Category Archives: News

The World of Finance: Week of November 24th to November 30th 2014

the-world-of-finance-week-2014-Dec-01

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India: RBI

  • RBI released the final guidelines for licensing of Payments and Small Banks.
  • According to RBI’s guidelines, Payments Banks can open small savings accounts and accept deposits of up to Rs.1 lakh per individual customer, and provide remittance services. These banks are allowed to issue ATM or debit cards but are not allowed to issue credit cards or lend in any form
  • RBI’s final rules on Payments Banks prohibit telecom operators from leveraging their nationwide retailer networks and channels if they enter the new business
  • RBI can give banks more flexibility to restructure distressed loans in a bid to steer funding towards cash-strapped infrastructure projects

India: SEBI

  • SEBI fined Rs. 1 crore to six investment banks SBI, ICICI, Kotak Mahindra, IDBI, DSP Merrill Lynch and Edelweiss for suppressing key information while selling the maiden equity issue of credit rating agency CARE
  • SEBI has allowed as many as 123 entities to set up Alternative Investment Funds

India: Finance Ministry

  • Mauritius is again emerging as the largest source of foreign direct investment (FDI) in India, accounting for an inflow of $ 4.19 Bn in the April-September period
  • Jayant Sinha, Minister of State for Finance said in Lok Sabha that the main reasons for increase in NPAs of banks are sluggishness in the domestic growth during the recent past, slowdown in recovery in the global economy, uncertainty in the global markets, delay in environmental permits
  • The government plans to raise about $14.4 Bn by reducing its stakes in state-run banks to 52%
  • Government raises account opening target to 10 crore by 26 Jan under PMJDY. 7.64 crore bank accounts have been already opened under PMJDY till November 18

India: Banking Development

  • Anywhere, anytime bill payment — currently available to only a section of Indians with access to net banking and that, too, restricted to a handful of utilities — will soon be available for all citizens for all utilities under the Bharat Bill Payment System (BBPS)
  • RBI Governor Raghuram Rajan lauded SBI’s next generation banking initiative INTOUCH which offers multiple services like instant account opening, instant issuance of debit card, live interaction with experts, opportunity to buy financial products among others, under one roof

India: Banking Expansion

  • Bhartiya Mahila Bank eyes Rs 1,000-crore deposits, Rs 800-crore loan book by March-end. At present, the bank’s deposit stands at over Rs 300 crore and loans at Rs 500 crore
  • Non-performing assets (NPA) of public sector banks rose sharply to 5.33 % of total advances in September 2014
  • Pradhan Mantri Jan-Dhan Yojana can double ATM network in 2 years
  • Bank credit growth rises 11% to Rs 62,52,937 crore

India: General banking

  • A panel headed by RBI Governor Raghuram Rajan has shortlisted 10 Executive Directors for the post of CMD in eight public sector banks
  • Crisil says that telecom companies are best suited to start payment banks due to their high user base and strong distribution network
  • The Australia and New Zealand Banking Group (ANZ Bank) appointed Sanjeev Bajaj as Chief Executive Officer of its India franchise in place of Subhas DeGamia who has been elevated to a global role
  • SBI will launch an Islamic equity fund next month aimed mainly at attracting investments from the country’s 170 million Muslims
  • Govt banks get autonomy to appoint auditor

India: Frauds

  • The Enforcement Directorate has registered case against officials from Dena Bank, Oriental Bank of Commerce, Bank of India, Vijaya Bank and UCO Bank under the Prevention of Money Laundering Act (PMLA). ED has alleged that these officials misused cash credit facilities and laundered the proceeds to Dubai via Hawala route

India: They said it

  • Pranab Mukherjee, President, India: India will soon attain an 8-9% annual growth rate and become a $3-trillion economy
  • Raghuram Rajan, RBI Governor: The amount written off by banks as bad debts in the last five years would have been enough to fund the education of 15 lakh of the poorest children in the top private universities of the country, all expenses paid. only Rs 30,590 crore of bad debt was recovered by banks through the debt recovery tribunals in FY14 from the Rs 2,36,600 crore claimed even as cases keep piling up
  • Uday Kotak, Chief of Kotak Mahindra bank: Consolidation key for Indian banking industry’s growth and to meet financing needs of the country
  • KV Kamath, ICICI Bank Chairman: The RBI’s new norms for payments banks and small finance banks are a positive step
  • Pramit Jhaveri , CEO, Citi India: Many global multinational clients of Citibank have evinced interest in having a larger footprint in India and to invest more here, which gives it a significant opportunity to participate in the Government’s Make in India programme

