BUSINESS
JPMorgan advising First Republic on another fundraise
First Republic's share price has plummeted 90 per cent to record lows over the past month, as investors scrutinised lenders with a high amount of uninsured depositors a response to the collapse of Silicon Valley Bank and Signature Bank earlier this month, CNN reported.
RBI directs all banks to keep branches open till March 31 for annual closing
In a letter to all agency banks on Tuesday, the RBI said that all government transactions done by agency banks for 2022-23 must be accounted for within the same financial year. "Accordingly, all agency banks should keep their designated branches open for over-the-counter transactions related to government transactions upto the normal working hours on March 31, 2023," the central bank letter stated.
Total 6,199 Corporate Insolvency Resolution Process started, 611 successful: Government
As of December 2022, 611 CIRPs have resulted in resolution, where the creditors have recovered 30.40 per cent of their admitted claims, Minister of State for Corporate Affairs, Rao Inderjit Singh told the Rajya Sabha in a written reply to a question seeking to know the number of companies which have utilized the provisions of Insolvency and Bankruptcy Code (IBC), 2016 since it came into force.
Fears of heavy job losses growing after UBS takeover of Credit Suisse
The shotgun wedding hammered out between the two Swiss banks last weekend will create a 120,000-strong financial institution - and it already seems inevitable that the workforce will shrink, The Guardian reported. Switzerland's financial sector already anticipating a heavy hit from the contentious takeover, with the Swiss Bank Employees Association warning on Monday that "the jobs of very many employees are at stake", it said.
Moody's downgrades outlook for UBS to negative
Moody's has affirmed UBS's current credit ratings but lowered the outlooks on its long-term deposit and senior unsecured ratings to negative from stable, The Guardian reported. A negative outlook is an indication that a rating may be lowered in future. The rating agency says it took this decision following UBS's deal to buy Credit Suisse for 3bn Swiss francs.
India emerged stronger from pandemic years, says RBI report
The "State of the Economy" chapter of Reserve Bank of India's (RBI) monthly bulletin for March 2023, released on Tuesday, noted that "on the supply side, agriculture is into a seasonal uptick, industry is emerging out of contraction and services have maintained momentum. Consumer price inflation remains high and core inflation continues to defy the distinct softening of input costs".
How poor governance has devastated Pakistan's once robust textile sector
The industry has now urged the State Bank of Pakistan, the country's central bank to extend the moratorium on debt under TERF (Temporary Economic Refinance Facility) and LTFF (long-term facing facilities) from June 1 to December this year or else it may lead to large defaults. The two schemes - TERF and LTFF were launched by the erstwhile Imran Khan government to boost investments in the textile sector.
US bank First Republic's shares crash more than 46%
As the growing banking crisis spread into a new week, the credit rating of the regional bank was downgraded deeper into junk status by S&P Global, the Guardian reported. The agency said that the bank, which caters to wealthy clients, probably faced "high liquidity stress with substantial outflows". US officials are studying how to temporarily expand the protection offered to banking customers by Federal Deposit Insurance Corp (FDIC) to include all deposits, going beyond the current $250,000 cap, Bloomberg reported.
Inflation likely to be determined by heatwaves, El Nino prospects: Monthly economic review
In its monthly economic review for the month of February 2023, released on Monday, the finance ministry, quoting forecasts by various international organisations, has said that inflation in India will moderate in 2023-24 compared to 2022-23, and is likely to remain in the range of 5 per cent to 6 per cent, with risks evenly balanced.
Delhi High Court grants six weeks to RBI to respond to PIL on Uniform Banking Code
Filed as a Public Interest Litigation (PIL) by Advocate and BJP leader Ashwini Kumar Upadhyay, the plea brings up the need for a Uniform Banking Code for foreign exchange transfers to regulate benami transactions and the creation of black money. A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad granted time to RBI for filing a response.
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