Gross bad loans at Indian banks may rise to 8.5 per cent of total assets by March 2017 from 7.6 percent in March 2016

Canara Bank on Tuesday said it will seek shareholders' approval in the ensuing Annual General Meeting in July to raise Rs 2,000 crore to create capital buffer. The bank seeks to raise the capital by allotting equity shares/preference shares/securities by way of follow on public issue, rights issue and/or on a private placement basis, Canara Bank said in a filing to BSE. "The issue proceeds will enable the bank to strengthen its capital adequacy requirements as specified by RBI from time to time", the bank said. The state-owned lender's capital adequacy ratio, as on March 31, 2016, stood at 11.08 per cent, and was well above the 9 per cent stipulated by the Reserve Bank.
-NDTV Profit

Sounding caution on consolidation of public sector banks India, rating agency Moody's today said that in the current macro economic environment, proposals like these will create risks that could offset the potential long-term benefits. India's banking system has witnessed an increase in stressed assets since 2012. None of them currently have the financial strength to assume a consolidator role without risking its own credit standing post-merger, said Alka Anbarasu, Vice President and Senior Analyst at a Moody's.
-Business Standard

Gross bad loans at Indian banks may rise to 8.5 per cent of total assets by March 2017 from 7.6 percent in March 2016 if the Central Bank orders them to conduct a second round of asset quality reviews, a RBI report said on Tuesday Meanwhile, under a "severe stress" situation, total bad loans could rise to 9.3 percent in March 2017, the RBI said in its semi-annual Financial Stability Report.
-NDTV Profit

Six months after it flagged concerns over weak corporate balance sheets and conducted its first asset quality review (AQR) of banks, the RBI has warned that risks to the banking industry’s stability have increased sharply, indicating more pain ahead.
-Live Mint

The RBI has raised concerns over the capital adequacy ratio of lenders saying that they may not be able to meet the norms under extreme scenario. "Individually, a large number of banks, (30 of 50 banks) will not be able to meet the required capital adequacy ratio levels under the extreme scenario," said the Financial Stability Report (FSR) published by the Central Bank.
-Business Standard

A Government-appointed panel has selected N. S. Vishwanathan as a Reserve Bank of India Deputy Governor, replacing incumbent H. R. Khan. Vishwanathan is currently an executive director at the RBI, overseeing the banking regulation and non-banking department. He would succeed Khan, who will retire on July 3.
-Business Line

With nine months to go to complete the merger process involving its associates, SBI is working on details of the amalgamation proposal, which will be submitted to the Government soon for approval. "The bank has started negotiation process with the six different entities after getting in-principle clearance from the Cabinet. Once the amalgamation plan is ready, it will be submitted to the government for the final nod as per the Section 35 of SBI Act 1955," a senior government official said.
-Economic Times

RBI Governor Raghuram Rajan sided with three of the five members of a technical advisory committee who recommended the central bank leave interest rates on hold at its June 7 policy review, according to minutes released on Tuesday.
-Business Standard

The non-banking finance companies continued to perform better than the banks with the balance sheet expanding by 15.5%, said the RBI in its latest Financial Stability Report.
-Economic Times

Stressing on need to continue with sound domestic policies and reforms, RBI Governor Raghuram Rajan said banks' asset quality stress has to be dealt first in order to revive the credit growth.
-Business Standard

Indian Overseas Bank, in partnership with MasterCard, announced the launch of the Multicurrency Forex Travel Prepaid Card.
-The New Indian Express

Axis Bank has forayed into urban microfinance programme by providing TAB based solution to low-income women groups in urban cities.
-Business Standard

United Bank of India today got shareholders' approval to raise nearly Rs 1,000 crore, either by qualified institutional placement (QIP), public or rights issue.
-Business Standard

Bank of Maharashtra today said it has raised Rs 500 crore by issuing bonds that are compliant with global capital adequacy norms.
-Business Standard

RBI today said four non-banking financial companies have surrendered their registration certificates following which they would not transact any financial business. Those surrendering their certificate of registration are Wall Street Finance Company (Mumbai-based), Maruti Finance Pvt Ltd (Hyderabad), JEL Finance & Investments (Hyderabad) and Shrigopal Finance and Investment (Thane). Separately, RBI said it has cancelled the registration certificate of Sampada Chemicals of Mumbai and Ahmedabad-based Saakshi Securities.
-Money Control Com

Tamil Nadu showed the highest gross fiscal deficit across all states in 2015-16, Maharashtra continued to be the richest state in the country while Punjab witnessed steady fall in the number of factories between 2010-11 and 2013-14, according to Reserve Bank of India’s first edition of the Handbook of Statistics on Indian States.
-Business Standard