Saturday, September 10, 2011

RBI’s Enam rider makes life difficult for Axis Bank

Axis Bank is trading lower by over 4.70 percent after The ET reported that the Reserve Bank of India (RBI) has made it clear to the bank that the proposed acquisition of Enam’s broking and investment banking business has to be an all-cash deal. The Rs 2,067-crore deal has been pending with the RBI since November 2010. Axis Bank closed at Rs 1,096.3 at 1.45 p.m on Friday. Analysts say it would be difficult for Axis Bank to go through the deal if it is made to pay cash for the transaction. The reason being that the same set of valuation can not be applied for a cash down deal and a share swap deal. Axis Bank was to swap 5.7 shares of its own for every one share of Enam. DNA had quoted analysts as saying it would be better if the deal falls through since the deal is expensive for Axis Bank. RBI had put some conditions to the deal — the two participants, Axis Bank and Enam, must complete the transaction within six months. The caveat is expected to have a negative tax impact on Axis. Earlier, the central bank raised questions of giving Vallabh Bhansali a board seat in Axis Bank. RBI had earlier rejected the first proposal submitted to it in which Enam’s promoters were given shares of Axis Bank, while its business was transferred to a subsidiary. Axis Bank then submitted a new proposal whereby the business of Enam would ‘momentarily’ be acquired by the bank which will hold the assets and later transfer these to a subsidiary. This too is unlikely to be cleared, according to news report, as it will set a precedent for future deals. The report also quotes a senior bank official as saying the board will meet to consider a revised plan. Till such time, Axis Bank is likely to remain volatile.
Firstpost

Friday, September 9, 2011

A banker's cook-book

Kitchen experiments with the RBI Deputy Governor, who never misses an opportunity to rustle up his favourite Mangalorean cuisine. At the RBI, his “core function” as an economist is the monetary policy and the research departments; with supporting functions including communications. But at home, Subir Gokarn, RBI's Deputy Governor, often plays a very different, and perhaps more interesting, role… experimenting in the kitchen with Mangalorean cuisine.
With great verve and passion he goes into the intricacies of the northern Konkan food having “thinner, more sour and a little hotter gravy, compared to the southern dishes with thicker gravies, more garlic. Each has its own charm and I am fond of both.” Gokarn's romance with cooking goes back several decades. After completing his Masters in Economics in Delhi, as a 21-year-old he shared a barsati with two others in the Capital, where he worked for a government organisation. “It was a great time of life… we had a kitchen and decided to experiment in winter.” They harnessed a kerosene stove, a pressure cooker and some utensils, played around with different recipes, and soon Gokarn was hooked enough to peep into the kitchens of other friends and pay close attention to what they were making and how. He started with the basics such as rice, dhal, sabzi and a simple chicken curry. After a couple of years he went for his Ph.D in Economics to the US, where cooking became a part of survival. Here too he shared an apartment with a group of people who liked experimenting with food. “We'd get together, drink beer, cook food… and cooking became a way of life.” Gokarn completed his doctorate in 1989, worked for a year in the US and returned home in 1990 to join the Indira Gandhi Institute of Development and Research, where he was a faculty member for eight years. Cooking remained an intrinsic part of his life until his recent position in the RBI, which involves a lot of travel.
So what kind of cooking did he do?
“We had a maid who would cook the routine/basic stuff; but anything exotic and beyond the basic my wife Jyotsana and I would make,” he says, adding that they'd even “jazz up the dhals”. Gokarn is a Chitrapur Saraswat Brahmin and his region, now in Karnataka, was once a part of the Bombay presidency.

Two distinct cuisines

Elaborating on the specialities of this regional cuisine, he says throughout the Konkan coast — from Kerala up to Maharashtra — there are some common elements. “Essentially coconut is used as the base for most of the curries, with the souring agent being tamarind, kokum or vinegar. The Goan Christian cuisine used vinegar, so there is the combination of the sweet and sour in our food. Actually this is home food for me, and then we improvised around it; it never struck me as cuisine.”  But when he returned from the US and started looking around for more information on the food of his region, “I realised this was a separate cuisine.” What helped was the translation into English of a recipe book originally in Marathi. He got hold of a copy, improvised some more and never looked back! On the kind of dishes that distinguish this cuisine, Gokarn says, “If you go to seafood restaurants in Mumbai there are two generic cuisines there. One is Malvani (the standard cuisine of the Konkan region of Maharashtra, Goa, and some northern parts of West Karnataka), which is best represented by the Gajalee chain of restaurants. This is more the north coast cuisine; then there is the Trishna Mahesh Lunch Home, which serves Mangalorean cuisine, which has its own distinct taste.”

Kitchen tiffs!

Gokarn says his cuisine is somewhere “in between, so I experiment between the two.” During his long years in Delhi, he and Jyotsana often whipped up a meal for family or other get-togethers.  But were there any quarrels/arguments in the kitchen, which are common whenever a husband-wife team takes over the kitchen at the same time? “Well, not necessarily in the kitchen,” is his tongue-in-cheek reply. “Of course, she would always complain, and still does, that I do the dishes that get the most attention… the more dramatic part of the menu… and she does most of the work and doesn't get any attention! So I tell her: ‘Look, I go and buy the meat, clean it up, etc… anyway, that's an ongoing scrap!” Not one to give up easily, I persist. Does his wife complain about him messing up the kitchen, because most men are messy cooks? Does he clean the kitchen after cooking?
Gokarn's reply: “My wife complains, yes, but that's about many things! Messing is only one of them. But I do clean up; and of course the maid is there too, so that support system is there.”  Now in Mumbai with the RBI, and having to travel on work, he still cooks, but less frequently. “I eat out much more now, and when my daughter, who is in a residential school in Pune, comes home, we like to eat out.” And, he cooks for his daughter too. “She likes the dhal fry I make, which is a basic dhal with a dhaba kind of seasoning that she likes. She likes chicken curry and kheema with pao. But my cooking is very eclectic and I always improvise as and when the whim strikes. I enjoy it a lot.” His favourite restaurants are those serving oriental food; “in Delhi my favourite oriental restaurant was the Oriental Octopus. In Mumbai there are several places, but recently I have started going to Asia Seven. Then there is the Malvani food, which I prefer to Mangalorean, but I eat at Trishna quite a lot.”

