1. RBI has sprung a surprise by hiking up the capital charge for credit risk on loans of banks. This has been done through a minor provision in the guideline for new capital adequacy framework (commonly known as Basel II norms) issued recently by the RBI. Generally, Basel II brought in additional capital requirements for "Operational Risk" and the norms were perceived to be neutral or more beneficial to banks in regard to credit risk. But in India, banks have been hit hard in regard to credit risk on un-rated borrowers.
2. State Bank of Travancore has launched a new loan scheme for pensioners from military and related services. The scheme titled `Jai Jawan pension loan', will cover pensioners who retired at an early age from armed forces, paramilitary forces, coast guards, Rashtriya Rifles, CRPF, BSF, ITBP, etc. The scheme provides for loan of up to Rs 2 lakh or 48 times the monthly pension, whichever is lower. A relaxed repayment programme is one of the features of the scheme, according to a statement from SBT. Against 60 months repayment period for normal pension loan, the `Jai Jawan' loan has a repayment period of 84 months.
3. The Hyderabad-based Institute of Chartered Financial Analysts of India (ICFAI) has derived an advantage in its legal battle against CFA Institute, USA pertaining to the use of its Chartered Financial Analyst (CFA) charter in the US and Canada. A District Court of the Eastern District of Virginia recently vacated an injunction obtained by the CFA Institute in a default judgment in October 1998 prohibiting the use of ICFAI's CFA charter in the US and Canada. In view of the vacation of injunction, over 4,000 candidates who obtained CFA charter from ICFAI are now eligible to apply for jobs in the US and Canada.
4. SBI-MUL Online Application, the online facility for processing of car loan applications on real time basis, has been launched. The new initiative envisages online connectivity between the Retail Assets Central Processing Centre of State Bank of India and major dealers of Maruti Udyog Ltd for instant transmission of car loan application details from the dealers to the processing centre. With this facility in place, it should be possible to complete the entire process of sanction and disbursement of loans within a maximum period of 48 hours.
5. Vijaya Bank has signed a MOU with Crisil. The MoU was for credit rating of micro, small and medium borrowers of the bank. Rated borrowers would be able to negotiate better credit terms with the bank. Vijaya Bank said that while ratings were not mandatory, it would encourage them in view of migration to the new capital adequacy norms of Basel-II.
2. State Bank of Travancore has launched a new loan scheme for pensioners from military and related services. The scheme titled `Jai Jawan pension loan', will cover pensioners who retired at an early age from armed forces, paramilitary forces, coast guards, Rashtriya Rifles, CRPF, BSF, ITBP, etc. The scheme provides for loan of up to Rs 2 lakh or 48 times the monthly pension, whichever is lower. A relaxed repayment programme is one of the features of the scheme, according to a statement from SBT. Against 60 months repayment period for normal pension loan, the `Jai Jawan' loan has a repayment period of 84 months.
3. The Hyderabad-based Institute of Chartered Financial Analysts of India (ICFAI) has derived an advantage in its legal battle against CFA Institute, USA pertaining to the use of its Chartered Financial Analyst (CFA) charter in the US and Canada. A District Court of the Eastern District of Virginia recently vacated an injunction obtained by the CFA Institute in a default judgment in October 1998 prohibiting the use of ICFAI's CFA charter in the US and Canada. In view of the vacation of injunction, over 4,000 candidates who obtained CFA charter from ICFAI are now eligible to apply for jobs in the US and Canada.
4. SBI-MUL Online Application, the online facility for processing of car loan applications on real time basis, has been launched. The new initiative envisages online connectivity between the Retail Assets Central Processing Centre of State Bank of India and major dealers of Maruti Udyog Ltd for instant transmission of car loan application details from the dealers to the processing centre. With this facility in place, it should be possible to complete the entire process of sanction and disbursement of loans within a maximum period of 48 hours.
5. Vijaya Bank has signed a MOU with Crisil. The MoU was for credit rating of micro, small and medium borrowers of the bank. Rated borrowers would be able to negotiate better credit terms with the bank. Vijaya Bank said that while ratings were not mandatory, it would encourage them in view of migration to the new capital adequacy norms of Basel-II.
