4 PSU BANKS TO BE PRIVATIZED TILL YEAR END

Recently PMO had also written letter to the Ministry of Finance for acceleration the process of privatization.In order to raise funds and improve the financial health of the state-owned banks,the government aimed to keep stakes in only five PSU banks, and privatize the rest of them.

Indian government has drawn a list of four PSU banks namely, Punjab & Sind Bank, Bank of Maharashtra, UCO Bank and IDBI Bank , which directly or indirectly holds majority stakes and wants to dis-invest equity.

The story of bank mergers and acquisitions is quite old. In recent years, the Indian banking system has seen many mergers and acquisitions. In March 2020, the Union Cabinet had approved the merger of 10 public sector banks into four, paving the way for the largest consolidation among state-owned lenders. 

1) Punjab National Bank took over the Oriental bank of Commerce and the United Bank.
2) Canara Bank took over Syndicate Bank.
3) Union Bank of India took over Andhra Bank and Corporation Bank. 
4) Indian Bank was to be merged with Allahabad Bank.
5) Bank of Baroda got merged with Vijaya Bank and Dena Bank. - 2018
6) State Bank Of India got merged with five associate banks and Bhartiya Mahila Bank. -2017

Date : 16/9/2020 Information: By Sources

SBI ANNOUNCED CUT IN MCLR ON 7TH MAY 2020

State Bank Of India ( SBI ) countries largest lender announce reduction in Margin Cost of fund based Lending Rate (MCLR ) on 7th May 2020. MCLR will be reduced by 15 basis points. One year MCLR will come down to 7.25% from 7.40 % which is effective from 10th May 2020.

With the cut in MCLR Emi of Home loan will be cheaper. MCLR is totally based on bank own cost of fund. If MCLR is linked to home loan it will not bring down your EMI's immediately as MCLR based loan typically have one year resting clause.

SBI has also cut interest rate on retail term deposits by 20 basic points for tenure upto 3 years, effective from 12th May 2020. This is the third cut in FD rate in two months. For senior citizen it has introduced " SBI Wecar Deposit "Under this 30 basic point premium will be paid on retail senior citizen deposits. This scheme is in effect till 30 Sep 2020.

Date :7/5/20  Information from Sources

J. CREW FILES FOR BANKRUPTCY PROTECTION ON MONDAY 4TH MAY 2020

J. CREW Group filed for bankruptcy protection on 4th May 2020 during period of COVID - 19.It is New York based retail cloth chain. It is known for Preppy Clothing. Apparels were worn by Michelle Obama at time of Obama when President of USA. 

Bankruptcy was filed in Virginia Federal Court with approximate $2 billion total debt.

J. Crew has about 13000 employees before April 2020. It is the first High - Profile retailer to seek protection since the spread of corona virus spread across the world. 

Date : 5/5/20  Information from Sources

RBI MAY EXTEND MORATORIUM PERIOD BY ANOTHER 3 MONTHS

By declaring 3.0 lock-down till May 17 by Government of India, Certain relaxation are given on category bases of Red , Orange and Green Zone. Moratorium period is near to end hence RBI is thinking on extending another 3 months period.

The repayment of the loan will be started once moratorium period ends after 3 months. If  RBI consider proposal and give second moratorium period for 3 months it will help people and industries impacted by present situation of Covid-19 in lock-down.

Suggestion for the same came from many PSU and Private sector bank.

Date :5/5/20 Information from Sources.  

THE CKP CO.- OP. BANK LICENCE CANCELLED BY RBI

The CKP Co-Operative Bank's Licence was cancelled by RBI in ongoing lock-down. Depositors are entitled upto Rs 5 lakh post liquidation.

Presently there are approximately 1.25 lakhs Account holders and Approximately 0.11 lakhs Depositors and Investors. The total Net worth is around Rs 230 Cr. Total cumulative amount under Fixed deposit is around Rs 480 Cr.

In 2014 after first Stroke bank Board has tried to improve the financial condition. On March 31,2020 RBI extended permit for another 2 months. But due to some issue on 2nd May 2020 RBI cancelled the Licence.

Date : 3/5/20  Information by Sources. 

CRUDE OIL PRICE AT 1999 LOWS WITH CHANGING MARKET TREND

Oil prices reduced again on Wednesday with Brent falling to the lowest price since 1999. Brent crude ,which fell 24% in the previous session, touched $15.98 per barrel, its lowest since June 1999.

Oil prices have slumped by around 80% this year Covid-19 pandemic which spread across the world. It has killed nearly 180,000 people. routing financial markets and leading to potentially the worst economic meltdown since 1930s slowdown.

The viral outbreak has dropped fuel demand nearly to 30% worldwide and energy companies in the United States, the world's biggest producer, are scrambling to find storage for excess oil.

Date: 22/4/20 Information by Sources.

INDIA IS 17TH COUNTRY WHICH HAS MORE THEN 20000 COVID-19 PATIENTS & 600+ DEATH

India became 17th nation to cross 20,000 Covid-19 patients mark on 21/4/20.Death toll crosses 600+.

Gujarat emerged as 2nd Covid Hot sport after Maharashtra, Crosses 2000 mark in number of cases and overtook Delhi To claim 2 most infected state in India.

With continuously increasing no of cases,  Ahmedabad is leading in the state with more than 1300 cases.

Date: 22/4/20 Information by Sources

HDFC LTD CUTS INTEREST RATE BY 15 BASIC POINTS

HDFC LTD on Tuesday slashed its lending rate by 15 basis points.This move comes after a few market lenders, including the country's biggest lender SBI has reduced their lending rate.

"HDFC  reduces its  Retail Prime Lending Rate (RPLR) on housing loans, on which its  Adjustable  Rate Home Loans (ARHL) are bench marked, by 15 basis points (bps), with effect from April 22, 2020," the company said in a statement.

New  rates will now range between 8.05-8.85 per cent. The RBI last month cut the policy rate by 75 basis points to spur growth amid the COVID-19 crisis.

Date: 21/4/20  Information by : Sources

CORONAVIRUS IMPACT : SALARY CUT AIR ASIA INDIA / SOURCES

Air Asia India has declared salary cut of its pilot and all other employees.

Sources confirmed that air lines had implemented salary cut of 13 % for Captain and 7% for First Officers.As per Governments direction company has suspended all flights till May 03.

Employees earning Rs 50000 / month or less have escaped the salary cut. Similarly all other companies in aviation industries are thinking for similar steps to conserve cash flow. Apart from laying off expat pilots, airlines have either cut pays or have sent employees on leave without pay.

Date:21/4/20  By:Sources

CORONAVIRUS IMPACT: INFOSYS SUSPENDED PROMOTION & SALARY HIKE

Countries 2nd largest IT firm Infosys has suspended promotion and salary Hike in view of the ongoing Covid-19 pandemic that has claimed over 500 lives in Pan India.The firm said that it will honor all new job offers.

Infosys has reported 6.3% rise in Net Profit in Q4 to Rs 4335 crore for March 2020.

Infosys CEO and MD Salil Parekh said our team has achieved around 93 % remote working and ensuring consistent service delivery to their clients in present situation. 

Infosys COO Pravin Rao said the impact caused by Covid-19 since last few weeks of March has led to significant displacement in the operating modal while severely testing future business continuity plan of companies. 

Date: 21/4/20.