1. Indian Bank may tap the capital market with an IPO sometime in the first quarter of 2007. It has already taken up a capital rejig to strengthen its balance sheet ahead of the planned IPO next year. 2 new products of the bank - SB Platinum and Premium Current Account, have been introduced. These two offerings, which come with auto sweep facility, transfer the funds in savings bank or current account (over a certain threshold balance) to fixed deposits that earn higher interest for the customer. SB Platinum has a host of add-ons such as life-insurance cover and personal accident insurance cover, free ATM-cum-Debit card, and at par demand drafts . Similarily, the Premium Current Account has features such as ATM-cum-Global debit card and at par demand drafts. Other services such as phone banking, mobile banking, Internet banking would also be available.
2. Chief economic advisor Ashok Lahiri has said that size, credit outreach, technology and customer service are key challenges for Indian banks.He pointed out that except for the SBI, no Indian bank features in the top 100 list of global banking biggies at the seminar titled Global Banking: Emerging Challenges and Opportunity.
3. Development Credit Bank ,which got listed last month, plans to further increase its net worth to Rs 500 crs from around Rs 350 crs through more capital issuances. The fresh floats will also help dilute the stake of Aga Khan Fund for Economic Development, the promoter, from over 31% to within the RBI permitted 10%. RBI has asked DCB to reduce AKFED’s stake to the maximum permitted, by March 31, 2007.
4. RBI would consider adopting some practices followed by the central bank of Mexico, including elimination of commission on inter-bank transactions. Elimination of commission on inter-bank transaction would lead to an end to charges levied for certain services.
5. SBI is drawing up a retail and agricultural banking strategy to reclaim lost market share. Its market share in total assets fell to nearly 17% from over 19% in 2006-07, as private and foreign banks gained on the back of a sizzling growth in retail loans. ICICI’s share in banking assets jumped to over 9% last year from over 7% a year earlier. SBI proposes to carve out retail and agricultural banking as separate strategic focus areas. Retail, for the time being will be a focus area and could be converted into a strategic business unit depending on its performance later.
6. Standard Chartered Bank has launched its NRI Swagat account, which addresses specific banking requirements of NRIs with roots in Kerala and Punjab. The account comes in two variants - one targeting NRIs/PIOs with their origins in Kerala and the other for NRIs with their roots in Punjab. This product has the regular features of a NRE savings account. Both the principal and interest can be remitted overseas without any limitations and no tax deduction at source. The NRI Swagat account also allows unlimited free cash withdrawals from the account through VISA ATMs across the globe.
7. IDFC has announced the purchase of 8.71% equity in ARCIL for a consideration of Rs 57.46 crs. Arcil, India's first asset restructuring company, is sponsored by SBI, ICICI Bank, IDBI and PNB. IDFC has subscribed to the un-subscribed portion of the rights issue offer by Arcil, which closed last month. The infrastructure finance company will be paying Rs 30 per share.
2. Chief economic advisor Ashok Lahiri has said that size, credit outreach, technology and customer service are key challenges for Indian banks.He pointed out that except for the SBI, no Indian bank features in the top 100 list of global banking biggies at the seminar titled Global Banking: Emerging Challenges and Opportunity.
3. Development Credit Bank ,which got listed last month, plans to further increase its net worth to Rs 500 crs from around Rs 350 crs through more capital issuances. The fresh floats will also help dilute the stake of Aga Khan Fund for Economic Development, the promoter, from over 31% to within the RBI permitted 10%. RBI has asked DCB to reduce AKFED’s stake to the maximum permitted, by March 31, 2007.
4. RBI would consider adopting some practices followed by the central bank of Mexico, including elimination of commission on inter-bank transactions. Elimination of commission on inter-bank transaction would lead to an end to charges levied for certain services.
5. SBI is drawing up a retail and agricultural banking strategy to reclaim lost market share. Its market share in total assets fell to nearly 17% from over 19% in 2006-07, as private and foreign banks gained on the back of a sizzling growth in retail loans. ICICI’s share in banking assets jumped to over 9% last year from over 7% a year earlier. SBI proposes to carve out retail and agricultural banking as separate strategic focus areas. Retail, for the time being will be a focus area and could be converted into a strategic business unit depending on its performance later.
6. Standard Chartered Bank has launched its NRI Swagat account, which addresses specific banking requirements of NRIs with roots in Kerala and Punjab. The account comes in two variants - one targeting NRIs/PIOs with their origins in Kerala and the other for NRIs with their roots in Punjab. This product has the regular features of a NRE savings account. Both the principal and interest can be remitted overseas without any limitations and no tax deduction at source. The NRI Swagat account also allows unlimited free cash withdrawals from the account through VISA ATMs across the globe.
7. IDFC has announced the purchase of 8.71% equity in ARCIL for a consideration of Rs 57.46 crs. Arcil, India's first asset restructuring company, is sponsored by SBI, ICICI Bank, IDBI and PNB. IDFC has subscribed to the un-subscribed portion of the rights issue offer by Arcil, which closed last month. The infrastructure finance company will be paying Rs 30 per share.
