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Indian banks to close 35 overseas branches; Maybank Q4'17 profit drops

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Indian banks to close 35 overseas branches; Maybank Q4'17 profit drops

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 may require a subscription.

Regulatory developments

* India's Finance Ministry directed state-run banks, including State Bank of India and Bank of Baroda, to shut down 35 branches in overseas markets.

* Commonwealth Bank of Australia denied most of the additional allegations made by Australia's anti-money laundering regulator in its lawsuit. Further, the bank categorically denied all allegations of liability made in a separate shareholder class action.

* Japan's financial regulator is considering changing its regulatory framework to subject all financial service providers to the same rules, a move that could allow fintech startups to compete directly with traditional banks.

* India's securities regulator asked HDFC Bank Ltd. to strengthen its existing systems and controls after parts of its quarterly results were leaked through WhatsApp messages.

* Meanwhile, India's Central Bureau of Investigation lodged a case against Simbhaoli Sugars Ltd., its top executives, directors and unknown officials, for causing an alleged loss of 1.09 billion rupees to Oriental Bank of Commerce.

Deal news

* Westpac Banking Corp. is looking to sell or float its A$5 billion dealer finance and auto loans business around March 2019 at the earliest.

* Land Bank of the Philippines proposed to acquire a 66.67% stake in Philippine Dealing System Holdings Corp., or PDS Holdings, at 360 Philippine pesos per share.

* Union Bank of the Philippines agreed to acquire a 33.73% stake in Philippine Resources Savings Banking Corp., or PR Savings Bank, from International Finance Corp.

* Vietnam's State Capital Investment Corp. plans to off-load more than 2.4 million shares of Vietnam Maritime Commercial Joint Stock Bank, or Maritime Bank, via a public auction on the Hanoi Stock Exchange.

Maybank, other banks post results

* Malayan Banking Bhd., or Maybank, posted a year-over-year decline in profit for the quarter ended Dec. 31, 2017, while CIMB Group Holdings Bhd. and RHB Bank Bhd. posted yearly rises in their respective net profits for the same quarter.

* Meanwhile, Hong Leong Financial Group Bhd. and unit Hong Leong Bank Bhd. reported year-over-year increases in their respective net profits for the fiscal second quarter ended Dec. 31, 2017.

* Sri Lanka-based Bank of Ceylon reported a year-over-year decline in profit for the fourth quarter of 2017, while Commercial Bank of Ceylon PLC's net profit for the same period rose year over year.

* Papua New Guinea's Bank of South Pacific Ltd. posted a year-over-year increase in its consolidated operating profit after tax for full year 2017.

* Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, plans to sell 350 million shares, or a 10% stake, to foreign investors in the first half.

In other news

* Foreign banks are hesitant in accepting letters of guarantees from Indian banks that cover trade financing loans to smaller businesses in the country, following the discovery of India's largest banking fraud.

* Moody's said the significant increase in electronic payments and digital transactions during the Chinese New Year holiday are credit positive for Chinese banks.

* Japanese megabanks, Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc., are collaborating to standardize a mobile payment system using quick response, or QR, codes in a bid to promote cashless transactions in the country.

* Standard Chartered Bank (Vietnam) Ltd. received approval from Vietnam's central bank to increase its charter capital to 4.215 trillion dong from 3.08 trillion dong.

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