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EXCLUSIVE


IDFC FIRST BANK'S TRANSFORMATION TO RETAIL COMPLETE; NPA WOES BEHIND, SAYS CEO V
VAIDYANATHAN

" I don't look a gift horse in the mouth. The merger(of Capital First and IDFC
Bank) brought with it a banking licence which is super precious," said V
Vaidyanathan.

 * Saloni Shukla
   &
 * MC Govardhana Rangan
 * ET Bureau
 * November 09, 2022, 07:53 IST

 * 
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 * 
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 * 
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IDFC First Bank would begin to grow its loans with a particular focus on retail
as it comes out of nearly four-year self-imposed restrictions on growth while
building the deposit franchise. The bank created out of the merger of an
infrastructure lender and a non-banking finance company began life with multiple
disadvantages - poor retail funding and rising bad loans from infrastructure
lending. But that is changing for the better, said V Vaidyanathan, chief
executive of the bank in an interview with Saloni Shukla and MC Govardhana
Rangan. Edited excerpts:

You took a gamble of merging an NBFC with a bank that was heavily into
infrastructure but without a deposit base. What has been the good, bad and ugly?
I don't look so much at the bad part of it, because having a banking licence is
a huge thing. Even in the hardest of cycles, having access to public deposits is
a very big factor. The start-up stage of any bank is very hard because they
don't have operating profit. Your expenses are almost equal to your income, you
have to build branches and ATMs. Both institutions were asset heavy and had no
liabilities, this was the hardest thing to deal with, especially in a situation
of low profitability. I don't look a gift horse in the mouth. The merger(of
Capital First and IDFC Bank) brought with it a banking licence which is super
precious.

Bad loans began to pile up - DHFL, Reliance Capital, toll roads, and Cafe Coffee
Day. Did you regret the deal?
It's just that the cycle turned for the worse after the merger. The IL&FS crisis
happened in November 2018, then many of these names you are talking about became
problems from that crisis. All these issues are in the past, and they are all
accounted for. We should not go back to the past. There were so many good things
that also came with the merger like a bank licence, a ready-made bank, a good
brand, branches, good people etc. So if you ask me, were you disappointed? I
still say no, it's the price of doing something.



How have you gone about fixing the problems that you inherited or that popped up
because of the events that unfolded?
In hindsight what we did right was that we did not grow the loan book for three
years and used all deposits raised to square off certificates of deposits of
₹28,000 crore and corporate deposits of ₹30,000 crore. That decision helped us
set a strong foundation, build CASA and helped us navigate the Covid crisis
without any liquidity issues. Now, the bank enjoys a really strong public image;
when collecting deposits this is very important. The products that we are
putting out in the market are truly customer-first. We are the first bank to
introduce monthly credit on savings accounts, and we have brought reductions to
a lot of fees in the marketplace. We did away with a lot of fees, about 20-25
services. We can't advertise these small points, it won't stick, but customers
who use us will realise the value this bank is giving.

Investors do look for fee income. How do you convince them?
Our fee income is coming from value-added services which customers are
specifically paying for. Our fee business is growing by 50% per year. So it's
not that we don't make fees; we are very particular where we charge fees. We are
telling employees - it's like saying money is moving from the customer's pocket
to our pockets in the form of bonuses, incentives, Esop or share price. So, all
money coming to the bank better be clean income, else what we get to our pockets
is not clean money.



One factor that worries analysts is why is the bank's cost-to-income ratio so
high.
It's the stage of the bank. Let us not forget that the cost to income of this
bank was 92% pre-merger, and we have brought it down to the mid-70s. From that,
we will bring it down to the mid-40s. And one of the reasons why it is still in
that area is because it's a new bank. We had to set up branches and ATMs, and
hire people, we built 50% CASA - obviously, there was infrastructure created for
that. The second reason is that the bank is honouring high-cost bonds of
infrastructure at 8.8%, we have another ₹22,000 crore of that. So basically
these are high-cost legacies sitting on us.

