The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Friday, March 2, 2012
Usha Thorat steps down from ONGC board
National conference at NIBM
Pune : National Institute of Bank Management’s (NIBM) national level two-day conference on emerging macro environment, regulatory changes and bank competitiveness begins from March 3 for banks, regulators and academicians. RBI Deputy Governor, Subir Gokarn, will be one of the keynote speakers.
DNA
Financial Inclusion – A major challenge for the Banking Industry
 |
| Shri. M.V. Tanksale, CMD, Central Bank of India (Third from the left) is seen being felicitated by Mrs Shyamala Gopinath, Former Dy.Governor. Shri. Kaushal Sampat, President & CEO, D&B Information Services India Pvt Ltd(extreme left) & Shri R.K. Dubey, ED, Central bank of India(extreme right) were also present on the occasion |
Central Bank Of India's Chairman & Managing Director Shri M.V.Tanksale was felicitated at Dun & Bradstreet Information Services India Pvt Ltd's event for release of their publication 'India's Leading BFSI Companies 2011' on 28th February 2012. This was on the occasion of Central Bank of India completing 100 years (Centenary year) of banking service to our nation. Speaking on the occasion Mr. M.V.Tanksale said the major challenges before the Banking Industry are financial Inclusion, skill development & maintenance of asset quality of the Banks. Retirement of large number of skilled staff is also a challenge before Public sector banks. However, the Banks are gearing up to meet the challenges & convert them to opportunities for growth.
The Road to Financial Inclusion in India: Almost There, but Still A Long Way to Go
...... Based on the numbers released by the RBI, it is easy to view the first phase of the initiative as a success. Millions of Indians have gained access to financial services in the last few years. “What could not be done in the last 50 years has been done in the last six,” commented Usha Thorat, a retired RBI Deputy Governor, when speaking about the initiative’s impressive results. Indeed, the FPI has allowed many of the poorest in India to open bank accounts by easing the regulatory environment for banks to open branches in rural areas. However, most of this expansion has come through “business correspondents” (BCs) and not because of an increase in the number of banks operating in rural areas.........
Read...............On microfinance
I would like to appreciate The Hindu for bringing to light the link between borrower-suicides and field practices of SKS Microfinance (“Small loans add up to lethal debts,” Feb. 26). But many microfinance institutions (MFIs) have focussed on community development and social initiatives while delivering access to financial services in a fair and responsible manner. MFIs have taken many social initiatives — such as running schools and tuition centres for borrowers' children, providing vocational training for income generation activities and conducting health camps for borrowers. The article seems to generalise the faulty practices of SKS Microfinance for the entire microfinance sector. While the microfinance sector, just as any other, might have its share of bad apples, it is unfair to blame the sector as well as borrowers based on the actions of one organisation. The SKS scenario will not recur because the RBI has notified clear guidelines for the sector. Microfinance may expect to see stable growth that benefits all stakeholders.
- M.B. Nirmal, Founder, ExNoRa International, Chennai (HBL)
ATM outsourcing by banks catching on
Public sector banks are increasingly looking at outsourcing the operation and maintenance of their automated teller machines (ATMs). As of now, tenders have been notified for over 40,000 ATMs in various States to outsource ATMs by a consortium of public sector banks. .....................
Read...................
Read...................
RBI revises supervisory framework for urban co-operative banks
The Reserve Bank of India (RBI) on Thursday revised the supervisory action framework for urban co-operative banks, saying in case of financial woes, banks must be the first to take corrective steps…………..
Read................RBI for more Tier-I capital adequacy than Basel III norms
The Reserve Bank of India (RBI) on Thursday indicated it would prescribe higher capital adequacy norms than those proposed under the Basel III framework. This would help sustain the advantage of healthy financial profiles that Indian banks currently enjoy. At the Risk and Compliance Summit on Thursday, Deepak Singhal, Chief General Manager, RBI, said, “A requirement of one per cent above the floor set under Basel III would not impact Indian banks. RBI would not like our banks to be seen as laggards.” The central bank, in its draft guidelines issued in December, had proposed that the common equity Tier-I capital should be at least 5.5 per cent of risk weighted assets (RWAs). Basel III norms prescribe minimum common equity of 4.5 per cent.................
Read................Govt asks companies to lobby for rate cut
......... So far, it were companies that lobbied with the government. But roles seem to have reversed in recent months. With the Reserve Bank of India (RBI) unrelenting on demands for a reduction in interest rates, finance ministry officials have asked corporate houses and industry chambers to lobby with the central bank......
Read.......
Farm loan write-offs: One more thing for banks to worry about?
……….According to a Macquarie report, agri-loans contributed 44 percent to the incremental non-performing loans last year. They have made banks extremely wary of lending to the sector — credit to agriculture climbed by 6.3 percent in January 2012, down from 21.5 percent the previous year, according to Reserve Bank of India data. The banks that have the largest share of agri-loans in their portfolios and, therefore, more vulnerable are State Bank of India (15 percent), Canara Bank, PNB, Union Bank and Bank of Baroda (14 percent each), and Bank of India (13 percent).…………
Government clears harmonised list; identifies sectors that should get infrastructure status
..... The RBI, perhaps, has the widest definition of infrastructure that includes construction of educational institutions and hospitals. The income-tax law has its own definition of infrastructure. The new master list will serve as a guidepost for all the agencies responsible for supporting infrastructure in various ways. However, each agency will be free draw its own list of sub-sectors out of the master list, which it intends to support, with adequate justification for inclusion or exclusion. A special institutional mechanism will decide on the inclusion and exclusion of a subsectors after an "appropriate period" of time, the government said. The panel would be chaired by secretary, department of economic affairs and have as members member-secretary, Planning Commission, secretary, department of revenue, chief economic adviser, one representative each of RBI, SEBI, IRDA, PFRDA and the secretary of the concerned administrative ministry and departments.
