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New Delhi, <keyword id="20070868" type="General" weightage="20" keywordseo="SP-Global-Ratings" source="keywords" meta.keywordsubtype="org" meta.entityname="S&amp;P Global Ratings" meta.hostid="153" meta.entityid="S&amp;P Global Ratings">S&amp;P Global Ratings</keyword> on Friday said <keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords" meta.keywordsubtype="org" meta.entityname="RBI" meta.hostid="153" meta.entityid="RBI">RBI</keyword>'s regulatory action on <keyword id="19938495" type="General" weightage="20" keywordseo="Kotak-Mahindra-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="Kotak Mahindra Bank" meta.hostid="153" meta.entityid="Kotak Mahindra Bank">Kotak Mahindra Bank</keyword> could restrain the lender's <keyword id="19998083" type="General" weightage="20" keywordseo="credit-growth" source="keywords">credit growth</keyword> and profitability. The RBI on Wednesday barred Kotak Mahindra Bank from issuing fresh credit cards and onboarding new customers online. Credit cards are a higher-yielding target growth segment for Kotak Mahindra Bank. This portfolio grew at 52 per cent year-on-year as of December 31, 2023, compared with total loan growth of 19 per cent, the US-based rating agency said. "Action by the Reserve Bank of India (RBI) this week could push the bank to rely more on physical branch network expansion to supplement growth thus entailing higher operating costs," S&amp;P said, adding that it could be a setback for credit growth and profitability. This action will not, however, materially affect our ratings on Kotak Mahindra Bank (BBB-/Stable/A-3). This is because credit cards make up a small 4 per cent of total loans as of the end of December 2023. The bank will still be able to cross-sell its other products to existing customers. "We anticipate Kotak Mahindra Bank could potentially take a year to fully address the RBI's key concerns for the bank which encompasses systems stability, patch management, and disaster recovery," S&amp;P said. RBI's actions on Kotak Mahindra Bank follow similar actions in recent years on other financial institutions in India. S&amp;P said in a similar case in 2020, when HDFC Bank was temporarily barred from sourcing new credit card customers, it took the bank more than a year to meet the RBI's requirements and have restrictions lifted. In the past 18 months, Kotak Mahindra Bank has made significant progress on technological enhancements, including the hiring of senior level executives in the chief technology officer and chief experience officer positions, S&amp;P said. Nevertheless, it will take time for the bank to implement changes and conduct a comprehensive external audit to address the RBI's concerns. RBI's actions on Kotak Mahindra Bank follow several outages of the bank's core banking systems as well as online and digital banking channels, and deficiencies identified through the RBI's IT examinations in 2022 and 2023. This shows the regulator's commitment to strengthening the financial sector and its diminishing tolerance for operational deficiencies. Systems stability and robust disaster recovery planning have become increasingly important with the rapid scale up in digital transactions in India. "Regulators across many jurisdictions are adopting a similar playbook. The Monetary Authority of Singapore recently imposed a six-month ban on DBS Bank Ltd from making new acquisitions and closing branches or ATMs following several service disruptions in 2023," S&amp;P noted. SEE ALSO:<a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms" target="_blank">Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh</a><a href="https://www.businessinsider.in/tech/mobile/news/realme-c65-5g-with-5000mah-battery-120hz-display-launched-starting-at-10499/articleshow/109619597.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/realme-c65-5g-with-5000mah-battery-120hz-display-launched-starting-at-10499/articleshow/109619597.cms" target="_blank">Realme C65 5G with 5,000mAh battery, 120Hz display launched starting at ₹10,499</a><a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms" target="_blank">An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema</a>

