Corporation, Allahabad Bank and Dhana Lkshmi Banks are taken out of Prompt Corrective Action (PCA) Framework. Pursuant to Government of India has infused fresh capital on February 21, 2019 into various banks including Allahabad Bank and Corporation Bank. Allahabad resevied Rs.6896 crre and Corporation Bank had received Rs.9086 crore. The infusion of fresh capital has…
In simple words, Commercial Real Estate (CRE) can be described as any property which is used for non-residential purposes such as housing buildings, hotels, restaurants, gymnasiums, hospitals, condominiums, shopping malls, office blocks, theatres, amusement parks, cold storages, warehouses, educational institutions, industrial parks etc. In terms of Basel II definition if the repayment primarily depends on…
In securitization, credit enhancement refers to a risk-reduction technique that increases the credit profile of structured financial products or transactions. Credit enhancement may be divided into First Loss facility and Second Loss facility. First loss facility represents the first level of financial support to a special purpose vehicle (SPV) as part of the process in…
‘Gilts’ is the short form for gilt-edged securities- so called because they carry no risk. Gilt Account Holder (GAH)/Constituent means an entity or a person including ‘a person resident outside India’ maintaining a “Gilt Account” with a Custodian.[“Custodian” is a primary member (PM) permitted by the Reserve Bank of India to open and maintain Constituent…
Currently the banks are mandated to extend collateral-free agriculture loans up to Rs.1 lakh. This limit of Rs.1 lakh was fixed in the year 2010.In view of overall inflation and rise in agriculture input cost since 2010, Reserve Bank of India vide its circular RBI/2018-19/118 FIDD.CO.FSD.BC.No.13/05.05.010/2018-19 dated February 7, 2019 advised all the scheduled commercial…
Monetary aggregates are broad categories of money that measure the money supply such as cash and demand deposits or bank credits which have an impact on the aggregate economic activity. Appraising monetary aggregates can generate a lot of information about the financial stability and overall health of a country. For example, if large amount of…
In banking and finance parlance, liquidity refers to the ability to convert one asset into another or to use assets to meet obligations. Liquidity indicates the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. Market liquidity refers to stock market where the…
Today (16.02.2019) the convener of the UFBU has been informed by IBA that the negotiating committee of IBA with the representatives of the constituent workmen Union/Officers will be held on Thursday 21st February 2019 at 11.00 A.M in Mumbai. In the meantime, the convener of UFBU received letters from AIBOC,NOBW, BEFI INBEF and NOBO seeking…
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests between companies and their stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the society. Corporate governance specifies the distribution of rights and responsibilities among different participants in the…
“Prudential norms” are the guidelines and general norms issued by the banking regulator (the central bank) of the country for the proper and accountable functioning of banks and financial institutions. The provisioning requirements for all types of standard assets, sub-standard assets, Doubtful assets and Loss assets stands as below. Standard assets: Banks should make general…
