After finding the division of the assets of Andhra Pradesh State Cooperative Bank (APCOB) a hard nut to crack, the management board on Monday handed over the task to Nabard Consultancy Services (NABCONS). NABCONS, the consultancy arm of Na tional Bank for Agricultural and Rural Development (Nabard) will provide a roadmap for the bank, within 45 days, sources said. ..........
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, August 14, 2014
Wednesday, August 13, 2014
Diplomatic Banker Has a Will of Steel
If Duvvuri Subbarao had some anxious moments as
Reserve Bank of India Governor due to his deputy KC Chakrabarty's plainspeak
-on subjects ranging from interest rates to banker behaviour -Raghuram Rajan
can breathe easy. SS Mundra, the latest deputy governor appointed to the RBI,
is a diplomat in a banker's clothing. To hear Mundra in a conversation
without a microphone is hard, however close you are to him. But the glacial
softness conceals a will of steel -Mundra does not give up easily........
Read - ET
राजन यांचे अंजन
Finance and opportunity in India - Dr.Raghuram Rajan
Address by Dr. Raghuram Rajan, Governor of the Bank of India, at the Twentieth Lalit Doshi Memorial Lecture, Mumbai, 11 August 2014
.........The broader takeaway is that financial inclusion and direct benefits transfer can be a way of liberating the poor from dependency on indifferently delivered public services, and thus indirectly from the venal but effective politician. It is not a cure-all but will help the poor out of poverty and towards true political independence. But financial inclusion can do more; by liberating the poor and the marginalized from the clutches of the moneylender, by providing credit and advice to the entrepreneurial amongst the poor, and by giving............
What is Wrong with Crony Capitalism
RBI governor Raghuram Rajan deplored crony capitalism recently , as it harms free enterprise, efficiency and growth. He is, of course, right. But crony capitalism has played a huge role in the initial, economic take-off of practically all countries. The British Crown gave the East India Company a monopoly over trade with India. Abraham Lincoln, a successful, erstwhile railroad attorney , signed away one-tenth the land of the United States to some railroad companies to connect the east and west coasts of the nation by rail. ............
Read - ET
Read - ET
Former RBI chief prepares for new role as chairman of government spending initiative
Former Reserve Bank of India Governor Bimal Jalan was on Tuesday named the chairman of the Expenditure Management Commission. The new initiative was unveiled in Finance Minister Arun Jaitley's Budget speech to improve the efficacy of the government spending in order to achieve maximum output. The 72-year-old Jalan was appointed to the post by Prime Minister Narendra Modi. Subir Gokarn, a former Deputy Governor of the RBI, was named a member of the Expenditure Management Commission, which was given 18 months to submit its report..........
Ideas of India's uncertainties
..........The first essay under part one, "Politics", is an overview by Bimal Jalan. Mr Jalan expresses valid concerns about the high and increasing criminalisation of politics and corruption in contemporary India, aided and abetted by investigative and judicial processes that are kept deliberately cumbersome and slow by vested interests. These issues must be solved if India is to move back to a high growth path. However, the loss of gross domestic product (GDP) growth that Mr Jalan attributes to multi-party coalitions is perhaps really due to weak leadership. After all,..........
'Need’ful recommendations
My View on "RBI transfers almost entire surplus to govt":
“It was reasoned that government should need the fund now which is facing high fiscal deficit that’s needed to be brought down” explains it all. Just as ‘people get the government they deserve’, GOI and RBI get the recommendations they ‘need’ from panels. This is not just a premature, harsh response to the beginning of the gradual weakening of a central bank’s financial strength. Lamenting on the fall of RBI’s aggregate reserves from 11.9 per cent of balance sheet size to 10.1 per cent during the five year period ending June 2013, I had observed as under:
“To ensure that temptations of government emanating from external compulsions do not dilute the strength of RBI’s balance sheet, GOI should take measures to augment the share capital and reserves of RBI after carrying out appropriate amendment to RBI Act. Till such time RBI should be allowed to retain surplus income by transfer to reserves. Considering the size of the balance sheet and the internal and external pressures on its income generating capabilities, as also the nature of shocks the bank has to absorb from time to time, the central bank’s reserves need to be augmented on an ongoing basis.”*
*Page 47, Banking, Reforms & Corruption: Development Issues in 21st Century India By M G Warrier(samparkworld@hotmail.