Jazz and Blues

Gokarn's other passion is music — jazz and Blues. “I developed a great fondness for both when I was in the US and started to collect both on a systematic basis.” Interested in both the history and evolution of these music genres, when he worked as a faculty in the University, he had six credit hours of free tuition for anything he fancied. “So I signed up for a course in the anthropology department, on the anthropology of American music.  In terms of learning that was my most enjoyable experience as it had no professional significance; it was pure enjoyment.”  He returned from the US with an enormous collection of CDs and cassettes, but “never had the context to listen to it, and this music went into the background.”  Till, of course, he got a lucky break — his daughter upgrading her iPod and passing on the old one to him! He quickly transferred some 50 CDs on his iPod; “now I am back into Blues. On the morning flight (to attend a BL Club event in Chennai) I was on a Blues trip!” Now of course, with the RBI giving him an iPad, as a “work facility”, Gokarn also hopes to put his music onto it. For a little while perhaps, it'll be still be his laptop, along with the iPad, for work…. and more music and games, such as bowling, on the iPad!
Beyond banking hours
Reading: Time and mind space for any serious reading is very little now. Of course I look through books… but don't finish most that I start. If I am to finish, I'd do thrillers. I love Jeffrey Archer and Frederick Forsyth; find them very relaxing, especially at airports and on flights. I like business histories; a lot of my thinking on organisations, evolution and strategy, challenges — apart from my own corporate observations and experiences — is shaped by such reading.
Fitness: I used to be a regular gym person in Delhi. It fitted in beautifully with my routine for seven years. It was basic cardio in the gym and, in the winters, walks in the Lodi gardens. But now, because of the travel, even though I have a gym just below my apartment, my frequency has gone down dramatically.
Stress: Am worried about my erratic fitness schedule. It's something I need to watch because this is a high-stress job. You are on your toes, have to give full attention pretty much through the day; there are very few moments when you can let go. My previous job was not as stressful; I had a lot of time on my own because I was focused on writing. Here it is interaction almost right through the day and a whole range of issues to think about.
Religious views: None at all; I have no religious affiliation.
Dream for himself: To be as effective and ethical as I can be.
Ethics: Very important; it is an absolutely critical part of any judgement or decision I take. It's sad that the moral science classes we grew up with have disappeared from our syllabus. In a way, those are similar to what business schools teach through case studies.
Widening divide between rich and poor: I am most worried about absence of employment opportunities for large numbers coming into the workforce every year. Only a few can afford a business or higher education. We have to deal with this to give them not only skills but also some upward mobility in terms of income. We need to skill people very differently. The current educational framework is a sort of one size fits all, where you go through 10-12 years of school and are expected to learn something. I am not very sure that's relevant any more. Inequality will always exist, but we need to address some fundamental barriers and constraints. People who aspire should get the means to meet those aspirations. We need safety nets to protect people from complete deprivation.
HBL 

RBI holds coordination committee meeting

JAMMU, Sept 7: The meeting of the 16th state level co-ordination committee (SLCC) for Jammu and Kashmir was held today at Reserve Bank of India, Srinagar.  K.K. Saraf, Regional Director J & K, Reserve Bank of India presided over the meeting. The meeting was attended by Yoginder Kaul, DIG (Crime) M.K. Bagri, Registrar of Companies, Raj Kumar Kaul, Special Secretary, Law Department, Ranjan Kumar Barun, Regional Manager, National Housing Bank, New Delhi and H.S. Khitaulia, DGM, RBI.  Saraf informed that the objective of the meeting is to strengthen the coordination and cooperation among various agencies namely Reserve Bank of India, Registrar of Companies, State Government, Police Department, ICAI, NHB and others for taking action against delinquent Non-Banking Financial Companies and Unincorporated Bodies so that only healthy entities function in the State. Steps taken by the Reserve Bank to protect the interest of depositors and borrowers were elaborated.
Early Times

Allow inspection of files to dispose off lengthy RTI queries quickly avoid backlog says CIC

His concern was echoed by VS Das, executive director, Reserve Bank of India, who also serves as the appellate authority for the institution. "We receive unreasonably long queries that tax the resources and time of a busy organisation. Still, we can say that out of the 18,000 applications we have received till date, only 16% have gone for appeals," Mr Das said......

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Banks should enhance risk-assessment skills, says Andhra Bank CMD

Hyderabad : The skills required to asses risks in banks need to be enhanced significantly, according to Mr R. Ramachandran, Chairman and Managing Director, Andhra Bank. Speaking at the inaugural session of a two-day international conference on corporate governance in the banking sector organised by the Institute of Public Enterprise (IPE) here on Thursday, he said the risk management skills among the senior management were limited. Sound risk management would go a long way in ensuring good corporate governance, Mr Ramachandran said. Corporate governance should be based on proper regulation and transparency not only at the board-level but also in the branches, he added. Ms Rose Mary Sebastian, General Manager (Banking Supervision), Reserve Bank of India, said the apex bank had recently put in place the ‘fit and proper' criteria for appointment of nominated directors on the boards of banks.  Prof R. K. Mishra, Director, IPE, said inflation control and financial stability were essential for growth and corporate governance in banks was important in this regard.
HBL

TEA plea to RBI

The Tirupur Exporters Association (TEA) has requested the Reserve Bank of India (RBI) to advise banks to sanction a moratorium on repayment of term loan and its interest, among other relief measures, for the Tirupur knitwear exporters to help them bail out of the operational crisis experienced. TEA president A Sakthivel, in a representation to the RBI Governor D. Subbarao, pointed out that the predominant small and medium scale exporting units in the cluster had been reeling under severe financial problems as demands in the United States and European markets shrunk due to the present recessional trend. Besides this, the industry is yet to recover completely from the crisis experienced following the closure of dyeing units. According to Mr. Sakthivel, the financial troubles have been worsening every day and chances of loans taken by more number of units getting categorised as NPA (non performing assests) at the end of the second quarter of the current financial year are more.  In the scenario, the exporters wanted the banks to restructure the loans without any additional provisions apart from the demand for the moratorium.
HBL 

