Union Finance Minister Arun Jaitley asked the Chief Executive Officers (CEOs) of the Public Sector Banks (PSBs) and Financial Institutions (FIs) to take commercial decisions without fear or favour as the Government is committed to provide them financial autonomy both in letter and spirit.
Top Stories
Without fear or favour, banks can take commercial decisions: FM
Union Finance Minister Arun Jaitley asked the Chief Executive Officers (CEOs) of the Public Sector Banks (PSBs) and Financial Institutions (FIs) to take commercial decisions without fear or favour as the Government is committed to provide them financial autonomy both in letter and spirit. At the same time, the Finance Minister insisted that the banks should have strong public grievances redressal mechanism in place, so that their clients do not have to approach the Government to redress their grievances.
NPA sales: RBI issues new norms
The Reserve Bank of India, on Wednesday, has allowed banks to reverse the excess provision on sale of bad loans to their profit and loss account, provided the transaction took place before February 26, 2014. “Banks can reverse excess provision arising out of sale of NPAs only when the cash received by way of initial consideration and/or redemption of security receipts/pass through certificates is higher than the NBV of the NPAs sold to a securitisation company or an asset reconstruction company (RRC),” the RBI said in a notification.
Domestic News
Insurance Bill passage could bring inflow of Rs. 20,000 crore: Arundhati Bhattacharya
Arundhati Bhattacharya, Chairman, SBI, said, “With financial inclusion proceedings in full force, the timing of increase in limit for FDI in insurance sector is a blessing in disguise. In our estimate, the FDI limit hike in insurance could result in immediate inflow of around Rs. 20,000 crore. Furthermore, FDI hike in insurance is de jure increase in FDI limits for pension sector also.”
Stake sale! Reliance Capital receives Rs. 371 cr from Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Trust Bank, Limited of Japan has completed acquisition of 2.77 per cent strategic stake in Reliance Capital, a part of Anil Ambani led Reliance Group. The entire proceeds of Rs 371 crore (US$ 58.4 million) for the 2.77 per cent stake has been duly received from Sumitomo Mitsui Trust Bank, Limited. Sumitomo Mitsui Trust Bank, Limited had agreed to acquire strategic stake in Reliance Capital, subject to regulatory and shareholders approvals, which have since been received.
Personal loans! SBI sweetens offers for existing home-loan customers
State Bank of India said that it is offering an attractive interest rate scheme to its existing home-loan customers, according to a media report. SBI said that its existing customers can take personal, or top-up, loans at the same rate that they are paying on home loans under a limited-period offer, the report added. In effect, an existing borrower can take a personal loan at 10.15%, provided he had been paying his homeloan EMIs regularly, the report further said.
Power shift! Govt to bring market regulatory powers under SEBI purview
Justice BN Srikrishna, Chairman, Financial Sector Legislative Reforms Commission (FSLRC) said that the Finance Bill recommendation, which gives money market control to Securities and Exchange Board of India, has come as a surprise. The government has recently proposed to amend the Reserve Bank of India (RBI) Act to take away money market regulatory powers from RBI and bring it under the purview of SEBI, Justice BN Srikrishna said in an interview to a news channel. The Finance Bill seeks amends in Sections 45U and 45W of the RBI Act to enable the shift of powers from RBI to SEBI..
Banks to ensure high standard in outsourced services: RBI
The RBI has directed asked banks to ensure high standard of care while outsourcing financial services and directed them to put in place a robust system of internal audit of all such activities. "Banks have been advised to take steps to ensure that the service provider employs the same high standard of care in performing the services as would be employed by the banks, if the activities were conducted within the banks and not outsourced," the RBI said in a notification on Wednesday. "Banks should not engage in outsourcing that would result in their internal control, business conduct or reputation being compromised or weakened," the RBI further said.
Invoice to Payment! Axis Bank partners with MasterCard & Vayana Network
Axis Bank announced their partnership with MasterCard & Vayana Network and launched ‘Invoice to Payment’- an end-to-end digital invoicing and payment solution. This solution aims to simplify B2B payments in India, estimated at over USD 95 Bn annually. Processing of these payments is physical, involves a number of manual steps and corporates spend a lot of time and resources to reconcile invoices and their payments. Invoice to pay is designed to simplify, digitize and automate the entire process – from invoice presentment to final payment.
