Page 15 - Banking Finance June 2020

ROUNDUP

ability of proper equipment among aimed at de-clogging courts and pro- Mahindra Bank, assumed office as
others. moting ease of doing business and ease president of the Confederation of In-
These are among a slew of measures of living. dian Industry for the year 2020-21.
the government and regulatory bodies The effort has been led by the cabinet Mr. Kotak takes over from Vikram
have taken to provide relief to the secretary and aims to substitute crimi- Kirloskar, chairman and MD of
business fraternity and market partici- nal liability with stiff compoundable Kirloskar Systems and vice-chairman of
pants in the wake of the pandemic. monetary penalties of a civil nature Toyota Kirloskar Motor. The industry
that can act as deterrents and help body said T.V. Narendran, CEO & MD
No new scheme for a year boost investor sentiment. of Tata Steel Ltd., is now its president
designate for the current financial
as Centre tightens purse
Corporates may incur a year. Additionally, Sanjiv Bajaj, chair-
strings revenue loss of $5 tn man and MD of Bajaj Finserv Ltd., has
The Union finance ministry has put the taken over as the vice-president of CII.
brakes on the implementation of new Corporates worldwide are expected to
schemes other than those announced incur a revenue loss of more than $5 SBI creates new vertical to
trillion in 2020, compared to the $26
in the Rs 20-trillion package to revive serve agri sector and
trillion of revenue reported in 2019,
the economy and help vulnerable sec- MSMEs
tions amid the Covid-19 crisis. according to Fitch Ratings.
This comes even as corporates battle State Bank of India has created a sepa-
New schemes, up to Rs 500 crore,
challenges with economies starting to rate Financial Inclusion & Micro Mar-
which have already been appraised by
reopen after prolonged lockdowns ket (FI&MM) vertical to offer loans
the departments and ministries, would predominantly for agriculture/allied
also be suspended in the current finan- aimed at curbing the spread of covid-
19. activities and micro/small enterprises.
cial year.
The revenue losses may extend to SBI, in a statement, said about 8,000
These schemes would also include branches in rural and semiurban areas
those which have been given in-prin- more than $8.5 trillion by end-2021, have been identified for provision of
ciple approval. the rating agency said. "This estimate
only covers our corporate-rated port- specialised services to the micro seg-
The financial advisors of the depart- folio, which in turn represents $14 tril- ment, including micro credit for small
ments have been asked to send a list lion of the estimated $74 trillion cor- businesses and farmers.
of these schemes to the department of porate debt globally," it said. The thrust is also to improve service
expenditure under the finance ministry quality and availability of banking ser-
by June 30. The oil and gas sector is expected to
have the biggest share of revenue vices through the bank's vast network
No funds would be released for these losses in dollar terms, representing of more than 63,000 Customer Service
schemes. These are small schemes in 40% of the aggregate decline. "The Points in rural, semiurban, urban and
value. For instance, none of the 20 critical and expensive nature of oil and metro areas, it added.
schemes listed in the annexure of the gas extraction means that this sector The new vertical, which will be headed
Budget speech for 2020-21 comes un- dominates our lost-revenue projec- by Sanjeev Nautiyal, Deputy Managing
der this. tions, accounting for $1.8 trillion of lost Director, will provide a boost to the
revenue globally in 2020. This is six microfinance sector.
Govt moves to times greater than the impact on the

decriminalise minor of- more visibly affected retail sector," it Rajnish Kumar, Chairman, SBI, said:
"The key elements of creating the
said.
fences to woo investors FI&MM vertical are to bring sharper
The government has shortlisted 128 Uday Kotak takes over as focus to different business lines and
provisions across 28 Acts covering vari- improve the quality of interaction with
ous ministries and departments to CII president customers at the branch."
decriminalise minor offences, a move Uday Kotak, MD & CEO, Kotak "This is a key initiative by SBI to cater

BANKING FINANCE | JUNE | 2020 | 15