Category Archives: News

The World of Finance: Week of August 11th to August 17th 2014

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India: RBI

  • RBI to transfer Rs 52,679 cr surplus profit to Govt
  • RBI forms committee to monitor shadow banking
  • More than 34,000 firms under RBI scanner for doing business on lines of Non-Banking Financial Companies (NBFC) without authorisation

India: SEBI

  • The Government has asked SEBI to allow relaxations in rules for follow-on public offerings (FPOs)
  • SEBI started probe into 108 new cases related to manipulations in the securities laws and completed investigation in 120 matters during the last financial year
  • SEBI has put in place a new alert-generation system to detect possible mal practices by the traders and their group entities with significant exposure to any particular stock

India: Finance Ministry

  • The Finance Ministry has decided to take a relook at recent appointments of top-level public sector bank executives
  • Approve loans on time: finance ministry to banks
  • The finance ministry has ruled out the proposal for the appointment of a chief operating officer (COO) of the rank of deputy governor in RBI
  • Finance Ministry appoints Bimal Jalan as head of Expenditure Management Commission

India: Banking Development

  • HDFC Bank launches ForexPlus card for Haj, Umrah pilgrims
  • PayU makes digital payments possible with Pan card details & bank account information
  • State Bank of India and its five associate banks are planning to collectively install 4,300 cash recyclers, which will accept and dispense currency notes through replenishment and recycling of notes
  • Karnataka Bank has launched a facility to send donations to designated temples by calling IVR enabled toll-free numbers. Named as ‘i-Hundi’ facility

India: Banking Expansion

  • Canara Bank aims NPA recovery of Rs 6,500 crore this fiscal
  • Canara Bank has launched a mega savings bank (SB) account opening campaign in all its 5,182 branches across the country

India: General banking

  • Government asks banks to favorably respond to transfer request from female employees
  • Government may pay commission to banks in return for pushing financial inclusion drive
  • Only 3 free withdrawals from other ATMs, 5 from own in six metro centres — Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad
  • PSU banks may decide staff housing loan policy on their own
  • The Centre has asked all public sector banks to desist from the practice of directly recruiting officers from campuses in view of court strictures

India: They said it

  • Arun Jaitley: Finance Ministry Will Now Focus on Goods and Services Tax (GST)
  • Raghuram Rajan, Governor, RBI: Need strong insolvency law to prevent fraud
  • Raghuram Rajan: Merging weak PSU banks with strong ones is a recipe for disaster Raghuram Rajan, Governor, RBI: India needs bankruptcy code

India: Frauds

  • The Economic Offences Wing (EOW) of the Mumbai city crime branch have registered a case against a Class I government officer, bank officials and few others for allegedly duping two organizations to the tune of Rs 8.10 crore
  • A special CBI court has convicted five people for defrauding a nationalized bank of Rs 3.63 crore by taking a loan through five “fake” factories in Dehradun
  • An assistant manager with Corporation Bank got arrested for alleged involvement in the fraudulent withdrawal of Rs 12 lakhs from a customer’s account using forged cheques

India: Forex reserve

  • India’s foreign exchange reserves fell to $319.35 Bn as of August 8, compared with $319.99 Bn the week earlier

International:

  • China’s bad bank loans climbs to $112.84 Bn

The World of Finance: Week of July 28th to August 03rd 2014

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India: RBI

  • S S Mundra took charge as a deputy governor of the RBI. He will have three year term, and succeeds K.C. Chakrabarty who prematurely resigned from the position
  • The RBI has forwarded a proposal to the SEBI suggesting barring wilful defaulters of bank loans from raising funds through capital markets

India: SEBI

  • SEBI asks Pan card Clubs to stop collecting money from investors
  • SEBI has entered into pacts with 27 securities market regulators in the European Union (EU) for consultation, cooperation and exchange of information related to the supervision of Alternative Investment Fund Managers

India: Finance Ministry

  • Government aims to open 7.5 crore bank accounts by August 15, 2018
  • The Finance Ministry has constituted a panel to strengthen the debt recovery laws
  • The Ministry of Finance invites citizens to design a logo for them. The winner to get a cash prize of Rs 50,000
  • US Secretary of State John Kerry met Finance Minister Arun Jaitley
  • The finance ministry is proposing a national initiative to provide all households in the country with banking services, with particular focus to empower the weaker sections of the society
  • The Finance Ministry appoints SBICapital Markets to undertake a study on mergers and recapitalisation of state-owned banks. The report may be finalised within a month.

