Raghuram Rajan discusses NPA issues with bankers and other top Banking news of the day

Round up of the major headlines that dominated the Banking sector, nationally and internationally.

Non-banking financial companies (NBFCs) have asked the Reserve Bank of India (RBI) to consider extending provisions of the strategic debt restructuring (SDR) scheme to them as many of them lend to the infrastructure sector where stress levels continue to be high, said two people familiar with the development.

Reserve Bank of India (RBI) governor Raghuram Rajan and other senior officers on Monday met lenders, non-banking financial companies (NBFCs) and asset reconstruction companies (ARCs) to discuss effectiveness of stress resolution methods such as strategic debt restructuring (SDR), 5/25 and the joint lender forum (JLF).

Kotak Mahindra Bank Ltd on Monday said its net profit rose 36.5% from a year ago to Rs.634.7 crore in the quarter ended December as it earned higher interest income and benefited from increased commissions and fees.

Billionaire Ajay Piramal is all set to float one of the biggest funds for distressed assets in the country with a corpus of Rs 6,000 crore.

The Reserve Bank of India (RBI) said on Monday it will buy up to Rs.10,000 crore worth of government bonds through an auction to infuse long-term liquidity in the banking system, the second such auction in fiscal year 2016.

Banks and finance companies have suggested to the Reserve Bank of India several measures that can be taken to stem the rising levels of bad loans, which are eating into bank profitability and eroding investor confidence.

The Press Council of India (PCI) pulled up UCO Bank for having distributed cash to journalists at a press conference addressed by BJD MP and chairman of the Parliamentary Standing Committee on urban development Pinaki Mishra at Puri last year.