1. State Bank of India wants to use its vast branch network to get a little more of the fee income from credit card purchases. It plans to acquire one million Point of Sale (POS) terminals,machines used to swipe credit cards ,over the next three years and put them up at shops. “It will act as a source of income for the bank. However, the customer would not be charged for the same.”
2. IFCI Ltd expects to complete the process of induction of a strategic investor with a 26 per cent stake in the company by end-January next year.
3. The country’s forex reserves rose $3.307 billion to $225.350 billion in the week ended July 27 on account of intervention by the RBI. The RBI was seen buying dollars vigorously to cap the appreciation of rupee beyond 40.35 levels contributing to the huge reserves.” The home currency thereby weakened by about 15 paise in the week under consideration to close at 40.50/51 on July 27. The reserves had increased by $3.807 billion to $222.043 billion for the week ended July 20, said the RBI’s Weekly Statistical Supplement. The foreign currency assets rose $3.306 billion to $218.096 billion. Foreign currency assets, as expressed in dollars, include the effect of appreciation or depreciation in non-US currencies (euro, sterling and yen) held in reserves.
4. It has been a very profitable first quarter for public sector banks. With almost the entire set of numbers coming in from PSBs, save three, it is clear that they have raked in a lot. Twenty-five public sector banks saw their first quarter profits rise a whopping 47 per cent. The growth numbers of course were ranged across the entire spectrum, and could look a trifle rosier because of the extreme deviations on the scorecard. Even so, the median growth for this segment was 34 per cent.The contribution from the staple diet of interest income was significant while other income (that comprises earnings from commission, exchange brokerage, profit on sale of land or buildings or other assets, etc.) also showed stable growth. Interest income for the group grew 33 per cent while other income rose 22%.
5. To make the Mercedes Benz more affordable to its customers, DaimlerChrysler has tied up with ICICI Bank. ‘Star choice’ is being offered to customers with three options , financing at 9.9% interest rate, low down payment (as low as 5%), and Rs 29,999 as EMI (equated monthly instalment). Offers are valid till September.
6. Banks can now negotiate a Letter of Credit where the negotiation of bills drawn under LC is restricted to a particular bank, and the beneficiary of the LC is not a constituent of that bank.The LC can be negotiated subject to the condition that the proceeds will be remitted to the regular banker of the beneficiary. The guidelines of RBI will come into effect with immediate effect. Banks can also negotiate bills drawn under LCs, on ‘with recourse’ or ’without recourse’ basis, as per their discretion and based on their perception about the credit worthiness of the LC issuing bank.
