Page 17 - Banking Finance July 2021

ROUNDUP

Manappuram Finance Covid-19, an evident dip in demand At an event organized by the Global
was witnessed by companies, it added. Alliance for Mass Entrepreneurship
duped of Rs 30 lakh
This time it was not just demand in (GAME) experts from various fields
Fraudsters duped Manappuram discussed the issues ailing MSMEs and
urban areas that was constrained but
Finance Limited of Rs 30 lakh after the way forward. The panelists
even the rural areas saw a compression
collecting identity details and highlighted that at least Rs 15 lakh
in demand, according to the survey.
passwords of two of its employees crore was stuck in payments to MSMEs
associated with gold loan schemes. each year with payments typically
Banks can't cite crypto
According to police, the conmen made in three to six months in
introduced themselves as executives ban order to warn users: contravention of the MSMED Act.
from the head office and collected RBI They emphasised on the need of on-
details of the account and password time payments particularly during the
The Reserve Bank of India said that
maintained by two employees working ongoing pandemic.
banks cannot refer to its April 2018
in the gold loan branch. "After "These are hard times for MSMEs and
collecting the details, the conmen circular - struck down by the Supreme large corporate houses who work with
transferred Rs 30 lakh into a bank Court in 2020 -- to caution customers these firms can help in several ways.
account towards a gold loan. However, about trading in cryptocurrency, a One of them can be supporting invoice
the company officials found that as move that was hailed by the nascent discounting on TReDS. This allows them
against practice, gold was not industry. to retain flexibility with their cash flow
deposited in the branch but money In recent weeks, several lenders while ensuring immediate liquidity to
was transferred to the account," including HDFC Bank and State Bank of MSMEs," said Brajesh Palsaniya, Head
cybercrime police officials said. India, had officially flagged - Treasury, Raymond in a statement.
After an internal enquiry, the transactions relating to the purchase
management lodged a complaint of cryptocurrency, warning customers LIC Housing Finance to
following which the police have booked of curbs, including permanent closure
a case and are investigating. of accounts. raise over Rs 2,334 crore
from LIC as equity capital
Signs of revival in MSMEs need easy access LIC will infuse equity capital worth

economic activity: Survey to finance for growth post- about Rs 2,334.70 crore in its
With states easing lockdown curbs due pandemic subsidiary LIC Housing Finance by
to declining number of Covid-19 cases, The Micro, Small and Medium picking up an additional stake in the
there are immediate indications of Enterprises (MSMEs) account for 45% company.
improvement in economic activity as of manufacturing output, more than LIC Housing Finance (LIC HFL) will issue
companies are hopeful of better 40% of exports, 28% of GDP. It also shares at Rs 514.25 apiece to its
performance in the next 6 to 12 employs about 111 million people in promoter Life Insurance Corporation of
months, according to a survey. India and is called the backbone of India (LIC) on a preferential basis.
About 60 per cent of 212 companies, Indian economy. The board of directors of the company
which participated in the survey The sector has been riddled with in its meeting last week had approved
conducted by Ficci and Dhruva several challenges in the past but the preferential shares up to 4,54,00,000
Advisors, said there was a high impact Covid led lockdowns has left it in through a private placement to LIC.
on their businesses due to the state- shambles. The second wave of the "The issue price of the equity share of
level lockdowns. pandemic further exposed the face value of Rs 2 each shall be Rs
With different parts of the country vulnerabilities and cracks like never 514.25 apiece, which is the price
under different sets of restrictions and before. Delayed payments, high calculated as per Sebi regulations,
consumer sentiment impacted due to informality and low financial resilience 2018," LIC HFL said in a regulatory filing
the ferocity of the second wave of were exposed through the pandemic. on June 24. T

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