India: Forex reserve

  • India’s foreign exchange reserves fell by $672.4 Mn to $314.87 Bn for the week ended Nov 21

International:

  • The Philippine government has mandated Deutsche Bank and HSBC as joint global coordinators for an offshore offering of US dollar bonds
  • Eurozone banks’ corporate lending faces nine-year stagnation

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

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India: RBI
• RBI governor Raghuram Rajan has been conferred with the Best Central Bank Governor award for 2014 by Euromoney magazine
• Reserve Bank Launches Financial Literacy Awareness Programme
• RBI allows Repco Home Finance to raise foreign shareholding to 49%
• The Bombay High Court has issued notice to the RBI in connection with a PIL which alleges that the non-performing assets (NPA) of nationalized banks rose up from Rs 455 crore for the year ended March 2008 to Rs 9,190 crore in March 2012
• RBI: No Rs. 5,000 Denomination Note Launch
• RBI has signed a pact with Central Bank of Kenya for exchange of information and supervisory cooperation
• RBI issues caution on fake bills post FinMin alarm
India: SEBI
• To check any fraudulent use of investor accounts by brokers, SEBI plans to tighten norms for the Power of Attorney taken by them from their clients including by colour-coding such PoAs as per the risks involved in such transfer of powers
• SEBI issues guidance on one-time registration process
India: Finance Ministry
• Arvind Subramanian Named Chief Economic Adviser to Indian Finance Ministry
• The Finance Ministry has written to the RBI to consider reimposing some restrictions on gold imports
• Govt plans to catch chit funds under Rs 100 cr that escape SEBI net
• Finance ministry: Black money study reports yet to be accepted
• Finance ministry asks State Govts to be extra alert over foreigners buying immovable properties
• Finance Ministry forms bankers’ panel to progress in power projects. The panel will submit its suggestions by November 7
India: Banking Development
• Corporation Bank has launched the ‘e-Mandate’ (digital mandate) service to provide robust platform for large volume of repetitive payments
• Kotak Mahindra Bank launched a Facebook-based instant fund transfer service wherein one can send money to friends on the social media network real time, for free
• SBI has come up with new norms for ATM transactions, offering more free ATM usage for customers maintaining higher account balance
India: Banking Expansion
• Andhra Bank is targeting a business of over Rs 3 lakh crore by March 2015 and will be opening 400 more branches
• Canara Bank will raise up to Rs 850 Mn rupees (USD 13.85 Mn) through selling shares to institutional investors or a preferential issue
India: General banking
• Axis bank cuts base lending rate by 10 basis points to 10.15%
• Bank of Baroda raises deposit rate to 8.75% from 8%
• 6.02 cr bank accounts opened under Jan Dhan scheme
• India’s banks will restructure more than Rs.5,000 crore in loans disbursed to borrowers in Jammu and Kashmir, which was devastated by floods last month
• Jammu and Kashmir Bank pays Rs 128.88 crore dividend to state
• ICICI Bank chief Chanda Kochhar has been awarded honorary Doctor of Laws degree by Canada’s Carleton University for her work in the financial sector
• The Andhra Pradesh Government has opened an exclusive account with Andhra Bank for collecting donations for providing relief to those affected by cyclone
• Bank unions call for strike on 12 November over wage hike
• Karur Vysya bank won IDRBT Banking Technology Excellence award
India: Frauds
• The Thane district consumer forum has held Canara bank liable for failing to block a customer’s ATM card even after she lodged a complaint about a fraudulent transaction. The consumer forum has directed Canara Bank to reimburse Rs. 55,200 fraudulently withdrawn along with interest at 9% per annum from August 2010
India: They said it
• S Sandhu, Financial Services Secretary: The Reserve Bank will soon invite applications for issuance of licences in three categories — small banks, payment banks and universal banks — to achieve financial inclusion target
• Raghuram Rajan, RBI Governor: RBI is in talks with govt on keeping its independence
• Raghuram Rajan, RBI Governor: RBI is in discussions with the government over the country’s monetary policy framework
India: Forex reserve
• Foreign exchange reserves rose by $.1.31 Bn in the week ended October 10 to $312.74 Bn
International:
• French bank Group BPCE launches Twitter cash transfer service
• Five bank branches (HSBC Holdings, Hang Seng Bank, Citibank and Australia and New Zealand Banking Group) in Hong Kong shut due to Occupy Central disruptions
• Shanghai Cooperation Organization (SCO) Development Bank ready to finance projects in India, Iran