IDBI Bank to sell stake in NSE in next fiscal
IDBI Bank plans to sell its entire 5 per cent stake in NSE in the next fiscal, according to a media report. In a public notice earlier, IDBI Capital had announced, "Invitation for Expression of Interest (EoI) for sale of equity shares upto 5% of the paid-up equity share capital of the NSE." The notice further said, "IDBI Bank, a client, of IDBI Capital Market Services intends to sell the shares held in NSE." Interested parties were required to submit the EoI by January 20.
Engage more private banks in agency biz of Central & State Govts: Assocham says
ASSOCHAM has suggested the Union Government to engage private sector banks in the agency business of Central and State Governments to enable faster implementation of subsidy schemes of the Government thereby complimenting the Prime Minister’s hugely successful Jhan Dhan Yojana. In a note submitted to the Union Finance Minister, Arun Jaitley, The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has stated that ‘induction of additional private sector banks will widen reach of Indian private sector banks to provide financial services at lower cost together with greater convenience to all end consumers..
14th Fin Com stresses on greater Center-State coordination
The states should get a meatier share in the divisible tax pool which will etch out a fresh period for the Centre-state fiscal relations and provide greater flexibility to states, proposed the 14th Financial Commission, as per reports. The Commission constitutes of certain elements of change and consistency as compared to earlier commissions and has a philosophical approach. It has complete faith in the government and is in sync with the new realities of economic management, says the Chairman YV Reddy in an interview to ET..
FPIs buy net shares worth Rs. 31,250 crore till Mar 5
The net foreign fund inflows into Indian capital markets stood at $11.08 billion (over Rs. 68,552 crore) till March 5 this year, according to the data compiled by the Central Depository Services Ltd (CDSL). The Foreign portfolio investors (FPIs) bought shares worth a net amount of Rs. 31,256 crore till March 5 this year, while in the debt segment, their net inflows stand at Rs. 37,296 crore, taking the total to Rs. 68,552 crore, the data indicated. Overseas investors reported a net inflow of Rs. 24,563 crore February, while the same stood at Rs. 33,688 crore in the month of January.
Expansion of SARFAESI Act credit positive for lenders of LAPs, says Moodys
On 28 February, India’s Finance Minister Arun Jaitley, as part of India’s union budget for the fiscal year ended 31 March 2016, proposed designating non-banking finance companies (NBFCs) with assets of more than Rs5 bn as “financial institutions” under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). Such designations would be credit positive for lenders of loans against property (LAPs), which is a loan made against residential or commercial property already owned by the borrower. Residential mortgage-backed securities (RMBS) backed by LAPs originated by these NBFCs would also benefit from speedier loan recovery.
Overseeing lenders! New PSU bank board to be set up in few months
The proposed public sector bank board, which would be independent in nature, is likely to oversee the functioning of lenders, according to a media report. The board, which is expected to be set up in the next few months, would closely work with boards of various state owned banks, the report added. Finance minister Arun Jaitley had announced the setting up of the board in his budget speech.
Pakistan, Macau, Hong Kong citizens can't buy property in India: RBI
The Reserve Bank of India (RBI) on Wednesday said the citizens from Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan shall not acquire or transfer immovable property in India, other than lease without its prior permission, not exceeding five years. “….in terms of which no person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan without prior permission of the Reserve Bank shall acquire or transfer immovable property in India, other than lease, not exceeding five years,” the RBI said in a notification.
RBI buys forex worth $12.14bn in Jan
The Reserve Bank of India bought a net $12.14 billion in spot foreign exchange markets in January, compared with $6.74 billion in December, according to RBI's monthly bulletin published on Tuesday. The total net forward position stood at $5.58 billion at the end of January compared with $6.85 billion in December, the data showed.
Households are the largest contributor in total deposits in 2014: RBI
Growth in total deposits with Scheduled Commercial Banks accelerated to 13.8 per cent in March 2014 from 11.5 per cent in March 2013, according to RBI's monthly bulletin published on Tuesday. All types of deposits were seen to accelerate in March 2014. However, the growth in current deposits was lower than that of interest bearing deposits (i.e., savings and term), the RBI data added. The term deposits at 64.9 per cent remained the major constituent of total deposits, followed by savings deposits at 26.2 per cent..