India: Banking Development

  • The Government is looking to expand mobile banking through all kinds of phones as part of its ambitious financial inclusion drive that will target 7.5 crore bank accounts by 2018
  • The number of free withdrawals from third-party ATMs may reduce from five a month to two for account holders in cities. The RBI has asked banks to continue with the existing facility for rural ATMs and provide them details of the number of machines that are there in villages
  • HDFC Bank has launched its ‘secure banking’ in Kerala aimed at creating customer awareness about safe banking practices

India: Banking Expansion

  • Central Bank of India sells 7.10 crore shares to LIC, raises Rs 581.61 cr
  • IDBI Bank plans to open 600 new branches this year

India: General banking

  • IDBI Bank said it is not considering any proposal to merge Kolkata-based United Bank of India with itself-
  • Bank of Baroda said it will be an “acquirer” as and when the government moves on with bank consolidation
  • Balaji temple deposits 1,800 kg gold offerings with SBI
  • Against the backdrop of the CBI arresting the CMD of Syndicate Bank for allegedly receiving ₹50 lakh as bribe from large borrowers, the All India Bank Employees Association has urged the government to immediately frame rules of conduct for top executives of public sector banks
  • Indian banks start to shift loan books from Singapore after facing aggressive scrutiny by Monetary Authority of Singapore
  • The Karnataka High Court directed Canara Bank to take over Amanath Co-operative Bank
  • Govt may merge Bharatiya Mahila Bank with another bank to be set up for women
  • Exim Bank entered into a partnership with a US government body to help and advice domestic companies interested in investing in India

India: They said it

  • Arun Jaitley: No plan to change management of rural credit funds
  • Arun Jaitley: PM to launch financial inclusion campaign
  • B Sriram, MD and Group Executive, SBI: Funds needed for SBI merger with subsidiaries

India: Frauds

  • Shimoga police arrested 18 staff members of the Shimoga District Central Cooperative Bank (SDCCB), including its president, for involving disbursal of gold loans by a cooperative bank
  • The CBI arrested eight Indian Overseas Bank employees holding key positions in a staff union for malpractice in the recruitment of sweepers and messengers at the bank’s headquarters in Chennai

India: Forex reserve

  • India’s forex reserves rose to $320.564 Bn. The reserves rose a $2.714 Bn in the week of July 25

International:

  • Portugal’s Central bank unveiled a plan to rescue the country’s second-largest lender by breaking up the bank and pumping in billions of euros of state money
  • The World Bank has revised the Purchasing Power Parity (PPP) index and the global poverty line is being revised from $1.25 a day at present.

The World of Finance: Week of July 21st to July 27th 2014

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India: RBI

  • RBI hikes FPI limit by $5 bn
  • RBI empowers individual banks to decide on a lending cap on loans for nonagricultural purposes against pledged gold
  • RBI reshuffles FII debt investment limits
  • RBI has cancelled registration certificate of Deutsche Securities India Pvt. Ltd (DSIPL) as it was carrying on the business of a non-banking financial institution
  • RBI imposes a total fine of INR 1.50 Cr on 12 banks including ICICI Bank, HDFC Bank and Axis Bank, for not following proper guidelines in advancing loans to the Deccan Chronicle group
  • RBI to identify six systemically important banks for the domestic financial markets, these banks will have higher capital than peers

India: SEBI

  • SEBI will issue final guidelines on newly proposed Real Estate Investment Trusts and Infrastructure Investment Trusts, as also revised norms for ESOPs by listed companies

India: Finance Ministry

  • India will propose a SAARC Development Bank at the regional grouping’s ministerial council in Bhutan
  • Finance Ministry to pitch for ratings upgrade with Standard & Poor (S&P), other agencies
  • Finance Ministry wants banks to be exempt from corporate-social responsibility (CSR) spend

