Covid-19 relief package: FM announces Rs 1.7 trn plan for poor and migrants

Package announced includes both food security and cash transfer components

Finance Minister Nirmala Sitharaman today announced a relief package for the poor and migrants in the country in light of the 21-day lockdown in the country to tackle the challenge posed by the coronavirus (Covid-19) pandemic. The Prime Minister Gareeb Kalyan scheme worth Rs 1.7 trillion will have two parts — cash transfer and food security, said the Finance Minister. Covid-19 package to take care of the welfare concerns of the poor and migrant workers who have been suffering because of a nationwide lockdown

The FM also announced a medical insurance scheme for health workers. This Rs 50 lakh per individual insurance plan would be applicable to all health workers that includes sanitation and ASHA workers, paramedics, doctors, nurses. Two million health workers will benefit from this scheme, informed the minister.

The PM Gareeb Kalyan Scheme will have two components

1. The Pradhan Mantri Gareeb Kalyan Anna Yojana:

Under this plan, 800 million poor people in the country will get 5 kg of rice or wheat per month free of cost, in addition to the 5 kg they already get. In addition to rice or wheat, each household will get 1 kg of preferred dal for free for the next three months.

2. Cash transfer scheme:

• Farmers will get the first instalment of the PM-KISAN payment of Rs 2,000 soon. This move will benefit 87 million farmers across the country.
• MGNREGS: Wage increased from Rs 182 to Rs 202 per day. This wage increase will benefit 50 million families, as their income will increase by nearly Rs 2,000
• Poor widows, aged, and divyang: Ex-gratia transfer of Rs 1,000 for the next three months, in two instalments. 30 million people will benefit and the transfers will be done through direct benefits transfer (DBT)
• Women with Jan Dhan Yojana accounts: 200 million such account holders will benefit from Rs 500 ex-gratia for the next three months.

YES Bank fiasco: RBI asks states not to withdraw funds from private banks

‘We strongly believe that such a move can have banking and financial sector stability implications,’ the letter stated

The Reserve Bank of India (RBI) on Thursday urged the chief secretaries of all states to not withdraw deposits from private sector banks for the sake of financial sector stability, and assured them of the safety of these funds. The government of Maharashtra recently closed one account with Axis Bank, and decided to transfer funds from the private sector to public sector banks. The state government also advised its various departments to not put funds with private sector banks in view of the YES Bank fiasco. A few other state governments are also contemplating similar actions.

“We strongly believe that such a move can have banking and financial sector stability implications,” the letter, signed by RBI Deputy Governor N S Vishwanathan, stated. “We would like to point out that the Reserve Bank has adequate powers to regulate and supervise private sector banks, and by using these powers, it has ensured that the depositors’ money is entirely safe,” Vishwanathan said. Business Standard has reviewed a copy of the letter. The apprehension about the safety of deposits is “highly misplaced” and such a “reactive decision” will not be in the interests of the stability of the financial system in general and the banking system in particular, he said.

The resolution of weak private sector banks in the past has been done in a manner that the “depositors are not put to loss”. In the case of YES Bank too, after the imposition of a moratorium, the RBI drew up a draft scheme “without any delay”, the deputy governor wrote, adding that the central bank was making “every effort to expedite the finalisation of the scheme”.

RBI wants urban cooperative banks to focus mainly on priority sector

UCBs’ objective for need part loaning has been proposed at 75 percent of their credit from 40 percent now

The Reserve Bank of India (RBI) on Monday suggested that the single and gathering borrower breaking points of urban helpful banks (UCBs) ought to be cut down and a large portion of the advances given ought not be of more than Rs 25 lakh, while the need area loaning targets ought to be raised steeply.

UCBs’ objective for need division loaning has been proposed at 75 percent of their credit from 40 percent now. The objective must be come to in stages — 50 percent by March 2021, 60 percent by March 2022, and 75 percent by March 2023.

The RBI suggested that the single and gathering borrower points of confinement ought to be 10 percent and 25 percent, individually, of a bank’s level 1 capital. At present, UCBs are permitted to have exposures of up to 15 percent and 40 percent of their capital assets to a solitary borrower and a gathering of borrowers, individually.