Teaser loans are legitimate products: RBI Deputy Governor

Reserve Bank Deputy Governor K C Chakrabarty on Tuesday said the central bank has not banned the controversial teaser rates, but said banks may have to make additional provisioning for such loans. "We have not banned teaser rates. It is a legitimate product," Chakrabarty told reporters after interacting with the students of Mumbai's St Xavier's College. His comments came a day after mortgage major HDFC launched a special home loan product giving borrowers the choice to opt for fixed interest rate for the first 3 to 5 years after which borrowers would be shifted to floating rate. Late last month, private sector lender ICICI Bank had also launched a similar product. When asked specifically if the recent product launches will attract additional provisioning, he said, "If the rule is there, it will attract (additional provisioning)." Industry observers have been pointing out that these products have some characteristics that are similar to teaser home loan schemes, launched by the State Bank in late 2009 and aped by others. "(A product) which is neither fixed nor floating is called teasing. So, those interest rates which are a mixture of these two is called teasing," Chakrabarty explained while interacting with the students. Fearing an asset bubble build-up and to contain the impact, the Reserve Bank had increased the provisioning for such assets five-fold to 2 percent. Following this, a slew of lenders, including the country's largest lender State Bank of India, had withdrawn their products which fall under this category.
Business Today

Corp Bank's heritage museum, a treasure of financial knowledge

Showcasing old coins to the present day financial inclusion initiatives of the Government will be the focus area for improving the founder's house of Corporation Bank in Udupi.....

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Dial a code and get balance enquiry

In a move that could save banks crores of rupees every year, the National Payment Corporation of India (NPCI) has mooted a system where non-financial transactions like balance enquiry could be moved out of bank ATMs to mobile phones.

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Digital Inclusion Day

A regulatory system for NBFCs

An RBI panel tries to find reasonable ground between the extremes of regulatory overkill and dangerous neglect

A working group headed by Usha Thorat, a former Deputy Governor of the Reserve Bank of India (RBI), has submitted a report on issues pertaining to non-banking financial companies (NBFCs). If the report is accepted, it will change some fundamentals. The group continues the Y.V. Reddy style of looking at regulation: Be extremely conservative and careful with size, be liberal and encouraging small efforts that do not pose a systemic risk. The report is an illustration of this style. There are two questions that need to be asked. Does the report address the issue of systemic risk? Will its recommendations create a barrier for newer and smaller institutions in continuing operations without regulatory overload?

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Customers in view, finally

It is heartening to note that Indian banking industry is finally waking up to customer service

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RBI tells Axis Bank that the proposed acquisition of Enam’s broking & investment banking businesses has to be an all-cash deal

MUMBAI: The Reserve Bank of India has told private lender Axis Bank that the proposed acquisition of Enam's broking and investment banking businesses has to be an all-cash deal. The regulator's stand on the matter, which was spelt out to ETby a person familiar with the RBI's thinking, puts a question mark on the ambitious deal that was structured as an all-stock transaction. TheRs 2,067-crore deal, pending since last November, was jointly announced by Axis and Enam, an influential Dalal Street brokerage. Under the original structure, submitted to the RBI a year ago, Axis had proposed it would issue stock to Enam's founders while a subsidiary of the bank would take over the businesses. But the central bank had turned down the proposal on the grounds the entity that would issue the shares was different from the one that would own the new businesses. Following this, Axis submitted a new proposal to salvage the deal. According to the revised plan, Axis would issue shares, acquire the businesses from Enam and "momentarily" hold the assets before transferring them to a subsidiary. But, this proposal, too, has not gone down well with the RBI, the person familiar with the regulator's thinking said. This is because it does not want such a deal to become a precedent for smaller banks trying to buy brokerages by offering stock to brokers. Enam officials declined comment while a spokesperson for Axis Bank said "there is no change in the deal structure and it continues to be an all-stock deal for which in-principle approval of RBI has been received". The Axis official also said "there is no truth in the speculation that the bank has been advised to carry out an all-cash transaction". Another senior bank official said the board was meeting on September 16 to consider a revised plan, and the revision did not envisage an all-cash deal. The RBI spokesperson did not respond to ET's email query.
ET

Salaries no more the reason for not getting talent

The RBI has made a point that growth with an elevated inflation is not the new normal and it is focusing on 3-4% inflation in the medium term. So, it clearly gives an indication how the RBI is looking at interest rates.......

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Checks and balances for pvt banks

...For years I have been advocating that corporates should be allowed to enter the banking field with strong safeguards. It is gratifying to note that the present draft guidelines enable corporates to apply. The case for corporates being given entry in to banking is that they would be able to set up strong banks. ...

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A leap in the dark?

....I am intrigued by the continued absence of any reference to offshore banking units in RBI reports. .....

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RBI still hawkish, despite global gloom

The D Subbarao-led central bank remains bent on fighting domestic inflation despite weakening global conditions, officials with direct knowledge of policymaking said, a week before it is widely expected to raise interest rates once again. The Reserve Bank of India (RBI), which has lifted rates 11 times in 18 months, makes its mid-quarter review on September 16. Though senior bank officials are hawkish, RBI Governor Duvvuri Subbarao will not make a final decision before the release of August inflation data on Sept. 14, the sources said. We still have high food and non-food manufacturing inflation, good credit growth to industry and growth is also quite good according to our view, said an official with direct knowledge of the matter. So, domestic factors will continue to be the key driver for policy framing, the official said. RBI officials have kept up the hawkish talk in recent weeks even as fears mount that western economies are slipping back into recession, although the central bank is widely believed to be nearing the end of its tightening cycle as its earlier actions exact a toll on demand in Asia\'s third-largest economy. Also, the finance ministry is putting pressure on Subbarao, whose term was recently extended for two years, not to continue tightening for much longer. Finance Minister Pranab Mukherjee this week was quoted as saying that he hoped the RBI will not raise rates further. Senior finance ministry officials said continued steady rate increases may not have the desired effect of cooling inflation without overly disrupting growth. Yes, inflation still remains the big concern but I see that peaking off at the end of the year, but growth will also come into sharp focus, one of the officials told Reuters.
Last week's jump in food inflation, high non-food manufacturing inflation, the knock-on impact of a June fuel price increase and resilient credit growth all point to a need for continued vigilance, several RBI officials said, declining to be identified given the sensitivity of the matter. Headline inflation for July was 9.22 percent, much above the RBI\'s end-March 2012 projection of 7 percent. India\'s food price index rose 10.05 percent in the year to Aug. 20, its highest in nearly six months, while the fuel price index was up 12.55 percent. Inflation has not yet peaked. To some extent the global developments will have some impact on the external sector. We are cautiously hawkish, the first RBI official said. While advanced economies are struggling to ward off stagnation, central banks in emerging markets are confronted with high inflation and cooling growth. Brazil recently surprised with a rate cut despite still-high inflation, and market speculation that China may ease lending conditions for some small and medium sized companies has added to expectations the tightening cycle will soon end in emerging markets. Brazil cut rates after raising them sharply, so they had room to cut. We are anyway behind the curve, said another senior RBI official. So where is the room to even pause unless the global recovery concerns bring down commodity prices drastically? the official said. Gross domestic product growth in India slipped to 7.7 percent in the three months through June, and with high inflation persisting, many economists are scaling down their growth forecasts. The RBI has raised its key rate by a total of 325 basis points to 8.00 percent since March 2010, including a sharper-than-expected 50 basis point hike in July, meaning its next move is not easily predicted. The minutes of the July meeting of the RBI\'s advisory panel on monetary policy showed that the majority favoured a pause or a quarter point increase. Subbarao overruled them.  
Express

