VisVoice

  YES BANK Reconstruction Scheme and its AT1 Bonds Appeal against Restoring AT1 Bonds: YES Bank Ltd. (Yes Bank) and the Reserve Bank of India (RBI) have filed an appeal in the Supreme Court (SC) against the Bombay High Court's (High Court) ruling favouring the bondholders of the bank's AT1 bonds worth Rs.8300 cr. that were written down. The High Court set aside the order of the Yes Bank administrator that the additional tier-1 (AT1) bonds of the bank worth Rs.8300 cr. be written off, as part of the reconstruction scheme(Drafted by RBI and approved by the government) in March 2020. The reasons cited by the High Court were: The clause for write down of AT1 bonds, which found a place in the RBI Draft Reconstruction Scheme of Yes Bank, was absent in the Reconstruction Scheme notified by the government on 13th March 2020. As such, the administrator of Yes Bank, who implemented the reconstruction scheme, exceeded his authority. Points that may be relie...

  The question of ‘Conflict of Interest’ and ethics Mrs. Chanda Kochhar, ex-MD & CEO, ICICI Bank, and her husband Mr. Deepak Kochhar are being tried in a case involving Videocon and group of companies, on corruption charges. It was in the news again, recently, as they were arrested and released. When the issue was at its peak ( in March - April 2018), I wrote to RBI, ICICI Bank and Mrs. Chanda Kochhar herself on 26th April 2018 to come out transparently on the issue. O f course,  I received no response, . Interestingly, after defending their then MD & CEO to the hilt at that pointvof time, ICICI Bank not only distanced itself, but terminated her services also. Thought, I will share my letter to Mrs. Chanda Kochhar in my blog, without in any way trying to demean her. Even today, she is only alleged to have committed the irregularities; let the truth, for or against, finally prevail.  Quote: "Madam The question of ‘Conflict of Interest’ and ethics At the Outset, I...

 Divine Blessings unlimited "After the new moon day, everyone is anxious to see the 'bright' moon. On the first day, it is not seen and on the second day it appears as a thin crescent. The people are asked to see the moon through the opening, between the two branches of a tree; and when they begin to see through this aperture, the distant small crescent of the moon is visible. Same way, let us see Baba. He sits with his right leg held across the left knee. The fingers of his left hand are spread on the right foot. On the toe are spread his two fingers - the index and the middle ones. By this posture, Baba seem to say 'meditate on my toe through the opening between my index and middle fingers; you will be able to see My Light" (Shri Saisatcharitra - English - Shri N.V.Gunaji - Chapter22) To-day, with the blessings of Shirdi Sai, I was fortunate to have visited Naga Sai Mandir* in Coimbatore. The more than Eighty four year old temple had its "Ashtabandhana Maha...

Monetary Policy of RBI dated 07.02 23 My views  How much of Repo rate increase will be  transmitted to borrowers: The bankers will be in a dilemma. They know that repo is at its maximum or near its maximum and then a pause for atleast two MPCs after that (4 months).  1. So they may not like to hike deposit rates beyond limited level say 10-15 bps in select maturities upto 1-2 years. 2. At the same time, growth oriented/ potential  lending segments offer tremendous scope for transmission of repo rates, in full, to the new borrowers.  (personal, cards, home, auto loans in retail and A/BBB rated corporates/sound BB/unrated well collateralised firms/ corporates can be the target segments) So I expect the average deposit rates to go up  by 10 bps in the 6mths - 2 years buckets and average lending rate to go up by 15 bps in retail and corporates/msmes rated/unrated as mentioned above   Regulatory policy changes  1. The proposed lending and borrowing in ...

 'Dream' MPC Meeting -  Repo raised by 15 bps! (Below created characters and conversations are purely imaginary; might or might not reflect reality; Intention is not to hurt anyone; if it hurts anyone, my sincere apologies to them) It was a long day. I went to sleep around 11.30 P.M., setting the alarm at 4.30 A.M., the next day. Believe it or not, I could visualize and hear the deliberations of the Monetary Policy Committee (MPC) of Reserve Bank of India, slated from 6th Feb to 8th Feb 2023.  " Chairman:  Good morning ladies and gentlemen. Hearty welcome to the first meeting of the MPC for the year 2023. Can some honorary members entail the major concerns, that led to decision to increase the repo rate for the fourth time in a row in the last meeting. MPC Member 1. CPI inflation, at 6.88% for October 2022, was higher than the upper band of the target rate for the tenth month in a row.  While headline inflation may ease in Q4 FY 23 and Q1 FY 24, core inflation s...