1. HSBC India is looking to reach out to new consumer segments through offerings such as its recently launched HSBC Pragati Finance. It has enabled the bank to offer consumer finance to people who have no credit history and are unable to prove their repayment ability, but actually have the ability to repay. This product will help people who have so far had limited access to organised lending.
2. People in India, especially young people, have become more comfortable with borrowing for consumption. However, despite the growth in borrowing for consumption, the level of consumer debt in India is still low.
3. RBI has cautioned banks against near-term market risks arising from a possible abrupt asset portfolio reallocation globally. The source of such risk is the continuing large global financial imbalances.
4. Bank credit to the priority sector increased by 33.7% to touch Rs 5,09,910 crs as on March 31, 2006. In the previous year, such credits increased 40.3% to Rs 3,81,476 crs as on Mar 18, 05. Ag. and housing were the major beneficiaries, which together accounted for more than two-third of incremental priority sector lending in 2005-06. Loans and advances grew by 31.8% during 2005-06 on top of the increase of 33.2% in the previous year. Deposit growth was 17.8% against 16.6%. While PSBs as a group achieved the priority sector target of 40% of net bank credit as on the last Friday of March 06, the sub-targets of 18% of NBC to agriculture sector and 10% of NBC to the weaker sections were not met. Total priority sector advances extended by private sector banks increased by 52.25% in 2005-06. None of the private sector banks could meet the sub-targets for agriculture and weaker sections. Off-balance sheet exposures of SCBs rose sharply by 50% in 2005-06 over and above the increase of 58% in 2004-05.
5. Now with the possibility of sitting at home and accessing the records of all registered companies in the country, as many as 90,000 company records have been viewed over the MCA portal by around 30,000 registered users. This has happened in a span of about two months, after the Ministry of Company Affairs initiated e-filing of company records. The portal now gets 5.8 mn hits per day. The project, which is in partnership with TCS, covers at present 20 Registrar of Companies (ROC), four Regional Directorates and about 53 locations across the country. With this, companies no longer have to go to the ROC office to file their statutory documents, instead they can be filed online.
6. Following a boom in the domestic real estate market, banks’ exposure to sensitive sectors increased sharply to 19% of the total loan book in 2005-06. Lending to sensitive sectors (real estate, capital markets and commodities) increased to Rs 2,86,691 crs during 2005-06, an increase of 75% over Rs 1,63,831 crs recorded last year. The huge increase in the exposure was mainly due to more loans to the real estate market, which constituted 91% of the total loans to sensitive sectors, against 88.7% of the previous year. Lending to real estate rose 82% to Rs 2,60,223 crs in financial year 2005-06.
7. Over 6,000 officers including one CGM in foreign business division have sought an early separation (retirement) from SBI.
2. People in India, especially young people, have become more comfortable with borrowing for consumption. However, despite the growth in borrowing for consumption, the level of consumer debt in India is still low.
3. RBI has cautioned banks against near-term market risks arising from a possible abrupt asset portfolio reallocation globally. The source of such risk is the continuing large global financial imbalances.
4. Bank credit to the priority sector increased by 33.7% to touch Rs 5,09,910 crs as on March 31, 2006. In the previous year, such credits increased 40.3% to Rs 3,81,476 crs as on Mar 18, 05. Ag. and housing were the major beneficiaries, which together accounted for more than two-third of incremental priority sector lending in 2005-06. Loans and advances grew by 31.8% during 2005-06 on top of the increase of 33.2% in the previous year. Deposit growth was 17.8% against 16.6%. While PSBs as a group achieved the priority sector target of 40% of net bank credit as on the last Friday of March 06, the sub-targets of 18% of NBC to agriculture sector and 10% of NBC to the weaker sections were not met. Total priority sector advances extended by private sector banks increased by 52.25% in 2005-06. None of the private sector banks could meet the sub-targets for agriculture and weaker sections. Off-balance sheet exposures of SCBs rose sharply by 50% in 2005-06 over and above the increase of 58% in 2004-05.
5. Now with the possibility of sitting at home and accessing the records of all registered companies in the country, as many as 90,000 company records have been viewed over the MCA portal by around 30,000 registered users. This has happened in a span of about two months, after the Ministry of Company Affairs initiated e-filing of company records. The portal now gets 5.8 mn hits per day. The project, which is in partnership with TCS, covers at present 20 Registrar of Companies (ROC), four Regional Directorates and about 53 locations across the country. With this, companies no longer have to go to the ROC office to file their statutory documents, instead they can be filed online.
6. Following a boom in the domestic real estate market, banks’ exposure to sensitive sectors increased sharply to 19% of the total loan book in 2005-06. Lending to sensitive sectors (real estate, capital markets and commodities) increased to Rs 2,86,691 crs during 2005-06, an increase of 75% over Rs 1,63,831 crs recorded last year. The huge increase in the exposure was mainly due to more loans to the real estate market, which constituted 91% of the total loans to sensitive sectors, against 88.7% of the previous year. Lending to real estate rose 82% to Rs 2,60,223 crs in financial year 2005-06.
7. Over 6,000 officers including one CGM in foreign business division have sought an early separation (retirement) from SBI.