Why 16 Sep is not a date for investors to worry about

The policy review on 16 September will not change that view, though the equity and bond markets are waiting nervously to hear what the RBI has to say on that day. There are expectations that the RBI will hike the repo rate by 25 basis points (bps) to take the total hikes in four months to 150 bps (100 bps make 1 percent) – but one can’t be sure on that......

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Four trends which make a strong case for RBI rate hike

Voices of dissent against the Reserve Bank of India’s (RBI’s) persistent monetary tightening have grown louder in recent months. A number of arguments have been put forth expressing the fear that the RBI might have hiked interest rates once too often to be good for the economy................

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Thursday, September 8, 2011

SLR by Subbarao

Dr Subbarao has now made it a habit to say openly what he feels strongly about, which is good. Sometime ago, he spoke of the independence of RBI, which was well taken. Now, he has touched on the issue of SLR, which should make us think hard. Today, at 24%, SLR may be interpreted as being a drag on the banks, which are per force compelled to hold government securities instead of using them for lending. Is this really bad for them? One is not sure of the answer, considering that today, for the system as a whole, the investments’ deposits ratio is 30.7%. There are really two things here. The first is that, ideologically speaking, banks should have greater flexibility with their funds and hence should have the option of using the investment or credit windows. Fixing a high number puts pressure on the use of funds by banks. Considering that they have the CRR requirement (6%) as well as priority sector lending compulsion of 40%, it makes sense to have a lower SLR number. They can still invest more in government paper in case they find them attractive from the point of view of the capital gains to be made or for satisfying the prudential regulatory norms. The RBI Governor’s thoughts, if implemented, will actually help banks a lot. The second is how low should SLR drop? One way to tackle this issue is to gauge the level and extent of repo borrowings, which is, in a way, indicative of surplus SLR securities, which are being given to RBI for cash and is thus a measure of the liquidity deficit. Hence, a sustained borrowing of, say, R50,000 crore from the repo window means that SLR can be reduced by this proportion. Is there a downside to this reduction? The party that benefits a lot from this high stipulation is the government that gets the banks to park their funds in its debt. A lower level will theoretically impact its ability to get subscribers for its debt. But then, given that banks are one component of this basket that holds around 40% of all government paper (insurance companies, PDs and provident funds are other important holders), this should not be an issue. Also the fact that banks are holding excess SLR means that, overall, the impact will be muted, as those with surplus SLR securities will continue to subscribe to them. But the positive thing is that all banks which are today facing a shortfall can have access to greater use of their own funds rather than look for borrowings in the call market. One can sense that RBI is becoming more progressive in its monetary view as well as in its policy formulation. While the approach has been so far bordering on being cautious, it has taken a pragmatic view on the operational issues for banks such as the base rate concept, opening up of savings rate (in progress), introducing the marginal standing facility and now lowering of SLR, and probably also CRR, when the time is right. This is really good news.
FE 

Banks in Karnataka disburse 28% of annual target in Q1

Banks in Karnataka have to quicken the pace of their financial inclusion (FIs) efforts in order to meet the target of covering the remaining 1,682 unbanked villages in the State, said the Chairman of State-level Bankers' Committee (SLBC) – Karnataka, Mr Basant Seth, also the CMD of Syndicate Bank, on Wednesday. Addressing the SLBC – Karnataka meeting, he said an additional 6,029 unbanked villages have been identified with of population of 1,000-2,000 and allocated to the banks through lead district managers (LDMs) for providing banking services. Mr Seth also said banks in the State have disbursed 28 per cent (at Rs 11,543 crore) of the annual target for the current fiscal (2011-12) under priority sector credit during the first quarter (Q1) ending June 2011. Under secondary and tertiary sectors, disbursement stood at Rs 2,003 crore and Rs 1,896 crore respectively. The target under agriculture credit is revised upward to Rs 31,380 crore in tune with national priority. The aggregate deposits stood at Rs 3.5 lakh crore while aggregate advances was Rs 2.6 lakh crore with a credit deposit ratio of 72.71 per cent. The advances to priority sector stood at Rs 1.1 lakh crore crore, constituting 42.44 per cent of credit, surpassing RBI stipulation of 40 per cent. Mr Seth urged the banks to accelerate credit flow to minority communities to improve the level to stipulated 15 per cent. Similarly, the advance to agriculture sector was Rs.47054 crore comprising 18.23 per cent of the total credit, which is above the stipulated level of 18 per cent. Advances to MSME sector stood at Rs 47343 crore.
Speaking on the occasion, Ms Uma Shankar, Regional Director RBI cautioned the banks for 7.3 per cent drop in CD ratio to 72.71 per cent in Q1 FY 2011-12, against 80.01 per cent same period last year. She also cautioned banks to adhered to strict deadline iron out differences with service providers and achieve the set financial inclusion goals by March 2012. “Banking correspondents (BC) model in the state needs to be standardised and rolled out faster. Along with training in banking, banks should also think about providing soft-skill training for BCs,” said Ms Shankar.  Mr S.N.A. Jinnah, Chief General Manager NABARD, said self-help groups (SHGs) are well covered in the State. But few districts have low density of SHG coverage and we need to focus on those districts to push for priority lending. Mr S.V. Ranganath Karnataka Chief Secretary, said the Government is looking for active assistance of Nabard to take up study on national rural livelihood mission.  The State Government is actively studying the proposal of using SHGs to actively increase their involvement in rural development.
HBL

IRMA gets its first woman director

The Institute of Rural Management, Anand, (IRMA) has got a female director for the first time since its inception in 1979. Professor Jeemol Unni who since the last two years was serving as Reserve Bank of India (RBI) chair at IRMA has taken over as regular director of country's premier rural management institute. Unni has taken over as director from acting director professor Rakesh Saxena. Since May, the institute was being managed by an acting director after its former director professor Vivek Bhandari stepped down.
TOI

StanChart admits its IDRs had ‘impurities’

Speaking on the recent Reserve Bank of India (RBI) guidelines on offering banking licences to corporates, Bindra said, “As long as the RBI can ensure that there is an arms length that is well enforced and there is an inclusive growth, more are welcome.”..

