Banking Tides of 6th March 2012

1. The Government will provide adequate capital to all the public sector banks to help them face risks arising out the global economic uncertainties, according to the finance minister Pranab Mukherjee.
2. The Reserve Bank today said it will soon start issuing banknotes of Rs 1,000 denomination in non-sequential numbering.
3. The Supreme Court judgment cancelling 122 telecom licences has raised question marks over the ability of these companies to repay bank loans running into more than Rs 26,000 crs.
4. The Bihar government has decided to deposit its capital only in banks which pass a test based on the Credit Deposit Ratio (CDR).
5. Finance minister Pranab Mukherjee may have some good news for home-loan borrowers in the 2012-13 budget. The government is considering a proposal to double the tax deduction limit on interest on home loans to Rs 3 lakh per annum.
6. After shares and mutual funds, its now the turn of insurance policies to be digitised, with insurance regulator IRDA expected to give the nod for making policies available in demat form.
7. Private sector lender Axis Bank today said it has raised USD 500 million (about Rs 2,250 crore) through bonds to fund its overseas expansion. The board has passed a resolution approving the allotment of senior notes aggregating to USD 500 million under the MTN (Medium Term Note) programme,