The World of Finance: Week of October 06th to October 12th 2014

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India: RBI

  • RBI cancels licence of Ajmer Urban Co-operative bank on insolvency
  • RBI clarified that the total number of free transactions (both financial and non-financial) at other bank ATMs would continue to remain at five a month if the transactions are carried out at both the metro centres and other locations
  • RBI to monitor trades by companies in debt markets
  • RBI: Mid, small size house price rise moderated more
  • RBI raises concern over increasing credit to realty, infrastructure sectors

India: SEBI

  • SEBI notifies one-time registration system for brokers
  • SEBI may modify colour codes for mutual funds
  • As an attempt of rationalizing expenses, SEBI asks Finance Ministry if it could deduct legal fees from penalties before remitting the amounts to the Government
  • SEBI to replace listing regulations, tighten trading rules

India: Finance Ministry

  • The Finance Ministry and the RBI are set to finalise a new monetary policy framework by the end of the year that will make the Government responsible for setting targets of retail inflation
  • The Government is in discussions with the RBI on scrutinising the practice of banks selling insurance products, commonly called Bancassurance
  • Finance Ministry refuses to reduce excise duty on branded diesel

India: Banking Development

  • Jan Dhan Yojana: new bank accounts opened exceeds 5.5 Cr mark, mobilizing deposit of INR 4,268 Cr
  • Union Territories of Chandigarh, Puducherry and the three districts of Gujarat — Porbandar, Mehsana and Gandhinagar achieve the target of “at least one bank account for each house” under Jan Dhan Yojana
  • Bank of Maharashtra has launched Doorstep Banking Service (DSBS) for Corporate/Retail Cash or Instruments

India: Banking Expansion

  • Canara Bank to raise Rs 1,500 crore for asset growth in FY15
  • Canara Bank ties with Deutsche Bank for payment solutions
  • SBI opened its first customer service point (CSP) at Tura, Meghalaya
  • Federal Bank ties up with IIFL to offer enhanced broking services

India: General banking

  • National Bank increased the interest rates by 2% on FDs of INR 1 Cr
  • World Bank keen on funding Andhra Pradesh Buddhist circuit
  • The Karnataka High Court has suggested to the authorities concerned to ensure that every construction worker in the State gets a no-frills bank account

India: Frauds

  • Based on an allegation by Golf Technologies, a Magistrate’s Court directed Delhi Police to issue notices to Axis Bank’s CEO and its top officials with regard to a fraudulent transfer of Rs19.89 crore

India: They said it

  • S S Mundra, RBI Deputy Governor: The central bank plans to announce the final norms on small and payments banks next month
  • Arvind Mayaram, Finance Secretary, India : RBI and Government Will Cooperate on Inflation

India: Forex reserve

  • India’s forex reserves down $2.75 Bn to $311.42 Bn

International:

  • U.S. and UK to test big bank collapse in joint model run
  • World Bank Group launches Global Infrastructure Facility to channel funds to emerging markets
  • Jim Yong Kim, World Bank President: Trade Facilitation Agreement (TFA) implementation problem a ‘real shame’
  • Iran and Russia are planning to establish a joint bank in an effort to multiply bilateral trade and bypass sanctions on the Islamic Republic’s banking sector
  • The International Swaps and Derivatives Association (ISDA) and 18 major banks that dominate the market will now allow financial watchdogs to apply temporary stays to prevent a rush to close derivatives contracts if a bank runs into trouble

