Tag: reserve bank of india

‘Focus on growth will continue’

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The six-member monetary policy committee decided to maintain status quo on the policy repo rate to support growth, which has been laid low by the second Covid-19 wave , and to tackle inflationary pressures arising from rising global commodity prices, especially crude oil, and logistics costs.

RBI Governor Shaktikanta Das and Deputy Governors MK Jain, MD Patra, M Rajeshwar Rao, and T Rabi Sankar fielded questions from the media. Excerpts:

Why is RBI focussed only on supporting the 10-year benchmark Government Securities (G-Secs) in its market interventions?

Das: We focus on the entire yield curve, across maturities, and not just the 10-year G-Secs. Somehow there is a perception about the RBI being focussed only on 10-year G-Sec. For example, in the last G-SAP (G-Sec Acquisition Programme) auction, we had G-Secs across the maturity profile for purchase. The bond yields look inverted because there is abundant liquidity. So, naturally, the short-end (G-Secs) rates fall more than 10-year or 14-year rates. Therefore, the curve looks steep. But it is not so. If you look at the 10-year or the 14-year segments, the rates haven’t really gone up.

Whether 6 per cent yield on the 10-year G-Secs is sacrosanct, there is nothing like that. We have talked about an orderly evolution of the yield curve and we are focussed on that.

How will lower inflation print for April give you more elbow room?

Das: The inflation print for April at 4.3 per cent gives us elbow room. And elbow room means, it gives us space with regard to liquidity operations, enables us to step up liquidity infusion into the system.

With inflation being revised up, does it mean that policy normalisation will start?

Das: With regard to normalising the policy stance, there is no thinking at the moment. Our earlier CPI inflation projection was 5 per cent and now we have revised it to 5.1 per cent. This is not a significant upward revision.

What is your assessment of the impact of the second wave?

Das: Rural and urban demand was dented in the first wave. But the expectation is that the second wave has moderated (in terms of number of fresh cases)….Our assessment is that the impact of the second wave will be confined within the first quarter.…Our expectation is that from the second quarter, the overall demand position also will improve.

How long can you look through incipient inflationary pressures?

Patra: In several MPC statements, the analysis of inflation has been done. And the view of the MPC is that at this time the inflation is not persistent. It will turn persistent when it is backed by demand pull. At the current stage, we find the demand very weak and there is no demand pull in the inflation formation. It is mostly on the supply side and therefore we have chosen to look through. But we are very, very vigilant about demand pressures and we will keep on monitoring as and when demand pressures start feeding into the inflationary process.

How concerned are you about the pass through of WPI inflation into CPI?

Das: We are monitoring the the revival of growth — how growth is taking roots. We are monitoring the inflation dynamics…So, the MPC has consciously decided to focus on growth and give forward guidance in terms of the accommodative stance, spelling out what is meant by accommodative. So, the focus on growth will continue. The inflation, according to the MPC’s assessment, during the current year, is 5.1 per cent, which is well within the 2-6 per cent band.

Corporate loan book has not picked up and private capex revival has not started. What is your assessment and, based on the announcements today, is there no need for a stimulus package?

Das: We have not told banks to push credit. We discussed the credit flow in the earlier meeting…We have requested banks to implement the resolution framework. The RBI never tells banks to push credit. Credit flow depends on market demand and borrower profile and borrowing proposal. The dent on the economy is in the first quarter. From the second quarter, overall economic activity will pick up.

NPAs of banks will remain within the stress test of Financial Stability Report ?

Das: On NPAs, the projection (FSR said GNPA ratio may rise from 7.5 per cent in September 2020 to 13.5 per cent by September 2021 under the baseline scenario; the ratio may escalate to 14.8 per cent under the severe stress scenario) we gave in the last FSR will be within that. The figures are manageable. We will spell out the details in the FSR.

Do you see a risk to the general government’s debt sustainability over the medium term?

Patra: Public debt will be about 90 per cent of GDP at the end of March 2022. Our assessment is based on the Domar condition of (public debt) sustainability, which requires that the growth rate of the economy should be higher than the interest rate at which the government services the debt, that condition is fulfilled as of now. The level of debt-to-GDP is set to decline over the next six years. So public debt is sustainable.