RBI action on Kotak Mahindra Bank may restrain credit growth, profitability: S&P

<ul><li><keyword id="3883339" type="General" weightage="100" keywordseo="esaf-small-finance-bank" source="Orion">ESAF Small Finance Bank</keyword> received bumper interest from institutional investors.</li><li>The company has raised ₹135.15 crore from anchor investors ahead of its <keyword id="6354763" type="General" weightage="80" keywordseo="ipo" source="Orion">IPO</keyword>. </li><li>It intends to use proceeds to augment tier11 capital base, future capex and more.</li></ul> The ₹463 crore ESAF Small Finance Bank’s initial public offer (IPO) was subscribed 73 times on Tuesday. Qualified institutional buyers (QIBs) showed outsized interest in the issue, as their quote was subscribed a whopping 173 times. It also received good interest from institutional investors (NIIs) as this portion was subscribed 84 times. Retail quota was also subscribed by around 17 times the shares on offer. The IPO has fixed a price band of ₹57-₹60 per equity share. It has raised ₹135.15 crore from anchor investors, like BNP Paribas Arbitrage, <keyword id="13798241" type="General" weightage="50" keywordseo="kotak-mahindra-life-insurance" source="Orion">Kotak Mahindra Life Insurance</keyword>, Edelweiss Tokio Life Insurance, ICICI Prudential Life Insurance and more. The issue comprises a fresh issue of ₹390.7 crore and an offer for sale (OFS) of up to ₹72.3 crore. The bank intends to use proceeds from the fresh issue towards augmenting its tier – 1 capital base to meet its future capital requirements; and general corporate purposes. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Type of investor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No of times subscribed </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Qualified Institutional Buyers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">173.52 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Non-institutional Investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">84.37 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.97 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">73.15 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: BSE ESAF SFB has 700 banking outlets, 559 ATMs across 21 states and two union territories. Its primary products include advances and deposits. It mainly focuses on rural and semi-urban banking franchises. It provides MSME loans, agricultural loan business and retail loan business. Its deposits grew from ₹89,994.26 million to ₹146,656.25 million between FY21-23 registering a compounded annual growth rate (CAGR) of 27.66%. Its <keyword id="6422019" type="General" weightage="50" keywordseo="casa" source="Orion">CASA</keyword> ratio dropped from 22.84% in FY22 to 21.39% in FY23. Its gross NPA (non performing assets) and net NPA stood at 2.49% and 1.13% respectively in Q1FY24. Despite having a nationwide presence, the bank's primary business operations are concentrated in South India, specifically in the states of Kerala and <keyword id="20154" type="General" weightage="80" keywordseo="tamil-nadu" source="Orion">Tamil Nadu</keyword>. “As of now, its operations are limited to South India with a lower presence in North India. Hike in RBI’s interest rate will result in compression of NIMs (net interest margins) from current levels. Increase in stress on assets specially on small ticket items will affect the future cash flows which will lead to increase in NPA,” said a report by Religare elucidating its key risks.

ESAF Small Finance Bank IPO subscribed 73x as QIBs rush in

In yet another innovation during Covid-19 times, <keyword id="46013" type="CITY" weightage="20" keywordseo="Kotak-Mahindra-Bank">Kotak Mahindra Bank</keyword> (Kotak) on Monday launched the Cardless Cash Withdrawal Facility through ATMs. Under this unique facility, Kotak account holders can make cash withdrawals as well as remit money to beneficiaries across India without using a physical debit card. Using their registered mobile number with the bank, Kotak customers can initiate the transaction through the Kotak Net Banking or Mobile Banking platform. The beneficiary need not be a Kotak customer and need not even have an account with any bank. The cash can be withdrawn by the beneficiary from any Kotak ATM in India. To withdraw cash, all that a registered beneficiary would need to do is to enter his/her mobile number, sender and SMS codes and the exact cash amount. This would immediately trigger cash withdrawal from a Kotak Bank ATM. An account holder can also withdraw cash using similar feature. "As a digital-first bank, enhancing customer experience is a continuous process. The cardless cash withdrawal facility is simple, secure and convenient to use; and frees customers from having to carry their debit cards with them all the time. "Further, in a country as diverse as India, cash continues to play an important role and this facility will enable our customers to seamlessly remit cash to their friends, family and other beneficiaries," said Puneet Kapoor, President - Products, Alternate Channels and Customer Experience Delivery, Kotak Mahindra Bank. SEE ALSO: <a href="https://www.businessinsider.in/politics/india/news/from-priyanka-gandhi-vadra-to-manmohan-singh-these-are-the-stated-views-of-congress-working-committee-members-on-sonia-gandhis-resignation/slidelist/77713740.cms">From Priyanka Gandhi Vadra to Manmohan Singh, these are the stated views of Congress Working Committee members on Sonia Gandhi's resignation</a> <a href="https://www.businessinsider.in/politics/india/news/congress-working-committee-cwc-meeting-updates-decision-on-congress-new-president-sonia-gandhi-or-rahul-gandhi/articleshow/77717675.cms">Sonia Gandhi offers to quit, Manmohan Singh holds her back and Rahul Gandhi questions party leaders — the CWC meeting reveals the cracks in Congress</a> <a href="https://www.businessinsider.in/science/environment/news/cognizant-says-it-will-spend-2-7-crore-to-restore-sebakkam-lake-and-help-natural-marshland-pallikaranai-wetland/articleshow/77716094.cms">Cognizant says it will spend ₹2.7 crore to restore one of India's last natural marshlands in Chennai</a>

You can now withdraw cash from Kotak Mahindra Bank ATMs without physical debit card

