After issuing an order to reduce interest rates on small savings schemes that would have delivered a blow to savers who depend on these schemes for income and social security,
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In a related party transaction on the last day of the financial year the government of India (GoI), as a principal shareholder, infused Rs14,500 crore of equity in four public sector banks—Central Bank of India, Bank of India, UCO Bank, and Indian Overseas Bank (IOB). Simultaneously the four banks invested in bonds issued by GoI. These bonds, of varying maturities between 10-15 years, were issued at a zero rate of interest. These bonds have been labelled zero coupon par re-capitalisation bonds.
Economist Madan Sabnavis has called this an ‘innovative’ fund raising exercise by the GoI. To this bond market observer, it appears a case of too good to be true. It is indeed so, and hardly innovative.
After issuing an order to reduce interest rates on small savings schemes that would have delivered a blow to savers who depend on these schemes for income and social security,
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Facebook has kicked off former US President Donald Trump for the second time from its platform as he tried to evade the ban by posting an interview via a Facebook Page in the name of his daughter-in-law Lara Trump.
Facebook said in a statement to The Verge on Wednesday that the company has removed content from Lara Trump's Facebook Page that featured former President Donald Trump speaking.
"In line with the block we placed on Donald Trump's Facebook and Instagram accounts, further content posted in the voice of Donald Trump will be removed and result in additional limitations on the accounts," the company added.
Government owned Indian Bank has declared bad loans amounting Rs 202.32 crore to seven domestic borrowers and $5.289 million lent to a foreign company as fraud.
Paying heed to concerns raised by several bodies over possible failure of millions of e-mandates or auto-debits with many banks not upgrading their capacities, the Reserve Bank of India (RBI) has extended the timeline by six months.
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The traditional microfinance-joint liability group (MFI-JLG) model has been one of the very few banking, financial services and insurance (BFSI) business models which has delivered a high return (20% plus return on equity—RoE) despite regulatory, political, and other impediments. The MFI segment was worth less than Rs10,000 crore in 2011 and, today, has matured to Rs2.40 lakh crore in terms of portfolio outstanding.
But the microfinance institutions (MFIs), might not be able to replicate their growth rates due to structural issues, as per a research report by Edelweiss Securities Ltd.
The MFI business is susceptible to brief tough periods with potential to wash out returns generated earlier.