Author Archives: Bhavya

The World of Finance: Week of March 31st to April 06th 2014

The world of finance week of Mar 31 to Apr 6

The world of finance week of Mar 31 to Apr 6

India: RBI

  • The RBI granted new banking licenses to IDFC, an infrastructure finance firm and Bandhan Financial Services, a micro-lender institute
  • RBI governor Raghuram Rajan suggests new banking licence aspirants to consider applying for a differentiated licence instead of a full licence
  • RBI directs banks to strengthen credit appraisal for Gold loans

India: SEBI

  • SEBI Directs MFs to Declare Monthly AAUM (Average Assets Under Management)
  • With the restoration of additional powers, SEBI has initiated proceedings against entities suspected to have indulged in ponzi-related schemes
  • SEBI unveils mobile app contest; winner to get Rs 3 lakh prize
  • SEBI installs new software tools for fraud detection

India: Data

  • Bank credit grows by 14.3%; deposits rise by 14.6% till March 21
  • According to a McKinsey report, 87% of General Managers of PSU banks are retiring in next three years

India: Banking expansions

  • Federal Bank plans to open office in Dubai
  • Doha Bank to open 1st branch in India next month; eyes $5 Bn business in 3 years
  • HDFC Bank to open 20 new branches in Chhattisgarh in 2014-15

India: General banking

  • Axis Bank launches home loan scheme for lower income group
  • CDC invests $28 Mn in Ratnakar Bank
  • United Bank recovers Rs 2,500 crore bad loans in Quarter 4

India: They said it

  • Raghuram Rajan: Retain PSU bank talent or face national calamity
  • Raghuram Rajan: It’s a shame many don’t have bank A/c; KYC norms need a relook
  • Rajiv Lall, Executive chairman, IDFC on receiving the banking license: “First three years will be all about compliance, geographical expansion and experimentation. We are not focused on balance sheet growth in the first three years”
  • Chandra Shekar Ghosh, CMD, Bandhan, one of the receivers of New Banking License: “We have got adequate capital for starting and the capital adequacy ratio is about 21%”

India: Frauds

  • Delhi police arrests three persons for credit card fraud, found bank details of over 1000 people in their laptop
  • In Surat, two people became victim of phishing phone calls and lose INR 74,700
  • A 51-year-old person has been arrested in Delhi, for cheating nearly 900 people for around INR 15 crore by fake promises of high returns

India: Forex reserve

  • India’s Forex Reserves rose to $303.67 Bn as of March 28 from $298.64 Bn in the previous week

International:

  • Barclays to sell UAE retail operations to Abu Dhabi Islamic Bank for $177 Mn

The World of Finance: Week of January 13th to January 19th 2014

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India: RBI

  • RBI clarifies on FDI exits using call & put options
  • RBI tightens provisioning norms for unhedged forex exposure
  • RBI extends Time to close exim deals extended
  • RBI puts brakes on bitcoin train in India
  • RBI to purchase four government securities worth INR 10,000 crore by Open Market Operations
  • RBI fines two co-operative banks (Rajkot Nagarik Sahakari Bank Ltd and Gandhidham Mercantile Co-operative Bank Ltd) in Gujarat for violating the Banking Regulation Act, 1949.

India: SEBI

  • Since October 2013, SEBI has initiated more than 300 attachment proceedings in about 65 different cases for recovery of approx Rs 2,000 crore
  • UK Sinha gets two-year extension as SEBI chairman
  • To retain investors’ interest in IPOs, SEBI may ask companies to make greater disclosures about price discovery and issue certain convertible bonds to retail shareholders to ensure some guaranteed returns

India: Finance Ministry

  • Finance Ministry has written to the Ministry of Corporate Affairs to expedite its due diligence report on 22 corporate applicants

India: Banking Developments

  • Bank of Maharashtra launches  ‘Mahabank, Royal Savings Account’ for HNIs

India: Banking expansions

  • Federal Bank plans to recruit about 3,000 employees and add 300 branches in the next three years
  • Allahabad Bank interested in acquiring Pune based Rupee Coop Bank
  • Dena Bank plans to open 65 new branches by March 2014
  • Bank trade unions in favor of slowing down on ATM network expansion and encourage customers to return to bank branches