The World of Finance: Week of September 29th to October 05th 2014

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India: RBI

  • RBI to banks:  Accept self-attested documents to open account
  • RBI: External Debt up $12.6 Bn at $346.6 Bn in Q1
  • RBI kept the repo rate unchanged at 8% and the reverse repo rate was also maintained at status quo of 7%

India: SEBI

  • Government is considering to merge Forward Markets Commission (FMC) with SEBI to better monitor futures market
  • SEBI wants to cut the timeline for Initial Public Offers (IPOs) and Follow-on Public Offers (FPO) of equity to four days

India: Finance Ministry

  • The government is stepping up efforts towards consolidation of public sector banks (PSBs). The finance ministry has sent a letter to all PSBs asking them to provide business and financial details within a month to SBI Capital Markets
  • The Finance Ministry has asked public sector banks to tighten norms, including know your customer monitoring for high-value fixed deposits (FD)
  • Finance Ministry has begun discussion with RBI on panel to set monetary policy with an inflation focus

India: Banking Development

  • ICICI bank has rolled out a new special account for the NRI customers
  • Yes Bank to offer discounts and deals at their ATMs to all customers
  • IndusInd Bank launches India’s first digital branch in Gurgaon
  • ICICI Bank hires astronauts & sportsmen to inspire its young managers
  • Standard Chartered is offering to manage Union Bank of India’s Rs 1,386-crore qualified institutional placement for a token Re 1

India: Banking Expansion

  • Doha Bank to acquire India operations of HSBC Oman

India: General banking

  • The Central Vigilance Commission (CVC) wants banks to be extra cautious while sanctioning loans, in light of the recent scandal involving alleged bribes in exchange for credit limit enhancement at Syndicate Bank – in light of the recent scandal of bribery for enhancing the credit limit at Syndicate Bank
  • PSU banks, financial regulators to get full-time chiefs in Oct 2014
  • Punjab National Bank (PNB) has decided to levy charges on all online transfer of funds, irrespective of the amount, to accounts in other banks made through National Electronic Fund Transfer (NEFT)

India: They said it

  • Raghuram Rajan, RBI Governor: RBI is in the process of redefining the definition of “wilful defaulters” so as to bring the directors of defaulting companies under its ambit
  • Raghuram Rajan, RBI Governor: RBI to re-examine foreign investment limit in govt bonds
  • GS Sandhu, Financial Services Secretary:  India Post suited to be payment bank

India: Forex reserve

  • Foreign exchange reserves fell by $1.42 Bn for the week ended September 26 to $314.18 Bn

International:

  • The World Bank has trimmed its growth forecast for developing East Asian economies this year to 6.9% and urged governments to improve conditions for investment and exports
  • India likely to join Asian infrastructure bank

 

The World of Finance: Week of September 22nd to September 28th 2014

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India: RBI

  • RBI panel outlines steps to help PSU banks manage talent better
  • RBI released the issuance calendar of Government bonds for the second half of this fiscal year

India: SEBI

  • SEBI appoints Gyan Bhushan as Chief vigilance officer
  • MCX Stock Exchange Ltd (MCX-SX) receives approval from SEBI to change its name to Metropolitan Stock Exchange of India Ltd, or mSXI
  • SEBI wants SMEs to get listed for more gains

India: Finance Ministry

  • The Finance Ministry is pushing for further easing of rules for foreign direct investment
  • The Finance Ministry has opposed a proposal to supply domestically produced coal to power plants that do not have a fuel supply agreement (FSA)

India: Banking Development

  • IDFC Bank to kick-start banking operations by Oct 1, 2015
  • SBI, ICICI allow kids to operate bank accounts
  • Banks get a push from RBI to mine social media, know customers better

India: Banking Expansion

  • FIPB to decide on HDFC Bank proposal to increase foreign investment limit
  • IDFC raised Rs 1000 Cr through qualified institutional placement (QIP) after selling 7.3 crore shares for Rs 137 each
  • Rs 1,500 crore deposited in banks under Jan Dhan Yojana
  • Already about 4  Crore new bank accounts have been opened under Jan Dhan Yojana

