Page 6 - BF Cover January 2021.cdr

BANK UPDATE

YES Bank aims to double The LOC has been extended on behalf even flouting of insider trading norms
of the Indian government, Exim Bank by certain entities close to the
credit card customers said in a statement. erstwhile management of LVB.
Yes Bank is aiming to double its
With the signing of this LOC
customer base in the segment in the agreement, Exim Bank has now in IT integration of Union
next two years, the Head of its Credit
place 266 LOCs, covering 62 countries Bank and Corporation
Card Business Rajanish Prabhu has said.
in Africa, Asia, Latin America,
Also, the bank is targeting a four-fold Commonwealth of Independent States Bank completed
rise in its book value over the next two and the Oceania, with credit Union Bank of India, said the
years. commitments of around $26.59 billion, Information Technology integration of
available for financing exports from the erstwhile Corporation Bank with
"Overall credit card spends (of the
industry) are back to pre-Covid levels. India, it added. the former has been completed.
Some banks say 80-90%, for some it is The LOC of $448 million to Uzbekistan "With IT Integration, all branches of
90%, my gut feeling is that most of this has been extended for financing erstwhile Corporation Bank (including
is back to normal. Some of the sectors various projects in the roads and service branches and specialised
are still slow, especially when it comes transport, water and technology and branches) have been fully integrated
to tour and travel, where there is a communication sectors in Uzbekistan. with Union Bank of India," UBI said in
recovery of about 25-30%," Rajanish a statement.
Prabhu, Head - Credit Cards and DBS Bank India gets Rs. This integration comes in the wake of
Merchant Acquisition,Yes Bank told in 2,500 cr capital support the amalgamation of Corporation
an interview. Bank and Andhra Bank with UBI with
for LVB merger effect from April 1.

Indian Banks may get Rs. DBS Bank India Limited said it has
received capital infusion of Rs. 2,500 Kotak Bank told to not pay
12 trillion hit from Covid:
crore from DBS Bank Limited,
Mckinsey Singapore to support its amalgamation dividend on PNCPs
Global strategy consultancy firm with Lakshmi Vilas Bank (LVB).The RBI has restricted private sector
McKinsey has estimated that banks in scheme of amalgamation came into lender Kotak Mahindra Bank from
India could face a potential hit of Rs 12 effect on November 27, 2020. DBS paying dividend on perpetual non-
trillion till 2024 from the fallout of the Bank India said it is well-capitalized, cumulative preference shares (PNCPs).
and its capital adequacy ratios (CAR)
Covid-19 pandemic - with revenue The banking regulator had earlier this
foregone estimated at Rs 5.5 trillion remains above regulatory week advised banks not to make any
and loan loss provisions about Rs 6.7 requirements after the amalgamation. dividend payment from the profits
trillion. The crisis of 2008 came from pertaining to the financial year ended
within the financial services industry, LVB under SEBI scanner for March 31, 2020 (FY20).
but the current one has affected the 'insider trading' The restriction on dividend distribution
real economy and banks are Sebi is examining Lakshmi Vilas Bank also applies to PNCPs, the RBI informed
economically afflicted alongside other (LVB) for possible violation of disclosure the bank in a communication.
sectors. norms, including insider trading rules,
amid the controversy over the lender's India Exim Bank forecasts
Exim Bank provides $448 takeover by DBS Bank India.
m to Uzbekistan According to sources, the markets non-oil exports at $68.3 b
Export-Import Bank of India said it has regulator is scrutinising the in Q3
extended a $448-million line of credit surveillance report submitted by one India's non-oil exports are expected to
(LOC) for various infrastructure of the stock exchanges, which rise marginally by 0.3 per cent to $68.3
projects in Uzbekistan. suspected unfair trade practices and billion during October-December

6 | 2021 | JANUARY | BANKING FINANCE