You have to repay these bonds for some more years. How does that play out on
your profitability?
Yes, significantly. Today we have ₹22,000 crore at 8.8% so you have to repay
them and replace it with 5.5%. So that is ₹700 crore straight to the bottom line
just by paying back. Also, we launched new businesses recently like credit
cards, which are negative earnings at this point in time, but when we touch 2
million cards, it will become very profitable. So, I believe the profit that we
posted this quarter is just the beginning. It won't stop here. Because every
single quarter after we have paid the old bonds will straight add to the profit
of the bank.

Where does the bank go from here in the next few years?
We are a universal bank with a predominant focus towards retail. We are building
enormous intellectual property in retail since we have old expertise in this
space, diversifying our exposure to millions of customers and helping us along
are the credit bureaus. But, though we don't expect corporate banking to grow as
fast as retail, it comes with trade and forex income. We will also focus on
wealth management, cash management, credit cards and other segments.

Everyone is going after retail. Isn't it becoming a crowded trade?
The thing about retail is the size of the opportunity. Today we have a $600
billion market of personal consumption, this market will come to $1.5 trillion
in 2030. The tools for evaluating credit were earlier only available for the
large and mid-corporates, so the people at the bottom of the pyramid have
remained credit-starved. Now, we have four credit bureaus with AI technology,
and phenomenal cash flow evaluation tools - hence the ability to service this
segment has opened up.

There's quite a bit of optimism about banking in general. What about IDFC First,
in terms of profits, bad loans and growth?
Our operating profit in FY22 is up 45% over FY21. In FY23 we have guided for
45-50% growth, which we are on track. We can grow profits by a similar amount in
FY24 again because it is all based on core income. We have already reached a 1%
return on assets within three and a half years. Our gross non-performing assets
are only 2% and net NPA is only 0.7%. Our SMA 1+2 is only 1%. Once the ₹750
crore toll road account is sorted, Net NPA at the overall bank level will come
down from 1% to 0.7%.



Follow and connect with us on Twitter, Facebook, Linkedin, Youtube
Banking
IDFC First Bank
Vaidyanathan
NPA
Savings account
Bank
non-banking finance company
NBFC
reliance capital
idfc first bank
idfc


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EXCLUSIVE


DICGC SETTLES CLAIMS WORTH RS 8,516.6 CRORE IN FY22

Deposit Insurance and Credit Guarantee Corporation settled claims amounting to
Rs 8,516.6 crore during 2021-22 of about 12.94 lakh depositors of liquidated
banks, merged entities and those placed under restrictions by the Reserve Bank.

 * PTI

Click Here to Read This Story
 * 
 * 
 * 
 * 
 * 
 * 
 * 
 * 

Deposit Insurance and Credit Guarantee Corporation settled claims amounting to
Rs 8,516.6 crore during 2021-22 of about 12.94 lakh depositors of liquidated
banks, merged entities and those placed under restrictions by the Reserve Bank.
All commercial banks, including branches of foreign banks functioning in India,
local area banks, regional rural banks, small finance banks and payment banks,
are covered under the Deposit Insurance Scheme.

Out of the Rs 8,516.6 crore claims settled by the DICGC, Rs 5,059.2 crore were
towards liquidated and merged banks and Rs 3,457.4 crore pertained to banks
under All Inclusive Directions (AID) of the RBI, said the annual report of
DICGC.

Under AID, restrictions are imposed on withdrawals of deposit.



The report said that during the fiscal ending March-2022, claims worth Rs
5,059.18 crore were paid to nearly 10.34 lakh depositors of liquidated and
merged banks.

A total of Rs 3,457.44 crore was paid to about 2.6 lakh depositors of banks
under AID, it added. All the claims were related to co-operative banks.

"There were no claims from commercial banks," the report said.

DICGC, a wholly-owned subsidiary of the RBI, provides insurance cover on bank
deposits.

In 2020, the government had increased the insurance cover on deposits by five
times to Rs 5 lakh. The enhanced deposit insurance cover of Rs 5 lakh came into
effect from February 4, 2020.

Later, DICGC Act was further amended under which the Corporation is required to
provide insurance cover of up to Rs 5 lakh to the depositors of banks placed
under AID by the Reserve Bank.

DICGC said the number of fully protected accounts (256.7 crore) at end-March
2022 constituted 97.9 per cent of the total number of accounts (262.2 crore) in
the banking system as against the international benchmark of 80 per cent.

