1. The RBI’s Annual Report admits of “some evidence of cyclical elements in the growth process” albeit significant structural changes in the economy. The accent is on the continuing need for vigil on price stability, including financial stability.
2. Housing Development Finance Corporation was at an all-time high of Rs 2,140 on Friday on the BSE. Despite the sub-prime originating out of housing finance companies in the global markets, domestic housing finance companies such as HDFC and LIC Housing Finance are faring well.Analysts feel that the banking finance sector is comparatively better off than others, one of the reasons being the low mortgage penetration to GDP ratio i.e., the amount of mortgage banks have in turn for their lending for housing to the GDP. It is as low as 7.1 per cent, whereas in the US and the UK it is 54 per cent and 57 per cent, respectively, according to an analyst.
3. The Mumbai city based Financial Technologies India Ltd has partnered with the University of Mauritius Trust (UoM) to set up a ‘Centre for Organized Markets’ in Mauritius, an initiative aimed at create a sizable talent pool for financial markets. The UoM signed an MoU with MCX Centre of Academia, a part of the Financial Technologies group, on August 27. The collaboration is expected to benefit university staff in terms of staff exchange and training, and also professionals and students who wish to work in the financial services at large.
4. The Reserve Bank of India would like foreign banks to get a flavour of semi-urban India and the rural hinterland. Going by the statistics provided in the RBI’s annual report, it appears that foreign banks are being gently nudged away from metros, when they apply for permission to open a new branch.The branches of foreign banks that have been approved between July 2006 and June 2007 are mostly in smaller towns and tier-2 and tier-3 cities. Of the 13 branches for which permission was given, only one branch belonging to Shinhan Bank has been allowed in New Delhi.
5. Centurion Bank of Punjab (CBOP), which had recently merged with the Kerala-based Lord Krishna Bank, has chalked out ambitious plans for the State with a focus on NRIs. The NRI population from the State is the immediate priority.
6. Corporation Bank has offloaded its stake in the National Stock Exchange by 0.27 per cent. Fidelity Trustee Corporation and HDFC Ltd have together picked up the stake sold by the bank for Rs 35 crore on September 7.
7. Banks in India are becoming cautious about lending to weak borrowers, says India Knowledge @ Wharton, an online resource centre for information on India-related issues at the University of Pennsylvania, quoting industry experts.
The online resource centre quoted data on provision for non-performing assets made by banks in the first quarter of fiscal 2007-08 which it says are higher than similar provisions made the same time last year and cautions that it could go up further. It referred to State Bank of India (SBI)’s performance which saw gross NPAs rise to Rs 10,760 crore as on June 2007 from Rs 9,720 crore in June 2006, a level that it says is the highest in the last 14 quarters. The bank had also substantially hiked (161%) its provision for such NPAs at Rs 538 crore in June 2007.
The online resource centre quoted data on provision for non-performing assets made by banks in the first quarter of fiscal 2007-08 which it says are higher than similar provisions made the same time last year and cautions that it could go up further. It referred to State Bank of India (SBI)’s performance which saw gross NPAs rise to Rs 10,760 crore as on June 2007 from Rs 9,720 crore in June 2006, a level that it says is the highest in the last 14 quarters. The bank had also substantially hiked (161%) its provision for such NPAs at Rs 538 crore in June 2007.
8. While employees and officers of banks under the United Forum of Bank Unions (UFBU) banner have decided to observe an all India strike on September 12, the Central Bank Employees Union has given a strike call on September 13.
9. The Indian Institute of Banking and Finance (IIBF) has started a diploma course in Banking and Finance (DBF) for graduates of any discipline or students in the final year of graduation.The diploma was being offered in association with Manipal Universal Learning. The course, equivalent to Junior Associate of Indian Institute of Bankers (JAIIB), is aimed at fulfilling the demand for qualified manpower for the banking sector, which is expected to grow in the coming years.
10. Andhra Bank will be hiring about 2,000 personnel in different categories over the next three years to strike a balance between retirements and new business needs.
