1.SBT has raised Rs 200 crs through issue of unsecured non-convertible subordinated perpetual bonds by private placement. The bonds, rated `AAA' by Crisil and CARE, carry a coupon rate of 9.34% payable annually for the first 10 years. This would be stepped up to 9.84% for all subsequent years, if the call option is not exercised by the bank at the end of the tenth year.
2. Worried over paucity of credit availability to the physical infrastructure sector, the Union Ministry of Finance has begun persuading banks to rebalance their lending portfolios. Rebalancing of credit portfolios entails shifting from some sectors to infrastructure lending, where term credit was most required. In fact, the Finance Ministry is extremely unhappy with the current phase of high non-food credit, which was largely fuelled by retail credit, including housing and real estate.
3. The Finance Minister, Mr P. Chidambaram, has urged PSBs to take a "good hard look" at how to grow their deposits to match the growing credit needs of the productive sectors of the economy. He also advised the PSBs to re-balance their loan portfolios as a "pre-emptive" measure to head-off a possible concern on liquidity.
4. The RBI is likely to restrain banks from converting more than 40% of their equity into preference shares. At present, there is no such restriction. The move comes in the backdrop of several state-owned banks seeking government approval to convert a significant chunk of their equity into preference capital to boost their EPS ahead IPOs. A recent proposal by United Bank of India to convert Rs 1,200 crs of its equity ,over 78% of the total paid-up capital of Rs 1,532 crs, into preference shares, was shot down by the apex bank. The move would have helped United Bank reduce its capital to Rs 332 crs and shore up its EPS substantially.
5. India may be `the world's second-fastest growing economy'. But that may mean nothing to nearly half of India's 1.1 billion, because they `have no access to loans and insurance,' notes www.chinapost.com.tw in a report dated November 6.
6. RBI has effected a change in the cheque clearing system in Kolkata. The revised procedure has been in place since mid-October. The introduction of the new mechanism has not effected overall clearing operations.
7. PNB has initiated various steps to widen its presence in Kerala, which inter alia includes opening of new branches and increasing the number of core banking solutions branches.
8. Lakshmi Vilas Bank has effected an upward revision in its FCNR (B), NRE and RFC deposit scheme with effect from November 1. South Indian Bank and central bank of India have also hiked their rates.
9. American Express has announced the launch of `The Platinum Club', a premium service aimed at the rapidly-growing affluent consumer segment in India. Members of the club would automatically receive the new American Express Platinum Card, their key to the host of membership benefits. Membership to the club would be available for a lifetime foundation fee of Rs 50,000.
10.ATMs will be installed at the Tiruchirapalli, Thanjavur, Chidambaram, Villupuram, Myladuthurai and Pondicherry (Puducherry) railway stations as per a MoU signed with SBI.
