1. RBI is under pressure to reduce the cash reserve ratio for banks from the existing 5% to help them meet the increasing demand for credit. In the current financial year, bank credit has been growing at a healthy clip of over 30%.A 1% CRR cut releases funds to the tune of Rs 22,000 crs.
2. To make sure their voice is not lost in the corridors of power, the India CEOs of 12 banks have formed a pressure group within the IBA. The group had its first meeting and will henceforth meet once every quarter. Sanjay Nayar, CEO of Citigroup in India, is the chairman of this standing committee of foreign sector banks. The other banks in the group are HSBC, Standard Chartered, Deutsche Bank, BNP Paribas, ABN Amro, Bank of America, American Express, DBS Bank, JP Morgan, Barclays, and Calyon.
3. RBI is reviewing its policy of not allowing multilateral agencies to provide loans to banks. The review might result in multilateral agencies such as the International Finance Corporation (IFC) and Asian Development Bank (ADB) being allowed to lend to banks and financial institutions, including PSBs.
4. Japan’s Shinsei Bank has announced an exclusive tie-up with the largest MF UTI asset management company for launching a diversified offshore fund to mobilise over $ 300 mn.
5. UBI is being chased by four new life insurance companies to make the Mumbai-based bank a shareholder in their ventures. Italy’s largest insurer Generali, Japan’s Dai-Ichi Mutual Life Insurance, which has tied up with BOI, Germany’s second largest primary insurer The Ergo Insurance Group, and interestingly, Bharti Axa life insurance company, which commenced operations in August, have already made presentations to Union Bank.
6. HSBC is launching a new cash management product, titled National Network Collections. It will help customers keep track of their receivables while helping them reduce their working capital cycle and cutting costs by between 2 -20%. Access to timely and relevant management information and cost efficiencies are key cash management issues for the customers. The product would reduce the working capital cycle for users by between 3 and 4 days on the average.
7. Loans to SHGs engaged in agriculture and allied activities will now be categorised as direct finance to agriculture within the priority sector. It is in response to banks requesting for the change. Banks will have to maintain separate data on SHG--micro credit portfolios. The loans provided to NGOs or SHGs for on-lending to members or small groups are to be classified as priority sector advances.
8. In its efforts to ensure speedy flow of credit to industrial customers, the Andhra Pradesh State Financial Corporation has entered into a MoU with Canara Bank. Sanction of term loans up to Rs 5 crs by the APSFC would now be possible. Canara Bank will assist in larger term loan sanction in projects with requirement of more than Rs 5 crs, as per the MoU. Bigger projects would be funded by the APSFC and Canara Bank on a consortium basis. APSFC has forged similar strategic alliances with the BOI, SBH, Andhra Bank and Central Bank of India. In addition to speedy flow of credit, easy facility of working capital to all the existing industrialists and new entrepreneurs in the State would be facilitated.
2. To make sure their voice is not lost in the corridors of power, the India CEOs of 12 banks have formed a pressure group within the IBA. The group had its first meeting and will henceforth meet once every quarter. Sanjay Nayar, CEO of Citigroup in India, is the chairman of this standing committee of foreign sector banks. The other banks in the group are HSBC, Standard Chartered, Deutsche Bank, BNP Paribas, ABN Amro, Bank of America, American Express, DBS Bank, JP Morgan, Barclays, and Calyon.
3. RBI is reviewing its policy of not allowing multilateral agencies to provide loans to banks. The review might result in multilateral agencies such as the International Finance Corporation (IFC) and Asian Development Bank (ADB) being allowed to lend to banks and financial institutions, including PSBs.
4. Japan’s Shinsei Bank has announced an exclusive tie-up with the largest MF UTI asset management company for launching a diversified offshore fund to mobilise over $ 300 mn.
5. UBI is being chased by four new life insurance companies to make the Mumbai-based bank a shareholder in their ventures. Italy’s largest insurer Generali, Japan’s Dai-Ichi Mutual Life Insurance, which has tied up with BOI, Germany’s second largest primary insurer The Ergo Insurance Group, and interestingly, Bharti Axa life insurance company, which commenced operations in August, have already made presentations to Union Bank.
6. HSBC is launching a new cash management product, titled National Network Collections. It will help customers keep track of their receivables while helping them reduce their working capital cycle and cutting costs by between 2 -20%. Access to timely and relevant management information and cost efficiencies are key cash management issues for the customers. The product would reduce the working capital cycle for users by between 3 and 4 days on the average.
7. Loans to SHGs engaged in agriculture and allied activities will now be categorised as direct finance to agriculture within the priority sector. It is in response to banks requesting for the change. Banks will have to maintain separate data on SHG--micro credit portfolios. The loans provided to NGOs or SHGs for on-lending to members or small groups are to be classified as priority sector advances.
8. In its efforts to ensure speedy flow of credit to industrial customers, the Andhra Pradesh State Financial Corporation has entered into a MoU with Canara Bank. Sanction of term loans up to Rs 5 crs by the APSFC would now be possible. Canara Bank will assist in larger term loan sanction in projects with requirement of more than Rs 5 crs, as per the MoU. Bigger projects would be funded by the APSFC and Canara Bank on a consortium basis. APSFC has forged similar strategic alliances with the BOI, SBH, Andhra Bank and Central Bank of India. In addition to speedy flow of credit, easy facility of working capital to all the existing industrialists and new entrepreneurs in the State would be facilitated.