India's export of software at $71.4bn in 2013-14
India’s export of software services during 2013-14 stood at Rs. 4,322.8 billion ($71.4 billion), of which computer services exports accounted for 73.6 per cent, according to RBI's monthly bulletin published on Tuesday. The global software export of India including the services rendered by foreign affiliates established abroad was estimated at Rs. 5,011.8 billion (US$ 82.8 billion).
Banks to observe norms of Sukanya Samriddhi Account Scheme: RBI
The RBI has directed banks to observe the rules and regulations of the Sukanya Samriddhi Account Scheme. The Government of India, vide this Notification, has notified the Sukanya Samriddhi Account Rules, 2014, which came into force with effect from December 02, 2014.
Reporting of the Sukanya Samriddhi Account transactions i.e. receipt, payment, penalty, etc. may be directly done through the Government Account at Central Account Section, Reserve Bank of India, Nagpur on daily basis like the transactions of PPF, 1968, in order to have uniformity in reporting, reconciliation and accounting, the RBI said in a notification on Wednesday... Read more
Govt contemplating measures to push stalled projects: Jayant Sinha
Minister of State for Finance Jayant Sinha reportedly said that the government is contemplating a host of measures to push stalled projects and deal with the problem of rising non-performing assets (NPAs) of banking sector. "We discussed the NPA issue (and) the situation in stalled projects," says Sinha. "And also we are thinking about the ways in which resolution of the NPA situation can be done more speedily," Sinha reported. A report said that the NPAs of public sector banks rose sharply to 5.33 per cent of total advances in September 2014 from 4.72 per cent in March 2014.
IRDAI considers options for multiple insurer tie-ups for banks
The Insurance Regulatory and Development Authority of India (IRDAI) is considering new options to introduce open architecture of bancassurance, according to a media report. Bancassurance refers to selling of insurance products through banks. The bank sells the products of the insurers to its own customers. Among the new options include tying up with more than one insurer in the life, non-life and standalone health insurance segments. The objective is to allow banks to open their branch network to other insurers, the report added...Read more
India's CAD narrows to $8.2bn in Q3 FY15: RBI
The RBI released the preliminary data about the country’s balance of payments (BoP) for the third quarter i.e., October-December of financial year 2014-15. On a quarter-over-quarter (q-o-q) basis, India’s current account deficit (CAD) narrowed to US$ 8.2 billion (1.6 per cent of GDP) in Q3 of 2014-15 from US$ 10.1 billion (2.0 per cent of GDP) in Q2; on a year-on-year (y-o-y) basis, however, the CAD doubled (from US$ 4.2 billion or 0.9 per cent of GDP in Q3 of 2013-14).
India’s trade deficit at $112.5bn in Q3 FY15: RBI
The RBI released the preliminary data about the country’s balance of payments (BoP) for the third quarter i.e., October-December of financial year 2014-15.
On a cumulative basis, the overall BoP shows considerable improvement on a y-o-y basis on the back of a higher growth in merchandise exports and a marginal rise in merchandise imports, with a sizable increase in net financial flows financing the CAD and enabling a large build-up of reserves..
Shriram Automall ties up with Gramin Bank of Aryavart
Shriram Automall India Limited (SAMIL), an ISO certified Company with AA rating from CRISIL, has entered in a strategic alliance with the Gramin Bank of Aryavart (GBA). As per the agreement, SAMIL will cater to the pre-owned vehicle inventory of the bank and facilitate their hassle-free disposal through its physical and online bidding platforms. Commenting on the tie-up, Sameer Malhotra (CEO of SAMIL) stated “We have signed an agreement with Gramin Bank of Aryavart to provide them holistic solutions in the disposal of their pre-owned commercial vehicles, construction equipment, tractors, cars & SUVs, three wheelers and two wheelers. Regular physical and online bidding events will be conducted with an aim to fetch maximum customer base for quick and value-for-money transactions”..
