1. Several banks including HSBC and
2. Banking industry will continue to be a public utility service for another six months from Tuesday, which among other things mean that employees cannot go on strike without giving notice six weeks in advance.According to a notification issued by the Ministry of Labour and Employment, the step has been taken in public interest. The notice is required so that conciliatory proceedings could be started. During the conciliatory proceedings and seven days after their completion, the employees cannot go on strike, the notification said.
3. Small-scale industries registered with the National Small Industries Corporation (NSIC) are eligible for subsidy on the amount they spend on acquiring credit rating. The NSIC has entered into a memorandum of understanding with the Union Government in this regard.
4. RBI has allowed banks to obtain from the clients who operate their safe deposit lockers with the bank, a fixed deposit, which would cover three years rent and the charges for breaking open the locker in the case of an eventuality, at the time of allotment. However, banks should not insist on such fixed deposit from the existing locker-hirers. The Committee on Procedures and Performance Audit of Public Services (CPPAPS) of the RBI observed that linking the lockers facility with placement of fixed or any other deposit beyond what is specifically permitted is a restrictive practice and should be prohibited forthwith.
5. While the four metros and big cities like
Scheduled commercial banks collected over Rs 12,95,000 crs from tier-II and tier-III centres alone in the third quarter of 2006-07 out of the all
6. Export Import Bank of India (EXIM) has extended two lines of credit worth USD 40 million to
7. National Bank for Agriculture and Rural Development plans to raise about Rs. 23,000 crs, almost double that raised last year, to fund the farm and non-farm sectors. Market borrowings of Nabard in 2006-07 were Rs 10,899 crs around 8.69% as against about Rs 8,194 crs at about 5.6%in 2005-06. The Nabard's balance sheet grew by about 20% to Rs 81,000 crs during 2006-07 against 8-10% annually while the net profit was marginally down on high cost market borrowings.
8. RBI had sent a proposal to the Government for allowing PSBs to undertake buying and selling of stamps/stamp papers as a "permissible activity" under the Banking Regulations Act. It had requested for notification by the Government. The RBI had noted that even though there are no statutory provisions prohibiting PSBs from selling or buying stamp papers, there are no specific provisions permitting such an activity by these banks.
9. Akshaya Trithi, falling this year on April 20th, is considered an auspicious day for Hindus. It certainly will be one for banks. HDFC Bank expects to see a huge jump in sales of gold coins being marketed by the bank. HDFC Bank, which sold 200 kg of gold last year on the Akshaya Trithi day, expects to sell 400 kg this year. One factor that will help HDFC Bank double its sales volume is the expansion of branch network, which has grown by 30% compared with last year.
10. IDBI has raised its Retail Reference Rate (RRR), the benchmark for pricing its floating home loans, by 75 basis points to 11.25 per cent effective April 10. For all the existing home loan customers, the floating interest rates have moved up by 75 bps to between 11-11.25% pa depending on the category of the borrowers. The fixed rate of interest on 3-year home loans will rule between 13.5% and 14 % pa while that for 5-year loans will range between 13.75% and 14.25% pa.
11. SBI Life Insurance proposes to utilise more of the banking network other than SBI 's own as part of its strategy to double the size of business. Only 40% of the total network of 14,000 branches of SBI and its associate banks has been used so far. In 2006-07, the co-operative banks gave a paltry business of Rs 20 crs or so, which is likely to go up to Rs 100 crs in the current fiscal. The arrangements with the RRBs, however, are yet to firm up as these banks are going through the process of consolidation.
12. Leading public and private sector banks would have to increase their Tier-I capital by about Rs 51,255 crs within March 31, 2009, including raising Rs 45,521 crs from the capital market to meet the Basel-II requirements on minimum capital adequacy of 9%. RBI has conveyed this to the Government after conducting a simulation study of 50 public and private sector banks. The banks include the entire lot of 19 nationalised banks, SBI and its 7 associate banks, 7 new private sector banks and 16 old private sector banks. The issue of the enhanced capital requirement of the banking system, especially the State-owned banks, would figure prominently in the meeting of the CEOs of PSBs with the Union Finance Minister, Mr P. Chidambaram, on 19.04.2007.
13. RBI has rejected the request of public sector banks to phase out the increased provisioning requirement on standard assets with respect to exposure to real estate, capital market, NBFCs and personal loans. It had, in the third quarter review of the Annual Credit and Monetary Policy, raised the provisioning requirement from 1% to 2% for standard assets in these sectors. Indications are that this issue may come up for discussion during the Finance Minister, Mr P. Chidambaram's meeting with chief executives of PSBs on 19.04.2007.
14. RBI has invited applications for registration from companies interested in entering the business of credit information. The completed applications should reach the RBI by close of business on July 31.
15. Punjab National Bank has launched the PNB Floating Rate Fixed Deposit Scheme, where the interest payable on the fixed deposit would automatically change with the changes in the fixed-deposit card rates made available by the bank from time to time. A PNB release also said the scheme would be valid in Core Banking Solution branches only.
16. All branches of Sangli Bank will function as branches of ICICI Bank from April 19. RBI has sanctioned the scheme of amalgamation of Sangli Bank with ICICI Bank. Shareholders of ICICI Bank had approved the merger in January this year. With the merger, ICICI Bank gets to add 192 branches to its existing network of more than 700 branches.
