On the directions of the Reserve Bank of India (RBI), Mumbai Regional office, State Bank of India, Lead Bank for Goa, has convened a meeting of the bankers in Goa on Friday to discuss the demand for restructuring\ rescheduling of the loans of the mining stakeholders facing financial crisis. Sources in the Lead Bank, which is coordinating the meeting, told The Hindu on Wednesday that J. B. Bhoria, Regional Director, RBI, Mumbai Region, will chair the meeting. Sources, however, said the meeting was restricted to discuss the issue of the barge loans alone........
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.
Thursday, November 15, 2012
ET summit to focus on solutions for poor
....The topics that will be covered in this session of the ET Financial Inclusion are: Regulations that Protect the Poor – Perspectives on the recent RBI regulations and Draft MFI Bill; Designing Insurance to meet the needs of the poor; SHGs, No Frill accounts and Beyond: The Government’s role in Financial Inclusion; and Alternative MFI Financing: Diversifying beyond Bank Funding......
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Banks should abide by RBI guidelines on recovery: FCIK
Srinagar, Nov 14: Valley’s apex industrial body, the Federation Chamber of Industries Kashmir (FCIK) today urged banks operating in the state to strictly abide by the Reserve Bank of India guidelines on loan recovery. .......
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My View on "Can RBI end India’s cronyism?........"
CBI should not probe business decisions- PSBs tell the Finance Minister......
We have been hearing this argument for a long time. It is not advisable to accept this argument especially in the context of the recent justifiably stepped up campaign against rampant corruption in Government and Public Sector enterprises. What is needed are adequate safeguards against ill informed proceedings against top executives of public sector banks which are already provided by the Fraud Board constituted in the RBI to which cases are referred to by the Finance Ministry. The Board scrutinises the papers, calls for such additional evidence as is required and then gives its recommendations to the Finance Ministry. When the Finance Ministry gives its clearance to the CBI, on the basis of the report of the Fraud Board, then only the Preliminary Enquiry (P.E) is converted into a regular case by the CBI. This procedure has been facilitated by the "Single Directive" in terms of which cases against officials in the rank of Joint Secretary and above require clearance from the Government.
The proceedings of the Board in the past have given ample indication where top executives of banks have sanctioned or renewed loans in a fraudulent manner either for illegal gratification or on account of pressure either from political masters or from other sources. The whole process had been done in some of these cases in such a clever manner giving an impression that the recommendation for sanction has been made from the First level officer in the hierarchy whereas the real picture was that it was done at the instance of verbal orders of the top executives !!
- A.Chandramouliswaran (via e-mail)
Govt banks line up 2,000 cr bad loan sale
.....All cash deals of stressed asset deals had dried up in the last few years following introduction of stricter norms by Reserve Bank of India. According to the norms, banks while selling non-performing assets have to work out the net present value of the estimated cash flow associated with the realisable value of the available securities net of the cost of realisation........
Lower inflation not enough for a Dec move by RBI: Barclays
......"While a positive surprise, we think today's print should not be seen as a resounding signal that inflationary pressures are dissipating in India," Barclays said in a research note, adding that "it may not be a game-changer for the RBI's policy guidance".......
There is need to exercise caution on SLR status for corporate bonds
.....After all, the present surplus SLR securities with the banking system alone can generate over Rs 5 lakh crore through open market operations (outright purchase of government bonds by RBI) or through the overnight cash support mechanism through the repurchase window. In implementing the present proposal, the government would only help transfer corporate risks to banks and eventually to itself. In such an eventuality, the government would also effectively loosen its fiscal strings, contradicting its proffered pursuit of fiscal prudence......
The real problem for India is D Subbarao: Shankar Sharma
........I am saying irrespective of that, the markets are going to go up. If this had not happened, the market would still be up because the macro numbers for India have bottomed out. The real problem for India, I have said this many times, is Subbarao. If we fix the mindset of his, you fix a large part of the problem. I do not know whether it is fixable or not. He has now said that in January we will see some action on the rate front, which I find a little bit strange. After all, why would you want to broadcast that out to the world well ahead of the actual event?
Monetary easing by stealth
By claiming CRR is a less powerful monetary instrument, the RBI laid the foundation of its anti-growth image today
The Reserve Bank of India (RBI) Governor has received his fair share of plaudits for resisting what the markets read to be pressure from North Block to cut the repo rate in the October monetary policy. The endorsement seems legitimate to some. If indeed Governor Subbarao was perceived to have kowtowed to the finance minister, this could have damaged the central bank’s credibility in the long term. The bigger question, however, is: can defending the central bank’s autonomy be an end in itself? Or should the governor have acted differently in the interest of the economy and cut the policy rate instead, raised eyebrows over autonomy and independence be damned?.......
