1. Banks may lose between Rs 7,200 crs and Rs 9,000 crs as bad assets on housing loans disbursed over the last four years, with the Municipal Corporation of Delhi systematically demolishing illegal property. Delhi witnesses sales of around 25,000 residential properties in a market of about Rs 12,000-15,000 crs. On an average, about 60% property value is financed by banks. There are around 50 banks operating through 2,000 branches in Delhi. The problem has arisen since banks, in a rush to beat rivals, have financed loans without proper documentation. Legally, banks are supposed to release loans after ensuring that title deeds, the form A (map approval), form C (water), form D (electricity) and the form E (completion certificate) issued by the MCD are in place. But most banks and housing finance companies have been financing properties without the form E, and in some cases, the form C and D.
2. The accelerated initiatives by banks to promote micro-finance through the SHGs model has seen impressive results during 2005-06. This has been manifested by the fact that banks extended loans of Rs 4,499 crs to the SHGs during 2005-06, recording a growth of 50% over the previous year. The number of families supported through the SHGs increased by 35% from 24.3 mn as on March 31, 2005 to over 32.9 mn as on March 31, 2006. Meanwhile, total refinance support increased by 10% to Rs 1,068 crs during 2005-06 from Rs 968 crs during the preceding year.
3. ICICI Bank, intends to thrust on the micro-finance area to address rural India’s poverty issues. The bank intends to provide loans to the extent of $10 billion by the year 2010. In the past three years, the bank has been operating in the micro-finance space with over 100 micro finance partners. Over this period, lending has grown from $1.2 mn to 20,000 clients to $522 mn to around 3 mn clients in 2006.
4. SBI will set up ATMs at 11 railway stations in Chhattisgarh for internet banking and sale of monthly tickets and other services to commuters. The stations were yet to be identified. SBI was working on re-orientation of staff to deliver better customer care, besides modernising branches, upgrading technology and setting up more ATMs in Chhattisgarh. The orientation programme for better customer care was necessary to boost business. SBI would be upgrading technology at its branches for speedier service. SBI had 222 branches in the state, of which more than 50% were in rural areas.
5. RBI has imposed some restrictions on the ailing Sangli Bank, including expansion of advances, as the small-size private sector bank’s CAR has fallen to 1.84%
6. RBI has proposed a complete restructuring of the operations of the Deposit Insurance and Credit Guarantee Corporation of India (DICGC).
7. RBI should, by the end of March 2007, allow rupee-denominated external commercial borrowings (ECBs), raise the ceiling on the amount of foreign exchange corporates can remit overseas and liberalise non-resident investment in debt instruments, according to S S Tarapore, former RBI deputy governor and chairman of the Committee on Fuller Capital Account Convertibility. ECBs denominated in rupees but repayable in foreign exchange need to be encouraged so as to diversify the exchange risks for Indian borrowers.
2. The accelerated initiatives by banks to promote micro-finance through the SHGs model has seen impressive results during 2005-06. This has been manifested by the fact that banks extended loans of Rs 4,499 crs to the SHGs during 2005-06, recording a growth of 50% over the previous year. The number of families supported through the SHGs increased by 35% from 24.3 mn as on March 31, 2005 to over 32.9 mn as on March 31, 2006. Meanwhile, total refinance support increased by 10% to Rs 1,068 crs during 2005-06 from Rs 968 crs during the preceding year.
3. ICICI Bank, intends to thrust on the micro-finance area to address rural India’s poverty issues. The bank intends to provide loans to the extent of $10 billion by the year 2010. In the past three years, the bank has been operating in the micro-finance space with over 100 micro finance partners. Over this period, lending has grown from $1.2 mn to 20,000 clients to $522 mn to around 3 mn clients in 2006.
4. SBI will set up ATMs at 11 railway stations in Chhattisgarh for internet banking and sale of monthly tickets and other services to commuters. The stations were yet to be identified. SBI was working on re-orientation of staff to deliver better customer care, besides modernising branches, upgrading technology and setting up more ATMs in Chhattisgarh. The orientation programme for better customer care was necessary to boost business. SBI would be upgrading technology at its branches for speedier service. SBI had 222 branches in the state, of which more than 50% were in rural areas.
5. RBI has imposed some restrictions on the ailing Sangli Bank, including expansion of advances, as the small-size private sector bank’s CAR has fallen to 1.84%
6. RBI has proposed a complete restructuring of the operations of the Deposit Insurance and Credit Guarantee Corporation of India (DICGC).
7. RBI should, by the end of March 2007, allow rupee-denominated external commercial borrowings (ECBs), raise the ceiling on the amount of foreign exchange corporates can remit overseas and liberalise non-resident investment in debt instruments, according to S S Tarapore, former RBI deputy governor and chairman of the Committee on Fuller Capital Account Convertibility. ECBs denominated in rupees but repayable in foreign exchange need to be encouraged so as to diversify the exchange risks for Indian borrowers.
