1. RBI pursuing a growth-oriented policy with a careful watch on inflation, has been moderating liquidity throughout 2006-07 and 2007-08 by raising the repo rate and the Cash Reserve Ratio. By raising these key rates the central bank expects loans, especially for real-estate and housing, to become costly, and thus control money supply. The RBI has also been tightening the flow of bank credit to the commercial sector. Though the central bank has been resorting to the Market Stabilisation Scheme to neutralise money expansion due to foreign inflows, this is the first time it has moved boldly to increase the outflow of forex reserves. Thus, to reduce money supply as well as take yet another step towards fuller Capital Account Convertibility the RBI has taken the following steps. It has: Liberalised overseas investment norms (for joint ventures) by Indian investors, increased the limit of portfolio investment from 25 per cent to 35 per cent of net worth of companies; upped mutual funds' overseas investment limit to $4 million from $3 million, raised the pre-repayment limit of external borrowings to $400 million from $300 million, and allowed individual investors to remit up to $1,00,000 for the financial year for any current or capital account transaction or a combination of both. The RBI has also provided hedging facilities in terms of price risk or domestic purchase and sale. In many cases, authorised dealers have been permitted to allow Indian companies remit more foreign exchange for donations, consultancy services, for pre-incorporation expenses and for the purpose of oil exploration. The increased outflow should act as a counter to the expansion of reserve money by the RBI and finally on the growth of overall money stocks (M3). The RBI has also observed that "Growth in Reserve Money during 2006-07 was driven largely by the expansion in the central Reserve Bank's net foreign assets."
2. The net profit of South Malabar Gramin Bank has gone up by 26% to Rs 21.54 crs (Rs 17.03 crs) for 2006-07. The total business grew by 20% to Rs 3,144 crs.It recorded a credit deposit ratio of 123% with 90% of the loans going to the priority and weaker sections. The total deposits grew to Rs 1,408 crs while advances touched Rs 1,736 crs. The bank extended Rs 419.25 crs through 1,46,304 kisan credit cards. As per the Government policy of doubling credit flow to the agricultural sector in three years, the bank increased its credit disbursement to Rs 1,208 crs (Rs 960 crs), against a target of Rs 1,055 crs.
3. In a bid to place co-operative banks (urban and rural) at the lip of modern knowhow, I-Pay Clearing Services Ltd, a software solutions provider, will soon offer "e-passbooks" to them. The "e-passbook" will contain details of a customer's savings account. A customer will be able to check the last 10 transactions on a self-service terminal or kiosk, do internal account to account money transfer, request for a cheque book and get other details of recurring accounts and loans.
4. Bank of India has signed a memorandum of understanding with National Bulk Handling Corporation Ltd (NBHC), a group company of Multi Commodity Exchange (MCX), for lending against warehouse receipts. Of its Rs 3,550-crs crop-financing corpus, the bank has set aside Rs 2,000 crs for warehouse lending. NBHC has arranged over Rs 1,300 crs in the last 3-4 years.
5. ICICI Bank has stepped up its support to realty market in Mysore by launching a 48-hour home loan-processing scheme. The fast track scheme was introduced last week. Announcing its launch at the ‘My Realty-2007’, bank’s emerging market mortgage finance group national head Satish Kulkarni said, “If we do not do it (process within 48 hours), we will refund the processing fee.”
6. Andhra Bank launched ATMobile, its new mobile biometric-access ATM initiative, in Hyderabad. The bank flagged off two mobile biometric-access ATMs here, one each for the Twin Cities of Hyderabad and Secunderabad, which would stop at locations scheduled by the Reserve Bank of India (RBI). Targeted at reaching out to a large section of semi-literate and illiterate customers, the mobile biometric ATMs would identify the customer based on his fingerprints.
7. The government said it aims to slow down the flow of foreign debt into the real estate sector through its recent curbs on external commercial borrowings (ECBs). The finance ministry on Friday barred those setting up integrated townships from raising ECBs and made it difficult for small players to raise such borrowings by lowering the ceiling on the interest rates to be paid on such debts.
8. Syndicate Bank is planning to hit the capital market with follow-on public offer of eight crs equity shares (face value Rs 10 each). It will use proceeds of the issue to shore up the capital for credit growth and comply with Basel II norms by March 2008. SBI, ICICI Bank (Rs 20,000 crs), HDFC Bank (Rs 4,200 crs) and Federal Bank have already announced plans to raise capital from the equity offering.
9. Standard Chartered Bank’s Indian operations reported 51% rise in net profit in 2006-07 to Rs 1,364 crs from Rs 904.8 crs a year earlier on higher interest and fee income. The share of Indian operations in the bank’s global profits increased to 12.6% from 8.8% in 2005. It has invested Rs 1,360 crs in the Indian operations in 2006-07 against Rs 1,300 crs a year earlier. This investment is by way of profit retention as well as fresh infusion.