<ul><li><keyword id="46717" type="CITY" weightage="20" keywordseo="IndusInd-Bank">IndusInd Bank</keyword>, <keyword id="6986952" type="UNKNOWN" weightage="20" keywordseo="IDFC-First-Bank">IDFC First Bank</keyword>, and <keyword id="97186" type="CITY" weightage="20" keywordseo="JK-Bank">J&amp;K Bank</keyword> stocks are soaring in trade today, led by the <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI) committee’s recommendation to increase the cap on promoters’ stake from 15% to 26%.</li><li>The proposed change comes at a time when banks need the infusion of funds to deal with the outcome of the COVID-19 pandemic on borrowers.</li><li>Billionaire Uday Kotak, promoter of <keyword id="46013" type="CITY" weightage="20" keywordseo="Kotak-Mahindra-Bank">Kotak Mahindra Bank</keyword>, may now also be able to cement his position in courts where he was arguing to retain 26% of his shareholding.</li></ul>IndusInd Bank’s shares are up over 4% after the Reserve Bank of India’s (RBI) Internal Working Group (IWG) recommended that the cap on promoters’ stake, in the long run, should be raised from the current level of 15% to 26%. <div type="image" title="indusind bank share price" msid="79363913" hostid="261" caption="&amp;lt;p&amp;gt;IndusInd Bank share price over the last one month&amp;lt;/p&amp;gt;"></div> This brings grand tidings for the bank as its promoter, the Hinduja Group, has indicated its interest to increase shareholding. “We further estimate that, at the current market price, promoters could infuse up to ₹10,000 crore to increase their stake to 26% at the bank versus 14.85% currently,” said Motilal Oswal Financial Services in its report. Other banks are also gaining ground, with Jammu &amp; Kashmir Bank leading the pack, up by 13.3%, and IDFC First Bank also soaring by 6.4%. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change in share price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jammu &amp; Kashmir Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.30 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IDFC First Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndusInd Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.15% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">RBL Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.77% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Mahindra Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.14% </td></tr></tbody></table>Source: Nifty/BSE, share prices as of 11:20am Kotak Mahindra Bank’s share price continues to trade flat While Kotak Mahindra Bank’s shares continue to trade flat, the increase in the cap on promoter stake is favourable for its promoter Uday Kotak as well. If accepted, this recommendation may cement the case he’s making to be allowed to retain a 26% stake in Kotak Mahindra Bank. <div type="image" title="kotak mahindra bank share price" msid="79363928" hostid="261" caption="&amp;lt;p&amp;gt;Kotak Mahindra Bank share price over the past one month&amp;lt;/p&amp;gt;"></div> “We view this as a positive development across the banking sector, especially for the promoter-driven banks. This would help promoters have more ‘skin in the game’,” noted Nirmal Bang Securities. According to analysts, increasing the cap on promoters’ sharing holding in banks also levels the playing field for other stakeholders that may have already reduced their shareholder as per RBI’s existing guidelines. The recommendation is also coming at a crucial time when banks need more capital to deal with the outcome of the COVID-19 pandemic after the stay on moratorium is lifted by the Supreme Court. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/how-to-earn-money-at-home-from-googles-task-mate/articleshow/79362215.cms">Google is testing ‘Task Mate’ in India, which lets users earn money for doing tasks on their smartphones</a> <a href="https://www.businessinsider.in/tech/apps/news/hdfc-banks-net-banking-upi-services-and-atms-down-due-to-data-centre-outage/articleshow/79344484.cms">HDFC Bank’s net banking, UPI service and ATMs were down due to a 'data centre outage' but RBI demands more detailed information</a> <a href="https://www.businessinsider.in/science/environment/news/mount-everest-home-to-microplastics-and-melting-glaciers/articleshow/79324609.cms">Microplastics found at the highest point on Earth as the glaciers around Mount Everest’s death zone melt</a>

IndusInd Bank surges over 4% after RBI committee proposes to increase the cap on promoter stake in private sector banks

