1.While there is a global credit crisis hitting the world’s leading banks, the country’s largest bank is cruising in profit mode, but is in no mood to reduce lending rates to stoke demand-led growth.The State Bank of India (SBI) said on Monday it would maintain “status quo” on lending rates even though there were signs of that softening in the coming months.“Interest rates have peaked. You could see some moderation in coming months,” SBI Chairman OP Bhatt said after announcing a 40 per cent increase in net profit during the second quarter ended September 2008 compared with the same period a year ago.Bhatt said inflation was beginning to moderate and there was adequate liquidity in the system.
2. ICICI Bank, India's second-largest bank, reported a 1.1 per cent rise in quarterly net profit, beating forecasts, as higher other income and lending rates offset investment losses and slowing credit growth.The country's leading private-sector bank, which is also listed in New York, said July-September net profit was 10.14 billion rupees ($203 million), up from 10.03 billion rupees a year ago.A Reuters poll of analysts had forecast a 2.3 per cent dip in net profit to 9.80 billion rupees for the fiscal second quarter.ICICI has borne the brunt of investor concerns about the Indian bank sector's exposure to the global financial crisis. Since the bankruptcy of Lehman Brothers last month, it has repeatedly said it was well-capitalised and deposits were safe.
3.The Reserve Bank wants depositors to get less, so that borrowers can get loans cheaper. It wants public sector banks to reduce interest rates on deposits.In a rare move, the central bank did this alongside Governor Duvvuri Subbarao’s maiden policy, with the assurance that liquidity (funds) will not be a constraint, three public sector bank executives told Hindustan Times on condition of anonymity. What this means is that the RBI would release funds from its own system.Subbarao addressed chiefs of state-owned banks after Friday’s policy and seemed to be looking for a new way after banks declined to take a cue from last Monday’s one percentage point cut in the repo (repurchase) rate at which RBI lends money to banks for up to two weeks.Banks have been complaining about deposit rates being too high, with fears that depositors may flee if rates were cut. Now, RBI is offering a cushion against that. One banker said RBI is trying to convey the impression that high interest rates are hurting industry and accentuating a slowdown.
4. Bank of Baroda on Saturday said its net profit for the second quarter ended September 30 stood at Rs 395.29 crore, a 20.81 per cent growth over the corresponding period a year ago.The bank had a net profit of Rs 327.19 crore for the September quarter last fiscal, Bank of Baroda said in a filing to the Bombay Stock Exchange.Total income rose to Rs 4,026.90 crore for the quarter under review from Rs 3,333.83 crore for the same period last fiscal.For the six months ended September 30, 2008, Bank of Baroda registered a net profit of Rs 766.14 crore, against Rs 658.03 crore for the same period last year.While, total income for the six months ended September 30 rose to Rs 7,833.26 crore from Rs 6,358.63 crore for the same period a year ago.The RBI’s best GDP growth estimate now is 7.5-8.00, down from 8.00 per cent forecast in April 2008 and July 2008, compared with 9 per cent growth in 2007-08.
5. The Reserve Bank of India (RBI) had no choice but to sit tight during the quarterly monetary policy review released on Friday, though it led to the steepest ever fall in Indian stock markets, according to global rating agency Moody's.In the latest mid term policy review, the central bank left repurchase rate, reverse repurchase rate and the cash reserve ratio unchanged at 8 per cent, 6 per cent and 6.5 per cent, respectively.“The recent slide of the rupee has stopped the central bank from further loosening monetary policy, which may stimulate the economy but increase the risk of capital flight,” Sherman Chan, economist with Moody's economy.com said.“The rupee has shed more than a quarter of its value breaking the important psychological level of $50. This is extremely concerning, from a macroeconomic management perspective, as a weak currency creates inflationary pressures.“Wholesale price growth, despite gradually easing, is still in double-digit territory, and this is viewed as 'unacceptable' by the central bank, whose tolerance rate is set at 5 percent.
6. State-owned commercial banks are expected to garner at least Rs 20,000 crore of additional bulk-deposits from public sector enterprises following an advisory from the finance ministry that government-owned companies should park their surplus cash with state-controlled banks.
7. Union Finance Minister P Chidambaram will meet the heads of public sectors banks and financial institutions, like IFCI and Small Industries Development Bank of India (Sidbi) on Tuesday to review their performance for the second quarter ended September 2008.
8. Regional rural banks (RRBs), which have been playing a key role in rural lending, are now seeking more visibility and parity with commercial banks.The RRBs have complained to the government that some state governments, corporations and embassies are not treating them on par with other banks.