India: General banking

  • Board of Bank of Baroda approves  stock split of 1 equity share into five equity shares, subject to regulatory approvals
  • Bank unions plan protests from Oct 10
  • State Bank of India likely to hold the subsidiary banks’ merger plan
  • Calcutta HC stays United Bank of India’s declaration of Kingfisher Airlines as wilful defaulter
  • IDBI Bank approves raising rupee borrowing limit to Rs 15,000 crore
  • Syndicate Bank terminated its suspended CMD Sudhir Kumar Jain’s term

India: Frauds

  • The Visakhapatnam branch of CBI has registered a case against the chief manager of the Indian Bank at Narasaraopet in Guntur for allegedly entering into a criminal conspiracy with a few companies and persons to defraud the bank of Rs 10.49 lakh

India: They said it

  • Raghuram Rajan, RBI Governor: Macro indicators improving but rate cut still away
  • Raghuram Rajan, RBI Governor: Need to tackle ‘persistent’ inflation
  • Raghuram Rajan, RBI Governor: India needs “sensible” regulations to spur growth
  • RBI Deputy Governor: Discussions are going on to Join Euroclear

India: Forex reserve

  • India’s forex reserves fell by $101.3 Mn in the week ended September 19 to $315.59 Bn

International:

  • A China-led effort to launch the Asian Infrastructure Investment Bank has attracted the interest of 21 countries
  • Banks shut branches over Hong Kong protests

The World of Finance: Week of September 15th to September 21st 2014

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India: RBI

  • RBI will issue the final guidelines on universal banking licences on tap before the end of this fiscal
  • RBI cancels licence of Ajmer Urban Cooperative Bank
  • RBI: banks free to charge ATM users
  • RBI asks banks to roll out Point of sale (POS) machines for debit cards

India: SEBI

  • SEBI relaxed its proposed corporate governance norms by bringing related-party transaction norms in line with the Companies Act
  • SEBI to soon notify norms for Real Estate Investment Trusts
  • SEBI pulls up mutual funds over high commissions

India: Finance Ministry

  • Finance Ministry: Government to pay 2% commission to banks for direct benefit transfers

India: Banking Development

  • South Canara District Central Cooperative (SCDCC) Bank launched “bank-cum-ATM on wheels”
  • Axis Bank launches e-surveillance facility at ATM locations
  • Canara, HSBC, Oriental Bank of Commerce, Life Insurance launched CHOICeNET, a portal that will allow bank employees to provide end-to-end information for their customers’ life insurance policies
  • Federal Bank launches new version of e-passbook

India: Banking Expansion

  • SBI associate banks to raise Rs33, 000 crore capital in next 5 years
  • South Indian Bank plans to raise ₹500 crore via QIP
  • ICICI Bank Ltd signed a framework agreement with the Export-Import Bank of China (China Exim Bank) for $1 Bn
  • Axis Bank signs MoU with China Development Bank
  • SBI signed an agreement with China Exim Bank for a Line of Credit of $ 1.8Bn for imports of raw material, energy, equipment, mechanical and electronic products, among others from China

India: General banking

  • Banks open 4 crore accounts under Jan Dhan Yojana; mobilize Rs 3,700 crore
  • EPFO mandates firms to provide workers’ bank account numbers for easy PF transfer
  • Japan’s Mizuho Bank to open branch in Ahmedabad by mid-2015
  • State Bank of Hyderabad launches settlement scheme for NPAs
  • The Export Import Bank of India has extended a USD 62.95 Mn Line of Credit (LOC) to Republic of Senegal for a rice self-sufficiency programme

India: Frauds

  • In Vadodara, Four persons were arrested and accused for duping loan seekers in the United States (US) through tele-calling and amassed around Rs 3 crore

India: They said it

  • K Sinha, SEBI Chief: Work in progress for guidelines on wilful defaulters
  • The International Monetary Fund (IMF): RBI needs to further increase policy rates to bring down inflation on a sustained basis

India: Forex reserve

  • India’s foreign exchange (forex) reserves dipped US$ 1.62Bn to US$ 315.698 Bn in the week ended 12 September 2014