- M G Warrier, Mumbai
A welcome move
..........Given the complexities of a modern, globally integrated and growing economy like India’s, setting monetary policy is complex. It can neither be mechanical and in line with the experience of other central banks. Nor can it toe a set political line. An economy is a “complex animal” and setting monetary policy has to have a sense of judgment about it. It is in this context that monetary policy is best left to the expertise and the judgment of the central banker. The reason why we welcome Jaitley’s assertion about the independence of the RBI in setting its policy parameters. In our present context, Governor Raghuram Rajan had given an inkling of what he proposes to do with his “conditional statement”:........
A hunt for PPF that leads to toxic sales pitches
............But to experience it myself was an entirely different thing. It was a simple visit to my bank branches to open a Public Provident Fund (PPF) account, which once again put into focus the way financial products are being sold by banks. Here’s how the conversations went with relationship managers (RMs) at the two banks I visited.....................
Financial inclusion times
........... While the proof of the Centre’s and the state’s direct benefits programmes needs to be seen, we are in a new phase of financial inclusion. And with money from the state and the Centre all set to flow into bank accounts, inclusion seems more viable since, this time around, the banks stand to benefit from opening and servicing the accounts of the poor.
Mobile banking zooms as India gets smarter
A sharp increase in use of smartphones has led to a sudden surge in mobile banking transactions — almost four times in a year in value terms. Leading the pack is ICICI Bank, the country’s largest private-sector lender, which has reported a three-fold rise to clock more than Rs 1,000 crore worth of transactions in a month, the first time by a bank in India...........
VITALINFO - enthusiasm, endurance and perseverance
My View on VITALINFO - Delay regretted.........
Shri Anand Sinha, former Deputy Governor has requested you to kindly include his new mail id for VITALINFO. Regards.
Shri Anand Sinha, former Deputy Governor has requested you to kindly include his new mail id for VITALINFO. Regards.
- Hemant D. Gajare, PS
Dear
Sir, Please
include the e-mail ids of Shri A. K. Sarangi, CGM, HRMD, CO and Shri S. R.
Pattanaik, DGM, HRMD, CO in the mailing list of VITALINFO magazine, as they are
very much interested in receiving the same. Regards
- Praveen
Yadav, Manager, HRMD
Excellent. It makes you well read. Ahead of others. Regards
- V.S.Malekar, HRMD
Dear Mr Tarambale, The great work that you are doing in putting
together all this vital information is commendable and highly appreciated.
- Luella Saldanha, Assistant Manager, Belapur
Dear Tarambale Sir,
I am astonished by your efforts to compile all
the information, articles etc relating to banking and finance from
all the news papers. Anybody who goes through your blog needn't
read any news paper! I appreciate your enthusiasm, endurance and perseverance really
it requires lot of patience. Bravo!! Regards
- Sanjay S Dehade, Manager, Belapur
Mangesh,
While we appreciate your dedication, personally my appeal to you would be to get up an hour later. 3 a.m. is too early. Like fluctuations in the stock market, we should be prepared for situations like the one you faced. We know that you can more than make up on the next day, even if VITALINFO has to take a holiday.
- M.G.Warrier
Dear Mangesh,
There are no words to thank you for your hard work by getting up at 3.30 A.M or even earlier daily to make available to us information on a lot of subjects.