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Pension ULIP: New Avatar

The Insurance Regulatory and Development Authority (IRDA) had earlier mandated all pension products to ensure a guaranteed rate of 4.5%pa which was also indexed to the reverse repo rate of the Reserve Bank of India (RBI)...........

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Use technology to scale up financial inclusion: Pranab

...Stressing the government's firm belief that financial inclusion is a necessary condition for inclusive growth, Mr. Mukherjee pointed to the important role that public sector banks (PSBs) have to play in this regard “given the distribution platform they enjoy and experience they have in serving the rural hinterland for the past five decades”.....

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RBI focuses on better customer service

Prevention is better than cure’ seems to be the focal point of the latest action points of the Reserve Bank of India (RBI) in the Annual Conference of Banking Ombudsman. So, the apex bank is looking at setting a template of good customer service that will prevent consumer grievance....

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Subir Gokarn rules out RBI intervention in currency market

Gokarn was speaking at the annual conference of Federation of Indian Chambers of Commerce and Industry (FICCI) in Mumbai. The Reserve Bank of India (RBI) will consider intervention in the foreign exchange market only if there is a danger of currency fluctuations adversely affecting the markets and the economy, Subir Gokarn, a Deputy Governor in the central bank said on Wednesday. Gokarn was speaking at the annual conference of Federation of Indian Chambers of Commerce and Industry  Gokarn was reacting to questions on Switzerland central bank’s move on Tuesday to cap the franc’s gains by setting a floor against the euro. The Swiss National Bank yesterday imposed a ceiling on the franc of 1.20 versus the euro, and pledged to defend the target with the utmost determination. "Switzerland has decided that the burden of inflows as a result of the turbulence around them is putting pressure on their currency in a way that is disrupting their real sector. So, they have decided to react," Gokarn said. He went on to add that the move by the Swiss National Bank is not in any way an abandonment of their fundamentally floating exchange-rate system. It is an attempt to deal with temporary factors, Gokarn said. "Our view on exchange rate management is essentially the same. We are looking to not target the exchange rate," he said. But, if there is pressure of any kind that disrupts the real sector the RBI would consider intervention. India has not faced that situation so far, Gokarn said.
IIFL

Refinancing best done by separate bodies: Gokarn

Deputy Governor Subir Gokarn said the Reserve Bank does not want to re-enter the refinancing space, saying this is best carried out by dedicated institutions. "If any refinance is needed then we need to create a separate institution with its own balance sheet and its own governance structure and not get embedded into the marco regulatory functions of the central bank," Gokarn told a summit on capital markets organised by FICCI here. He was answering a query from the audience whether the regulator has any plan to refinance the troubled microfinance sector. Pointing out that over the years RBI had moved away from refinancing, he said, "I don't know why the central bank becomes the obvious choice for everyone for this kind (refinancing) of an activity?  "If you look at refinancing as a national policy driven activity though, it had started off as a part of the central bank's mandate with the hiving of IDBI in 1971 and Nabard in 1982 with an idea to incubate them and allow them to operate on the strength of their own balance sheets," he said. This hive off was also aimed at ensuring that RBI's macro regulatory functions do not get compromised because of such specific micro functions," he said. "We have moved away from this over the years and I think that is the way it should be. IDBI and Nabard were separated to do these jobs and these are best left to separate institutions and not the RBI," he concluded.
Moneycontrol

RBI justifies ban on pre-payment charges

The Reserve Bank today justified its move to ban pre-payments charges on floating rate loans, saying there is no legitimacy for banks to levy any penalty in such loan contract. "In a floating rate contract, the borrower bears the complete interest risks and cannot be asked for compensation if he decides to pre-pay. On the other hand, in a fixed rate contract, the lender is committing resources, and then there is some legitimacy in asking for compensation," Deputy Governor Subir Gokarn told reporters on the sidelines of a FICCI event here. Yesterday, the Banking Ombudsmen had suggested that banks need not impose any charges for pre-paying loans taken under floating rates by customers. Many banks charge a pre-payment penalty ranging from 2-3% if a borrower chooses to pre-pay personal or home loan, irrespective of the nature of the loan contract-floating or fixed rate loans, citing as part of their cost of servicing their own loans. "Floating rate loans pass on the interest rate risk from banks, which are much better placed to manage it, to borrowers and, thus, banks only substitute interest rate risk with potential credit risk," the Ombudsmen noted. The banks will, however, be free to recover or charge appropriate pre-payment penalties in the case of fixed rate loans, the 10 action points to improve customer service said. The Banking Ombudsmen met at the RBI yesterday along with IBA representatives. Though the suggestion of the Banking Ombudsmen are morally suggestive in nature, it is generally accepted by the banks. Technically speaking, their suggestions have to be followed up by a circular from the RBI. In his inaugural remarks Governor D Subbarao had said "often, prevention was better than cure. In customer service area too, rendering good customer service was like 'prevention' and was better than the 'cure' which was the various grievances redressal mechanisms." Minister of State for Finance Namo Narain Meena in a written response in the Rajya Sabha too had said yesterday that the government in May 2010, had advised PSBs, IBA and National Housing Bank that no pre-payment charges may be levied by the lending institutions when the loan amount is paid by borrowers out of their own funds. State run banks like SBI claim that they do not levy any pre-payment charges if the pre-payment is paid by the borrowers from own sources, and not re-financed by another lender.
Moneycontrol

