Banking news update

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Greek crisis batters markets worldwide: Global stock markets took a hammering on Monday after Greece shuttered its banks for the week and imposed limits on cash withdrawals reinforcing fears the country is headed for a messy exit from the euro with repercussions for the world economy. (BL)

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Indian banks review clients' un-hedged Euro positions: To minimise any adverse fallout from the crisis in Greece, Indian banks have stepped up reviewing clients’ un-hedged foreign currency exposures, especially in the euro. (BS)

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Greece: FinMin fears capital outflows, in touch with RBI: Concerned that a breakdown in talks between Greece and its creditors may accelerate capital outflows from India, the government on Monday said it is monitoring the developments in Europe and that the central bank would take necessary action to deal with any eventuality. (FE)

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Bank slow in passing on RBI rate changes: IMF: Showing an anti-consumer bias in the Indian banks’ approach on interest rates, a new IMF study shows they are faster in effecting a hike in lending rates, but a rise in their deposit rates is not so quick. The IMF research also showed that banks are as such slow in effecting a change in their interest rates pursuant to the changes announced by the RBI in its policy rates. (BL)

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GDP set to hit $3 tn mark in 5 years: India’s growth rate is expected to accelerate to 8 per cent in the current financial year and the economy will surpass USD 3 trillion mark in less than five years, NITI Aayog Vice Chairman Mr. Arvind Panagariya said. (IE)

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NPCI to raise Rs 100 cr: National Payments Corporation of India (NPCI) is planning to raise Rs 100 crore through private placement in July. The capital will be raised by inducting 50 more banks as stakeholders. (BS)

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HC okays IDFC-IDFC Bank de-merger: The high court here has given a nod for IDFC's scheme of arrangement (de-merger) of its banking entity, IDFC Bank Ltd. It said the net worth of the financing undertaking to be demerged into IDFC Bank Ltd, the resulting company, would be Rs 6,500 crore on the effective date.  Further, after the investment by IDFC Financial Holding Company Ltd, the total net worth of IDFC Bank Ltd would be Rs 13,825 crore, more than sufficient to meet any liability from repayment of long-term infrastructure bonds (LTIBs.) (BS)

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Greek crisis not to impact ICICI Bank: Ms. Chanda Kochhar: The country’s largest private sector lender ICICI Bank, said it sees no impact of the Greek debt crisis on the bank as it had no exposure to Europe. (BS)

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SBI steps up recovery of bad loans in retail, realty segments: SBI is taking steps to clamp on bad loans that include web-based tracking of assets and “regular calls” to stressed accounts in the retail as well as real estate segments, Ms. Arundhati Bhattacharya has said. (BS)

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Kotak Mahindra Bank gets shareholders' nod for 1:1 bonus share: Shareholders on Monday gave approval to Kotak Mahindra Bank's proposal for issuance of bonus shares. The AGM held approved issuance of “bonus shares in the proportion of one equity share for every equity share of face value Rs 5 held by such person on the record date,” Kotak Mahindra Bank said in a filing to the BSE. (BS)

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Syndicate Bank moderates growth targets under new MD: After showing heady business growth in 2014-15, above the sectoral trend, Syndicate Bank is scaling down the pace of business expansion for 2015-16, to strike a balance in credit exposure and the liability profile. (BS)

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Corporation Bank earns Rs. 2 cr from Jan Dhan scheme: With more than 70 per cent non-zero balance accounts under PMJDY, Corporation Bank’s earnings from this scheme has crossed Rs. 2 crore. (BL)