1. The stringent KYC norms had forced banks to put off many small customers or those aspiring to be part of the banking system. RBI has now done away with the requirement to follow the KYC norms for customers in cases where the outstanding balance is not more than Rs 50,000 and the maximum transaction is not more than Rs 2 lakh. In such cases, customers will need to provide just a photograph and self certification of address. However, as and when the transaction size and the balance increase beyond the limit, banks would be required to follow the normal KYC norms.
2. Indian banks have got a badly needed breather. They now have more time to gear up to meet more stringent norms on capital standards set out by the BIS. RBI seems to have taken a cue from some of its peers in the Asian region and some emerging market countries by pushing back the deadline for implementing the new capital standards called, Basel-II norms. The RBI has decided to postpone the deadline for implementing these norms by a maximum of two years until ’09. The regulator has said that foreign banks and those banks which have an overseas presence will be required to adopt the new capital accord by ’08, while others will be required to conform to the norms by ’09.
3. RBI has partially relaxed the branch licensing policy for UCBs after a three-year ban. Strong UCBs may also be able to bolster their capital funds by issuing perpetual debt instruments, special category shares and preference shares. All the 35 multi-state co-operative banks and financially sound co-operative banks in eight states that have signed an MoU with the RBI will be allowed to convert their extension counters into full-fledged branches. The move is expected to trigger the Maharashtra government to expedite signing of the MoU with RBI to end dual regulation of these banks.
4.IndusInd Bank Ltd has got approvals from the RBI to open 10 more branches, mainly in su and rural areas, and start 100 new offsite ATMs. The bank plans to open these branches by end 2007. At present, it has a network of 147 branches and 84 offsite ATMs.
5. Aided by a robust credit growth, BOM expects to post higher profits in the second half of the current financial year than the levels recorded in the first six months. The bank had registered a net profit of about Rs 121 crs in April-Sept, 2006. The bank expects to grow its advances to Rs 22,000 crs as on March 31, 2007, from a level of about Rs 17,000 crs as on March 31, 2006. Total advances as on September 30 this year stood at Rs 19,200 crs, which represents a 36.82% year-on-year growth. The bank has set for itself a business turnover target of Rs 1 lakh crs by 2009. The bank also plans to spend Rs 77 crs for bringing 600 branches under the core banking solutions (CBS) over the next two years.
6. Syndicate Bank has entered into a MOU with the Tirumala Tirupati Devasthanam for accepting devotees' offerings at any of its branches across the country, apart from its branches at Tirupati, Tirumala, Tiruchanoor and its overseas unit in London. Under the MoU signed with TTD, Syndicate Bank will issue pre-denominated receipts of Rs 101, Rs 501, Rs 1,001 and Rs 5,001 free-of-cost to any devotee.
2. Indian banks have got a badly needed breather. They now have more time to gear up to meet more stringent norms on capital standards set out by the BIS. RBI seems to have taken a cue from some of its peers in the Asian region and some emerging market countries by pushing back the deadline for implementing the new capital standards called, Basel-II norms. The RBI has decided to postpone the deadline for implementing these norms by a maximum of two years until ’09. The regulator has said that foreign banks and those banks which have an overseas presence will be required to adopt the new capital accord by ’08, while others will be required to conform to the norms by ’09.
3. RBI has partially relaxed the branch licensing policy for UCBs after a three-year ban. Strong UCBs may also be able to bolster their capital funds by issuing perpetual debt instruments, special category shares and preference shares. All the 35 multi-state co-operative banks and financially sound co-operative banks in eight states that have signed an MoU with the RBI will be allowed to convert their extension counters into full-fledged branches. The move is expected to trigger the Maharashtra government to expedite signing of the MoU with RBI to end dual regulation of these banks.
4.IndusInd Bank Ltd has got approvals from the RBI to open 10 more branches, mainly in su and rural areas, and start 100 new offsite ATMs. The bank plans to open these branches by end 2007. At present, it has a network of 147 branches and 84 offsite ATMs.
5. Aided by a robust credit growth, BOM expects to post higher profits in the second half of the current financial year than the levels recorded in the first six months. The bank had registered a net profit of about Rs 121 crs in April-Sept, 2006. The bank expects to grow its advances to Rs 22,000 crs as on March 31, 2007, from a level of about Rs 17,000 crs as on March 31, 2006. Total advances as on September 30 this year stood at Rs 19,200 crs, which represents a 36.82% year-on-year growth. The bank has set for itself a business turnover target of Rs 1 lakh crs by 2009. The bank also plans to spend Rs 77 crs for bringing 600 branches under the core banking solutions (CBS) over the next two years.
6. Syndicate Bank has entered into a MOU with the Tirumala Tirupati Devasthanam for accepting devotees' offerings at any of its branches across the country, apart from its branches at Tirupati, Tirumala, Tiruchanoor and its overseas unit in London. Under the MoU signed with TTD, Syndicate Bank will issue pre-denominated receipts of Rs 101, Rs 501, Rs 1,001 and Rs 5,001 free-of-cost to any devotee.