<ul><li><keyword id="6477319" type="UNKNOWN" weightage="20" keywordseo="bank-employees">Bank employees</keyword> are on strike today and tomorrow to protest the government’s proposal to privatise two more public sector banks this year.</li><li>Unlike past mergers, where one public sector bank was combined with another, divestment this time will mean a change of ownership from public to private.</li><li>Most branch-related services will be unavailable during the strike, but customers will still be able to operate their mobile and <keyword id="92298" type="ORGANIZATION" weightage="20" keywordseo="Net-banking">net banking</keyword> services or head to an ATM for cash. </li></ul>Over one million public sector bank employees are on strike today and tomorrow, March 15 and March 16, in protest of the government’s proposal of privatisation. <div type="Article" hostid="261" msid="81223572" title="EXCLUSIVE: Bankers may be working all 31 days of March with the government looking to double the loans doled out under the PM SVANidhi scheme" mstype="2" mssubtype="0"></div> “The Government’s announcement to privatise our public sector banks is totally unfortunate and unwarranted. The need of the hour is to strengthen public sector Banks” said the strike notice by the All India Bank Officers' Confederation (AIBOC). Meanwhile, private sector banks like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and IndusInd Bank, which account for around one-third of the market share, are expected to operate as usual. Services that may be affected due to the stick at public sector banks: <ul><li>Deposit and withdrawal services at branches</li><li>Opening of new accounts</li><li>Cheque clearance</li><li>Loan approvals</li></ul>However, ATMs are expected to function normally during the course of the strike, provided they don’t run short on cash. Mobile and net banking services will operate as expected. Why are public sector <keyword id="3523785" type="PERSON" weightage="20" keywordseo="Bank-Employees-on-strike">bank employees on strike</keyword>? The main demand of the unions’ is that the government should withdraw its plan to privatise state-run banks. According to Finance Minister Sitharaman’s announcement, the government plans to privatise two more public sector banks this year — apart from the sale of IDBI Bank. <div type="Article" hostid="261" msid="80971254" title="Bank of India, Central Bank of India, Indian Overseas Bank, and Bank of Maharashtra rally by over 19% on hopes of privatisation" mstype="2" mssubtype="0"></div> Top 10 Indian banks with the most government stake: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Public sector bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Percentage of government shareholding </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian Overseas Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">95% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">UCO Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">93.29% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Punjab National Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">92.22% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Central Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">88.02% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">87.05% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of Maharashtra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">87.01% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">81.73% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Punjab and Sind Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">79.62% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Canara Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">72.55% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Union Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">67.34% </td></tr></tbody></table>Source: Centre for Financial Accountability (CFA) In the past when public sector banks went on strike, it was to oppose the merger of public sector banks — like Syndicate Bank with Canara Bank, Oriental Bank of Commerce with Punjab National Bank, and Dena Bank with Bank of Baroda. In the past four years, the government has merged 14 public sector banks. This time around, mergers will mean that public sector banks will no longer be ‘public’. With the government planning on outrightly reducing its stake, public sector banks will see a change in ownership with control being given to private investors. According to the unions, employment opportunities will shrink and jobs will be contractual rather than permanent, affecting job security. Moreover, the move would prove beneficial for whoever buys these banks but not for the depositors. “Private banks do not entertain loans to poor people and for the priority sectors. Their aim is only more and more profit. Service charges are more in private banks and common people will be affected. Rural branches may be closed in the name of non-viability,” said the strike notice. However, many are questioning whether or not going on strike will yield a different outcome than the numerous times the banks have travelled down this path — and failed. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/ignore-low-cibil-score-for-street-vendor-loans-work-on-holidays-and-other-diktats-from-indian-government-to-banks-rushing-to-meet-march-target/articleshow/81223572.cms">EXCLUSIVE: Bankers may be working all 31 days of March with the government looking to double the loans doled out under the PM SVANidhi scheme</a> <a href="https://www.businessinsider.in/finance/banks/news/bank-of-india-central-bank-of-india-indian-overseas-bank-and-bank-of-maharashtra-rally-by-over-10-on-hopes-of-privatisation/articleshow/80971254.cms">Bank of India, Central Bank of India, Indian Overseas Bank, and Bank of Maharashtra rally by over 19% on hopes of privatisation</a> <a href="https://www.businessinsider.in/finance/banks/news/asset-quality-hdfc-bank-icici-bank-axis-bank-and-others-is-better-than-expected-according-to-moodys/articleshow/80706240.cms">Moody's sees better than expected recovery of asset quality in India's leading private banks</a>

Bank employees on strike today and tomorrow — ATMs, net and mobile banking likely to be the only relief