India: General banking

  • Employee unions of Public Sector Banks have deferred their proposed two-day strike on January 20-21 as managements have offered to give higher wages
  • HDFC Bank not in favor of charging own customers for ATM use
  • IRDA is considering making it mandatory for banks to become insurance brokers

India: They said it

  • P. Chidambaram: Indian economy will get back to high growth path in 3 years
  • Nainalal Kidwai, HSBC India Head: “I do think that we need a pause in interest rates. Growth (situation) is scary”

India: Frauds

  • in Ahmedabad, a banker and a businessman have been accused of fraud involving Rs 3.22 crore

India: Forex reserve

  • India’s Foreign Reserves rose by $177.8 Mn to $293.28 Bn in the week ended January 10

International:

  • India and Pakistan considering to permit opening of bank branches in each other’s country, may be finalized by February 2014

The World of Finance: Week of January 6th to January 12th 2014


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India: RBI

  • RBI panel sustains 2016 deadline for Aadhar-linked bank a/c rollout
  • RBI allows NRIs to operate resident bank accounts on “either or survivor” basis
  • RBI panel has recommended that a special category of banks, called payments banks, to be set up to widen the spread of payment services and deposit products to small businesses and low-income households
  • RBI: Name change of Development Credit Bank Ltd to DCB Bank Ltd is approved
  • Every adult should have bank account by Jan 2016: RBI panel recommendation
  • The Govt and the RBI are trying to issue the first of the new bank licences by March 31
  • RBI relaxed FDI norms by giving foreign investors an option to exit their investments by selling their holdings of equity or debt

India: SEBI

  • SEBI allows MCX-SX to launch interest rate futures

India: Data

  • According to Swiss National Bank statistics, at the end of 2012, Indians had  approx Rs 9,000 crore in the European country’s banks
  • This doesn’t include money that Indians may hold in Swiss banks in the names of others or trusts
  • Fitch ratings has estimated that bank loans totaling between Rs.1.9 tn to Rs. 2.1 tn are due for refinancing in the next 12-15 months
  • The Govt has parked, interest-free, Rs 50,931 crore, with RBI at the end of December 2013

India: Banking Developments

  • Andhra Bank,UBI and BOB are planning to introduce interactive televisions in the e-lounges of its branches in about next two months
  • Corporation Bank and Geojit securities tie up for 3-in-1 account

India: Banking expansions

  • Axis Bank opens branch in Shanghai
  • Syndicate Bank plans to recruit around 5,000 new staff in 2014-15
  • Canara Bank to open branch in New York shortly

India: General Banking

  • Banks reach RBI to limit free ATM transactions to 5 per month
  • United Forum of Bank Unions: PSU bank employees to go on two-day strike from January 20
  • ICICI Bank plans to draw back the excess capital of about $250 mn from its UK and Canada subsidiaries
  • Indian Overseas Bank will finance upto Rs 50 lakh for entrepreneurs in the manufacturing sector and Rs 25 lakh for services sector to eligible entrepreneurs sponsored by BYST, an NGO

India: They said it

  • P. Chidambaram: Plan to open 10,000 bank branches a year from next fiscal
  • Mr Chakrabarty RBI DG, on charging for ATM:”It is very, very ridiculous that banks are charging the customers for withdrawing money, and that too from their own ATMs – it never happens anywhere.”
  •  U K Sinha, SEBI Chairman on information sharing with foreign regulators:”We are getting very good cooperation from foreign regulators, while SEBI is also very prompt in replying to information requests from its overseas peers,”
  • UK Sinha, SEBI Chairman on being called Activists: “Whether you like it or not, we have to respond to the needs of society and we have to be guided in long-term growth. So, I don’t think we are trying to be activists, as what we are trying to do is generate long-term trust in the Indian market”

India: Frauds

  • ICICI Bank executive steals INR 50 Lakhs by forging signature of deceased NRI
  • Five Nigerians were among six persons arrested from Bangalore on charges of fraudulently transferring money from bank accounts

India: Forex reserve

  • India’s Forex reserves declined by $2.59 bn to $293.10 bn for the week ended Jan 3

International:

