1. Several indicators currently point to the boom in the Indian economy. Both aggregate GDP growth rates and investment rates have been increasing; the foreign exchange reserves keep on increasing, to almost embarrassing levels; and despite this, the exchange rate has been appreciating, largely because of capital inflows. Over the year ending May 4, 2007, foreign exchange reserves rose by close to $42 billion, to touch $204 billion. Two-thirds of this 26 per cent increase in reserves occurred over the first four months of this year. This galloping rise in reserve levels reflects the effort being made the Reserve Bank of India to mop up the large inflow of foreign exchange into the country. Indeed, by filling the gap between the demand for foreign exchange and its availability within the country through its own market intervention, the central bank has in the past ensured a degree of stability of the rupee.
2. Villagers in remote areas will soon have the convenience of `anytime money' that their counterparts in cities enjoy. They will have biometric-based smart cards that would allow them to go to their nearest mandal headquarter and withdraw money they receive under various social security schemes. These ATMs, or bank outposts, would be manned by `business correspondents' appointed by the banks. The Andhra Pradesh Government, with assistances from RBI and several banks, is implementing a pilot project in three mandals in Warangal district.
3. TCS has consolidated its products services business into a new business unit called TCS Financial Solutions, which will function as a dedicated product company within TCS. TCS Financial Solutions will have a separate management team with Mr N.G. Subramaniam, Vice-President and Head (Banking Practice), heading it as President. The products offered from TCS Financial Solutions will be positioned under an umbrella brand called TCS BaNCS.
4. LIC 's South Central Zone, Hyderabad, has topped all divisions of the corporation in the generation of new business premium during the fiscal year 2006-07. "The South Central Zone had collected Rs 5,968 crs of new business premium under 67.61 lakh of policies and occupied first position in the country. The new business premium had more than doubled during the last fiscal compared to Rs 2,345.9 crs in 2005-06.
5. Standard Chartered Bank is in negotiations with Securities Trading Corporation of India (STCI) to buy an initial 49 per cent stake in the investment and broking firm UTI Securities for an undisclosed amount. STCI is the holding company of UTI Securities. Through the deal, Standard Chartered will enter the retail stock broking in Asia for the first time in more than a decade. UTI Securities offers institutional broking, retail broking and online broking.
6. Trading in bad loans will get more difficult, with the Reserve Bank of India (RBI) making it mandatory for asset reconstruction companies (ARCs) to get all security receipts (SRs) rated by rating agencies for calculating the net asset value (NAV). In India, a market for bad loans was created after RBI allowed ARCs to be set up in the private sector to acquire non-performing assets (NPAs) from lenders. Normally, after buying bad loans, ARCs either restructure and rehabilitate them or liquidate the loans within a definite time frame. Companies gave lenders an opportunity to get rid of these loans that had gone into default by selling them at a discount to ARCs.
7. A clutch of financial institutions from India and overseas have invested Rs 80 crs in Financial Information Network and Operations (FINO), an IT company promoted by ICICI Bank to make financial services more inclusive. The investors include state-owned players such as the LIC, Union Bank, Corporation Bank and Indian Bank and private entities like ICICI Lombard and the IFMR Trust. Global investors include the International Finance Corporation (IFC), Legatum Finance and Intel Capital, the strategic investment arm of Intel Corporation. ICICI Bank continues to hold its initial promoter stake of 20%, while another 10% is held by ICICI Lombard and IFMR Trust. The three public sector players together hold 30% stake in the company, while all global entities, jointly hold a 40% stake in FINO.
2. Villagers in remote areas will soon have the convenience of `anytime money' that their counterparts in cities enjoy. They will have biometric-based smart cards that would allow them to go to their nearest mandal headquarter and withdraw money they receive under various social security schemes. These ATMs, or bank outposts, would be manned by `business correspondents' appointed by the banks. The Andhra Pradesh Government, with assistances from RBI and several banks, is implementing a pilot project in three mandals in Warangal district.
3. TCS has consolidated its products services business into a new business unit called TCS Financial Solutions, which will function as a dedicated product company within TCS. TCS Financial Solutions will have a separate management team with Mr N.G. Subramaniam, Vice-President and Head (Banking Practice), heading it as President. The products offered from TCS Financial Solutions will be positioned under an umbrella brand called TCS BaNCS.
4. LIC 's South Central Zone, Hyderabad, has topped all divisions of the corporation in the generation of new business premium during the fiscal year 2006-07. "The South Central Zone had collected Rs 5,968 crs of new business premium under 67.61 lakh of policies and occupied first position in the country. The new business premium had more than doubled during the last fiscal compared to Rs 2,345.9 crs in 2005-06.
5. Standard Chartered Bank is in negotiations with Securities Trading Corporation of India (STCI) to buy an initial 49 per cent stake in the investment and broking firm UTI Securities for an undisclosed amount. STCI is the holding company of UTI Securities. Through the deal, Standard Chartered will enter the retail stock broking in Asia for the first time in more than a decade. UTI Securities offers institutional broking, retail broking and online broking.
6. Trading in bad loans will get more difficult, with the Reserve Bank of India (RBI) making it mandatory for asset reconstruction companies (ARCs) to get all security receipts (SRs) rated by rating agencies for calculating the net asset value (NAV). In India, a market for bad loans was created after RBI allowed ARCs to be set up in the private sector to acquire non-performing assets (NPAs) from lenders. Normally, after buying bad loans, ARCs either restructure and rehabilitate them or liquidate the loans within a definite time frame. Companies gave lenders an opportunity to get rid of these loans that had gone into default by selling them at a discount to ARCs.
7. A clutch of financial institutions from India and overseas have invested Rs 80 crs in Financial Information Network and Operations (FINO), an IT company promoted by ICICI Bank to make financial services more inclusive. The investors include state-owned players such as the LIC, Union Bank, Corporation Bank and Indian Bank and private entities like ICICI Lombard and the IFMR Trust. Global investors include the International Finance Corporation (IFC), Legatum Finance and Intel Capital, the strategic investment arm of Intel Corporation. ICICI Bank continues to hold its initial promoter stake of 20%, while another 10% is held by ICICI Lombard and IFMR Trust. The three public sector players together hold 30% stake in the company, while all global entities, jointly hold a 40% stake in FINO.
