1. The issues of slipping marketshare and not-so-satisfactory record with regard to customer service dominated the discussion the SBI Chairman, Mr O.P. Bhatt, recently had with 14 Chief General Managers, each heading a circle. The meeting was held in Kolkata for the first time. The two MDs and all the DMDs, among other senior officials, were also present. The meeting noted with concern that the SBI, both as an entity and as a group, was fast losing market share. The group's market share declined from more than 30% to around 25% in the past few years, while SBI's own market share dropped from around 25 % to 21%.
2. Swiss banking major Credit Suisse today announced plans for India, which include re-activating its brokerage in the country as it proposes to build an 80-member strong team for its various business activities.
3. SBI has adopted a strategy of reducing the portfolio of large corporate loans, which are lent at rates much below the bank’s prime lending rate (PLR).
4. BoI is planning a big push in funding contract farming initiatives. The bank’s agri technical team is assessing the contract farming funding proposals. It is targeting agricultural areas of south Gujarat and Mehsana in north Gujarat. The companies concerned are also directly involved in the export of agricultural products. The bank the sixth-largest in terms of assets in the country is in talks with four major corporates to lend Rs 400 crs for their proposed contract farming activities in Gujarat.
5. Foreign and private banks showed signs of panic today by rushing in the market to swap dollar funds to create rupee funds. There is a scramble among banks to raise short-term deposits as they expect liquidity to go down substantially in the coming weeks, said a treasury head of a nationalised bank. Bankers also added that bulk deposit rates for one-year deposits have also shot up to 8.50-8.75% against the average industry rate of 8-8.50%. The rate on bulk deposits changes daily unlike the retail rates.
6. Central Bank of India is awaiting the central government’s go-ahead to convert part of Rs 1,124 crs bloated equity base into preference shares. This conversion will help the bank improve its earnings per share and command good premium while floating the public issue. The bank expects to reduce its capital base up to 60 % in order to have equity base of below Rs 500 crs.
7. The SBI and ICICI Bank, at the 61st and 66th positions, respectively, are the only Indian banks that figure in the global 100 most valuable banking brands list for 2006 published by the UK-based brand valuation agency Brand Finance and The Banker magazine.
8. Both Yes Bank and Exim Bank today signed an MoU with CII - Godrej Green Business Centre (GBC) to promote small and medium enterprises in auto ancillary, textiles, gems and jewellry, media and entertainment and life sciences and biotech sectors. The objective of the MoUs is to promote green enterprises among the SMEs to make their products export-worthy. The green enterprises are typically energy efficient and help in sustaining the natural resources. The tie ups with the banks will essentially focus on the facilitation of such small and medium units. The financial institutions will focus on developing renewable energy and sustainable infrastructure among SMEs.
9. Dhanalakshmi Bank nearly tripled its net profit to Rs.7.02 crs for the half-year that ended September 30, 2006 as compared to Rs. 2.38 crs in the year-ago period, registering a growth of 195%. The total income of the bank rose by 12.3% to Rs. 129.44 crs as on September 30, 2006.
2. Swiss banking major Credit Suisse today announced plans for India, which include re-activating its brokerage in the country as it proposes to build an 80-member strong team for its various business activities.
3. SBI has adopted a strategy of reducing the portfolio of large corporate loans, which are lent at rates much below the bank’s prime lending rate (PLR).
4. BoI is planning a big push in funding contract farming initiatives. The bank’s agri technical team is assessing the contract farming funding proposals. It is targeting agricultural areas of south Gujarat and Mehsana in north Gujarat. The companies concerned are also directly involved in the export of agricultural products. The bank the sixth-largest in terms of assets in the country is in talks with four major corporates to lend Rs 400 crs for their proposed contract farming activities in Gujarat.
5. Foreign and private banks showed signs of panic today by rushing in the market to swap dollar funds to create rupee funds. There is a scramble among banks to raise short-term deposits as they expect liquidity to go down substantially in the coming weeks, said a treasury head of a nationalised bank. Bankers also added that bulk deposit rates for one-year deposits have also shot up to 8.50-8.75% against the average industry rate of 8-8.50%. The rate on bulk deposits changes daily unlike the retail rates.
6. Central Bank of India is awaiting the central government’s go-ahead to convert part of Rs 1,124 crs bloated equity base into preference shares. This conversion will help the bank improve its earnings per share and command good premium while floating the public issue. The bank expects to reduce its capital base up to 60 % in order to have equity base of below Rs 500 crs.
7. The SBI and ICICI Bank, at the 61st and 66th positions, respectively, are the only Indian banks that figure in the global 100 most valuable banking brands list for 2006 published by the UK-based brand valuation agency Brand Finance and The Banker magazine.
8. Both Yes Bank and Exim Bank today signed an MoU with CII - Godrej Green Business Centre (GBC) to promote small and medium enterprises in auto ancillary, textiles, gems and jewellry, media and entertainment and life sciences and biotech sectors. The objective of the MoUs is to promote green enterprises among the SMEs to make their products export-worthy. The green enterprises are typically energy efficient and help in sustaining the natural resources. The tie ups with the banks will essentially focus on the facilitation of such small and medium units. The financial institutions will focus on developing renewable energy and sustainable infrastructure among SMEs.
9. Dhanalakshmi Bank nearly tripled its net profit to Rs.7.02 crs for the half-year that ended September 30, 2006 as compared to Rs. 2.38 crs in the year-ago period, registering a growth of 195%. The total income of the bank rose by 12.3% to Rs. 129.44 crs as on September 30, 2006.