- Rajappan Nair
Dear Tarambale,
Don't know why but today morning I was feeling very angry with you for the delay. Then I realized - the restlessness was the same that one feels when the newspaper is delayed. Please keep it up. Regards
- Shailendra Trivedi
Dear Mangesh,
Why feeling sorry about it? In fact we are so grateful to you for this wonderful and painstaking service. No doubt I missed it today when I opened my smartphone at about 7 a.m. Because VITALINFO is the first news (channel) even before TV news or paper news, I like to read. Thanks and regards
- P.Aravind
- P.Aravind
RBI financial quiz (RBIQ) at Pune
 |
The winning teams Sungrace
High School (2nd runners up), The Cathedral Vidhya School (Winners)
and City International School (1st runners up) with the quiz master
and senior officials from RBI, Pune
|
The
annual all-India Inter-School RBI financial quiz (RBIQ) for Pune Centre was
held at the MES Auditorium, Kothrud, Pune on August 11, 2014. The Quiz launched
by the Reserve Bank of India in 2012, is an effort of the Reserve Bank towards
spreading awareness about financial matters, especially among children. Organized
for the third year in a row, RBIQ this year saw participation from 84 schools
located in Pune area, across all boards of education. Shri Lloyd Saldanha was
the quizmaster.
2 In her inaugural address Smt. Meena
Hemchandra, Principal Chief General Manager, College of Agricultural Banking,
RBI, Pune, spoke about the initiatives taken by RBI in the sphere of financial
literacy. She emphasized the importance of financial education and exhorted
students to be aware of financial matters as it was going to be part of their
everyday life.
3 Among the six teams which qualified
for the final round, Master Nihal Dalal and Master Jeh Patel of The Cathedral
Vidhya School, Lonavala, emerged as winners. They will now move to the Zonal
finals scheduled at Mumbai on November 10, 2014. Miss Sanjana Rai and Master Dibyanshu Gautam of City
International School, Pimpri were the first runners up while Miss Sheetal
Potale and Master Devendra Kondhalkar of Sungrace High School, Pune, were the
second runners up.
4 Shri Shyam Aggarwal, Chief Editor, Aaj
ka Anand gave away the prizes to the winners.
KV-II team wins Port Blair round of RBIQ-2014
The Port Blair round of the RBIQ-2014 was conducted by Reserve Bank of India (RBI), Kolkata here in Port Blair on August 11, 2014 at the auditorium of Dr. B.R. Ambedkar Institute of Technology. A large number of school children of this area participated in the event. The team from KV –II represented by Gaurav Kundu and Lakshmi Prasad won the Port Blair round of RBIQ-2014. The runners up were Ankita Sarkar and Pryesh Jain from Navy School. The winning team will take part in the Zonal Finals of Eastern Region scheduled to be held on 7thNovember, 2014 at Kolkata. The Quiz was conducted by renowned quizmaster Dr. Ashish Tripathi from Greycaps Pvt. Ltd., Bengaluru.................
Read...............
Read...............
Bankers Pack Pistols to Chase $21 Billion of Indian Clients Without Accounts
...........Risking his life to bring financial services to rural India is just part of the job for India’s correspondent bankers like Haque: almost 200,000 traders, shopkeepers, and small business owners across India who are part of a push to reach the estimated 65 percent of the adult population which, according to the World Bank, doesn’t have a bank account. ...........
Daylight theft in RBI Square; man relieved of Rs 50,000 booty
In a daring day light robbery, two motorcyclists looted a middle-aged man near a petrol pump at RBI Square at around 2 pm on Sunday afternoon. The theft material included a gold chain and Rs 20,000 cash. Sitabuldi police have booked the thieves and started investigations.........
Economic Milestone: Nationalisation of Banks (1969)
.......Morarji Desai, who was finance minister then, remained adamant and refused to go ahead with the proposal. “Recent experience does not suggest that large banks need to be taken over so as to do something they have not been doing,” he wrote. However, on July 19, 1969, the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance resulted in the ownership of 14 banks being transferred to the state. This made Desai’s position in the cabinet untenable.................
STATE-OWNED BANKS - Graft Check: Is Pay Hike a Solution?