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Will the proposed Bad Bank cure India’s banking sector? Here’s how it may shape up

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The earlier FSR released in January 2021 had projected that the gross non-performing assets (GNPAs) of banks may rise to 13.5% by September 2021 in the baseline scenario.

By Nitin Jain

In Feb 2021, RBI announced a structure for a proposed bad bank, “What you call a bad bank is not really that; an ARC-type entity will be set up to take over bad loans from the books of public sector banks and it will try to resolve just like any other ARC,” RBI Governor Shatikanta Das had said.

Proposed Structure of Bad Bank

Though no formal structure has been announced yet, we understand basis news reports, that a National Asset Reconstruction Company Limited (NARCL) is going to be set up to take over NPAs from banks. The Promoters are likely to be power finance companies while the PSU banks will hold the remaining equity stake in the ARC. As per recent news reports, state-owned banks have shortlisted 28 loan accounts to be transferred to the NARCL with a total of Rs 82,500 crore of loans due, and further loans could also be transferred such that the AUM is over Rs 2 lakh crore. The list of borrowers includes big names such as Videocon Oil Ventures Limited (VOVL), Amtek Auto, Reliance Naval, Jaypee Infratech, Castex Technologies, GTL, Visa Steel, Wind World, Lavasa Corporation, Ruchi Worldwide, Consolidated Construction.

Normally the NPA loans at the time of takeover by an ARC are valued around 30-40% of the principal amount. However, as we understand from news sources, in the case of NARCL the loans may be acquired at the current book value. The NARCL would pay 15% in cash and the balance 85% in security receipts or any other proportion as they may decide. Further, the government would provide a guarantee to the security receipts issued by the bad bank. Let’s assume that a bank sells a loan of Rs 100 to NARCL. Now, if the Bank has already made 75% provisions for the loan, then the book value of this loan is Rs 25, and 15% of Rs 25  i.e. Rs 3.75 is cash to be paid to banks. Thus, using these assumptions, for taking over say Rs 2 lakh crore of bad loans, a cash outflow of Rs 7,500 crores and issuance of SRs worth Rs 42,500 crore may be required. (Please note that these assumptions have been taken for the purpose of explaining this concept only and are not indicative or confirmatory in any nature).

Pros and Cons of the Proposed Bad Bank Structure

Pros
-Cleans the balance sheet of the banks.
-Will provide immediate relief to the banking system which will now be facing fresh NPA on account of disruption due to Covid.
-Banks will become capitalized and ready for fresh lending.
-Faster decision making by one body (NARCL) v/s Consortium of banks.
-A secondary market can be created for the SRs which have a sovereign backing, that would provide further liquidity to the banks.

Con
The actual recovery of these loans may be lower than the book value of the loans transferred, thereby could lead to erosion of capital at NARCL over the medium and long term.
-If NARCL will need to take decisive, focused steps to recover these loans, otherwise the process may not be successful.
-The process entails transferring the bad loans at current date, and recovery or resolution to happen in future.
-May lead to aggressive fresh lending by Banks.

Taking control of management of these companies from the Promoters. The RBI had demonstrated effective management of DHFL, by taking over the board and appointing an administrator to manage the company and find a resolution.However, a Bad Bank, or even a network of bad banks, will not make the losses disappear. The losses, or non-performing loans, transferred to a bad bank will still exist. The process may allow better recovery of these loans in future. It will be important for the banks to review their lending policies and put in place a robust risk management system.  Further, it would be crucial to see how NARCL will manage these bad assets. I believe that one will require specialized expertise for recovery of these bad assets such as:

-Interim Crisis Management in these Companies – restructuring, reducing costs, identifying surplus assets and to sell these assets to generate liquidity, and providing transparent and clear communications to all stakeholders.
-Classification of bad loans by sector. The Government already has significant expertise in the Road/ Highways and Power Sector via its Undertakings. However, expertise may need to be built in other sectors via sector experts to facilitate day-to-day management of the operations of the company and to find a viable resolution to preserve value.
-Provisioning policies of NARCL will need to be reviewed such that they are in accordance with the tenor/ maturity of the SRs issued.
-NARCL will need to take a decision as to the route to be taken for recovery from the bad loan. Some potential routes could be: 

    1. Initiating corporate insolvency process on the Company
    2. Engaging an investment banker to pursue mergers and acquisitions transaction for the said asset.
    3. Undertake a compromise or settlement u/s 230 of Companies Act.

