Money in Swiss banks: India continues to slip, stays at 88th place in 2016; UK on top

Zurich/New Delhi: India has slipped to 88th place in terms of money parked by its citizens with Swiss banks, while the UK remains on the top.

Representational image. AFP

Representational image. AFP

Also, the money officially held by Indians with banks in Switzerland now accounts for a meagre 0.04 percent of the total funds kept by all foreign clients in the Swiss banking system, as per an analysis of the latest figures compiled by the SNB (Swiss National Bank) as on 2016-end.

India was placed at 75th position in 2015 and at 61st in the year before that, though it used to be among top-50 countries in terms of holdings in Swiss banks till 2007. The country was ranked highest at 37th place in the year 2004.

The latest data from Zurich-based SNB comes ahead of a new framework for automatic exchange of information between Switzerland and India to help check the black money menace. The funds, described by SNB as ‘liabilities’ of Swiss banks or ‘amounts due to’ their clients, are the official figures disclosed by the Swiss authorities and do not indicate to the quantum of the much-debated alleged black money held by Indians in the safe havens of Switzerland.

SNB’s official figures also do not include the money that Indians, NRIs or others might have in Swiss banks in the names of entities from different countries. There is a view that the Indians alleged to have parked their illicit money in Swiss banks in the past may have shifted the funds to other locations after a global clampdown began on the mighty banking secrecy practices in Switzerland.

Swiss banks have also said Indians have “few deposits” in Swiss banks compared to other global financial hubs like Singapore and Hong Kong amid stepped-up efforts to check the black money menace. The total money held in Swiss banks by foreign clients from across the world, incidentally rose by a small margin from 1.41 trillion Swiss francs (CHF) to CHF 1.42 trillion during 2016.

In terms of individual countries, the UK accounted for the largest chunk at about CHF 359 (over 25 percent) of the total foreign money with Swiss banks. The US came second with nearly CHF 177 billion or about 14 percent No other country accounted for a double-digit percentage share, while others in the top-ten included West Indies, France, Bahamas, Germany, Guernsey, Jersey, Hong Kong and Luxembourg.

Indians’ share not even one-hundredth of the total money. India is now ranked 88th with 676 million Swiss francs (about Rs4,500 crore)—a record low after falling for three consecutive years amid a continuing clampdown on the suspected black money stashed behind their famed secrecy walls.

The share of Indians’ money in the total foreign funds of Swiss banks also fell to 0.04 percent (from 0.08 percent in 2015). Pakistan continued to remain placed higher than India at 71st place (although down from 69th in 2015) with about CHF 1.4 billion—though down to below 0.1% of total foreign money parked with Swiss banks.

India was also the lowest ranked among the BRICS nations—Russia was ranked 19th (CHF 15.6 billion), China 25th (CHF 9.6 billion), Brazil 52nd (CHF 2.7 billion) and South Africa 61st (CHF 2.2 billion). Among these five, only China has moved up. Others ranked higher than India included Mauritius, Iran, Morocco, Kenya, Nigeria, Kazakhstan, Ukraine, Angola, the Philippines, Malaysia, Indonesia, Canada and Mexico.

A number of offshore financial centres are also ranked higher including Cayman Islands, Panama, Cyprus, Marshall Islands, Bermuda, Seychelles, Isle of Man and Gibraltar. Among India’s neighbouring countries, Bangladesh was ranked 89th (CHF 667.5 million), while Nepal was 150th (CHF 312 million), Sri Lanka was 151st (CHF 307 million) and Bhutan was way below at 282nd (about half a million Swiss francs).

The total money belonging to the developed countries fell to CHF 824 billion, while those from developing nations actually rose marginally to CHF 208 million. The money from developing economies in Asia-Pacific region rose to CHF 50 billion.

The funds parked in Swiss banks from offshore financial centres rose to CHF 389 billion. India was ranked in top-50 continuously between 1996 and 2007, but started declining after that—55th in 2008, 59th in 2009 and 2010 each, 55th again in 2011, 71st in 2012 and then to 58th in 2013.


How to Download UPI Apps by SBI, HDFC, ICICI, and Other Banks on Android and iPhone

How to Download UPI Apps by SBI, HDFC, ICICI, and Other Banks on Android and iPhone

How to Download UPI Apps by SBI, HDFC, ICICI, and Other Banks on Android and iPhone
UPI apps by 21 banks, such as SBI, HDFC, ICICI, are available now
All banks have released Android apps for UPI, and a few have iOS apps too
UPI allows you to make transactions online directly from bank accounts
While mobile wallets have capitalised on Prime Minister Narendra Modi’s demonetisation drive and emerged as the big gainers, the government-backed Unified Payments Interface (UPI) had been a no-show until a recent marketing push by the government. Despite being a platform that could have solved the cash crunch, UPI hasn’t really got the kind of traction it probably deserves among both consumers and merchants.

(Also see: Wallet Companies Are Expanding, but Where Is UPI?)