India: Banking Developments

  • SBI, PNB, BoB & BoI preparing blueprint to identify takeover targets
  • Canara Bank launched Canara m-Wallet (for card-free and cashless transactions), Canara easy Cash (instant money transfer (IMT) service,) and Canara P-Serve (touch screen kiosks installed in e-lounges of Canara Bank)
  • The State Bank of Patiala has announced special initiative for the girl child, differently-abled persons and underprivileged sections of the society, will contribute ₹50 for each current account opened, ₹5 for each new savings account, 10 paise for each transaction on alternative channel and ₹2 for every new user of net banking and mobile banking

India: Banking Expansion

  • Bank of India raises Rs 1,250 crore via perpetual Tier-I bonds
  • Syndicate Bank has sought the government’s approval to raise Rs 1,100 crore from the market through Qualified Institutional Placement (QIP) route
  • United Bank of India to raise Rs 300 crore by selling shares to LIC
  • Indian Bank is set to raise Rs 2,500 crore this fiscal
  • State Bank of Patiala adds 25 branches to its network

India: General banking

  • The Government has set the ball rolling on merger of public sector banks, asks IDBI Bank and United Bank of India to prepare a consolidation plan
  • Exim Bank asks RBI to hike its leverage ratio by 50%, i.e to allow lending 15 times of its net-owned funds

India: They said it

  • Raghuram Rajan, Governor, RBI: India will open up its debt markets to short-term foreign investors in a measured way but wants to first build liquidity through long term foreign investments to withstand potential sharp volatilities
  • U K Sinha, Chairman, SEBI: If India is to grow at a pace matching the aspirations of the people, the dependence on bank finance should come down and the task of the Securities and Exchange Board of India (SEBI) is to educate industries as to how they can tap alternative funding
  • H R Khan, Deputy Governor, RBI:  Banks should be given some freedom to determine their financial inclusion strategies as making such obligations mandatory has its own distractions

India: Frauds

  • In Bhubaneswar, the Economic Offence Wing (EOW) of the Crime Branch arrested a man who availed Rs 1.08 crore loan by furnishing fake documents
  • The Indian Air Force has files FIR with the Cyber Cell of Delhi Police in connection with over 50 cases of fraudulent withdrawal of money from SBI accounts of its air force officers posted across India

India: Forex reserve

  • India’s foreign exchange reserves increased by $813.2 mn to $317.85 bn in the week ended July 18

International:

  • World Bank Group commits $ 18 bn loan to India in 3 years

The World of Finance: Week of July 14th to July 20th 2014

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India: RBI

  • RBI has initiated the process of granting differentiated bank licenses by issuing draft guidelines
  • RBI may allow telecom companies, NBFCs to set up banks
  • RBI eases reserve norms for banks issuing infra bonds
  • RBI: individuals can also use funds under Liberalised Remittances Scheme (LRS) to buy immovable property abroad
  • RBI Starts Scrutiny of Companies Suspected of Illegal Money Raising
  • RBI eases overseas investment rules in local companies

India: SEBI

  • The Government prepares a new bill to empower SEBI to take on fraudsters and defaulters
  • The number of attachment orders passed by SEBI with the help of an ordinance has crossed 1,300-mark
  • SEBI is set to issue fresh guidelines on the settlement guarantee fund (SGF)
  • SEBI issues draft norms for setting up infrastructure investment trusts to gain more investments

India: Finance Ministry

  • The Finance Ministry will float a draft cabinet note for Government’s stake dilution in SBI in August to enable it to raise capital for meeting Basel III norms
  • Finance Ministry sets up a committee consisting of officials from Central Board of Direct Taxes to suggest ways to reduce mounting disputes at various tax appellate forums
  • Finance ministry: ‘Achieving Rs 6.24 lakh crore in indirect taxes a challenge’

India: Banking Developments

  • ICICI Bank announced the launch of a special service called ‘Hello Canada’ for its Canadian Customers, offers opening a Canadian dollar account with ICICI Bank, Canada along with an NRI savings account with a branch in the country

India: Banking Expansion

  • Corporation Bank to open 200 ‘Corp Excel’ branches by next year-end

India: General banking

  • United Bank of India will soon embark upon process to ‘name and shame’ its wilful defaulters as part of its effort to recover dues