The total premium received by the DICGC during 2021-22 stood at Rs 19,491 crore,
with commercial banks contributing 93.6 per cent and co-operative banks
accounting for the remaining 6.4 per cent.



The report said a landmark event during 2021-22 was the amendment to the DICGC
Act 1961 which enabled time-bound interim payment to depositors of banks placed
under AID by the RBI, a practice generally not observed in other jurisdictions.

"Pursuant to these amendments, the claims of depositors of 22 urban co-operative
banks placed under AID were settled by the DICGC...," the report said.

Another major event was the provision of financial assistance to the Unity Small
Finance Bank (USFB) for making deposit insurance payment to depositors of the
erstwhile Punjab and Maharashtra Co-operative Bank (PMCBL) upon merger.

The number of insured banks registered with DICGC stood at 2,040 as on March 31,
2022

Since the inception of deposit insurance, a cumulative amount of Rs 295.9 crore
was paid up to March 31, 2022 towards claims of 27 commercial banks, Rs 10,524.3
crore towards claims of 374 liquidated co-operative banks (including Rs 5,059.2
crore settled during 2021-22), and Rs 3,457.4 crore towards claims of 22 urban
co-operative banks placed under AID.

The Deposit Insurance Act, 1961 came into force on January 1, 1962.

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EXCLUSIVE


NEVER INVEST BECAUSE OF FOMO: FORMER SOFTBANK COO MARCELO CLAURE AFTER FTX
DEBACLE

Masayoshi Son’s telecoms and technology conglomerate SoftBank is expected to
have written down $100 million after FTX meltdown.

 * ETtech

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Marcelo Claure, SoftBank group’s former COO who left the technology investor
earlier this year, said the FTX fiasco had taught him not to invest due to the
fear of missing out. “ I have been reflecting personally on the whole FTX fiasco
and it taught me one more time that we should NEVER invest because of FOMO and
we should always 100% understand what we are investing in. I totally failed here
on both”, he said on microblogging site Twitter.



> I have been reflecting personally on the whole FTX fiasco and it taught me one
> more time that we should NEVER inves… https://t.co/Zbf8skT5p0
> 
> — Marcelo Claure (@marceloclaure) 1668293667000



The Bolivian tech entrepreneur who oversaw Sprint’s merger with T-Mobile before
officially joining Son’s SoftBank group in 2018. He spent his time at SoftBank
cleaning up messy investments such as wireless carrier Sprint and office-sharing
company WeWork, and had expected to be paid billions of dollars in compensation
over the years, while Son was looking to pay him a much smaller sum, Reuters
reported.



SoftBank had invested nearly $100 million in FTX from its Vision Fund 2. The
Japanese group is a part of a list of high-profile investors which had backed
FTX, including Sequoia Capital, Ontario Teachers’ Pension Plan, Dan Loeb’s Third
Point, Tiger Global and American footballer star Tom Brady.

SoftBank put nearly $100 million into the FTX, Chief Financial Officer
Yoshimitsu Goto said Friday. "It is only a small amount compared with our
overall portfolio,” Goto told reporters at the company’s quarterly earnings
presentation, The Wall Street Journal said in a report.

SoftBank said Friday the fund was down over 29%, having lost more than $14
billion on the $49.8 billion it invested in over 250 companies.

Reuters said in a report that in a letter posted on Twitter, Sequoia said that
its Global Growth Fund III invested $150 million in FTX.com and FTX US, which
accounted for less than 3% of the fund's committed capital, while the Sequoia
Capital Global Equities fund invested $63.5 million.

Crypto exchange FTX filed for US bankruptcy protection on Friday after losing
billions of dollars over the last one week, facing severe liquidity crunch and
having a bailout deal from Binance, fall through.



Its CEO Sam Bankman-Fried also resigned subsequently.


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EXCLUSIVE


PUNJAB & SIND BANK TO TAKE CALL ON RS 300 CRORE QIP IN FOURTH QUARTER: MD SAHA

During the previous two years (2020-21 and 2021-22), the government infused Rs
5,500 crore and Rs 4,600 crore through non-interest bearing recap bonds. With
the infusion of Rs 4,600 crore, the government holding in the bank increased to
98.25 per cent as on March 31, 2022.