<ul><li>The RBI allowed banks to integrate <keyword id="7392422" type="UNKNOWN" weightage="20" keywordseo="Video-KYC">video KYC</keyword> in the account opening process in January 2020.</li><li>Kotak Mahindra Bank has now introduced video KYC for customers opening new Kotak 811 savings accounts.</li><li>Other major banks are working on video KYC and are expected to launch the facility soon.</li></ul>In January 2020, India’s central bank the Reserve Bank of India amended the Know Your Customer (KYC) norms, allowing banks to use video calling to complete the KYC process for new customers. Now, amid the coronavirus pandemic, Kotak Mahindra Bank has announced that customers can open a full-fledged Kotak 811 savings account, becoming the first bank in the country to introduce video KYC in the account opening process. This will allow customers to open a bank account and finish the KYC process from the safety of their home. As per <a href="https://www.moneycontrol.com/news/business/online-kyc-is-here-no-need-to-visit-a-branch-to-open-a-bank-account-5287881.html">reports</a>, other major banks are also working on launching their video KYC platforms. Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank, said, “In the new normal world that we must now adapt to in the aftermath of COVID-19, Kotak’s emphasis on digital-first initiatives takes on even more meaning. In this context, Video KYC can prove to be a game changer where customer verification is completed from the comfort of one’s home or office without the need for a physical interaction.” How to open Kotak 811 savings account with video KYC Here’s what you need to open a Kotak 811 savings account <ul><li>Aadhaar number</li><li>PAN card</li><li>A paper and pen to upload your signature</li><li>A proper background with good lighting</li><li>Clear view of the customer’s face</li></ul>Once you have all the required things, follow the below steps - <div type="image" title="Kotak 811 savings account" msid="75990982" hostid="261" caption="&amp;lt;p&amp;gt;Kotak 811 video KYC application&amp;lt;/p&amp;gt;"></div> <ul><li>To begin, go to Kotak Mahindra Bank’s <a>website</a>.</li><li>Now, click on ‘Apply Now’.</li><li>Enter your name, mobile number and email ID.</li><li>Provide the bank consent to use Aadhar to open your account.</li><li>Now, enter your Aadhaar number, PAN and communication address.</li><li>Now, allow access to your phone’s location to begin the video KYC.</li><li>The bank executive will begin the video KYC.</li><li>Once your video KYC is completed, a Kotak 811 savings account will be opened.</li></ul>Note: Video KYC on Kotak is available from 10 am to 6 pm, Monday to Saturday. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/here-is-a-list-of-bank-atms-that-allow-you-to-recharge-your-jio-airtel-and-vodafone-numbers/articleshow/75006459.cms">Here is a list of bank ATMs that allow you to recharge your Jio, Airtel, and Vodafone numbers</a> <a href="https://www.businessinsider.in/personal-finance/news/how-to-apply-for-emergency-loan-from-sbi/articleshow/75441666.cms">How to apply for emergency loan from SBI</a> <a href="https://www.businessinsider.in/tech/apps/how-to/how-to-schedule-whatsapp-messages/articleshow/75839535.cms">How to schedule WhatsApp messages</a>

How to open a bank savings account using video KYC

<ul><li>The stock listed at ₹71.9 as compared to its issue price of ₹60.</li><li>The issue was subscribed 73x with good interest from institutional investors.</li><li>It intends to use the net proceeds to augment its tier-1 capital base and more. </li></ul>ESAF Small Finance Bank made its D-street debut at a 20% premium on Friday. This is lower than what the grey market had predicted, which was expecting 33% listing gains. The stock closed at ₹69.05 per share, slightly below its listing price, ending at a premium of 15.08% over the IPO price. The stock listed at ₹71.9 per share as compared to its issue price of ₹60. Its market cap is ₹3,701 crore according to Bombay Stock Exchange. Prashanth Tapse, senior VP of research at Mehta Equities had pegged the listing gains anywhere between 20-30%. “We believe the premium listing is justified on the back of investor friendly pricing and reasonably IPO valuations when compared to peers. Hence we recommend allotted investors to look for booking profits and post listing we expect limited upside,” he added. The ₹463 crore issue was subscribed 73 times the shares on offer with outsized interest from qualified institutional buyers (QIBs). This quota was subscribed a whopping 173 times. It also received good interest from non-institutional and retail investors. It has raised ₹135.15 crore from anchor investors, like BNP Paribas Arbitrage, Kotak Mahindra Life Insurance, Edelweiss Tokio Life Insurance, ICICI Prudential Life Insurance and more. The listing performance of recent D-street debuts have been mixed. The last issue to list Mamaearth parent Honasa Consumer gave muted 4% listing gains but Cello World gave a good 22% gains. Here are the listing gains of the last few market debuts <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><thead><tr><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">Company </th><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">Listing gains </th></tr><tr><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">Honasa Consumer </th><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">4% </th></tr><tr><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">Cello World </th><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">22% </th></tr><tr><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">Blue Jet Healthcare </th><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">14.4% </th></tr><tr><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">IRM Energy </th><th style="border-width: 0.999997pt; border-style: solid; border-color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); padding: 5pt; overflow: hidden; overflow-wrap: break-word;">-5% </th></tr></thead><tbody><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Plaza Wires </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">48% </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Updater Services </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.3% </td></tr></tbody><tbody></tbody></table> ESAF SFB fixed a price band of ₹57-₹60 per equity share for its issue. The IPO is a combination of fresh issue and offer for sale, and intends to use the net proceeds from fresh issue to augment its Tier – I capital base and meet future capital requirements. ESAF SFB has 700 banking outlets, 559 ATMs across 21 states and two union territories. Its primary products include advances and deposits. It mainly focuses on rural and semi-urban banking franchises. It provides MSME loans, agricultural loan business and retail loan business. Its deposits grew from ₹89,994.26 million to ₹146,656.25 million between FY21-23 registering a compounded annual growth rate (CAGR) of 27.66%. Its CASA ratio dropped from 22.84% in FY22 to 21.39% in FY23. Its gross NPA (non performing assets) and net NPA stood at 2.49% and 1.13% respectively in Q1FY24. Despite having a nationwide presence, the bank's primary business operations are concentrated in South India, specifically in the states of Kerala and Tamil Nadu. “As of now, its operations are limited to South India with a lower presence in North India. Hike in RBI’s interest rate will result in compression of NIMs (net interest margins) from current levels. Increase in stress on assets specially on small ticket items will affect the future cash flows which will lead to increase in NPA,” said a report by Religare elucidating its key risks.