International:

  • China’s central bank is injecting a combined 500 Bn Yuan ($81.35 Bn ) of liquidity into the country’s top banks
  • G20 finance ministers agreed on allowing automatic sharing of all bank information with tax authorities at the end of each year, starting 2017

 

The World of Finance: Week of September 01st to September 07th 2014

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India: RBI

  • RBI eases rules for ECB lenders to extend loans in rupees
  • RBI introduced a number of changes in bonds issued under Basel III international banking norms as a way to make it easier for banks to raise capital and also to make such bonds attractive for investors
  • RBI sets up a first of its kind permanent digital gallery in Chennai aimed at spreading awareness on financial literacy
  • RBI sets up supervisory college for Axis Bank

India: SEBI

  • SEBI: Higher threshold limits to stay for mutual funds
  • SEBI said that listed companies must follow higher corporate governance standards and there will be no dilution to the new norms kicking in from next month

India: Finance Ministry

  • Finance ministry sets up panel to examine unclaimed deposits in PPF, bank & post office saving schemes
  • Finance Ministry to take up 35 FDI proposals
  • Foreign Ministry has approved 22 FDI proposals worth around Rs 4,000 crore
  • Finance Ministry asks RBI to tighten monitoring to check fund diversion

India: Banking Development

  • DBS Bank launched a marketing campaign with a four-part film that is a love story revolving around purpose, relationship and connectivity
  • SBI launches savings bank accounts for children
  • Corporation Bank has launched the ‘Grand Festival Dhamaka’ offer on home and vehicle loans, and loans for medical and business professionals. The offer will be on till December

India: Banking Expansion

  • Dena Bank aims to raise Rs 1,500 crore
  • Exim Bank has signed an agreement with Japan Bank for International Cooperation (JBIC) to boost infrastructure development in India as well as to enhance connectivity and regional integration between the country and its neighbours
  • IDBI Bank launches e-lounge in Mumbai branch
  • HDFC Bank launched its Secure Banking programme and plans to extend it to all its 96 branches across Odisha as part of its efforts to create banking awareness among customers
  • Union Bank of India (UBI) will raise Rs 1,386 crore through qualified institutional placement (QIP) this financial year

India: General banking

  • All India Bank Employees Association to stage protests on September 15 and 20
  • Public sector bank appointments to be under CVC vigilance
  • Kotak Mahindra Bank has appointed Farida Khambata as additional director on its board
  • Branches of Indian banks may face closure in UK crackdown
  • Andhra Bank readies to take hit as farmers stop repaying loans

India: Frauds

  • CBI arrested two suspended senior executives of UCO Bank in connection with the INR 5.73 crore loan fraud

India: They said it

  • Raghuram Rajan, Governor, RBI: Government, RBI to devise monetary framework for central bank
  • Raghuram Rajan, Governor, RBI: BRICS bank not aimed at challenging IMF, WB
  • Raghuram Rajan, Governor, RBI: Grand, big picture reforms in India may take some time
  • U K Sinha: SEBI studies its own regulatory impact
  • Rana Kapoor, MD & CEO, YES Bank: Our bank is institutionalized, not family-run

India: Forex reserve

  • Forex Reserves up $60 Mn at $318 Bn as of August 29

International:

  • UK proposes cutting Russia off from SWIFT international banking system

The World of Finance: Week of August 25th to August 31st 2014

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India: RBI

  • RBI eases norms, allows single document containing address and ID proof for opening Savings account
  • RBI has asked the public to pay their income tax dues well in advance, authorizes 29 agency banks to accept such payments
  • The RBI has eased the refinancing procedure of external commercial borrowings

India: SEBI

  • SEBI sets 1-year target to complete probes; 221 cases underway
  • SEBI introduces new settlement guarantee safety net
  • SEBI opens new office in Bangalore

India: Finance Ministry

  • Finance ministry considers splitting post of CMD for PSU banks
  • The Finance Ministry initiates actions for listing of one of the country’s largest asset management companies, UTI
  • The Finance Ministry has asked the state-owned LIC to submit details on structuring the Rs 30,000-life cover to be offered under the Jan Dhan Yojana

