Page 8 - Banking Finance August 2024

BANK UPDATE

Three managing directors (MDS) of the Outlook, the agency said the forecast NRI deposits see $3 billion
SBI -- C.S. Setty, Ashwini Kumar Tewari for growth in emerging markets and
and Vinay M. Tonse - appeared for the developing economies is revised up- inflows in April-May FY25,
Chairman's interview. Alok Kumar ward; the projected increase is pow- shows RBI data
Choudhary, senior most MD of SBI, is ered by stronger activity in Asia, par- Overseas Indians deposited close to $3
retiring on June 30. Unlike other PSU ticularly China and India. billion in non-resident Indian (NRI) de-
banks, SBI Chairman is selected from
SEBI plans to introduce a new asset posit schemes in April-May FY25, which
one of its MDS. is over four times higher than the
class to bridge mutual funds and port-
The final decision on the appointment of folio management services (PMS). amount deposited in these schemes in
the SBI Chairman will be made by the This will be offered under the MF struc- the same period last year, data released
Appointments Committee of the Cabinet ture with new branding and relax- by the Reserve Bank of India (RBI).
(ACC) headed by the Prime Minister. ations to existing MF norms. The mini- In April-May FY25, inflows into the NRI
mum ticket size is proposed to be Rs. schemes stood at $2.72 billion, com-
Exim Bank in pact with 10 lakh, 20 per cent of PMS schemes pared to $623 million during the same

Guyana for $2.4m credit and 10 per cent of alternative invest- period a year ago. With this, the total
ment products. outstanding NRI deposits as of May
line stood at $154.72 billion. In May alone,
This threshold will deter retail investors
The Export Import Bank of India has from investing in the product while inflows into various NRI schemes stood
entered into an agreement with the attracting investors with investible at $1.7 billion compared to $1.07 bil-
government of Guyana to provide a line funds of Rs. 10-50 lakh, who are now lion in April, according to the data.
of credit worth $2.5 million for the in- drawn to unregistered portfolio man- The NRI deposit schemes include for-
stallation of a solar photovoltaic power agement service providers, the regu- eign currency non-resident (FCNR) de-
plant, the Reserve Bank of India said. posits, non-resident external (NRE)
lator said in a consultation paper.
Under the Line of Credit, the last date deposits, and non-resident ordinary
(NRO) deposits.
for disbursements will be 48 months Yes Bank Q1 net profit
after the completion of the project,
the RBI said. The solar photovoltaic surges 46.7% Rs. 1,392 crore bank fraud
power plant will be set up at the Yes Bank reported a 46.7 per cent The Enforcement Directorate (ED)
Cheddi Jagan International Airport. growth in net profit to Rs 502 crore for raided the premises of Haryana Congress
the June 2024 quarter, helped by a MLA Rao Dan Singh and his family as well
Of the total credit provided by Exim
reduction in provisions. The city-head- as a metal fabricating company and its
Bank, goods, works and services worth
at least 75% of the contract price will quartered bank's core net interest in- promoters as part of its money launder-
come rose 12.2 per cent to Rs 2,000 ing probe linked to an alleged Rs.
be supplied by the seller from India and
the remaining 25% may be procured by crore. Its net interest margin stayed 1,392crore bank loan fraud case.
the seller from outside India for the flat at 2.4 per cent. The ED teams raided Singh's residence,
eligible contract, the RBI said. The deposits, on which a good part of his farmhouse and the premises of a
the system is struggling, were up by metal fabricating company Allied Strips
IMF raises India's FY25 over 20 per cent. Limited (ASL) and its promoters,
Mohinder Agrawal and Gaurav
growth by 20 bps at 7% The other income line grew 5.1 per cent Agrawal, among others. About 15 loca-
to Rs 1,141 crore during the quarter.
The International Monetary Fund has tions in Mahendragarh, Bahadurgarh,
raised the country's growth forecast Its overall provisions declined 41.2 per Rewari, Gurugram, Delhi and
for the current year by 20 bps to 7 per cent to Rs 212 crore, and a senior offi- Jamshedpur were searched by the ED
cent. This is higher than the World cial credited the same to the recover- teams. In its probe, the ED has found
Bank's projection but lower than the ies on bad assets, which were trans- that Rao Dan Singh's family and com-
RBI's estimate. In its latest update of ferred to JC Flowers Asset Reconstruc- panies took loan from the ASL that was
the World Economic tion Company. eventually written off, sources said.

8 | 2024 | AUGUST | BANKING FINANCE