Round up of the major headlines that dominated the banking sector, nationally and internationally.
Reserve Bank of India has, with the concurrence of the Government of India, decided to extend the SAARC Currency Swap Arrangement till November 14, 2017.
It may be recalled that the SAARC Swap Arrangement was offered by the RBI to SAARC nations on November 15, 2012.
The government is considering a proposal to increase the cap on foreign institutional investment in public sector banks to 49 per cent from 20 per cent. The move comes at a time public sector banks need equity capital while their stocks have taken a hammering after reporting huge losses in the third quarter due to a sharp rise in non-performing assets, banking industry sources said.
Standard Chartered on Tuesday said it has incurred a pre-tax loss of $981 million from its India operations owing to rise in impaired assets to $1.3 billion in 2015, the bank said in its annual report.
The state government is committed to extending banking services to all gram panchayats (GPs) that don't have banks, chief secretary Aditya Prasad Padhi said here on Monday.
Consolidation of state-run lenders has climbed to the top of the banking reforms agenda as the cleaning up of their account books gets under way.
Government owned IDBI Bank would sell some of its non-core assets and would place equity with the largest domestic investor, Life Insurance Corporation to raise capital. On Tuesday, the government owned bank, IDBI Bank, received approval from market regulator, Sebi, to raise Rs 3771 crore from qualified investors.
Unsure about valuations and interest from investors, public sector banks are yet to actively pursue the sale of non-core assets as a way to boost their capital base, which has seen an erosion due to the increase in stressed assets.
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