1. For IDBI Capital, which recently launched its online trading service, paisabuilder.in, tying up with PSBs is an easier way of reaching out to a larger number of people.
2. PSBs fear that the proposed revision in priority sector guidelines, if implemented, would lead to a shortfall in meeting targets. The proposed guidelines are likely to compound the problem (of meeting priority lending obligations) further. PSBs as a group had failed to meet the sub-targets for lending to agriculture and weaker sections in 2005-06.
3. The government should allow the RBI to increase the share of gold in the country’s foreign exchange reserves to diversify risks arising from volatility in global currencies.
4. Barclays Bank’s total lending in India is just over Rs 4 crs, but its off-balance sheet liabilities are over Rs 2,50,000 crs. If the RBI goes ahead and implements its revised priority sector lending guidelines from April 1, 2007, then the British bank will have to lend over Rs 1,200 crs to priority sectors. That’s because the draft guidelines propose to use either the net bank credit or credit equivalent of off-balance sheet exposure as the base for calculating bank’s priority sector lending obligations. Barclays Bank is not much into lending activities, but its investment banking and derivatives business has seen a sharp rise over the last couple of years as Indian corporates went on a fund raising spree. Foreign banks are required to lend 32 % of net bank credit or credit equivalent of off-balance sheet (OBS) exposure to priority sectors such as agriculture, small scale industries, small business/service enterprises, micro credit, education loans and housing loans.
5. As many as eleven banks, including PNB , Canara Bank and BOB, are planning to enter the lucrative insurance market in joint ventures with leading overseas insurance companies in 2007Besides a foreign partner, banks are expected to enter the market with one domestic player as overseas insurers’ holding is capped at 26%, while banks are permitted to hold a maximum 49% in any insurance JV.
6. With yields showing signs of softening on the back of a rising liquidity, banks have begun extending the maturity of their investments in government securities. The ten-year yield to maturity dropped by more than 20 bps over the last three weeks to 7.44% currently.
7. Kotak Mahindra Bank has plans to expand its overseas operations, in West Asia, Far East and Japan. It plans to handhold overseas investors and help them tap into the India story. Currently, it is managing a portfolio of about $1.3 bn through its UK subsidiary, which is about 5% of the bank's overall portfolio; it expects to increase this to about 25 % within next 3-4 years. It may raise about Rs 300 crs as Tier II Capital.
8. In a bid to control recruitment costs and raise productivity of its HR personnel, ICICI Bank is in talks with Internet service providers such as Reliance Infocomm for providing interview cubicles with audio-visual recording and tele-conferencing facilities. ICICI bank expects to hire 15,000 people every year for the next several years and most of the recruits will come from tier-II cities. It will set up separate kiosks inside the branch where candidates can attend interviews besides submitting resumes and job application forms. This will enable candidates to attend interviews at centres nearest to their homes, instead of travelling to Mumbai, where interviews generally take place.
2. PSBs fear that the proposed revision in priority sector guidelines, if implemented, would lead to a shortfall in meeting targets. The proposed guidelines are likely to compound the problem (of meeting priority lending obligations) further. PSBs as a group had failed to meet the sub-targets for lending to agriculture and weaker sections in 2005-06.
3. The government should allow the RBI to increase the share of gold in the country’s foreign exchange reserves to diversify risks arising from volatility in global currencies.
4. Barclays Bank’s total lending in India is just over Rs 4 crs, but its off-balance sheet liabilities are over Rs 2,50,000 crs. If the RBI goes ahead and implements its revised priority sector lending guidelines from April 1, 2007, then the British bank will have to lend over Rs 1,200 crs to priority sectors. That’s because the draft guidelines propose to use either the net bank credit or credit equivalent of off-balance sheet exposure as the base for calculating bank’s priority sector lending obligations. Barclays Bank is not much into lending activities, but its investment banking and derivatives business has seen a sharp rise over the last couple of years as Indian corporates went on a fund raising spree. Foreign banks are required to lend 32 % of net bank credit or credit equivalent of off-balance sheet (OBS) exposure to priority sectors such as agriculture, small scale industries, small business/service enterprises, micro credit, education loans and housing loans.
5. As many as eleven banks, including PNB , Canara Bank and BOB, are planning to enter the lucrative insurance market in joint ventures with leading overseas insurance companies in 2007Besides a foreign partner, banks are expected to enter the market with one domestic player as overseas insurers’ holding is capped at 26%, while banks are permitted to hold a maximum 49% in any insurance JV.
6. With yields showing signs of softening on the back of a rising liquidity, banks have begun extending the maturity of their investments in government securities. The ten-year yield to maturity dropped by more than 20 bps over the last three weeks to 7.44% currently.
7. Kotak Mahindra Bank has plans to expand its overseas operations, in West Asia, Far East and Japan. It plans to handhold overseas investors and help them tap into the India story. Currently, it is managing a portfolio of about $1.3 bn through its UK subsidiary, which is about 5% of the bank's overall portfolio; it expects to increase this to about 25 % within next 3-4 years. It may raise about Rs 300 crs as Tier II Capital.
8. In a bid to control recruitment costs and raise productivity of its HR personnel, ICICI Bank is in talks with Internet service providers such as Reliance Infocomm for providing interview cubicles with audio-visual recording and tele-conferencing facilities. ICICI bank expects to hire 15,000 people every year for the next several years and most of the recruits will come from tier-II cities. It will set up separate kiosks inside the branch where candidates can attend interviews besides submitting resumes and job application forms. This will enable candidates to attend interviews at centres nearest to their homes, instead of travelling to Mumbai, where interviews generally take place.