India: They said it

  • Arun Jaitley, Finance minister: State-run banks would require recapitalization worth Rs 2.4 lakh crore and this would be a top priority for the government
  • Chanda Kochhar, MD & CEO, ICICI Bank: Set to grow faster, but won’t sacrifice profitability

India: Frauds

  • CBI unearths a Rs 250 crore scam in Dena Bank, involving a branch manager and one more person. They took loan using forged documents on behalf of seven private companies who were customers of Dena Bank
  • In Chennai, Central Crime Branch arrested a senior official of a nationalized bank for withdrawing at least Rs 1.5 Cr from different accounts of Bank’s customers

India: Forex reserve

  • India’s foreign exchange reserves rose by $643.2Mn to $317.03Bn for the week ended July 11

International:

  • New BRICS bank setup in Brazil summit to be based in China
  • India will preside over BRICS’s operations for the first six years, followed by five-year terms for Brazil and then Russia
  • World Bank Group President Jim Yong Kim will meet Prime Minister Narendra Modi this week to understand his development priorities

The World of Finance: Week of July 07th to July 13th 2014

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India: RBI

  • RBI buys $19 bn in forward market to contain rupee volatility
  • RBI net buys $1.86Bn in spot forex market for 2nd consecutive month in May
  • RBI relaxes credit policy for the import of rough and polished diamonds
  • RBI received 76,061 complaints last fiscal ending March 31

India: SEBI

  • SEBI asks IRDA to make insurers disclose voting details
  • To safeguard Indian markets from terrorist financing risks, SEBI has issued fresh warnings to stock exchanges and other entities to caution them
  • SEBI asked Finance Ministry to introduce ‘safe harbour’ rules for foreign inflows

India: Finance Ministry

  • Finance Ministry: Insurance Bill May Be Taken Up in Current Session
  • Finance Minister promises more income tax relief if economy improves

India: Banking Expansion

  • Canara Bank expands its Gramodaya scheme in Delhi for identifying villages or slums for overall development
  • RBI Governor Raghuram Rajan launches Indian Bank’s mobile branches in Chennai

India: General banking

  • PM Narendra Modi to attend the sixth edition of the BRICS Summit which will mark the inauguration of a development bank and the creation of a $100 Bn Contingent Reserve Arrangement
  • The All India Bank Employees Association (AIBEA) has urged the Government to put forth an effective mechanism to deal with high volume defaulters
  • Haryana government has decided to start Rashtriya Shahri Aajivika Mission from the current financial year and has drawn up a target to open bank accounts of 50,000 poor people
  • Madras high court: Banks cannot fix 60% of marks as minimum required %age for extending education loan to students

India: Budget 2014

  • SBI, IFCI, SIDBI & Canara Bank have been vetted by Government as potential managers of the ambitious Rs 10,000-crore fund for startups announced in the budget The government has decided to reduce its stake in the public sector banks, enabling the lenders to raise equity from the public; though it will continue to hold majority stake
  • Government Proposes New Legislation to Check Chit Fund Frauds
  • Government favours consolidation of PSU banks
  • Government confident of achieving budgeted fiscal deficit, of 4.1% of GDP, in FY 2014

India: They said it

  • Raghuram Rajan, Governor, RBI: Centre, RBI Must Join Hands to fight Inflation
  • Chanda Kochhar, MD, ICICI Bank: ICICI Bank to list insurance units when valuations optimum
  • Chanda Kochhar, MD, ICICI Bank: Worst of NPA trouble for banking is over
  • George Alexander Muthoot, MD, Muthoot Group: More banking licences is a positive reform

India: Frauds

  • Chennai police arrested two former IT BPO employees for stealing £30,000 from a UK citizen’s bank account and transferring it to their friend’s bank account in the UK two years ago

India: Forex reserve

  • India’s foreign exchange reserves rose by $614.6 mn to $316.39 bn for the week ended July 4

International:

  • BNP Paribas, France’s largest bank, pleaded guilty Wednesday to a federal charge of violating US economic sanctions by processing transactions for clients in blacklisted countries

