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WASHINGTON/SINGAPORE, March 13 (Reuters) - U.S. authorities launched emergency measures on Sunday to shore up confidence in the banking system after the failure of Silicon Valley Bank (SIVB.O) threatened to trigger a broader financial crisis. Silicon Valley Bank (SVB), a mainstay for the startup economy, was a product of the decades-long era of cheap money, with unique risks that made it especially vulnerable. With the Fed poised to continue raising interest rates, investors said the financial system may not be fully out of the woods just yet. Goldman Sachs' analysts said they no longer expect it to raise rates at that meeting, amid the stress in the banking sector. A senior U.S. Treasury official said the actions taken would protect depositors, while providing additional support to the broader banking system, but officials and regulators were continuing to monitor financial system stability.

March 12 (Reuters) - State regulators closed New York-based Signature Bank (SBNY.O) on Sunday, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank (SIVB.O) in a collapse that stranded billions in deposits. All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the U.S. Treasury Department and other bank regulators said in a joint statement. Signature's failure followed Silicon Valley Bank's Friday shutdown, the second largest in U.S. history behind Washington Mutual, which collapsed during the 2008 financial crisis. Signature Bank's depositors and borrowers will automatically become customers of the bridge bank, the FDIC said. Signature Bank cut ties with Trump in 2021 following the deadly Jan. 6 riots on Capitol Hill, and urged Trump to resign.

The U.S. Treasury Department and other bank regulators said in a joint statement on Sunday that all depositors of Signature Bank will be made whole, and "no losses will be borne by the taxpayer." Signature Bank reported deposit balances totaling $89.17 billion as of March 8. Representatives for Signature Bank did not immediately respond to a request for comment. The FDIC on Sunday established a "bridge" successor bank to Signature Bank, which will enable customers to access their funds on Monday. Signature Bank's depositors and borrowers will automatically become customers of the bridge bank, the FDIC said.

The Federal Deposit Insurance Corporation (FDIC), which was appointed receiver, was trying to find another bank over the weekend that was willing to merge with Silicon Valley Bank, people familiar with the matter said on Friday. However, it was not clear if regulators would have political support to throw a lifeline to the bank, which catered to Silicon Valley startups and investors. Silicon Valley Bank had an unusually high level of deposits that were not covered by the FDIC's guarantees, which are capped at $250,000. Signature Bank, First Republic Bank, PacWest Bank and Charles Schwab did not immediately respond to requests for comment. "Silicon Valley had a unique business model that was less dependent on retail deposits than a traditional bank."

WASHINGTON/NEW YORK, March 11 (Reuters) - The rapid unraveling of SVB Financial Group (SIVB.O) has blindsided the banking industry after years of stability. Investors and customers now face a nervous wait to see if SVB bank finds a buyer quickly. During the 2008 financial crisis, Washington Mutual found a buyer immediately. One area of particular focus could be larger regional banks, which saw some rule relief under the Trump administration. U.S. banking regulators said in October they were considering new requirements on large regional banks, including holding more long-term debt to weather losses.

NEW YORK , March 7 (Reuters) - Bank of America Corp's (BAC.N) Chief Executive Officer Brian Moynihan had a clear message for shareholders on Tuesday: "We are capitalists." The proclamation from the head of the second-largest U.S. lender might seem obvious, but comes at a time when Wall Street titans face more criticism for embracing environmental, social and governance (ESG) considerations. The word "capitalism" is mentioned 22 times in BofA's latest annual report spanning 222 pages, rising from 16 times a year earlier. Still, the CEO acknowledged there are concerns about whether companies share profits or pay people fairly and equitably. The lender outlined its ESG goals in the report, including a pledge to achieve net zero greenhouse gas emissions by 2050 and deploy $1.5 trillion in sustainable finance by 2030.

☆ Analysis: Goldman Sachs faces hard sell for its consumer assets
▼ + stars: | 2023-03-01 | by ( Saeed Azhar | ) www.reuters.com time to read: +5 min

NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc (GS.N) is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at 'strategic alternatives' for the consumer business, a signal of a possible sale. Solomon had championed Goldman's foray into consumer banking since taking the reins at the Wall Street powerhouse in 2018. The consumer operations largely failed to gain traction against well-established consumer banks and lost billions of dollars due to credit provisioning. Mike Mayo, an analyst at Wells Fargo, wrote in a note that the key question about Goldman's consumer business is: "who would be willing to buy it, and at what price?"

