bfsi.economictimes.indiatimes.com
Open in
urlscan Pro
2a02:26f0:3500:598::3857
Public Scan
URL:
https://bfsi.economictimes.indiatimes.com/news/banking/five-banks-including-sbi-icici-in-talks-with-singapores-dbs-bank-to-begin-real-time...
Submission: On September 12 via api from IN — Scanned from DE
Submission: On September 12 via api from IN — Scanned from DE
Form analysis 4 forms found in the DOM
<form>
<ul class="tabs clearfix">
<li><a class="active" href="#" data-target="cookietabAnalytics">Analytics</a></li>
<li><a class="" href="#" data-target="cookietabNecessary">Necessary</a></li>
<li><a class="hideit" href="#" data-target="cookietabNewsletter">Newsletter</a></li>
</ul>
<div data-box="cookietabAnalytics" class="scroll-content ">
<table cellpadding="0" cellspacing="0">
<thead>
<tr>
<th></th>
<th>Name</th>
<th>Provider</th>
<th>Expiry</th>
<th>Type</th>
<th>Purpose</th>
</tr>
</thead>
<tbody>
<tr>
<td><input name="config.ga" id="id-config-ga" type="hidden" value="0"><input name="config.ga" type="checkbox" value="1"></td>
<td><label for="id-config-ga">Google Analytics</label></td>
<td><label for="id-config-ga">Google</label></td>
<td><label for="id-config-ga">1 Year</label></td>
<td><label for="id-config-ga">HTTPS</label></td>
<td><label for="id-config-ga">To track visitors to the site, their origin & behaviour.</label></td>
</tr>
<tr>
<td><input name="config.ibeat" id="id-config-ibeat" type="hidden" value="0"><input name="config.ibeat" type="checkbox" value="1"></td>
<td><label for="id-config-ibeat">iBeat Analytics</label></td>
<td><label for="id-config-ibeat">Ibeat</label></td>
<td><label for="id-config-ibeat">1 Year</label></td>
<td><label for="id-config-ibeat">HTTPS</label></td>
<td><label for="id-config-ibeat">To track article's statistics</label></td>
</tr>
<tr>
<td><input name="config.growthrx" id="id-config-growthrx" type="hidden" value="0"><input name="config.growthrx" type="checkbox" value="1"></td>
<td><label for="id-config-growthrx">GrowthRx Analytics</label></td>
<td><label for="id-config-growthrx">GrowthRx</label></td>
<td><label for="id-config-growthrx">1 Year</label></td>
<td><label for="id-config-growthrx">HTTPS</label></td>
<td><label for="id-config-growthrx">To track visitors to the site and their behaviour</label></td>
</tr>
</tbody>
</table>
</div>
<div data-box="cookietabNecessary" class="scroll-content hide">
<table cellpadding="0" cellspacing="0">
<thead>
<tr>
<th></th>
<th>Name</th>
<th>Provider</th>
<th>Expiry</th>
<th>Type</th>
<th>Purpose</th>
</tr>
</thead>
<tbody>
<tr>
<td><input name="config.optout" id="id-config-optout" type="hidden" value="1"><input name="config.optout" type="checkbox" value="1" checked="" disabled=""></td>
<td><label for="id-config-optout">optout</label></td>
<td><label for="id-config-optout">Times Internet</label></td>
<td><label for="id-config-optout">1 Year</label></td>
<td><label for="id-config-optout">HTTPS</label></td>
<td><label for="id-config-optout">Stores the user's cookie consent state for the current domain</label></td>
</tr>
<tr>
<td><input name="config.PHPSESSID" id="id-config-PHPSESSID" type="hidden" value="1"><input name="config.PHPSESSID" type="checkbox" value="1" checked="" disabled=""></td>
<td><label for="id-config-PHPSESSID">PHPSESSID</label></td>
<td><label for="id-config-PHPSESSID">Times Internet</label></td>
<td><label for="id-config-PHPSESSID">1 day</label></td>
<td><label for="id-config-PHPSESSID">HTTPS</label></td>
<td><label for="id-config-PHPSESSID">Stores user's preferences</label></td>
</tr>
<tr>
<td><input name="config.accessCode" id="id-config-accessCode" type="hidden" value="1"><input name="config.accessCode" type="checkbox" value="1" checked="" disabled=""></td>
<td><label for="id-config-accessCode">accessCode</label></td>
<td><label for="id-config-accessCode">Times Internet</label></td>
<td><label for="id-config-accessCode">2.5 Hours</label></td>
<td><label for="id-config-accessCode">HTTPS</label></td>
<td><label for="id-config-accessCode">To serve content relevant to a region</label></td>
</tr>
<tr>
<td><input name="config.pfuuid" id="id-config-pfuuid" type="hidden" value="1"><input name="config.pfuuid" type="checkbox" value="1" checked="" disabled=""></td>
<td><label for="id-config-pfuuid">pfuuid</label></td>
<td><label for="id-config-pfuuid">Times Internet</label></td>
<td><label for="id-config-pfuuid">1 Year</label></td>
<td><label for="id-config-pfuuid">HTTPS</label></td>
<td><label for="id-config-pfuuid">Uniquely identify each user</label></td>
</tr>
<tr>
<td><input name="config.OSTID " id="id-config-OSTID " type="hidden" value="1"><input name="config.OSTID " type="checkbox" value="1" checked="" disabled=""></td>
<td><label for="id-config-OSTID ">OSTID</label></td>
<td><label for="id-config-OSTID ">Times Internet</label></td>
<td><label for="id-config-OSTID ">1 Year</label></td>
<td><label for="id-config-OSTID ">HTTPS</label></td>
