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Sebi to meet rating agencies on faster access to default data
Posted on 14th February 2018
MUMBAI: Capital market regulator Sebi will meet credit rating agencies this week to explore ways to have quicker access to information on loan defaults by corporates. With the Reserve Bank of India (RBI) having so far refused to share the sensitive information beyond the banking industry, Sebi is keen that all rating agencies take membership of credit information companies (CICs) to obtain default data that banks have to report to CICs.

Many corporates as well as banks are reluctant to share default information with rating agencies. The only agency that receives the data on a daily basis is Central Repository of Information on Large Credit (CRILC), a RBI controlled entity, which only gives banks (but not other lenders and market participants like NBFCs) access to the data.

Compared to this, CICs typically come to know about defaults after a month or a fortnight.

“The regulator may discuss ways to improve the quality of data, its robustness, whether frequency can improve and how rating agencies can use the information. When a loan is overdue for a day (described as SMA-0), banks will come to know about it immediately. However, if the company services the overdue loan interest a week later and regularises the loan account, it will not show up as a’default’ when information is passed on to CIC and subsequently to rating agencies,” said an industry official .

According to stock exchange listing guidelines, publicly traded companies are required to immediately share information on default on debt instruments like debentures and bonds. But, such disclosures are not mandatory for default on loans.

Last year, Sebi had asked rating agencies to explain the reasons that lead to sudden downgrade of RCom debt securities and loans by several notches and whether investors of the troubled telco could have been alerted through early rating actions. After rating agencies spelt out that they come to know of loan defaults only after two to three months – with neither banks nor corporates cooperating – Sebi flagged off the importance of immediate dissemination of default information. The central bank, however, felt that disclosing SMA-0 data could further destabilise the borrower.

In banking parlance, loans are categorised as SMA-0 when interest or principal is overdue for less than a month; SMA-1 when payment is overdue for less than 2 months but more than a month; and SMA-3 when it is overdue for 2-3 months. Rating agencies say they can do a meaningful job only when information is received soon after there is a default.

Related Companies: Securities and Exchange Board of India ( SEBI )   

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Infosys deploys digital banking solution at Australian Military Bank
Posted on 25th September 2018
New Delhi: IT major Infosys on Tuesday said it has deployed its Finacle banking solutions suite for Australian Military Bank (AMB).

The comprehensive digital banking solution stack has been implemented in a fully software-as-a-service (SaaS) model, hosted out of Infosys datacentres in the country, Infosys said in a statement.


Another LIC bailout in offing? IL&FS will not be allowed to collapse, all options open, says LIC chief
Posted on 25th September 2018
State-owned insurer LIC Tuesday said it will not allow debt-ridden IL&FS to collapse and explore options to revive it.T he Life Insurance Corporation (LIC) has the largest shareholding in IL&FS. IL&FS Financial Services, a group company of IL&FS defaulted on one of its commercial paper (CP) issuances due for repayment on Monday. This was the third default by the company.

A tale of two seats on Air India 184 - one of the longest long-hauls there is
Posted on 25th September 2018
'Are you sure you want me to book you on a return ticket on Air India?’ Anurag, my ever-so-helpful and slightly-alarmed travel agent asked. I said yes. ‘It’s not all as bad as you make it out to be.’ I’d been on Air India flights before, that too economy, how bad could business class be? It is our national carrier, they fly 777s and 787s - business class promises fully flat seats where you could expect to be relatively comfortable and even get in a night’s sleep.

TCS will conduct online test to hire engineer graduates
Posted on 25th September 2018
Attention all engineer graduates! If you want to work with TCS, then from now nwards you are required to clear an online test. According to a Times of India report, the tech firm is all set to digitize the hiring process. TCS is mulling over dropping the process of visiting campuses and hiring from colleges directly to be more efficient.

Indian Oil sees India's oil demand surging to 500 mn tonnes per yr by 2040
Posted on 25th September 2018
India's crude oil demand is forecast to grow to 500 million tonnes per year by 2040, but persistent increases in oil prices might act as a dampener for the rate of growth, Partha Ghosh, an executive director at Indian Oil Corp said on Tuesday.

That would be equivalent to around 10 million barrels per day (bpd), up from about 4.7 million bpd in 2017.


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