13.02.2024 : Today’s Banking / Financial News at a Glance
? Canara Bank plans to seek RBI’s permission for credit card subsidiary this month : Canara Bank will soon seek regulatory approval to convert an IT subsidiary into a credit card company as the state-owned lender aims to leverage its existing customer base for selling credit cards with unbridled focus to tap this potential growth market. Managing director K Satyanarayana Raju told ET that the bank is in the advanced stages of submitting an official application with the Reserve Bank of India to start the venture where it will have a 94% stake with Karur Vysya Bank holding the remainder. Canara Bank currently holds 69.14% stake in the subsidiary, Canbank Computer Services. Bank of Baroda owns 18.52% while DBS Bank and Karur Vysya hold 6.17% each. Canara Bank has received commitment from BoB and DBS to buy out their respective stakes. – economic times.
? Axis Bank to begin process of rebranding Citi cards from H1 FY25 : Axis Bank will begin the process of recarding, or issuing rebranded Citi cards under the Axis brand, from the first half of the next financial year, said Arjun Chowdhry, Group Executive and Head, Affluent Banking, NRI, Cards and Payments. “Because of the branding requirements, we will start the process of recarding… We expect to start that somewhere in the first half of FY25. We’ll try to finish it as fast as possible; it will depend on the pace of delivery and printing, but we’ll start in H1 FY25,” he said at the sidelines of an event. “We’ll do so in a manner which is completely seamless for our customers. They won’t have to do any of the retokenise or card-on-file requirements, but the plastic will have to change because that carries the Citi brand. The numbers will remain the same,” he added. – Business Line.
? Will continue to work with Paytm, subject to RBI forbearance: Axis Bank MD : Paytm, or One 97 Communications, is an important player in the financial services ecosystem, and Axis Bank will continue to work with it subject to regulatory forbearance, Axis Bank MD and CEO Amitabh Chaudhry said. “If, subject to regulatory forebearance, the regulator allows us to work with the player in specific areas based on whatever they are saying, of course we will continue to work with them. They are an important player in the fintech industry, and that is a fact,” he said. – Business Line.
? RBI imposes monetary penalty on 4 co-operative banks for rule violation : The Reserve Bank of India (RBI) on February 12 said it has imposed monetary penalty on four co-operative banks for rule violation. These banks are Shillong Co-operative Urban Bank, Pusad Urban Co-operative Bank, Sri Satya Sai Nagrik Sahakari Bank Maryadit, and The Anjangaon Surji Nagari Sahakari Bank, according to a release from the central bank. he RBI imposed Rs 2.50 lakh penalty on Pusad Urban Co-operative Bank, Rs 1 lakh on Shillong Co-operative Urban Bank, Rs 75,000 on Sri Satya Sai Nagrik Sahakari Bank, and Rs 50,000 on The Anjangaon Surji Nagari Sahakari, release added. – moneycontrol.
? RBI may keep repo rate unchange in April policy despite easing CPI inflation, says economists : The Reserve Bank of India (RBI) is likely to keep the repo rate unchanged at 6.50 percent in the April monetary policy despite India’s headline inflation in January eased to 5.10 percent, economists said. This is because experts said that the central bank will focus on bringing inflation to its medium-term target of 4 percent and also due to the risk of food inflation. We expect inflation to print close to 5 percent in the coming two months and do not see any imminent changes in policy stance or rate by the RBI for now,” said Sakshi Gupta, Economist at HDFC Bank. – moneycontrol.