<td><label for="id-config-OSTID ">Oauth secure token</label></td>
</tr>
<tr>
<td><input name="config.OSSOID" id="id-config-OSSOID" type="hidden" value="1"><input name="config.OSSOID" type="checkbox" value="1" checked="" disabled=""></td>
<td><label for="id-config-OSSOID">OSSOID</label></td>
<td><label for="id-config-OSSOID">Times Internet</label></td>
<td><label for="id-config-OSSOID">1 Year</label></td>
<td><label for="id-config-OSSOID">HTTPS</label></td>
<td><label for="id-config-OSSOID">Oauth user identifier</label></td>
</tr>
<tr>
<td><input name="config.OSTPID" id="id-config-OSTPID" type="hidden" value="1"><input name="config.OSTPID" type="checkbox" value="1" checked="" disabled=""></td>
<td><label for="id-config-OSTPID">OSTPID </label></td>
<td><label for="id-config-OSTPID">Times Internet</label></td>
<td><label for="id-config-OSTPID">1 Year</label></td>
<td><label for="id-config-OSTPID">HTTPS</label></td>
<td><label for="id-config-OSTPID">used to sync accross portals</label></td>
</tr>
<tr>
<td><input name="config.fpid" id="id-config-fpid" type="hidden" value="1"><input name="config.fpid" type="checkbox" value="1" checked="" disabled=""></td>
<td><label for="id-config-fpid">fpid</label></td>
<td><label for="id-config-fpid">Times Internet</label></td>
<td><label for="id-config-fpid">1 Year</label></td>
<td><label for="id-config-fpid">HTTPS</label></td>
<td><label for="id-config-fpid">Browser Fingerprinting to uniquely identify client browsers</label></td>
</tr>
</tbody>
</table>
</div>
<div data-box="cookietabNewsletter" class="scroll-content hide">
<table cellpadding="0" cellspacing="0">
<thead>
<tr>
<th></th>
<th>Name</th>
<th></th>
<th></th>
<th></th>
<th>Purpose</th>
</tr>
</thead>
<tbody>
<tr>
<td><input name="config.newsletter" id="id-config-newsletter" type="hidden" value="0"><input name="config.newsletter" type="checkbox" value="1"></td>
<td><label for="id-config-newsletter">Daily Newsletter</label></td>
<td><label for="id-config-newsletter"></label></td>
<td><label for="id-config-newsletter"></label></td>
<td><label for="id-config-newsletter"></label></td>
<td><label for="id-config-newsletter">Receive daily list of important news</label></td>
</tr>
<tr>
<td><input name="config.promonewsletter" id="id-config-promonewsletter" type="hidden" value="0"><input name="config.promonewsletter" type="checkbox" value="1"></td>
<td><label for="id-config-promonewsletter">Promo Mailers</label></td>
<td><label for="id-config-promonewsletter"></label></td>
<td><label for="id-config-promonewsletter"></label></td>
<td><label for="id-config-promonewsletter"></label></td>
<td><label for="id-config-promonewsletter">Receive information about events, industry, etc.</label></td>
</tr>
</tbody>
</table>
</div>
<footer>
<label><input type="hidden" name="useragreement" value="0"><input type="checkbox" name="useragreement" value="1"> I've read & accepted the
<a style="color:red" href="https://bfsi.economictimes.indiatimes.com/terms_conditions.php" target="_blank">terms and conditions</a></label>
<input type="button" id="submitconsent" value="OK">
<span class="err_txt hide"></span>
</footer>
</form>GET https://bfsi.economictimes.indiatimes.com/search
<form method="get" id="search_form" action="https://bfsi.economictimes.indiatimes.com/search">
<input name="q" aria-label="Query" type="text" class="txt" autocomplete="off" placeholder="Search" value="">
</form><form action="" class="clearfix">
<div class="section clearfix">
<input id="subscribe_email_top" aria-label="Email" type="text" class="textbox" value="" placeholder="Your Email">
<input type="button" id="subscriber_btn_top" onclick="EtB2b.subscription.updateSubscription('top');" class="btn submit" value="Join Now">
</div>
<ul class="nwsltr_lst clearfix" style="display:none;">
</ul>
</form><form action="" class="clearfix">
<input id="subscribe_email_bottom" aria-label="Email" type="text" class="textbox" value="" placeholder="Your Email">
<input type="hidden" name="pip_category_id_bottom" id="pip_category_id_bottom" value="0">
<input type="hidden" name="pip_category_top" id="pip_category_bottom" value="">
<input type="hidden" name="newsletter_id_bottom" id="newsletter_id_bottom" value="">
<input type="button" id="subscriber_btn_bottom" class="btn submit" value="Join Now" onclick="EtB2b.subscription.updateSubscription('bottom');">
</form>Text Content
We have updated our terms and conditions and privacy policy
Click "Continue" to accept and continue with ET BFSI
ACCEPT THE UPDATED PRIVACY & COOKIE POLICY
Dear user,
ET BFSI privacy and cookie policy has been updated to align with the new data
regulations in European Union. Please review and accept these changes below to
continue using the website.
You can see our privacy policy & our cookie policy. We use cookies to ensure the
best experience for you on our website.
If you choose to ignore this message, we'll assume that you are happy to receive
all cookies on ET BFSI.