..............Private sector bankers are paid astronomical sums, which they justify on grounds of profitability -performance determines pay . Whereas the standard for puibic sector banks is one pay , one scale across the board. This gives rise to multiple questions: Does such a policy work at a time when businesses need to turn in profits rather than simply be a tool to deliver the government's welfare measures? Salary levels are low, but does that justify being corrupt and taking bribes for loan sanctions? If so, how is it that thousands of other state-run bankers are clean? Is this a case of poor individual moral standards rather than pay? .......
Read - ET
Small Banks Turn to Open Source Solutions to Cut Costs
............While the country’s large banks have already invested in corebanking systems, this is an important year for banking technology in India. About a thousand urban co-operative banks are yet to migrate to a core banking system and are likely to choose hosted solutions on a pay-as-you-go basis. As of March, only a third of 1,589 urban co-operative banks that have been told by the central bank to migrate to a core banking system have done so. The rest of the market is up for grabs...........
RBI sparks confusion despite $4.1 billion in cash injections
..............The announcements come after RBI Governor Raghuram Rajan said last week the central bank would consider issuing more frequent and shorter-dated repos, or cash-for-loans transactions to smoothen volatility in money markets. The RBI began 7- and 14-day term repos in October, but traders complained they were announced too sporadically, making it hard for banks to manage their near-term cash needs. Still, some analysts noted that despite the confusion on Tuesday, the injection of funds by the RBI would prove a positive for markets............
What should be the economic priority of the Narendra Modi government?
.................The hard truth is that even if a country “gets things right” regarding spending, subsidies, taxes and regulations, its economy won’t become a thriving, innovative giant with deep capital markets unless its money achieves a Rock of Gibraltar-like reputation for reliability. Raghuram Rajan, the new governor of the Reserve Bank of India (RBI), seems to understand the harmful impact of inflation. But for India to break decisively from its bad monetary habits of the past, two key things are critical..........
For the unbanked
..............The role of financial literacy, of both potential customers as well as financial service providers, also needs to be emphasised. This implies distribution of literature in the local and simple language, designing flexibility in instruments and offering tenors that are attractive to the local population and training banking officials to be consumer-friendly. In the field survey undertaken by us in Gubbi, Tumkur, it emerged that financial literacy also needs to be imparted to bank officials. The financial requirements of farmers are different from those of artisans in the same rural area. In general, unbanked people prefer ease in banking .............
Muthoot Fincorp to act as biz correspondent for banks
...........“It should be ensured that there is no co-mingling of bank funds and those of the non-deposit taking NBFC appointed as business correspondent. There should be a specific contractual arrangement between the bank and the non-deposit taking NBFC to ensure that all possible conflicts of interest are adequately taken care of,” .........
Five lessons from bribery scandals in banks
................The current cracks in the banking system should lead to many changes in the way the financial system is managed. The incentives of both the finance ministry and the Reserve Bank of India are aligned in this case. The former does not have the money to recapitalize banks while the latter needs to protect its credibility as an effective banking regulator...........
Stakeholders to RBI: Penalize banks not meeting CDR in JK
.........Chairman, Kashmir Economic Alliance (KEA), Muhammad Yaseen Khan said: “I fail to understand why the RBI is not acting against these banks. While on other issues the RBI seems to be proactive, but when it comes to poor lending by SBI and PNB, the central bank acts as a mute spectator.” Khan said the RBI should take action against such banks which fail to meet the CDR benchmark. “They should be penalized for their failure to ensure mandatory credit flow to the priority sector.”.......
Sebi sets ball rolling for common KYC system for entire financial sector
........."The entities, regulated by other regulators in the financial sector specified by the board from time to time, may access the system of KRA for undertaking KYC of their clients who engage them for financial services," Sebi said in a notification. "The system of KRA may be connected with any central KYC registry authorised by the central government for the purpose of collation and sharing of the KYC information in the financial sector,” the market regulator added. The new norms would be called the 'Securities and Exchange Board of India KYC (Know Your Client) Registration Agency’ (Second Amendment) Regulations, 2014'........