  • Bank of China launches Yuan 2.5 bn bond in London

The World of Finance: Week of December 30th 2013 to January 5th 2014

the-world-of-finance-week-2013-dec-30

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India: RBI

  • RBI: Banks free to charge ‘reasonable’ ATM fees
  • RBI planning to test-market plastic currency this year, piloting with Rs 10 note
  • RBI allows lump sum payment at maturity of Gold loans; Gold loan to become NPA only if margin not maintained

India: RBI Half Yearly Report

  • The banking stability indicator shows that risks to the banking sector have increased since June 2013
  • The amount of recast loans touched an all-time high of 4 trillion or 10.2 per cent of the overall advances as of September 2013
  • A review of the extant single and group borrower exposure limits would considerably enhance the stability of the banking sector

India: SEBI

  • SEBI sets up local offices in Raipur, Panaji; will take care of issues including investor protection and education

India: Finance Ministry

  • Finance Ministry initiates exercise for interim budget

India: Data

  • India’s international financial liabilities declined by $12.8 Bn to $296.2 Bn at the end of Sep 2013 Qtr

India: Banking Developments

  • UCO Bank to sell bad loans worth Rs 1,900 cr
  • Mr. V. Kannan, Ex Executive Director of Oriental Bank of Commerce, takes charge as CMD, Vijaya Bank
  • Bank of Maharashtra launches one-time settlement scheme for small borrowers. Bank aims to recover Rs 800 crore worth NPAs through this scheme

India: Fund Raising Activities

  • QIP issues worth over Rs 15,000 crore in queue by PSU banks
  • Canara Bank raises Rs 1,500 crore through the issue of Basel-III compliant Tier-II bonds
  • For Canara Bank, this is over and above government capital infusion of 500 crore before March 2014

India: Banking expansions

  • Allahabad Bank inaugurates 200 ultra small branches
  • Canara Bank to set up 38 branches in Jammu and Kashmir
  • Indian Overseas Bank launches ‘Connect card’ aimed for the younger customers ages between 10 to 28 years
  • Corporation Bank launches a year-long campaign to promote agricultural credit and financial inclusion initiatives at national level
  • Bank of India plans to get into merchant banking
  • Union Bank of India has entered into a partnership with Jain Irrigation Systems to finance farmers purchasing drip irrigation systems

India: General banking

  • The Govt approved conversion of Perpetual Non-Cumulative Preference Shares into equity shares in Indian Bank, UCO Bank and Vijaya Bank amounting to Rs 400 crore, Rs 1,823 crore and Rs 1,200 crore respectively
  • Indian Bank and Indian Overseas Bank launch special schemes for home loans
  • Big banks like SBI, ICICI and Axis Bank not keen in pushing RBI’s CPI-linked bonds

India: Rates

  • PNB, Union Bank revise FCNR(B) deposit rates upwards
  • IDBI Bank revises deposit rates with immediate effect
  • Indian Bank revises interest rates

India: They said it

  • P Chidambaram on Fiscal Deficit: “We will maintain the fiscal deficit at 4.8% That is the red line that will not be breached. I am confident that it will not be breached”
  • SEBI Chairman U. K. Sinha on Insider Trading Mechanism: “In the new year, our focus areas will be on strengthening the insider trading mechanism and further strengthening the risk management system on the exchanges”

India: Frauds

  • A builder was booked for the second time in a fraud case by Nagpur police on 3rd January 2014 for allegedly duping a bank of Rs 17 lakh
  • Fraud, of sanctioning loans to fictitious school teachers, worth 2.96 crore caught at The Bilahat Branch of Odisha Gramya Bank in Cuttack district
  • In Margao, Bank manager along with 16 others booked for cheating worth 80.17 lakhs

India: Forex reserve

  • India’s Foreign Exchange Reserves rose by $204.9Mn to $295.71 Bn in the week ended December 27

International:

  • Malaysian Central Bank has no plans to regulate Bitcoin
  • A review by Deloitte, of more than 10,000 UK bank branches revealed that elderly and retired people were increasingly embracing digital services

The World of Finance: Week of December 23rd to December 29th 2013

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India: RBI

  • RBI to hold a meeting on January 28, 2014, for its quarterly review of monetary policy
  • RBI permits Indian companies to issue Tax free bonds to NRIs
  • RBI: No move to regulate Bitcoins