* Analytics
* Necessary
* Newsletter
NameProviderExpiryTypePurpose Google AnalyticsGoogle1 YearHTTPSTo track visitors
to the site, their origin & behaviour.iBeat AnalyticsIbeat1 YearHTTPSTo track
article's statisticsGrowthRx AnalyticsGrowthRx1 YearHTTPSTo track visitors to
the site and their behaviour
NameProviderExpiryTypePurpose optoutTimes Internet1 YearHTTPSStores the user's
cookie consent state for the current domainPHPSESSIDTimes Internet1
dayHTTPSStores user's preferencesaccessCodeTimes Internet2.5 HoursHTTPSTo serve
content relevant to a regionpfuuidTimes Internet1 YearHTTPSUniquely identify
each userOSTIDTimes Internet1 YearHTTPSOauth secure tokenOSSOIDTimes Internet1
YearHTTPSOauth user identifierOSTPID Times Internet1 YearHTTPSused to sync
accross portalsfpidTimes Internet1 YearHTTPSBrowser Fingerprinting to uniquely
identify client browsers
NamePurpose Daily NewsletterReceive daily list of important newsPromo
MailersReceive information about events, industry, etc.
I've read & accepted the terms and conditions
NEWS SITES
* Auto News
* Retail News
* Health News
* Telecom News
* Energy News
* CIO News
* Real Estate News
* Brand Equity
* CFO News
* IT Security News
* Government News
* Hospitality News
* HR News
* Legal News
* ET TravelWorld News
* Infra News
* B2B News
* CIOSEA News
* HRSEA News
* HRME News
Upcoming Event: CFO Meet & discussion on Revised Companies Act
Sign in/Sign up
* Follow us:
*
*
*
*
*
*
* ETBFSI Exclusive
* BANKING
* INSURANCE
* InsurTech
* NBFC
* FINTECH
* Payments
* Digital Lending
* RegTech
* Open API
* BFSI Videos
* Editor's View
* Brand Solutions
* ETBFSI CXO CONCLAVE
Connecting Financial Institutions Digitally
* LAY THE GROUNDWORK TO ACCELERATE BANKING INNOVATION
* ETBFSI FINNEXT SUMMIT
The Future of NBFCs and FinTechs
* SIDBI-ET MSMES/STARTUPS
Roudtable Discussion
* REIMAGINE NEXT
* LEARNFEST
* REIMAGINE NEXT - THE FUTURE OF LEARNING
* ETBFSI.COM CONVERGE
BFSI: The world of Hyper-personalization
* ETBFSI EXCELLENCE AWARDS 2021
AWARDS FOR EXCELLENCE IN INNOVATION
* FUTURE READY SECURITY FOR DIGITAL-FIRST BFSI
* 3RD EDITION OF ETBFSI CXO CONCLAVE
Unlocking the BFSI Potential
* THE DIGITAL NEXT: SERIES 2.1
Live Virtual Summit
* JOIN THE ECONOMIC TIMES FINANCIAL INCLUSION SUMMIT 2021
* 2ND EDITION OF ETBFSI VIRTUAL SUMMIT 2021
* ET BANKING LEADERSHIP SERIES PRESENTED BY MANIPAL ACADEMY
* Millennial Finance
* FinTech Diary
* BFSI Tech Tales
* Green Finance
* IBC
* ETBFSI Explains
* BFSI Movement
* More
* Blogs
* Innovation Masters
* POLICY
* FINANCIAL SERVICES
x
* BFSI News
* Latest BFSI News
* Banking
EXCLUSIVE
FIVE BANKS INCLUDING SBI, ICICI IN TALKS WITH SINGAPORE’S DBS BANK TO BEGIN
REAL-TIME REMITTANCE SYSTEM
This will become a common remittance platform in collaboration with Singapore’s
PayNow funds transfer service and make the process real time, instead of the
more than one day it takes now to complete international transfers.
* Saikat Das
* ET Bureau
* September 07, 2022, 07:29 IST
*
*
*
*
*
*
*
*
At least five local banks including State Bank of India and ICICI Bank are in
talks with Singapore’s DBS Bank to begin a real-time remittance system with the
city-state using the ubiquitous Unified Payments Interface (UPI) as the
backbone, said people familiar with the matter.
This will become a common remittance platform in collaboration with Singapore’s
PayNow funds transfer service and make the process real time, instead of the
more than one day it takes now to complete international transfers.
NPCI International Payments Ltd, a subsidiary of National Payment Corporation of
India that manages UPI, is closely working with the Monetary Authority of
Singapore on the pilot project, which is expected to be up on stream by
December.
Advertisement
Online Masterclass
MASTERING M&A AND DEAL MAKING
30 September 2022 @ 09:00 AM
Master in building effective M&A deal-making skills & technicalities involved in
successful deal negotiations
*
*
*
*
Register Now Certificates of participation will be awarded on successful
completion of the course
The move will enable individuals and businesses to reduce the cost of
transferring money between Singapore and India with seamless currency
convertibility, the people said.
Other Indian banks engaging with Singapore’s DBS include private lender Axis
Bank, and state-owned Indian Bank and Indian Overseas Bank.
“DBS Bank, Singapore, is the settlement bank (for the foreign outward remittance
leg),” a spokesperson for the bank said, confirming the talks.
NPCI and the Indian banks did not respond to ET’s queries.
If a customer holding a local bank account in Mumbai sends money in Indian rupee
to an account in a Singapore-based bank, the foreign bank pays the recipient in
Singapore dollars, converting it from Indian rupees. The process generally takes
more than a day.
The proposed platform will make it a real-time transfer, “subject to funding
availability and no screening hits”, according to DBS Bank.
In India, UPI is gaining ground. The platform processed transactions worth more
than Rs 10.73 lakh crore in August, up 68% from the year earlier, ET reported on
September 6.
The Reserve Bank of India is supervising the operational process between the
payment systems of the two countries. The project, which was supposed to be
commissioned by July, was delayed due to geopolitical developments.
“The UPI-PayNow linkage is a significant milestone in the development of
infrastructure for cross-border payments between India and Singapore, and
closely aligns with the G20’s financial inclusion priorities of driving faster,
cheaper and more transparent cross-border payments,” the RBI said on September
14 last year, when it had announced the plan.