Though the ‘Bad Bank’ appears to be a sweet pill for the banking sector to get rid of their immediate problems, it would be a tough task ahead for the proposed NARCL to preserve the tax- payers’ monies over the medium and longer term.

(Nitin Jain is a veteran corporate and investment banker having worked in banks like Standard Chartered Bank and Bank of America. He is a Restructuring Expert and is also an Insolvency Professional registered with IBBI. The views expressed in the above article are the author’s personal views.)

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Bank NPAs may be contained within earlier FSR numbers, says RBI governor, BFSI News, ET BFSI

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The Reserve Bank of India sees the non-performing assets of banks remaining within the projections of the financial stability report (FSR) given out in January.

“On NPA position our expectation is that whatever projection we have given in the last FSR, it will be within that. At the end of the March it looks the figures are quite manageable,” RBI Governor Shaktikanta Das told reporters after the Monetary Policy.

“I would not say anything beyond that because the numbers are coming in and our teams are assessing and we will spell out the details in the financial stability report,” he said.

Stable capital position

He said a large number of banks, both in public and private sectors, have raised additional capital from the market through out last year.

“I have mentioned in my statement the need to build up provisioning and capital buffers. so that is the message we are giving to banks and NBFCs that they need to augment their capital because there could be some stress arising out of the second wave. That is still an assessment.”

The overall capital position of the banks both in the public and private sector is at very stable levels and they are meeting the regulatory requirements, with some being even much higher.

Financial stability report

Banks’ gross non-performing assets may rise to 13.5% by September 2021, from 7.5% in September 2020 under the baseline scenario, according to the Financial Stability Report (FSR) released by RBI in January this year.

If the macroeconomic environment worsens into a severe stress scenario, the GNPA ratio may escalate to 14.8%, the report had said.

“The stress tests indicate that the GNPA ratio of all scheduled commercial banks (SCBs) may increase from 7.5% in September 2020 to 13.5% by September 2021 under the baseline scenario,” the FSR report added.

Among the bank groups, public sector banks’ (PSBs) GNPA ratio of 9.7% in September 2020 may rise to 16.2% by September 2021 under the baseline scenario, it noted.

The gross non-performing asset (GNPA) ratio of private sector banks (PVBs) and foreign banks (FBs) may increase from 4.6% and 2.5% to 7.9% and 5.4%, respectively, over the same period.

In the severe stress scenario, the GNPA ratios of PSBs, PVBs and FBs may rise to 17.6%, 8.8% and 6.5%, respectively, by September 2021, the report said.



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RBI to extend ₹16,000-cr special liquidity facility to SIDBI

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The Reserve Bank of India (RBI) has decided to extend a special liquidity facility of ₹16,000 crore to the Small Industries Development Bank of India (SIDBI) to support the funding requirements of micro, small and medium enterprises (MSMEs), particularly smaller MSMEs and other businesses, including those in credit-deficient and aspirational districts.

SIDBI can tap this facility for on-lending / refinancing through novel models and structures.

Also read: SIDBI launches quick credit delivery schemes to support Covid-19 preparedness

“This facility will be available at the prevailing policy repo rate for a period of up to one year, which may be further extended depending on its usage,” RBI Governor Shaktikanta Das said.

RBI had extended fresh support of ₹50,000 crore on April 7, 2021 to all-India financial institutions (AIFIs) for new lending in 2021-22. This included ₹15,000 crore to SIDBI.

With the new facility announced on Friday, the total liquidity support to SIDBI goes up to ₹31,000 crore.

Krishnan Sitaraman, Senior Director & Deputy Chief Ratings Officer, CRISIL Ratings, said: “The ₹16,000-crore special liquidity facility through SIDBI will provide some cash-flow relief to MSMEs and small borrowers through refinancing / on-lending.

“This will help beneficiaries recover and stabilise operations once the lockdowns start easing and the business environment improves.”

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RBI non-commital on money printing, says handling govt borrowings smoothly, BFSI News, ET BFSI

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Reserve Bank of India is non-committal on printing notes to spur demand as sought by many including former finance minister P Chidambaram and veteran banker Uday Kotak.

“It is a very hypothetical question at this point of time. With regards to printing of notes, the central banks have their own models, own assessments, I have seen many remarks which have come,” RBI governor said responding to a query at the post monetary policy press conference.

