VisVoice

  Should RBI Regulate SB Interest Rate? 'CASA' is a famous term in banking that denotes Current Accounts and Savings Bank Accounts. It is famous because they are demand deposits, which comes to the banks at nil/lower costs as the customer has the right to withdraw any amount from the bank accounts (in person/cheques as well as via online) without giving any notice. Of course, different banks stipulate average minimum balance to be maintained, below which penalties will be levied. The accounts, known as operating accounts, are special for the banks in the sense that it differentiates a bank from a NBFC, which is only entitled to accept time deposits (payable after due date/compliance of certain conditions, in case of premature closure). CASA share for the banking system as a whole is estimated at 35% of the total deposits. While few banks have a CASA share of less than 30%, majority of public sector banks (PSBs) and major private sector banks have a healthy CASA share of more th...

  RELATIONSHIP STANDOFFS IN SOCIAL MEDIA Even in the start of the new millennium, e-mails and SMSs were hailed as the break through in communication among business and friend circles.  However, exchange of news and views have been revolutionized, with the arrival of social media particularly through platforms like face book, WhatsApp, Instagram, YouTube, etc.  While one can become a jack or a master in any subject just by browsing the said platforms, for those who just want to participate for fun and happiness, the multiple 'forwards' carrying  strong views and opinions becomes too many and difficult to digest even.  So more often than not, the 'forwards' find their way to the 'bins', as the brain says 'stop, enough for the day'.  But bringing in unsolicited political news/opinions through 'Forwards' and 'frank opinions' cause heartburn among a few participants, who find time to read the stuff, take it personally and seriously as it affec...

  Fellow Bankers:  Why this mad run after a mirage? In the last fortnight, Reserve Bank of India (RBI/Regulator) imposed hefty fines on two major private banks for non-regulatory compliance and also directed a large public sector bank (PSB) to suspend further onboarding of new/existing customers onto the latter's 'mobile app' with immediate effect. According to RBI, while the fines on the major private banks are for violations/non-compliance in respect of outsourcing service provider/engagement of recovery agents, levy of charges in foreclosure of loans and non compliance of statutory and other  restrictions in sanction of loans and advances, the direction to the PSB to stop onboarding further customers was issued in the light of 'material supervisory concerns' observed in the manner in which the customers were added in the bank's app. The action in respect of the private banks can be tagged to deficiencies in corporate governance in the said banks and its branc...

Impressive turnaround of Bank of Maharashtra Bank of Maharashtra (bank) was one of the few banks that were left out of the exercise of merger of public sector banks (PSBs) in 2019. (Ten PSBs were merged into four). The bank incurred a net loss of Rs.4784  cr. in the financial year ended 2019. The bank took the decision of the central government as a ‘blessing in disguise’ and started its turnaround. From the huge net loss reported in FY 2018-19, the bank reported a modest net profit of Rs.389 cr. in FY 2019-20. Since then, as shown in the following table, the bank had grown from strength to strength in the last 42 months, marked by 72% growth in business levels and improving by six times its net profit  that was reported in March 2020.                                                             ...