The linkage builds upon the earlier efforts of NPCI International and Network
for Electronic Transfers to foster cross-border interoperability of payments
using cards and QR codes between India and Singapore, and will further anchor
trade, travel and remittance flows between the two countries.
This initiative is also in line with the RBI’s vision of reviewing corridors and
charges for inbound cross-border remittances outlined in the Payment Systems
Vision Document 2019-21.
UPI is India’s mobile based, fast-payment system that facilitates customers to
make round the clock payments instantly.
PayNow is the fast payment system of Singapore which enables peer-to-peer funds
transfer service, available to retail customers through participating banks and
non-bank financial institutions in Singapore.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
remittance
upi
state bank of india
sbi
indian overseas bank
indian bank
icici bank
icici bank
dbs bank
axis bank
Read on App
Read on App
PEOPLE WHO READ THIS ALSO READ
* Axis Bank partners with Paynearby to launch savings, current bank accounts
for rural Bharat
* Hard learned lesson: Not wearing rear-seat belt may affect claim payout
* Banks revise FD rates ahead of festive season, here’s the list
* RBI issues list of entities not authorised to deal in Forex, check here
SUBSCRIBE TO OUR NEWSLETTER
50000+ Industry Leaders read it everyday
I have read Privacy Policy and Terms & Conditions and agree to receive
newsletters and other communications on this email ID.
BANKING
* 3 hrs ago
AFTER MISSING THE UPI BUS, BANKS HOP ON TO ONDC EARLY ON
* 3 hrs ago
BANKS SEEK GOVT HELP TO CHECK CHIP SHORTAGE
* 3 hrs ago
SALE OF YES BANK’S BAD LOANS TO TAKE OFF SOON
* 3 hrs ago
NPA OVERDOSE: IS THE INDIAN BANKING SYSTEM ON A RECOVERY PATH?
View More
EDITOR'S PICK
* 2 hrs ago
TECH IS TRANSFORMING INSURANCE, 5G WILL TAKE IT FURTHER
* 3 hrs ago
AFTER MISSING THE UPI BUS, BANKS HOP ON TO ONDC EARLY ON
* 3 hrs ago
NPA OVERDOSE: IS THE INDIAN BANKING SYSTEM ON A RECOVERY PATH?
* 3 hrs ago
INSURERS BULLISH ON UBI IN INDIA, EXPECT LARGER ADOPTION OF 'PAY AS YOU
DRIVE'
* 1 day ago
MODERN CARD-ISSUING APIS TO PLAY A MAJOR ROLE IN BETTER CARD PENETRATION
BFSI VIDEOS
* FINTECH DIARY WITH DEEKSHA KAUSHAL, DIRECTOR, FINANCIAL SERVICES & BANKING
PARTNERSHIPS, GPAY INDIA
Catch the latest episode of ETBFSI Fintech Diary with Deeksha Kaushal,
Director, Financial Services & Banking Partnerships, Google Pay India.
* 47 days ago
FINTECH DIARY WITH SHACHINDRA NATH, VICE CHAIRMAN AND MANAGING DIRECTOR, U
GRO CAPITAL
* 56 days ago
CREDIT GROWTH PICKING UP ACROSS ALL SECTORS; NO DAMPER IN CASE OF RATE HIKES:
SHANTI LAL JAIN
* 59 days ago
FINTECH DIARY WITH NITHIN KAMATH, FOUNDER AND CEO, ZERODHA
View More
EXCLUSIVE
AFTER MISSING THE UPI BUS, BANKS HOP ON TO ONDC EARLY ON
Nine banks including SBI, HDFC Bank, BoB, ICICI Bank, and Axis Bank have picked
up stakes in the network that aims to create an open, inclusive and competitive
e-commerce marketplace.
* ETBFSI Research
* ETBFSI
Click Here to Read This Story
*
*
*
*
*
*
*
*
Banks are bullish on the Open Network for Digital Commerce (ONDC) network, which
is touted by the government to replicate the success of the Unified Payments
Interface (UPI) in e-commerce.
Nine banks have picked up stakes in the Open Network for Digital Commerce (ONDC)
network.
State Bank of India (SBI), Bank of Baroda, Punjab National Bank, Kotak Mahindra
Bank, Axis Bank, HDFC Bank, IDFC First Bank, and ICICI Bank own 6.35 per cent
stake each in the network while Kolkata-based UCO Bank has picked up 3.17 per
cent. Small Industries Development Bank of India (Sidbi) and National Bank for
Agriculture and Rural Development (Nabard) have picked up 6.35 per cent stake
each.
The National Payments Corporation of India is also said to be looking to buy a
stake in ONDC.
What is ONDC and how will it work?
ONDC, or Open network for digital commerce, a UPI-type protocol, is a set of
standards for voluntary adoption by sellers or logistics providers or payment
gateways. It is a market and community-led network that aims to create an open,
inclusive and competitive marketplace. Still, at a nascent stage, it is being
pitched as a solution to break the dominance of large e-commerce firms like
Flipkart, Amazon, and others in India. The network aims to democratise
e-commerce by putting more kiranas and unorganised retailers online
Why are banks hopping on the ONDC bandwagon?
Apart from an opportunity to offer payment services, in which they have lagged
behind the new players and fintechs, banks see an opportunity in the large
credit, debit, and merchant settlement transactions the network is expected to
generate.
They will also get access to the huge transaction data which they can leverage
to offer credit to players in the network including suppliers, sellers,
logistics partners, and the entire supply chain.
The existing MSME customers of banks can also grow their business with help from
the banks, which in turn can offer more services to them.
