1. Interest rate hikes notwithstanding, public sector banks are supporting farm sector with credit below the current benchmark prime lending rates (BPLR).
Bankers said that the credit support for the farm sector was not just for crop loans, but also for non-crop loans, including consumption credits and rural housing. Currently, crop advances are priced at 7%.
Bankers said that the credit support for the farm sector was not just for crop loans, but also for non-crop loans, including consumption credits and rural housing. Currently, crop advances are priced at 7%.
2. International credit enhancement agencies may get to operate in India, with the Finance Ministry urging the Reserve Bank of India (RBI) to frame appropriate regulations for the entry of such companies. Credit enhancement agencies are basically institutions whose backing enhances the credit worthiness of debt issuances of municipal corporations and other organisations and helps them raise funds at better rates.
3. The country’s forex reserves increased by $1.530 billion to $230.377 billion for the week ended September 7 on account of reasonably good inflows and revaluation of currency assets, said a dealer with a private bank. “The central bank has also been constantly intervening in the forex market to cap the appreciation of rupee,” said the dealer.The reserves had fallen by $2 million to touch $228.847 billion for the week ended August 31, according to the weekly statistics from the Reserve Bank of India.
4. LIC has set itself a target of 31 per cent growth in new business premium for the current fiscal.
5. Greater attention to price stability and pre-emptive measures taken in the economic policy has helped contain inflation rates and inflation expectation.
Maintenance of price stability and financial stability is essential for healthy corporate sector performance, said Dr Rakesh Mohan, Deputy Governor, Reserve Bank of India.
Maintenance of price stability and financial stability is essential for healthy corporate sector performance, said Dr Rakesh Mohan, Deputy Governor, Reserve Bank of India.
6. The public sector Bank of India is receiving encouraging response from the trading community following the introduction of various unique schemes, which are designed to provide hassle free financial assistance for businessmen in Kerala State.
7. Indian Overseas Bank is looking for a tie-up with another bank to expand its business and reach. Without naming the likely partner, Mr S. A. Bhat, Chairman and Managing Director, IOB, said, “Talks are at a very formative stage. We will tie up with a bank that will complement us in terms of business and geographies".
8.The intermediate holding company model being proposed by ICICI Bank and State Bank of India will insulate banks from the risks of raising capital for non-banking business, as the holding company would be able to raise funds independent of the bank. It will also limit exposure of the parent bank and its investors to the non-banking business. This is the view expressed by the Indian Banks’ Association in its response to the discussion paper on the holding companies released by the Reserve Bank of India.
9. India is largely insulated from the subprime crisis and will continue to see mergers and acquisitions, said investment bankers, speaking at a banking seminar. “Indian corporates are largely under-leveraged and we will not see any drying up in the financing of large Indian contracts. Pricing of these deals may, however, be higher than what has been in the last few years,” said Mr Tarun Kataria, Head, Investment Banking & Markets, HSBC, speaking at a FICCI-IBA seminar.He added that the uncertainty due to a global credit slow down could continue for a while. Deals that are stuck will get repriced and restructured.
10. Trade finance opportunities in India could offer revenues in excess of over $2 billion in the next five years, against the current $1.2 billion, said Mr J. Chandrasekaran, Chief General Manager, Small and Medium Enterprises, State Bank of India.
11. HDFC Bank expects its overall advances to grow by over 30 per cent this fiscal, much higher than the anticipated credit growth of about 20-25 per cent for the banking industry in the period.An important driver of this growth is likely to be retail advances, which are expected to grow by 30-40 per cent this fiscal, according to Mr Pralay Mondal, Country Head, Retail Assets and Credit Cards.