RBI seeks one-time tax relief to arm MNC banks

The Reserve Bank of India has sought a one-off tax exemption from the government for foreign banks that convert into local subsidiaries as it intensifies efforts to ring-fence the domestic financial system from global shocks. The permission, if granted by the government that's already facing widening fiscal gap, may lead to thousands of crores of notional revenue loss. "It is likely that the foreign banks which have attained a particular asset size may be asked to convert into wholly-owned subsidiaries. RBI is also expected to extend the branch licensing policy applicable for domestic banks to foreign banks. Like domestic banks, they would have to ensure that at least 25% of their branches are in unbanked rural centres," said a banker, familiar with the proposal.  Currently, it's not very easy for foreign banks to acquire branch licences from the regulator. On an average, the central bank issues about 14 branches to all foreign banks every year. Along with the national treatment, sources indicate that foreign banks would have to meet the 40% priority sector target. At present, the priority sector limit for foreign banks is pegged at 32% against the 40% target set for domestic banks. Foreign bankers had asked RBI to consider relaxation in mandated farm lending targets, considering their limited reach. "The central bank, along with the Indian Banks' Association, is relooking at the definition of priority sector, which should address foreign banks' problems. Hence, this should not be a show stopper any more," said a person familiar with the proposal.  "RBI has suggested that the government evaluate extending one-time tax relief to foreign banks that migrate to the wholly-owned subsidiary model," he said. Under tax rules, a branch of a foreign bank in India is treated as a foreign firm.
ET

India may soon join sovereign fund club; fund to fuel natural resources acquisitions overseas

MUMBAI: India's policy makers will discuss next week a proposal mooted by corporate chiefs to float a sovereign wealth fund (SWF), which would potentially invest in overseas projects and companies to secure access to natural resources for one of the fastest-growing economies in the world. A committee headed by Reserve Bank of India Governor D Subbarao will discuss the merits of the proposal on September 15, according to senior officials. The committee operates under the umbrella of the Financial Stability and Development Council, or FSDC, a forum of regulators monitoring financial stability and inter-regulatory co-ordination.

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RBI permits modification in ECB procedures

Mumbai: The Reserve Bank Wednesday allowed authorised dealer category banks to approve proposals of ECB borrower to change their lenders. ".... it has been decided to delegate powers to the designated AD Category-I banks to approve the request from the ECB borrowers with respect to change in the recognised lender when the original lender is an international bank or a multilateral financial institution...," RBI said in a notification. According to existing procedures for external commercial borrowings, any request for change of lender for an existing ECB is required to be referred by the Authorised Dealer Bank to the Reserve Bank for necessary approval. The new rules will also apply in case the lending party is a regional financial institution, government-owned development financial institution, export credit agency or supplier of equipment. However, the new lender has to a recognised one as per existing norms for raising External Commercial Borrowing (ECB). "However, changes in the recognised lender in case of foreign equity holder and foreign collaborator will continue to be examined by the RBI," the notification said. The modifications to the ECB guidelines will come in to force with immediate effect. "All other aspects of the ECB policy, such as USD 500 million limit per company per financial year under the automatic route, eligible borrower, end-use, all-in-cost ceiling, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements shall remain unchanged," RBI said. ECBs are used as an additional source of funding by Indian corporates to augment available domestic resources. Corporates registered under the Companies Act, 1956, can access ECBs up to USD 500 million in a financial year under the automatic route. The ECB, which is not covered by the automatic route, is considered under the approval route on a case-by-case basis by the RBI.
Zee News

Wait gets longer for Banking Regulation Amendment Bill

The Standing Committee on Finance will not submit its report on the Banking Regulation Amendment Bill 2011 during the current session of Parliament ending on Thursday. This may delay granting of new banking licences. Sources in the standing committee told Business Line, “Annual reconstitution of the committee is due, so any report will be finalised only after that. The report can be expected only during the winter session.” This committee was supposed to give its report on pension and banking Bill during the current session but has given just on pension only”. However, the main reason for delay, according to a member of the committee, is that more deliberations are required. The banking industry as well as the corporates planning to apply for new licence are eagerly waiting for the passage of the Bill. For the existing players, the Bill, once enacted, will help in attracting more investment. This Bill proposes to raise voting rights of the shareholders of nationalised banks from one per cent to 10 per cent. On the other hand, the Bill proposes to remove the existing restriction on voting rights limited to 10 per cent in the case of the private banks. The Reserve Bank of India has already clarified that it would wait for the amendment of the Bill before granting new banking licences. The Bill proposes to confer power upon the Reserve Bank to call for information and returns from the associate enterprises of banking companies to inspect the same, if necessary. The Bill also proposes to confer power upon the RBI to supersede the board of directors of a banking company for a total period not exceeding 12 months and appoint an administrator to manage the banking company during the said period. The RBI feels that such a power will help it in regulating the new as well as existing entities in much better manner. Once the standing committee gives its report on the Bill, the Government might make some changes in it. This will require approval from the Cabinet, then the revised Bill can be brought for consideration and passage. Sources said the agenda for winter session seemed very heavy. The Government has to get the Constitutional Amendment Bill for the goods and services tax (GST) and Direct Taxes Code passed on priority. So, putting banking Bill on priority will not be easy, they added.
HBL

As western banks weaken, desi ones see opportunity

Despite deteriorating global economic conditions, public sector banks (PSBs) are increasing their overseas presence.  The main driver is the business opportunities that India's increasingly global business houses are throwing up........

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Tease me good

In quick succession, ICICI Bank and HDFC Bank have come out with a new version of combined fixed and floating home loan products, rekindling the issue of teaser home loans yet again. The second coming of these loans shows that the home loan market has expanded enough for competition to peak. Other banks that have also announced their intention to tap the retail sector aggressively will soon offer their version of the scheme. These could include State Bank of India, the pioneer in 2009. RBI deputy governor KC Chakrabarty has also said that the regulator is not inclined to put a halt to the schemes as long as banks make the extra provisioning of 2% instead of 0.4%. The higher provisioning will dent the profit margins but the revival of the teaser loan shows that the banks still see money in it. Teaser loans undoubtedly pushed up the credit offtake for housing loans last year and gave the middle class much-needed relief from the increasing interest rates. The size of the home loan market at the end of July this year—at R3.61 lakh crore—makes it difficult for RBI to push banks beyond a point. For banks, the strategy of teaser loans works profitably when the income stream of the borrowers is carefully assessed. At a moment when the interest rate is peaking, the timing of the teaser loans can be questioned as they block new customers at higher rates. But, given that credit growth is sluggish at 2.5% in the current financial year till August as compared with 3.8% in the same period last year, banks need the home loan sector to move.
FE

