Mangalore : Karnataka Bank will be celebrating its 88th Founders' Day at 4.30 pm on Saturday February 18 at its head office near Mahaveera Circle here. The bank, which was established with the objective of supporting agriculturists and such other rural folks in order to bring about the development of villages, still has most of its branches in rural and semi urban areas. The bank has several loan schemes to provide loans to its rural clients at competitive rates for the convenience of agriculturists and is thus fulfilling the dreams and vision of its founding fathers, said P Jayarama Bhat, managing director of the bank. The founders' day will have a lecture by Usha Thorat, former deputy governor, Reserve Bank of India and director, Centre for Advanced Research and Learning. She will enlighten the audience about the current scenario in the international as well as Indian banking sector. Ananthakrishna, chaiman of the bank will preside. The programme will be followed by a musical concert by Sangeet Samrat Chitravina N Ravikiran. P Jayarama Bhat has invited students, customers and shareholders of the bank as well as music lovers among the general public to attend the programme.
Saturday, February 18, 2012
Praise & tips on Montek lips
....The RBI governor prescribed the state government to switch its emphasis from traditional agriculture sector to industries and services. “You (state) cannot improve your CD ratio only through agricultural development. You must go beyond agriculture to industries and services to improve the CD ratio.”.......
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Subbarao calls for roadmap on deficit
....“Fiscal deficit is one of key drivers of inflation. It is very important that fiscal deficit has to be brought down to help control inflation. For fiscal consolidation has to be embarked upon, we need a credible commitment from the government”,......
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Bank as partner in growth - K.C.Chakrabarty
........Banks have a vital role to play in addressing several problems faced by the sector. Banks have to view themselves not just as providers of credit but as partners in the growth of these enterprises, by hand-holding first generation entrepreneurs. In financial management, MSEs do not have the size to support the competence they need. Operational skills, including accounting and finance, business planning, marketing and human resource management, etc. can often pose a challenge and necessitate support for the MSE borrowers.........
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RBI to watch Budget, other events to formulate policies
…."The inflation and interest rate cycles have peaked and have to come down and for that, the RBI will look at events like the Budget (2012-13), international crude oil prices and other variable factors to calibrate its policies," Subbarao said at the 'Global Summit on Changing Bihar'……
Read........Fiscal situation, a cause for concern, says RBI panel
...The level of inflation expectations, according to some members, was high and the RBI should continue to keep monetary policy tight (at the present level). It was necessary to bring down inflation significantly from the present level, even if it meant lower growth for the next few years. ..........
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RBI needs to walk the talk and release funds for banks to lend
………………..The cash crunch facing banks is for a variety of reasons, including the fact that RBI has sucked out about Rs 60,000 crore from the system by selling dollars in the market over the past four months. Simultaneously, oil prices have hardened and, therefore, oil and fertiliser importers are purchasing foreign currency in a big way in their anxiety to build up stocks. At the same time, the government continues to regularly issue bonds to keep up with its enhanced borrowing programme. As long as the cash crunch persists, there can be no hope of interest rates coming down.
Read.............. On policy actions, RBI guv goes with the minority
It seems Reserve Bank of India’s (RBI) governor D Subbarao favours the minority when it comes to monetary policy actions. Last month, Subbarao heeded the lone voice in the technical advisory committee (TAC) on monetary policy, that sought a cut of 50 basis points in the cash reserve ratio. Other members of the panel had recommended that the rates be kept unchanged, while some sought a cut of 25 basis points.........
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Policy panel voted for rate cut; Subbarao opted for status quo
.....Reserve Bank of India (RBI) Governor D Subbarao overruled the advice of a majority of external members of its Technical Advisory Committee (TAC) by keeping the repo rate steady at the monetary policy review in January............
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Online Complaints: Cyberscream
....Various regulators, such as IRDA (Insurance Regulatory and Development Authority), SEBI (Securities and Exchange Board of India), RBI (Reserve Bank of India) and the NSE (National Stock Exchange), allow you to file complaints online.......
