Banks show compassion to Chennai flood victims and other top Banking news of the day

Banks show compassion to Chennai flood victims and other top Banking news of the day

The first bond purchases by India’s central bank in almost two years will probably be followed by even larger buying as lenders run short of cash and foreign money leaves. The Reserve Bank of India (RBI) said last week it will buy as much as Rs.10,000 crore of sovereign debt on Monday. (MINT)

Help is pouring in from various sources for residents of flood hit Chennai. SBI, Axis Bank, ICICI Bank, HDFC Bank, Canara Bank etc have come forward to address EMI & card payment related difficulties and ATM issues. (ET)

In view of difficulties faced by people of flood-hit Chennai, many financial institutions, including DHFL, have decided not to impose any penalty on the city's customers for delay in EMI payments. (ET)

The current problem of mounting bad loans on the books of PSU banks first caught public attention in early 2012 when a spurt, especially in their restructured standard loans (uncollectible loans that have been given a fresh lease of life) happened. As of end-March 2012, ratio of gross NPA plus restructured standard loans (for this combination, a creative and somewhat obfuscating term — stressed assets — was coined later) rose to 8.8 per cent from 6.6 per cent a year earlier. (HINDU)

Since taking over as the group chief executive of Standard Chartered Plc in June, William Winters has spearheaded the overhaul of the operations of the London-based lender. (MINT)

Cabinet approval for the recast of power distribution companies, converting their loans into state government bonds, will pare Indian banks’ pile of stressed assets—now around 14% of their loan portfolio. Once bank loans to such companies to the tune of about Rs.4.3 trillion get converted into bonds, there will be relief and banks’ stressed assets will come down to around 10%. (MINT)

Global regulators have “considerable room” to raise the Basel III leverage ratio for banks as high as 5% from its current “test” level of 3%, according to research from the Bank for International Settlements (MINT)

Source:http://www.indiainfoline.com/article/news-top-story/banks-show-compassion-to-chennai-flood-victims-and-other-top-banking-news-of-the-day-115120700190_1.html