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Allahabad Bank board to meet Tuesday to take action on CEO

Allahabad Bank board to meet Tuesday to take action on CEO

Finance
KOLKATA: Allahabad Bank has called an emergency board meeting on Tuesday following Finance Ministry's direction to take away all executive powers from bank's chief executive officer Usha Ananthasubramanian while Reserve Bank of India has put fresh business restrictions on the bank for poor financial results. The government said it has initiated action for removal of Allahabad Bank chief executive officer and two executive directors of Punjab National Bank after Central Bureau of Investigation filed chargesheet against them in connection to fraud at PNB involving diamond trader Nirav Modi. Ananthasubramanian was the managing director at PNB between 2015 and 2017, before she was appointed as head in Allahabad Bank. Allahabad Bank called the board meeting late Monday, two people in the kno...
RBI puts Dena Bank under prompt corrective action

RBI puts Dena Bank under prompt corrective action

Finance
NEW DELHI: Reserve Bank has initiated prompt corrective action against public sector lender Dena Bank in view of high non-performing loans, restricting the bank from giving fresh credit and new hiring. The public sector lender yesterday reported widening of its net loss to Rs 1,225.42 crore in the March quarter on mounting bad loans and higher provisioning to cover them. The net loss stood at Rs 575.26 crore in the January-March quarter of 2016-17. Sequentially, the loss widened from Rs 380.07 crore in December quarter of 2017-18. "Reserve Bank of India, vide their letter dated May 31, 2017, has initiated Prompt Corrective Action for Dena Bank and imposed certain restrictions, in view of high Net NPA and negative RoA ( return on assets)," the bank said in a regulatory filing. In continuati...
Interest rates on hold as Bank cuts growth outlook

Interest rates on hold as Bank cuts growth outlook

Business
Media playback is unsupported on your deviceThe Bank of England said the UK economy has hit a "temporary soft patch" as it kept interest rates on hold at 0.5%.The Bank cut its growth forecast for the year to 1.4%, down from the forecast of 1.8% made in February.The Bank says that cut is almost entirely due to the disruption to the economy caused by bad weather in March.However, Bank governor Mark Carney said in an interview with BBC economics editor Kamal Ahmed that "it's likely" rates will rise this year. In a press conference after the rates decision was announced, Mr Carney said the "underlying pace of growth remains more resilient than the headline data suggests".As recently as February economists were expecting the Bank to raise interest rates this month.That view changed after figure...
HDFC Bank aims expand investment banking, taps talents

HDFC Bank aims expand investment banking, taps talents

Finance
HDFC Bank, the country‚Äôs largest lender by market value, is hiring top investment banking talent to boost its presence in a business holding major promise and close the gap with bulge-bracket Wall Street names that dominate placements at South Asian B-schools. In the past few months, the bank has hired at least 10 top rainmakers from global banks such as HSBC, Standard Chartered Bank, and Macquarie, and the home-grown ICICI Bank. While its ranking in the debt market has been climbing, HDFC Bank is slotted lower in equity offerings where Citi and BoFA-ML dominate. Among local banks, Axis, ICICI and Kotak have significant presence in the equity markets. The bank ranks second in the Bloomberg Bond League table for India while it is way below in the Equity Offering table at 19. “The expa
TSB: How it all went so wrong for the bank

TSB: How it all went so wrong for the bank

Business
All surfers know the feeling of being hit hard by a wave, being left bruised and disorientated, and then having to get up and do it all again.TSB chief executive Paul Pester, a fanatical surfer, must have felt much the same each day for the last week.His bank, which has five million customers, has been crippled by an IT crisis. Customers have been told time and again that normal service has resumed, an assertion they have furiously disproven.Mr Pester now faces wave upon wave of questions and demands from customers, MPs, and regulators among others.So how did it all go so wrong?Last weekendAfter years of planning, TSB shuts down various services for two days in a planned migration of customer data to a new IT system designed, it says, "for the digital age".The process involves moving 1.3 b...