RBI has no intension to stop teaser loans: Gokarn

MUMBAI: Reserve Bank Deputy Governor Subir Gokarn on Wednesday said the central bank has no plan to ban teaser loans but warned that any such product will attract 2 per cent additional provisioning. "There is no attempt or intent on the part of the RBI to stop these products or prevent them any way. We are only saying that there are some additional risks involved in such products and hence more provisioning has to be made for any such products," Gokarn said on the sidelines of a Ficci seminar here. "Whether they fall into such (teaser) category is something my colleagues in the regulatory department to decide, but the policy response to any such structure is that once it is deemed to satisfy any of those criteria of (teaser loans), it would attract higher provisioning requirement of 2 percent which we imposed recently. "So if you have a product that falls into such a structure, then you will have to make the additional provisioning. It is very clear," he said when asked whether the regulator is planning to bracket the recently launched home loan schemes by ICICI Bank and HDFC as teaser loans. Recently ICICI Bank and mortgage lender HDFC had offered a fixed rate home loan products to attract more borrowers, as credit growth slowed in the face of rising interest rates.
TOI

Reserve ratios need to come down gradually, says RBI Governor Duvvuri Subbarao

MUMBAI: RBI Governor Duvvuri Subbarao said on Tuesday that the proportion of deposits banks need to set aside with themselves as well as the Reserve Bank of India need to come down, but gradually.  "Combined CRR (cash reserve ratio), SLR (statutory liquidity ratio) at 30 percent is still quite high and needs to come down, but that has to happen gradually," Reserve Bank of India (RBI) Governor Duvvuri Subbarao said speaking at the National Finance Symposium organised by the Indian Institute of Foreign Trade.
ET

'Funding for MFIs continues to be subdued' - Udaia Kumar, MD, SHARE Microfin

The draft Bill is a positive development, as it recognises microfinance institutions as extended arms of banks and brings them under RBI's direct supervision. But nothing has changed in field operations. The repayment rate in Andhra Pradesh continues to remain low, at about 10 per cent. There is also very limited opportunity to give fresh loans and expand the balance sheet....

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No target for R, to step in if economy affected: Gokarn

“Our view on exchange rate management has been the same. We do not target the exchange rate unless there is great pressure of any kind,”...

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Pre-payment penalty: RBI proposes, will banks size up?

In a move that is likely to cheer borrowers immensely, banks have been asked to do away with the pre-payment penalty clause on floating-rate loans. However, it still remains to be seen how banks choose to implement the proposal of the Reserve Bank of India (RBI)....

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RBI pre-payment advisory: Banks say will toe the line

A day after the Reserve Bank of India, through an advisory, asked banks not to levy pre-payment charges in the case of floating rate loans, most banks are gearing up to implement the decision. On Tuesday, the RBI had said that banks should not recover a charge on pre-payment of floating rate loans after a decision was taken to this effect at the Annual Conference of Banking Ombudsmen on September 5. Executive vice president – Retail Assets, Kotak Mahindra Bank, Kamlesh Rao said, “The bank will certainly consider the same and decide on the implementation,” adding that he needed to go through the RBI communication. MD Mallya, CMD, Bank of Baroda, said that he will take a decision only after going through the advisory. The RBI communication, however said that Mallya “participated in the conference” that was chaired by the central bank’s Deputy Governor KC Chakrabarty. An official of another private sector bank also said that the bank will look towards implementing the decision. Giving the rationale behind central bank’s decision, RBI Deputy Governor Subir Gokarn said, “Floating rate contract is one where the borrower absorbs the interest rate risk and hence the lender of a long-term loan is not bearing any interest rate risk and does not have to make an accommodation to manage that risk.” He added that for a fixed rate loan there is some legitimacy in asking for compensation since the bank commits its resources when lending for a period of 15-20 years and if the contract is terminated before the agreed period, then the resource cannot be deployed immediately and the bank has to bear a cost. The housing finance companies, regulated by the National Housing Bank (NHB), however, are already following this norm and the banking industry is lagging behind on the same. The NHB had issued a circular on October 18, 2010, advised the housing finance companies from charging prepayment charge in cases where the borrowers pre pay from their own sources. “It is advised that pre-payment levy or penalty should not be collected from the borrowers when the housing loan is pre-closed by the borrowers out of their own sources. All HFCs are advised to ensure compliance of the above with immediate effect,” said the NHB in its circular.
What the RBI wants
* Reserve Bank of India (RBI) has directed banks not to recover pre-payment charges in floating rate loans
* The decision on home loans was taken at the Annual Conference of Banking Ombudsmen held in Mumbai on Monday
* RBI has said that customers should not be levied pre-payment charges as banks are better placed to manage interest rate risks
http://www.expressindia.com/ 

RBI hawkish ahead of monetary policy review despite global gloom

Reserve Bank of India remains bent on fighting domestic inflation despite weakening global conditions, officials with direct knowledge of policymaking said, a week before it is widely expected to raise interest rates once again. The Reserve Bank of India, which has lifted rates 11 times in 18 months, makes its mid-quarter review on September 16. Though senior bank officials are hawkish, RBI Governor Duvvuri Subbarao will not make a final decision before the release of August inflation data on Sept. 14, the sources said. "We still have high food and non-food manufacturing inflation, good credit growth to industry and growth is also quite good according to our view," said an official with direct knowledge of the matter. "So, domestic factors will continue to be the key driver for policy framing," the official said. RBI officials have kept up the hawkish talk in recent weeks even as fears mount that western economies are slipping back into recession, although the central bank is widely believed to be nearing the end of its tightening cycle as its earlier actions exact a toll on demand in Asia's third-largest economy.  Also, the finance ministry is putting pressure on Subbarao, whose term was recently extended for two years, not to continue tightening for much longer. Finance Minister Pranab Mukherjee this week was quoted as saying that he hoped the RBI will not raise rates further.  Senior finance ministry officials said continued steady rate increases may not have the desired effect of cooling inflation without overly disrupting growth. "Yes, inflation still remains the big concern but I see that peaking off at the end of the year, but growth will also come into sharp focus," one of the officials told Reuters.  Last week's jump in food inflation, high non-food manufacturing inflation, the knock-on impact of a June fuel price increase and resilient credit growth all point to a need for continued vigilance, several RBI officials said, declining to be identified given the sensitivity of the matter.
ET

Once bitten, SBI says enough with teaser loans

"We have no plans as of now to launch any special home loans," Chairman Pratip Chaudhuri told reporters here. Reminiscing of the bank's earlier brush with the Reserve Bank in this regard, he said, "We have been through the teaser loan definition. We respect the regulator's stance."