The World of Finance: Week of June 30th to July 06th 2014

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India: RBI

  • RBI may mandate minimum capital requirement of INR 200 Cr, against INR 5 Cr mandated in 1996
  • RBI planning to issue norms on differentiated banking this fiscal year
  • RBI relaxed norms for overseas investment by Indian corporates by raising their borrowing limit
  • RBI directs banks to oppose loan waiver proposals
  • RBI has undertaken an exercise to swap old gold in its reserves with a new one with a view to standardise the yellow metal stock
  • RBI has not yet approved YES Bank board appointments

India: SEBI

  • SEBI attachment orders cross 700-mark; Ordinance may be tweaked
  • SEBI opened a city office in Lucknow
  • SEBI: New rules on delivery instruction slips from October

India: Finance Ministry

  • Finance ministry looking at public banks’ consolidation

India: Banking Developments

  • SBI has introduced six digital stores in five cities across India, as part of the initiative called sbiINTOUCH
  • IDBI Bank introduced mobile banking service with facilities such as fund transfer, bill payments, visa money transfer, DTH/ mobile recharge and many more
  • IndusInd Bank launches online store for its customers, enabling them to redeem their reward points for purchase of merchandise from an online catalogue
  • Dena Bank ties up with insurer Universal Sompo for loan recovery

India: Banking Expansion

  • ICICI Bank to open China, South Africa branches this fiscal
  • Dena Bank has sought Rs 1,200 crore capital infusion from government in the current fiscal

India: General banking

  • Indian Bank revises interest rates on FCNR (B) deposits
  • The All India Bank Depositors’ Association (AIBDA) criticises the proposal by banks to remove the limit of five free transactions in a month at ATMs of other banks
  • Central Bank of India has been awarded first prize for the year 2012-13 by the Andhra Pradesh State-Level Bankers’ Committee for promoting the official language in the bank

India: They said it

  • Raghuram Rajan, Governor, RBI: No need to define poverty for financial inclusion
  • Raghuram Rajan, Governor, RBI: No equal treatment to good and bad borrowers
  • R Gandhi, Deputy Governor, RBI: RBI will issue the guidelines that will be used to grant on-tap and differentiated banking licenses later this year
  • K Raghu, President of the CA Institute:Government should review the existing bank branch audit norms
  • Chanda Kochhar, ICICI Bank: ICICI Bank will look at acquiring a bank if it finds one with the right size and right valuation, but is yet to find a takeover target that fits in its evaluation model

India: Frauds

  • In Nagpur, four people, including a bank’s branch manager, were arrested by police for a fraud of INR 7.65 lakh from a cooperative bank’s account by making altering a demand draft
  • The crime branch of the Pune police arrested a former lance naik Sandip Gurav for cheating a large number of youth from Sangli and Kolhapur districts to the tune of INR 1.14 Cr by promising them jobs at the Bombay Engineering Group & Centre (BEG) at Khadki
  • In Visakhapatnam, city police arrested three persons for submitting fake documents for a loan of INR 6.25 lakh

India: Forex reserve

  • India’s forex reserves surged USD 856.6 Mn to USD 315.778 Bn in the week to June 27

International:

  • The BRICS group of emerging giants are expected to sign a deal next week to open their own development bank by 2016
  • World Bank to invest $775 Mn in clean energy projects across India
  • India should avoid fiscal slippage: World Bank

The World of Finance: Week of June 23rd to June 29th 2014

the-world-of-finance-week-2014-July-03India: RBI

  • RBI flags stability risks for banks as asset quality still a concern
  • RBI: India and the US have agreed to implement a foreign tax compliance law and asked banks and financial institutions to register by this year-end to report accounts and assets held by US citizens
  • RBI tests Unique Identity (UID) – based mobile fund transfers
  • RBI fixes timelines for regulatory approvals
  • RBI revises asset classification norms for infrastructure firms
  • RBI permitted banks to appoint non-banking finance companies (NBFCs) which do not accept deposits as their business correspondents (BCs)

India: SEBI

  • SEBI has cautioned investors and the public against fraudulent calls being made in the name of regulatory officials to sell financial products and make promotional offers
  • SEBI: Analysts will need professional degree, NISM certificate

India: Finance Ministry

  • Finance Ministry has again written to the Swiss Government asking it to provide bank details and names of Indians with unaccounted money in its banks
  • Finance Ministry: Budget to focus only on growth revival
  • The Finance Ministry has proposed allowing retirement and gratuity funds to invest up to 30% of their money in the equity market