UPI allows you to make payments directly from your bank account, just like you can pay using a debit card, by netbanking, or via a cheque. You need to have a registered mobile number with your bank, and this is used to verify your account. When you sign up on a UPI app the system takes the requisite information courtesy your mobile number. Once your mobile number is verified, you can create your Virtual Payment Account (VPA) and an mPIN to start making transactions using the UPI service.
(Also see: All You Need To Know About UPI)
At present, around 30 banks have joined the UPI platform, with more than 20 UPI apps already available on Google Play and Apple App Store. The beauty of the UPI system is that you can register on (for example) the Axis Bank UPI App, but link any of your bank accounts, whether it is HDFC Bank, or Union Bank. Some UPI apps also act as mobile wallets, while others allow users to make purchases, such as mobile or DTH recharges, using the UPI. These include ICICI Bank’s Pockets app, and the Flipkart and Yes Bank-powered PhonePe.
(Also see: How the Unified Payments Interface Will Evolve)

Making transactions via UPI apps entails a charge of Rs. 5, plus service; this is the amount banks charge for making payments via IMPS netbanking too, which makes sense, since IMPS is actually the backbone of the UPI. Here is a list of all the UPI apps currently available for smartphones.

1. SBI Pay: Android

2. HDFC Bank MobileBanking: Android, iOS

3. ICICI Pockets: Android, iOS

4. Axis Pay UPI App: Android

5. Union Bank UPI App: Android

6. PNB UPI: Android

7. PhonePe: Android

8. Canara Bank UPI – eMpower: Android

9. United UPI: Android

10. Andhra Bank ONE – UPI App: Android

11. UCO UPI: Android

12. Bank of Maharashtra – Maha UPI: Android

13. Vijaya UPI: Android

14. South Indian Bank – SIB M-Pay (UPI Pay): Android

15. KBL SMARTz (UPI): Android

16. OBC UPI PSP: Android

17. UPI Bank Transfer with Friends: Android

18. DCB Bank UPI App: Android

19. Lotza – UPI: Android

20. TranZapp – UPI: Android

21. CSB UPI: Android

Tags: UPI, UPI Apps, Unified Payments Interface, ICICI UPI App, HDFC Bank UPI App, PhonePe UPI App, PhonePe, PNB UPI App


Indian Banks’ Terrible Loans Might also Upward thrust to 8.5% By means of March 2017: RBI

Indian Banks' Bad Loans May Rise to 8.5% By March 2017: RBI

Mumbai: Gross Horrific loans at Indian banks Might also Upward push to 8.five per cent of generalproperty By way of March 2017 from 7.6 percent in March 2016 if the significant financial institutionorders them to conduct a 2nd round of asset excellent evaluations, a Reserve financial institution of India (RBI) record said on Tuesday.

In the meantime, underneath a “severe pressurescenario, overall Bad loans may want to Upward thrust to nine.3 percent in March 2017, the RBI said in its semi-annual Financial Balance file.

The RBI brought that the assessments, though “stringent and conservative”, had been additionallyhypothetical, pronouncing “the intense negative monetary situations mentioned here must not be interpreted as forecast or anticipated effects.”

The RBI ultimate 12 months instructed banks to conduct an asset quality evaluation (AQR) in a bid to get a better photo of the extent of potentially soured property held inside the quarter.

Outgoing RBI Governor Raghuram Rajan had made cleansing up banks a priority in the course of hisalmost threeyear tenure given the arena is saddled with $120 billion of sour loans, that’s constraining new lending and company investments.

Nonetheless, the RBI has no longer ordered a second spherical of formal tests, even though it hasstated it might continue reviewing asset exceptional at banks.

“The stress within the banking sector, which mirrors the pressure within the corporate region, needs to be dealt with so as to revive credit score increase,” Mr Rajan wrote in the record.

The first AQR led banks to understand around $35 billion of latest Awful loans on account thatSeptember, pushing gross Awful loans to 7.6 in step with cent in March from five.1 in keeping with cent in September 2015.

In the meantime, usual burdened belongingswhich include Terrible loans in addition to restructuredassets – rose to 11.five percentage in March from 11.three percent six months in advance.

even though analysts agree with the evaluate has presented a more correct picture of Terrible debt in the area, it has dented profit and restrained credit growth over the past months.

That is the final Economic Stability file beneath Mr Rajan, after the previous Global Financial Fundchief economist greatly surprised the us of a this month By pronouncing he would depart whilst his tenure ends on September 4.

But analysts broadly assume the next RBI Governor to hold the push to smooth up the banking quarter.

© Thomson Reuters 2016

(This tale has no longer been edited With the aid of NDTV team of workers and is automobile-generated from a syndicated feed.)
tale first posted on: June 28, 2016 17:18 (IST)

Tags: RBI, NPA, Horrific loans, Banking region, Raghuram Rajan, Monetary Stability record, RBI governor

Start-ups, venture capital backers turn to investment banks for deals

Investors pumped in more than $9 billion into start-ups over the past two years. Photo: Priyanka Parashar/MintInvestors pumped in more than $9 billion into start-ups over the past two years. Photo: Priyanka Parashar/Mint

Bengaluru/New Delhi: Weak business models and a funding slowdown are forcing many Indian consumer Internet start-ups and their venture capital (VC) backers to seek help from investment bankers in order to secure fresh funds from new investors or find buyers.

