Will take fresh look at framework to supervise NBFCs: RBI Governor Shaktikanta Das

The Reserve Bank of India(RBI) Governor has said that the RBI is giving a fresh look at the regulatory and supervisory framework of the Non-banking Financial Companies(NBFCs). The RBI Governor said that the Reserve Bank will continue to monitor the activity and performance of NBFC sector with a focus on major entities and their inter-linkages… Continue reading Will take fresh look at framework to supervise NBFCs: RBI Governor Shaktikanta Das

Modi likely to meet bank chiefs to discuss roadmap for PSBs

Prime Minister is likely to meet chief executives of Indian banks to chalk out a strategy for the banking sector for the next five years. The meeting assumes significance as the country’s GDP growth slowed to 5.8% in the January-March 2019 quarter dragging down the full-year growth to a 5-year low of 6.8%. Further, the… Continue reading Modi likely to meet bank chiefs to discuss roadmap for PSBs

SFIO identifies ‘coterie’ that defrauded IL&FS

Serious Fraud Investigation Office(SFIO) has charged the erstwhile top management members of the ILFS of forming a coterie with its auditors and independent directors to defraud the company while running the ILFS as their personal business. Coterie means a small group of people with shared interests or tastes, especially one that is exclusive of other… Continue reading SFIO identifies ‘coterie’ that defrauded IL&FS

RBI against special NBFC window

The Reserve Bank of India (RBI) is not ready to offer a special lending window to stressed non-banking finance companies(NBFCs).The RBI may have to provide liquidity to all the NBFCs approaching it for funds if such a special window is opened. NITI Aayog has made a strong case before RBI for a special lending window… Continue reading RBI against special NBFC window

Bank credit grows 13.2% in FY19

According to data released by the Reserve Bank of India, bank credit has grown by 13.2% in financial year 2018-19 as compared to 10.3% in the previous financial year. This growth was mainly driven by loans to services and retail sector. Further,deposit growth also gained momentum growing by 10% as compared to 6.7% a year… Continue reading Bank credit grows 13.2% in FY19

RBI seeks modification of NCLAT order in IL&FS case

The Reserve Bank of India has decided to appeal in the National Company Law Appellate Tribunal(NCLAT) to seek a modification of its earlier order. Earlier,NCLAT had restrained banks from declaring accounts of Infrastructure Leasing and Financial Services (IL&FS) and its group companies as non-performing assets (NPA).NPA is a loan or advance for which the principal… Continue reading RBI seeks modification of NCLAT order in IL&FS case

IL&FS ignored risk assessment reports while extending loans: audit

A forensic audit report of IL&FS by Grant Thornton has found serious lapses in the manner in which huge loans were extended to certain entities even after internal risk assessment clearly showed that the borrowers were under financial stress. Further,Serious Fraud Investigation Office(SFIO) in its interim report has alleged that the non-banking finance company IL&FS… Continue reading IL&FS ignored risk assessment reports while extending loans: audit

After IL&FS, SEBI tightens norms for raters

After IL&FS, SEBI tightens norms for raters News: SEBI has tightened disclosure norms for credit rating agencies after they failed to warn investors in time about the deteriorating credit profile of Infrastructure Leasing and Financial Services Ltd (IL&FS). Important Facts: SEBI Guidelines: The credit rating agencies (CRAs) will now have to take into account various… Continue reading After IL&FS, SEBI tightens norms for raters