Over 34,000 companies under RBI scanner for illegal NBFC operations: Government
................"The Ministry of Corporate Affairs sent a list of 34,754 companies having enabling clauses in their memorandum of association for undertaking NBFC like business, to identify companies which were carrying on the business in lines of NBFC without a license from RBI," Minister of State for Corporate Affairs Nirmala Sitharaman informed the Rajya Sabha in a written reply. "RBI has commenced the process to ascertain the facts from all the companies which appear to have unauthorisedly accept ..
Crop loans waived in Telangana
...........According to an official press release, the Cabinet has decided to "impress upon" the Reserve Bank of India (RBI) to consider other districts also for loan reschedulement "in view of the wide spread damage to crops in the last five years". It had directed the state finance secretary to rush to Mumbai to discuss the matter with the RBI........
Concern in RS over rising number of bank loan defaults
JD(U) on Tuesday raised concern in Rajya Sabha over increasing number loan defaults in the country while referring to the CBI arrest of a bank CMD for bribery for not converting the outstanding loan of a private company into a Non-Performing Asset (NPA). Raising the issue during Zero Hour, K C Tyagi said ever since nationalisation of banks in the late 60s, "several lakh crores were due on capitalists"......
Bankers may Ask EC to Ban Loan Waivers
..............“In Indian Banks' Association (IBA), there is a thinking whether we can ask the Election Commissioner to debar political parties from making any such announcements because if other states also start following this model, it will become dangerous for the banking system,“ said CVR Rajendran, CMD of Andhra Bank......
Read - ET
Sinha: A Suitable Innings
.........Sinha, 62, the first person to be at the helm of the regulator for more than three years since DR Mehta, introduced several major reforms after he took over on February 18, 2011. His latest pitch for tax benefits for Real Estate Investment Trusts, or REITs, was promptly cleared by the new government. This is on the heels of forming a long-term policy for the mutual fund industry. Here's a look at some of the key changes introduced by Sinha over the past four years.....
Read - ET
Tuesday, August 12, 2014
Why expecting Raghuram Rajan to do the Chicago Way is Foolish
RBI says separating debt mgmt may compromise monetary policy
Read - FPJ
रिझर्व्ह बॅंकेची स्वायत्तता अबाधितच हवी - डॉ. जे. एफ. पाटील
Black box monetary policy of August ’14 - Charan Singh
..........The reading of the monetary policy statement, with just two fan charts, clearly indicates that RBI is embarking on a regime of implicit inflation targeting, even if not explicitly stated. The hallmark of inflation targeting is transparency and clear communication. In view of the shrinking volume of information in the recent months that was traditionally released earlier along with the monetary policy, probably there is need to regularly have .........
There is big business in ‘small change’
.............“We have to buy coins. Otherwise our business will be affected. Coins in the denominations of Re.1, Rs.2 and Rs.5 are hard to come by, the reason why we rely on commission agents,” says R. Karunanidhi, manager of a restaurant. Every morning, he makes a trip to Yanaikkal where coin traders assemble. For coins worth Rs.100, the commission is Rs.10. For people like N. Peer Mohamed who sells coffee near the district court complex, it is a struggle to tender exact ‘change’ to customers, particularly during the peak hours in the mornings and evenings. “These days, everybody comes with a currency note. Since banks don’t give coins, I find it tough to meet the demand for one and two rupee coins. Many times I tell the customers to round off their bill for want of coins,” he says........
No one else but Mahatma Gandhi on currency notes: Rajan
.............."There are so many great Indians, but of course he (Gandhi) stands above head and shoulders above every one. There are many great Indians that we could get on the notes. But I sense that almost anybody else would be controversial," the Governor said, replying to a question on why we should not have the scientist Homi Bhabha or the poet Rabindranath Tagore on the rupee notes. ..........
