16 - 31 March 2020 The Asian Independent

2
16-03-2020 to 31-03-2020 ASIA
www.theasianindependent.co.uk
Yes Bank allots shares to SBI, 7 private banks
Mumbai : Crisis-hit Yes Bank has
allotted 1,000 crore equity shares to
seven private banks and the state-run
State Bank of India for a total consideration
of Rs 10,000 crore.
IDFC First Bank is the latest to
enter the SBI-led rescue team with an
investment of Rs 250 crore.
Investment by private banks has so far
reached Rs 3,950 crore.
In a regulatory filing, Yes Bank
said: "395,00,00,000 equity shares
have been issued and allotted to the
(private) investors for an aggregate
subscription consideration of Rs
39,50,00,00,000, calculated at a share
price of Rs 10 per equity share comprising
of Rs 2 face value and Rs 8
premium."
Further, SBI which would hold 49
per cent stake in the cash-strapped
lender has been allotted 605 crore
shares for Rs 6,050 crore. Under the
Reserve Bank-proposed reconstruction
scheme for Yes Bank, SBI shall
not reduce its holding below 26 per
cent before completion of three years
from March 14.
SBI, the largest public sector bank
in the country, has in fact committed
Rs 7,250 crore. On Thursday, it said
Team AI :
Devinder Chander
Editor-in-chief
Columnists
V.B. Rawat
Farzana Suri
Arun Kumar
Rahul Kumar
Harminder K. Bhogal
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that its Executive Committee of
Central Board (ECCB) has approved
the purchase of 725 crore shares in Yes
Bank at Rs 10 per share.
Among the private players, ICICI
Bank and Housing Development
Finance Corporation committed Rs
1,000 crore each. Axis Bank and
Kotak Mahindra Bank committed to
invest Rs 600 crore and Rs 500 crore
New Delhi : The new rules for debit and
credit cards to increase security and reduce
frauds kick in from Monday.
In January, the Reserve Bank
of India (RBI) had issued
new rules to improve user
convenience and increase the
security of card transactions.
These rules will help in curbing
the misuse of debit and
credit cards. RBI has directed
banks to allow only domestic
card transactions at ATMs
and PoS terminals in India at
the time of issuance/reissuance of card. For
international transactions, online transactions,
card-not-present transactions and contactless
transactions, customers will have to separately
set up services on their card. These rules
will be applicable for new cards from March
16. Those with old cards can
decide whether to disable
any of these features. As per
the existing rules, these services
used to come automatically
with the card, but now
it will start at the request of
the customer.
Debit or credit card customers
who have not yet
done any online transaction,
contactless transaction or
international transaction with the card, then
these services on the card will automatically
stop from March 16.
The Reserve Bank has asked all banks to
Mangaluru: The Karnataka Bank has reached out
to its shareholders to allay any fear and panic about the
safety of deposits and health of the Bank, and not to be
carried away by any misleading and concocted reports
on India Today channel about the safety of the Bank
published and circulated with malicious intent.
In a communication to shareholders following
media report of a M-cap to deposit ratio,
Mahabaleshwara M. S., Managing Director and CEO
said the bank is committed to continue efforts to
strengthen the fundamentals of the bank and also to
create value enhancement for all stakeholders.
"We remain committed in further strengthening the
CRAR of the Bank by augmenting the capital through
Qualified Institutions Placement (QIP)for which we are
thankful to our shareholders for their approval", the MD
said. Following the moratorium imposed on the Yes
Bank by Reserve Bank of India on March 5, a report by
a television channel India Today, was telecasted on
safety of some banks including Karnataka Bank, "using
an absurd and flawed so called M-Cap to deposit ratio".
Later this report was also circulated widely in social
media. "The above report by TV Channel India Today
infused a lot of anxiety and panicky situation among
the depositors in particular and other stakeholders in
respectively.
Both Federal Bank and Bandhan
Bank have been allotted shares for Rs
300 crore each as per their commitment
and IDFC First Bank has been
issued equity shares in the crisis-ridden
bank for a consideration of Rs 250
crore.
The private investors including the
banks will be mandated to have a lockin
period for 75 per cent of their
investment in the bank. The remaining
25 per cent of the shareholding allotted
to each investor shall be freely
transferable and shall not be subject to
any lock-in.