Urban helpful investors said the draft standards were like those endorsed for little money banks (SFBs). These standards, on the off chance that they become rules, will hamper the development of cooperatives, they said. The move is by all accounts to push UCBs to become SFBs, they said…

IndusInd Bank Q1 up by 24% at Rs 10.36 billion, asset quality falls

CASA (Current Accounts-Savings Accounts) Ratio improved to 43.42 per cent against 37.78 per cent in June 30, 2017

 

Private sector IndusInd Bank on Tuesday posted a 23.8 per cent rise in its net profit at Rs 10.35 billion for the quarter ended June 2018 on higher income mainly from interest. This was against a net profit of Rs 8.36 billion in the corresponding period of previous year.

Total income during the quarter rose to Rs 63.69 billion, up by 20 per cent as against Rs 53 billion in the same quarter of last year.

Net interest income was Rs 21.2 billion in June quarter, up by 20 per cent from Rs 17.74 billion earned in the same period a year ago.

Net interest margin fell to 3.92 per cent in June, from 3.97 in previous March quarter. The bank has a NIM outlook of 3.9 – 4 per cent for the year.

Other income rose to Rs 13 billion for the quarter under review, from Rs 11.67 billion in the corresponding period a year ago.

IndusInd bank share price

However, there was a slight deterioration in bank’s asset quality with the gross non-performing assets(NPA), as a per cent of the gross advances, standing at 1.15 per cent as on June 2018, as against 1.09 per cent a year earlier. However, it was an improvement over the previous quarter’s gross NPA ratio of 1.17.

CASA (Current Accounts-Savings Accounts) Ratio improved to 43.42 per cent against 37.78 per cent in June 30, 2017.

Total Advances as on June 2018 grew 29 per cent to Rs. 1.506 trillion while total deposits grew by 19 per cent to Rs 1.588 trillion over year-ago quarter.

The bank has no plans to raise capital in the near future and placed a timeline of three months for merger with Bharat Financial.

Article Source : BS

Artificial intelligence: How robots replaced seven employees at Swiss Bank

Technologies and artificial intelligence have the potential to revolutionize the financial sector

 

Have seven employees work for three days or use software robots instead? In a pilot project, St. Galler Kantonalbank AG opted for the second option. The bank is so satisfied with the test results that it wants to decide on further assignments by the end of May.

"We’ve seen that’s technically feasible and now we’re exploring whether other applications are worthwhile, and I’m very optimistic about that", Felix Buschor, member of the management board, said in an interview with Bloomberg. "The assessment of the potential is in full swing."

Buschor admits that the use of robots is causing some employees to worry about their jobs. "However, as we have always compensated efficiency gains through natural fluctuation and because we paid close attention to enabling our employees to develop new technologies, the acceptance is high," he said.

Robots replace expensive interfaces

St. Galler Kantonalbank is not the only bank currently examining the use of new technologies, Christian Voigt, managing director of Nuremberg-based IT consultant Roboyo GmbH, said. He helped the Swiss bank with its test run. "In the financial sector, the automation of processes is currently a huge topic, and we work with banks, insurers and leasing companies," Voigt said.

He attributes the banks’ strong interest to time savings and cost reductions. For example, thanks to the use of robots, it is possible to forgo costly and expensive software interfaces for the communication between two systems, he said. "Sometimes, seven-digit amounts of money are needed for such an interface."

SGKB’s test run, which also skipped such an interface, was carried out in connection with the acquisition of M.M. Warburg Bank Schweiz AG’s private banking business. SGKB had to transfer about 5,000 securities positions to its own IT systems. The five robots that were used did their job well, the bank said.

Use in compliance seen

Buschor puts the costs for the first use of the software robots at 20,000 Swiss francs to 30,000 Swiss francs, for example for hardware and external consulting services. Should the bank opt for further uses, the financial costs would accordingly be spread over several projects.

A study by GFT Technologies SE carried out at the end of 2017 showed that technologies and artificial intelligence have the potential to revolutionize the financial sector. The survey involved 285 professionals from small to large retail banks in eight countries, including Germany, who were interviewed. Around 94 percent of all participants of major banking institutions saw direct added value in artificial intelligence solutions.

Buschor can imagine a variety of uses for software robots. "I’m thinking of internal control processes or compliance," he says. But there are also limits to their use, for example when it comes to advising customers, he added.

Article Source: Business Standard