1. The RBI data shows that bank investment in mutual funds stood at Rs 111,956 crs as on May 7. Banks essentially park funds in liquid mutual fund schemes as the return is a shade better than the return earned by deploying funds in the overnight call money market. Fortnightly trend in data shows that there is a secular rise in such investments over the past three fortnights. According to Andhra Bank executive director Anil Girotra, this a pure fund management strategy by banks and surplus funds are deployed with mutual fund only until there are visible signs of pick-up in loan demand. A recent report by Deutsche Bank notes that there could be demand for funds on account of payment of around Rs 67,000 crore as licence fee by telecos towards payment of license fees for 3G spectrum, besides another Rs 15000-20,000 crore toward the upcoming auction of the broadband wireless spectrum. In addition, there is a likely outgo of around Rs 30,0000-35,000 crore because of advance tax payments starting in the middle of June.
2. The Tirupati Temple in Andhra Pradesh has for the first time deposited 1,075 Kgs
of gold with the State Bank of India (SBI) owing to security concerns.The Tirumala Tirupati Devasthanams (TTD) is an independent trust, which manages temples in Tirupati. TTD officials said they were extremely happy about taking the step due to security reasons, and also for wanting to convert idle gold into a source of income. "This is a great occasion. This is a win-win situation for both SBI and as far as TTD is concerned, this is the best part of it. When the proposal came and we were looking into it, some one or two other counterproposals came which made the SBI to up its interest rates also," said D. K. Adikesavulu, TTD Board Chairman.
of gold with the State Bank of India (SBI) owing to security concerns.The Tirumala Tirupati Devasthanams (TTD) is an independent trust, which manages temples in Tirupati. TTD officials said they were extremely happy about taking the step due to security reasons, and also for wanting to convert idle gold into a source of income. "This is a great occasion. This is a win-win situation for both SBI and as far as TTD is concerned, this is the best part of it. When the proposal came and we were looking into it, some one or two other counterproposals came which made the SBI to up its interest rates also," said D. K. Adikesavulu, TTD Board Chairman.
3. ICICI Bank, which will see its presence in western India grow with the acquisition of Bank of Rajasthan, has said no to foreign takeovers as it wants to focus on becoming India's top bank in terms of profitability and productivity. "No overseas (acquisition). We are not looking at any prospect (abroad). Internally, our growth strategy is quite India-linked. We are doing just one prospect (deal). I think it is too early to talk of any other prospect," ICICI Bank CEO and Managing Director Chanda Kochhar told when asked which domestic or overseas deals were on its radar. Asked if the latest deal would help her achieve the dream of putting ICICI ahead of number one State Bank of India, she said, "The number one position could be in many ways like productivity, efficiency and profitability. "We are the number one in many of these parameters. Clearly, profits will be a key area to our operations," she said, adding that Bank of Rajasthan would help ICICI Bank not only in terms of branch expansion by 25 per cent but also greater visibility in western and northern parts of the country.