ESAF Small Finance Bank lists at 20% premium but below grey market expectations

<ul><li>The <keyword id="1783182" type="PERSON" weightage="20" keywordseo="NUE">NUE</keyword> licence would enable the entity to hold pan-India control in payments, rivalling the likes of the government backed National Payments Corporation of India.</li><li>Reliance has reportedly signed up with Google and Facebook to set up a ‘new umbrella entity’ (NUE), which will be promoted by RIL and Infibeam Avenues’ So Hum Bharat.</li><li><keyword id="6355725" type="ORGANIZATION" weightage="20" keywordseo="tata-group">Tata Group</keyword>, <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> and Paytm too have formed their own consortiums to apply for the licence.</li></ul>When <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> signed up for a $5.7 billion cheque from Mark Zuckerberg in April, 2020, he made a promise to the Facebook founder to help boost their payments innovations in India. While WhatsApp pay is yet to take off, one year later, it seems Ambani is delivering on that promise through another route which can only be bigger. Reliance has <a href="https://economictimes.indiatimes.com/tech/tech-bytes/reliance-partners-google-facebook-in-seeking-nue-licence-from-rbi/articleshow/81237979.cms">reportedly </a>signed up with Google and Facebook to set up a ‘new umbrella entity’ (NUE), which will be promoted by RIL and Infibeam Avenues’ So Hum Bharat. Infibeam Avenues’ currently runs the payments gateway CCAvenue. India’s central bank had floated the bid for NUE licences in August, 2020. The NUE licence would enable the entity to hold pan-India control in payments, rivalling the likes of the government backed National Payments Corporation of India. NPCI is an initiative backed by the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) which acts as an umbrella entity that operates retail payments and settlements. The NUE licence would give the companies the opportunity to set up, manage and operate “ATMs, White Label PoS; Aadhaar based payments and remittance services; develop new payment methods, standards and technologies; monitor related issues in the country and internationally; take care of developmental objectives like enhancement of awareness about the payment systems,” according to the RBI guidelines. The RBI, which had initially set a deadline of February 26, 2021 for the application of the licences, recently extended it until March 31, 2021. According to <a href="https://economictimes.indiatimes.com/tech/tech-bytes/reliance-partners-google-facebook-in-seeking-nue-licence-from-rbi/articleshow/81237979.cms?from=mdr">reports</a>, RBI is initially going to give out only two NUE licences. Competition is high A stake in the control over India’s burgeoning digital payments market, which sees over 93 million transactions worth $12 billion daily, as per a report by HDFC Securities from December, 2020, is an opportunity that Reliance isn’t the only one vying for. <div type="image" title="payments transaction." msid="81268420" hostid="261"></div> The 152-year old conglomerate Tata Group, which is looking to build its own Super App spread across retail and payments, has <a href="https://economictimes.indiatimes.com/tech/tech-bytes/tata-group-takes-over-sbi-bid-for-nue-licence-from-rbi/articleshow/81237978.cms">reportedly</a> taken over the bid initially expressed by State Bank of India and Bank of Baroda. The Tatas are bidding through their subsidiary company Ferbine Private Limited, in which HDFC Bank and Kotak Mahindra Bank had already picked up a 9.99% stake each. The deal is also backed by Mastercard, PayU and Reliance’s telecom competitor Bharti Airtel. In an exchange filing declaring its stake in Tata-owned Ferbine, Kotak Mahindra Bank had said, “The main business of the company would be to operating a pan-India umbrella entity for retail payment systems, as would be allowed/licenced by RBI, subject to the approval of the NUE application.” <keyword id="191583" type="PERSON" weightage="20" keywordseo="Jeff-Bezos">Jeff Bezos</keyword>’ e-commerce firm Amazon, which has been bullish about the Indian payments sector and rolled out its own product Amazon Pay, <a href="https://economictimes.indiatimes.com/tech/tech-bytes/amazon-icici-bank-axis-bank-ready-with-nue-plan-to-rival-npci-upi/articleshow/81181363.cms">has partnered</a> with ICICI Bank, Axis Bank and others for the NUE licence. Meanwhile, India’s digital payments poster boy Vijay Shekhar Sharma too isn’t one to miss out on the opportunity. Paytm too has<a href="https://economictimes.indiatimes.com/tech/technology/paytm-ola-and-indusind-bank-team-up-to-apply-for-nue-license/articleshow/81217427.cms"> reportedly</a> partnered with Induslnd Bank, Ola Financial and others to bid for the licence. The partnerships have sprung up as the RBI mandates that ‘no single promoter/promoter group shall have more than 40% investment in the capital of the NUE’. The latest developments in the payments sector with the Tata Group, Reliance and Amazon is just the latest in the rivalry between the three companies, who are already competing in the Indian retail sector. The Tata Group is eyeing a 68% stake in Indian grocery e-retail startup BigBasket. The Indian e-grocery sector is heating up with the world’s richest man Jeff Bezos betting on it with Amazon Pantry, India’s richest man Mukesh Ambani upping the game with JioMart. SEE ALSO: <a href="https://www.businessinsider.in/business/news/elon-musk-and-reliance-industries-mukesh-ambani-compete-in-energy-storage-skytran-and-hyperloop/articleshow/81266903.cms">Elon Musk is facing a challenge from Asia’s richest man Mukesh Ambani in India⁠— both in energy and transportation</a>

