1. ICICI Bank, the largest private sector bank in India, will continue with its $1.5 billion overseas loan borrowing despite the recent change in guidelines for external commercial borrowings (ECBs).
2. Triggered by the concern over global liquidity, foreign banks today tapped the term money market aggressively to raise six-month to one-year funds. According to dealers, foreign banks may have been sounded out by their parents or overseas offices to remain liquid so as to avoid a spillover impact of global liquidity problems, which have become a serious concern following defaults in the sub-prime lending markets in the US and the UK. Term money is the market where funds are available from 15-days to a year. One-month term money rates have gone up from 7.05 per cent on Thursday to 7.25 pr cent today and one-year rates moved up from 8.10 per cent to 8.25 per cent.
3. Public sector banks are likely to see an increase in their level of bad loans over the next three years to 4-5.5 per cent from 2.8 per cent at the end of March 2007 on account of higher defaults in their retail and corporate portfolios, according to a report by ratings firm ICRA. Consequently, the banks may have to make 100 basis points higher incremental provisioning over the medium term to maintain their net non-performing assets (NPA) levels reasonably low. The fresh slippage rate is expected to be at around 2-3 per cent of advances, against 1.77 per cent at the end of 2006-07, resulting in the gross NPA level moving up to 4-5.5 per cent by March 2010.
4. A bank run exclusively by children sets an example for a new economic movement. A night shelter set up by the Municipal Corporation of Delhi (MCD) becomes a buzzing hive of commerce at 6 pm every day. The doors of Children’s Development Bank — India’s only bank chain run by children — are open for business. By day, the premises serve as school that also serves mid day meals to children. But as the day comes to close, the child-adults swagger in. These are rag pickers and daily wagers engaged in menial labour — washing utensils at weddings, for instance.
Very professionally, these children deposit their earnings, withdraw money and seek advances. For many, the bank has changed their lives. Sudesh, who came to Delhi five years ago from West Bengal, used to make both ends meet by either washing utensils at parties or rag picking.
Very professionally, these children deposit their earnings, withdraw money and seek advances. For many, the bank has changed their lives. Sudesh, who came to Delhi five years ago from West Bengal, used to make both ends meet by either washing utensils at parties or rag picking.
5. The banking regulator is donning the role of a scriptwriter. Wearing a new hat, the Reserve Bank of India, besides executing its mandatory functions of supervising the banking and financial sector, has taken upon itself the task of educating Indians in the finer points of finance.
With paintbrushes and felt-tipped pens in their hands, RBI officials have published two comic books over the past year — one on the basics of banking and the other, on currency notes. Interestingly, material for dissemination to the public has been drafted in-house, reflecting the creative streaks in the RBI officials. The apex bank’s unusual foray into information dissemination started when it decided to set up a steering committee comprising 15 RBI officials a year ago for looking into its add-on function of financial literacy. The regulatory body, along with supervising the volatile markets and inflationary levels in the country, has also been preparing draft material for educating various sections of the society, in a discreet fashion.
With paintbrushes and felt-tipped pens in their hands, RBI officials have published two comic books over the past year — one on the basics of banking and the other, on currency notes. Interestingly, material for dissemination to the public has been drafted in-house, reflecting the creative streaks in the RBI officials. The apex bank’s unusual foray into information dissemination started when it decided to set up a steering committee comprising 15 RBI officials a year ago for looking into its add-on function of financial literacy. The regulatory body, along with supervising the volatile markets and inflationary levels in the country, has also been preparing draft material for educating various sections of the society, in a discreet fashion.
6. In a bid to improve the operational efficiency and the quality of the management systems of the urban co-operative banks (UCBs) in West Bengal, the Reserve Bank of India from now on, would assess their training and computerisation needs."This would improve the human resource skill and the infrastructure of the Urban Cooperative banks in West Bengal and consequently improve the performance."