India: SEBI

  • SEBI makes IPO grading mechanism voluntary
  • SEBI simplifies account opening process for investors
  • SEBI: The government had agreed to a same tax treatment for all categories of foreign investors

India: Finance Ministry

  • Finance Ministry directs state-run banks to recover at least 10% of bad loans, by the end of this financial year

India: Banking Presence in 2013

  • Indian banks have opened 7,377 branches during calendar year 2013. This is the highest yearly number in the past decade
  • Canara Bank sets up 723 branches in 2013, while SBI opened 627 branches
  • Among private lenders, ICICI bank, with 587 new branches, opened the highest number of branches
  • The majority of branches were opened in non-metropolitan locations
  • HDFC Bank opened 333 of its 339 new branches in rural and semi-urban centres

India: Data

  • Bank Deposits grew 17% and Credits grew 15% y-o-y as on December 13
  • The deposits amounted to Rs 75.24 Lakhs Crore on December 13, as against Rs 64.30 Lakhs Crore during the same period last year
  • Bank credits amounted to Rs 57.01 Lakhs Crore as on December 13, as against Rs 49.61 Lakhs Crore in the same period last year

India: Banking Developments

  • Banks considering partial closing of ATMs at night
  • Central Bank of India launches a new Mobile Banking application and Europay-Mastercard-Visa compliant ‘RuPay’ debit card

India: Banking expansions

  • Canara Bank plans to add around 14 branches in overseas in next two years
  • Corporation Bank to open 10 branches in the Northeastern part of the country by March 2014

India: General banking

  • Soon banks will be graded – good, bad or ugly by Banking Code and Standard Board of India (or, BCSBI), an arm of RBI
  • Arun Tiwari, Ex Executive Director at Allahabad Bank, is new CMD of Union Bank
  • Canara Bank to raise Rs 1,500 cr through bonds
  • Dhanlaxmi Bank raises $10.8M through QIP (Qualified Institutional Placement)
  • ICICI Bank cuts home loan interest rates for new customers by 15 bps as a part of a special scheme, valid till January 31, 2014
  • In Mumbai, district consumer forum orders HDFC Bank to pay Rs 5 lakh to customer for not providing proper services

India: General

  • A number of bitcoin operators in India have begun suspending their business following RBI’s warning against use of such virtual currencies

India: They said it

  • Rajesh Kumar, RBI currency issue department’s regional GM on soiled or scribbled notes: “These are mere rumors. The guidelines being referred to probably relate to a May circular and an earlier one issued in 2001 by the RBI. It is only meant for banks, which have been asked not to staple or write anything on the notes”
  • RBI Deputy Governor K C Chakrabarty on Bitcoin: “Neither we regulate them nor we support them. So till we understand that, have some clarity on it, how and why people are doing it, only then regulation comes”

India: Frauds

  • Burglars decamped with the money stored in an Indian Bank ATM at Madukkarai, using the key and password

India: Forex reserve

  • Forex reserves fall slightly to $295.50 bn as on December 20, 2013

International:

  • Britain is planning to use smartphone technology through which photos of cheques can be sent to banks for depositing in accounts
  • 31 December is the deadline for Swiss banks to decide whether to join US program aimed at zooming in on lenders that helped Americans evade taxes

The World of Finance: Week of December 9th to December 15th 2013

the-world-of-finance-week-2013-dec-09
India: RBI

  • Suspecting potential NPAs, RBI orders audit of Allahabad Bank
  • RBI to offer funds to banks through an additional Marginal Standing Facility on Saturday, 14th December 2013

India: SEBI

  • The Justice Sodhi committee appointed by SEBI suggests to expand the scope of persons who can be charged under Insider Trading. The committee suggests to include Company founders, company employees, directors and their immediate families
  • Even ministers, bureaucrats, judges and officials in the possession of price-sensitive information may be included under the scope of Insider Trading

India: Finance Ministry

  • Finance Minister P. Chidambaram and RBI Governor Raghuram Rajan met a few days ahead of the RBI’s mid-quarter monetary policy review

India: Data

  • As of November 30, deposits with bank grew 16.12% y-o-y against non-food credit growth of 14.04%. Deposits stood at INR 74,77,928 crore at the end of November 30 against INR 64,40,028 crore in the same period last year
  • Gold and Silver imports declined 81% to $1.05 Bn in November 2013. Imports of Gold and Silver in November 2012 were $5.4 Bn

