Central Bank News

The Reserve Bank of India warns the public about fraudsters falsely using its name through fake letterheads, emails, and calls. These criminals impersonate RBI employees to steal personal and banking details. RBI also identifies unauthorized digital lending apps and financial service providers pretending to be registered with the regulator.

The People's Bank of China clarified that it does not intend to ban legitimate investments or trading in government bonds but issued warnings to smaller financial institutions over the risks of rapidly increasing their holdings of long-dated securities.

Gold prices rose by 10% domestically and 18% globally, driven by strong central bank purchases and expectations of a US Fed policy change. India's demand surged after a reduction in import duties, reflected in higher order bookings and gold ETF inflows. The Reserve Bank of India's gold reserves also reached a record high.

SS Mundra, former deputy governor of the RBI, doubted the central bank digital currency's effectiveness. He highlighted UPI's widespread usage and questioned the necessity of CBDC. Mundra also discussed the challenges of internationalizing the rupee without full convertibility, a step policymakers are wary of taking. He urged banks to collaborate with fintech firms to enhance their digital capabilities.

Economists predict that Fed Chair Powell will hint at interest rate cuts starting in September, but won't be too specific due to an upcoming jobs report. The recent rise in unemployment has made officials cautious, as they want to assess if the job market is truly weakening before committing to any action.

Lenders to the bankrupt airline Go First have enlisted Burford Capital, a US-based litigation finance firm, to support their arbitration case against engine manufacturer Pratt & Whitney. The creditors committee has approved a first tranche payment of $20 million from Burford. Go First is claiming $1.5 billion in compensation at the Singapore Court of Arbitration, attributing its bankruptcy to Pratt & Whitney’s engine failures. Although litigation finance is common in parts of the world, it remains relatively unknown in India. Go First owes around ₹4,000 crore to major banks, while also holding a valuable land parcel as collateral.

In the residential and plot development segment, M3M reported sales of Rs 2028 crore in Gurugram, Panipat and Noida region during the first quarter of FY 2023-24. Its sales during the first quarter of FY 2024-25 increased by 46% increase to Rs 2971 crore. M3M generated Rs 826 crore from its commercial segment during Q1FY 2023-24, which increased to Rs 940 crore this year.

Intimation under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Co-Lending Partnership for MSME LAP and Home Loans with M/s Piramal Capital & Housing Finance Limited.

The Federal Reserve signaled a potential interest rate cut in September following a significant majority of officials supporting such a move at the July meeting. With increasing unemployment and easing inflation, financial markets anticipate a series of rate cuts. The decision may be finalized depending on incoming economic data and job market performance.

Asian stocks saw a rise as markets anticipated key announcements from the Federal Reserve and Bank of Japan. The MSCI Asia Pacific Index increased by 0.2%, with gains observed in Japan, Australia, and South Korea. Fed minutes suggested a potential rate cut, and China launched an anti-subsidy probe into EU dairy imports, escalating trade tensions.

Overleveraging in microfinance has resurfaced despite RBI's regulations from two years ago. Issues include unreliable household income measurement and over-reporting by field officers. Industry bodies are pushing for stricter loan exposure limits. Increased delinquency rates have led lenders to take tighter measures for new-to-credit customers, aiming to mitigate emerging credit risks.

Intimation under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Future Enterprises, undergoing insolvency proceedings, saw Central Bank of India emerge as the frontrunner to acquire its 25% and 33% stakes in two insurance ventures with Generali. The committee of creditors approved the bank's bid to enhance its insurance sector presence while Future Enterprises sought to settle its debt issues.

Future Enterprises, undergoing insolvency proceedings, saw Central Bank of India emerge as the frontrunner to acquire its 25% and 33% stakes in two insurance ventures with Generali. The committee of creditors approved the bank's bid to enhance its insurance sector presence while Future Enterprises sought to settle its debt issues.

Spot bullion climbed as much as 2.2% Friday, exceeding the previous record set last month, as a disappointing reading on the US housing market reinforced expectations of fast and deeper cuts by the Fed. Lower rates generally are positive for gold as it pays no interest.

Swap traders forecast a 50 basis-point cut in Indian borrowing costs beginning February 2025, due to a global shift towards softer monetary policies. The one-year Overnight Indexed Swap (OIS) rate has fallen, suggesting a policy easing cycle. Expected rate cuts by the US Federal Reserve are influencing this prediction.

The Australian stock market extended its gains for the fourth straight session on Wednesday, buoyed by lower-than-expected U.S. producer prices, which increased hopes of a Federal Reserve interest rate cut in September. Significant movements included strong corporate earnings from CBA and AGL Energy, alongside gains in gold and real estate stocks.

The interplay between a Central Bank’s actions and the stock market’s response is complex and dynamic; even a minor policy adjustment can set off a chain reaction across various sectors, leading to substantial market movements and volatility.

Revision in Credit Ratings

Post-2008, global central banks shifted towards closer government collaboration to stabilize markets. Despite increased liquidity, inflation remained low until 2020. However, post-COVID fiscal measures spurred inflation, raising concerns about investments in equities amid high valuations.