The government on Saturday notified
the scheme of reconstruction for
cash-strapped Yes Bank Ltd., paving
the way for the lender to resume full
New rules for debit and credit
cards kick in from Monday
provide mobile banking, net banking option to
enable limit and enable and disable service 24
hours a day, seven days a week.
If the customer makes any change in the
status of the card, the bank will alert the customer
through SMS/email and send the information.
Issuers shall provide to all cardholders
facility to switch on/off and set/modify
transaction limits (within the overall card
limit, if any, set by the issuer) for all types of
transactions -- domestic and international, at
PoS/ATMs/online transactions/contactless
transactions, etc., The provisions, however,
are not mandatory for prepaid gift cards and
those used at mass transit systems. The latest
instructions come in the wake of rising
instances of cyber frauds and the huge
increase in the use of cards.
general and also raised a doubt about the safety of the
Bank", the bank said.
"The aforesaid report by television channel is totally
incorrect, mischievous and likely to mislead the
public and depositors by creating shadow of doubt
about safety of the Bank", the statement said. "With a
view to allay any fear and panic about the safety of
deposits and health of the Bank, we have issued press
releases dated March 11, 2020 and also clarified the
same in social media. The Bank has also taken appropriate
legal action against such incorrect and misleading
publications", Karnataka Bank has said.
The bank said that the very next day of telecast of
media report, Krishnamurthy Subramanian, Chief
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operations.
The private sector bank has been
put under a moratorium by the
Reserve Bank of India since March 5
which has restricted deposit withdrawals.
Under the terms of the notified
scheme, this moratorium will now
be lifted at 6 p.m. on March 18.
According to the government notification,
Yes Bank's authorised share
capital will be revised upwards from
Rs 1,100 crore to Rs 6,200 crore. The
number of total equity shares will
stand altered to 3,000 crore of Rs 2
each aggregating to Rs 6,000 crore.
Authorised preference share capital
shall continue to be Rs 200 crore.
The government has also decided to
exempt all investors in the Yes Bank
from payment of capital gains tax for
any deemed profit or gains on account
of subscription of shares.
The office of the administrator of
Yes Bank shall also stand vacated after
seven days from the cessation of
moratorium and the new Board will
take over the bank.
Prashant Kumar, former SBI CFO,
and the current administrator of Yes
Bank may take over as Managing
Director and CEO of the bank.
Punjabi language classes
part of after-school
program in California
San Francisco : Students in Fresno, California will
now be able to learn the Punjabi language as part of an
after-school program, it was reported.
The Fresno Unified School District (FUSD)
launched the new program in response to the Global
California 2030 Initiative, which besides Punjabi, will
also teach Arabic, Spanish, French and Mixteco, the
India-West news reported.
Currently, the languages are taught at five elementary
schools, with one of the languages taught at each
school.
The statewide 2030 goals for the initiative, as per the
school publication, are to triple the number of students
who earn the seal of biliteracy, quadruple the number of
bilingual programs, establish 100 state-approved bilingual
teacher preparation programs and double the number
of teachers authorized to teach in two languages.
Karnataka Bank allays fear and panic about safety of deposits
Economic Advisor to Government of India, Governor,
RBI, Chairman of SBI (who is also the Chairman of
Indian Banks Association) and other experts in the
matter clarified that so called M-cap to deposits ratio is
non-existent in the financial world and nowhere used
in the world to measure the health of banks. In fact, the
solvency and strength of banks is measured globally
by referring to Capital to Risk Weighted Assets ratio
i.e. CRAR only.
"The CRAR of the Bank as per audited financials as
on March 31,2019 was at 13.17 per cent which is well
above the CRAR of 10.825 per cent prescribed by
Reserve Bank of India. It is amply clear that your Bank
is well capitalised indicating solvency of the Bank and
with sound financial position measured among other
parameters like Net NPA (2.95 per cent) and Provision
Coverage Ratio (PCR) (58.45 per cent) as on March
31, 2019. "We, hereby confirm and reassure our depositors,
shareholders and other stakeholders that your
Bank is professionally managed and has a proven track
record of consistent profit. The lending philosophy is
largely assets based financing with adequate security
cover. We are a financially sound and well capitalised
Bank marching towards celebrating our centenary year
in 2024", Karnataka Bank said.