The central bank said that its policy stance remains focused on the withdrawal of accommodation, with four out of six members voting in favour of that position. Reuters GraphicsThe monetary policy committee (MPC), comprising three members from the central bank and three external members, raised the key lending rate or the repo rate (INREPO=ECI) to 6.50% in a split decision. We have to remain unwavering in our commitment to bring down CPI headline inflation," RBI Governor Shaktikanta Das said, while announcing the committee’s decision. In a poll conducted ahead of the federal budget on Feb. 1, more than three-quarters of economists, 40 of 52, had expected the RBI to raise the repo rate by 25 bps. Das said that the inflation-adjusted, real interest rate remains below the pre-pandemic levels and liquidity remains surplus, even though it is lower than during the pandemic.

☆ Exclusive: Indian refiners pay traders in dirhams for Russian oil
▼ + stars: | 2023-02-03 | by ( Nidhi Verma | ) www.reuters.com time to read: +3 min

Previous attempts by Indian refiners to pay traders for Russian crude in dirhams through Dubai banks failed, forcing them to switch back to the U.S. currency. Indian refiners typically buy Russian crude from traders at a price that includes delivery to India. An invoice for such a deal seen by Reuters showed traders asking for an average crude price including freight for Urals crude. Indian refiners mostly buy Russian crude from Dubai-based traders including Everest Energy and Litasco, a unit of Russian oil major Lukoil (LKOH.MM). India's oil secretary Pankaj Jain last month said Indian companies were not facing any problems in paying for Russian oil as the latest actions by the West do not impact the trade settlement mechanism.

But the market turmoil led its flagship Adani Enterprises (ADEL.NS) to abandon a $2.5 billion secondary share offering on Wednesday, prompting concerns at lenders. 1 lender, SBI says the bank has about 270 billion rupees ($3.3 billion) in loans to Adani Group. Bank debt forms 38% of the total debt of 2.1 trillion rupees at the top five Adani companies, according to a Jefferies report. Senior executives at six other Indian lenders, with exposure to Adani companies, told Reuters they had also decided to tighten the credit approval process for Adani. India's central bank has asked local banks for details of their exposure to Adani companies, Reuters reported on Thursday, citing government and banking sources.

☆ India cenbank asks country's banks for details of exposure to Adani group - sources
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: 1 min

NEW DELHI/MUMBAI, Feb 2 (Reuters) - India's central bank has asked local banks for details of their exposure to the Adani group of companies, government and banking sources said on Thursday. The Reserve Bank of India did not immediately respond to a request for comment. The sources were speaking to Reuters and declined to be named because they were not authorised to speak to the media. Shares in Adani group of companies plunged on Thursday after the tycoon Gautam Adani-led conglomerate shelved a $2.5 billion share sale amid a turbulent market, citing the need to insulate investors from potential losses. Reporting by Aftab Ahmed and Nupur Anand, writing by Sudipto Ganguly; editing by Miral FahmyOur Standards: The Thomson Reuters Trust Principles.

MUMBAI, Jan 27 (Reuters) - Some of India's leading public sector banks said on Friday their exposure to the Adani Group was within the limits prescribed by the central bank, assuaging fears of default risks from their exposure to the conglomerate. Public sector banks in India have in the past been hit by massive corporate defaults. The board will take any decision on the bank's exposure to the group only after that, the official said. The Adani Group comprises the flagship Adani Enterprises Ltd (ADEL.NS), as well as Adani Ports and Special Economic Zone Ltd (APSE.NS), Adani Power Ltd (ADAN.NS), Adani Green Energy Ltd (ADNA.NS) and Adani Transmission Ltd (ADAI.NS). For public sector banks, the debt is at 0.7% of total loans and for private banks, it is at 0.3%.

☆ India's UltraTech Cement quarterly profit falls 38%
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +1 min

CHENNAI, Jan 21 (Reuters) - India's top cement maker, UltraTech Cement (ULTC.NS), reported a 38% decrease in quarterly profit on Saturday, dented by a surge in expenses. Profit for the three months through December fell to 10.62 billion rupees ($131.2 million) from 17.10 billion rupees the same period a year earlier, UltraTech said in an exchange filing. Expenses surged to 141.23 billion rupees from 114.22 billion rupees. Competition is rising in India's cement industry, with manufacturers increasing capacity to stave off the sector's newest entrant, the Adani Group. Shares in UltraTech closed marginally lower at 7,177.15 rupees on Friday.

