1. Multilateral lending agency World Bank will extend a USD 350 mn soft loan to accelerate development of road network in Karnataka.The Government of India and the World Bank today signed this loan to accelerate the development of Karnataka. The agreement was signed in the presence of Karnataka Chief Minister B S Yeddyurappa.The project is aimed at upgrading 1,231 km of roads into two-lane highways.
2. RBI has permitted Development Credit Bank (DCB) to open 10 new branches. The bank already has 80 branches spread over 17 states and Union Territories while it is in the process of setting up branches in Surat and Bharuch districts in Gujarat.
3. Vijaya Bank plans to install new counters at branches that would offer additional facilities to its customers round-the-clock. As a pilot study, the Bangalore-headquartered bank would initially offer this service in five branches across the country. These are like offering additional features beyond banking hours -- automated pass book entry, cash drop facility, internet banking".Initially, as a pilot study Bank will try them in five branches ...,". The branches would cater to young customers and office goers.
4. The Board of State Bank of Travancore has approved the draft letter of offer for its planned rights issue. It did not disclose the size of the issue.
5. The Delhi High Court has directed the Punjab National Bank to return securities worth Rs.1,000 crore to DLF Limited and slapped a cost of Rs.20,000 on the bank for illegally withholding it. The securities were withheld by the bank as it wanted the company to pay Rs.20 crore pre-payment charges on a loan.
6. Facing shortage of experienced hand, the government has relaxed the criteria for selection of Chairman and Managing Director of public sector banks, a decision that would make several executive directors eligible for elevation as CMD.Under the new criteria, a bank executive director (ED) with a minimum experience of 6 months would also be eligible to become CMDs.Earlier, an ED had to serve a minimum of one year to become eligible for the bank''s top post.
7. In a bid to achieve global status, Indian public sector bank major Central Bank of India has drawn up plans to open its branches in various foreign countries.At present, the bank has a presence at Mozambique in Africa.As part of its global expansion plans, the bank would soon open outlets in Bhutan, Nairobi, Dubai and also in Sri Lanka.
8. U.S. authorities closed a Washington state bank , bringing the total number of foreclosures in 2011 to 44.
9. In order to encourage Indian companies to expand their global footprint and showcase entrepreneurial skills, the RBI relaxed norms for overseas direct investments.The regulations relating to overseas direct investments, are being liberalised "with a view to providing more operational flexibility to Indian corporates having investments abroad".The modified norms will provide greater freedom to domestic companies like Tatas, Bharti and Reliance to increase their commitments in overseas joint ventures and subsidiaries and also help them repatriate funds without seeking prior approval of the RBI."The move is in recognition of entrepreneurial ability of India Inc by the Reserve Bank.
Tuesday, May 31, 2011
Friday, May 20, 2011
Banking Tides of 20.05.2011
1. With almost every bank having increased lending rates by at least 50 basis points and the SBI leading the pack with a hefty 75 basis points hike in its base and benchmark prime lending rates, bankers believe there could be some slowdown in credit growth this year.
2. HSBC expects India, Singapore and Malaysia, and Indonesia to each deliver over $1 bn in profit before tax in the medium term, joining Hong Kong and mainland China as 'billion-dollar' businesses, to accelerate the bank's growth in the region.
3. Idea Foundation was incorporated as a not for profit organisation under the Companies Act 1956 to promote quality education. The promoters of the foundation are in the business of real estate and construction for last 3 generations. The promoters started educational activities in 2000 in collaboration with Manipal IT Education, and subsequently, it became a university centre for Sikkim Manipal University in 2001. At present IDEA-IMT are having 509 students pursuing various programme offered by Sikkim Manipal University. In the last nine years, 2,350 students have benefited from this initiative. Idea Institute of Management and Technology has a unique industry internship programme spread over2 years, offering seminars, workshops as part of regular programmes. It has modern classrooms and audio-visual equipments. The management invites the best academicians and industry-focused professionals. It also has industry support from ICICI Pru, JKTyres, IL&FS investsmart, Nirma and Rasna, among others.
4. SKS Microfinance has challenged in the Supreme Court the special Act passed by the AP government to regulate micro finance institutions in the state after allegations that their high interest rates and strong-arm recovery methods led to suicides by farmers. An SC bench issued notice to the state government, directing it to file reply and posted the matter for hearing in the third week of July. According to the petition, the state government has no power to regulate the sector. Micro finance sector falls under the central list and is not a state subject on which the AP government could pass any Act, SKS said.
5. India's microfinance sector, under attack for the exploitative lending practices of some of the lenders, is fast losing senior professionals from foreign and private banks. The sector, which once attracted professionals from high-paying jobs in foreign and new-generation private banks, is now facing attrition. Recently, Sanjeev Vishwanathan quit as MD of the Bhartiya Samruddhi Finance (BSFL), a NBFC belonging to the BASIX Group. Chattanathan Devarajan, CEO, Spandana Spoorthy Financial Services, has also put in his papers to join ICICI Bank.
