Page 7 - Banking Finance September 2018

BANK UPDATE

BANKING

NEWS
NEWS
NEWS
NEWS
NEWS

Banks in China record Punjab National Bank reports net loss of Rs.9.4 billion
huge losses in Quarter 1
PNB reported a net loss of Rs 9.4 billion in the first quarter (April to June, or Q1)
The banks in China recorded huge
b a d of the current financial year. This was the second con-
secutive quarter in the red for the bank, reeling from a
loans in
Rs 143-billion letters of undertaking fraud. In the year-
compari-
ago period, PNB had reported a net profit of Rs 3.4 bil-
son to
the last lion, and a net loss of Rs 134 billion in the last quarter
quarter, (January-March) of the previous financial year (2017-18).
The recent frauds in banks is the prime reason for losses suffered by the bank.
potentially adding pressure on regu-
lators to further ease their de-lever- Exim Bank signs multilateral cooperation agreement
aging campaign as the trade war
intensifies. Non-performing loans with BRICS banks
rose 183 billion yuan ($26.6 billion) to Exim Bank of India has signed a MoU with member development banks of BRICS
hit 1.96 trillion yuan by the end of to undertake "collaborative research" in distributed
June, the biggest quarterly increase ledger/blockchain technology. The MoU - signed by
in data going back more than a de- Exim Bank Managing Director David Rasquinha -
cade, the China Banking and Insur- was an outcome of the discussions the member de-
ance Regulatory Commission said in velopment banks had during their annual meeting,
a statement. with the objective of strengthening the cooperation
Bad loans represented 1.86% of to- under the BRICS Interbank Cooperation Mechanism.
tal advances, the highest ratio since The BRICS grouping comprises Brazil, Russia, India, China and South Africa.
March 2009. China's two-year crack- Under this umbrella agreement, the signatories have agreed to constitute a
down on its shadow- banking sector joint research working group which will formulate the research agenda and
has made it harder for weaker bor- targeted outcome.
rowers to refinance debt. However,
regulators have started tapping the Central Govt extends term for 2 PSU banks Chairman
brakes on the deleveraging cam- The Union government gave two-years extension to non-executive chairman of
paign over recent weeks as the $12 two public sector banks. Canara Bank Chairman T N Manoharan and Bank of
trillion economy slows and US Presi- India Chairman G Padmanabhan were given two-years extension each. The
dent Donald Trump threatens to slap extended term comes into effect from tomorrow, notification said. They were
more tariffs on Chinese goods. appointed chairman in August 2014 for a term of three years.

BANKING FINANCE | SEPTEMBER | 2018 | 7