The units include three phases of Adani Power’s Mundra station, Essar Power Gujarat and JSW Ratnagiri projects, and Coastal Gujarat Power Ltd. of Tata Power, most of which are currently closed due to fuel issues and are classified as non-performing assets. on bank books.

This comes after the RBI, in a missive sent in mid-May, asked banks to exercise caution in lending to such power plants and also asked banks to provide details of exposure to these 13 projects. listed by the Department of Energy. Subsequently, at a meeting held the last week of May, the banks decided not to proceed with the proposal of the Ministry of Energy.

“We cannot provide funds to these power companies based solely on the order of the Department of Energy and any support, if provided, will only be based on the merit of a particular case,” said a senior banker who declined to be identified. There is a consensus among banks on the issue, the banker said.

The best of Express Premium

Prime

Prime

Prime

Prime

The RBI did not respond to emails sent on the matter.

The regulator and banks must look at any borrowing from a long-term perspective to ensure that any new exposure taken by banks does not turn into a bad loan. A recent report by BofA Securities estimates that banks could take a hit of around Rs 37,200 crore as they liquidate 10 power projects that found no takers in the insolvency process.

The bankers said they would soon brief the RBI and the Ministry of Finance on the matter. “No ministry can ask banks to finance sick projects. We cannot use public money to finance projects that may not be viable,” a banker said.

Earlier in May, as the country faced an energy shortfall due to an unprecedented surge in demand due to the intensification of the heat wave, the Ministry of Energy had asked all imported coal-fired power plants to start operating at 100% capacity and indicated that these plants needed working capital to buy coal to restart their operations.

With rising temperatures, electricity demand hit a new high of 209.8 GW (gigawatts) on Wednesday, surpassing the previous record of 207 GW on April 29 this year. This increase in demand has been partially met, mainly thanks to a 16% annual increase in domestic coal shipments to thermal power plants, alongside coal imports and a ramp-up in hydro and wind power generation. Although peak demand has been managed so far, there are demand projections peaking at 220 GW between July and September, when the monsoon will impact coal mining and shipments.

Last month, the Ministry of Energy also ordered state-owned Coal India (CIL) to import coal for public and private power generation companies, just weeks after these gencos received ordered to import coal for a 10% blend, but were then instructed to keep their tenders “in abeyance”. Several states had asked CIL to transport coal from international markets.

On Thursday, CIL launched a tender to supply 2.4 MT (million tonnes) of coal for the July-September period. The estimated value of the contract is Rs 3,100 crore, CIL said in the tender document. The imported coal would be supplied to state-owned gencos and independent power producers including Sembcorp Energy, JP Power, Avantha Power, Lanco, Rattan India, GMR, CESC and Vedanta Power.

This refers to the report “Bringing Housing Finance Under the Banking Structure to Scale: HDFC Chair” (June 7).

In the case of the proposed merger between HDFC and HDFC Bank, the merged entity is expected to have an asset base of over ₹27 trillion. The past few decades have seen the parallel growth of “non-banks” eating away at traditionally bank-owned businesses and the RBI struggles to acquire adequate regulatory and supervisory powers to protect the interests of their customers.

The reference to “pooling resources and reducing costs” in the HDFC Chairman’s statement must also be seen in the context of regulatory and prudential convenience – if all members of the financial sector engaged in banking activities are subject to the same operating parameters.

The swift and successful merger of HDFC and HDFC Bank will pave the way for further consolidation of the Indian banking system.

MG Warrior

Bombay

Checks and Balances

With reference to the editorial “Off key” (June 7), the resulting multitude of transactions loses due to human negligence in the careful execution and realization of high volume transactions, whether in the derivatives markets or actions amounting to systemic failure, poor risk management standards and undermining investor confidence.

In an era of great technological advancements, the establishment of automatic checks and balances at every stage and the predominance of an integrated capability to enhance operational efficiency and safety are of the utmost importance.

The lack of controls over these types of big-finger transactions is very deplorable and requires immediate corrective action to prevent monetary losses and preserve the reputation of trading and brokerage houses in addition to ensuring confidence in the trading mechanism of the market.

Sitaram Popuri

bangalore

Individual investors at risk

Elders are usually terrified of hitting the wrong key in a fit of distraction. This has deterred many people from operating online trading platforms.

A survey would indicate that this is only the most computer-savvy young generation between the ages of 20 and 35; who are active on these platforms.