 * PTI

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State-owned Punjab & Sind Bank would take a call on raising equity capital
through qualified institutional placement (QIP) after taking into account third
quarter numbers and pace of loan growth, the bank's managing director Swarup
Kumar Saha said.

As far as capital adequacy is concerned, the bank is well-capitalised at 15.68
per cent and it can easily take care of business growth this year, he told PTI
in an interaction.

However, he said, "There is a need to build some buffer on the equity side. So,
we would plan a small amount of capital mobilisation either through equity or
bonds, say Rs 250 crore or Rs 300 crore.



"We will watch our third quarter performance and momentum of credit demand and
based on that make a decision with regard to QIP or other means."

The bank has redeemed Additional Tier 1 (AT1) bonds, he said, adding, now the
bank would try other means including QIP, which is cost effective.

The government of India's holding in the bank stood at 98.25 per cent at the end
of September 2022. If the bank raises capital through share sale, the holding of
the government would decline depending on the quantum.

During the previous two years (2020-21 and 2021-22), the government infused Rs
5,500 crore and Rs 4,600 crore through non-interest bearing recap bonds.

With the infusion of Rs 4,600 crore, the government holding in the bank
increased to 98.25 per cent as on March 31, 2022.

On loan growth, Saha said, the bank aims at a 15 per cent rise during FY23 and
the current capital base can easily support this.

The Delhi-based lender had shifted its focus to the retail, agriculture and MSME
(RAM) segment to de-risk its balance sheet. Corporate segment lending grew by a
muted 2.5 per cent in Q2FY23, while retail lending improved by 16 per cent on an
annual basis.

Last week, the smallest public sector bank reported a 27 per cent jump in profit
to Rs 278 crore in the second quarter of FY23 on the back of reduction in bad
loans. The bank had reported a profit of Rs 218 crore in the year-ago period.



Total income of the bank during the July-September quarter of FY23 rose to Rs
2,120.17 crore against Rs 1,974.78 crore in the corresponding period of FY22.

The bank's gross non-performing assets (NPAs) declined to 9.67 per cent of the
gross advances at the end of September 2022 from 14.54 per cent during the same
period a year ago. Net NPAs also came down to 2.24 per cent from 3.81 per cent
in the second quarter of previous year.

As a result, the bank's provisions for bad loans and contingencies declined to
Rs 125 crore for the quarter, from Rs 203 crore a year ago.

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EXCLUSIVE


BANK OF MAHARASHTRA TOPS PSU LENDERS' LIST IN Q2 CREDIT GROWTH

The second quarter of 2022–23 saw the Bank of Maharashtra (BoM) outperform other
public sector lenders in terms of percentage loan growth. According to public
sector bank issued quarterly data, the lender with its headquarters in Pune saw
a 28.62 percent increase in gross advances at the end of September 2022,
totaling Rs 1,48,216 crore.

 * ET Online

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The second quarter of 2022–23 saw the Bank of Maharashtra (BoM) outperform other
public sector lenders in terms of percentage loan growth. According to public
sector bank issued quarterly data, the lender with its headquarters in Pune saw
a 28.62 percent increase in gross advances at the end of September 2022,
totaling Rs 1,48,216 crore.

Union Bank of India came in second with an increase of 21.54 percent to Rs
7,52,469 crore. The largest lender in the nation, State Bank of India, took
third place with an 18.15% increase in gross advances.

However, SBI's total loans were almost 17 times higher at Rs 25,47,390 crore as
compared to Rs 1,48,216 crore of BoM in absolute terms.



BoM had the highest increase of 22.31 percent in Retail-Agriculture-MSME (RAM)
loans during the reviewed period, followed by Bank of Baroda with 19.53 percent
and SBI with 16.51 percent.

BoM led the list for low-cost Current Account Savings Account (CASA) deposits
with 56.27 percent, followed by Central Bank of India at 50.99 percent.

BoM and SBI with 3.55 per cent Net Interest Margin (NIM), a key profitability
parameter, stood at the top among PSBs. Bank of India and Central Bank of India
came in second and third, respectively, with 3.49 and 3.44 percent.

