Page 5 - BF Cover February 2019

BANK UPDATE

BANKING

NEWS
NEWS
NEWS
NEWS
NEWS

IDFC Bank re-named Yes Bank appoints Brahm Dutt as non-executive part-

IDFC First Bank time chairman
Yes Bank, said it has appointed Brahm Dutt as non-executive part-time chair-
IDFC Bank name has been changed
man to the board. In a statement, Yes Bank said, "Vide
to IDFC First Bank Ltd. "...the name
its letter dated January 11, 2019, the Reserve Bank of
of the Bank has been changed from India, pursuant to the provisions of the Banking Regula-
IDFC Bank Ltd to 'IDFC First Bank tion Act, 1949...has approved his (Dutt's) appointment
Limited' with effect from January 12, as part-time chairman of Yes Bank's board up till July 4,
2019 by vir- 2020 as Mr Dutt attains the age of 70 years." Dutt has
tue of 'Cer- been on the board of the bank since July 2013 as an independent director, and
tificate of In- has contributed to almost all the sub-committees of the board over the past 5.5
corporation years, Yes Bank said in a regulatory filing. He is currently also the Chair of the
pursuant to Nomination and Remuneration Committee. During his career in the IAS for 37
years, he held several posts in Karnataka government as well as in the Central
change of
Government.
name' issued
Speed up 59-minute loan sanction, government to PSU
by the Registrar of Companies,
Chennai," it said in a BSE filing. banks
IDFC Bank and non-banking financial The finance ministry is pushing PSU banks to bridge the gap between proposals
company Capital First had an- that receive preliminary approval and final sanction. Govt had earlier promised
59-minute scheme for micro, small and medium enterprises (MSMEs) for loan
nounced completion of their merger
sanction. Since its formal launch by PM a little over two months ago, around
on December 18, creating a com-
60% of the preliminary approvals done online have been
bined loan asset book of Rs 1.03 lakh
converted into formal sanctions, with the total loan
crore for the merged entity.
amount adding up to over Rs 24,000 crore, said sources.
Following the merger, the board of This has raised questions over the effectiveness of the
IDFC Bank had approved the ap- scheme, where loans up to Rs 1 crore are available to
pointment of V Vaidyanathan, MSMEs that have a credit history, pay income tax and are
founder and chairman of Capital part of the network.
First Ltd, as managing director and The quick loan-sanction scheme was part of the government's outreach to the
chief executive officer of the merged sector, which was complaining about liquidity shortage due to RBI's policies and
entity. adverse impact of demonetisation and GST on a segment that is a significant
contributor to GDP, jobs and exports.

BANKING FINANCE | FEBRUARY | 2019 | 5