Brokerages employing the best are not immune to such mistakes. Because the amounts are large, such things are reported. God knows how many retail traders have made the same mistakes and suffered losses for their mistakes.

A voice confirmation of the order would help minimize errors. An extra zero or two could wipe out a lifetime’s savings. And there would be no recourse.

Antoine Henrique

Bombay

Protect the monetary system

This refers to “No proposed replacement of Mahatma Gandhi’s face on banknotes: RBI” (June 7).

It is truly strange and intriguing to gather unverified reports currently circulating in national/social media suggesting that the Ministry of Finance and RBI were “considering” to use the faces of other prominent Indians including Rabindranath Tagore, APJ Abdul Kalam on banknotes of certain denominations. How do such reckless, unverified and irresponsible reports end up in the public domain?

Notice that such an ill-conceived idea, perhaps aimed at “politicizing” the security features of Indian banknotes, also prompted the Reserve Bank of India, vested with relevant powers under Sections 24 and 25 of the Act RBI of 1934, to issue necessary clarification stating that “It may be noted that there is no such proposal in the Reserve Bank.”

Of course, any deliberate dissemination of such “frivolous and misleading” stories in the media must be dealt with severely by identifying and appropriately punishing the true carriers of such “false stories”, as it is tantamount to playing with the “sanctity and the secret “. ” of the Indian monetary system.

SK Gupta

New Delhi

Published on

June 07, 2022

Indian fintech Kiya.ai will launch a “banking metaverse” to allow users to visit a virtual bank branch at home, a press release announced on Friday (June 3).

The press release presented this as a way to conduct transactions, access banking information and use a number of products virtually.

Called Kiyaverse, it will allow users to adopt an avatar, or “virtual humanoid”, and allow banks to add features for customers, partners and employees.

It will also come with tokens as NFTs and support CBDC, and the release says Kiyaverse will interface its open API connectors with aggregators and gateways to enable a super app and marketplace on the metaverse.

And the release says there will also be a headset so users can access a more “realistic” banking experience with more believable interactions via the internet of the senses.

The platform will offer real-world banking services in a virtual world, and vice-versa. It will feature interactions with a relationship manager’s avatar and customization, AI-powered digital customer interaction, portfolio analytics, wealth management, co-lending and corporate banking, according to the press release.

Rajesh Mirjankar, Managing Director and CEO of Kiya.ai, said digital banking can often be seen as “detached”, something the company wanted to address.

He said the metaverse could allow banks to use technology “with a human touch” which the company says will improve interaction with customers.

See also: Meta Says Metaverse Will Be Worth $3 Billion

The Metaverse has been a new frontier for a number of industries, and Meta President of Global Affairs Nick Clegg has defended the choices of the company formerly known as Facebook, saying the technology will be a new change in the way people use the internet.

Clegg said the transition is a bit like how innovations like desktop computers and smartphones were perceived when they were first released.

“Skepticism is a natural reaction to something that seems straight out of a science fiction novel – in a way, it is – especially when there are wider societal concerns about how technology works in the two-dimensional world,” Clegg wrote.

With increased ability to operate in a challenging operating environment, the time was ripe for State Bank of India to embark on transformation, especially in digital banking for emerging opportunities, said bank chairman Dinesh Khara, in a communication to shareholders in the annual report for 2021. -22.

The public lender will intensify its partnerships with fintech companies and finance companies to increase penetration and reach. It would also intensify lending efforts to sectors covered by production-linked incentive programs (PLIs), electric mobility, Khara said.

“Overall, FY22 was a much better year than the year before (FY21). The pace of economic activity has picked up and the momentum is expected to continue,” he said. he declares. The bank’s annual general meeting will be held on June 22, 2022.

FY22 was not without its share of surprises. The outbreak of hostilities between Ukraine and Russia towards the end of FY22 severely affected the global economic landscape.

A look at the bank’s financial performance over the past few years showed a noticeable improvement on all metrics. So, despite the challenges posed by the operating environment, the bank had better loss-absorbing capacity, Khara said.

“The bank’s risk management practices have yielded better results, particularly in containing slippages. Therefore, now is an opportune time to undertake much-needed transformation by keeping an eye on emerging trends in banking, particularly in India. “, he added.

The bank will continue to accelerate its digital agenda both front and back office. The scope and reach of its SBI YONO Super App would be further expanded and with an improved user experience, Khara said.