According to a review of the quarterly financial data released by public sector
lenders, BoM and SBI were in the lowest percentile in terms of gross
non-performing assets (NPAs) and net NPAs.

The analysis showed that the gross NPAs reported by BoM and SBI were 3.40 per
cent and 3.52 per cent of their total advances, respectively, in the second
quarter. Net NPAs of these banks came down to 0.68 per cent and 0.80 per cent,
respectively, at the end of September 2022.

At the conclusion of the second quarter of 2022–23, BoM had the highest Capital
Adequacy Ratio among PSBs at 16.71 percent, followed by Canara Bank at 16.51
percent and Indian Bank at 16.15 percent.



Finance Minister Nirmala Sitharaman last week revealed that the government's
efforts to reduce bad loans have yielded results with all the 12 PSBs reporting
50 per cent jump in combined net profit at Rs 25,685 crore in the second
quarter.

The total net profit of all PSBs increased by 32% to Rs 40,991 crore in the
first half of FY23.

Inputs from PTI


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EXCLUSIVE


THE HARBINGER OF DIGITAL TRANSFORMATION IN THE LENDING MARKET

 * Mediawire

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Earlier in November, the Reserve Bank of India (RBI) released its data on
sector-wise bank credit growth, which showed that credit offtake continued to
remain robust across all sectors, including farming, industry, services, and
retail, despite the increase in lending rates. As India enters a golden age, new
players are rejigging the lending market by offering multi-channel ways to
engage customers. However, the real winner is the customer, who is better
informed, better connected, and expecting better services.

Amidst this, Lentra, #1 cloud lending platform, is enabling banks and NBFCs to
democratize credit and drive a customer-centric approach to digital lending
transformation. By providing quick and seamless digital lending journeys, better
decisions, and improved customer experience, Lentra is empowering banks with
significant cost savings in lending operations today.



Unlimited opportunities for digital lending in India

Credit is on the rise in India. By 2030, the Indian fintech market will be 60%
dominated by digital lending[1] with the proliferation of formal finance, rising
per capita income, and increased internet use.

Despite obstacles like multiple points of loan origination and business logic
that are embedded in legacy systems, lenders are transforming and aligning their
systems to the digital mechanism for offering loans ranging from low tickets to
high tickets depending on the customers' financial needs.

Lentra is leading the change

Founded in 2019 by D Venkatesh and Ankur Handa, Lentra today serves over 50
banks and has processed over 13 billion transactions on its platform.[2] The
platform comes pre-integrated with over 250 fintechs and 70 OEMs, and has
processed over 50 million applications worth over $21 billion in loans across
retail and business segments. As a cloud-based lending solution, Lentra
addresses four main issues that any lender typically struggles with:
democratising credit, providing channel-neutral credit access, making accurate
and timely credit decisions. With its mobile-first approach, single window
connecting all ecosystem partners, and ability to provide lenders with quick,
data-backed credit decisions and immediate gratification at the point of sale,
Lentra has already revolutionised retail lending.



Lentra assists banks in adhering to legislative requirements and removing credit
fraud risk from the lending cycle. The platform makes it simple to meet strict
regulatory requirements with little human intervention, and application
processing takes place through a smooth, paperless journey. It examines
information from various government organisations, including credit bureaus,
bank statements, income tax, and GST. Lentra Lending Cloud is the only
end-to-end digital lending platform that comprehensively answers a bank’s
lending platform requirements viz. Originations (LOS), Loan Management (LMS),
OpenAPI Stack, Data Analytics and Intelligence, and Credit Decisioning (BREX).

Lentra: Bridging the gap between MSMEs and credit unions in Tier 2 and Tier 3
cities

Lentra empowers banks with end-to-end digital journeys for SMEs' credit needs in
areas like mortgages, working capital, agri-finance, and invoice discounting,
among others. These digital journeys are assisted and primarily focused on
mobile with full forward and backward integration along the value chain. They
are even used to obtain access to markets either directly or via channel
partners. To provide instantaneous lending decisions to such SMEs, Lentra
provides an OpenAPI stack that is pre-integrated with an ecosystem of over 250
fintechs and 70 OEMs that support both Existing To Bank (ETB) and New To Bank
(NTB) clients. A few highlights of our unparalleled SME Lending Digital journeys
include thorough data sourcing and analysis, accurate credit eligibility using
alternative data, valuation, and risk assessment, all handled through a single
interface.

