The CGs led to not just an increase in credit towards these neglected areas, but also of rising claims. The CGC expedited the processing of claims, but that also weakened its financial position. This weak financial position led to the merger of the CGCI with the DIC to become the Deposit Insurance and Credit Guarantee Corporation. The group which led to the formation of the CGC had anyway recommended the DIC to take over the tasks of credit guarantees. So, it was more like coming home really. The Act to provide for acquisition of the CGC by the DIC was passed in April 1978 and came into effect from July 15, 1978. … [Read more...] about Credit guarantees of 1970s make a comeback
Higher treasury income (stake sale of Yes bank) and NIM expansion led to strong 29% sequential growth in Federal Bank’s Q4 operating profits. Higher provisions (incl. `930m Covid-related) led to a ~32% q/q decline in earnings. Asset quality and PCR improved. Ahead, higher build-up of stress would keep credit cost high and profitability subdued in the medium term. … [Read more...] about Buy Federal Bank target of Rs 55: Anand Rathi
It has been decided to extend a line of credit of Rs 15,000 crore to the Export-Import Bank of India (EXIM Bank) for a period of 90 days from the date of availment with rollover up to a maximum period of one year so as to enable it to avail a dollar swap facility to meet its foreign exchange requirements. … [Read more...] about COVID-19 impact: RBI announces measures to support foreign trade
A bond exchange-traded fund (ETF) is a type of ETF that exclusively invests in bonds/ a basket of bonds in the underlying index. It can invest in the government, corporate, or public sector unit bonds.Why should I invest in Bharat Bond ETF?A. It offers multiple benefits to conservative debt-fund investors who wish to save for the long term. It has a relatively high-quality portfolio of select public sector companies, it is cheaper with extremely low expense ratio and it offers a tax-efficient return compared to other options such as bank fixed deposits. … [Read more...] about Bharat Bond ETF second tranche to launch in July: All your questions answered
Simply Save podcast | Can debt funds really assess credit risk? Coronavirus Essential podcast | Kerala see another wave of infections; MHA refutes lockdown 5.0 claims; SC takes note of migrant issue Taking Stock | Market rises for second day in a row; investors richer by nearly Rs 2 lakh cr in a day … [Read more...] about Coronavirus Essential podcast | RBI’s push to revive economy, does COVID-19 spread through corpses?