S&P Global Market Intelligence offers our top picks of banking news stories and more published throughout the week. Please note that some entries may have links to third-party sources that require a subscription.
M&A and IPO corner
* Home Credit Group BV shortlisted Japan-based Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group Inc. and Singapore's Grab Holdings Ltd. for the sale of its assets in Southeast Asia and India, Bloomberg News reported. The deal could value the company between $2 billion and $2.5 billion. Representatives from the banks declined to comment, while a representative for Grab did not immediately respond to requests for comment.
* Westpac Banking Corp. is said to be seeking bids for its wealth management unit, BT Panorama, until the end of April for a transaction that could fetch as much as A$1.5 billion, Bloomberg News reported. A representative for BT Financial Group Pty. Ltd. did not immediately respond to the news agency's requests for comment.
* Bank of Nanjing Co. Ltd. said it would invest 387.9 million yuan to purchase a total of 41% stake in Suning Consumer Finance Co. Ltd. which will raise its stake in the company to 56% from 15%. BNP Paribas SA is also acquiring a 3% stake in Suning Consumer Finance for 28.4 million yuan, according to a release.
* Pakistan-based JS Bank Ltd. said its board approved a plan to acquire 7.79% of the paid-up capital of BankIslami Pakistan Ltd. from Emirates NBD Bank PJSC for up to 1.14 billion rupees, subject to shareholders' and regulatory approval.
* U.S.-based private equity firm Blackstone Inc. sold its stake in Australia's La Trobe Financial Group to Canada-based Brookfield Asset Management Inc. for about A$1.6 billion, The Australian Financial Review reported.
* Ebix Inc.'s Indian unit, EbixCash Ltd., filed a draft red herring prospectus for its planned IPO with the Securities and Exchange Board of India. The company said in a release the share sale will comprise a fresh issue of up to 60 billion rupees of equity shares.
* SBI Sumishin Net Bank Ltd. said it postponed its IPO on the Tokyo Stock Exchange due to the impact of the situation in Ukraine and recent market conditions. Sumitomo Mitsui Trust Holdings Inc. said in a same-day release its Sumitomo Mitsui Trust Bank Ltd. unit is canceling the partial sale of its holdings in the digital lender.
* The Philippine Stock Exchange Inc. approved Bank of Commerce's planned IPO to raise up to 3.51 billion pesos. The lender said in a release it expects to list on the bourse's main board under the symbol BNCOM.
Regulatory actions and Russia sanctions
* Chinese authorities asked banks and other state-owned enterprises to report their exposures to energy and commodity-linked derivatives contracts after a surge in commodities prices, Bloomberg News reported. The request came after volatile swings in nickel and other commodities embroiled a trading unit of China Construction Bank Corp. The authorities did not immediately respond to requests for comment.
* The China Securities Regulatory Commission barred the Chinese investment banks it regulates from acting as promoters of special purpose acquisition companies in Hong Kong due to concerns over the risks associated with these firms, Reuters reported. The banks will be allowed to work as advisors on SPAC transactions under Hong Kong's new rules.
* South Korea's Financial Supervisory Service asked the country's banks to set aside more loan loss provisions and reserves for possible loan losses. A preemptive regulatory intervention is needed to increase banks' capacity to absorb potential loan losses due to domestic and external economic uncertainties, the regulator said in a release.
* The Reserve Bank of India said the National Bank for Financing Infrastructure and Development, which came into force April 19, 2021, will be regulated as an All India Financial Institution.
* Singapore prohibited financial institutions from doing business with VTB Bank, Vnesheconombank Promsvyazbank and Bank Rossiya. The ban includes transactions involving cryptocurrencies that could allow Russian entities to circumvent the sanctions.
* The Reserve Bank of India reportedly told banks to explore an alternative payment mechanism for trade in the wake of Russia's increasing exclusion from the global financial system, The Economic Times reported.
* South Korea will suspend financial transactions with the Central Bank of the Russian Federation, the Russian National Wealth Fund, the Russian Direct Investment Fund and Bank Rossiya as the country joins the U.S. and the EU in ramping up sanctions over developments in Ukraine.
In other news
* Japan's SMBC Nikko Securities Inc. is facing a regulatory investigation over suspicions that its employees engaged in illegal stock transactions and market manipulation, Nikkei Asia reported. The company said in a release it has set up an investigative panel of three lawyers to look into the matter.
* Singapore-based DBS Group Holdings Ltd. set up a board committee to provide added governance and oversight of material environmental, social and governance matters, including climate-related and sustainability disclosures, according to a release.
* Taiwanese internet lender Next Bank is set to open March 29, the Taipei Times reported, citing Chairman Chung Fu-kuei.
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