General Awareness - Banking & Financials Updates, August 10, 2020

Bank employees' union AIBEA urged the RBI Governor to review the decision to appoint K V Kamath as the head of a committee to oversee debt recast, alleging that the name of former ICICI Bank chairman reportedly appears in the FIR filed in a case against Chanda Kochhar. AIBEA, in a letter to RBI Governor Shaktikanta Das, alleged that as per media reports, in the FIR filed by the CBI, in addition to the name of former MD of ICICI Bank Chanda Kochhar, the name of Kamath also appears. -Economic Times

 Bank of Baroda on August 10 posted a net loss of Rs 864.3 crore for the June quarter 2020 due to provisioning on standard accounts. The bank's profit was at Rs 709.6 crore in the corresponding period last fiscal. -Moneycontrol.com

 Union Bank of India today announced a cut in its MCLR by up to 15 basis points across various tenors, effective August 11. The lender has reduced its 1-year MCLR to 7.25% from 7.40%, a release said. -Business Line

 ICICI Bank today said it has launched an institutional share sale offering that will see the bank raise as much as ₹15,000 crore (approximately $2 billion). -Livemint

 Kotak Mahindra Bank today said that it has complied with RBI's guidelines on promoter shareholding, within the prescribed timeline. -Livemint

 ICICI Bank has taken possession of Mantri Developers' 30,000 square feet (sq ft) corporate office in Bengaluru over non-payment of dues, a notice issued by the bank said. -Moneycontrol.com 

The RBI’s move on one-time loan restructuring will help soften the pandemic’s impact on the asset quality of banks, with major beneficiaries being the sub-₹500 crore corporate exposures and retail exposures, according to Crisil Ratings. -Business Line

 The Government told the Supreme Court today that spectrum of the bankrupt telcos who owe statutory dues cannot be sold, raising a cloud over resolution plans of RCom and Aircel. The DoT has filed an appeal in SC against sale of airwaves, which if accepted, will break down all asset monetisation plans and deal a blow to lenders. -Economic Times

 For the first time in over 4 years, the equity schemes of mutual funds registered an outflow of ₹2,489 crore in July, on the back of huge redemption and negative returns delivered by most schemes. In fact, about 78% of the active equity schemes had given a negative return this year. In March, 2016 equity funds (including ELSS) logged a outflow of ₹900 crore. -Business Line

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