Page 5 - Banking Finance July 2021

BANK UPDATE

Banking

News

Bank of Baroda approves been chief general manager (CGM) in RBI Governor Shaktikanta Das
the stressed assets resolution group introduced the transfer. "To be able to
MCLR revision for various (SARG) of the bank since April 2020. additional improve buyer comfort, and

tenors by 0.05% Prior to his elevation in 2020, he to leverage the 24×7 availability of
Bank of Baroda today said it has worked as general manager in the RTGS, NACH which is at present
slashed the benchmark one-year SARG from 2017. He has worked accessible on financial institution
marginal cost of funds based lending mostly in the corporate banking working days, is proposed to be made
rate (MCLR) by 0.05%. segment in the last two decades. accessible on all days of the week
efficient from August 1, 2021," he
The bank has approved the revision in mentioned.
MCLR with effect from June 12, 2021, Banks' bond investment
NACH is a bulk fee system operated by
the lender said in a regulatory filing. exceeds loans
The MCLR for one-year tenor stands the NPCI and facilitates one-to-many
revised to 7.35%. Record liquidity infusion by the central credit score transfers. Over 40.6 crore
bank in the banking system during the transactions (credit and debits) had
Among others, the six-month and financial year 2020-21 amid sluggish been introduced on the NACH
three-month tenor MCLRs have also economic activity resulted in banks platform.
been slashed by 0.05% each to 7.20% investing more in safe government
and 7.10%, respectively. Amidst the rising adoption of digital
papers than in extending loans, data funds, the transfer is ready to profit
from Reserve Bank of India (RBI) clients. Other than getting salaries and
Padmakumar Nair to be showed. This trend has not been seen
pensions over weekends, clients may
CEO of National Asset in nearly two decades, barring 2016 - also be capable to make funds
the year of demonetisation. reminiscent of EMIs and SIPs over the
Reconstruction Company
According to RBI data, banks invested weekend.
Padmakumar M Nair of State Bank of Rs 7.2 trillion in government bonds
India (SBI) will be the chief executive compared to Rs 5.8 trillion extended as Das said that NACH has emerged a
of National Asset Reconstruction loans in 2020-21. distinguished mode of direct profit
Company (NARCL), a proposed entity switch (DBT) to a lot of beneficiaries
for taking over bad loans of lenders, and has helped switch of presidency
predominantly public sector banks. NACH to be available on subsidies on time.
NARC, also called a 'bad' bank, is all days of the week. At current, it's accessible on days banks
expected to be operational in June From August 1, Nationwide Automated work and auto debit transactions will
2021. Clearing Home (NACH) will be not be processed on holidays.
Nair, a career banker with SBI, has accessible on all days of the week. Vishwas Patel, Chairman, Funds Council

BANKING FINANCE | JULY | 2021 | 5