India: Banking Developments

  • ICICI Bank in association with Delhi Metro Rail Corporation (DMRC) today launched co-branded card with host of benefits for metro riders
  • Exim Bank to support financial management Chair at Lagos B-school

India: Banking Expansion

  • Shareholders of the Indian Overseas Bank approved its proposal to raise Rs 1,200 crore through qualified institutional placements (QIP)
  • Dairy firm Kwality Ltd has signed an agreement with Central Bank of India for extending financial assistance to dairy farmers
  • The Export Import Bank of India said it would raise up to US $ 3Bn from overseas market during the current fiscal to fund business growth
  • HDFC Bank seeks shareholders’ nod to raise Rs 10,000 Cr

India: General banking

  • Representatives of United Forum of Bank Unions met Finance Minister Arun Jaitley and sought his intervention for early settlement of wage revision negotiations
  • The Indian Banks’ Association (IBA) has suggested levying a fee on cash withdrawals from ATMs in cities by customers of other banks to help recover increasing costs
  • Axis Bank elevates Sanjeev Kumar Gupta as ED
  • AIBEA seeks hike in tax exemption on bank deposit interest to Rs 25K
  • Madhu Kapur filed an amended suit in the high court, challenging the resolutions passed at YES Bank’s annual general meeting (AGM) on June 14

India: They said it

  • Raghuram Rajan: Stable government will fortify financial sector
  • Vikram Limaye, CEO & MD, IDFC Bank: IDFC will offer quality banking at low cost
  • S R Bansal, CMD, Corporation Bank: Corporation Bank opened nearly 30% of its new branches in un-banked areas during 2013-14

India: Frauds

  • The Economic Offenses Wing of the Odisha Crime Branch nabbed 8 people including Manager of Baripada Branch of State Bank of India in a bank fraud case to the tune of Rs 1.17 crore

India: Forex reserve

  • India’s foreign exchange (forex) reserves rose by $1.38Bn to $314.92Bn for the week ended June 20

International:

  • China invites India to join Asian Infrastructure Investment Bank
  • Bulgaria’s central bank said there was a systematic attempt to destabilise the country through attacks on the banking system and vowed to protect citizens’ savings

The World of Finance: Week of June 16th to June 22nd 2014

the-world-of-finance-week-2013-June-25India: RBI

  • RBI allowed banks to engage in proprietary trading in the exchange-traded currency derivatives market
  • RBI: Residents, Non-Residents Can Carry up to Rs. 25,000 Abroad
  • RBI: Avoid excessive legal supervision on financial regulators
  • Andhra Pradesh to seek RBI nod for rescheduling farm loans
  • At least 350 small and medium diamond companies in Surat are facing severe financial problems with Indian banks strictly implementing the 90 days credit limit for overseas payment

India: SEBI

  • SEBI asks depository participants to share Foreign Portfolio Investor (FPI) info with banks
  • SEBI observes large rise in Anonymous, Pseudonymous complaints

India: Finance Ministry

  • FinMin: No fresh funds for PSU banks in budget

India: Banking Developments

  • The Akshaya centres in Malappuram will provide major banking services to rural people through its centres across the district. The services include cash depositing, cash transfer and account opening will be available from July
  • ICICI Bank launched its mobile banking application ‘iMobile’ for Windows phones
  • Bhartiya Mahila Bank has signed a MOU with Gujarat Chamber of Commerce and Industry. With the help of this bank is planning to assist the women entrepreneurs of the Gujarat.

India: Banking Expansion

  • Bank of India seeks Rs 2,000 crore fund infusion from Government
  • Eighteen bank, both state-run and private ones, have put Rs 21,060 crore worth of bad loans on the block in the first quarter of the financial year
  • United Bank of India to raise up to Rs 1,600 crore to grow lending
  • Syndicate Bank is planning to expand its overseas operations by opening branches in South Africa, the United Arab Emirates, Hong Kong, China and Thailand

