The Reserve Bank of India (RBI) cut its policy rate for the fourth consecutive policy review on August 7, nudging banks to pass on the benefit to borrowers.
A number of lenders cut their marginal cost-based lending rates (MCLR) by 10-25 basis points across tenors.
In order to make monetary transmission smoother, some lenders said they may link their consumer loan portfolios to RBI’s policy rate going ahead.
Meanwhile, Dewan Housing Finance Corporation (DHFL) said that it had submitted the resolution plan to lenders this week. The plan proposes moratorium on repayments and seeking additional funding to restart its retail business.
DHFL says won’t be able to meet immediate payments, submits resolution plan to lenders
DHFL, which is currently facing liquidity crisis, has notified exchanges that it has submitted a draft resolution plan to creditors and will not be able to meet immediate payment obligations.
RBI has done its part, need structural reforms to support growth: Governor Shaktikanta Das
RBI has done its part to support the country’s dwindling economic growth but there is room left for structural reforms by the government, Governor Shaktikanta Das said on August 7 after delivering the fourth consecutive rate cut.
Bank of India cuts MCLR by 25 basis points from August 10
State-run lender Bank of India said it will cut its one-year marginal cost-based lending rate (MCLR) by 25 basis points to 8.35 percent from August 10.
Union Bank of India also said it expects MCLR to ease by 15 basis points going ahead. The bank reduced its MCLR by up to 20 basis points earlier in August. Its one-year MCLR stands at 8.5 percent.
IIFL Finance to raise up to Rs 1,000 crore via bonds, issue opened on August 6
IIFL Finance plans to raise Rs 1,000 crore by sale of non-convertible debentures (NCDs) with a yield as high as 10.5 percent.
Sumit Bali, CEO, IIFL Finance said the company is confident of raising funds from retail participants in the backdrop of unavailability of institutional investors.
RBI slaps fines on 11 banks for delay in reporting fraud
The central bank penalised 11 commercial banks, including the State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda for delay in reporting fraud in an account despite receiving regulatory instructions to do so. PNB and Oriental Bank of Commerce, in an exchange filing on August 3, said the penalty was relating to the account of Kingfisher Airlines.