EXPLAINED: The NUE licence for payments that Tata, Ambani and Bezos have applied for

(Eds: Adding info) Mumbai, Mar 18 () After 13 days of hardship for customers, Yes Bank said it has resumed all banking services as the moratorium imposed on the lender was lifted on Wednesday evening. Besides, the lender would extend banking time for three days starting Thursday. Soon after the lifting of the 13-day moratorium at 6 pm, some customers took to social media complaining that they were not able to access certain services, including internet and mobile banking. "Our banking services are now operational. You can now experience the full suite of our services. Thank you for your patience and co-operation. #YESforYOU @RBI @FinMinIndia," the lender said in a tweet. There are also concerns in certain quarters that Yes Bank could see significant amount of deposit withdrawals. "To serve you better, our branches will open one hour earlier at 08:30 hours from March 19 to 21, 2020. We have also extended banking hours across branches for our senior citizen customers, from March 19 to March 27, 2020, 16:30 hours to 17:30 hours," the bank said in another tweet. On March 5, the Reserve Bank of India had imposed a moratorium as well as superseded the board of the then struggling Yes Bank. Deposit withdrawals were capped at Rs 50,000 per account apart from other restrictions. Under the Yes Bank reconstruction scheme, SBI and seven financial institutions, including private sector lenders, have infused around Rs 10,000 crore in the bank. Yes Bank's deposit base eroded by Rs 72,000 crore to Rs 1.37 lakh crore as of March 5, 2020. The same was at Rs 2.09 lakh crore as of December 31, 2019, as per data shared by the bank last Friday. On Tuesday, then Yes Bank CEO-Designate Prashant Kumar said the private sector lender has taken adequate steps to ensure availability of funds for customers. "All our ATMs are full with cash. All our branches have adequate supply of cash. So, from the Yes Bank side, there is absolutely no issue on the liquidity front," Kumar had said. With the lifting of the moratorium, Kumar is now the Yes Bank CEO. However, certain customers of the bank vented their grievances on Twitter after the moratorium was lifted. Some of them indicated that they might shift their money from the lender and posted their grievances tagging the bank's Twitter handle. Replying to some of the tweets, the bank apologised for the inconvenience caused to the customers and said it was "facing intermittent issues". The private sector lender has got support from its largest investor State Bank of India (SBI), which holds 48.21 per cent stake in the bank. SBI alone has invested Rs 6,050 crore into the bank. ICICI Bank and HDFC (Rs 1,000 crore each), Axis Bank (Rs 600 crore), Kotak Mahindra Bank (Rs 500 crore), Bandhan Bank and Federal Bank (Rs 300 crore each) and IDFC First (Rs 250 crore) have invested in Yes Bank. HV DP KPM RAM HRS HRS

