Apollo seeks to divest from ICICI Bank JV; China keeps benchmark rates unchanged

TOP NEWS IN BANKING & FINANCIAL SERVICES

* Apollo Global Management Inc. will look for a buyer of its over 90% stake in an asset reconstruction company joint venture with India's ICICI Bank Ltd. after it decided to invest in distressed assets through its alternative investment fund, The Economic Times reported, citing people aware of the matter.

* The People's Bank of China kept the one-year loan prime rate steady at 3.7% and the five-year rate at 4.45%.

➤ China banks could default on dollar debt under US sanctions – Ratings

Lenders would face technical default, irrespective of their own financial strength, in the unlikely event of U.S. imposing embargos.

➤ Jyske Bank expects 25% pretax profit growth with Handelsbanken Denmark purchase

Denmark's third-largest bank by assets announced June 20 it entered into a binding agreement with Sweden-based Handelsbanken to buy its Danish business activities.

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.

BANKING

* Four rural banks in China's Henan province — Yuzhou Xinminsheng Village Bank, Zhecheng Huanghuai Community Bank, Shangcai Huimin Country Bank and New Oriental County Bank of Kaifeng — asked clients to register their deposit and fund information following the closure of their online trade systems, Shanghai Securities News reported.

* Bank of Shanghai Co. Ltd. said in a bourse filing it received regulatory approval to issue up to 20 billion yuan of Tier 2 capital bonds.

* Indonesian lender PT Bank CIMB Niaga Tbk aims to push down cost of funds and reach corporate loan growth of 7% to 9% in 2022, Bisnis Indonesia reported, citing CEO Lani Darmawan.

* CIMB Islamic Bank Bhd. and Standard Chartered Saadiq Malaysia entered into a 1 billion ringgit sustainable collateralized commodity murabahah deal, the former said in a release.

* India-based Yes Bank Ltd. is in advanced talks with private equity firms Carlyle and Advent International to close a $1 billion equity fundraising effort, Mint reported, citing two people aware of the development.

* DBS Bank India Ltd. acquired a 9.9% stake in nondeposit-taking nonbanking financial company Svakarma Finance, Mint reported, citing a company statement.

* Bangladesh-based Midland Bank Ltd. Managing Director and CEO Ahsan-uz Zaman said the lender plans to raise 700 million taka through an initial public offering in the fourth quarter, The Financial Express reported, citing an interview with the executive. The plan was approved by the central bank, Zaman said.

* National Australia Bank Ltd. is issuing A$750 million of residential mortgage-backed securities that are collateralized against Australian prime residential mortgage loans, The Australian Financial Review's Street Talk blog reported, citing a term sheet sent to potential investors.

FINANCIAL SERVICES

* Hong Kong Exchanges and Clearing Ltd. plans to allow traders to settle transactions using multiple clearing banks to help diversify risks, Bloomberg News reported, citing people familiar with the matter.

* South Korea's Hyundai Commercial Inc. said it would buy shares of Hyundai Card Co. Ltd. from retail investors at 13,757 won per share by July 15 from investors who wish to liquidate their stake, the Maeil Business Newspaper reported.

* India-based Shriram City Union Finance Ltd. CEO Y.S. Chakravarti said Shriram Group will hire an additional 2,500 people for its proposed merged financial services business in the next 18 to 24 months, Mint reported.

* The Reserve Bank of India approved an open offer to acquire control and substantial shares in Moongipa Securities Ltd. by Rahul Gupta and Rohan Gupta.

* Australian consumer lending firm MoneyMe Ltd. refuted a report by The Australian Financial Review's Street Talk blog that said the firm was considering raising A$20 million in equity.

POLICY AND REGULATION

* The Shanghai headquarters of the People's Bank of China required banks in the city to open more outlets to provide services to the public, especially senior citizens, Shanghai Securities News reported.

* The People's Bank of China issued a notice requiring banks to support new forms and models of foreign trade, starting July 21. Domestic banks can cooperate with qualified nonbond payment and clearing institutions to provide cross-border yuan clearing services, the central bank said.

* The three-month Hong Kong interbank offered rate rose six basis points to 1.35%, the highest level since May 2020, the South China Morning Post reported. the one-month Hibor rose by one basis point to 0.61%.

* South Korea's Financial Supervisory Service is probing Meritz Asset Management CEO John Lee over alleged violations of a conflict of interest obligation when Lee led the company to invest into a local peer-to-peer real estate company for which his wife is one of the shareholders, The Korea Times reported.

* Lee Bok-hyun, chief of South Korea's Financial Supervisory Service said banks should reinforce their loss-absorbing capabilities for credit-linked losses from economic shock and make efforts for better management of foreign liquidity as risk factors are emerging simultaneously from the U.S. Federal Reserve's steep rate increases, the protracted war in Ukraine and supply chain disruptions, Yonhap News Agency reported.

* The Philippines' Supreme Court affirmed an appellate court's decision and ordered Bank of Commerce to restore a couple's deposits of about 2.1 million pesos and $14,149.39 with 12% interest and pay 150,000 pesos in moral and exemplary damages due to a fraudulent scheme offered by a former employee, BusinessWorld reported.

* Incoming Bangko Sentral ng Pilipinas governor Felipe Medalla said some rural banks are operating in an unsustainable manner and that an increase in their minimum capital requirements is necessary, BusinessWorld reported.

Click here for a summary of indexes on the S&P Capital IQ Pro platform.

As of June 20, US$1 was equivalent to 6.69 Chinese yuan, 1,292.33 South Korean won, 4.40 Malaysian ringgit, 54.12 Philippine pesos and 84.90 Bangladeshi taka.

R Sio, Eden Estopace, Sally Wang, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.

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