☆ India's Yes Bank reports surprise 80% plunge in quarterly profit
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Jan 21 (Reuters) - India's Yes Bank (YESB.NS) reported a surprise 80% plunge in quarterly profit on Saturday as provisions for bad loans increased. Net profit fell to 515.20 million rupees ($6.36 million) for the three months through December from 2.66 billion rupees in the same period a year earlier. Provisions increased to 8.44 billion rupees from 5.82 billion rupees the previous quarter. Yes Bank in December completed the transfer of bad loans worth 480 billion rupees to private equity firm J.C. Bank loans rose nearly 15% in the fortnight to Dec. 30 from a year earlier, outpacing a 9.2% increase in deposits, according to the latest data from the Reserve Bank of India.

☆ Six injured in Jammu blasts before India opposition leader Gandhi arrives
▼ + stars: | 2023-01-21 | by ( Fayaz Bukhari | ) www.reuters.com time to read: +2 min

Modi wants to take control of India's part of the Muslim-majority Himalayan region of Jammu and Kashmir, hotly contested by Muslim-majority Pakistan. Gandhi's march, which has been better received by the public than expected, is expected to culminate in Srinagar later this month. The first blast occurred around 0445 GMT, followed by another explosion, said another police official, who asked not be named because he is not authorised to speak to the media. Jaswinder Singh, who saw the first blast, said it occurred in a vehicle that was sent to a workshop for repairs. “There was a big bang and when I came out, I saw a blast had ripped apart a car.

☆ India's Kotak Mahindra Bank's Oct-Dec net profit jumps 31%
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Jan 21(Reuters) - India's Kotak Mahindra Bank (KTKM.NS) on Saturday reported a 31% increase in standalone net profit for the October-December quarter, aided by a strong topline and healthy loan growth. The private lender's standalone profit stood at 27.92 billion rupees ($344.2 million) compared with 21.31 billion rupees in the same period last year. Net interest income, the difference between interest earned and interest expended, rose 30.4% from a year ago to 56.53 billion rupees, while other income rose nearly 54%. The net interest margin was at 5.47% as compared to 4.62% last year. As of Dec. 31, the bank held Covid-related provisions worth four billion rupees.

☆ India's Yes Bank has 'strong' grounds to appeal ATI bonds court order, CEO says
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Jan 21 (Reuters) - India's Yes Bank (YESB.NS) has "strong" legal grounds to appeal against a court order quashing the write-off of its additional Tier-1 (AT1) bonds, Chief Executive Officer Prashant Kumar said on Saturday. "The judgment in itself is not questioning the regulatory guidelines in terms of writing off (AT1 bonds). "We have strong legal advises and opinions which interpret the issue in a different way and that makes a strong ground for us to appeal in the Supreme Court." The bonds were written off as part of a restructuring plan to rescue Yes Bank in March 2020. Yes Bank said in a stock exchange filing late on Friday it is in the process of preparing an appeal to the Supreme Court.

☆ India ICICI Bank’s profit jumps 34% in October-December
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Jan 21(Reuters) - India's ICICI Bank (ICBK.NS) on Saturday reported a 34.2% increase in net profit for the October-December quarter, on the back of improved revenues and healthy loan growth. Net profit for the quarter was 83.12 billion Indian rupees ($1.03 billion) up from 61.94 billion rupees in the same quarter a year earlier. That was in line with analysts' forecast of 81.25 billion rupees, according to Refinitiv IBES data. Net interest income, the difference between interest earned and paid, rose 34.6% to 164.65 billion rupees from 122.36 billion rupees last year. However, provisions and contingencies increased to 22.57 billion rupees from 16.44 billion rupees in the September quarter.

☆ India's Adani Group plans to demerge more business; dismisses debt concerns
▼ + stars: | 2023-01-21 | by ( M. Sriram | ) www.reuters.com time to read: +2 min

MUMBAI, Jan 21 (Reuters) - India's Adani Group, controlled by billionaire Gautam Adani, plans to spin off more businesses by 2028 and dismisses any debt concerns, the group's chief financial officer told Reuters. The Adani group has spun off its power, coal, transmission and green energy business in the last five-seven years. The company plans to use the money to fund green hydrogen projects, airport facilities and Greenfield expressways, besides paring its debt, it earlier said. CreditSights, part of the Fitch Group, described the Adani Group in September 2022, as "overleveraged" and said it had "concerns" over its debt. "Nobody has raised debt concerns to us.

