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, April 18, 2013
Who will step into Subbarao's shoes?
Designing an optimal RBI…........
Read..........
IMF has scope of improvement for tailoring advice to economies: Subbarao
................“There has been a lot said and written about how the IMF economists must be more open minded, less ideological, be bold enough to question orthodoxies and brave enough to differ from established wisdom. One important condition for this to happen is that IMF economists should talk to people beyond governments and policy institutions,”................
Subbarao criticizes IMF over prediction of financial crisis
...Advice by the Fund should stem from a complete understanding of not only macroeconomic, but also social and political settings of a country. Advice should be founded on hard evidence and driven by facts. Ideology should not play any role in analysis of facts,” Subbarao said at a seminar on strengthening IMF surveillance at the IMF spring meetings seminar in Washington on Tuesday. “The IMF must be open to criticism and advice.”........
Subba attacks obsolete IMF set-up
.........Subbarao trashed most of the principles on which the IMF had stood firm before the crisis and highlighted the new reality. "Pre-crisis, consensus was that every country should move towards a fully free capital account. The only questions were about timing and sequencing. Now we are not so sure. Pre-crisis consensus was that capital controls are bad always and everywhere. Now we are not so sure." ...........
Dividend payout ratio of banks: Is there need for a change?
..........The finance ministry should have consulted the RBI, if at all it was necessary to modify the dividend payout ratio of PSBs for whatever reasons, to avoid the predicament being faced by the public sector banks now ..........
Read - Moneylife
Govt banks may switch from gross salary to CTC for pay hike
As employees of state-owned banks bargain hard for a steep hike in wages, the finance ministry has asked Indian Banks' Association (IBA) to consider moving towards a cost-to-company (CTC) structure in the next pay settlement to reflect their actual remuneration including all perks and incentives. “If public sector banks have to run like a professional company then why not behave like one and move to CTC concept. We have given this suggestion to IBA,” .........
A complete HR overhaul
..... With new technology and competition from foreign and private sector banks, what PSBs need is a major generational leap on the human resources (HR) front. These banks must attract large numbers of young graduates and post-graduates from tier-I and tier-II management colleges through well-structured campus placements. .....
Pay PSU bankers more
..... One practical solution would be to recruit professionals from the private sector to fill in the vacancies. But the remuneration package comes in their way of tapping the pool of talent available.......
Cobrapost Tale has a Sting: RBI
The employees at ICICI Bank, HDFC Bank and Axis Bank may have violated know-your-customer norms and helped clients evade taxes, the Reserve Bank of India’s investigation has found. “Banks opened current account based on power of attorney without KYC,” ET Now reported citing people familiar with the report. “Banks gave cash advances for gold purchases”, which is a violation of norms, it said...............
Read - ET
Read - ET
Cobrapost expose: Banking secretary to meet RBI official
Financial Services Secretary Rajiv Takru is likely to meet senior RBI officials on Thursday to decide about future course of action with regard to the allegation of money laundering by some staff of ICICI Bank, HDFC Bank and Axis Bank...........
Banker to the street: South Africa's FirstRand Bank sets up ATM in Dharavi slum
..........Essentially an investment bank, FirstRand has opened about 13,000 accounts. It has taken the Business Correspondent route rather than opening a branch. The ATM in Dharavi, that opened last month, has recorded about 2,000 transactions a month. In fact, the customer behaviour is an eyeopener in terms of choices. The fact that people are trading and living in a slum does not deter them from aspiring for a better quality of life............
Financial Reform
Much of the research on banking, the financial crisis and regulatory reform takes for granted that banks and the financial system must be as vulnerable to risks as they are, so that the failure of one bank can pull down the entire financial system. Some academic research suggests that this fragility might actually be a necessary by-product of the benefits banks provide to the economy. However, this work is based on assumptions under which fragility is indeed unavoidable, without assessing ..........Read - ET
Watch the video clip about the book
How banks dress books to meet loan, deposit growth targets
The loan growth numbers for most banks in FY13, despite being lower than their initial targets, would not have been as bad as the market was fearing, given the weakness in the economy. But a decent chunk of that growth could well be 'inorganic' in nature. Towards the end of a financial year seasoned bank chairpersons are known to use a few tricks of the trade to achieve RBI projected loan and deposit growth in the last seven days before their book closures. Call it window dressing or whatever, this is the traditional practice..........
