1. Import power plants, facilitate corporate borrowings, reduce dollar liabilities, and don’t squander away foreign exchange (forex) reserves. These are among the suggestions that Mr N. A. Mujumdar makes in a recent book titled ‘Inclusive Growth: Development Perspectives in Indian Economy’ ( www.academicfoundation.com).
2. The country’s forex reserves increased by $967 million for the week to touch $271.148 billion for the week ended November 16, as per figures released by the RBI. The forex reserves had increased by $3.663 billion to touch $270.181 billion in the previous week. Forex reserves have been rising for over two months now. The buying of dollars by the RBI to keep the rupee from appreciating suddenly has also helped augment the forex kitty.
3. ICRA Ltd and the city-headquartered United Bank of India have signed a memorandum of understanding to rate the bank’s loans and its other exposures under the standardised approach of RBI’s new capital adequacy framework for Basel-II. According to statement by the company, its ratings for the standardised approach would be carried out under its ‘Line of Credit” rating service, and would enable UBI to assess the new risk weights applicable to its borr owers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBI’s relevant guidelines. ICRA will assist borrowers of the bank to obtain ratings and offer special terms to the clients of the banks covered by the MoU. An ICRA rating for the bank’s client will enable faster loan processing and competitive credit terms from the bank.
4. The merger of Centurion Bank of Punjab (CBP) with the Kerala-based Lord Krishna Bank (LKB) would be completed by March next.
5. Effective management, optimal use of capital, and implementation of sound human resource practices are the key challenges facing the Indian banking industry, according to Mr. H N Sinor, Chief Executive, Indian Banks’ Association (IBA). These must be addressed in order to prepare Indian banking for adopting global best practices. “Managing capital risk is particularly important in order to maximise returns,” said Mr Sinor, in the context of two-day Bankers’ Conference (BANCON) in Mumbai, starting November 26.
6. The Life Insurance Corporation of India has formed a separate company called “LIC Pension Fund Ltd” to manage pension funds. This is the first company incorporated in India to manage pension funds under the New Pension System (NPS).
7. Banks may have access to a new means of loan recovery if the recommendations of a working group appointed by the Indian Banks’ Association are accepted by the Reserve Bank of India and the Government.The IBA’s suggestions include setting up of fast track courts on the lines of a ‘Lok Adalat’ to facilitate the speedy recovery of loans and repossession of property within the existing legal framework.“What is missing in our country is the presence of some special courts, which can deal with such cases expeditiously. There is a need to create such infrastructure so that there is some legal recourse for such problems,” said Mr H. N. Sinor, Chief Executive, Indian Banks’ Association.The working group will submit its recommendations in the next 15 days.
8. Dhanalakshmi Bank Ltd is contemplating the rights issue route to enhance its capital base.
9. ICICI Bank has joined hands with Johnson & Johnson, world’s largest healthcare product manufacturer and had offered a free blood glucose monitoring test for its customers at Vadakara branch.
10. Indian corporates have raised around $11.9 billion through overseas borrowing in the first five months of 2007-08, according to the Reserve Bank of India (RBI) data on external commercial borrowings.