RBI will simplify KYC norms: Rajan
RBI governor Raghuram Rajan has said that he would simplify know your customer norms, nudge banks on simple products and be “agnostic“ on the means employed to reach remote customers to ensure bank accounts for all.........
Read - TOI
Read - TOI
RBI transfers almost entire surplus to govt
...........Among other things, the committee had recommended that the present level of RBI reserves is sufficient for monetary stabilisation and the central bank can afford not to add to the reserves. Financial ministry officials had highlighted the committee’s recommendations to the central bank. The RBI had, however, said that to implement the committee’s recommendations, which involves changes in the format of the balance sheet and income statement would require the approval of the Central amendments to RBI Act, 1934...........
Banks Need Not Report Individual International Immovable Property Buys: RBI
.........However, the RBI on Monday clarified that the requirement of the "post facto reporting stands withdrawn". Earlier in June this year, the apex bank had raised the remittance limit for individuals to $125,000 per year from previous limit of $75,000 and later on eased it further by allowing the use of same for buying immovable property overseas...........
RBI to let NRIs buy property jointly with foreign spouse
.....Currently if an NRI wants to buy a house or any other real estate as a joint property with a foreign citizen spouse it is dealt as a special one needing a prior permission from the RBI on a case-by-case basis. But RBI executive director, G Padmanabhan has said he has asked for a review of these rules. “This is an issue that requires examination in consultation with the Government of India. In fact, I have directed a comprehensive review of FEMA 21(notification) under which such transactions are dealt with,” he said.....
‘Crony capitalism hampers economic growth’
.............“By killing transparency and competition, crony capitalism is harmful to free enterprise, opportunity, and economic growth,” .........
Guv flays nexus between ‘crooked politician and corrupt businessman’
...........“By killing transparency and competition, crony capitalism is harmful to free enterprise, opportunity, and economic growth. And by substituting special interests for the public interest, it is harmful to democratic expression. If there is some truth to these perceptions of crony capitalism, a natural question is why people tolerate it. Why do they vote for the venal politician who perpetuates it?”........
Financial inclusion will reduce corruption: RBI governor
.............."When fully rolled out, I believe it will give the poor the choice and respect as well as the services they had to beg for in the past," Rajan said, adding that financial inclusion will be an important part of government's and Reserve Bank's plans for the coming years. .......
No differences with government on financial inclusion, says Raghuram Rajan
................Reserve Bank of India (RBI) governor Raghuram Rajan on Sunday, clarified that there has been no difference of opinion between the government and the banking regulator on the implementation of the ambitious financial inclusion scheme – a pet project of Prime Minister Narendra Modi – likely to be unveiled on August 15. The RBI, however, was not in the favour of an overdraft facility of Rs 5,000 per account........
Higher RBI Dividend may Keep Rates in Check
Reserve Bank of India governor Raghuram Rajan may not have given in to calls of an interest rate cut, but by transferring about Rs. 53,000 crore surplus to the government, up two-thirds from previous year, he may have ensured that rates do not rise. On Monday, the ten-year new benchmark bond yields fell about five basis points to 8.60%, prompting some amount of bullishness. Bond yields and prices move in opposite direction........
Read - ET
Read - ET
Basic suite of products by banks, key to financial inclusion: Rajan
............In order to draw in the poor, he said, the products should address their needs — a safe place to save, a reliable way to send and receive money, a quick way to borrow in times of need or to escape the clutches of the moneylender, easy-to-understand accident, life and health insurance and an avenue to engage in saving for the old age. “The RBI is going to nudge banks to offer a basic suite of products to address financial needs.’’ The RBI Governor said that de-monetisation was often cited as a solution to get black money out of the system, “but the clever find ways around it.’’..........
India’s inflation fight starts in the kitchen
......."India's inflation is structural in nature, stemming largely from supply constraints, especially in food and infrastructure. While monetary policy remains the first line of defense, a lasting solution to India's inflation lies in real sector solutions like improving and expanding infrastructure and getting its food policies right," Duvvuri Subbarao, RBI's former governor, told CNBC..........