6. The RBI has said NBFCs, who intend to get into primary dealership business, should have minimum net-owned funds, or NOF, of Rs 150 crs. Banks who intend to expand to primary dealership business should have a minimum net worth of Rs 1,000 crs. Primary dealers, or PDs, are specialised traders in govt. bonds who have the market making mandate for govt. bonds and offer two-way quotes on bond trading. The revised guidelines, put up on RBI's website, have also said, in case a primary dealer intends to diversify into other permissible activities, such as brokerage and merchant banking , the minimum NOF shall be 250 crs. The guidelines stipulate that banks should also have ratio of capital to risk-weighted assets, or CRAR, of 9% and net npa or net of less than 3%, in addition to a profit making record for the last 3 yrs.
7. Business sentiment seems to be on a low after delivering the goods for the whole of last year. High interest rates, delays in getting project approvals as well as problems with regard to land acquisitions are some of the factors that have dampened spirits. As a result, new projects are getting delayed and in its place prudent management of working capital and inventory has taken precedence. Though the situation is not "alarmist", as pointed out by an industry watcher, the anxiety is apparent. The value of investment projects completed fell from about Rs 3.5 trillion in 2009-10 to Rs 2.7 trillion in 2010-11, according to CMIE.
2. HSBC expects India, Singapore and Malaysia, and Indonesia to each deliver over $1 bn in profit before tax in the medium term, joining Hong Kong and mainland China as 'billion-dollar' businesses, to accelerate the bank's growth in the region.
3. Idea Foundation was incorporated as a not for profit organisation under the Companies Act 1956 to promote quality education. The promoters of the foundation are in the business of real estate and construction for last 3 generations. The promoters started educational activities in 2000 in collaboration with Manipal IT Education, and subsequently, it became a university centre for Sikkim Manipal University in 2001. At present IDEA-IMT are having 509 students pursuing various programme offered by Sikkim Manipal University. In the last nine years, 2,350 students have benefited from this initiative. Idea Institute of Management and Technology has a unique industry internship programme spread over2 years, offering seminars, workshops as part of regular programmes. It has modern classrooms and audio-visual equipments. The management invites the best academicians and industry-focused professionals. It also has industry support from ICICI Pru, JKTyres, IL&FS investsmart, Nirma and Rasna, among others.
4. SKS Microfinance has challenged in the Supreme Court the special Act passed by the AP government to regulate micro finance institutions in the state after allegations that their high interest rates and strong-arm recovery methods led to suicides by farmers. An SC bench issued notice to the state government, directing it to file reply and posted the matter for hearing in the third week of July. According to the petition, the state government has no power to regulate the sector. Micro finance sector falls under the central list and is not a state subject on which the AP government could pass any Act, SKS said.
5. India's microfinance sector, under attack for the exploitative lending practices of some of the lenders, is fast losing senior professionals from foreign and private banks. The sector, which once attracted professionals from high-paying jobs in foreign and new-generation private banks, is now facing attrition. Recently, Sanjeev Vishwanathan quit as MD of the Bhartiya Samruddhi Finance (BSFL), a NBFC belonging to the BASIX Group. Chattanathan Devarajan, CEO, Spandana Spoorthy Financial Services, has also put in his papers to join ICICI Bank.
6. The RBI has said NBFCs, who intend to get into primary dealership business, should have minimum net-owned funds, or NOF, of Rs 150 crs. Banks who intend to expand to primary dealership business should have a minimum net worth of Rs 1,000 crs. Primary dealers, or PDs, are specialised traders in govt. bonds who have the market making mandate for govt. bonds and offer two-way quotes on bond trading. The revised guidelines, put up on RBI's website, have also said, in case a primary dealer intends to diversify into other permissible activities, such as brokerage and merchant banking , the minimum NOF shall be 250 crs. The guidelines stipulate that banks should also have ratio of capital to risk-weighted assets, or CRAR, of 9% and net npa or net of less than 3%, in addition to a profit making record for the last 3 yrs.
7. Business sentiment seems to be on a low after delivering the goods for the whole of last year. High interest rates, delays in getting project approvals as well as problems with regard to land acquisitions are some of the factors that have dampened spirits. As a result, new projects are getting delayed and in its place prudent management of working capital and inventory has taken precedence. Though the situation is not "alarmist", as pointed out by an industry watcher, the anxiety is apparent. The value of investment projects completed fell from about Rs 3.5 trillion in 2009-10 to Rs 2.7 trillion in 2010-11, according to CMIE.
Subscribe to:
Posts (Atom)