10. Corporation Bank has gone ahead and launched its credit card business following delays in its proposed joint credit card foray with alliance partners, Oriental Bank of Commerce and Indian Bank. The three public sector banks had signed a MoU for alliance in November. However, with the OIC joint credit card venture expected to take at least another nine months to get off the ground, the Corporation Bank has decided not to delay its credit card foray any longer. It has tied up with Visa International for its credit card business.
11. With the objective of imparting training on agriculture and allied activities to farmers, Punjab National Bank (PNB), in association with State Institute of Rural Development (SIRD), recently opened a Farmer Training Centre (FTC) in North East. Located at Kahikuchi outside Guwahati, it was the first training centre in the region.
12. To achieve financial inclusion in rural India, SBI has taken up a plan to reach 100,000 unbanked villages in the country within the next two years. It aims is to open at least one bank account for each family in these villages. SBI has relaxed the terms and conditions for opening a bank account under this programme.
2. The net profit of South Malabar Gramin Bank has gone up by 26% to Rs 21.54 crs (Rs 17.03 crs) for 2006-07. The total business grew by 20% to Rs 3,144 crs.It recorded a credit deposit ratio of 123% with 90% of the loans going to the priority and weaker sections. The total deposits grew to Rs 1,408 crs while advances touched Rs 1,736 crs. The bank extended Rs 419.25 crs through 1,46,304 kisan credit cards. As per the Government policy of doubling credit flow to the agricultural sector in three years, the bank increased its credit disbursement to Rs 1,208 crs (Rs 960 crs), against a target of Rs 1,055 crs.
3. In a bid to place co-operative banks (urban and rural) at the lip of modern knowhow, I-Pay Clearing Services Ltd, a software solutions provider, will soon offer "e-passbooks" to them. The "e-passbook" will contain details of a customer's savings account. A customer will be able to check the last 10 transactions on a self-service terminal or kiosk, do internal account to account money transfer, request for a cheque book and get other details of recurring accounts and loans.
4. Bank of India has signed a memorandum of understanding with National Bulk Handling Corporation Ltd (NBHC), a group company of Multi Commodity Exchange (MCX), for lending against warehouse receipts. Of its Rs 3,550-crs crop-financing corpus, the bank has set aside Rs 2,000 crs for warehouse lending. NBHC has arranged over Rs 1,300 crs in the last 3-4 years.
5. ICICI Bank has stepped up its support to realty market in Mysore by launching a 48-hour home loan-processing scheme. The fast track scheme was introduced last week. Announcing its launch at the ‘My Realty-2007’, bank’s emerging market mortgage finance group national head Satish Kulkarni said, “If we do not do it (process within 48 hours), we will refund the processing fee.”
6. Andhra Bank launched ATMobile, its new mobile biometric-access ATM initiative, in Hyderabad. The bank flagged off two mobile biometric-access ATMs here, one each for the Twin Cities of Hyderabad and Secunderabad, which would stop at locations scheduled by the Reserve Bank of India (RBI). Targeted at reaching out to a large section of semi-literate and illiterate customers, the mobile biometric ATMs would identify the customer based on his fingerprints.
7. The government said it aims to slow down the flow of foreign debt into the real estate sector through its recent curbs on external commercial borrowings (ECBs). The finance ministry on Friday barred those setting up integrated townships from raising ECBs and made it difficult for small players to raise such borrowings by lowering the ceiling on the interest rates to be paid on such debts.
8. Syndicate Bank is planning to hit the capital market with follow-on public offer of eight crs equity shares (face value Rs 10 each). It will use proceeds of the issue to shore up the capital for credit growth and comply with Basel II norms by March 2008. SBI, ICICI Bank (Rs 20,000 crs), HDFC Bank (Rs 4,200 crs) and Federal Bank have already announced plans to raise capital from the equity offering.
9. Standard Chartered Bank’s Indian operations reported 51% rise in net profit in 2006-07 to Rs 1,364 crs from Rs 904.8 crs a year earlier on higher interest and fee income. The share of Indian operations in the bank’s global profits increased to 12.6% from 8.8% in 2005. It has invested Rs 1,360 crs in the Indian operations in 2006-07 against Rs 1,300 crs a year earlier. This investment is by way of profit retention as well as fresh infusion.
10. Corporation Bank has gone ahead and launched its credit card business following delays in its proposed joint credit card foray with alliance partners, Oriental Bank of Commerce and Indian Bank. The three public sector banks had signed a MoU for alliance in November. However, with the OIC joint credit card venture expected to take at least another nine months to get off the ground, the Corporation Bank has decided not to delay its credit card foray any longer. It has tied up with Visa International for its credit card business.
11. With the objective of imparting training on agriculture and allied activities to farmers, Punjab National Bank (PNB), in association with State Institute of Rural Development (SIRD), recently opened a Farmer Training Centre (FTC) in North East. Located at Kahikuchi outside Guwahati, it was the first training centre in the region.
12. To achieve financial inclusion in rural India, SBI has taken up a plan to reach 100,000 unbanked villages in the country within the next two years. It aims is to open at least one bank account for each family in these villages. SBI has relaxed the terms and conditions for opening a bank account under this programme.