ICICI Bank launches ‘Touch n Remit’ facility for NRIs in Bahrain
ICICI Bank has tied up with SADAD Electronic Payments WLL to offer remittance service for NRIs based in Bahrain, enabling them to transfer monies instantly to India from the latter’s kiosks spread across the Kingdom of Bahrain. Christened ‘Touch n Remit’, this 24X7 remittance service is a first-of-its kind in Bahrain and is available to all NRIs, even if they don’t have an account with ICICI Bank. To avail this service, the remitters have to carry out a simple, one-time registration for themselves and beneficiary by visiting the ICICI Bank Bahrain branch. Subsequent to the registration, they can visit designated SADAD kiosks with cash and initiate money transfer to over 100 banks in India including ICICI Bank..
News Appointments
Govt appoints RP Marathe as Bank of India ED
Bank of India said that the Government of India, Ministry of Finance has appointed RP Marathe, General Manager, Bank of Saroda as Executive Director of the Bank. He has taken over the charge on March 10, 2015.
Govt appoints executive director for Canara Bank
Canara Bank said that the central government has appointed Harideesh Kumar B, presently General Manager, Vijaya Bank as Executive Director of Canara Bank, with effect from the date of his assumption of charge of the post and upto May 31, 2017 i.e., the date of his attaining the age of superannuation or until further orders, whichever is earlier, vide notification dated March 10, 2015. He has taken charge as Executive Director of the Bank w.e.f. March 11, 2015.
Govt appoints Ravi Shankar Pandey as Syndicate Bank ED
Syndicate Bank has informed BSE that the Central Government vide its notification dated March 10, 2015 has appointed Ravi Shanker Pandey, General Manager, Union Bank of India as Executive Director of the Bank from the date of his assumption of charge of the post and upto October 31, 2017 i.e. the date of his attaining the age of superannuation or until further orders, whichever is earlier.
Govt appoints RC Lodha as ED of Central Bank of India
Central Bank of India has informed BSE that in terms of Government of India, Ministry of Finance, Department of Financial Services, Notification dated March 10, 2015, R. C. Lodha, General Manager of Union Bank of India has joined the Bank as Executive Director w.e.f. March 11, 2015.
Dr. Kshatrapati Shivaji appointed as CMD, SIDBI
Dr Kshatrapati Shivaji, IAS, has taken over as Chairman & Managing Director of Small Industries Development Bank of India from March 02, 2015, in terms of the Government of India notification dated February 27, 2015.
International News
IMF Managing Director Christine Lagarde to visit India and China
Christine Lagarde, Managing Director of the International Monetary Fund (IMF), will visit India on March 16-17 and China on March 19-23, to meet with policymakers and senior officials, as well as with representatives of other sectors of society including business, women leaders, academics and students.
Lagarde will start her trip by visiting India, where she will meet with Prime Minister Narendra Modi and senior officials including Finance Minister Arun Jaitley, and Reserve Bank of India (RBI) Governor Raghuram Rajan. In addition, she will give a speech at Lady Sri Ram College in Delhi, and participate in a public event hosted by RBI in Mumbai. The visit presents an opportunity to exchange views on recent economic developments, India’s prospects and its role in the global economy.
South Korea cuts interest rate by 25bps to 1.75%
South Korea's central bank lowered its key policy rate on Thursday to a record low of 1.75 percent from 2 percent. The Monetary Policy Committee of the Bank of Korea decided to lower the Base Rate by 25 basis points from 2.00% to 1.75%, the central bank said in a statement. The central bank lowered the benchmark interest rate two times last year. In January, the central bank revised its 2015 growth outlook to 3.4 percent from 3.9 percent and downgraded its inflation projection to 1.9 percent from 2.4 percent.
Southeast Asian Banks are well positioned to withstand headwinds in 2015
Banks in most Southeast Asian countries are well positioned to face the tougher operating environment in 2015 stemming from tighter credit conditions, said Standard & Poor's Ratings Services. The days of easy credit, with low interest rates and ready availability of funding, appear to be coming to an end for banks in Southeast Asia. "High levels of household indebtedness in Singapore, Thailand, and Malaysia might leave these banking systems vulnerable to rising interest rates and asset quality pressure," said Standard & Poor's credit analyst Ivan Tan. "However, we believe banks have sufficient financial buffers to withstand these challenges.".
