Yes Bank appoints Brahm Dutt as non-executive part-time chairman
Yes Bank, said it has appointed Brahm Dutt as non-executive part-time chairman to the board. In a statement, Yes Bank said, “Vide its letter dated January 11, 2019, the Reserve Bank of India, pursuant to the provisions of the Banking Regulation Act, 1949…has approved his (Dutt’s) appointment as part-time chairman of Yes Bank’s board up till July 4, 2020 as Mr Dutt attains the age of 70 years.”
Dutt has been on the board of the bank since July 2013 as an independent director, and has contributed to almost all the sub-committees of the board over the past 5.5 years, Yes Bank said in a regulatory filing. He is currently also the Chair of the Nomination and Remuneration Committee. During his career in the IAS for 37 years, he held several posts in Karnataka government as well as in the Central Government.
Speed up 59-minute loan sanction, government to PSU banks
The finance ministry is pushing PSU banks to bridge the gap between proposals that receive preliminary approval and final sanction. Govt had earlier promised 59-minute scheme for micro, small and medium enterprises (MSMEs) for loan sanction.
Since its formal launch by PM a little over two months ago, around 60% of the preliminary approvals done online have been converted into formal sanctions, with the total loan amount adding up to over Rs 24,000 crore, said sources. This has raised questions over the effectiveness of the scheme, where loans up to Rs 1 crore are available to MSMEs that have a credit history, pay income tax and are part of the network.
The quick loan-sanction scheme was part of the government’s outreach to the sector, which was complaining about liquidity shortage due to RBI’s policies and adverse impact of demonetisation and GST on a segment that is a significant contributor to GDP, jobs and exports.
Officials said part of the reason for the conversion rate hovering around the 60% mark is the absence of documents. “While basic documents are available, banks do undertake due diligence since everyone is answerable in case something goes wrong. The exercise requires things like the cash flow statement. Often the loan applicant takes time to furnish papers,” said a banking source. Banks have also been advised to be proactive and reach out to those who do not come back, said another official.