In business operations, the lender will leverage advanced analytics to gain deeper insights into internal data and its best possible use. Mutually beneficial partnerships with fintech companies and financial firms will be further explored to increase penetration and reach, he added.

SBI is comfortably placed in terms of growth capital for the current year. Lending opportunities in promising sectors such as the sectors identified under the PLI program and renewable energy as well as electric mobility will be explored to diversify the portfolio, Khara said.

“Despite the economic headwinds, the bank has adapted well to the challenges posed by the operating environment. As a result, the performance achieved in FY22 will show further improvement in FY23.”

“A number of challenges facing India have their origins outside the Indian coasts and one of them is high commodity prices…commodity prices in May moderated from There is a lag effect… there is a supply chain lag happening so we expect inflation to moderate in the coming months and for that whatever action is needed on the side budgetary, these measures have been taken and with regard to the monetary authority, RBI is also taking measures,” Seth said on the sidelines of the curtain-raising event “Celebrating the Iconic Week under the Azadi ka Amrit Mahotsav of the Ministry of Finance which will be held from June 6 to 12.

Calling it a “dynamic situation”, Seth said the government was not trying to give a piecemeal solution, but to respond in a dynamic way. “As the situation evolves, it is continually assessed and whatever is necessary is done subject to the overall constraints within which the whole system operates. So it will not be possible for me to say what the future steps, whatever the current challenges, these are being addressed dynamically,” he said.

Explain

Above RBI target range

The retail price inflation rate hit an eight-year high of 7.79% in April and stayed above the central bank’s inflation target for four months.

The best of Express Premium

Prime

Prime

Prime

Prime

The retail price inflation rate hit an eight-year high of 7.79% in April and stayed above the central bank’s inflation target for four months.

On global headwinds affecting growth, Seth said: ‘One estimate was that the Indian economy will grow 8-8.5%, the budget assumed 7.5%… I haven’t seen any agency rating talk about a lower number than we had assumed.This is a dynamic situation…please understand that we are quite integrated into the global economy.

India is poised to become the fastest growing among the world’s major economies despite global challenges, he said. “We can overcome the current challenges as well as the challenges that will come our way in the coming years in the Amrit Kal. There are strong global headwinds that have impacted the global economy, … Despite all this , India is poised to grow the fastest among all major countries in the world. This was the position six months ago and this will be our assessment even today,” he said.

Buy now | Our best subscription plan now has a special price

In addition, the government is at an advanced stage of privatizing two public sector banks as announced by Finance Minister Nirmala Sitharaman, Financial Services Department Secretary Sanjay Malhotra said. In the Union budget for 2021-22, the government announced its intention to undertake the privatization of two PSBs (public sector banks) within the year and approved a policy of strategic divestment from public sector enterprises.

The government expects revenue loss of Rs 10,000-15,000 crore a year due to the recent recalibration of iron, steel and plastic tariffs, an official said, adding that the next series of GST audits will take place in the next 1-2 months.

According to the economic survey, India’s economy is expected to grow by 8-8.5% at the start of the fiscal year on April 1. The International Monetary Fund recently lowered its growth forecast to 8.2%, which is higher than 7.2% by the Reserve Bank of India.

Latest News Live Updates May 28, 2022: The monkeypox virus has spread to more than 21 countries, with around 200 confirmed cases and more than 100 suspected cases in countries where it is not usually found, the World Health Organization (WHO) said. The global health body has urged countries to increase infectious disease surveillance as outbreaks grow. Maria Van Kerkhove, the WHO’s technical lead for Covid-19, said more cases of the rare viral illness are likely to be reported as surveillance expands, but added that the recent spread is manageable, CNBC reported.Also read – Monkeypox: UP publishes SOPs; Hospitals will keep tabs on patients with symptoms and international travelers under CT scans

Meanwhile, the overall flood situation in Assam has improved over the past six days, although more than 5 lakh people remained affected in all 10 districts of the state, Nagaon, Cachar and Morigaon being worst affected, officials said on Friday. Assam State Disaster Management Authority (ASDMA) officials said that since May 13, when the pre-monsoon flooding began to have its impact, 30 people, including children, died – 25 in the floods and the other five in landslides in different districts. Stay tuned to India.com for all the latest news from India and around the world. Also Read – Monkeypox: ICMR says children are at higher risk, people with travel history from THESE countries should be tested

Also Read – West Bengal asks hospitals to prepare isolation beds for monkeypox cases