India: General banking

  • SBI among 24 public sector banks ineligible for Rs 50,000 crore EPFO investments
  • UCO Bank seeks Rs 1,000 crore capital infusion from govt
  • Government asks banks to take action against top 50 loan defaulters
  • Fair trade regulator CCI has approved the proposed transfer of HSBC Oman’s banking business in India to Qatar-based Doha Bank, saying the deal will not adversely impact competition in the country
  • Ratnakar Bank plans IPO of up to $250 mn in 2015
  • Indian Bank to employ Tihar inmates at its prison branch
  • The Bombay High Court directed YES Bank to hand over all the documents pertaining to the bank’s communications with RBI and SEBI on challenging Madhu Kapur’s promoter status, to her counsel

India: They said it

  • FM Arun Jaitley on increase in passenger fares in Indian Railway: “India must decide whether it wants a world-class Railway or a ram shackled one
  • Raghuram Rajan on effects of Iraq’s crisis: “As far as the external front goes, we are in a much better position than we were last year,”
  • Usha Ananthasubramanian, CMD Bharatiya Mahila Bank: Only 26% Indian women have banking relations
  • Bank Employees Union: Meeting on wage settlement with IBA turned futile

India: Frauds

  • In Mumbai, the city crime branch discovered an online luxury vehicle racket and arrested four Nigerians, also 3 bank staffers are under scanner, who allegedly helped the gang open accounts using fake documents

India: Forex reserve

  • India’s Forex reserves rise to $313.54 bn as of June 13

International:

  • International Commercial Bank (ICB), which allowed non-customers to withdraw huge sums of money from a customer’s account, has been punished by an Accra Fast Track High Court for negligence
  • Bank of Spain warns of global risk with asset values at record highs

The World of Finance: Week of June 2nd to June 08th 2014

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India: RBI

  • RBI increased the cash reserve ratio (CRR) for non-scheduled urban co-operative banks (UCBs) by 100 basis points, or 1%, to 4%
  • RBI keeps Repo Rate, a key policy rate, unchanged at 8%

India: SEBI

  • SEBI widens probe into investment scams taking place via WhatsApp, SMSes
  • SEBI seeks uniform tax treatment for all pension funds
  • SEBI suggests Govt to that it should allow all PSUs to park their surplus cash in mutual funds

India: Finance Ministry

  • The finance ministry is examining various suggestions made by investment bankers to merge the country’s biggest state-run banks to create much stronger financial institutions
  • FM Arun Jaitley seeks strategy from RBI in case the US withdraws Quantitative Easing earlier than expected
  • The finance ministry reopened the debate over merger and acquisition of smaller public sector banks by their larger peers, asking nine bank chiefs to “think about the issue”

India: Banking Developments

  • By December 2014, Canara Bank aims to transform at least 600 branches to 5-star category by upgrading the branches to meet international standards
  • IndusInd Bank has launched a new 24X7 ‘video branch’. A video branch, will allow face-to-face interaction with a bank manager for conducting a banking transaction without visiting a branch
  • In Kerala, onus of proposed debt swap scheme likely to be on bank managers “

India: Banking Expansion

  • IDBI Bank to raise Rs 4000 crore from QIP/FPO
  • Dhanlaxmi Bank Ltd is raising around Rs 200 crore ($33.9 Mn) through a preferential allotment
  • Bharat Co-operative Bank to set up new branches

India: General banking

  • ICICI Bank overtakes HDFC Bank as top private bank employer
  • The United Bank of India (UBI) is betting on fund infusion from the LIC and the Centre to meet capital base under Basel III guidelines
  • Exim Bank to promote international trade, has sought the government’s permission to retain its earnings instead of paying dividend
  • A consortium of five state-run banks has sanctioned Rs 1,157 crore to Gujarat International Finance Tec-City (GIFT City), a project introduced in 2007 by the then CM Mr.Modi
  • Uday Kotak of Kotak Mahindra Bank named EY World Entrepreneur Of The Year 2014

India: They said it

  • NS Vishwanathan, Executive Director, RBI: Madhavpura bank collapse is behind us
  • Arundhati Bhattacharya, Chairman, SBI: Andhra Govt’s farm loan waiver plan negative for banks

India: Frauds

  • In Ujjain, Student dupes bank manager of Rs 25 lakh

India: Forex reserve

  • India’s foreign exchange reserves fell by $273.8 Mn in the week ended May 30 to $312.38 billion

International:

