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Yes Bank should file for review

  YES Bank should file a review petition in the AT1 Bonds write-down issue 1. Was RBI a bystander?: RBI was never a bystander in the Yes Bank (the bank) 'AT1 Bonds write down' issue. (The Hon’ble High Court observed RBI was a bystander , till CET1 ratio  reached 0.6%). On 5th March 2020, when Yes Bank was placed under moratorium, RBI stated thus:  Reserve Bank has been in constant engagement with the bank’s management to find ways to strengthen its balance sheet and liquidity. The bank management had indicated to the Reserve Bank that it was in talks with various investors and they were likely to be successful. The bank was also engaged with a few private equity firms for exploring opportunities to infuse capital as per the filing in stock exchange dated February 12, 2020. These investors did hold discussions with senior officials of the Reserve Bank but for various reasons eventually did not infuse any capital. Since a bank and market led revival is a preferred option o...
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IDBI stake sale - Undervalued?

IDBI BANK STAKE TRANSFER: Unanswered Questions News Item:  Cabinet Committee on Economic Affairs (CCEA), in its meeting held on 14th October 2026, approved Canada Inc (Parent entity of Fairfax Financial Holdings) as the strategic buyer for acquisition of 60.72% stake (comprising 30.48% of shares held by the government and 30.24% held by LIC) in IDBI Bank (the bank) for a sale consideration of ₹52,878 crore. For concluding this deal, the price per share of IDBI Bank is fixed at ₹81.  Once the deal goes through,  the stake of the central government and  LIC will come down to 15% and 19% respectively. While the remaining shares of the government in the bank will be sold through the open market, in line with standard operating procedure,  (SOP), LIC is given the discretion to handle its residual share, as per its internal procedures. Incidentally, this deal will be the  largest foreign direct investment (FDI) in India’s financial sector, so far. United Forum of...
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Yes Bank AT1 Bonds fiasco

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Yes Bank AT1 Bonds fiasco: Who is responsible? Brief:  Reserve Bank of India, (RBI) in terms of powers conferred under Banking Regulation Act, 1949, after taking into account  (a) the rapidly deteriorating financial position of the Yes Bank Ltd., (the bank) relating to liquidity, capital and other critical parameters  (b) the absence of any credible plan for infusion of capital  announced a 'draft' "Yes Bank Reconstruction Schem e" on 6th March 2020.   The draft scheme, among other things, mentioned that the instruments qualifying as Additional Tier I Capital, (AT1 Bonds) issued by the bank under Basel III framework, shall stand written down permanently, in full, from the appointed date (defined as the date on which the Central Government notifies the scheme in its Official Gazette), as per its extant regulations on the Basel framework. However, the clause relating to 'permanent write down of the instruments issued as AT1 Bonds', did not find a place in the Re...
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Repo Rate - Better to keep the rate unchanged?

  Repo rate review:  A catch 22 situation? The fourth bi-monthly review meeting of the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) for the current financial year (FY 26-27) starts tomorrow. What will be the decision of RBI MPC on repo rate?  On the negative side, Crude Oil prices, an important factor to contribute imported inflation, are ruling above USD100 per barrel in the last three weeks. The other factor for increase in domestic prices due to imports, the Indian rupee, inspite of FCNR B inflows of USD 133 billion, continues to be weak with ₹96 mark breached quite often. The US FED raised its policy range rate by 25 basis points to 3.75-4.0% in Sep' 26, the first increase since 2023. (Incidentally, RBI also last raised the Repo rate in 2023 only). Net FPI outflows crossed USD4 billion in Sep' 26 reversing the positive trends in July and August 2026. US 10 year Treasury Bond yields are ruling at 5.25% (50 bps more than the ruling rate last month) and...
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STATE BANK OF MYSORE FOUNDATION DAY

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  STATE BANK OF MYSORE -114th Foundation Day  Remembered for its Traditional Values and  Modern Outlook  While India and the entire World are Celebrating 'Gandhi Jayanti Day' today, as a mark of respect to the Father of our Nation, the staff (SBMians) of erstwhile State Bank of Mysore (SBM) in addition, celebrate their bank's (SBM) 114th Foundation Day, with joy and cherished memories. The bank, under the Royal patronage of His Highness the Maharaja of Mysore, Shri Krishnaraja Wadiyar, was founded by Bharat Ratna Shri M. Visvesvaraya (Sir Mokshakundam Vishweshwariah) on 2nd October 1913.  I was privileged to work in SBM during its Centenary Celebrations and also be a part of the bank, when it opened its 1000th branch. I worked in two capacities - as DGM (F& A) (2011-12) and GM (Treasury) & CFO (2012-2014). The entire period was  eventful. After recording its highest profit in FY11, due to stress in loan assets and increased provisions as a consequen...
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Proposed UPI Charges - why not modify?

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 Proposed UPI transaction charges:  Is the action justified?  UPI transactions, exempted from MDR charges so far, are going to be charged effective 15th Oct 2026. Transactions up to ₹2000 under UPI are exempted and the proposed charges, to be levied above the exempted limit, carry a caveat that it shall not be passed on to the users/ultimate consumers. After all, UPI is part of the whole gamut of digital transactions, which form the majority of banking transactions today.  While the debate is going on as to  whether the consumers/small merchants are being fleeced in the process,  I would like to present certain facts about digital transactions before conveying my views on the proposed charges. 1. Digital Transactions carry convenience, reduced costs and increased opportunities: a. For the bankers: Digital transactions reduced the marginal operational expenditure like costs in carrying physical cash,  tallying, maintenance, staff salaries, branch renta...
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State Bank of Travancore Foundation Day

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  S BT Foundation Day 12th September 2026 Certain things cannot be restored in life. During such  situations, the counsel says "Accept reality; reconcile yourself". I accepted my retirement, sitting at home without work and all that; but yet to reconcile to the fact that my mother Bank SBT ceased to exist.  I joined SBT, when the work was carried out manually. Then I worked in a partially computerised set up followed by a fully computerised core banking environment as well. I mostly I worked in branches, till I entered administrative offices at higher levels. Month after month, on all salary days, I used to see, interact, and offer a 'cup of chai' to my senior retirees, who used to throng the branch for withdrawing money and updating their passbooks. The situation did not change, even when the ATM cards were introduced, passbook printing machines were kept alongside the online ATM machines.  Most of the retirees preferred cash withdrawal from the counters, (select so...
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