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Indian banks see losses as provisions rise; ANZ faces criminal charges

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Indian banks see losses as provisions rise; ANZ faces criminal charges

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.

Indian banks post losses as provisions surge, Malaysian banks see higher profits

* Bank of India's net loss for the fiscal fourth quarter ended March 31 widened year over year to 39.69 billion rupees from a loss of 10.46 billion rupees, driven by higher provisions for bad loans.

* India's IDBI Bank Ltd. posted a net loss of 56.63 billion rupees for the fiscal fourth quarter, compared to a net loss of 32 billion rupees in the prior-year period, as provisions and contingencies surged to 105.44 billion rupees from 58.65 billion rupees.

* Bank of Baroda swung to a net loss of 29.07 billion rupees for the fiscal fourth quarter from a net profit of 2.55 billion rupees in the year-ago quarter, partly due to higher provisions. The bank is hoping to see improved profitability in fiscal 2019, and will focus on selling noncore assets, particularly in exiting its investments in an asset management company and other financial institutions.

* Malaysia's CIMB Group Holdings Bhd. said net profit for the first quarter increased 10.7% year over year to 1.31 billion ringgit from 1.18 billion ringgit.

* RHB Bank Bhd. posted an 18.1% year-over-year increase in net profit for the first quarter ended March 31 amid lower allowances for credit losses.

* Hong Leong Financial Group Bhd. saw its net profit for the fiscal third quarter increase to 502.6 million ringgit amid a sharp decline in impairments.

* Malayan Banking Bhd. reported a year-over-year increase in net profit for the first quarter to 1.87 billion ringgit from 1.70 billion ringgit.

ANZ faces criminal charges, other banks in legal issues

* Australia & New Zealand Banking Group Ltd. faces criminal charges over "alleged cartel conduct" in relation to a 2015 share issuance. The charges involve alleged cartel arrangements in relation to the trading of ANZ's shares following the 2015 placement. Prosecutors also plan to bring proceedings against two of the issue's underwriters, Deutsche Bank AG and Citigroup Inc.

* ICICI Bank Ltd. plans to conduct an independent inquiry into a whistleblower's complaint against the bank's CEO and managing director, Chanda Kochhar, over her connection to an alleged improper loan to Videocon Group.

* South Korean authorities sought the arrest of KEB Hana Bank CEO Ham Young-joo over irregular hiring practices. The country's Financial Supervisory Service found that 32 out of 229 job applicants gained an unfair advantage that led to their employment.

* National Bank of Pakistan President Saeed Ahmed petitioned to be acquitted as a co-accused in corruption charges against former Finance Minister Ishaq Dar.

* Bank of Ningbo Co. Ltd. and Agricultural Bank of China Ltd. are facing off in court over the potential breach of a bill repurchase contract worth 986 million yuan. Agricultural Bank of China is suing Bank of Ningbo for damages including the repurchase amount.

* A Vietnamese court upheld a ruling in a 4.9 trillion dong bank fraud case that holds the main perpetrator responsible for returning the stolen money, rather than the individual's employer at the time, Vietnam Joint Stock Commercial Bank for Industry & Trade.

Regulatory developments

* The Monetary Authority of Singapore issued new rules requiring investors to report their short positions and short-sell orders in securities listed on the Singapore stock exchange, effective Oct. 1.

* The China Banking and Insurance Regulatory Commission revised liquidity risk management rules for banks, and introduced three quantitative indicators to help them better guard against liquidity risks. The rules take effect July 1.

* China's insurance and banking regulator is also conducting checks into the shadow banking and interbank activities of financial institutions. The regulator is reportedly focusing on the companies' channel businesses, which help companies dodge capital or investment regulations.

* The Philippine central bank approved guidelines to implement the net stable funding ratio, or NSFR, which is an international requirement for banks to maintain a liquid position that is sustainable for one year.

* The Hong Kong Monetary Authority is now accepting applications for online-only banking licenses, and has set Aug. 31 as the deadline for submission of the first batch of applications.

* New Zealand regulators have so far found no evidence of systemic misconduct in the banking system but noted that their final findings in October or November may "test" their current stance.

* The Bangladesh government plans to establish a commission to investigate the banking sector, which has been beset by loan scams.

In other news

* China Everbright Bank Co. Ltd. is looking to obtain an investment banking business license in South Korea. If final approval for the license is granted, China Everbright Bank can commence investment banking operations within six months.

* China's Bank of Ningbo plans to invest 1 billion yuan to set up an asset management unit.

* Bank of Changsha Co. Ltd. secured regulatory approval to list on the Shanghai Stock Exchange. Bank of Changsha would become the first lender in southern China's Hunan province to go public, and it is the second bank to obtain regulatory approval for an IPO in 2018.

* The Reserve Bank of India appointed Sudha Balakrishnan as its first ever CFO, effective May 15.