India: Banking Development

  • All branches of banks across the country will become Aadhaar-enabled by early next month, allowing customers to open accounts with just their 12-digit Aadhaar number
  • ICICI Bank announced the launch of two new mobile banking applications; ‘iLoans’ and ‘iTrack’, for accessing loan account details and tracking status of dispatches, respectively

India: Banking Expansion

  • Banks to hold 60,000 camps to open 7.5 cr accounts under Jan-Dhan Yojana

India: General banking

  • Indian Bank to revise interest rates on FCNR (B) deposits
  • SBI Lowers Interest Rate on Home Loans

India: They said it

  • Arun Jaitley, Finance minister: Containing inflation top priority of Government
  • Raghuram Rajan, RBI Governor: Indian banks’ bad loan level not ‘scary’
  • Raghuram Rajan, RBI Governor: India Better Prepared for Federal Reserve Rate Hike
  • U.K Sinha, SEBI Chief: New Powers to Fast-track Prosecution, Refunds

India: Forex reserve

  • Foreign exchange reserves declined by $810.7 Mn to $318.579 Bn

International:

  • Deutsche Bank’s London branch was fined £4.7 Mn ($7.8 Mn) on Thursday by the U.K.’s Financial Conduct Authority for putting the wrong buy and sell markers on millions of transactions in regulatory reports

 

The World of Finance: Week of August 18th to August 24th 2014

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India: RBI

  • RBI notifies increased PPF deposit limit of Rs 1.5 lakh per year
  • RBI came out with a new regime for liquidity management to keep overnight rates close to the repo rate and entice banks to do more efficient liquidity management
  • RBI issued the draft of a charter comprising five basic customer rights – fair treatment, transparency, suitability, privacy, grievance redress and compensation
  • RBI prescribes tighter norms for NBFCs to lend against shares
  • RBI asks Uber to follow two-step card verification
  • RBI says that about 36% of the overall 4.1% bad assets in the system have been created by six sectors of the economy – infrastructure, metals, textiles, chemicals, engineering and mining

India: SEBI

  • SEBI is contemplating further alignment of its listing agreement format with the provisions of the new Companies Act for adopting best corporate governance practices and to make the corporate governance framework more effective
  • SEBI has in place a robust system for information sharing and coordination with foreign regulators to nab manipulators and fraudsters operating across boundaries

India: Finance Ministry

  • A forensic audit has been ordered by the Finance Ministry on Dena Bank and Oriental Bank of Commerce (OBC) following reports of misappropriation of funds to the tune of Rs.436 crore from fixed deposits received from customers
  • Finance Ministry has asked government departments to control use of paper and promote electronic communication
  • Finance ministry: India’s economy is on course to grow by around 5.8 percent in the fiscal year to March 2015

India: Banking Development

  • ICICI Bank, the country’s largest private sector bank, announced the launch of EMI (Equated Monthly Instalments) facility on debit cards to enable its customers to convert high value transactions into easy instalments

India: Banking Expansion

  • ICICI Bank plans to add more than 1.5 Mn accounts in FY15
  • Axis Bank to raise Rs 6,000 crore through bonds
  • Karur Vysya Bank raises Rs 625 crore through QIP

India: General banking

  • Corporation Bank has allegedly overlooked the Union finance ministry guidelines while nominating candidates for election of shareholders for its board
  • HDFC Bank launches ForexPlus card for Haj and Umrah pilgrims
  • United Bank of India (UBI), has set up a centralised retail hub at its headquarters in the city, for faster processing and clearance of retail loans
  • Canara Bank has kickstarted a mega savings bank (SB) account opening campaign in all its 5,182 branches across the country
  • HDFC Bank has sent a fresh petition to government on raising its foreign investment limit up to 74 percent

India: They said it

  • Arun Jaitley, Finance Minister: India to tighten up banking risk management

India: Frauds

  • Police have detected a gold loan fraud of nearly Rs 1.5 crore in Santragachi Co-operative Bank in which the bank supervisor and gold valuer were the alleged kingpins
  • A local court has directed the police to lodge an FIR against ICICI Bank CEO Chanda Kochhar and head of card operations Vinay Valse in connection with allegations of cheating and fraud over online shopping through credit card

India: Forex reserve

  • Forex reserves rise by USD 43.3 Mn to USD 319.39 Mn

International:

  • Bank of America will pay a $16.65 Bn fine to settle allegations that it knowingly sold toxic mortgages to investors.