India: Banking Developments

  • Doha Bank gets licence to start operations in India

India: Banking expansions

  • HDFC Bank opens 10 branches in Haryana
  • By March 2014, the DCB Bank will have six branches in Chhattisgarh, will reach to 15 in next two years

India: Fund Raising Activities

  • SBI may hire Citigroup Inc., Deutsche Bank AG and HSBC Holdings Plc to raise INR 95.76 bn ($1.5 bn)
  • SBI needs more than INR 1.2 Tn by March 2018 to comply with the Basel III rules
  • United Bank of India seeks Rs 1,000 crore bailout to meet capitalisation requirements
  • Canara Bank is checking options to raise Rs 2,500 cr

India: General banking

  • Bank employees plan strike on 18th  December, 2013. Demand for early wage revision and a halt on banking reforms
  • TimesPro and HDFC Bank will be launching a training course for graduates to reduce skills gap in banking sector
  • CV R Rajendran, ex-Executive Director of Bank of Maharashtra, has been appointed the new CMD of Andhra bank
  • ICICI Bank Singapore branch contributes SGD 100,000 to a self-help group in SIngapore

India: They said it

  • Chidambaram on Inflation: “I think it is necessary to highlight the inaction of the state governments in this behalf, even while accepting that the central government must do all it can, within its powers, to moderate inflation”
  • Raghuram Rajan on new Banking licenses: “We are largely in line with our target date, may be a few weeks this way or that way. We hope to start handing out the licences by early next year”
  • Raghuram Rajan: “Inflation running higher than comfort”

India: Frauds

  • Government of India: Indians suffered a total loss of Rs 219.73 crore since 2011 due to cyber frauds
  • RBI has registered 10048, 8765 and 6035 fraud related cyber crime cases during 2011-12, 2012-13 and 2013-14 up to September 30, 2013
  • CBI has registered 12, 11, and 11 cases during 2011, 2012, and 2013 (up to November 30, 2013) respectively

India: Forex reserve

  • India’s Forex reserves reached 7 months high to $295.7 Bn in the week ended December 6

International:

  • Russia’s central bank withdraws the licenses of three banks on shady financial activities
  • China Everbright Bank raises US$2.6 bn in Hong Kong to become Hong Kong’s biggest IPO this year
  • China CITIC Bank may write-off bad loans worth $860 mn

The World of Finance: Week of December 2nd to December 08th, 2013

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India: RBI

  • RBI asks intelligence agencies for information about bank licence applicants
  • RBI plans to introduce increased capital requirements by 2016 for banks regarded as too big to fail
  • RBI issues updated guidelines for stress-testing of banks which will be effective from April 2014
  • RBI imposes penalty of Rs 5 lakh on The Coimbatore District Central Co-op Bank Ltd for non-adherence to KYC norms and AML guidelines

India: SEBI

  • SEBI issues advisory to general public on complaints
  • SEBI simplifies Demat and Trading account opening process
  • SEBI waives stamp duty on demat account

India: Data

  • RBI: Bank’s Credit grew by 7.4% during the week ended November 15 to Rs 54.49 lakh crore, while aggregate deposits were up 9.5% to 73.89 lakhs crore since April 1
  • All India Bank Employees Association’s list: NPA of top 50 corporates of PSU Banks is Rs 40,528 crore or ~25% of total NPA of these banks
  • All India Bank Employees Association: NPA of public and private sector banks rose from Rs 39,030 crore to 1.94 lakhs crore during March 2008 to march 2013
  • RBI:Indian banks need to raise Rs5 Trn (US$81.2Bn) before March 2018 to meet the new bank capital guidelines

India: Deposit and Lending Rates

  • Canara Bank cuts fixed deposit rates by up to 1
  • HDFC, the largest home loan finance company, raised home loan rates by 10 bps early this week

India: Banking Developments

  • Banks may raise ATM cost by Rs 6 per transaction
  • Corporation Bank enteres in a MoU with Bajaj Auto for financing its three-wheelers across the country
  • HDFC Bank introduces Aadhaar based E-KYC norms; joines hands with the National Payments Corporation of India
  • Indian Bank introduces a special health card for its customers in Chennai on a pilot-basis, in collaboration with Apollo Hospitals
  • Ratnakar Bank launches financial literacy programme in Ahmedabad

