1. Know Your Customer is the mantra banks are chanting, but what of the ways of the banks? Does the average customer know the intricacies of banking operations? Banking has gone hi-tech, but that has not made bank operations transparent. Indeed, many of the creative practices are conveniently blamed on the nameless, voiceless computer.
2. The Government of Singapore holds 2.55% of Indian bank's shares. The Monetary Authority of Singapore (MAS), Singapore's central bank, holds another 1.4%. Together, they hold close to 4%stake in Indian Bank, or roughly 20% of the bank's floating stock.The Singaporeans are in good company, for the FII holding in the bank has been rising. On February 23, the day the public-issued shares were allotted, FII holding in the bank was 6.83%. As on April 13, FII holding stood at 11.68%, which is more than half the floating stock of the bank.
3. Public sector banks' move to raise bulk deposits at higher interest rates in March may come under Government scanner.A number of PSBs had gone in for such a strategy to tide over their fund crunch in the last quarter of the fiscal 2007-08.The Finance Minister, Mr P. Chidambaram, is likely to take up the `bulk deposits' matter during his meeting with Chief Executives of PSBs here on April 19.Indications are that the impact on profitability due to this move would be discussed. Bulk deposits had to a large extent helped the banking industry in accelerating its deposit growth during the fourth quarter of 2006-07.
4. SEBI has capped mutual funds' exposure to short-term bank deposits at 15% in order to ensure that the money they have collected are deployed in line with investment objectives.The regulator, which has referred to clause 8 of Schedule VII of SEBI (Mutual Funds) Regulations, 1996 (pertaining to investment in short-term deposits of scheduled commercial banks, pending deployment), has issued a set of guidelines for parking funds in such deposits."Short term" will be treated as a period not exceeding 91 days, SEBI has stated, adding that no fund can put more than 15 per cent of its net assets in deposits of all scheduled commercial banks put together.This, however, may be increased to 20%, provided the trustees give prior approval.
5. Banks with a pan-India branch network are leveraging their distribution strength and wrangling out hefty premiums from the second-rung insurance multinationals which are eager to break into the Indian market.Earlier, it was the Allahabad Bank-led non-life insurance venture, where Japanese insurer Sompo paid a premium Rs 22 per equity share of Rs 10 each for its 26% stake. E&Y had acted as consultant for the Allahabad Bank-led consortium. Allahabad Bank was followed by Bangalore-based Canara Bank, which is understood to have got an one-time payment of around Rs 120 crore from HSBC for its proposed life insurance joint venture.More recently, it was Bank of Baroda, which partnered UK Insurer Legal & General for life insurance. Although, the figures are not public, the market speculation has it that BoB has got around Rs 220 crore for partnering L&G.With other PSU banks setting the trend, it is now the turn of Bank of India and Union Bank of India to seek a premium. Dai Ichi Mutual Life Insurance of Japan is likely to pay a premium per equity share for its 26% stake in the proposed life insurance JV with Bank of India (BoI) and Union Bank of India.
6. A weak dollar may not be a good news for the central bank. For the RBI, which holds a bulk of its foreign currency assets in US dollars, a weak dollar or a strong rupee also poses an additional challenge in treasury management since the returns are not attractive in a depreciating currency.With the rupee making one of its fastest gains against the dollar, the returns on reserves could come under pressure, if the central bank continues with its current mix of currency reserves which is known to be very dollar-centric. A senior treasury official with a private sector bank said, “The trend in the currency markets indicates that the dollar is no longer a preferred currency, and it is right time to sell dollars and move to more stronger currencies.”
7. Dena Gujarat Gramin Bank (DGGB) has managed to bring down its present gross non performing assets (NPAs) by 1.40 % compared to previous year through an enhanced focus on debt recovery.
2. The Government of Singapore holds 2.55% of Indian bank's shares. The Monetary Authority of Singapore (MAS), Singapore's central bank, holds another 1.4%. Together, they hold close to 4%stake in Indian Bank, or roughly 20% of the bank's floating stock.The Singaporeans are in good company, for the FII holding in the bank has been rising. On February 23, the day the public-issued shares were allotted, FII holding in the bank was 6.83%. As on April 13, FII holding stood at 11.68%, which is more than half the floating stock of the bank.
3. Public sector banks' move to raise bulk deposits at higher interest rates in March may come under Government scanner.A number of PSBs had gone in for such a strategy to tide over their fund crunch in the last quarter of the fiscal 2007-08.The Finance Minister, Mr P. Chidambaram, is likely to take up the `bulk deposits' matter during his meeting with Chief Executives of PSBs here on April 19.Indications are that the impact on profitability due to this move would be discussed. Bulk deposits had to a large extent helped the banking industry in accelerating its deposit growth during the fourth quarter of 2006-07.
4. SEBI has capped mutual funds' exposure to short-term bank deposits at 15% in order to ensure that the money they have collected are deployed in line with investment objectives.The regulator, which has referred to clause 8 of Schedule VII of SEBI (Mutual Funds) Regulations, 1996 (pertaining to investment in short-term deposits of scheduled commercial banks, pending deployment), has issued a set of guidelines for parking funds in such deposits."Short term" will be treated as a period not exceeding 91 days, SEBI has stated, adding that no fund can put more than 15 per cent of its net assets in deposits of all scheduled commercial banks put together.This, however, may be increased to 20%, provided the trustees give prior approval.
5. Banks with a pan-India branch network are leveraging their distribution strength and wrangling out hefty premiums from the second-rung insurance multinationals which are eager to break into the Indian market.Earlier, it was the Allahabad Bank-led non-life insurance venture, where Japanese insurer Sompo paid a premium Rs 22 per equity share of Rs 10 each for its 26% stake. E&Y had acted as consultant for the Allahabad Bank-led consortium. Allahabad Bank was followed by Bangalore-based Canara Bank, which is understood to have got an one-time payment of around Rs 120 crore from HSBC for its proposed life insurance joint venture.More recently, it was Bank of Baroda, which partnered UK Insurer Legal & General for life insurance. Although, the figures are not public, the market speculation has it that BoB has got around Rs 220 crore for partnering L&G.With other PSU banks setting the trend, it is now the turn of Bank of India and Union Bank of India to seek a premium. Dai Ichi Mutual Life Insurance of Japan is likely to pay a premium per equity share for its 26% stake in the proposed life insurance JV with Bank of India (BoI) and Union Bank of India.
6. A weak dollar may not be a good news for the central bank. For the RBI, which holds a bulk of its foreign currency assets in US dollars, a weak dollar or a strong rupee also poses an additional challenge in treasury management since the returns are not attractive in a depreciating currency.With the rupee making one of its fastest gains against the dollar, the returns on reserves could come under pressure, if the central bank continues with its current mix of currency reserves which is known to be very dollar-centric. A senior treasury official with a private sector bank said, “The trend in the currency markets indicates that the dollar is no longer a preferred currency, and it is right time to sell dollars and move to more stronger currencies.”
7. Dena Gujarat Gramin Bank (DGGB) has managed to bring down its present gross non performing assets (NPAs) by 1.40 % compared to previous year through an enhanced focus on debt recovery.