Will the new financial inclusion plan work?
..............The second phase of financial inclusion talks about a ‘pension scheme’ to be made available to the identified beneficiaries in the unorganised sector and providing micro-insurance products to them through nationalised insurance companies. So what can be done to make CFIP successful? The government has allowed a number of agencies to operate as BCs like corporate BCs, Kirana shopkeepers and daak sevaks, in addition to individuals/organisations operating as BCs. RBI is planning to allow the proposed small and payment banks to function as BCs. BCAs to be deployed will be ‘sons of the soil’ who can win the trust of the rural people. But the success of the BC model will depend on ...........
PSU banks’ mergers
Once again, rumours of PSU banks getting merged is doing the rounds. This is just a stop-gap tactic of the ministry of finance. PSU bank mergers will not solve the problem of bad loans in banking. Special Debt Recovery Tribunals, Sarfaesi Act, and Assets Reconstruction Companies—all have failed to recover bad loans. This is because banks were on loan-giving sprees for the last 10 years. The mere size of a bank is not important. It is the health of the bank's balance sheet that matters. Merging PSU banks will reduce promotion opportunities to bank executives as top and upper-middle management posts will be reduced. The government will also not be able to accommodate many on bank boards. This rumour looks set to die in few days. - Sudhir Keshav Bhave, Mumbai
Regulate public sector banks
The comments in the editorial “One bad apple?” (August 8) are prejudiced against public sector banks and biased in favour of privatisation. The manner in which you have argued for the implementation of the PJ Nayak Committee’s recommendations makes this clear. The Nayak Committee has recommended repeal of the Bank Nationalisation Act and SBI Act, which is preposterous given the unparalleled contribution of PSBs to the economic development of the country. The banking system was insulated from the recent global financial tsunami only because our banks were predominantly under the public sector. Further, given the present economic scenario of stagflation, PSBs have a great role to play in not only achieving total financial inclusion but catering to the needs of all segments of the economy. You have linked the SK Jain bribery episode to the inadequate pay packets of CMDs. While this needs to be substantially increased, emoluments alone do not guarantee integrity. What PSBs need is better regulation and monitoring by the Government and the RBI and not de-regulation and private control. The Syndicate Bank-SK Jain bribery episode is another reminder of the need to plug the loopholes in the banking system to weed out corruption. In this context, t the Nayak Committee recommendations of distancing the Government from PSBs must not be given importance.
- CH Venkatachalam, Gen Sec, All-India Bank Employees’ Association
Govt mulls law to give banks more muscle
................."Bank will be able to induct a new management if a company is unable to pay. The name-and-shame policy might be adopted for wilful defaulters. Assets on which security was not deposited could also be seized. For recovery of assets, banks should be able to look at other bank accounts as well. Defaulters often divert funds to other banks,"......
Indiabulls AGM Seals Promoter Split
............Meanwhile, shareholders also inducted two former bankers, KC Chakrabarty, the former deputy governor of the Reserve Bank of India and RM Malla, former chairman of IDBI Bank. At least one of the proposals, to remove independent director Joginder Singh Kataria was met with disapproval from the public institutional shareholders, 70 per cent of whom voted against the proposal..........
Mobile banking transactions: ICICI Bank crosses Rs 1,000-cr mark a month
..........It is not only the urban consumers that are banking on mobile phones but even bank customers in the rural area have also been transacting on mobile phones. The lender had launched, a text message based service for the un-banked populations and has that is mainly used in the rural area.............
