likewise, offices of banks and branches have occasionally been ordered to shut down even during permitted banking hours, accompanied by threats. While bank employees are already braving risks to their health and need to be assured about their safety, these incidents result in the exact opposite and end up demoralising them and their families, which leads to disruption in services. This becomes an impediment to account holders access to funds in their hours of need, disbursement of DBT payments, extension of credit to mitigate disruptions to business which should otherwise be uninterrupted and seamless,” said Panda.

He has also highlighted that the Home Ministry had, in its April 29 order, declared banking industry as providers of essential services.

The Parliamentary Standing Committee on Home Affairs on the management of Covid 19 pandemic had recently recognised banking and other financial services industry personal as ‘Covid Warriors’.

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States, UTs not giving priority to bankers to get vaccinated, says AIBOC

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The All India Bank Officers’ Confederation (AIBOC) has requested the Union Ministry of Health Services & Family Welfare (MoHFW) to suitably intervene so that bank employees and other service providers can avail of Covid-19 vaccination easily and on priority basis.

The Association said despite the Parliamentary Standing Committee on Home Affairs recognising bankers as frontline Covid-19 warriors, till date no perceptible initiative has been taken by any State Government/Union Territory (UT), save and except Arunachal Pradesh, for arranging vaccination to the bank employees/workers and their families on priority basis.

Vaccinate banking and insurance sector staff on ‘priority basis’: FinMin to States

‘Undue procrastination’

Emphasising that bankers are rendering yeoman service to the nation during the pandemic to keep the wheels of the economy moving, Soumya Datta, General Secretary, AIBOC, said: “As per information available, nearly 1,500 bankers have succumbed to the virus. The toll has been heavy in the resurgent second wave which has wreaked havoc. It is extremely unfortunate that several young employees and officers below the age of 45 have succumbed to this pandemic.”

Banks roll out special schemes to protect, treat employees amidst Covid surge

Datta observed that had these bankers been vaccinated in time along with other frontline workers, number of precious lives could have been saved.

“This undue procrastination has caused deep angst and resentment across the nation amongst bankers. While all State Governments and UTs arranged for vaccination for the frontline workers particularly for healthcare workers and police department, the bank employees and officials continue to be ignored,” he said.

In a letter to Rajesh Bhushan, Secretary, MoHFW, Datta requested him take up the issues with appropriate authorities in States and UTs for procuring sufficient quantity of vaccine for Bankers, their family members and all service providers, including casual/ contractual workers, business correspondents, workers in cash logistic companies and cash-in-transit companies connected with banks, ATM maintenance personnel, banking correspondents, and security guards on priority basis.

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South Indian Bank launches video KYC account opening

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South Indian Bank has rolled out Video KYC Accounting Opening. This digital initiative helps the customer open an account through a video call just with the help of PAN and Aadhaar number of the customer.

Video KYC is a hassle-free mode of account opening which allows the customer to open an account fully online, completing all KYC procedures instantly. KYC documents are verified, and the signature and photograph are captured in the process. Customers can initiate Video KYC Account Opening by visiting https://videokyc.southindianbank.com . The link will be available in the pre-login page of SIB Mirror+ (Bank’s mobile App) and also in the bank’s website.

Video KYC Account Opening is an Artificial Intelligence and Facial Recognition Technology based account opening process. Customers need to enter their Aadhaar number and PAN in the website. Once the Aadhaar authentication is complete, they will have to input personal details and schedule a video call to complete the KYC process. On successful completion of Video KYC, the account will be automatically opened.

“Video KYC Account Opening eases the account opening process in the pandemic situation and will enhance the digital drive of South Indian Bank,” said Murali Ramakrishnan, Managing Director and CEO.

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Yes Bank enables reward point redemption to refill oxygen cylinders for Covid-19 patients

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Private sector lender Yes Bank has enabled its customers to use their banking and credit card reward points to contribute towards medical oxygen for Covid-19 patients, in partnership with GiveIndia.

“Customers can now redeem their existing reward points to refill oxygen cylinders of 1,500 litre and 6,000 litre, respectively. The reward points redeemed towards oxygen refill will be channelled through GiveIndia and used to replenish medical oxygen at charitable hospitals in Mumbai, Bengaluru and Delhi,” Yes Bank said in a statement on Wednesday.

