1. Private sector banks have sought relaxation in the present norm that limits the deployment of business correspondents within 15 km range of a branch to give them flexibility in operations to meet the target for financial inclusion. The original intention of the 15-km restriction was to ensure timely service to customers, especially in the rural areas. But now, new generation private banks do not have an extensive branch network in semi-urban and rural areas.
2. The work at the insurance offices in northern Karnataka came to a standstill on Tuesday following the strike call by the Insurance Employees Associations to the Centre’s move to introduce two bills concerning insurance sector. Class I, III and IV employees of LIC and class III and IV employees of General Insurance Corporation participated in the strike. They also opposed the introduction of bill to amend GIBNA Act 1972 and LIC Act 1956.
3. The government today issued 6.35 per cent Oil Marketing Companies Government of India Special Bonds, 2024 for Rs 22,000 crore to three oil marketing companies. These bonds were distributed to Indian Oil Corporation (Rs 11,975.51 crore), Hindustan Petroleum (Rs 4,693.73 crore)and Bharat Petroleum (Rs 5,330.76 crore). These bonds have been issued for compensation towards estimated under-recoveries on account of sale of sensitive petroleum products in the current financial year.
4. State Bank of India (SBI) plans to raise capital up to Rs 1,500 crore through lower tier-II bonds to shore up capital adequacy ratio and support business growth. These bonds carry AAA/stable rating from Crisil. The tenure of this paper is expected to be 10 years. “The yields on the 10-year government bonds dipped from around 8.6 per cent at the end of September to about 5.7 per cent now. Hence, the bank will save on costs as it will be in a position to place bonds at lesser rates now,” a senior SBI official said.
5. The government is likely to announce in a few days details of insurance sops on export credit to banks and exporters as part of the first fiscal stimulus package, said S Prabhakaran, executive director, Export Credit Guarantee Corporation of India (ECGC). “The government will compensate an additional 10 per cent for insurance to exporters and overseas buyers, as well credit guarantees operated for banks.
6. Despite sharp erosion in the net worth of airline companies due to losses in the recent past, banks and financial institutions have decided to sanction loans to some of them including Jet Airways and Kingfisher Airlines, while some of the companies in this sector are still waiting. According to senior officials of a public sector bank, full service carrier Jet Airways has been sanctioned a loan worth Rs 700-800 crore from a consortium of public sector banks that includes Punjab National Bank and State Bank of India.
2. The work at the insurance offices in northern Karnataka came to a standstill on Tuesday following the strike call by the Insurance Employees Associations to the Centre’s move to introduce two bills concerning insurance sector. Class I, III and IV employees of LIC and class III and IV employees of General Insurance Corporation participated in the strike. They also opposed the introduction of bill to amend GIBNA Act 1972 and LIC Act 1956.
3. The government today issued 6.35 per cent Oil Marketing Companies Government of India Special Bonds, 2024 for Rs 22,000 crore to three oil marketing companies. These bonds were distributed to Indian Oil Corporation (Rs 11,975.51 crore), Hindustan Petroleum (Rs 4,693.73 crore)and Bharat Petroleum (Rs 5,330.76 crore). These bonds have been issued for compensation towards estimated under-recoveries on account of sale of sensitive petroleum products in the current financial year.
4. State Bank of India (SBI) plans to raise capital up to Rs 1,500 crore through lower tier-II bonds to shore up capital adequacy ratio and support business growth. These bonds carry AAA/stable rating from Crisil. The tenure of this paper is expected to be 10 years. “The yields on the 10-year government bonds dipped from around 8.6 per cent at the end of September to about 5.7 per cent now. Hence, the bank will save on costs as it will be in a position to place bonds at lesser rates now,” a senior SBI official said.
5. The government is likely to announce in a few days details of insurance sops on export credit to banks and exporters as part of the first fiscal stimulus package, said S Prabhakaran, executive director, Export Credit Guarantee Corporation of India (ECGC). “The government will compensate an additional 10 per cent for insurance to exporters and overseas buyers, as well credit guarantees operated for banks.
6. Despite sharp erosion in the net worth of airline companies due to losses in the recent past, banks and financial institutions have decided to sanction loans to some of them including Jet Airways and Kingfisher Airlines, while some of the companies in this sector are still waiting. According to senior officials of a public sector bank, full service carrier Jet Airways has been sanctioned a loan worth Rs 700-800 crore from a consortium of public sector banks that includes Punjab National Bank and State Bank of India.