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Pakistanis may be able to invest in India soon
.....All foreign exchange transactions in India are governed by FEMA, which came into force in 2000. This is a civil legislation and the Reserve Bank of India can make changes to allow Pakistani investments after taking approval from Finance ministry......................
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Slowing investment may impact GDP growth in FY13: RBI panel
............ RBI will put out a formal projection on India's economic growth for 2012-13 in the Annual Policy Statement in April. However, RBI's baseline scenario is that the economy will exhibit a modest recovery next year, with growth being slightly higher than during this fiscal year.……….
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Clueless, cops ask customers to be wary of ATM frauds
.....The National Payments Corporation of India, an umbrella institution under the RBI managing all ATMs in the country, has identified five ATMs as compromised in the city. Banks though are indulging in pointing as in most of the cases reported the withdrawals have been made from ATMs of banks where the affected people had no accounts.....
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Banks will continue with their schedule on setting up of ATMs
The Reserve Bank of India has draft guidelines for the setting up of White Label ATMs (WLAs). If the plan is implemented successfully then non-banking entities could set up ATM networks for the disposal of the customers.The banks, however will not withdraw from installing their ATMs. The continuous increase in the number of ATMs in the country and with that, the exponential growth in transactions is evident to the importance of ATMs. ATMs have proved to be an important factor for the banks to connect with their customers. The move from RBI of allowing WLAs has been appreciated by the banks but they are also concerned about convenience of the customers. The setting up of WLAs can lead to increase in the efficiency of the ATMs as well as it will also help in lowering of installation charges of an ATM. The Managing Director of Prizm Payment Services, Mr. Loney Antony said, "It was imperative that the RBI permit white label ATMs. It was only a matter of time. The main concern for the RBI was the regulatory framework, but with several banks outsourcing ATM management, white label ATMs are a natural extension."
Rupee TimesBorrowing limit breather for Bengal
........On Wednesday, the Reserve Bank of India had said seven state governments had planned to raise Rs 5,600 crore through SDL auctions slated for the coming Tuesday. West Bengal was not among the seven. Today, in a revised list, Karnataka and West Bengal have joined the queue of state governments planning to raise loans through SDL……..
Read...........New RBI home loan norms a dampener
……..…The RBI's move is an attempt to introduce an additional lever to ensure that the buyer does not overstate the realizable value of the property. This is an important metric for banks in the event that the borrower defaults. But developers say such riders will choke the industry's growth. "We are totally directionless. Does the RBI want to promote housing or kill the industry? RBI's latest move will persuade customers to defer home purchases,"……..
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Short-term rates harden amid tight liquidity
….............Liquidity has been in deficit of around Rs 1.2 lakh crore daily, despite a 50-bp (basis point) cut in the cash reserve ratio by the RBI last month. The central bank has also been infusing liquidity of about Rs 8000-10,000 crore every week via bond purchases in open market operations. However, this is being offset by higher market borrowings of Rs 12,000-14,000 crore every week by the government. Traders say the RBI’s forex intervention in the forwards market in the November-December period may also be contributing to the tightness in rupee liquidity now. According to RBI data, the central bank intervened to the tune of $1.37 billion in December and $1.6 billion in November 2011.
Read..............Time to step up investor confidence
....What is more worrying is the composition of the fiscal deficit; it is being financed by huge borrowings that are expected to amount to Rs 5,10,000 crore this fiscal, against the budgeted Rs 4,17,128 crore. The government borrows to subsidise consumption which provides fuel for pressures from inflation and depresses investment. The RBI can reduce interest rates to prop up investments only if inflation remains under control..........
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Informal corporate rescue mechanism
.... This led to institutionalisation of informal rescue through debt restructuring via the Corporate Debt Restructuring (CDR) mechanism established by the Reserve Bank of India (RBI), in 2001. This platform was largely on the lines of the London principles and has been used quite extensively in recent times. Various Circulars have been issued by the Reserve Bank of India with regard to the CDR procedure……
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Haryana suspends giving old age pension through public sector banks
.... “We were expecting 20 lakh transactions per month, but the banks were able to do only 3 lakh transactions per month. So, we have suspended the disbursement of pension by the banks till they set up the required infrastructure,”……
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