Loan loss cover for govt banks dip amid rising NPA
.....Most PSBs have reported PCR less than 70 per cent during the second quarter this year. Earlier, Reserve Bank of India (RBI) had mandated banks to have a minimum 70 per cent PCR but withdrew the norm in September 2011 as asset quality pressure on banks started taking a toll of their profitability..........
RBI needs NIB support
.........With the government now looking a bit tired—the much-promised National Investment Board which was to jumpstart clearances for stalled projects still hasn’t come up—FIIs flows halved in October. The government’s inability to hold its end of the bargain is going to make RBI’s life tougher.
Banks' brazenness
....The present mess in large public sector banks (PSBs) is of their own making. In the wake of the global financial crisis, the Reserve Bank of India (RBI) took a lenient view on non-performing asset (NPA) provisioning, and introduced revised restructuring norms to help affected borrowers. Banks took these as a bonanza. Despite large PSBs making profits, they were unwilling to provide for NPAs......
Several UCBs fall under RBI scalp
The start of the month of November saw many urban cooperative banks coming under the scalp of Reserve Bank of India for one reason or the other.........
‘Cut interest rates’
The Federation of Karnataka Chambers of Commerce and Industry has urged the Reserve Bank of India (RBI) to consider downward revision in the interest rates.........
No rate cut needed
The discouraging data on industrial production and exports have once again become an excuse for entrepreneurs to ask for an interest rate cut. That affects lending rates if banks are dependent on the RBI for funds. This is not the case now. ...
India’s Economy: Limping Along
.......Hence the pressure on the RBI to cut interest rates is heavy, and is increasing as data continues to disappoint. The RBI is maintaining that inflation is its primary concern and is thus not moving interest rates to counter the growth slide, a move which might also weaken the currency and thus exacerbate the trade deficit in the near term. In short, the RBI’s key interest rate is probably going to stay unchanged, as pressure to cut from the slowing economy cancels out inflationary pressure to increase it.
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‘Govt has taken revolutionary steps to boost cooperative sector’
.Highlighting the importance of Cooperative Week, the Minister said that the cooperative movement was launched in India about hundred years ago and the year 2012 has been declared as International Year of Cooperatives. The objective of the cooperative is to help the farmers and poor sections of the society, women folk through cooperative mode. The cooperative has progressed substantially worldwide and millions of people are availing benefits through the network of cooperative movement. The State has also registered satisfactory progress in this sector, particularly during the past three years. He said still lot has to be done in this sector and hoped that the objective will be achieved with the cooperation of all stakeholders.......
Despite threat of bad loans, steady growth to keep Indian banking sector afloat
........The fear about the Indian banking system is almost similar, thanks to the scores of defaults and restructuring of loans to prevent a loan from getting classified as bad. Are the bad loans in the Indian banking system so bad that it can wreck the economy? If history is any indicator, they are not............
FM to meet heads of PSU banks on Thursday
.....The high-profile meeting will be held in the backdrop of the half-yearly review of monetary policy by the Reserve Bank of India (RBI) wherein central bank left benchmark interest rate unchanged on concern of inflation........
My new book will talk about SKS experience: Vikram Akula
....Financial inclusion obviously is my life’s work and I will always be passionate about it. The time is not now for me to come back but perhaps in the future, in the right opportunity in the right context, of course, I am very passionate about the subject......
Micro-finance investors now eye NBFCs
........"There is an increasing amount of private equity coming to NBFCs and we
expect risk capital interest to grow even further. Private equity knows
that there is a huge under-served market, and NBFCs can access the same
in a more efficient manner," said Ramakrishna Nishtala, co-founder and chief operating officer, Vistaar. Recent regulations by RBI have also brought greater confidence to investors.......
Do Stockguru investors have a case against SEBI and RBI?
Stockguru, a chain-money scheme, openly flouted various SEBI rules. Moneylife pointed this out in December 2010 and again in April 2011 but SEBI, under both former chairman CB Bhave and current chairman UK Sinha, and RBI took no action. Aggrieved investors can possibly file a case of gross regulatory lapse against SEBI and RBI.........
Read - Moneylife
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