Central banks take decisions on so many complex factors, which relate to financial, stability, inflation, stability of exchange rate, he said.

Government borrowings

At the moment the borrowing requirement of states and Centre, the Reserve Bank of India has been able to handle it very successfully last year, he said, adding that the borrowing rates were lowest in 16 years last year. This time also the RBI has taken measures in the form of GSAP I and II. In addition to the GSAP option of Rs 60,000 crore done so far, the RBI has injected Rs 36,400 crore through other operations in the secondary market in the NDS home operations, he said.

The borrowing is going on smoothly and that is how the situation is, he said.

Money printing clamour

Former finance minister P Chidambaram too had advised money printing to fight the crisis. “We have the space and the sovereign right to print money. If at any point the government feels that too much is being printed, it can always stop printing money. But at the moment, I think printing money is clearly advised,” Chidambaram had said

Kotak Mahindra Bank CEO Uday Kotak has said that India needs to expand its balance sheet and print money to support the economy ravaged by the ongoing Covid-19 crisis.

“In my view, this is the time to expand the balance sheet of the government, duly supported by the Reserve Bank of India (RBI) for monetary expansion or printing of money. The time has come for us to be doing some of that. If not now, when?” Kotak had told a television channel last month.



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RBI’s MPC begins deliberations amidst hopes of status quo in policy rate

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The Reserve Bank of India’s rate-setting panel, Monetary Policy Committee (MPC), began its three-day deliberations on Wednesday amid expectations of status quo on the benchmark rate, mainly on account of uncertainty over the impact of the second wave of the Covid-19 pandemic.

Moreover, fears of firming inflation may also refrain the MPC from tinkering with the interest rate. . The outcome of the bi-monthly monetary policy meeting will be announced on Friday.

Also read: How the RBI managed a large surplus transfer to the Centre in a difficult year

The RBI had kept key interest rates unchanged at the last MPC meeting held in April. The key lending rate, the repo rate, was kept at 4 per cent and the reverse repo rate or the central bank’s borrowing rate at 3.35 per cent.

M Govinda Rao, Chief Economic Advisor, Brickwork Ratings, said the better-than-expected GDP numbers provide the much-needed comfort to the MPC on the growth outlook.

However, with the imposition of partial lockdown-like restrictions to contain the virus spread in several parts of the country, the downside risk on growth recovery has intensified, he said.

“Hence, the RBI is likely to continue with its accommodative monetary policy stance. Considering the risk of inflation emanating from the rising commodity prices and input costs, Brickwork Ratings expects the RBI MPC to adopt a cautious approach and hold the repo rate at 4 per cent,” he noted.

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com believes the RBI can maintain its accommodative stance in light of the economic impact of the second wave of Covid-19, without endangering its key goal of keeping inflation under control.

Reviving growth has become an important objective due to the economic damage caused by the recent lockdowns, he said, and added the RBI should also consider providing more liquidity to the National Housing Bank to enable the stability of housing finance companies, which in turn will allow the real estate sector to expand.

Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank was of the view that in the current environment, the choices before the Monetary Policy Committee may be limited.

“With the second phase of the pandemic impacting consumption and growth, the MPC will likely maintain status quo on policy rates, continue with an accommodative policy stance and ensure adequate liquidity in the system – all in an effort to stimulate growth. While it will keep one eye on inflation levels on the back of rising global commodity prices, it currently will focus on supporting economic growth,” Ekambaram said.

According to Sandeep Bagla, CEO of TRUST AMC, “It is expected to be a no change policy, with continued economy friendly soft interest rate bias.”

The RBI annual report released last week has already made it clear that “the conduct of monetary policy in 2021-22 would be guided by evolving macroeconomic conditions, with a bias to remain supportive of growth till it gains traction on a durable basis while ensuring inflation remains within the target.” The Reserve Bank, the report added, would ensure that system-level liquidity remains comfortable during 2021-22 in alignment with the stance of monetary policy, and monetary transmission continues unimpeded while maintaining financial stability.

In the assessment of the RBI, the evolving CPI inflation trajectory is likely to be subjected to both upside and downside pressures. The food inflation path will critically depend on the temporal and spatial progress of the south-west monsoon in 2021.