“Our clients are already concentrating on Tier II and III markets, and we
(Lentra) are proud to be the only end-to-end and their trusted digital lending
technology partner, offering a strong technology backend and OpenAPI
integrations that enable them to extend credit to individuals and SMEs even when
they have no prior credit history” said Dr. Jasmeet Chhabda, SVP & Head -
Marketing, Lentra

The future of lending with Lentra

Lentra is empowering lenders to fuel the dreams and ambitions of millions. Given
that financial inclusion is what banks are increasingly looking for, cloud-based
solutions and embedded journeys are effective to reach the masses digitally.
Lentra is perfectly positioned to deliver these objectives as the cloud platform
works on the API-first model for ease of lending to customers globally.

[1] https://inc42.com/buzz/digital-lending-become-1-3-tn-market-2030-india/

[2]
https://inc42.com/buzz/fintech-saas-platform-lentra-ai-acquires-ai-startup-thedatateam/



Disclaimer: Content Produced by ET Edge


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EXCLUSIVE


BANK OF BARODA CUTS HOME LOAN INTEREST RATE FOR THESE BORROWERS; KNOW NEW RATE,
WHO ARE ELIGIBLE

Bank of Baroda has cut its interest rate on home loans by 25 basis points (bps)
to 8.25 per cent for select borrowers, according to a press release. The reduced
interest rate is effective from November 14, 2022. Who are eligible for this
reduced home loan interest rate? Know here

 * Anulekha Ray
 * ET Online

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In a bid to provide some relief to thousands of borrowers, Bank of Baroda has
announced a concession on home loan interest rates. The bank has cut its
interest rate on home loans by 25 basis points (bps) for select borrowers,
according to a press release. Bank of Baroda now offers home loans starting from
an interest rate of 8.25 per cent per annum. The reduced interest rate is
effective from November 14, 2022.

Who are eligible for reduced home loan interest rate?
This special rate of home loan is available only for borrowers applying for a
fresh home loan with Bank of Baroda, stated the press release. Customers who
want to transfer their home loan balance to the state-owned bank will also be
eligible for this special rate, the lender said. Additionally, the bank also
removed the processing charges for home loans. Do remember that this new rate
will also depend on the credit profile of the loan borrower.

"This is one of the lowest and most competitive home loan interest rates in the
industry," the lender said. This special rate on a home loan is available till
December 31, 2022.

However, the existing home loan borrowers of the Bank of Baroda will not get the
benefit of this reduced interest rate.



“In a scenario where interest rates are on an upward trajectory, we are pleased
to drop our home loan interest rates and introduce a special, limited period
home loan interest rate offer of 8.25 per cent, making home purchases that much
more affordable for home buyers," said H T Solanki, General Manager - Mortgages
& Other Retail Assets, Bank of Baroda.

How will this rate cut impact your home loan EMIs?
For instance, you are planning to take a home loan of Rs 30 lakh at a special
interest rate of 8.25 per cent per annum for a tenure of 20 years. Then, you
have to pay an Equated Monthly Installment (EMI) of Rs 25,562.

At present, the public sector bank offers home loans starting at an 8.5 per cent
interest rate per cent. For a home loan of Rs 30 lakh at an interest rate of 8.5
per cent per annum for a tenure of 20 years, the EMI will be Rs 26,035.

So, under the special rate, the EMI would be lowered by Rs 26,035-Rs 25,562 = Rs
473.

Back-to-back RBI repo rate hikes and their impact on home loans
With the Reserve Bank of India (RBI) hiking repo rates by 190 basis points (bps)
in a short period (May till September 2022), banks have started increasing their
interest rate for home loans. Home loan borrowers have witnessed a steady
increase in their EMIs and overall costs in the last few months.



"Home loan interest rates may increase now, leading to short-term turbulence on
overall housing demand. The recent consecutive repo rate hikes had already added
to buyers’ overall acquisition cost," said Ramani Sastri - Chairman & MD,
Sterling Developers Pvt. Ltd.