All donations made either through reward points or using debit or credit card are 50 per cent tax exempted under Section 80G, it further said.

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Term insurance premium may see a fresh round of re-pricing

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Term insurance premium could see a further increase this year with many re-insurers understood to be reviewing rates again.

“The second wave of Covid-19 has impacted mortality and there has been a spike in death claims, which is expected to continue for some time. Also online term insurance rates are still very low in India,” noted an executive with a life insurance company.

“There has been some talks of a fresh review in reinsurance rates this fiscal. It could possibly be in the range of 15 per cent to 20 per cent. Most insurers would have to reprice the premium for term insurance products again but having said that, term insurance premiums in India continue to remain amongst the lowest in the world,” said another executive with a life insurer.

If the move goes through, this would be the second round of increase in premium for term life products in recent years.

Many life insurance companies have since late last year revised term insurance rates after re-insurers hiked underwriting rates for such policies. Most of this hike was passed on to customers, who had to pay about 10 per cent to 15 per cent higher to buy term insurance policies.

However, notwithstanding the possibility of another price hike, most insurers expect term and protection products to continue to see demand from customers given the Covid-19 led uncertainty.

“The pandemic has created a rise in the demand for protection plans, even as the market volatility continued to affect the demand for linked plans. In 2021-22, along with the increased awareness of insurance, a digital push for insurance and any increase in term plan premiums are expected to drive the life premiums,” Care Ratings said in a recent note on first year life insurance premium growth for April 2021.

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Profit rises 13% to Rs 78 crore, BFSI News, ET BFSI

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Private lender DCB Bank on Saturday reported a 13 per cent increase in net profit to Rs 78 crore for the January-March quarter compared to that of Rs 69 crore in the year-ago quarter. Total income of the bank during the January-March quarter of 2020-21 fell to Rs 971 crore from Rs 1,012 crore in the same quarter of 2019-20, DCB Bank said in a regulatory filing. The income from interest as well as from investment fell during the reported quarter from a year ago.

For the FY2020-21, the bank’s net profit remained nearly flat at Rs 336 crore against Rs 338 crore in FY20. Income also was a tad down at Rs 3,917 crore in FY21 against Rs 3,928 crore in FY20.

The bank’s asset quality worsened with the gross non-performing assets (NPAs) spiking to 4.09 per cent of the gross advances as of March 31, 2021, as against 2.46 per cent by the end of March last year.

In value terms, the gross NPAs stood at Rs 1,083.44 crore, significantly higher than Rs 631.51 crore in the year-ago period.

Provisions for bad loans and contingencies in Q4FY21 came down to Rs 101.18 crore from Rs 118.24 crore a year earlier. Net NPAs stood at 2.29 per cent (Rs 594.15 crore) as against 1.16 per cent (Rs 293.51 crore).

On returning the compound interest to eligible borrowers post the Supreme Court final order in March and subsequent the RBI notification, the lender said it is in the process of account by account calculation of interest relief due to the eligible customers.

In the meantime, as of March 31, 2021, the bank has created liability towards estimated interest relief of Rs 10 crore and reduced the same from the interest income.

The bank said it held contingency provision of Rs 229.11 crore against the likely impact of Covid 19 regulatory package, impact of the conclusion of the interim order (of Supreme Court on not declaring accounts as NPAs till August 31, 2020 and after) and other contingencies.

On the impact of second wave of the pandemic, it said under the current circumstances the bank during March quarter, on a prudent basis, has made a contingency provision of Rs 124 crore towards further likely impact of Covid-19 on restructured and stressed assets.

“In addition to this contingency provision of Rs 124 crore, the bank also holds floating provision amounting to Rs 108.80 crore, besides, provisions for standard assets and specific non-performing assets,” it said.

Besides, the amount in overdue categories where the moratorium or deferment was extended as of March 31, 2020 was Rs 1,908.08 crore at end of March this year, it said. The provisions held on these by the end of September 2020 was Rs 68 crore and similar amount was kept as provisions adjusted against slippages (NPA and restructuring), DCB Bank said.

The lender also said that its board has not recommended any dividend for fiscal ended March 2021 in view of the situation developing around Covid-19 in the country and the related uncertainty that it creates.



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