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psu banks: IPO mandates via UPI: High decline rates at smaller PSU banks worry stakeholders

Synopsis ETtech Equity in education isn’t the only major victim of a glaring digital divide. Equity ownership in primary listings also hinges as much on the robustness of India s tech backbone – as evidenced in the latest flurry of digital mandates for top-flight IPOs. UPI mandates in June have also highlighted the gap in technology infrastructure between large private sector banks and their smaller public sector counterparts, with the differential in failure rates worrying ecosystem stakeholders about the industry’s capability to handle increased mandate loads ahead of mega public listings scheduled later this year. Punjab National Bank (43.51%), Indian Overseas Bank (37.76%), The Mehsana Urban Co-Op Bank (60.62%), Punjab and Sind Bank (64.78%) and AU Small Finance Bank (65.15%) showed UPI mandate success rates lower than at leading private sector banks, data sourced from the National Payments Corporation of India showed.

Automated debit transaction failure rate stays high in June

Automated debit transaction failure rate stays high in June SECTIONS Share Synopsis The high failure rates in debit payments in June have surprised analysts who had expected it to come down as restrictions in economic activity had started to ease with the fall in infections. Bounce rates have increased above 30% in May and June after falling to 27.48% in April 2021 which was much lower than the 36.65% reported in April 2020. Agencies Suresh Ganapathy, research analyst at Macquarie Capital Securities said the high failure rates in debit transactions could be an early indicator of stress in NBFCs. Failure rates in automated debit transactions have remained stubbornly high in June indicating that financial stress due to localized lockdowns to curb the spread of the Covid 19 pandemic has still not subsided.

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