1. As independent India turns 60, banks are poised for a leap in to the future. Significantly, the international rating agency Moody’s have given the banking system a ‘stable’ rating. Commercial banking in India has a 200-year history.
2. The forex kitty rose by $3.992 billion to $229.342 billion for the week ended August 3, backed by strong FII inflows and continuous intervention by the Reserve Bank of India in the forex market. “The strong FII inflows and constant RBI intervention to cap the appreciation of rupee has attributed to the increase in reserves.”
3. 10 Public sector banks have been losing market share to new private sector banks and foreign banks. Their share in terms of total assets has come down from 80.2 per cent in 1997-98 to 70.3 per cent in 2006-07. In terms of total business, it has come down from 80.9 per cent to 73 per cent.How should the PSBs compete in this scenario ? By using their strengths—large branch network and manpower—to tap the potential of rural markets, according to Ms Usha Thorat, Deputy Governor, Reserve Bank of India.
4. Corporation Bank is planning to use the ‘branchless banking’ model to bring more villages under financial inclusion in un-banked areas. The bank, which has implemented this model in two villages in Dakshina Kannada district on a pilot basis, is planning to implement this operating model in 200 villages in the country in the next 12 months.
5. Switzerland wants India to further liberalise its markets for banking services. A case is also being made for the country to look at reducing taxes on Swiss watches.
“The market (for banking) is kind of protected by the Government. You should liberalise and open it up,” Ms Doris Leuthard, Federal Councillor and Minister of Economic Affairs, told Business Line.“We face this problem in many developing countries. It would also be in India’s interest to allow competitors to come here.”She said that the need to further open up the banking sector would be discussed in her interaction with the Finance Minister, Mr P. Chidambaram.Another issue that would be raised before the Government is the high level of taxes on Swiss watches, she added.The Swiss Minister said that high taxes (about 48 per cent of the price) come in the way of sales of Swiss watches in India.
“The market (for banking) is kind of protected by the Government. You should liberalise and open it up,” Ms Doris Leuthard, Federal Councillor and Minister of Economic Affairs, told Business Line.“We face this problem in many developing countries. It would also be in India’s interest to allow competitors to come here.”She said that the need to further open up the banking sector would be discussed in her interaction with the Finance Minister, Mr P. Chidambaram.Another issue that would be raised before the Government is the high level of taxes on Swiss watches, she added.The Swiss Minister said that high taxes (about 48 per cent of the price) come in the way of sales of Swiss watches in India.
6. The phenomenon of migration and remittances, without doubt, have been among the greatest integrators and levellers levelers of the 20th century. To a certain extent, it has reduced inequity, ameliorated poverty, increased the demand for education and improved the quality of life among several developing countries. To the ageing population of the developed world, it has brought a young-blooded workforce, increased efficiency of labour markets and helped to bridge cost differentials between the First and Third World countries.
7. The Ministry of Railways has allowed nine more banks to install ATMs at railway stations. The nine banks are: Bank of Rajasthan, Bank of India, Indian Overseas Bank, ICICI Bank, UTI Bank, UCO Bank, HDFC Bank, Syndicate Bank and J&K Bank. The banks will set up ATMs at 440 locations, taking the total ATM locations to 1,833 across the country, said a press release. Out of these, more than 1,200 locations will have e-ticketing facilities through Internet kiosks installed alongside the ATMs.
8. Recapitalisation bonds worth Rs 3,150 crore, part of the stock of bonds that Indian Bank received from the Government of India between 1998 and 2003, have been swapped for other government securities that qualify as ‘SLR securities’.
9. Deutsche Bank wants to ramp up its distribution for credit cards to 25 cities and is in talks with prospective programme partners with strong distribution network for this purpose.The bank’s credit card business in India is little over a year old and already has issued over 2,50,000 cards. Currently, Deutsche Bank operates out of seven cities including Kolhapur and Aurangabad, where branches were opened recently.10. SBI Card, a joint venture between State Bank of India and GE Money, on Thursday announced its foray into the premium credit card space through the launch of the ‘SBI Platinum Card’, in association with Visa International.
The SBI Platinum card would allow a customer certain international and domestic travel benefits, including Concierge services, waiver of the 3.5 per cent surcharge on spends made abroad in foreign currencies, privileges on restaurants and spas and travel insurance. SBI Card expects at least 1,00,000 SBI Platinum Cards to be issued this fiscal
The SBI Platinum card would allow a customer certain international and domestic travel benefits, including Concierge services, waiver of the 3.5 per cent surcharge on spends made abroad in foreign currencies, privileges on restaurants and spas and travel insurance. SBI Card expects at least 1,00,000 SBI Platinum Cards to be issued this fiscal
10. The curbs on external commercial borrowings (ECBs) announced by the Finance Ministry have wide repercussions on the system. Who is going to be affected? Who would benefit? Will domestic interest rates move up?Mr Moses Harding, Executive Vice-President and Head, Wholesale Banking Group, IndusInd Bank, responds to a couple of questions from Business Line on the impact of these moves.