The government has retained the inflation target at 4 per cent with the lower and the upper tolerance band of 2 per cent and 6 per cent, respectively, for the next five years (April 2021 – March 2026).

Also read: ‘RBI may keep repo rate unchanged’

Retail inflation, based on Consumer Price Index (CPI), slipped to a three-month low of 4.29 per cent in April mainly on account of easing of prices of kitchen items like vegetables and cereals. The RBI mainly factors in the CPI while arriving at its monetary policy.

As per the RBI annual report, supply-demand imbalances may continue to exert pressure on food items like pulses and edible oils, while prices of cereals may soften with bumper foodgrains production in 2020-21.

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Investors cheer after RBI clarifies crypto trading isn’t banned

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The Reserve Bank of India’s clarification that cryptocurrency trading isn’t banned in the country is a welcome relief for a community facing push-back from traditional lenders needed to help settle these deals.

The regulator late on Monday told banks not to cite a 2018 central bank circular as a reason to hinder crypto trades, given the Supreme Court has since squashed the order. “Banks must continue with other routine due diligence measures on the deals,” the RBI said.

Also read: A glimmer of hope for cryptos in India

The RBI order follows local media reports that financial firms, including SBI Cards & Payment Services Ltd., one of India’s biggest credit card issuers, and the nation’s largest private-sector bank HDFC Bank Ltd. had cautioned customers against dealing in virtual currencies. Indian authorities have repeatedly expressed concern that crypto assets could be used for criminal activity such as money laundering and funding terrorism.

“Investing in crypto has always been 100 per cent legal in India and the new RBI circular clearly confirms the right to do business with crypto firms,” said Avinash Shekhar, co-Chief Executive Officer at ZebPay, India’s oldest crypto exchange. He added that the clarification will attract more investors to the virtual currencies.

Also read: What’s next in the world of cryptos and blockchain?

“The RBI’s broader concerns and banks’ worries around money laundering should help to spur regulations and make the industry safer and stronger,” said Sumit Gupta, CEO and co-founder of crypto exchange CoinDCX.

Bitcoin, the largest cryptocurrency, was little changed as of 12:15 pm in Hong Kong on Tuesday, after having gained in the two previous sessions.

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RBI raises heat on foreign banks over data storage norms violations, BFSI News, ET BFSI

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After social media firms, it’s time for foreign banks to strictly comply with rules in India.

The Reserve Bank of India (RBI) has pulled up several multinational banks operating in the country for not providing a board-approved system reporting certifying compliance with its data-localisation norms.

Last month, the central bank had barred American Express Bank and Diners Club from on-boarding new customers citing violation of data storage norms.

In a recent communication, the RBI said that a majority of banks are yet to submit system audit reports certifying compliance to storage norms even after three years since the issuance of the circular.

Many banks have said that the audit norms did not apply to them and this was not acceptable. The central bank had asked banks to submit their compliance along with a plan of action on or before May 15, 2021.

The RBI norms

According to the RBI’s norms, data on payments has to be stored in systems located “only in India” and data processed abroad has to be brought back to the country within 24 hours.

The central bank said Payment System Operators (PSO) can process transactions outside India, but “the data should be deleted from the systems abroad and brought back to India not later than the one business day or 24 hours from payment processing, whichever is earlier”.

“The complete end-to-end transaction details should be part of the data,” the RBI had said.

What foreign banks say?

Several foreign banks have been unable to issue an audit report stating that all personal and non-personal transaction data which has been sent overseas for processing has been permanently deleted.

Many banks had responded to the RBI’s directive and said that much of their processing was centralised and it was not feasible to restructure global operations and create a separate hub in India. The RBI then clarified that while data can be stored only locally, it can be sent intraday for processing but should be deleted from offshore servers in 24 hours.

Banks are required to provide a system audit report certifying compliance with the RBI rules. The audit has to be conducted by auditors empanelled by the Indian Computer Emergency Response Team (CERT-In, in the ministry of electronics.)

American Express, Diners Club

In April, the RBI has restricted American Express Banking Corp and Diners Club International from on-boarding new domestic customers onto their card networks from May 1 for violating data storage norms.

American Express Banking Corp and Diners Club International Ltd are Payment System Operators authorised to operate card networks in the country under the Payment and Settlement Systems Act, 2007 (PSS Act).

The RBI has imposed the restrictions on American Express Banking Corp and Diners Club International by an order dated April 23, 2021.