Top Stories
Without fear or favour, banks can take commercial decisions: FM
Union Finance Minister Arun Jaitley asked the Chief Executive Officers (CEOs) of the Public Sector Banks (PSBs) and Financial Institutions (FIs) to take commercial decisions without fear or favour as the Government is committed to provide them financial autonomy both in letter and spirit. At the same time, the Finance Minister insisted that the banks should have strong public grievances redressal mechanism in place, so that their clients do not have to approach the Government to redress their grievances.
NPA sales: RBI issues new norms
The Reserve Bank of India, on Wednesday, has allowed banks to reverse the excess provision on sale of bad loans to their profit and loss account, provided the transaction took place before February 26, 2014. “Banks can reverse excess provision arising out of sale of NPAs only when the cash received by way of initial consideration and/or redemption of security receipts/pass through certificates is higher than the NBV of the NPAs sold to a securitisation company or an asset reconstruction company (RRC),” the RBI said in a notification.
Domestic News
Insurance Bill passage could bring inflow of Rs. 20,000 crore: Arundhati Bhattacharya
Arundhati Bhattacharya, Chairman, SBI, said, “With financial inclusion proceedings in full force, the timing of increase in limit for FDI in insurance sector is a blessing in disguise. In our estimate, the FDI limit hike in insurance could result in immediate inflow of around Rs. 20,000 crore. Furthermore, FDI hike in insurance is de jure increase in FDI limits for pension sector also.”
Stake sale! Reliance Capital receives Rs. 371 cr from Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Trust Bank, Limited of Japan has completed acquisition of 2.77 per cent strategic stake in Reliance Capital, a part of Anil Ambani led Reliance Group. The entire proceeds of Rs 371 crore (US$ 58.4 million) for the 2.77 per cent stake has been duly received from Sumitomo Mitsui Trust Bank, Limited. Sumitomo Mitsui Trust Bank, Limited had agreed to acquire strategic stake in Reliance Capital, subject to regulatory and shareholders approvals, which have since been received.
Personal loans! SBI sweetens offers for existing home-loan customers
State Bank of India said that it is offering an attractive interest rate scheme to its existing home-loan customers, according to a media report. SBI said that its existing customers can take personal, or top-up, loans at the same rate that they are paying on home loans under a limited-period offer, the report added. In effect, an existing borrower can take a personal loan at 10.15%, provided he had been paying his homeloan EMIs regularly, the report further said.
Power shift! Govt to bring market regulatory powers under SEBI purview
Justice BN Srikrishna, Chairman, Financial Sector Legislative Reforms Commission (FSLRC) said that the Finance Bill recommendation, which gives money market control to Securities and Exchange Board of India, has come as a surprise. The government has recently proposed to amend the Reserve Bank of India (RBI) Act to take away money market regulatory powers from RBI and bring it under the purview of SEBI, Justice BN Srikrishna said in an interview to a news channel. The Finance Bill seeks amends in Sections 45U and 45W of the RBI Act to enable the shift of powers from RBI to SEBI..
Banks to ensure high standard in outsourced services: RBI
The RBI has directed asked banks to ensure high standard of care while outsourcing financial services and directed them to put in place a robust system of internal audit of all such activities. "Banks have been advised to take steps to ensure that the service provider employs the same high standard of care in performing the services as would be employed by the banks, if the activities were conducted within the banks and not outsourced," the RBI said in a notification on Wednesday. "Banks should not engage in outsourcing that would result in their internal control, business conduct or reputation being compromised or weakened," the RBI further said.
Invoice to Payment! Axis Bank partners with MasterCard & Vayana Network
Axis Bank announced their partnership with MasterCard & Vayana Network and launched ‘Invoice to Payment’- an end-to-end digital invoicing and payment solution. This solution aims to simplify B2B payments in India, estimated at over USD 95 Bn annually. Processing of these payments is physical, involves a number of manual steps and corporates spend a lot of time and resources to reconcile invoices and their payments. Invoice to pay is designed to simplify, digitize and automate the entire process – from invoice presentment to final payment.
