Page 7 - BF Cover January 2021.cdr

BANK UPDATE

quarter of the current fiscal, over the The board approval is in line with the arrested Cox & Kings (CKL) promoter
corresponding quarter of the previous government sanction to infuse an Ajay Ajit Peter Kerkar in connection
year, after three consecutive quarters amount of Rs 5,500 crore in the bank with the YES Bank money-laundering
of contraction, says Exim Bank. Non-oil towards contribution of the Centre in case. The company, one of the top
exports commodities includes gems the preferential allotment of equity borrowers of the private lender, owes
and jewellery, petroleum products, shares during FY2020-21. Rs 5,500 crore to a clutch of banks and
textiles and apparel. non-banking financial institutions.
The board has cleared agenda to
Total merchandise exports are "offer, issue, create and allot equity The move follows a series of arrests of
expected to continue to moderate to shares up to Rs 5,500 crore including CKG executives, including that of
$77.6 billion in the third quarter of share premium to the Government of erstwhile chief financial officer (CFO)
2020-21, as compared to $79 billion in India by way of preferential issue of Anil Khandelwal and internal auditor
the corresponding quarter of the equity shares", the bank said in a Naresh Jain, in the case.
previous year, on the back of one of regulatory filing. The fund raising will
the steepest and continued help bank meet its regulatory and AU Small Finance Bank
contractions in India's oil exports, growth capital. sells stake in Aavas
witnessed since March 2020.
These forecasts are based on Exim HDFC Bank appoints Financiers for Rs. 530 crore
Bank's Export Leading Index (ELI) Sanmoy Chakrabarti its AU Small Finance Bank Ltd sold 35 lakh
model. The ELI gauges the outlook for shares or 4.46% in mortgage financier
the country's exports on a quarterly Chief Risk Officer Aavas Financiers Ltd for Rs. 530 crore
basis, based on several external and HDFC Bank said it has approved the in an open market transaction.
domestic factors that could impact appointment of Sanmoy Chakrabarti as According to bulk deal data on BSE, AU
exports of the country. the Chief Risk Officer (CRO) for three Small Finance Bank Ltd sold 35 lakh
years. The bank's board of directors shares or 4.46% of Aavas Financiers at
India needs multiple bad cleared the appointment of Rs1,515.16 apiece, aggregating to Rs.

banks: CII Chakrabarti, Head- Risk Management, 530.31 crore.
as the CRO of the bank for a period of
CII said it has urged the government three years, with effect from As per the latest shareholding pattern,
to consider creation of multiple bad December 14. He replaces Jimmy Tata, AU Small Finance Bank Ltd held 4.57%
banks to address the adverse impact of as part of an internal reorganization, in the firm.
non-performing assets (NPAs) according to the regulatory filing. Nomura India Investment Fund
accumulated by public sector banks in Mother Fund, SBI Life Insurance
the recent past, that got further Tata will be the new Chief Credit Company Ltd bought 1.15% and 0.84%
accentuated during the pandemic. Officer of the bank. Chakrabarti is a stake in Aavas Financiers Ltd for Rs.
Master's degree holder from the
The CII in its pre-budget memorandum Indian Statistical Institute. HDFC Bank 136.35 crore and Rs. 99.99 crore
recommended that the government said he has been with the bank for the respectively.
consider enabling Foreign Portfolio last decade in the risk management Aavas Financiers, earlier known as Au
Investors (FPIs) and Alternative department. Housing Finance was sold to private
Investment Funds (AIFs) to purchase equity firms Kedaara Capital and
NPAs. Previously, he has been in-charge of Partners Group by its parent Au Small
market risk, treasury mid-office,
Finance Bank in 2016. Aavas listed on
Punjab & Sind Bank to operational risk management and stock exchanges in 2018.
Basel credit risk functions of the bank.
raise up to Rs. 5,500 cr In August, Partners sold a Rs. 361 crore

Punjab & Sind Bank said its board has Cox & Kings promoter stake in the lender through a block
approved a proposal to raise up to Rs deal. Earlier in February, Kedaara
5,500 crore by issuing shares on a held in YES Bank case Capital had sold part of its Aavas stake
preferential basis. The Enforcement Directorate (ED) for Rs. 666 crore. T

BANKING FINANCE | JANUARY | 2021 | 7