Money & Banking
'Improving loan origination quality must for securitisation market to develop'
Chennai : Securitisation of loan accounts is one way of improving liquidity of banks' assets but the development of securitisation market depends on improving the quality of loan origination, said a senior official of the Reserve Bank of India (RBI) here on Friday.
 
"For the securitisation markets to develop, we need to improve the quality of loan origination, which solely depends upon 'ownership of decisions' relating to loan origination," said deputy governor R.Gandhi.
 
He was speaking at the 'Union Bank Conference on Financial Stability, Credit distress and Economic Growth: The way forward' at the Great Lakes Institute of Management near here.
 
Simply put, securitisation is the sale of loan accounts to another player for a sum. The loan accounts thus transferred will not figure in the books of the seller.
 
According to Gandhi, directed lending in whatever form and outsourcing the loan appraisal function dilutes the concept of owning up this crucial decision of loan origination and contended that those who outsource the loan origination process have no commitment to the loan quality.
 
He also said central government - the owner of public sector banks - will be more than compensated by increased revenues and better valuations if the costs of social banking is provided through budgetary support after costing them on commercial principles.
 
Noting people perceive the public sector banks are relatively immune to destabilising impacts owing to government's support, he said that the same sense of safety evades the government-owned banks when it comes to their valuations which in turn has an efficiency imperative - when judged by their returns on asset or capital employed.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Income tax office cautions taxpayers about fake emails
New Delhi : India's income tax department on Friday cautioned taxpayers not to share their card personal identification numbers (PIN) or mail passwords, clarifying that it never requests such details over email.
 
In a statement, the department said that taxpayers must be are aware the department does not seek confidential or financial information of the taxpayers over email.
 
"The Income Tax Department never asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail," said a union finance ministry statement here on steps taken by the tax department to safeguard taxpayers from "phishing" emails.
 
"The Income Tax Department appeals to taxpayers not to respond to such emails and NOT to share information relating to their credit card, bank and other financial accounts," it said, adding it is "very sensitive and alert to attempts made by fraudsters to spoof the department's identity to send phishing emails".
 
It said all taxpayer reports of phishing emails are forwarded to [email protected], which is a government agency mandated to fight against such threats.
 
Listing various best practices implemented, the statement said the use of protocols in this regard enables email receiver domains such as Gmail, Yahoo and Hotmail to determine whether or not a received email is actually from the department and block phishing emails from reaching the taxpayer.
 
It asked taxpayers to check for the domain name carefully as fake emails will have mis-spelt or incorrect sounding variants of websites of the tax department.
 
"Do not open such emails in spam or junk folder and do not reply to such emails. Do not open any attachments. Attachments may contain malicious code," it said.
 
"Do not click on any links and even if you have clicked on links inadvertently in a suspicious e-mail or phishing website then do not enter confidential information like bank account, or credit card details," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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39 killed in Gujarat bus accident, 24 injured
Ahmedabad : Thirty-nine people were killed and 24 injured when a Gujarat State Road Transport Corporation (GSRTC) bus fell off a river bridge in South Gujarat's Navsari district on Friday evening, police officials said.
 
Expressing her condolences over those killed in the accident, Gujarat Chief Minister Anandiben Patel announced compensation of Rs.4 lakh each to their families.
 
According to an official communique, the chief minister has said the state government would bear the complete expenditure for the medical treatment of the injured people. 
 
Navsari Superintendent of Police M.S. Barada said the bus carrying around 60 passengers was on its way to Unai town from Navsari city when the accident occurred in the evening. The bus was packed to capacity when it started around 6 p.m.
 
Barada earlier told media persons that rescue operations were on in full swing. "We have recovered 20 bodies so far. At least 15 people, including the driver and the conductor of the bus, were trapped inside the overturned bus when last reports trickled in."
 
The officer said looking at the damaged bus, the chances of survival of those still inside the wreckage were dim. The accident occurred on a bridge over Purna river near Supa village on Bardoli road under Navsari rural police station area, he said.
 
Many of the injured, who were rushed to government hospitals in Navsari, Gandevi and other towns were reported to be in critical condition. Police said the number of casualties were being collated and may rise.
 
The exact cause for the accident was unclear so far but eye-witness told police that the driver took a left swerve to avoid a vehicle coming from the opposite direction, but lost control over the wheel, crashing into the side wall of the bridge and fell into the river some 40 feet below.
 
The police, fire brigade and ambulances rushed to the spot and with the help of the local people launched a massive rescue operation which, however, was slowed by darkness. 
 
Arrangements for lights were made on emergency basis to continue the rescue operations at night as some portions of the bus remained trapped in mud and shallow water, police said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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