Yes Bank comes out of moratorium; lender says all services available now

Mumbai, Mar 17 () <keyword id="45660" type="CITY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> CEO-designate <keyword id="219963" type="PERSON" weightage="20" keywordseo="Prashant-Kumar">Prashant Kumar</keyword> on Tuesday ruled out a forensic audit of the lender's books and remained non-committal on continuing to pay the present 5-6 per cent interest on deposits. Kumar also said there is absolutely no worry on the liquidity front and a complete operational normalcy will be restored from 6 pm on Wednesday. The retired SBI <keyword id="6355272" type="UNKNOWN" weightage="20" keywordseo="bank">bank</keyword>er, who will formally take over as the chief executive and managing director on March 26 as per the rescue plan authored by the RBI, further said he expects Rs 8,500-10,000 crore recoveries in the March quarter as the bank has already made higher provisions of over 72 per cent from 42 per cent and that he does not expect more than the already announced 5 per cent more slippages. "There is absolutely no need for a forensic audit on the books of Yes Bank as what we have declared in the Q3 results as doubtful assets are on most conservative (basis). "If at all we finally book an additional Rs 8,500 crore in fresh slippages, our higher provisions at 72 per cent will make sure that the credit cost comes down in absolute terms," Kumar -- who was flanked by Rajnish Kumar, the chairman of SBI which is the largest shareholder of Yes Bank with close to 43 per cent ownership, and Ashutosh Khajuria of Federal Bank which has invested Rs 300 crore into the bank's rescue -- told reporters here this evening. However, both the Kumars were non-committal on continuing to pay the higher 6 per cent interest to savings bank depositors nor changing the present auditor BSR &amp; Company, a KPMG affiliate under whose watch the bank went belly up. It can be noted that Yes Bank, Kotak Mahindra Bank and DBS are the only three lenders that offer 6.5 per cent interest on savings bank deposits, while the nation's largest lender SBI pays a paltry 3 per cent and the heavily retail-focused HDFC Bank pays 3.5 per cent. On the issue of the bank being sued by the AT1 bondholders (Rs 10,000 crore worth of additional tier 1 debt), who claim that Yes Bank miss-sold the debt instrument to them which now have been completely written down by the RBI under the rescue plan, both the Kumars said the matter is sub-judice and if its proven that there was in fact mis-selling then it could be looked into. "As the matter is pending at the Bombay High Court, let's not discuss it much. All we can tell you is that as far the bank is concerned, we have not broken any written convents with the asset managers and bondholders," they said. They also did not offer a clear answer on the lock-in on even retail investors of the bank stocks, who are also planning to sue the bank and the RBI. It can be noted that on March 5, the Reserve Bank had imposed a moratorium on Yes Bank for 30 days, including capping withdrawals at Rs 50,000 per depositor after it found that the new management was unable to raise the urgent core capital which had fallen much below the mandated level. Since last November, Yes Bank had been saying it would raise at least USD 2 billion in core equity capital. But the bank and the RBI said the moratorium will be lifted at 6 pm on March 18, as per the reconstruction scheme notified and that it will be back to normal operations. "We have made adequate precautions. All our ATMs are filled with cash. All our branches have adequate supply of cash. So, from our side, there is absolutely no issue on the liquidity front," Kumar said, adding in fact since the past three days more money is coming to the bank than being taken out. Also, only one-third of the depositors did withdraw the mandated Rs 50,000 that too in the initial days. He also clarified that there would not be any need to depend on external sources for liquidity, to which the SBI chairman chipped in saying we have more than enough credit line to draw from but I don't think we need to draw down on them given the present liquidity position. "And if there is a need, then those liquidity lines can be pressed into operations," Prashant Kumar said and assured depositors that there is "absolutely no need to worry about the safety of their money". After the moratorium is lifted, Kumar said all the customers would be able to enjoy the entire banking services as before or even better as "the entire staff is fully geared up to serve the customers better with more commitment". Going forward, the CEO-designate said he has tasked the sales force to get 60 per cent deposits and loans from the retail side but did not offer a time-line to achieve the same. About the reconstruction scheme, Kumar said due to government support, the RBI and the other financial institutions, the crisis at the bank was resolved in just 13 days as against the initially planned 30 days, which he described as something unprecedented. Under the scheme, Yes Bank has received over Rs 10,000 crore from eight financial institutions, including Rs 6,050 crore from SBI and the rest from seven other private sector banks including ICICI Bank, HDFC and Kotak Bank. The SBI chairman said not even a single <keyword id="7050954" type="UNKNOWN" weightage="20" keywordseo="Yes-Bank-share">Yes Bank share</keyword> it holds would be sold before the three-year lock-in period. He also said SBI would increase stake in Yes Bank to 49 per cent from current over 42 per cent in the second round of funding which should happen by the end of the present quarter. Shares of Yes Bank jumped over 59 per cent to close at Rs 58.65 on the BSE, whose benchmark tanked another 2.6 per cent on Tuesday capping the losses since the coronavirus scare at over 32 per cent now. ICICI Bank and HDFC have invested Rs 1,000 crore each into the bank, while Axis Bank put in Rs 600 crore, Kotak Mahindra Bank (Rs 500 crore), Bandhan Bank, Federal Bank (Rs 300 crore each) and IDFC First (Rs 250 crore) also joined the SBI-led consortium to invest in Yes Bank. On Monday, RBI Governor Shaktikanta Das said the crisis ridden bank has enough funds to meet any requirements and assured that the central bank will provide additional liquidity support if needed. There is a worry that once the moratorium is lifted on March 18 evening, there can be a run on the bank, putting more liquidity pressure. "I would like to mention that Yes Bank has enough liquidity to meet any requirement. If there is a requirement, the RBI will provide necessary liquidity support" Das told had told reporters. The bank's deposit base eroded by Rs 72,000 crore to Rs 1.37 lakh crore as of March 5, 2020 as against Rs 2.09 lakh crore as of December 31, 2019 according to the data shared by the bank last Friday while announcing the Q3 earnings. HV BEN MKJ

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