India: Banking expansions

  • SBI opens 27 ‘all woman branches’ in Chandigarh circle
  • Bharatiya Mahila Bank will open 16 more branches this fiscal, to reach 25 branches by March
  • Corporation Bank opens SME loan centre in Mumbai
  • Allahabad Bank to raise Rs 330 crore through QIP route in next fiscal year

India: General banking

  • The parliamentary standing committee on finance has recommended that corporate houses should not be given bank licences by RBI
  • Three global giants, viz, Global Payments, WorldPay and Total System Services, are bidding for Axis Bank’s more than two lakh credit and debit card swipe machines’ business which is valued at $200 mn
  • The Ministry for Micro, Small and Medium Enterprises  has called a meeting of heads of various Indian banks on Monday to find ways to speed up advances and timely credit flow
  • Canara Bank benefits in reducing NPA by utilising data of CIBIL while taking a decision on the loan applications

India: They said it

  • P. Chidambarm on Growth: “The second-quarter growth rate (to September) indicates that the economy may be recovering and on a growth trajectory again.”
  •  P. Chidambaram on Service Tax: “Service tax countdown has begun and the last date is December 31. Government has made a fair and generous offer, a onetime offer that is not likely to come your way for at least a couple of decades.”

India: Frauds

  • NRI’s account in City Union Bank hacked for Rs 39 lakh

India: Forex reserve

  • India’s Forex reserves rose by $5.03 Bn to $291.30 Bn for the week ended Nov 29

International:

  • Myanmar will allow foreign banks to begin offering limited financial services next year
  • China’s central bank will closely monitor the development of Internet financial services
  • China’s government has barred all financial institutions from currency exchanges that involve the digital Bitcoin currency
  • Bank of America Merrill Lynch says Bitcoin may “emerge as a serious competitor” to cash in e-commerce and digital money transfers
  • European Central Bank: Banks to repay $9.66 billion of crisis loans
  • High court in Zimbabwe orders to sell a house owned by the Minister’s wife to repay a debt owed to Kingdom Bank
  • February 2013 monthly statements of 647 Private Banking clients of Standard Chartered, UK were stolen from the server of Fuji Xerox

The World of Finance: Week of November 25th to December 01st, 2013

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India: RBI

  • RBI allows banks to pay interest on savings and term deposits at intervals less than three months
  • RBI plans to allow banks to start insurance broking businesses. Currently, Indian banks can sell and underwrite insurance products only through a joint venture with an insurer
  • Concerned by the steep deterioration in asset quality, RBI has initiated a forensic audit of United Bank of India ‘s books. Gross NPA of UBI rose from September’12 to September’13 to approximately Rs 6,286 crore or 160%
  • RBI clarified that foreign banks planning to incorporate in the country will be exempted from paying capital gains and stamp duty

India: SEBI

  • SEBI unveils norms to regulate research analysts
  • SEBI allows time till June 2014 for companies to align their employee benefit schemes with existing norms
  • SEBI relaxes norms for infrastructure debt funds by allowing foreign feeder funds to invest in IDFs
  • SEBI allows Limited Liability Partnerships to get stock exchange membership
  • SEBI: New insider trading norms in 10 days
  • To ease delisting rules SEBI sets up internal panel

India: Finance Ministry

  • To achieve fiscal deficit target of 73,866 crore, Finance Ministry will seek special dividend around Rs 30,000 crore from profit-making PSUs

India: Data

  • Banks collect $32 bn from dollar swap window: Economic Affairs Secretary
  • Banks’ CASA deposits up 33% in FY-2013: RBI

India: Deposit and Lending Rates

  • Indian Bank cuts FCNR (B) rates
  • Oriental Bank of Commerce has slashed its lending rate for MSME advances

India: Banking Developments

  • Syndicate Bank ties up with Maruti for car loans
  • Tata Sons withdraws application for new bank license. After Videocon, Tata Group is the second conglomerate to withdraw its application
  • Andhra Bank launches its 90th Nextgen branch and expects to transform at least 250 existing branches