Last year, several banks including Kotak Investment Banking, Motilal Oswal Financial Services Ltd, Morgan Stanley and others pitched to help fund start-ups as the number of deals and cheque sizes swelled.

Most investment banks, with the exception of Avendus Capital Pvt. Ltd, Citigroup and a handful of others, were unable to strike deals, partly as VC firms and other investors didn’t need much convincing to put money into start-ups.

Investors pumped in more than $9 billion into start-ups over the past two years.

This year, start-ups such as food-ordering app TinyOwl Technology Pvt. Ltd, logistics services provider Roadrunnr (Carthero Technologies Pvt. Ltd) and others that are fretful at not getting fresh funds are approaching investment banks to help them get cash, people familiar with the matter said.

Many VCs such as Sequoia Capital India, Accel Partners and even some early-stage investors such as Orios Venture Partners have sounded out investment banks about helping them find buyers for their portfolio companies that are struggling, the people cited above said on condition of anonymity.

Roadrunnr and TinyOwl didn’t respond to e-mails seeking comment.

Typically, a majority of start-ups raise cash directly from VCs without the help of investment banks. In Silicon Valley, for instance, investment banks rarely get involved in deals before start-ups list their shares. But as investors are increasingly turning cautious about Indian start-ups, investment banks expect a busy year ahead, especially in assisting with mergers and acquisitions (M&A).

Investment banks help start-ups prepare business plans and so-called pitch decks (investor pitches) and connect them with new investors. They also help position start-ups in the most attractive manner to investors, follow up with investors after initial talks and handle valuation negotiations on behalf of the young companies.

“We have seen a significant increase in the pipeline of deals,” said Gaurav Deepak, managing director at Avendus Capital. “A tighter market has led to the need for expanding and deepening investor coverage, leading to a larger role by the bankers.”

After an unprecedented funding boom for start-ups in 2014 and the first half of 2015, investors have turned cautious because of a mix of global macroeconomic factors such as an economic slowdown in China and an interest rate hike in the US, as well as growing concerns over unproven business models.

In a tough funding environment, the value of working with investment banks increases for start-ups, said Klaas Oskam, managing director at investment bank Signal Hill Capital Advisory India Pvt. Ltd.

“Signal Hill helps start-ups realize the best value by highlighting their strengths, positioning them correctly and introducing them to our strong network of investors. We expect to do more funding deals than last year. We also expect to see more M&A as consolidation is inevitable among consumer Internet start-ups,” he said.

Another investment bank, Merisis Advisors, said it had seen a fivefold jump in the number of Series A deal requests over the past two months, compared with early 2015.

“A lot of venture capital-funded companies are also being directed to us,” said Sumir Verma, co-founder of Merisis. “Given most of these companies have a runway of 3-4 months, even VCs want an investment bank to be involved from day one to close the deal faster. The (consumer Internet) sector is largely looking for strategic investors and hence the need for a banker to sell the right story the right way increases.”

Some international investment banks with their vast network of marquee investor clients also expect an increase in deal-making this year.

“We expect the investing landscape to change rapidly with new sources of capital coming to market, and we expect to be extremely active again this year in helping our clients raise capital from traditional and new sources, and pursue M&A and strategic partnerships,” said Madhur Deora, managing director, investment banking, Citi India. “We are encouraged by the fact that when we have in-depth conversations with our Internet clients, many of them are focused on making their capital last longer and building stronger businesses,” Deora said by e-mail.

Start-ups typically don’t work with global investment banks because they charge fees that aren’t affordable for young companies. However, even large e-commerce companies such as Flipkart Ltd, Snapdeal (Jasper Infotech Pvt. Ltd) and Ola (ANI Technologies Pvt. Ltd) have mostly avoided working with global investment banks over the past 18 months or so, primarily because of the vast networks provided by their own investors such as Tiger Global Management and SoftBank Group.

Citi is the exception, having advised payments and online marketplace Paytm (One97 Communications Ltd) on its $575 million fund-raising last February from Ant Financial Services Group, an affiliate of China’s e-commerce giant Alibaba Group. That was the largest consumer Internet deal that an investment bank helped facilitate in India.

Experts said investment banks need different skill sets in order to work with start-ups and e-commerce companies, as compared with other sectors.

“E-commerce is very different from old economy sectors and for investment banks to succeed in this space, they need to have a strong understanding of the dynamics of e-commerce and how it creates value,” said Ashish Basil, partner, EY.

“Most e-commerce companies may remain unprofitable for a long time due to high customer acquisition costs, and hence GMV (gross merchandise value), lifetime value of customer base, market leadership and other such metrics decide valuations rather than cash flow or earnings in the traditional sector.

“You also need to connect personally with entrepreneurs, most of whom are young and energetic. So you need to able to speak their language, understand their mindset, have similar energy and get their ambitions to work with them, among other traditional traits that investment bankers need to show,” he added.