India Financial Services Correspondent, Mumbai
Devidutta's Feed
Jun 11, 2015

India’s push to offer banking for all stumbles on empty accounts

MUMBAI/NEW DELHI (Reuters) – More than half of a record 160 million accounts opened in India as part of a drive to offer banking to all are still empty, illustrating the massive task ahead for one of the government’s most high-profile campaigns and the strain on banks.

Prime Minister Narendra Modi launched a scheme last August to end “financial untouchability”, an ambitious project to enable tens of millions to have access to a bank. The scheme offers free insurance and even an overdraft facility and aims to eventually help deliver all subsidies and other social benefits to the poor directly.

Jun 9, 2015

Banks see new bad debt rules as step in right direction

MUMBAI (Reuters) – Indian banks have welcomed new rules that could allow them to take majority stakes in troubled companies as a warning to wayward entrepreneurs, even if the provisions will not apply to the bulk of struggling loans from past years.

The Reserve Bank of India (RBI), which has long sought to make majority shareholders more responsible for any failures, published rules late on Monday that allow lenders to turn loans to defaulting companies into equity in those firms of 51 percent or more.

Jun 9, 2015

Indian banks see new bad debt rules as step in right direction

MUMBAI, June 9 (Reuters) – Indian banks have welcomed new
rules that could allow them to take majority stakes in troubled
companies as a warning to wayward entrepreneurs, even if the
provisions will not apply to the bulk of struggling loans from
past years.

The Reserve Bank of India (RBI), which has long sought to
make majority shareholders more responsible for any failures,
published rules late on Monday that allow lenders to turn loans
to defaulting companies into equity in those firms of 51 percent
or more.

May 28, 2015

Bank of India says “worst is over” after bad debts jump

MUMBAI, May 28 (Reuters) – Bank of India reported
its first quarterly loss in more than two decades on Thursday,
weighed down by a larger than expected increase in bad debts,
sending its shares down more than 8 percent.

But India’s third-largest state-owned bank by assets
forecast an improvement for the fiscal year ahead, blaming the
rise in bad loans on increased pressure put on borrowers in an
attempt to clean up its balance sheet.

May 24, 2015

Loan recovery eludes India’s banks, even as growth rate beats China

MUMBAI (Reuters) – A recovery in India’s credit growth could elude the country’s banks until early 2016, despite an economy that in the first three months of this year is expected to have outpaced China.

A 12.6 percent growth rate in lending in the fiscal year that ended on March 31 was the lowest in almost two decades, and would have been lower but for a surge in the last two weeks. In the two weeks to May 1, it slowed to 10.5 percent.

May 22, 2015

India’s top bank SBI says bad loan pressure easing

MUMBAI/KOLKATA (Reuters) – State Bank of India, the nation’s top lender by assets, posted better-than-expected quarterly bad debt levels on Friday and said it now expected an improvement, a long-awaited sign of easing pressure that helped its shares jump over five percent.

The loan improvement in the three months ended in March helped SBI, which accounts for about a quarter of Indian loans and deposits, post a 23 percent rise in net profit to 37.42 billion rupees ($589 million), above forecasts.

May 11, 2015

Bank of Baroda’s net profit halves in fourth quarter

MUMBAI (Reuters) – Bank of Baroda(BOB.NS: Quote, Profile, Research, Stock Buzz) reported on Monday a near-halving of its quarterly net profit, lagging estimates, as the nation’s second-biggest state-owned lender was weighed down by higher provisions for bad loans.

The Mumbai-based bank said standalone net profit fell to 5.98 billion rupees ($93.76 million) for its fiscal fourth quarter to March 31, from 11.57 billion rupees reported a year earlier.

May 11, 2015

India’s second-biggest state lender Bank of Baroda’s Q4 net halves

MUMBAI, May 11 (Reuters) – India’s Bank of Baroda
reported on Monday a near-halving of its quarterly net profit,
lagging estimates, as the nation’s second-biggest state-owned
lender was weighed down by higher provisions for bad loans.

The Mumbai-based bank said standalone net profit fell to
5.98 billion rupees ($93.76 million) for its fiscal fourth
quarter to March 31, from 11.57 billion rupees reported a year
earlier.

May 4, 2015

Future expands retail footprint with Bharti deal

NEW DELHI/MUMBAI (Reuters) – Future Retail Ltd (FURE.NS: Quote, Profile, Research) has agreed to acquire most of local conglomerate Bharti Enterprises’ shares in its retail business to create one of India’s biggest retail chains with more than 570 stores across the country.

Under the all-stock deal valued at about 7.5 billion rupees ($118 million), the retail operations of Future Retail and Bharti Retail will be merged to create a new company.

May 4, 2015

India’s Future expands retail footprint with Bharti deal

NEW DELHI/MUMBAI, May 4 (Reuters) – India’s Future Retail
Ltd has agreed to acquire most of local conglomerate
Bharti Enterprises’ shares in its retail business to create one
of India’s biggest retail chains with more than 570 stores
across the country.

Under the all-stock deal valued at about 7.5 billion rupees
($118 million), the retail operations of Future Retail and
Bharti Retail will be merged to create a new company.