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  CFSL as new SFB and PMC Bank Depositors   Centrum Financial Services Ltd (CFSL) is given ‘in-principle’ approval by RBI to set up a Small Finance Bank (SFB), in pursuance of its response to the Expression of Interest (EoI) issued by Punjab and Maharashtra Co-operative Bank (PMC Bank), under moratorium. The NBFC is expected to operationalize the new SFB, within 120 days. PMC will be amalgamated with the new SFB, as per scheme of amalgamation to be drafted and approved by the regulator/government in due course. Whether the depositors of PMC Bank, till now allowed to withdraw up to Rs.1 lac only or their outstanding balance whichever is lower, can heave a sigh of relief? Let us examine.   (As the scheme of amalgamation is not yet drafted and is a few months away, my assumptions are based on the terms in the EoI and how similar mergers had happened in the past. The possible scenario is imaginary only) CFSL: CFSL is a step down subsidiary of Centrum Capital Ltd (CCL) . F...

Unreal Repo rates hurts savers badly Record Borrowings: Central and State Governments made record borrowings of Rs.21.49 lac cr. in the financial year 2020-21.                            (Rs. in cr.) Government Gross Net Central 13,70,324 11,43,114 State 7,78,175 6,32,254 Total 21,48,499 17,75,368 For FY2021-22, the indications are that the borrowings might be still higher. How this was made possible? With Reserve Bank of India (RBI) proactively involved in ensuring adequate liquidity in the financial sector, one is under the impression that the record borrowings of the state and centre was made possible only due to the slew of liquidity measures initiated by RBI. Monetary Policy Report of RBI also says that its initiatives since Feb ...