"The impact of rate hikes will be predominantly on the affordable housing side,
which is primarily driven by sentiments and especially first-time home buyers
who are heavily reliant on home loans," said Lincoln Bennet Rodrigues, Chairman
& Founder, of the Bennet and Bernard Company, known for luxury themed homes in
Goa.



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EXCLUSIVE


BIHAR GOVT FREEZES BANK ACCOUNTS OF 7 ‘PFI MEMBERS’

The Union ministry of home affairs (MHA) has provided a list of seven persons
allegedly linked with the Popular Front of India (PFI) to Bihar government,
asking it to take appropriate action against them under the Unlawful Activities
(Prevention) Act (UAPA).

 * Madan Kumar
 * TNN

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PATNA: The Union ministry of home affairs (MHA) has provided a list of seven
persons allegedly linked with the Popular Front of India (PFI) to Bihar
government, asking it to take appropriate action against them under the Unlawful
Activities (Prevention) Act (UAPA).

Sources said the MHA has provided names of seven persons, their PANs (permanent
account numbers) and details of their bank accounts to the state’s chief
secretary and asked the state government to take quick action in the matter.“Of
the seven, four persons belong to Darbhanga district, one each from Araria and
Sitamarhi and one from Mumbai’s Nagpada area,” a senior home department official
told TOI on Friday. Interestingly, the man who lives in Mumbai’s Nagpada area
has bank accounts in Darbhanga district while he is also connected to Sitamarhi
district. Hence, his name has been sent to the Bihar government for tracing his
bank accounts and roots in Sitamarhi district, the official said.

Responding to the MHA’s directive, the state’s home department on Friday sent
letters to all the district magistrates concerned to take necessary actions on
priority basis.



The state home department has asked all the banks concerned to freeze their
accounts, the official said. On October 18 this year, the National Investigation
Agency (NIA) officials had conducted raids at two locations in Phulwarisharif in
Patna in connection with the PFI activities. Earlier, a PFI ‘terror module’ was
unearthed by Bihar Police in Phulwarisharif with the arrest of three persons,
including a retired Jharkhand police officer, for their alleged links with the
group and their plans to indulge in “anti-India” activities.



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EXCLUSIVE


BARCLAYS CUTS INVESTMENT BANKING JOBS AS DEALS LANGUISH

Investment bankers were awash with deals in 2021, but have seen few this year as
companies halt buyouts and listings amid volatility in the capital markets,
tensions between the United States and China, and the Russia-Ukraine war.

 * Reuters

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As a result, premier banks including Goldman Sachs Group and Deutsche bank felt
compelled to cut their workforce in mergers and acquisitions Barclays Plc has
cut its workforce in corporate and investment banking (CIB), according to a
person familiar with the matter, joining rivals who also took similar steps to
rein in costs as deals plunged from records set last year.

Investment bankers were awash with deals in 2021, but have seen few this year as
companies halt buyouts and listings amid volatility in the capital markets,
tensions between the United States and China, and the Russia-Ukraine war.

As a result, premier banks including Goldman Sachs Group and Deutsche bank felt
compelled to cut their workforce in mergers and acquisitions (M&A).



Citigroup Inc also eliminated dozens of jobs across its investment banking
division, Bloomberg News reported on Tuesday.

The cuts at Barclays account for less than 3% of their headcount in investment
banking, according to the source. Barclays declined to comment when contacted by
Reuters.

The move, which was earlier reported by Bloomberg, comes two weeks after the
British bank reported a 45% slump in advisory fees from M&A in the third quarter
that was softened by a powerhouse performance in fixed income, currencies and
commodities (FICC) business.. (Reporting by Mehnaz Yasmin in Bengaluru and
Anirban Sen in New York; Editing by Shailesh Kuber)


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EXCLUSIVE


BANKS CAN'T DEAL WITH FAMILY PENSION ON THEIR WHIM & FANCY, SAYS KARNATAKA HC

A bank cannot deal with family pension "at its whim and fancy" since the pension
is not a bounty or gratis granted to the pensioner or his/her spouse, the
Karnataka high court has observed in a recent order, coming to the rescue of a
73-year-old woman.

 * P Vasantha Kumar
 * TNN

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BENGALURU: A bank cannot deal with family pension "at its whim and fancy" since
the pension is not a bounty or gratis granted to the pensioner or his/her
spouse, the Karnataka high court has observed in a recent order, coming to the
rescue of a 73-year-old woman.