“These entities have been found non-compliant with the directions on Storage of Payment System Data,” the RBI said.

The supervisory action, it added, has been taken in the exercise of powers vested in RBI under the PSS Act.



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RBI data, BFSI News, ET BFSI

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Non-food bank credit grew at 5.7 per cent in April 2021 as against 6.7 per cent in the year-ago month, RBI data showed.

The growth in advances to agriculture and allied activities accelerated to 11.3 per cent in April 2021 as compared to a 4.7 per cent growth in April 2020, the data on Sectoral Deployment of Bank Credit – April 2021, released by the Reserve Bank of India on Monday, showed.

Credit growth to industry decelerated to 0.4 per cent in April 2021 from 1.7 per cent in April 2020.

However, credit to medium industries registered a robust growth of 43.8 per cent in April 2021 as compared to a contraction of 6.4 per cent a year ago, the data showed.

Growth in loans to micro and small industries accelerated to 3.8 per cent in April this year as compared to a contraction of 2.2 per cent a year ago, while credit to large industries contracted by 1.9 per cent as compared to a growth of 2.7 per cent a year ago.

Within industry, credit to food processing; textiles; gems and jewellery; paper and paper products; glass and glassware; infrastructure; leather and leather products; and wood and wood products registered an accelerated growth in April 2021 as compared to the corresponding month of the previous year, RBI data showed.

However, credit growth to mining and quarrying; beverages and tobacco; petroleum, coal products and nuclear fuels; rubber, plastic and their products; vehicles; vehicle parts and transport equipment; basic metal and metal products; cement and cement products; all engineering, chemicals and chemical products; and construction decelerated.

Growth in loans to the services sector decelerated to 1.2 per cent in April 2021 from 10.6 per cent in April 2020, mainly due to deceleration in credit growth to NBFCs and marginal contraction in credit to transport operators, the data showed.

However, credit to trade segment continued to perform well, registering accelerated growth of 10.5 per cent in April 2021 as compared to 8.7 per cent a year ago.

The data showed that the personal loans registered an accelerated growth of 12.6 per cent in April 2021 as compared to 12.3 per cent a year ago, primarily due to accelerated growth in vehicle loans, loans against gold jewellery and credit card outstanding.



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RBI extends banking license of Rupee Co-operative Bank till August 31, BFSI News, ET BFSI

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The Reserve Bank of India has extended the banking license of the Rupee Co-operative Bank till August 31. Till March-2021, the Bank has made total recovery of Rs.263.93 crores and aggregate operating profit of Rs.70.70 crores during the last five years, a release from the Bank said.

“The Bank has taken steps like attachment of properties of defaulter borrowers, public auctions of the same, filing criminal suits against defaulter borrowers/guarantors, etc. The Bank has also informed the names of its defaulter borrowers/guarantors to other banks for effective recovery,” said Sudhir Pandit, administrator, Rupee Bank.

Till March-2021, the Bank had paid Rs.366.54 Crores to 92602 needy depositors under the Hardship Scheme. “The proposal for merger with The Maharashtra State Co-op. Bank Ltd., (MSC Bank) is pending with RBI. In the meantime, the Bank is exploring the possibility of various options such as merger with any other strong bank including co-operative banks, conversion into a Small Finance Bank with the help of a strategic investor and Reconstruction or Revival of the Bank. The Bank has requested the RBI to extend its co-operation and guide to explore these options which also require a significant amount of cooperation from high value depositors,” said Pandit.

“The Bank has five lakh depositors with aggregate deposits of Rs.1297 crores out of which around 99% depositors i.e.4,84,336 have deposits less than insurance cover limit of Rs 5 lakh. Their total deposits are to the tune of Rs.714 crores. While hardly 1% i.e. 4562 depositors have total deposits of Rs.583 crores which are above the deposit insurance cover. Therefore, RBI thinks it logical to liquidate the bank and fully refund deposits under insurance cover. Moreover RBI/DIC may get hold of banks liquidity of Rs.870 crores consisting of Government securities and banks’ own premises. Hence in the process, it has to lose very negligible funds of its own. If the bank is liquidated, high value depositors having deposits of more than Rs 5 lakh may lose around 65% of their total deposits irrespective of the option to save the bank ,” a release from the Bank said.



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