Read.............Budget 2012: Finance ministry set to hike agriculture lending target despite sharp rise in NPAs
….RBI guidelines require banks to lend 40% of their adjusted net credit to the priority sector, which includes agriculture, small-scale industries and other weaker sections. If banks fail to meet the priority sector lending target they can buy loans of regional rural banks or micro-finance institutions.
Read.....................
Tight money policy for balancing growth & inflation: RBI
............”We are not raising interest rates to bring growth down. We are raising interest rates to bring growth down to a level that is consistent with a steady rate of inflation. "And if the potential (growth) is 8.5 per cent, then we are in recession and clearly there is an argument for a reversal, but then the inflation number should reflect that," RBI Deputy Governor Subir Gokarn told reporters..........
Read............
There may not be big fall in inflation till March: C Rangarajan
.......... Speaking on 'dynamics of inflation' at the 48th annual conference of Indian Econometric Society at Pondicherry University, Rangarajan said the significant decline in headline inflation has been primarily due to strong decrease in food articles, particularly of vegetables...........
Read......................
The growth gamble
The wake-up call could not have been timed better. A fortnight ahead of the Budget and the mid-quarter review of monetary policy by the Reserve Bank of India comes the news of a sharp fall in economic growth in the third quarter of the current fiscal to 6.1 per cent.....................
Read.....................
Read.....................
Economists differ on course of RBI policy action
Moderation in the third quarter GDP growth has left economists to wonder what policy action the Reserve Bank would resort to during its monetary policy review later this month. ...........
Read......................
Read......................
Daily cash deficit in banking system touches record Rs.1.92 tn
Banks rushed to borrow a record Rs.1.92 trillion from the the Reserve Bank of India (RBI) on Thursday as the cash deficit in the banking system widened. Liquidity has dried up mainly because of RBI’s dollar sales from the market to support the local currency that was losing its value fast against the dollar. RBI, between September and December, sold $12.5 billion (around Rs.61,500 crore today) in the market to stop a rapid depreciation of the rupee. Besides, it also sold close to $3 billion in the forward markets…..
Read..............
Read..............
Odds of RBI hiking rates up post poor Q3 GDP: HSBC Global
In an interview to CNBC-TV18, Leif Eskesen, chief economist - India & ASEAN, HSBC Global Research says the third quarter GDP number has left a lot to be desired. The likelihood that the Reserve Bank of India will increase interest rates at the March credit policy meeting has now gone up...................
Read...........
Huh! $5 bn FII money pumped in markets this Feb?
.... market analysts attributed strong FII inflows to signs of a reversal in RBI’s monetary policy and the subsequent impact of improved liquidity position. They expect the positive trend to continue further, given that the liquidity conditions remain strong.......
Read...............
Chaudhuri's crown of thorns
.......... But his problems were escalated by the under provisioning for employee gratuity and retirement benefits in the first three quarters. This led to a jump in the tax burden in the fourth quarter, when a big chunk of provisioning was done at one go. In addition, provisioning for teaser loans also had to be made. Though SBI sought to amortise this burden over time, RBI refused to let it do so..........
Read..........................
Troubled Kingfisher puts bankers in a bind
....The largest lender to the airline, State Bank of India (SBI), should certainly be thinking about this possibility, being one of the promoters of the Asset Reconstruction Company of India Limited (ARCIL).However, asset reconstruction in India has not really taken off as an industry due to a host of factors. ARCIL has had problems of its own with an RBI inspection forcing a restatement of its accounts last year due to inappropriate accounting policies........
Read................
Read................
Oriental Bank of Commerce sees 19% loan growth
State-owned Oriental Bank of Commerce (OBC) expects a loan growth rate of 19% this fiscal. "As against the industry growth of the 16% we will be growing at 19% during the current fiscal," OBC's Chairman and Managing Director SL Bansal said. Bansal, who took charge of CMD today, said the bank expects business growth of 20% during the current fiscal.
Read more.............
Bank of Maharashtra - Change in Directorate
Bank of Maharashtra has informed BSE that the Government of India, Ministry of Finance, Department of Financial Services in consultation with the Reserve Bank of India vide their Notification dated March 01, 2012, has appointed Shri.C.V.R.Rajendran General Manager Corporation Bank, as Executive Director of the Bank with effect from the date of his taking over charge of the post till April 30, 2015, i.e. the date of his superannuation or until further orders whichever is earlier.
Moneycontrol
SEBI to debut on networking sites
................RBI is also considering a presence on social networking platforms like Twitter. Late last year, RBI conducted a survey to know whether it should make its web interface more interactive with features like discussion forums, live chats and blogs on its website, and have a Twitter presence for information dissemination..............
Read...................
Read...................
Kotak Mahindra Bank implements Infosys' Finacle CBS platform
…………….."Banking in this era is technology-driven. To enhance our customer experience, we needed an advanced core banking platform like Finacle, to help us meet the dynamic needs of our customers,"…………
Read..............
Subscribe to:
Posts (Atom)