Many banks which have been building goods and services tax invoice and cash
flow-based credit decisioning and lending models for the Open Credit Enablement
Network are looking to extend them to the ONDC network.
Recently, IDFC First Bank joined the ONDC network, enabling a buyer’s platform
to help it discover sellers on the ONDC network while YES Bank announced its
partnership with SellerApp recently to help embrace ONDC amongst the seller
segment of its customer base.
Banks are also looking to tap the younger population which would be on the
network
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
upi
ondc
kolkata
idfc first bank
digital commerce
yes bank
uco bank
state bank of india
small industries development bank of india
sbi
Read on App
Read on App
EXCLUSIVE
SMALL FINANCE BANKS WANT TO ENTER ON-LENDING TO MANAGE RISKS BETTER
These banks have written to the Reserve Bank of India to permit them to operate
with bigger banks and NBFCs, as they have the products and reach but are at a
disadvantage when it comes to resources, two people familiar with the matter
said.
* Saloni Shukla
* ET Bureau
Click Here to Read This Story
*
*
*
*
*
*
*
*
Small finance banks (SFBs) are seeking approval from the regulator to enter
on-lending, a growing practice where nonbank financial companies are gaining an
advantage over traditional lenders.
These banks have written to the Reserve Bank of India to permit them to operate
with bigger banks and NBFCs, as they have the products and reach but are at a
disadvantage when it comes to resources, two people familiar with the matter
said.
Allowing SFBs to carry out on-lending would help level the playing field, said
bankers.
In multiple individual representations to the central bank, SFBs have submitted
that co-lending would allow them to diversify risk, especially on microloans,
assist last-mile credit delivery and release liquidity for further credit
growth.
“Several requests have been made to the RBI to allow small finance banks to
participate in the co-lending business. We are hopeful that the regulator will
look at this request positively,” said the CEO of an SFB that has made such a
request to the banking regulator. “Allowing us to join this model will help us
shed credit risk and is an excellent opportunity to grow the book.”
The RBI did not respond till press time Sunday to a request for comment. In the
case of co-lending, while NBFCs keep 20% of the loans on their books, the
balance of 80% along with the credit risk on that portion goes to the balance
sheet of the bank providing the funds.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
sfbs
reserve bank of india
rbi
Small finance banks
on-lending
NBFCs
microloans
last-mile credit delivery
Read on App
Read on App
EXCLUSIVE
SALE OF YES BANK’S BAD LOANS TO TAKE OFF SOON
JCFlowers ARC won the non-performing loan portfolio in an uncontested Swiss
auction for Rs 11,183 crore, after Cerberus Capital and Asset Reconstruction
Company of India (Arcil) that had teamed up for a bid dropped out of the race,
as reported by ET on September 9.
* Sangita Mehta
* ET Bureau
Click Here to Read This Story
*
*
*
*
*
*
*
*
The credit committee of Yes Bank will meet on September 15 to formally approve
the sale of distressed loans totalling Rs 48,760 crore to JC Flowers Asset
Reconstruction Company (ARC), said two people aware of the development.
JC Flowers ARC won the non-performing loan portfolio in an uncontested Swiss
auction for Rs 11,183 crore, after Cerberus Capital and Asset Reconstruction
Company of India (Arcil) that had teamed up for a bid dropped out of the race,
as reported by ET on September 9.
JC Flowers ARC will have to make the payment within 60-days of Yes Bank formally
approving the offer. Its earnest money deposit of $50 million (about Rs 400
crore) could be forfeited if it failed to pay within this stipulated time, as
per the terms of the auction, said one of the two people.
The deal between the bank and the ARC is under a 15:85 structure, wherein 15% is
paid upfront in cash and 85% in security receipts. Effectively, JC Flowers ARC
has to mobilise Rs 1,677 crore for cash payment within 60 days
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
yes bank
jc flowers arc
jc flowers asset reconstruction company
Yes Bank bad loans
Yes Bank bad loan sale
yes bank
Arcil
Read on App
Read on App
EXCLUSIVE
BANKS SEEK GOVT HELP TO CHECK CHIP SHORTAGE
Banks collectively through the Indian Banks' Association (IBA) reached out to
the government over the issue last month, people familiar with the development
said.
* Dheeraj Tiwari
* ET Bureau
Click Here to Read This Story
*
*
*
*
*
*
*
*
Banks have sought the government's intervention to address the shortage of
semiconductor chips that has hit card issuance.
They have also suggested an investigation by the Competition Commission of India
(CCI) into the practices of chip suppliers.
Banks collectively through the Indian Banks' Association (IBA) reached out to
the government over the issue last month, people familiar with the development
said.
The banking industry has been reeling under chip supply shortage for some time
in the wake of Covid-19 shutdowns in China, slowing card issuance.
Banks are finding it difficult to provide cards to the new Pradhan Mantri Jan
Dhan Yojana (PMJDY) account holders, which is delaying the insurance coverage of
beneficiaries, a bank executive said.
Supply shortages have pushed up prices of chips globally, triggering price
increases by local vendors.
A government official said that due to ongoing global uncertainties, the card
shortage is expected to remain for some time.
"We are aware of the challenges being faced by the industry and some long-term
solutions, including promoting local manufacturing, will be looked at," he
added.
Bank executives say local vendors had raised prices despite existing supply
contracts and were colluding with each other to keep prices inflated.
"Local vendors are pushing to increase the prices despite existing supply
contracts," the official said justifying the demand for a CCI review into
possible cartelisation.
About 319.7 million RuPay cards have been issued till August 24 this year. In
the first four months of this fiscal around 3.5 million cards were issued.