‘Need to develop a fixed rate housing loan product of longer maturity’
RBI: Corp sales growth at lowest level post crisis
......Interestingly, the net profit of companies rose 23 per cent in Q3, on the back of similar growth in the previous quarter. During the third quarter of 2011-12, the net profit of these companies dipped 31.3 per cent. "Year-on-year growth rates of Ebitda (operating earnings) and net profits remained positive for a consecutive quarter, although they were lower than the previous quarter," RBI said..............
Banks step up vigil on gold loans
.............The finance ministry has also swung into action following the fall in gold prices. In an interview to Bloomberg, Rajiv Takru, secretary for financial services, said banks would review loans backed by gold and call for more collateral as the price of the metal falls. The central bank moved immediately to call on banks to review lending when gold prices began falling, Takru said.
Tumbling global gold price eats into RBI’s forex reserves
...........The value of RBI’s gold reserves—557.75 tonnes—declined from $34.08 billion (around Rs.1.84 trillion today) in September 2011, when the international gold price peaked at $1,900.23 per ounce (28.35 gram), to $24.17 billion early this week, when the yellow metal tumbled to its 26-month low of $1,347.95 per ounce. Economists and analysts are playing down the impact of this on the Indian central bank’s reserves as the decline in value is notional................
Gold loses its glitter
.....The RBI’s decision to strengthen the official yellow metal reserves to 560 tonnes had come amid growing interest of central banks across the world in diversifying their holdings to assets other than the dollar. China, too, has increased its gold holdings from 600 tonnes to 1,050 tonnes in the last few years. The reason: gold in the vault puts money a little further out of circulation because it is slightly more cumbersome to liquidate than, say, the euro........
Gold prices fall: Lock in your money in fixed deposits now
............"Banks may cut 25 basis points in the interest rates payable on short term fixed deposits that mature in less than one year and 50 basis points in interest rates payable on long term fixed deposits with maturities between one to three years,"...........
Time to know our onions
............The cheer could travel to the average consumer, if the RBI, sprinkles water on these little green shoots by slashing interest rates next month. The RBI uses monetary tools to stymie demand and cool prices. Rising inflation — which had forced the central bank to keep interest rates high — has hurt consumption demand, a strong edifice of the India growth story........
Maha Coop Act referred to joint select committee
....Maharashtra government will promulgate fresh ordinance on April 21 to amend the Maharashtra Co-operative Societies Act, 1960, which envisages transparency and professionalism in the functioning of cooperative societies. It also aims to bring in democratic control in cooperative societies in the state..........
SEBI opens office in Lucknow
............“The Board has established its local office at Lucknow under the administrative control of its Northern Regional Office at New Delhi,” the regulator said in its notification issued today. The new office would cater to regulatory aspects of investor protection, financial as well as investor education and such other functions as may be assigned from time to time............
SBI cries foul as cash lured by funds slow savings
......India’s biggest lender State Bank of India (SBI) says unequal rules are allowing money-market funds to lure savers away, extending the slowest growth in nation’s bank deposits in a decade and frustrating policy efforts to lower funding costs. “The biggest challenge for the banking system is to fend off competition from non-banks such as mutual funds, debt funds, liquid mutual funds and tax-free bond funds, who are all having an unfair advantage,” ..........
Nabard lending crosses Rs1 trillion in FY13
....Nabard’s lending grew 32% from Rs 81,000 crore in the previous year mainly due to increased support to cooperative banks and regional rural banks...........
Read - Mint
Read - Mint
Centre opposes PIL against SEBI chief
.....The Centre, on Wednesday, opposed in the Supreme Court a plea seeking removal of SEBI Chairman U. K. Sinha on grounds of alleged irregularities in his appointment, saying the charges against him were false as he recently acted against corporates, including Sahara......
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