  • China central bank cuts banks’ reserve requirement ratio by 50 bps
  • Israel’s Bank Leumi to pay $289 Mn in US tax probe deal
  • World Bank to Spend 350 Bn Shillings, or USD 4Bn, on Kenya in 5-Year Strategy

The World of Finance: Week of April 28th to May 04th 2014

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India: RBI

  • RBI, scrapping its age-old practice of CAMELS (capital adequacy, asset quality, management, earnings, liquidity, and system & control) inspection, has switched 30 banks to risk-based supervision, indicating what could be the beginning of the regulator’s micro management of banks
  • RBI and Government are looking at a proposal to create a Financial Resolution Authority backed by law, which will permit temporary nationalization of failed institutions
  • RBI refuses overseas bond sale with bank guarantees
  • RBI panel says do not force banks to become insurance brokers

India: SEBI

  • SEBI upset on proposal of extending trading time on poll result day
  • SEBI can now seek call data records, says Bombay High Court

India: Finance Ministry 

  • Finance Ministry asks PSU banks to improve Current Account and Savings Account level and to focus on recovery
  • In a major setback for SEBI, Finance Ministry questions the legitimacy of the SRO (Self Regulatory Organisation) selection process by which the Institute of Mutual Fund Intermediaries (IMFI) was selected as IMFI is promoted by the Association of Mutual Funds in India (AMFI)

India: Banking Development

  • Export-Import Bank of India (Exim Bank) plans to set up a project development company in Africa, with the participation of State Bank of India, IL&FS and African Development Bank
  • The All-India Bank Officers’ Confederation demands five-day working week to be implemented in the banking industry
  • IDBI promotes A L Bongirwar, G.M. Yadwadkar, K P Nair, Mythili Balasubramanian, N S Venkatesh and P Sitaram, from Chief General Managers to executive directors

India: Banking Expansion

  • Bandhan Financial Services plans to begin its banking journey next year with around 600 branches
  • Canara Bank plans to open 1,250 branches and recruit over 7,000 persons this fiscal, also gets Government approval for capital infusion of INR 500 Cr

India: General banking

  • The Government seeks relaxation in the RBI’s borrowing limit for Exim Bank to allow the Institution to play a bigger role in lending to high value export-oriented projects
  • Corporation Bank has transferred an amount of INR 7.70 Mn  in respect of 13 unclaimed Dividend accounts up to financial year 2005-06 to IEPF Account maintained by GoI
  • Gramin Bank workers threaten strike over merger
  • The annual blood donation drive organized by HDFC Bank in December 2013 has been recognized by the Guinness Book of World Record as the largest effort of its kind across the globe
  • Public sector banks, which delayed their qualified institutional placement (QIP) issues last year due to weak market conditions, are still not confident of the market response and say that they will wait for another few months to do so
  • A clutch of public sector banks, including SBI, is trying to sell about Rs 2,000 crore of bad loans to asset reconstruction companies
  • The Madras High Court has ordered an interim stay on a recent circular that took away leave travel concession facility to bank officers for foreign travels
  • The district consumer disputes redressal forum, Chandigarh, directed the State Bank of Bikaner and Jaipur to pay INR 50,000 as compensation to a city-based couple for harassing them by losing the original documents of their mortgaged property while securing loan

India: They said it

  • Yashwant Sinha, Former finance minister: Rajan should continue to head central bank
  • Arundhati Bhattacharya, Chairman, SBI on merger with associate Banks: There are certain HR practices adopted by them that are different; so we need to sort of align those before we look at the merger element

India: Frauds

  • In Surat, two persons were arrested on Friday in two different cases of cheating with Bank of India. The accused had taken loans from the bank to purchase embroidery machines. They failed to repay the loan and also misplaced the machines, which were hypothecated to Bank of India
  • In Nagpur, a former manager of Bhandara District Co-operative Bank, Suresh Thakre and accountants Arvind Shende and Devanand Gopale were arrested by Sonegaon police on Friday for their alleged involvement in a fraud of Rs 28.08 lakhs

India: Forex reserve

  • Forex reserves rise to $309.91Bn as on April 25

International:

  • Russia’s Central Bank revokes licenses of two Moscow-based banking organizations, First Republican Bank and Atlas Bank