Connect with us

Business

Hong Kong regulator up-scales supervision of PNB’s HK branch

Published

on

PNB

State-owned Punjab National Bank (PNB) today said the Hong Kong Monetary Authority (HKMA) has enhanced supervision of its Hong Kong branch and has asked it “not to proactively solicit customer deposits”.

“…In view of the capital position of the bank as at March 31, 2018, being below the regulatory requirement (including countercyclical buffer) of Reserve Bank of India, Hong Kong Monetary Authority (HKMA) is enhancing the supervisory arrangements on our Hong Kong branch (PNB HK),” PNB said in a regulatory filing.

The scam-hit bank said PNB HK is required to maintain high-quality liquid assets (HQLA) in Hong Kong equivalent to 100 per cent of unpledged deposits.

“The above HQLA should be deposited with PNBHK’s sub-account opened/to be opened with the Central Moneymarkets Units,” it added.

PNB also that said as per the enhanced supervisory arrangement, its Kong branch is required “not to proactively solicit customer deposits while transactional deposits such as pledged deposits for commercial loans would be excluded from this supervisory arrangement”.

This branch is also required to maintain a position of “net due to” its head office, other branches and any direct or indirect subsidiaries and associates of the bank.

“The above supervisory arrangements are applicable only to our Hong Kong branch and will not have any material impact on the bank’s operations in Indian and other overseas centres, PNB said.

In February this year, PNB had detected a fraud of over Rs 14,000 crore wherein billionaire jeweller Nirav Modi and associates had allegedly acquired fraudulent letters of undertaking (LoUs) from one of the branches of PNB for overseas credit from other Indian lenders

Also read: PNB failed to check Nirav Modi-Mehul Choksi fraud, says RBI

The scam was perpetrated by way of fraudulent LoUs generated in the name of Punjab National Bank.

Last month, PNB had posted its largest-ever quarterly loss of Rs 13,416.91 crore for January-March period, mainly on account of high provisioning for bad loans.

Business

Sensex rises over 250 pts, Nifty reclaims 11,400 mark

Published

on

By

Sensex

Mumbai | The benchmark Sensex staged a strong comeback in early trade today gaining over 250 points on widespread buying by participants in metal, realty and banking stocks after the US and China agreed to resume trade talks last night.

Taking positive cues from global equities, the 30-share index was trading higher by 262.91 points, or 0.69 percent, at 37,926.47. The index had lost 188.44 points in the previous session. The NSE Nifty reclaimed the 11,400 mark, by rising 62.15 points, or 0.55 percent, to 11,447.20.

All sectoral indices, led by metal, FMCG, realty, auto, banking, PSU, healthcare, infrastructure, power, capital goods, oil and gas and IT, recovered up to 1.38 percent.

Major gainers were Vedanta, Tata Steel, ITC, Yes Bank, Adani Ports, Tata Motors, Axis Bank, SDBI, ICICI Bank, RIL and Asian Paints, rising up to 2.13 percent

While, Wipro, Bharti Airtel, Bajaj Auto and HDFC were trading in the negative zone, falling up to 0.70 percent.

Domestic institutional investors (DIIs) bought shares worth a net of Rs 133.78 crore while foreign portfolio investors (FPIs) sold shares worth a net of Rs 825.08 crore yesterday, provisional data showed.

Investor sentiment turned positive after the US and China agreed to resume trade talks last night, traders said.

Amid a stalemate in the trade war with the US, China will send a top official to Washington this month to resume the high-level dialogue to resolve the deadlock over President Donald Trump’s demand to drastically reduce the USD 375 billion trade deficit.

Elsewhere in Asia, Japan’s Nikkei rose 0.44 percent and Hong Kong’s Hang Seng was up 0.46 percent, while Shanghai Composite Index was down 0.39 percent.

US stocks rallied to close higher yesterday. The US Dow Jones Industrial Average ended 1.58 percent higher yesterday.

Continue Reading

Business

Rupee plummets to historic low of 70.09 on Turkish lira collapse

Published

on

By

Mumbai  |  Reversing all its early gains, the rupee today collapsed to a lifetime low of 70.09 against the US dollar, falling 16 paise amid fears that Turkish economic crisis could lead to a global financial meltdown.

The ongoing currency turmoil in Turkey has dampened investors’ sentiments globally. Investors are turning to the dollar as a safe haven with Turkeys currency lira crisis continuing since the last week.

Yesterday, the rupee had plunged by Rs 1.08, or 1.57 per cent, to a record low of 69.93 against the US currency.

Continue Reading

Business

Rupee recovers from life low, up 23 paise

Published

on

By

Rupee

Mumbai | The rupee recovered from all-time low of 69.91 and strengthened by 23 paise to 69.68 against the US dollar in opening trade at the interbank foreign exchange market today on some macroeconomic boost.

Yesterday, the rupee had plunged by Rs 1.08, or 1.57 percent, to a record low of 69.91 against the US currency amid fears that Turkish currency turmoil could turn out into global financial crisis.

In a ray of hope for domestic economy, latest data showed that retail inflation fell to 9-month low of 4.17 percent in July on declining vegetable prices which may prompt the Reserve Bank to pause interest rate hike in its next monetary policy review.

In the last two reviews, the RBI had raised the key repo rate by 0.25 percent each on inflationary concerns. The next bi-monthly policy is to be unveiled on October 5. Stock markets opening with gains also boosted the domestic currency, dealers said. However, the dollar’s strength against some currencies overseas capped the gains of the domestic unit.

Meanwhile, the benchmark BSE Sensex recovered 184.93 points, or 0.49 percent, to 37,829.83 points in early trade today.

Continue Reading

Popular Stories