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Friday
August 2020
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News Headlines
Sports Minister Rijiju to launch Fit India Freedom Run on Friday        Hoping to get the speed gun up, Starc works on muscular body during COVID lockdown        SpiceJet offers automated customer service and check-in facility on WhatsApp        Sebi issues procedure for exchanges to handle investor complaints against listed cos        Experts warn Spain is losing the 2nd round in virus fight        Bhutan imposes 1st nationwide virus lockdown        Pilot meets Gehlot, handshake signals his return        Over 3 Cr N95 masks, 1.28 Cr PPEs, 10 Cr HCQ tablets given to states, UTs by Centre for free        Bengal govt encourages organ donation: Mamata        PM unveils new tax reforms - faceless tax assessment, taxpayers' charter        Virus outbreak threatens New Zealand's fan-filled stadiums        Lahiri back in action after 5 months, joins Atwal at Wyndham        HAL s Light Combat Helicopters deployed for operations at Leh        Sensex falls over 200 pts in early trade; Nifty below 11,300        Black women, Democrats celebrate Indian-origin Senator Harris' nomination as VP        Joe Biden names Indian-American Senator Kamala Harris as running mate        Biden 'nailed this decision' in picking Harris to be his running mate: Obama        Terrorist gunned down, soldier killed in encounter in J-K's Pulwama        Mulayam Singh Yadav's condition under control: Hospital        COVID-19: 60,963 fresh cases take India's tally to 23,29,638        
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Business News
Finmin may review capital requirement of PSU banks after second quarter
 
New Delhi, Jul 5 (PTI) The finance ministry may assess the capital requirement of public sector banks after the September quarter as there would be greater clarity about a spike in bad loans by that time, sources said.

There is widespread fear that non-performing assets (NPAs) of the banks will witness a surge due to the economic slowdown triggered by the COVID-19 outbreak and resultant lockdowns.

This will need higher provisioning by banks as per the Reserve Bank of India (RBI) guidelines.

However, there could be a silver lining if RBI accepts request of loan restructuring for sectors hit badly by the coronavirus pandemic, sources said.

The pain of NPA will surface only after the extended moratorium ends in August, the sources said, adding it will be appropriate to assess capital requirement only after the second quarter numbers are finalised.

Veteran banker and CII President Uday Kotak had said the public sector banks would need financial support from the government to drive the economy, while private sector banks need to raise capital from various sources to meet the future challenges.

"The COVID-19 outbreak and resulting lockdown has impacted adversely the real economy, businesses, individuals, government and financial sector.

"While the government is facing the risk of higher fiscal deficit, the banking sector urgently needs the recapitalisation to the tune of Rs 3-4 lakh crore to meet the lending requirements," he had said last month.

Ratings agency Fitch has estimated a shortfall of USD 15 billion (about Rs 1.25 lakh crore) by Indian banks to achieve a 10 per cent Weighted Average Common equity tier-1 (CET 1) ratio under moderate stress and in the absence of which banks would show high risk aversion.

The banking sector's NPAs were expected to increase by 450 basis point through FY21 and FY21 under moderate stress.

The government has infused over Rs 3.15 lakh crore into public sector banks (PSBs) in the 11 years through 2018-19.

In 2019-20, the government proposed to make Rs 70,000 crore capital infusion into PSBs to boost credit for a strong impetus to the economy.

However, the government refrained from committing any capital in the Budget 2020-21 for the PSBs, hoping that the lenders will raise funds from the market depending on the requirement.

In the last financial year, Punjab National Bank was given Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore.

Merging entities like erstwhile Allahabad Bank was provided Rs 2,153 crore, United Bank of India 1,666 crore and Andhra Bank Rs 200 crore.

Besides, Bank of Baroda got a capital infusion of Rs 7,000 crore, Indian Overseas Bank Rs 4,360 crore, UCO Bank Rs 2,142 crore, Punjab & Sind Bank Rs 787 crore and Central Bank of India Rs 3,353 crore.

In addition, LIC-controlled IDBI Bank too received additional capital of Rs 4,557 crore through the supplementary demands for grants.

In all, the government has infused Rs 65,443 crore in PSBs in the last financial year as both regulatory and growth capital, as per Budget documents.


SpiceJet offers automated customer service and check-in facility on WhatsApp
Sebi issues procedure for exchanges to handle investor complaints against listed cos
HAL s Light Combat Helicopters deployed for operations at Leh
Sensex falls over 200 pts in early trade; Nifty below 11,300
Gold declines Rs 1,317; silver also plunges Rs 2,943
Rupee opens flat against US dollar
Patanjali considering bidding for IPL title sponsorship
Rupee edges 4 paise lower to 74.98 against US dollar in early deals
Vodafone Idea shares plunge nearly 8 pc on Q1 loss
Insider trading: Sebi asks Top Class to disgorge Rs 3.77 cr made in Aurobindo Pharma''s scrip
Sugar production to increase to 305 lakh tonnes in marketing year 2020-21: Ind-Ra
SBI SBI Q1 profit surges 81 pc to Rs 4,189 cr
19 income tax return filing deadline extended till Sept 30
Troubles abound, Boeing losses bloom to USD 2.4 billion in 2Q
Ashok Leyland’s latest range, ‘AVTR’, delivered to customers in Goa
Irani asks textiles sector to 'commercialise opportunities'
ICICI Bank Q1 net profit rises 36% to Rs 2,599 crore
Govt's endeavour has been to further simplify Direct Tax laws: Sitharaman
Vistara receives its first Airbus A321neo aircraft
Wipro to launch 5G edge services solutions suite
KERALA NEWS
Toll in Idukki landslide rises to 52 as three more bodies recovered
 Idukki (Ker): The toll in the landslip in Pettimudi in the high range Idukki district rose to 52 wit  
1,417 Covid cases in Kerala; 36 health workers also infected
SIT formed by Kerala police to probe air crash
Kerala logs 1,211 fresh coronavirus cases; aggregate reaches 34,331
INTERNATIONAL NEWS
Experts warn Spain is losing the 2nd round in virus fight
 Barcelona: Not two months after battling back the coronavirus, Spain's hospitals are beginning to se
Bhutan imposes 1st nationwide virus lockdown
Black women, Democrats celebrate Indian-origin Senator Harris' nomination as VP
Joe Biden names Indian-American Senator Kamala Harris as running mate
NATIONAL NEWS
Pilot meets Gehlot, handshake signals his return
 Jaipur: Sachin Pilot met Rajasthan Chief Minister Ashok Gehlot Thursday, the first time after he ope
Over 3 Cr N95 masks, 1.28 Cr PPEs, 10 Cr HCQ tablets given to states, UTs by Centre for free
Bengal govt encourages organ donation: Mamata
Terrorist gunned down, soldier killed in encounter in J-K's Pulwama
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