MUMBAI, Jan 6 (Reuters) - Loss-making Indian telecom operator Vodafone Idea has sought at least 70 billion rupees ($846 million) in emergency funds from local banks, which are however reluctant to extend fresh loans, four sources familiar with the matter said. "Without that (capital injection) it looks difficult for the company to ...survive," said one top official at a state-owned bank. Vodafone Idea (VODA.NS), the telecom ministry, and State Bank of India (SBI.NS) - the country's largest lender which the company has approached for financing - did not immediately respond to Reuters requests for comment. A feasibility study shared by Vodafone Idea with its bankers suggested the business might need a radical restructuring in order to survive, several of the sources said. An equity conversion by the government would be expected to raise its stake in the company to beyond 30%.

☆ India cenbank chief says next financial crisis will come from private cryptocurrencies
▼ + stars: | 2022-12-21 | by ( ) www.reuters.com time to read: 1 min

MUMBAI, Dec 21 (Reuters) - India's central bank chief on Wednesday warned that the next financial crisis will come from private cryptocurrencies adding that he still holds the view that cryptocurrencies should be prohibited. Reserve Bank of India governor Shaktikanta Das also added that cryptocurrencies have no underlying value and pose risks for macroeconomic and financial stability. Reporting by Swati Bhat and Siddhi Nayak; Writing by Nupur Anand; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

The monetary policy committee (MPC), comprising three members from the RBI and three external members, raised the key lending rate or the repo rate (INREPO=ECI) to 6.25% in a majority decision. "The MPC was of the view that further calibrated monetary policy action was warranted to keep inflation expectations anchored, break core inflation persistence and contain second round effects,” Das said as he announced the monetary policy committee's decision. We see a possibility of another 25 bps rate hike before a prolonged pause," Upasna Bhardwaj, chief economist at Kotak Mahindra Bank said. A 6.8% growth (rate) is robust," Das said. The Indian rupee dipped against the dollar after the policy decision and comments on inflation, while government bond yields rose.

☆ India cenbank says digital currency transactions to stay largely anonymous
▼ + stars: | 2022-12-07 | by ( Nupur Anand | ) www.reuters.com time to read: +2 min

India started the pilot project for its digital currency, or e-rupee, from Nov 1, when it was opened for initial trial. Then only being used by banks for settlements with each other, the scope of the project was expanded to include consumers and retailers-led transactions from Dec. 1. "E-rupee is money, UPI is a payment method," RBI's Sankar said. "Digital currency is like payment of cash, it is possible that two private entities can provide wallet features and money can move in between them. That is not possible with UPI which has to be from one bank to the other," he said, adding that e-rupee provides privacy unlike UPI.

☆ India extends deadline to levy cap on digital payment transactions
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Dec 2 (Reuters) - India has decided to extend the deadline on capping the share of digital payment transactions by about two years to Dec. 31, 2024, the National Payments Corporation of India (NPCI) said on Friday. The NPCI had said in late 2020 that payment firms will not be allowed to process more than 30% of the total volume of transactions on UPI from Jan 1. The move comes as a breather to companies like Walmart Inc's (WMT.N) PhonePe and Alphabet Inc's (GOOGL.O) Google, which are among the leading digital money transfer apps in the country. They are powered by the state-backed United Payments Interface (UPI) framework, which facilitates peer-to-peer money transfer online through mobile apps. Reporting by Nupur Anand; Editing by Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

MUMBAI, Dec 1 (Reuters) - A month into India's pilot project for using an official digital rupee for inter-bank and institutional transactions, stakeholders are seeing no benefits, several bankers said. But in the initial trial banks have been using it for settlements with each other - with no particular advantage, according to bankers. Another issue is that, since e-rupee transactions do not wholly replace those using established procedures, they add to banks' accounting work. It would also offer a safer means of digital payment in retail use, the RBI said. UPI, an instant real-time consumer payments system that lets users transfer money between banks without disclosing account details, has been a factor in India's soaring digital payment volume.

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