India: Banking expansions

  • J&K Bank is looking to grow its business to Rs 1.70 lakh crore and achieve net profit of Rs 1,800 crore by 2015-16 :CEO Mushtaq Ahmad
  • Mahila Bank to open 16 more branches in 4 months

India: General banking

  • Bank can publish defaulter’s photo in newspapers: High Court
  • ICICI Bank’s Internet banking crashes for over 24 hours, without prior notice
  • In Lucknow, HCBL Co-op Bank targets beggars for financial inclusion
    • Bank has already opened accounts for around 160 beggars in Lucknow under the relaxed KYC norms of the RBI

India: They said it

  • P Chidambarm on Growth rate:“In 2014-15, our growth will be close to 6%. In 2015-16, it will be close to 7% and a year after we will be back to the high-growth rate of 8%.”
  • PMEAC Chairman C Rangarajan on CAD: “In the light of steps that have been taken the CAD will certainly come down below 3 per cent of the GDP in the current year and it will not be difficult to finance this level of CAD”

India: Frauds

  • Approximately 15 kg of Gold looted from Mahesh Cooperative Urban Bank in Hyderabad

India: Forex reserve

  • India’s Forex reserves rose by $2.69 billion to $286.26 billion for the week ended Nov 22

International:

  • Pakistan’s Forex reserves hit 12-yr low at $3.4 bn
  • UniCredit Bank Austria will cut up to 850 jobs in Austria
  • PWC Report: Europe’s banks face 280 bn Euro capital shortfall in 2014

The World of Finance: Week of November 11th to November 17th, 2013

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India: RBI

  • RBI asks banks to increase bad loan provisions
  • RBI allows FIIs to invest upto $5 bn in credit enhanced bonds

India: SEBI

  • SEBI steps in to regulatory arena of RBI against mis-selling by banks, issues a show cause notice to HSBC Bank for mutual funds sold to Singer Suchitra Krishnamoorthi
  • SEBI to bring in stricter corporate disclosure norms
  • SEBI proposes new norms for search and seizure powers
  • SEBI: Mutual Funds can hold gold certificates in physical form

India: Deposit and Lending rates

  • State Bank of Mysore hikes base rate by 0.1% to 10.25%
  • UBI has raised short-term retail deposit rates on select maturities

India: Fund Raising activity

  • SBI to raise Rs 5,000 crore via bonds
  • IDBI Bank to raise Rs 1,200-crore fresh capital through QIP
  • Dena Bank to raise Rs 600 crore through QIP
  • Dhanlaxmi Bank plans to raise Rs 130 cr this quarter
  • IDBI Bank to get $340 M loan from Germany’s KfW having 10 years maturity period
  • CDC commits $200 mn to IDFC’s infra fund

India: Data

  • RBI: Inflows through special dollar swap windows touch $17.5 bn
  • The NPA of 40 listed banks have rose by 38% to Rs 1,28,533 crore during the first half, likely to cross Rs 1.5 lakh crore by the end of the fiscal
  • SEBI: Pending investor complaints against companies rise 8.5% in October
  • SEBI: MF folio closures totalled 5.47 lakh in October, the second-highest monthly closure of folios this year

India: Banking Developments

  • First level screening of bank licence applications on December 16
  • SBI and HDFC Bank ask for an extension of RBI’s special window to attract  FCNR-B deposits
  • Usha Ananthasubramanian appointed as the CMD of Bharatiya Mahila Bank On 12 Nov 2013
    • She was Executive Director of PNB
  • SBI drops its plan to merge any associate bank this fiscal
  • Dena Bank to sell NPAs, floats tender for consultant
  • Demand for insuring jewelry is increasing, due to increasing wait lists and limited availability of lockers

India: Banking expansions

  • Max Bupa, Deutsche Bank enter into bancassurance tie-up
  • Corporation Bank entered into a MoU with Star Agri Warehousing and Collateral Management Ltd, Mumbai, for providing finance against warehouse receipts

India: General banking

  • PM Manmohan Singh to inaugurate Bharatiya Mahila Bank on Indira Gandhi’s birthday
  • According to Switzerland based Financial Stability Board (FSB), India witnessed a marked increase in the exposure of ‘shadow banking’ entities, whose asset base globally grew to $71 trillion in 2012-end
  • Over 34,000 branches of Indian public sector banks would become vulnerable as the Windows XP  would no longer be supported by Microsoft in about 150 days