IDBI Bank to sell stake in NSE in next fiscal
IDBI Bank plans to sell its entire 5 per cent stake in NSE in the next fiscal, according to a media report. In a public notice earlier, IDBI Capital had announced, "Invitation for Expression of Interest (EoI) for sale of equity shares upto 5% of the paid-up equity share capital of the NSE." The notice further said, "IDBI Bank, a client, of IDBI Capital Market Services intends to sell the shares held in NSE." Interested parties were required to submit the EoI by January 20.
Engage more private banks in agency biz of Central & State Govts: Assocham says
ASSOCHAM has suggested the Union Government to engage private sector banks in the agency business of Central and State Governments to enable faster implementation of subsidy schemes of the Government thereby complimenting the Prime Minister’s hugely successful Jhan Dhan Yojana. In a note submitted to the Union Finance Minister, Arun Jaitley, The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has stated that ‘induction of additional private sector banks will widen reach of Indian private sector banks to provide financial services at lower cost together with greater convenience to all end consumers..
14th Fin Com stresses on greater Center-State coordination
The states should get a meatier share in the divisible tax pool which will etch out a fresh period for the Centre-state fiscal relations and provide greater flexibility to states, proposed the 14th Financial Commission, as per reports. The Commission constitutes of certain elements of change and consistency as compared to earlier commissions and has a philosophical approach. It has complete faith in the government and is in sync with the new realities of economic management, says the Chairman YV Reddy in an interview to ET..
FPIs buy net shares worth Rs. 31,250 crore till Mar 5
The net foreign fund inflows into Indian capital markets stood at $11.08 billion (over Rs. 68,552 crore) till March 5 this year, according to the data compiled by the Central Depository Services Ltd (CDSL). The Foreign portfolio investors (FPIs) bought shares worth a net amount of Rs. 31,256 crore till March 5 this year, while in the debt segment, their net inflows stand at Rs. 37,296 crore, taking the total to Rs. 68,552 crore, the data indicated. Overseas investors reported a net inflow of Rs. 24,563 crore February, while the same stood at Rs. 33,688 crore in the month of January.
Expansion of SARFAESI Act credit positive for lenders of LAPs, says Moodys
On 28 February, India’s Finance Minister Arun Jaitley, as part of India’s union budget for the fiscal year ended 31 March 2016, proposed designating non-banking finance companies (NBFCs) with assets of more than Rs5 bn as “financial institutions” under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). Such designations would be credit positive for lenders of loans against property (LAPs), which is a loan made against residential or commercial property already owned by the borrower. Residential mortgage-backed securities (RMBS) backed by LAPs originated by these NBFCs would also benefit from speedier loan recovery.
Overseeing lenders! New PSU bank board to be set up in few months
The proposed public sector bank board, which would be independent in nature, is likely to oversee the functioning of lenders, according to a media report. The board, which is expected to be set up in the next few months, would closely work with boards of various state owned banks, the report added. Finance minister Arun Jaitley had announced the setting up of the board in his budget speech.
Pakistan, Macau, Hong Kong citizens can't buy property in India: RBI
The Reserve Bank of India (RBI) on Wednesday said the citizens from Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan shall not acquire or transfer immovable property in India, other than lease without its prior permission, not exceeding five years. “….in terms of which no person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan without prior permission of the Reserve Bank shall acquire or transfer immovable property in India, other than lease, not exceeding five years,” the RBI said in a notification.
RBI buys forex worth $12.14bn in Jan
The Reserve Bank of India bought a net $12.14 billion in spot foreign exchange markets in January, compared with $6.74 billion in December, according to RBI's monthly bulletin published on Tuesday. The total net forward position stood at $5.58 billion at the end of January compared with $6.85 billion in December, the data showed.
Households are the largest contributor in total deposits in 2014: RBI
Growth in total deposits with Scheduled Commercial Banks accelerated to 13.8 per cent in March 2014 from 11.5 per cent in March 2013, according to RBI's monthly bulletin published on Tuesday. All types of deposits were seen to accelerate in March 2014. However, the growth in current deposits was lower than that of interest bearing deposits (i.e., savings and term), the RBI data added. The term deposits at 64.9 per cent remained the major constituent of total deposits, followed by savings deposits at 26.2 per cent..