United Bank starts naming and shaming big-ticket defaulters
..........More such unwanted publicity is in store for many big-ticket loan-takers whose accounts have turned bad loans (or NPAs, non-performing assets, in banking parlance). So far, Bipin Vohra of SPS group, Sandip Jhunjhunwala of Rei Agro, and Manoj Jain of Jain Infraprojects have figured in the bank’s zeal to humiliate industrialists by placing advertisements, carrying picture of directors on the board of defaulting companies. A prominent absentee in the names published so far is Vijay Mallya, the bank’s most high-profile defaulter. While United Bank has gone after Mallya with great enthusiasm in trying to recover some of the Rs400 crore lent to Kingfisher Airlines, his name doesn’t figure in the bank’s list of wilful defaulters as on June-end.........
Scrutiny of bad loans set to increase
......RBI is also looking at creating a separate category for borrowers considered “non-cooperative” and intends to make it tougher and more expensive for such borrowers to borrow from the banking system. “We are looking at our own definition of non-cooperative defaulter and trying to see how we can make it operational. Non-cooperative defaulters may not be in violation of the laws but we have this genre of promoters who hold up collections at every court using every instrument,” said Rajan. “That’s perfectly legal but from the perspective of the financial system it’s a problem because it can take years to collect. So we are saying that you are not a criminal but you are a financial risk. From that perspective, can we increase the cost of any new loans made to that person? Hopefully that makes the person think twice. So there is a financial stability angle there,” ...............
Bad loans & damage control
...........Given the recent controversies, there is a need to ensure that big-ticket loans are sanctioned by the boards of the banks only. The credit appraisal system can also be improved if appraisal teams are organised around industrial segments rather than geographies as is still the practice in many PSBs, leading to non-specialist industry credit officers. Why should each bank finance every industrial segment? ..........
IDBI Bank defends lending to Kingfisher
.............Raghavan, however, defended the bank’s decision to disburse the loan to Kingfisher Airlines during 2008-09. “The CBI enquiry relates to the advance made in 2008-09. This was the time when Kingfisher was doing well,” Raghavan said even as IDBI Bank’s share tumbled 5 per cent on the NSE to touch a low of Rs 79.35 amid CBI launching probe into the bank’s Rs 950 crore loan to the debt laden airlines.........
SBI staff threaten closure
................“Our anger is directed towards the government as it cannot ensure our safety and security although we have come here to serve the people. In the past year alone, three SBI officials have been abducted from Garo hills,” ...........
Deutsche Bank India HR head to join Kotak Bank
Makarand Khatavkar, MD & head of HR at Deutsche Bank Group in India, is believed to have put in his papers.Khatavkar, who has been with Deutsche Bank for a decade, is believed to be joining Kotak Mahindra Bank as its HR head. Subhro Bhaduri, who was earlier heading this function at Kotak Mahindra Bank, has joined Aditya Birla Group as chief people officer of its financial services division. Although there is still time for the Deutsche Bank to take a decision on a new HR leader, it is quite likely that the candidate would come from within the bank,given the policies and culture of multinationals.Watch this space for more.
TOI
TOI
IDBI Bank to open 19 more branches in Odisha
..............The bank CMD today opened a zonal office in the city, aimed at empowering its regional network and encouraging business opportunities in the region. “The establishment of our zonal office complements and supplements the strengthening of our presence in the state. The bank’s initiative today is a testament to our commitment to empower the zones to bring in unprecedented financial solutions to our customers,” said Raghavan.........
New TDS procedure
..............Is the Government so bankrupt of ideas for raising funds that they are now resorting to taxing clerical errors? If so, then I think tax paying citizens have a right to put the Government in the docks for all the taxes collected and grossly misused/ abused as reported by the Comptroller and Auditor General (CAG) and various exposes, which come out in the media from time to time. Because those errors of omission and commission (deliberate or otherwise) are not clerical they are made by highly educated and qualified people in Government!.....
Mr Sinha, did SEBI make the FM aware of these cases of brazen price rigging?
..............This is a lot of taxpayers’ money and nobody knows if SEBI is truly looking at cases triggered by the systems, if at all, let alone punishing offenders and compensating minority shareholders. Nobody knows how effective SEBI’s surveillance system is either...........
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