9. Non-deposit-taking non-banking finance companies (NBFCs), with an asset size of Rs 100 crore and above, can now increase their capital funds by issuing perpetual debt instruments (PDIs).
10. Private sector Federal Bank, with its Rs 48,000-crore business, is looking to enter the wealth management space, especially for catering to its huge NRI clientele.
2. ICICI Bank, India's second-largest bank, reported a 1.1 per cent rise in quarterly net profit, beating forecasts, as higher other income and lending rates offset investment losses and slowing credit growth.The country's leading private-sector bank, which is also listed in New York, said July-September net profit was 10.14 billion rupees ($203 million), up from 10.03 billion rupees a year ago.A Reuters poll of analysts had forecast a 2.3 per cent dip in net profit to 9.80 billion rupees for the fiscal second quarter.ICICI has borne the brunt of investor concerns about the Indian bank sector's exposure to the global financial crisis. Since the bankruptcy of Lehman Brothers last month, it has repeatedly said it was well-capitalised and deposits were safe.
3.The Reserve Bank wants depositors to get less, so that borrowers can get loans cheaper. It wants public sector banks to reduce interest rates on deposits.In a rare move, the central bank did this alongside Governor Duvvuri Subbarao’s maiden policy, with the assurance that liquidity (funds) will not be a constraint, three public sector bank executives told Hindustan Times on condition of anonymity. What this means is that the RBI would release funds from its own system.Subbarao addressed chiefs of state-owned banks after Friday’s policy and seemed to be looking for a new way after banks declined to take a cue from last Monday’s one percentage point cut in the repo (repurchase) rate at which RBI lends money to banks for up to two weeks.Banks have been complaining about deposit rates being too high, with fears that depositors may flee if rates were cut. Now, RBI is offering a cushion against that. One banker said RBI is trying to convey the impression that high interest rates are hurting industry and accentuating a slowdown.
4. Bank of Baroda on Saturday said its net profit for the second quarter ended September 30 stood at Rs 395.29 crore, a 20.81 per cent growth over the corresponding period a year ago.The bank had a net profit of Rs 327.19 crore for the September quarter last fiscal, Bank of Baroda said in a filing to the Bombay Stock Exchange.Total income rose to Rs 4,026.90 crore for the quarter under review from Rs 3,333.83 crore for the same period last fiscal.For the six months ended September 30, 2008, Bank of Baroda registered a net profit of Rs 766.14 crore, against Rs 658.03 crore for the same period last year.While, total income for the six months ended September 30 rose to Rs 7,833.26 crore from Rs 6,358.63 crore for the same period a year ago.The RBI’s best GDP growth estimate now is 7.5-8.00, down from 8.00 per cent forecast in April 2008 and July 2008, compared with 9 per cent growth in 2007-08.
5. The Reserve Bank of India (RBI) had no choice but to sit tight during the quarterly monetary policy review released on Friday, though it led to the steepest ever fall in Indian stock markets, according to global rating agency Moody's.In the latest mid term policy review, the central bank left repurchase rate, reverse repurchase rate and the cash reserve ratio unchanged at 8 per cent, 6 per cent and 6.5 per cent, respectively.“The recent slide of the rupee has stopped the central bank from further loosening monetary policy, which may stimulate the economy but increase the risk of capital flight,” Sherman Chan, economist with Moody's economy.com said.“The rupee has shed more than a quarter of its value breaking the important psychological level of $50. This is extremely concerning, from a macroeconomic management perspective, as a weak currency creates inflationary pressures.“Wholesale price growth, despite gradually easing, is still in double-digit territory, and this is viewed as 'unacceptable' by the central bank, whose tolerance rate is set at 5 percent.
6. State-owned commercial banks are expected to garner at least Rs 20,000 crore of additional bulk-deposits from public sector enterprises following an advisory from the finance ministry that government-owned companies should park their surplus cash with state-controlled banks.
7. Union Finance Minister P Chidambaram will meet the heads of public sectors banks and financial institutions, like IFCI and Small Industries Development Bank of India (Sidbi) on Tuesday to review their performance for the second quarter ended September 2008.
8. Regional rural banks (RRBs), which have been playing a key role in rural lending, are now seeking more visibility and parity with commercial banks.The RRBs have complained to the government that some state governments, corporations and embassies are not treating them on par with other banks.
9. Non-deposit-taking non-banking finance companies (NBFCs), with an asset size of Rs 100 crore and above, can now increase their capital funds by issuing perpetual debt instruments (PDIs).
10. Private sector Federal Bank, with its Rs 48,000-crore business, is looking to enter the wealth management space, especially for catering to its huge NRI clientele.