India's export of software at $71.4bn in 2013-14
India’s export of software services during 2013-14 stood at Rs. 4,322.8 billion ($71.4 billion), of which computer services exports accounted for 73.6 per cent, according to RBI's monthly bulletin published on Tuesday. The global software export of India including the services rendered by foreign affiliates established abroad was estimated at Rs. 5,011.8 billion (US$ 82.8 billion).
Banks to observe norms of Sukanya Samriddhi Account Scheme: RBI
The RBI has directed banks to observe the rules and regulations of the Sukanya Samriddhi Account Scheme. The Government of India, vide this Notification, has notified the Sukanya Samriddhi Account Rules, 2014, which came into force with effect from December 02, 2014.
Reporting of the Sukanya Samriddhi Account transactions i.e. receipt, payment, penalty, etc. may be directly done through the Government Account at Central Account Section, Reserve Bank of India, Nagpur on daily basis like the transactions of PPF, 1968, in order to have uniformity in reporting, reconciliation and accounting, the RBI said in a notification on Wednesday... Read more
Govt contemplating measures to push stalled projects: Jayant Sinha
Minister of State for Finance Jayant Sinha reportedly said that the government is contemplating a host of measures to push stalled projects and deal with the problem of rising non-performing assets (NPAs) of banking sector. "We discussed the NPA issue (and) the situation in stalled projects," says Sinha. "And also we are thinking about the ways in which resolution of the NPA situation can be done more speedily," Sinha reported. A report said that the NPAs of public sector banks rose sharply to 5.33 per cent of total advances in September 2014 from 4.72 per cent in March 2014.
IRDAI considers options for multiple insurer tie-ups for banks
The Insurance Regulatory and Development Authority of India (IRDAI) is considering new options to introduce open architecture of bancassurance, according to a media report. Bancassurance refers to selling of insurance products through banks. The bank sells the products of the insurers to its own customers. Among the new options include tying up with more than one insurer in the life, non-life and standalone health insurance segments. The objective is to allow banks to open their branch network to other insurers, the report added...Read more
India's CAD narrows to $8.2bn in Q3 FY15: RBI
The RBI released the preliminary data about the country’s balance of payments (BoP) for the third quarter i.e., October-December of financial year 2014-15. On a quarter-over-quarter (q-o-q) basis, India’s current account deficit (CAD) narrowed to US$ 8.2 billion (1.6 per cent of GDP) in Q3 of 2014-15 from US$ 10.1 billion (2.0 per cent of GDP) in Q2; on a year-on-year (y-o-y) basis, however, the CAD doubled (from US$ 4.2 billion or 0.9 per cent of GDP in Q3 of 2013-14).
India’s trade deficit at $112.5bn in Q3 FY15: RBI
The RBI released the preliminary data about the country’s balance of payments (BoP) for the third quarter i.e., October-December of financial year 2014-15.
On a cumulative basis, the overall BoP shows considerable improvement on a y-o-y basis on the back of a higher growth in merchandise exports and a marginal rise in merchandise imports, with a sizable increase in net financial flows financing the CAD and enabling a large build-up of reserves..
Shriram Automall ties up with Gramin Bank of Aryavart
Shriram Automall India Limited (SAMIL), an ISO certified Company with AA rating from CRISIL, has entered in a strategic alliance with the Gramin Bank of Aryavart (GBA). As per the agreement, SAMIL will cater to the pre-owned vehicle inventory of the bank and facilitate their hassle-free disposal through its physical and online bidding platforms. Commenting on the tie-up, Sameer Malhotra (CEO of SAMIL) stated “We have signed an agreement with Gramin Bank of Aryavart to provide them holistic solutions in the disposal of their pre-owned commercial vehicles, construction equipment, tractors, cars & SUVs, three wheelers and two wheelers. Regular physical and online bidding events will be conducted with an aim to fetch maximum customer base for quick and value-for-money transactions”..