India: They said it

  • P Chidambaram on New banking licenses: “It will be a pity if the new banks are clones of existing banks.”
  • P Chidambaram on GDP growth in 2013-14: “It’s quite possible that the estimates made by the RBI or the Prime Minister’s economic advisory council or the Government about growth being between 5 and 5.5% will be realised.”
  • Raghuram Rajan, RBI governor: “In the next few weeks, we will announce measures to incentivise early recognition, better resolution, and fair recovery of distressed loans. We will focus on putting real assets back to work in their best use,” said
  • Raghuram Rajan, RBI governor on loan restructuring: “You can put lipstick on a pig but it doesn’t become a princess.”
  • RBI deputy governor KC Chakrabarty on Wilful Defaulters: “Close all their bank accounts. Don’t allow them to do any banking transaction”
  • RBI deputy governor K C Chakrabarty on NPA waivers by banks :”In the last 13 years, banks have written off 1 lakh crore and 95% of these are large loans. Everyone talks of the farm loan write-off, but it is the medium and large enterprises segment that has a 50% share in NPAs.”

India: Frauds

  • 2 held in Mumbai for creating fake email IDs of ICICI Bank CEO Chanda Kochhar
  • SBI warns against Fake Recruitment Notices & Appointment Letters
  • A former relationship manager of a nationalised bank allegedly siphoned off Rs 66.55 lakh from accounts of NRI customers

India: Forex reserve

  • Forex reserves up at $282.11 bn as of November 8

International:

  • In Britain, Cybercrime investigators are looking into a barrage of spam sent to millions of British banking customers designed to freeze their computers and demand a ransom

The World of Finance: Week of November 04th to November 10th, 2013

the-world-of-finance-week-2013-Nov-04

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India: RBI

  • RBI permits M&As for foreign banks in India

India: Lending and Deposit rates

  • Union Bank of India raises FD rates on select maturity by up to 1.25%
  • Punjab National Bank raises FD rates by up to 0.50%
  • Canara Bank raises FD rates by 0.50%
  • Allahabad Bank raises FD rates by up to 1.2%
  • Karnataka Bank raises interest rates on FDs by 25 basis points
  • SBI and HDFC Bank have raised their minimum lending rates by 20 basis points each

India: Banking Developments

  • PNB, UCO, Indian Bank see rise in NPAs
  • YES Bank plans to raise $125 m from IFC

India: Banking expansions

  • Dena Bank to open 175 branches this year: Ashwani Kumar, CMD
  • From 2600 ATMs in March 2013, Bank of Baroda to reach 6000 ATMs by March 2014
  • Central Bank of India opens representative office in Hong Kong
  • ICICI Bank to expand its 24×7 electronic branch network from 61 at present to 100 by March 2014

India: General banking

  • Finance Ministry short lists CMDs for Six public sector banks, includes BoB, IOB, Canara Bank, OBC, Vijaya Bank and UBI
    • For the present round of selection, the finance ministry has relaxed the norms for selection
    • Existing CMDs are due for retirement in 2014-15
  • Axis Bank adepts Fico fraud protection system
  • Bank of India ties up with Aegis for Customer Relationship Management

India: They said it

  • P. Chidambaram on sectors prone to service tax evasion: “Those who are in these sectors must remember that the (Finance) Department will have a closer look. These are the tax evasion prone sectors. We are going to look at these sectors very, very closely”
  • Montek singh Ahluwalia: India can grow at 8%

India: Frauds

  • Lady doctor from Madurai held for financial fraud worth 16 lakhs

India: Forex reserve

  • India’s Forex reserves declined by $1.65 billion to touch $281.29 billion for the week ended Nov 1

International:

  • Syria is now being used other than Nigeria for online spam scams
  • In UK, Train operators,  Government and banking industry are working on solution to enable bank and credit cards to be used as train tickets
  • US seeks $864 million from Bank of America after fraud verdict
  • Australian Bitcoin bank hacked, 4100 Bit Coins ($1.3m) stolen
  • National Bank of Abu Dhabi has been named the safest bank in emerging markets in a new list compiled by Global Finance
  • First ever women’s bond from World Bank raises $165 million
  • SAC Capital to pay $1.8 billion penalty for insider trading