The Government has approved a

scheme under which the eligible

non-bank lenders will be provided
short-term liquidity through a
special purpose vehicle (SPV) set up
by the SBICAP securities, a
subsidiary of the SBI, the RBI said
today. Under the special liquidity
scheme, the SPV will purchase the
short-term papers from eligible
NBFCs/HFCs, which will utilise the
proceeds under this scheme solely
for the purpose of extinguishing
existing liabilities.
-Business Standard
The RBI said no NBFC and HFC with
more than 6% net NPA will be
eligible to receive support from the
Rs 30,000 crore special liquidity
scheme. The NBFC will also need to
have capital adequacy above 15%
to become eligible while for HFCs it
needs to be over 12% as on March
31, 2019.
-Economic Times

Government has decided to keep

the interest rate on small saving
schemes such as National Saving
Certificates (NSC) and Public
Provident Fund (PPF) unchanged for
3 months starting today.
-Business Line

Digital payments registered a sharp

rebound in June as the economy
began to slowly open up and
consumers continuing to prefer
contactless payments. The Centre’s
BHIM UPI scaled a new high of 134
crore transactions last month and
processed a record ₹2.61-lakh crore
of payments. This is the highest
ever in terms of transactions as well
as volumes that UPI has processed
since its launch in 2016.
-Business Line

ICICI Bank has launched a facility

that will allow its retail customers
to get loan of up to Rs 1 crore
against their holdings in both debt
and equity mutual funds.
Customers can avail this loan as an
overdraft digitally without visiting a
branch and submitting physical
documents. Called, Insta Loans
against Mutual Funds, the facility
has been launched in partnership
with the Computer Age
Management Services or CAMS, a
press release from the bank stated.
-Economic Times

The Government has extended

Union Bank of India CEO Rajkiran
Rai's term by another 2 years until
his retirement on May 31 2022. In a
notification, S R Mehar, deputy
secretary in the department of
financial services in the Ministry of
Finance, said Rai's term which was
ending on Tuesday has been now
extended until May 31 2022.
-Economic Times
Set to launch its follow-on public
offer (FPO) by the middle of this
month, YES Bank is getting an
indicative price range of Rs 12-15 a
share from prospective investors,
say bankers. During roadshows,
investors said they were keen to
invest in the FPO. Considering the
huge bad debt saddled with the
bank, they would be able to invest
at a significant discount to the
current market price.
-Business Standard
Indian banks may continue to face
heightened asset quality and
earning pressure for at least 2
years, as disruption to business
activity and supply chains and
shrinking personal incomes damage
banks' balance sheets, according to
a report by Fitch Ratings.
-Business Standard

NBFCs asset quality is likely to

worsen to 5-7 per cent in the
current financial year due to weak
economic growth on account of
disruptions caused by coronavirus
-related lockdown, according to a
report by rating agency Icra.
-Business Standard

India’s current account balance

recorded a marginal surplus of $0.6
billion in the fourth quarter (Q4)
ended March 31, 2020 on the back
of higher remittances and foreign
direct investment, and external
commercial borrowing inflows. The
surplus comes after almost 13 years
of deficit in the current account,
which measures the inflow and
outflow of goods, services,
investment incomes and transfer
payments.
-Business Line

The Finance Ministry today released

GST collection data for the first 3
months of the current fiscal year, as
well as for June. The collection in
June exceeded ₹90,000 crore,
though it was 9% less than the
collection in June 2019.
-Business Line

The World Bank will give $ 750

million as loan to India for
strengthening small businesses that
form the backbone of the country’s
economy and were devastated in
the coronavirus pandemic. The
emergency lending will ensure
liquidity for some 1.5 million MSME
and protect millions of jobs, said
the Bank in a statement. The
money will help government’s
efforts to channel liquidity to
MSME through a range of
instruments, including credit
guarantees, and de-risk lending
from banks and NBFCs.
-Business Standard
New India Assurance reported a net
profit of ₹126.6 crore for the fourth
quarter of 2019-20, compared to a
net loss of ₹270.54 crore in the
same period a year ago.
-Business Line

India will not allow Chinese

companies to participate in
highway projects, including those
through joint ventures, Union
Minister Nitin Gadkari said today
amid border standoff with China.
Gadakri also said the government
will ensure that Chinese investors
are not entertained in various
sectors like MSMEs.
-Economic Times

BSNL tender for 4G upgrade has

been cancelled after the
Department of Telecom (DoT) asked
the state-run firm not to use
Chinese telecom gear, according to
a source.
-Economic Times

Vodafone Idea today reported a

staggering Rs 73,878 crore of net
loss in fiscal ended March 2020 -
the highest ever by any Indian firm.
-Moneycontrol.com

Gold prices in India hit a record high

on July 1, tracking a global rally, as
surging coronavirus cases in many
countries raised the metal's
safe-haven appeal.Local gold
futures hit an all-time high of Rs
48,871 ($646.66) per 10 gram in
early trade, taking their gains to
25% in 2020 so far.
-Moneycontrol.com
USD/INR 75.60
Sensex 35414.45 (+498.65)
BSE Bankex 24938.53 (+644.70)
Nifty 10430.05 (+127.95)
Nifty Bank 21977.60 (-607.45)

-01-07-2020

(Compiled by Canara Bank Officers'

Union Team Kerala- affiliated to All
India Bank Officers' Association)