The Reserve Bank maintained the benchmark rate, addressing concerns like liquidity issues, excessive leverage, and IT outages to ensure financial stability. Regulatory changes include a public repository for digital lending apps and increased reporting frequency of credit information. Key banking figures welcomed these changes and emphasized the need for prudent lending practices.

Indian payment firms GooglePay, PhonePe, AmazonPay, and Indian fintech firm Cred are among five companies reportedly seeking to join the Reserve Bank of India's digital currency pilot. The e-rupee, a digital alternative to physical currency, was initially allowed only by banks but has since declined to around 100,000-200,000 a day.

Creditors decided to liquidate Go First Airlines after a year-long search for a buyer failed. The liquidation plea was filed with the Delhi NCLT. Offers from potential buyers did not meet expectations. Creditors are looking to recover funds through ongoing arbitration against Pratt & Whitney and an auction of a land parcel in Thane. The airline owes about ₹6,200 crore. Lenders, led by the Central Bank of India, are pursuing over $1 billion in claims against Pratt & Whitney for supplying faulty engines that contributed to the airline's bankruptcy.

Banks had received a total of 10 financial bids for the thermal power company by Thursday evening. Other bidders include Capri Global Holdings, Coal India, NTPC, Vedanta, JSW Energy, Naveen Jindal-owned Jindal Steel & Power, iLab India Special Fund, Rashmi Metaliks and Sherisha Technologies, said the people cited above.

All provisions as per Income Recognition, Asset Classification, and Provisioning (IRACP) norms, regardless of whether they are accounted for under “BDDR” or another head, must be charged as an expense to the P&L Account in the accounting period in which they are recognised. These provisions will continue to be eligible for regulatory capital purposes as defined in existing capital adequacy guidelines.

The Federal Reserve reported notable advancements in reducing inflation, nearing its 2% target, hinting at a potential rate cut in September. Job growth has slowed and unemployment rates have increased. Despite this, the Fed maintained its key rate at 5.3%, facing pressure from some Democrats for rate reductions.

The government's National Credit Guarantee Trustee Co Ltd has released ₹301 crore to Bank of Baroda (BoB) as part of its claim from loans given to the defunct Go First Airlines under the Emergency Credit Line Guarantee Scheme (ECLGS). This marks the first recovery for any lender from the bankrupt airline, with other lenders now looking to follow suit to recover their dues.

Bank of Baroda (BoB) on Wednesday reported a 10 per cent increase in standalone net profit to Rs 4,458 crore in the June 2024 quarter, helped by a decline in bad loans. The state-owned bank had posted a net profit of Rs 4,070 crore in the year-ago period.

Intimation under Regulation 30 & 51 of the SEBI (LODR) Regulations, 2015- Change in Senior Management of the Bank

Intimation under SEBI (LODR) Regulations, 2015 - Co-Lending Partnership for MSME Loans with M/s. Shriram Finance Limited

Japanese stocks declined by over 1% and bond yields rose in anticipation of the Bank of Japan's interest rate decision. Meanwhile, tech stocks experienced a downturn, and Nvidia's market value plummeted. Oil prices increased following a report on US crude stockpile drawdowns. Market watchers also looked ahead to potential Fed rate cuts predicted by Goldman Sachs for later this year.

Indian markets began strong but ended flat after profit booking. This week, central bank meetings from the US, UK, and Japan will be in focus, especially for interest-sensitive sectors like banking. Volatility is expected. Oil prices declined amid concerns about Chinese demand. Investors closely monitor these developments.

Asian markets started lower as investors reduced their positions ahead of significant upcoming events like central bank decisions and major economic data. Equities in Japan and Australia dropped, with futures in Hong Kong indicating a similar trend. Treasuries had gains, while US stock futures saw a slight decline.

Central banks from the U.S., Japan, and Britain reassessed lending rates, while the U.S. tech earnings' impact and Venezuela's presidential elections took center stage. The Fed's rate cut expectations and Big Tech's performance were key focuses. Venezuela voted amid economic shifts and potential U.S. sanctions. Stay informed on this pivotal financial and political landscape.

Intimation under SEBI (LODR) Regulations, 2015 - Co-Lending Partnership for MSME Loans with M/s. Tyger Capital Private Limited (Formerly Adani Capital Private Limited).

Intimation under SEBI (LODR) Regulations, 2015 - Co-Lending Partnership for Home Loans with M/s Tyger Home Finance Private Limited (Formerly Adani Housing Finance Private Limited).

Transcript of Bank''s Conference/Earnings call with the Analysts/ Investors.

Several Indian banks, including IndusInd Bank, are planning to raise significant funds through equity and debt routes to strengthen their balance sheets and support expansion. This move is seen as necessary to meet regulatory requirements and drive credit growth in the banking sector.

Clarification on Financial Results of Bank for the First Quarter and Three Months ended 30th June, 2024

Financial Results of Bank for First quarter and Three months ended 30th June, 2024