State Bank of India (SBI) has got an approval from the Executive Committee of Central Board (ECCB) of SBI to invest Rs 1760 crore in Yes Bank’s follow-on public officer (FPO)In a regulatory filing, SBI said, “Pursuant to the intimation given by yes Bank Ltd. to the stock exchanges on 07th July' 2020 on the issue of raising capital, the Executive committee of central board (ECCB) of State Bank of India at its meeting held today on July 8, 2020 has accorded approval for a maximum investment of upto Rs 1,760 crore in the Follow-on Public Offering (FPO) of Yes Bank Ltd.”Earlier under the reconstruction plan of Yes Bank by the regulator, State Bank of India had approved an investment ofRs 7,250 crore Yes Bank. On March 5, 2020, the Reserve Bank of India had imposed moratorium on Yes Bank and took control over the debt-burdened private lender as it failed to meet the regulatory requirement of capital adequacy norms.SBI along with other private lenders had invested in Yes … [Read more...] about SBI will invest Rs 1,760 crore in Yes Bank’s FPO
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Gold of 995 purity (24 carat), which hit a record high of Rs 50,392.75 per 10 gm on Wednesday including taxes, could rally another 10% in the next six-nine months, said Shekhar Bhandari, global transaction banking head, Kotak Mahindra Bank. "Rising US-China trade tensions, negative real rates by central bankers and fallout from Covid would drive gold prices which are already up 41% year on year," said Bhandari. He added that demand for jewellery had improved in states like Karnataka, Tamil Nadu ex-Chennai, Kerala, West Bengal and Punjab post the national lockdown relaxation from June. Even Titan said that demand revival for its jewellery division was better than envisaged in May and June in its latest quarterly update. Bhandari added that jewellery clients of his bank who had availed of metal loans were "sitting pretty" as they had priced the gold prior to the lockdown in March -April and had opted for the moratorium that's been extended for three months through August end. Since … [Read more...] about Gold could rally 10% from Wednesday record high of Rs 50,000 plus: Kotak Bank official
Last week, a Fitch report estimated that Indian banks need around $15 billion of capital to meet a 10% weighted-average common equity Tier 1 (CET1) ratio. And if this doesn’t happen soon, the gap could rise to about $58 billion in FY22 given the high-stress scenario posed by the pandemic and the subsequent nationwide lockdown. “We expect the bulk of the stress to come through in FY22 due to the 180-day regulatory moratorium on the recognition of impaired loans, which will delay the full recognition of stress in the current financial year. State banks are likely to account for the bulk of the capital shortfall, as large private banks should stay above the minimum requirements, despite some capital erosion in a high-stress scenario,” said Fitch Ratings. But does the government have enough reserves to sail the PSBs across the pandemic-sea successfully? NDA’s bank recapitalisation A recapitalisation plan worth Rs 2.11 lakh crore was announced in October 2017. Of the … [Read more...] about Will FM write another cheque for public sector lenders?
On March 13, the government had approved an SBI-backed rescue plan for Yes Bank. Under the plan, domestic investors, including SBI, Housing Development Finance Corp, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank, and IDFC First Bank had invested Rs 10,000 crore in the private lender. As part of the rescue process, YES Bank’s AT1 bonds worth Rs 8,415 crore were written down in March. … [Read more...] about SBI set to invest up to Rs 1,760 crore in YES FPO
Mumbai: The fourth tranche of sovereign gold bonds (SGBs) 2020-21 which opened for subscription on Monday will close on Friday (July 10), with the government fixing the issue price of the bonds at Rs 4,852 per gram during the subscription period. The government in consultation with the Reserve Bank of India (RBI) has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors, the issue price of Gold Bond will be Rs 4,802 per gram of gold. “A unique opportunity to invest in gold is presented by the Sovereign Gold Bond (SGBs), issued by the RBI on behalf of the GOI,” said Thomas, head of research - Emkay Wealth Management pointing that on the face value of the investment, the investor earns 2.50 per cent interest per annum during the term of the investment, i.e. eight years, and it also obviates the need to hold or invest in physical gold. The investment as well as … [Read more...] about Sovereign Gold Bonds’ issue open until Friday, have you invested?