Beneficiaries under PMJDY accounts have increased from 430.4 million to 463
million in the last year.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
competition commission of india
indian banks association
govt help
covid 19
chip supply
chip shortage
china
banks
Read on App
Read on App
EXCLUSIVE
TAMILNAD MERCANTILE BANK IPO: HERE'S HOW TO CHECK ALLOTMENT STATUS AND GMP
The company's Rs 832 crore primary offering was sold in the range of Rs 500-525
per equity share. The issue had received a muted response from all the
categories of investors, subscribing 2.86 times between September 5-7.
* Pawan Nahar
* ETMarkets.com
Click Here to Read This Story
*
*
*
*
*
*
*
*
NEW DELHI: Tamilnad Mercantile Bank (TMB), whose initial public offering (IPO)
received a mixed response during the three-day bidding process, is likely to
announce its allotment status on Monday, September 12.
Tamilnad Mercantile Bank is among the oldest private lenders of the country and
offers a range of banking and financial services primarily to micro, small and
medium enterprises, agricultural and retail customers.
The lender has a customer base of 50.8 million, of which 41.8 lakh or about 85
per cent, comes from Tamil Nadu itself. However, it has a presence in Gujarat,
Maharashtra, Karnataka, Andhra Pradesh and Delhi.
The lender had 509 branches, 106 of which are located in the rural areas,
whereas 247 in semi-urban locations, 80 in urban and 76 in metropolitan centres
as of March 31, 2022.
Last heard, the shares of Tamilnad Mercantile Bank were commanding a premium of
Rs 25-30 in the grey market. The premium in the unofficial market has been
moving higher than the announcement of the issue.
The company's Rs 832 crore primary offering was sold in the range of Rs 500-525
per equity share. The issue had received a muted response from all the
categories of investors, subscribing 2.86 times between September 5-7.
The quota reserved for qualified institutional buyers (QIBs) was subscribed only
1.62 times, while the one reserved for non-institutional investors (NIIs) and
retailers was subscribed 2.94 times and 6.48 times, respectively.
Most analysts said the asking valuations were attractive when compared with
peers, but the bank’s future growth would be subject to pending legal actions.
Some of them had a subscribe rating on the issue with a long-term view.
Investors, who had bid for the issue, can check the allotment status on the
Bombay Stock Exchange (BSE) website:
1) Visit https://www.bseindia.com/investors/appli_check.aspx
2) Under the issue type, click Equity
3) Under the issue name, select Tamilnad Mercantile Bank Ltd in the dropbox
4) Write the application number
5) Add the PAN card ID
6) Click on 'I am not a Robot' and hit submit.
You can also check the allotment status on the online portal of Link Intime
India
Private Limited (https://linkintime.co.in/MIPO/Ipoallotment.html), the registrar
to the issue.
The registrar is a Sebi-registered entity, qualified to act as such and which
electronically processes all applications, and carries out the allotment process
as per the prospectus.
The registrar is responsible for complying with the timelines for updating the
electronic credit of shares to successful applicants, dispatch, and uploading of
refunds, and attending to all investor-related queries after the issue is
completed.
1) Go to the web portal of Link Intime India Private Limited
2) Select the IPO in dropbox whose name will be populated only if the allotment
is finalized
3) You may be required to select either one of the three modes: Application
number, Client ID or PAN ID
4) In application type, select between ASBA and non-ASBA
5) Enter the details of the mode you selected in Step 2
6) For security purposes, fill the captcha accurately
7) Hit submit.
Bidders who could not get allotment in the IPO may see the initialization of
refunds on September 13. Others, who would be allotted shares may see the credit
of shares in the demat account by September 14. The listing of the IPO is likely
on September 15.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
ipo
tamilnad mercantile bank
tamilnad mercantile bank ltd
tamil nadu
karnataka
bse
andhra pradesh
TMB
initial public offering
Bank IPO
Read on App
Read on App
EXCLUSIVE
ED CONDUCTS SEARCHES IN A BANK LOAN FRAUD CASE
The Enforcement Directorate (ED) on Friday said it had conducted search
operations on Thursday in connection with a bank loan fraud case.
* IANS
Click Here to Read This Story
*
*
*
*
*
*
*
*
New Delhi, The Enforcement Directorate (ED) on Friday said it had conducted
search operations on Thursday in connection with a bank loan fraud case.
The searches were conducted at the business and residential premises of the
accused persons and their associates including Tara Corporation Limited (renamed
as Malaudh Agro Limited), its directors Jaswant Singh, Balwant Singh, Kulwant
Singh, Tejinder Singh, their associates and other sister concerns.
The raids were conducted at Ludhiana, Malerkotla, Khanna, Payal and Dhuri.
During the course of search, various incriminating evidence were recovered and
seized. They were related to bogus firms through which turnover of Tara
Corporation Limited (TCL) was inflated and loan funds were siphoned off by the
accused.
Mobile phones, hard drives and Indian currency worth Rs 32 lakh were also seized
from the search premises.
The ED had initiated money laundering investigation on the basis of the FIR
registered by the CBI.
Bank of India, Model Town Branch, Ludhiana had sanctioned loan on cash credit
limits aggregating Rs 35 crore as against hypothecation of stocks and book-debts
in 2011 under sole banking arrangement. The account was also sanctioned an
ad-hoc limit of Rs 6 crore in February 2014, which is yet to be repaid by the
company.
The account of TCL was declared as NPA in 2014. The aggregate loan outstanding
is Rs 76 crore.
Jaswant Singh, Balwant Singh, Kulwant Singh and Tejinder Singh were directors
and guarantors in the loan account of Tara Corporation Limited.
