As we enter the final weeks of December, the financial landscape continues to shift and evolve. Here are some of the top headlines dominating the banking sector today:
1. Indian Banks Agree to 17% Salary Hike: After weeks of negotiations, the Indian Banks’ Association (IBA) and bank employee unions have finally reached a consensus on a 17% wage hike for all public sector bank employees. The revision will be effective from November 2022, with arrears for the previous 12 months. This move is expected to benefit around nine lakh employees and boost morale within the public banking sector.
2. RBI Deputy Governor Raises Concerns About Consumption Loans: RBI Deputy Governor, T. Rabi Sankar, has expressed concerns about the rising levels of consumption loans in India. He has urged lenders to “curtail” such loans to maintain financial stability and prevent potential risks in the future. This comes amidst a backdrop of increasing household debt and concerns about the impact of rising interest rates on loan affordability.
3. RBI Cracks Down on Connected Lending: Recognizing the potential risks of connected lending, the Reserve Bank of India (RBI) has announced new regulations to bring entities facilitating such transactions under its direct supervision. This move aims to increase transparency and accountability in the lending process and prevent potential abuses of the system.
4. SRG Housing Finance Aims for Growth: SRG Housing Finance, a leading housing finance company in India, has set an ambitious target of reaching Rs 750 crore in assets under management (AUM) by the next fiscal year. This represents a significant increase from their current AUM of Rs 550 crore. The company is confident that its focus on affordable housing and digital initiatives will drive its growth trajectory.
5. NARCL Acquires Two SREI Companies: The National Asset Reconstruction Company Limited (NARCL) has finalized the acquisition of two stressed assets belonging to SREI Infrastructure Finance Limited. This is a major development in the ongoing efforts to resolve bad loans in the Indian financial system. The acquisition is expected to help NARCL recover a significant portion of the outstanding dues and improve the liquidity of the financial markets.
Other notable headlines:
- World Bank launches a comprehensive program to combat air pollution crisis in India.
- Canada’s TD Bank sets a new record with its lease agreement for its India headquarters in Mumbai’s BKC.
- Deloitte predicts that more Indian banks will join the ranks of the Top 100 global banks within the next decade.
- Police recover Rs 4.7 crore worth of missing gold from an SBI branch in Andhra Pradesh.
- Apple is reportedly trying to unwind its credit card partnership with Goldman Sachs.
- JP Morgan Chase CEO Jamie Dimon reiterates his skepticism about cryptocurrencies and suggests he would close down the entire industry if he could.
These are just a few of the many headlines shaping the banking and finance industry today. As we move forward, it will be interesting to see how these developments unfold and what impact they have on the global economy.