Canara Bank (formerly Syndicate Bank) had allegedly debited Rs 6.4 lakh from the
account of the family pensioner, stating that Rs 96,998 per month pension was
credited to her husband's account in place of Rs 38,604 per month, which
resulted in excess payment of Rs 13.4 lakh from March 2019 to February 6, 2021.
The HC said the bank is at liberty to recover Rs 4,000 per month.

Though recovery of excess amount is permitted (as per the government's master
circular), that would not mean the (excess) amount is to be recovered in one
stroke and, that too, from the petitioner who is a widow depending on family
pension and is suffering from ailments at age 73," Justice M Nagaprasanna said
in his order, directing Canara Bank to re-credit Rs 6.4 lakh into the account of
Vimala Ramanath Pawar, the petitioner.



The judge said the RBI circular mandates uniform recovery of wrong payments made
to pensioners and added that the bank is at liberty to recover Rs 4,000 per
month from the petitioner to realise the excess payment.

"For the folly of the officers of the bank in depositing excess amount, the
73-year-old widow is being made to move from pillar to post for getting a meagre
sum of Rs 13,055 as family pension, and the bank is also unauthorisedly seeking
to debit Rs 6.4 lakh from the money lying in the account. The petitioner pleads
that it has become difficult to sustain herself and her grocery and medical
bills have all been left unpaid. This state of affairs does not even move the
bank and unauthorized debit is continuing," the judge noted. Justice
Nagaprasanna said the bank's officers were responsible for "callous or reckless
transfer" of excess amount.

The petitioner's husband RV Pawar was a technical assistant executive engineer
in the state government and retired in May 2002. He was drawing Rs 38,604 a
month as pension in Syndicate Bank account in Hubballi. Following centralization
of pension from March 2019, the Centralized Pension Processing Centre started
paying pension. The account was transferred from Hubballi to Bengaluru's
Kasturinagar branch. Pawar died on February 6, 2021.



Vimala claimed Rs 6.4 lakh had been debited from her family pension account
without any intimation. According to her, the excess amount was not deposited
due to the fault of her late husband, and if recovery is made from her account
in that regard, she would face a lot of problems as she gets family pension of
Rs 13,055. She was not permitted to draw that even once.

Canara Bank said the sudden increase in pension amount was due to a mistake in
the CPPC. Whether the petitioner being aware of the deposit or not, cannot be a
ground to deny refund of the excess amount as it is public money, the bank
argued.



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EXCLUSIVE


RBI CANCELS LICENCE OF BABAJI DATE MAHILA SAHAKARI BANK, YAVATMAL

On liquidation, every depositor would be entitled to receive deposit insurance
claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from
DICGC.

 * PTI

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Mumbai, The Reserve Bank on Friday said it has cancelled the licence of Babaji
Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra, as the lender does not
have adequate capital and earning prospects. As per the data submitted by the
bank, the RBI said about 79 per cent of the depositors are entitled to receive
full amount of their deposits from Deposit Insurance and Credit Guarantee
Corporation (DICGC).

As on October 16, 2022, DICGC has already paid Rs 294.64 crore of the total
insured deposits.

Consequent to the cancellation of its licence, Babaji Date Mahila Sahakari Bank
Limited has been prohibited from conducting the business of 'banking' which
includes, among other things, acceptance of deposits and repayment of deposits
with immediate effect.



While announcing cancellation of the licence of Babaji Date Mahila Sahakari Bank
with effect from the close of business on Friday (November 11, 2022), it said
the bank does not have adequate capital and earning prospects.

"The bank with its present financial position would be unable to pay its present
depositors in full; and public interest would be adversely affected if the bank
is allowed to carry on its banking business any further," the RBI said.

On liquidation, every depositor would be entitled to receive deposit insurance
claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from
DICGC.

The RBI further said the Commissioner for Cooperation and Registrar of
Cooperative Societies, Maharashtra has also been requested to issue an order for
winding up the bank and appoint a liquidator for the lender. PTI NKD CS HVA

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Babaji Date Mahila Sahakari Bank Limited


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