When a fresh search was initiated by the bank in May 2016, it was observed that
there was a drastic change in the directors of the company and Kirpal Singh
Tiwana, Harish Kumar and Lakhbir Singh had been appointed as directors of TCL
and a 'principal person' Balwant Singh had resigned from the directorship.
Later on, Balwant Singh had also been re-appointed as director of the company in
2016.
"On the basis of information available, investigation was initiated against the
above said persons and their associates in order to ascertain the money
laundering activities undertaken by them for laundering their proceeds of
crime," the official said.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
jaswant singh
tara corporation
loan fraud
enforcement directorate
ed
cbi
bank of india
bank loan
bank
Read on App
Read on App
EXCLUSIVE
BANK OF BARODA INVITES APPLICATIONS FOR 8 POSITIONS IN 'DIGITAL GROUP'
Under the hiring programme for eight positions, Bank of Baroda has one post each
for the head of Merchant Acquisition Business and the head of Artificial
Intelligence.
* PTI
Click Here to Read This Story
*
*
*
*
*
*
*
*
New Delhi, Bank of Baroda has invited applications from eligible candidates to
fill various positions in its Digital Group. The Reserve Bank in April 2022
advised banks to establish Digital Banking Units (DBUs). The regulator has
prescribed banks to report the digital banking segment as a sub-segment of
retail banking under their accounting practice.
Under the hiring programme for eight positions, Bank of Baroda has one post each
for the head of Merchant Acquisition Business and the head of Artificial
Intelligence.
Besides, it has one position each for Lead-Merchant Acquiring Online,
Lead-Merchant Acquiring Offline; Digital Partnership Lead-Corporates; Digital
Partnership Lead-Fintechs; Lead Robotic Process Automation and Lead-Digital
Payment Fraud Prevention.
The Mumbai-based lender is widening its end-to-end digital journeys to
pre-approved two-wheeler loans, auto loans, education loans, home loans for
pre-approved projects and home loan top-up loans.
For MSME borrowers, it has digitized the renewal process of small ticket MSME
loans. The Mudra loans up to Rs 10 lakh are processed digitally. In the agri
segment, it offers gold loans to farmers digitally.
The lender is also working on an end-to-end digital journey for Kisan Credit
Card in selected states having progressive digitization of agriculture land
records.
This involves integration with Agritechs for fetching land records and doing the
risk analysis of the farm data.
The positions for which the bank has invited applications are contractual in
nature and these will be for a period of five years with annual performance
review, according to a notice.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
bank of baroda
digital group
reserve bank
mudra
merchant acquisition business
kisan credit card
digital banking units
artificial intelligence
Job applications
BFSI jobs
Read on App
Read on App
EXCLUSIVE
BANK OF INDIA NET PROFIT DOWN AT RS 2,221CR FOR FY22 ON DIVERGENCE IN
PROVISIONING
According to a regulatory filing, there was divergence of Rs 105 crore in bank's
gross non-performing assets (NPAs) with the bank reporting it to be at Rs
45,605.40 crore. However, as per Reserve Bank of India (RBI) assessment, it came
at a higher value of Rs 45,710.40 crore.
* PTI
Click Here to Read This Story
*
*
*
*
*
*
*
*
New Delhi, State-owned Bank of India (BoI) on Friday reported divergence in its
asset classification for FY22, resulting in lowering of net profit for the year
to Rs 2,221 crore. The lender had reported a net profit of Rs 3,404.70 crore for
2021-22.
According to a regulatory filing, there was divergence of Rs 105 crore in bank's
gross non-performing assets (NPAs) with the bank reporting it to be at Rs
45,605.40 crore. However, as per Reserve Bank of India (RBI) assessment, it came
at a higher value of Rs 45,710.40 crore.
On the flip side, in case of the net NPAs the bad loans fell by Rs 87 crore as
the RBI assessed it at a lower Rs 9,764.93 crore as against Rs 9,851.93 crore
reported by the bank.
The divergence in provisioning came in at Rs 1,819 crore.
Bank of India said the adjusted net profit of the bank before considering the
impact of tax on divergence in provisioning for FY22 was at Rs 1,585.70 crore.
However, the net profit was further boosted to Rs 2,221.33 crore for the year
ended March 2022 upon adding Rs 635.63 crore as an impact of tax on divergence
in provisioning, showed the data.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
bank of india
rbi
Provisioning
Profit
NPA
Net profit
Lender
Bank profit
Bad loans
Read on App
Read on App
EXCLUSIVE
YES BANK TO APPROVE JC FLOWERS AS BUYER FOR ITS $6 BILLION STRESSED LOAN
PORTFOLIO
Private lender Yes Bank is likely to approve the transfer of stressed assets
worth Rs 48,000 crore ($6 billion) to private equity firm J C Flowers at its
next board meeting, said a source with direct knowledge.
* Reuters
Click Here to Read This Story
*
*
*
*
*
*
*
*
MUMBAI: Private lender Yes Bank is likely to approve the transfer of stressed
assets worth Rs 48,000 crore ($6 billion) to private equity firm J C Flowers at
its next board meeting, said a source with direct knowledge.
A rival consortium led by private equity firm Cerberus and Asset Reconstruction
Company of India withdrew its bid after submitting an expression of interest
earlier this year, two sources said.
"We evaluated the loan accounts carefully and realised that there were so many
fraud-hit and other problematic accounts that recovery would have been a
challenge," said the second source.
J C Flowers had submitted an initial bid of Rs 11,183 crore for the entire
stressed loan portfolio of Rs 48,000 crore. The Cerberus-ARCIL consortium was
supposed to submit a competing bid by September 7 but they withdrew, the sources
said.
"Once the board approves the J.C. Flowers bid, it will take about a month for
the paperwork to be completed and the assets to be transferred," the first
source said.