ICICI Bank launches ‘Touch n Remit’ facility for NRIs in Bahrain
ICICI Bank has tied up with SADAD Electronic Payments WLL to offer remittance service for NRIs based in Bahrain, enabling them to transfer monies instantly to India from the latter’s kiosks spread across the Kingdom of Bahrain. Christened ‘Touch n Remit’, this 24X7 remittance service is a first-of-its kind in Bahrain and is available to all NRIs, even if they don’t have an account with ICICI Bank. To avail this service, the remitters have to carry out a simple, one-time registration for themselves and beneficiary by visiting the ICICI Bank Bahrain branch. Subsequent to the registration, they can visit designated SADAD kiosks with cash and initiate money transfer to over 100 banks in India including ICICI Bank..
News Appointments
Govt appoints RP Marathe as Bank of India ED
Bank of India said that the Government of India, Ministry of Finance has appointed RP Marathe, General Manager, Bank of Saroda as Executive Director of the Bank. He has taken over the charge on March 10, 2015.
Govt appoints executive director for Canara Bank
Canara Bank said that the central government has appointed Harideesh Kumar B, presently General Manager, Vijaya Bank as Executive Director of Canara Bank, with effect from the date of his assumption of charge of the post and upto May 31, 2017 i.e., the date of his attaining the age of superannuation or until further orders, whichever is earlier, vide notification dated March 10, 2015. He has taken charge as Executive Director of the Bank w.e.f. March 11, 2015.
Govt appoints Ravi Shankar Pandey as Syndicate Bank ED
Syndicate Bank has informed BSE that the Central Government vide its notification dated March 10, 2015 has appointed Ravi Shanker Pandey, General Manager, Union Bank of India as Executive Director of the Bank from the date of his assumption of charge of the post and upto October 31, 2017 i.e. the date of his attaining the age of superannuation or until further orders, whichever is earlier.
Govt appoints RC Lodha as ED of Central Bank of India
Central Bank of India has informed BSE that in terms of Government of India, Ministry of Finance, Department of Financial Services, Notification dated March 10, 2015, R. C. Lodha, General Manager of Union Bank of India has joined the Bank as Executive Director w.e.f. March 11, 2015.
Dr. Kshatrapati Shivaji appointed as CMD, SIDBI
Dr Kshatrapati Shivaji, IAS, has taken over as Chairman & Managing Director of Small Industries Development Bank of India from March 02, 2015, in terms of the Government of India notification dated February 27, 2015.
International News
IMF Managing Director Christine Lagarde to visit India and China
Christine Lagarde, Managing Director of the International Monetary Fund (IMF), will visit India on March 16-17 and China on March 19-23, to meet with policymakers and senior officials, as well as with representatives of other sectors of society including business, women leaders, academics and students.
Lagarde will start her trip by visiting India, where she will meet with Prime Minister Narendra Modi and senior officials including Finance Minister Arun Jaitley, and Reserve Bank of India (RBI) Governor Raghuram Rajan. In addition, she will give a speech at Lady Sri Ram College in Delhi, and participate in a public event hosted by RBI in Mumbai. The visit presents an opportunity to exchange views on recent economic developments, India’s prospects and its role in the global economy.
South Korea cuts interest rate by 25bps to 1.75%
South Korea's central bank lowered its key policy rate on Thursday to a record low of 1.75 percent from 2 percent. The Monetary Policy Committee of the Bank of Korea decided to lower the Base Rate by 25 basis points from 2.00% to 1.75%, the central bank said in a statement. The central bank lowered the benchmark interest rate two times last year. In January, the central bank revised its 2015 growth outlook to 3.4 percent from 3.9 percent and downgraded its inflation projection to 1.9 percent from 2.4 percent.
Southeast Asian Banks are well positioned to withstand headwinds in 2015
Banks in most Southeast Asian countries are well positioned to face the tougher operating environment in 2015 stemming from tighter credit conditions, said Standard & Poor's Ratings Services. The days of easy credit, with low interest rates and ready availability of funding, appear to be coming to an end for banks in Southeast Asia. "High levels of household indebtedness in Singapore, Thailand, and Malaysia might leave these banking systems vulnerable to rising interest rates and asset quality pressure," said Standard & Poor's credit analyst Ivan Tan. "However, we believe banks have sufficient financial buffers to withstand these challenges.".
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