 

The World of Finance: Week of August 04th to August 10th 2014

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India: RBI

  • RBI said the proposed Bharat Bill Payment System (BBPS) will have a single brand image providing convenience of ‘anytime anywhere’ payment to customers
  • RBI relaxes takeout financing norms for existing infrastructure loans
  • RBI revised guidelines for mortgage guarantee companies and said that guarantees provided by them may be treated as contingent liabilities, for which credit conversion factor would be 50%
  • RBI allows select crop loan relief in Andhra Pradesh and Telangana

India: SEBI

  • The Lok Sabha approved the Securities Laws (Amendment) Bill 2014 SEBI to crack down on ponzi schemes to prevent systematic financial swindle of gullible small depositors
  • SEBI approves establishing real estate investment trusts (REITs)

India: Finance Ministry

  • Finance Ministry: Examine inflation, growth while setting rate
  • The finance ministry has decided to issue directives to public sector banks (PSBs) to be more transparent in their dealings, cut the role of intermediaries, and fix accountability for actions at the top level
  • The finance ministry has been pulled up by the Comptroller & Auditor General (CAG) for making tax refunds of close to Rs 6,700 crore without Parliamentary authorization
  • Finance ministry has cleared 14 FDI proposals which will lead to inflow of Rs 1,528 crore into the country. The largest FDI proposal cleared is in pharma sector of Rs 600 crore by Laurus Labs Private

India: Banking Development

  • IndusInd Bank has launched a purely video-based channel connecting customers on mobiles and desktops to staff representatives for face-to-face communications
  • The MMTC PAMP, a joint venture between public sector MMTC and Swiss company PAMP, plans to set up 10 Gold purity verification centres in five metros in the next six months, to benefit Gold deposit scheme of banks
  • IndusInd Bank launched a co-branded credit card with Jet Airways, offering a range of benefits under the carrier’s loyalty programme

India: Banking Expansion

  • Odisha Government has prepared an action plan and asked banks to provide services in all 4,597 unbanked gram panchayats (GPs) of the state
  • Kotak Mahindra Bank to raise Rs 300 cr via infra bonds
  • Andhra Bank is planning to issue infrastructure bonds not just for institutional investors but also for retail investors
  • Bandhan Bank to set up fresh branch networks, to hire rural persons
  • HDFC Bank opened its branch at the Dubai International Financial Centre (DIFC)

India: General banking

  • The draft norms for forming small and payment banks have failed to enthuse urban cooperative banks (UCBs), as they find the scope of operation for niche banks too restrictive
    Western Union, the world’s largest money-transfer company, is planning to apply to the RBI for a payments bank licence
  • CBI begins to investigate IDBI Bank’s Rs 900 crore-loan to Kingfisher Airlines
  • Bharatiya Mahila Bank Ltd bagged the Core Banking System Initiative Award for the year 2014 at the Asian Banking and Finance – Retail Banking Awards 2014

India: They said it

  • Raghuram Rajan, Governor, RBI: RBI had started discussions with the government on a monetary policy framework that includes measures to control inflation

India: Frauds

  • S K Jain, suspended chairman and managing director (CMD) of Syndicate Bank, had allegedly prevented loans of over Rs 100 crore on Bhushan Steel and Prakash Industries from being declared as non-performing assets (NPAs)

India: Forex reserve

  • India’s foreign exchange reserves declined by $573.5 Mn to $319.99 Bn for the week ended Aug 1

International:

  • Bank of America has reached a $17 bn settlement with the Justice Department as a settlement in an investigation into the sale of toxic financial products in the run-up to the financial crisis
  • The World Bank’s Board of Executive Directors approved a US$500 mn operation to finance the First Programmatic Financial Sector Development Policy Loan in Ukraine to support a program of high-priority reform measures in the country’s banking sector