Microfinance Institutions Network (MFIN) CEO Alok Prasad will meet the Reserve Bank of India officials and the Malegam Committee today to discuss the bank lending issues. MFIN wants resumption of bank lending to MFIs, which were badly hit due to the freeze on lending. Banks have stopped lending to all MFIs across India.
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Wednesday, December 22, 2010
Anand Sinha as Deputy Governor - Final decision soon
With a bit delay the proposal to elevate RBI’s executive director Anand Sinha as one of the Deputy Governors of the central bank has started moving ahead for the final decision. Finance ministry sources said Sinha’s name after being accorded vigilance clearance had now been sent to appointment committee on Cabinet (ACC) for its approval. “After ACC’s approval, it will go to Prime minister office PMO for the final nod,’’ said a senior official. Though Sinha was selected to succeed Usha Thorat who retired as a Deputy Governor, RBI almost one and half month back, the concerned file hadn’t moved fast because of some technical reasons giving rise to speculation whether Sinha still remained in the race. However, the finance ministry while clarifying that Sinha’s appointment letter will soon be issued, said the ministry is yet to initiate step to find a successor to another Deputy Governor Shyamala Gopinath, who will be retiring in June 2011.
Banks plan consortium loans to MFIs
Worried over microfinance institutions’ future profitability, banks want to diversify their risks by lending to the sector in a consortium. Leading bankers are meeting Reserve Bank of India Deputy Governor Shyamala Gopinath on Wednesday to make a case for consortium lending. Banks have discussed the proposal informally with the finance ministry. “Several issues, including debt restructuring of microfinance institutions, are to be discussed,” said a senior finance ministry official involved in the discussions. “RBI has so far supported the stance on consortium lending.”
No threat to asset quality of banks: Rangarajan
There is no threat to the asset quality of Indian banks in the immediate future due to huge exposure to crisis-hit sectors such as microfinance, aviation, real estate and telecom, Chairman of Economic Advisory Council to the Prime Minister, C Rangarajan said on Tuesday. He said presently the asset quality is well within limits and under norms set by the RBI.
Jalan panel report sparks off hectic lobbying
Stakeholders’ meeting sees sharp exchanges over proposal to disallow the public listing of exchanges. Vicious lobbying, including open letters, advertisements and personal attacks, is underway among different stakeholders in the capital market over the recommendations of the Bimal Jalan committee on ownership and governance of market institutions such as stock exchanges. The Confederation of Indian Industry (CII), an industry lobby, on Tuesday organized a meeting between former Reserve Bank of India (RBI) governor Jalan, two of his committee members, and stakeholders in the capital market to exchange views. The only stakeholder not represented was the retail investor. The meeting was marked by some sharp exchanges between stakeholders and committee members over a recommendation to disallow the public listing of exchanges, a personal attack by one of the stakeholders on Jalan, which resulted in an intervention from the moderator with a request to restrict conversation to issues and not personalities and veiled suggestions that the report did not reflect the majority view of the 29 stakeholders who deposed before it. The committee was constituted by the Securities and Exchange Board of India (Sebi) to review the ownership structure and governance of market infrastructure institutions (MIIs) such as stock exchanges.
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