Yes Bank, J C Flowers, Cerberus and ARCIL did not immediately respond to an
email request seeking comment.
Lender Yes Bank believes that its gross bad loans can come down to 2% from 13.4%
in June quarter after transferring the bad loans to the new asset reconstruction
company, it said earlier.
The bank had already provisioned for over 80% of the total loan value which will
now be transferred to J.C. Flowers.
The transfer of stressed loans away from its book is a crucial step for Yes Bank
and comes more than two years after the central bank had to step in to take
control of the bank after a dramatic rise in toxic assets alarmed investors and
depositors, posing a systemic risk to banking sector.
The lender raised capital worth $1.1 billion by selling up to a 10% stake to
Carlyle Group and Advent International in August. The confidence capital has
also helped its stock rise up by nearly 40% since June 30.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
yes bank stressed loans
yes bank stressed loan portfolio
yes bank loans
yes bank jc flower
yes bank
Read on App
Read on App
EXCLUSIVE
COST-CUTTING PLANS BY LARGE US BANKS MAY HIT INDIAN IT
Banking, financial services and insurance (BFSI) clients account for nearly 30%
of Indian IT's $227 billion overall revenue (in FY22), forming its largest
vertical. Indian software services exporters that have exposure to mortgage
lending may also witness an immediate impact, analysts added.
* Sai Ishwarbharath
* ETtech
Click Here to Read This Story
*
*
*
*
*
*
*
*
Indications of spending cuts and increased credit loss provisioning by large
US-based lenders and financial institutions may have a spill over effect on
Indian IT companies that are already wary of a possible US recession, analysts
said.
Banking, financial services and insurance (BFSI) clients account for nearly 30%
of Indian IT's $227 billion overall revenue (in FY22), forming its largest
vertical. Indian software services exporters that have exposure to mortgage
lending may also witness an immediate impact, analysts added.
“The large US banks – with nearly 40% of (total) IT spend share – opined the
current macro as complex, tough and raised ‘credit loss’ provision, reversing
prior quarters’ trend,” brokerage house Elara Capital said in a research report.
“Despite retaining calendar year 2022 expense outlook, in a proactive act, banks
such as Wells Fargo, Goldman Sachs and Morgan Stanley intend a ‘spend cut’ to
fend profit/brew operating resilience,” it added.
The report also highlighted the recent management commentary of large US banks.
Bank of America has emphasized on self-funded tech initiatives, while Citibank
sought to depend on efficiency from tech investments to deliver a strategic
agenda.
Focus on cost optimisation
Similarly, Wells Fargo's calendar year 2023 budget may focus on operational
efficiency and cost cuts, while Goldman Sachs is seeking to improve operational
efficiency, including cuts in non-compensation expenses.
The focus on cost optimisation and altered priority with respect to tech
spending at these US banks are expected to hit India IT with a lag, marring the
2023-24 growth outlook, said analysts Ruchi Mukhija, Vaibhav Chechani and Seema
Nayak in the research note.
“There is already some weakening of spending and investment decisions being
delayed amid all the current economic uncertainty,” Phil Fersht, founder and
chief analyst at IT market research firm HFS, told ET. “This is having some
knock-on effect on the Indian IT services market and is likely to worsen until
early 2023.”
Indian IT companies provide digital transformation, core-banking products, and
customer experience services to banks, as well as mortgage software services
including loan origination.
Mortgage lending
Within the BFSI business, the mortgage lending sub-segment has strong negative
correlation with interest rate cycles and is, thus, the hardest hit sub-segment.
After the US Federal Reserve’s quantitative tightening this year, overall
mortgage volumes in the United States are down by 53.5% on year as of July.
This is expected to have an immediate corresponding impact on India IT companies
who cater to this specific segment versus a delayed impact from other
sub-segments, analysts said.
All Tier I tech players offer mortgage lending services through their products
or platforms.
Wipro and Infosys have a higher exposure to mortgage lending services in the
tier I companies list, as per Elara Capital’s sensitivity analysis and
assessment.
Mphasis in tier II has an outsized presence in this segment.
The companies did not respond to ET’s emails seeking comment.
“Like in 2008-09 (global financial crisis), the decreasing mortgage volumes have
an immediate impact for Indian service providers in the space. However, the
negative impact will be slower and less pronounced, but volumes will be down for
the medium term,” Fersht of HFS said.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
wipro
us-based lenders
us recession
spending cuts
mphasis
infosys
indian it companies
financial institutions
$227 billion revenue
Read on App
Read on App
* Industry News
* Auto News
* Retail News
* Health News
* Telecom News
* Energy News
* CIO News
* Real Estate News
* Brand Equity
* CFO News
* IT Security News
* Government News
* Hospitality News
* HR News
* Legal News
* ET TravelWorld News
* Infra News
* B2B News
* CIOSEA News
* HRSEA News
* HRME News
* CONTACT US
ADVERTISE WITH US
We have various options to advertise with us including Events, Advertorials,
Banners, Mailers, Webinars etc.
Please contact us to know more details.
* SIGN UP FOR
ETBFSI NEWSLETTER
Get ETBFSI's top stories every morning in your email inbox.
50000+ Industry Leaders read it everyday
I have read Privacy Policy and Terms & Conditions and agree to receive
newsletters and other communications on this email ID.
* FOLLOW US
@ETBFSI
Follow @ETBFSI for the latest news, insider access to events and more.
*
*
*
*
*
* About Us
* Contact Us
* Advertise with us
* Newsletter
* RSS Feeds
* Embed ETBFSI.com Widgets on your Website
* Privacy Policy
* Terms & Conditions
* Guest-Post Guidelines
* Sitemap
Copyright © 2022 ETBFSI.com. All Rights Reserved.