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RBI cancels licence of Tandur Mahila Cooperative Bank

Mumbai: The Reserve Bank of India (RBI) has cancelled the licence of Andhra Pradesh-based Tandur Mahila Cooperative Urban Bank as there was no scope for revival of the ailing lender. RBI has also requested the Registrar of Cooperative Societies, Andhra Pradesh, to issue an order for winding up the cooperative bank and appoint a liquidator, a central bank release said Wednesday. Post-liquidation, every depositor of the cooperative bank will be entitled to repayment of deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), it added. The cooperative bank, which was granted a banking licence by RBI on June 21, 2000, had been inspected by the apex bank many a times. However, deteriorating functioning standards along with financial irregularities left no scope for revival of this cooperative, RBI noted in its order.
Zee News

Banks' IT spending to surge 50% to Rs 10,000 cr annually

As Indian banks gear up for the second wave of technological enhancement, their spending is likely to shoot, a little over fifty per cent, to Rs 10,000 crore annually. According to The Boston Consulting Group (BCG), the current expenditure on information technology (IT) for banks on the whole is Rs 6,500 crore per year, about 2.7 per cent of their revenues. The first phase of IT upgradation largely included migration of banks to a core banking system, which allowed for consolidation of banking services offered across regions and channels. “We expect Indian banks’ IT expenditure to touch Rs 10,000 crore annually in four to five years as they get ready for their second wave of IT investments,” said Saurabh Tripathi, partner and director, BCG. Currently, the IT spending of public sector banks, which form a major chunk of the banking sector is about 62 per cent of the total spending on technology by all banks. According to bankers, the increase in IT spend is likely to benefit them in the long term. The major areas of thrust will be automated data storage, compilation, upgradation and analysis, along with automated decision making that will involve loan sanctions as well. “Indian Bank is working to move towards the Client Relationship Model (CRM), which will allow comprehensive data analysis and decision making without manual intervention. Once we fully migrate to the CRM model, we will be able to increase the customer base by 30 per cent through comprehensive customer profiling and servicing,” said T M Bhasin, chairman & managing director. Indian Bank spent Rs 55 crore on technology last financial year and expects the total IT expenditure to be around Rs 92 crore this financial year. M V Nair, chairman and managing director of Union Bank of India, said.   “We need to catch up fast with IT improvisation to save costs and improve customer experience.” Most banks are now looking to enhance customer experience, as well as return on investment (ROI) simultaneously through technology after they have fulfilled the minimum core banking requirements.
The Reserve Bank of India (RBI) has also laid ample emphasis on IT upgrade of the banks and come up with IT Vision 2011-17 for the financial sector. “In the banking industry, use of information technology is omnipresent. The Vision Document also sets priorities for commercial banks to move forward from their core banking solutions to enhanced use of IT in areas like management information systems, regulatory reporting, overall risk management, financial inclusion and customer relationship management,” K C Chakrabarty, Deputy Governor of RBI said in a recent speech. However, experts said banks also need to look at return on their investment in information technology. “For the next wave of IT investments, an ROI framework is crucial. For this, the whole approach for IT projects has to undergo a dramatic change. It needs to start with identification of business value and IT projects have to justify themselves by bottom line value created in lower costs or higher revenues,” Tripathi of BCG said. Although Indian banks are increasingly looking to spend on technology in the coming years, their expenditure remains quite low as compared to developed economies. “Overall, the industry spends 2.7 per cent of its revenues on technology – including capital expenditure, operating expenditure and specialist employee costs. Globally, this number is as high as nine per cent. Part of the reason is that Indian industry has to move to a more value-added role of technology,” BCG said.
BS

The only way EMIs can now go is up

Just a day after banks agreed to waive prepayment charges at a meeting with the Reserve Bank of India (RBI), home loan borrowers are faced with a bigger problem, a rise in equated monthly instalments (EMIs).
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Uptrend to be short-lived

...Reserve Bank of India (RBI) governor D Subbarao said today that he would not like to comment on the subject of another rate hike, before looking at headline inflation data for August which will be released on 14th September. The RBI will hold a mid-quarter monetary policy review on 16th September....

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Wednesday, September 7, 2011

82nd SLBC held : J & K Bank disburses 631.76 Cr to priority sector in Q1 of FY 2011-12

J&K Bank alone has disbursed Rs 631.76 Crores out of the credit facilities aggregating Rs 914.73 Crores extended by all the banks operating in J&K state during Q1 of FY 2011-12, which accounts for the 69% of the total priority sector credit disbursed in the state. These 914.73 Crores have been extended to 46,273 beneficiaries against the target of Rs 3619.69 Crores for 2, 37,892 beneficiaries under Priority Sector. Against the target of 1492.44 Crores, J&K Bank has achieved 42% of its Annual Credit Plan (ACP). Chairman and CEO J&K Bank (Convenor SLBC) Mr. Mushtaq Ahmad stated these facts and figures as part of the review on performance of banks in the state while presenting the report at 82nd meeting of J&K State Level Banker’s Committee (SLBC). Chairman J&K Bank presided the meeting. The meeting was attended by Umang Narola (IAS), Commissioner/Secretary, Industries & Commerce, F.A.Peer (IAS), Commissioner/Secretary Labour and Employment, Mr. K K Saraf Regional Director (J&K), RBI, Mr. M L Sukhdeve CGM, NABARD (J&K), senior functionaries of state government, senior executives of banks, Reserve Bank of India, NABARD and other developmental agencies.

Earlier, Mr. K K Saraf RD (J&K) RBI reiterated the importance of SLBC forum and impressed upon the banking fraternity and the state officials/agencies to work in a coordinated way to accelerate the process of economic development of the state. Commenting upon the report, he remarked that the overall performance seems encouraging because of marked performance of J&K Bank. He emphasized that all the banks have to play a vital role and show better performance in the coming times. A number of decisions that were taken during the meeting included the emphasis on the financial inclusion programme. A sub-group was formed to work out the modalities to take the initiative forward as the top most priority in line with the guidelines of government of India.  Moreover, all the member banks were advised to take necessary measures for substantially improving the Credit-Deposit ratio in the state.  The meeting concluded with the presentation made by the representative of Banking Codes and Standards Board of India (BCSBI). The presentation was aimed at generating awareness about the utility of banking codes and Standards in promoting fair banking practices and upgrading the level of customer service.

http://www.jkbank.net/pressreleasetemplate.php?id=413