Delhi High Court assigns special CBI court to speed up trial in biggest bank fraud
The Delhi High Court appointed a special CBI Court to speed up the trial of India’s largest bank fraud case involving Dewan Housing Finance Ltd (DHFL). Promoters Dheeraj and Kapil Wadhawan are accused in the Rs 34,614 crore loan fraud case. The CBI submitted a chargesheet with over 330,000 pages, indicting 108 individuals/entities.
Banks’ profits healthy, but margins may shrink and deposits could disappoint
Banks experienced growing stress in unsecured retail, micro finance, and rural loans in the first quarter, influenced by heatwaves, election slowdowns, and higher risk weights. Despite a 21% increase in net profit, margins and deposit growth continued to lag credit demand. Major slippages were seen in State Bank of India and IDFC First Bank. Analysts consider these challenges temporary but warn of declining margins and high deposit rate requirements to attract savings.
IDBI Bank sells distressed Rs 6151 cr portfolio to Omkara ARC
At inter-se bidding held on Saturday (August 3), Omkara ARC gave the highest offer of Rs 652 crore, outbidding government-promoted National Asset Reconstruction Company Ltd (NARCL). For IDBI Bank, the distressed portfolio sale equates to a recovery of 10.5%, which will be reflected in its second-quarter earnings.
Banks, NBFCs are bound to adopt a restructuring process for MSMEs without following 2015 framework: SC
The Supreme Court decided that banks and NBFCs are obliged to restructure MSME loans without awaiting applications, following mandates from the Central Government and RBI. This verdict overturns a Bombay High Court ruling, underlining the statutory force of such directions and stressing early intervention to avoid loans turning into NPAs.
How Rs 60,000 cr losses from F&O give banks hope for a savings revival
As India shifts towards high-risk, high-return investment options, households are losing around Rs 60,000 crore annually in derivatives trades. With 92.5 lakh retail investors and proprietorship firms incurring losses, there are concerns about household savings being wasted on speculation. In response, SEBI has introduced a seven-point plan to curb such trades, and the Union Budget includes measures to discourage them. This situation offers banks hope that investors might return to traditional savings options.
Discouraging retail play in F&O may help banks garner deposits: SBI Chairman Khara
It can be noted that concerns over losses incurred by 90 per cent of investors in the derivative trades have led to fears of household savings being blown in speculation rather than being deployed for productive purposes among policymakers.
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