CATEGORIES

Impact Of Covid 19 On Indian Economy And The Way Forward

There is a high likelihood, we are months away from a semblance of normalcy owing to the mutating virus, that has been bringing wave upon wave of attacks, each deadlier than the other.

THE NOISE ABOUT THE NON-PERFORMING ASSETS - A LARGER PERSPECTIVE

7 mins |

MARKETING IS ONE OF THE MAJOR FUNCTION TO SUCCEED IN BANKING

Satisfaction of the customer's needs is the prerequisite for the existence of the bank. The essence of marketing is about understanding, creating and retaining customers .

RBI CIRCULAR

INTEREST SUBVENTION SCHEME TO RBI SUPERVISORY ACTION FRAMEWORK AND PERFORMANCE OF COOPERATIVE BANKS

Abstract: The recent mega fraud of Punjab and Maharastra Bank has shaken the confidence in Urban Cooperative Banks (UCBs). For revival of these banks, constant monitoring of financial health of these banks by the RBI is a must for which Supervisory Action Framework (SAF) is an effective tool. Under SAF, monitoring of the financial health of UCBs is done through three trigger points namely, CRAR, Asset Quality and Profitability. This SAF is in existence since 2012. The present article studies of financial performance of UCBs since the introduction of SAF which reveals several concerns. While SAF seems to be an effective supervisory tool of the RBI, its benefits are yet to be derived. For this purpose, it calls for more seriousness on the part UCBs to improve their overall financial performance by ensuring the participation bank staff at all level.

CIBIL REPORT A TOOL FOR EXERCISING PROPER DUE DILIGENCE

It is the main business of Banks to lend the public money to earn profits. Borrowers who borrowed money from Banks may forget to repay the loan in time due to various reasons.

6 mins |

Let's Understand MSMEs Under New Rule

Till 25th May 2020, the classification of MSMEs was done based on investment in plant & machinery/equipment in accordance with the provision of Section 7 of MSMED Act, 2006, but on 26th of May 2020 while delivering the part of Atma Nirbhar Bharat Package, our Finance Minister Smt. Nirmala Sitharaman brought up a change in the definition of MSMEs by announcing the amendments in the section 7 of MSMED Act, 2006.

2 mins |

Marketing Strategies For MSME Business By Banks

Importance of MSME Sector The Micro, Small and Medium Enterprise sector is crucial to India's economy. Micro, Small and Medium Enterprises (MSMEs) are amongst the strongest drivers of economic development, innovation and employment. The MSME sector also contributes in a significant way to the growth of the Indian economy with a vast network of about 63.38 million enterprises. The sector contributes about 45% to manufacturing output, more than 40% of exports, contributing 29 % of the GDP while creating employment for about 111 million people and manufacture around 8,000 quality products for the Indian as well as International markets, which in terms of volume stands next to agricultural sector.

Agriculture Value Chain Financing

(A booster for priority sector lending)

INTEREST SUBVENTION SCHEME TO FORMALIZE MSMES AND FACILITATE GROWTH

Introduction: Micro, Small and Medium Enterprises (MSMEs) plays an important role in Indian economy, it accounts 45% of manufacturing output of country. In terms of employment generation, it accounts next to agriculture sector, contributing 8% to GDP. This sector is the backbone of India's economy and is considered the 'cradle' of 'Make in India' initiative.

5 mins |

INTEREST RATES IN BANKS AND ITS ROLE IN ECONOMY

Abstract This artefact discuss briefly about how the different interest rates offered by banks to different customers such as a housing loan borrower or a pensioner or a small businessman. What are the factors that are driving force to define these rates? The phenomenon of coupon rate and yield to maturity in bond market is also inscribed briefly. I have also illustrated How these interest rates are being used as an instrument to control inflation, recession and deflation in the economy. At the end I have scripted about recent rate cuts by Reserve Bank of India to upturn the down sliding economy due to Covid-19 pandemic and its effectiveness.

10 mins |

CIBIL MSME RANK - AN ADDITIONAL DUE DILIGENCE TOOL

CIBIL MSME Rank is a tool to Access the Credit Risk ranking of Micro, Small and Medium Enterprises to make informed lending decisions, CMR is a credit risk for MSMEs that predicts the probability of an MSME becoming NPA in the next 12 months. It helps us to understand the credit behaviour of MSME as well as the probability of default based on the rank. It is applicable to MSMEs with aggregate commercial borrowing between Rs 10 lakhs to Rs 10 Crores.CMR provides a rank to the MSME based on its credit history data on a scale of 1 to 10.CMR 1 being the best possible rank for the least risky MSMEs and CMR 10 being the riskiest rank for MSMEs.The lower the CMR, the lower the Risk of NPA associated with the MSME.

3 mins |

INDUSTRY NEWS

FM launches new facility for issue of PAN in just 10 minutes

RBI CIRCULAR

Extension of timeline for finalization of audited accounts

6 mins |

RESERVE BANK NEWS

Banks to raise Rs 1,50,000 crore in next 18 months

BANKING NEWS

Indian banks boost holdings of corporate notes

9 mins |

Corona Would Go; We Won't

"Tough times don't last, tough people do"

HOW TO DEAL WITH NEW CHALLENGES IN BANKING : MERGERS AND CORONA-VIRUS

New dawn from 1st April with full of challenges are sure to bring structural benefits and allow these robust entities to become flag bearers for Indian economy and padded up customers. Foremost, it would be ideal if along with good customer service focus is placed on creating goodwill too. Taking preventive measures by branches by providing masks and liquid soap sachets across customers touchpoints and service facility tables to safeguard health and safety in light of coronavirus outbreak would go a long way in reconnecting new customers of merged banks.

NEGATIVE INTEREST RATES IN INDIA - A REVIVAL GAME?

The Buildup… The ongoing mayhem and panic created by coronavirus around the globe is well exhibited. Economies and businesses are shrinking by the day on account of lockdowns and retrenchment and people are waking up to uncertainty but with a hope to see light at the end of the tunnel.

7 mins |

ROLE OF TECHNOLOGY AND INNOVATIONS AMIDST COVID - 19

As it is rightly said The show must go on, it is the beauty of human life that we can't stop living, just by surrendering to the irony of the nature. With Corona outbreak becoming devastative and uncontrollable threat for human life across the globe, Innovation, whether it may be technological alongside of inventing medicine or maybe strategic to fight and get rid of COVID 19, is need of the hour and mother earth. Technology is playing a significant role in strengthening world's back in one or the other facets of human life and is helping the world to move ahead. Let us first see few innovations round the globe amidst COVID 19 outbreak.

COVID-19 OUTBREAK: HOW TO MANAGE FINANCIAL SERVICES DURING THIS CRISIS

Introduction As coronavirus has hit hard the entire nation, Prime Minister Shri. Narendra Modi has imposed a nationwide lockdown in an attempt to slow the spread of the coronavirus.

9 mins |

BANKING INDUSTRY-CURRENT SCENARIO & THE NEXT DECADE-WAY FORWARD

In the run-up to the 21st-century digitization, Banking industry is transforming to a different paradigm which is sea different what we have witnessed so far in the last five decades since it's nationalization in 1969. Today's banking scenario and yesterday's banking sector, the paramount difference is obvious DIGI -BANKING.

10 mins |

Will India Be Able To Combat Corona Wave?

All of us are aware by now the havoc that has been caused by COVID-19 all over the world, especially in Europe and USA. “The worst economic crisis since 2008”, “The FTSE sees its biggest hit since 1987”- intimidating isn’t it? It’s because saying “It’s a setback” and “We will recover” doesn’t gain the media hits that publicising fear does. We recovered from outbreaks ranging from the SARS epidemic to the Spanish flu, the greatest pandemic in modern history. Influenza hit the economy at a time when financial institutions weren’t half as robust as they are today, and even weaker due to World War 1 and the economic catastrophe it caused. But we came through, didn’t we? Expert speculation relies on empirical evidence to the extent that logic and faith is undermined, and it is why such speculation is not a perfectly reliable measure to predict markets and their movement. Hence, in these uncertain times, Lakewater feels optimism is the only tool at our disposal, and it would be rather wise to use it.

Impact Of Covid-19 Pandemic And Amalgamation In Indian Banks

The coronavirus (COVID-19) outbreak is causing widespread concern and economic hardship for consumers, businesses and communities across the globe including the banking industry as a whole.

8 mins |

IT IN BANKS & FRAUD RISK MANAGEMENT

In today's scenario, technological infrastructure has become an inevitable part of the reforms process in the banking system. With the advent of technology, many security concerns have also crept in. These loopholes in security lead to the occurrence of cyber crimes which not only gives financial setback to the bank or its customers but also pose a threat to the reputation of banking system in India. Every bank should have standards to deal with the risk of frauds occurring on account of technological advancements. This article gives a fair understanding of the role of technology in banks, various techniques of committing cyber frauds and suggestions for banks to prevent or manage the risk of frauds due to technology.

INDUSTRY NEWS

The Reserve Bank of India has allowed companies to opt for a three-month moratorium on loan repayments to combat lockdown, data with individual banks suggests that not many firms have chosen to defer routine interest payments for now.

5 mins |