Public sector Karnataka Bank Ltd has lent an amount of Rs 1,498 crore to the MSME sector, posting growth of 24 per cent against the stipulated 20 per cent growth target of RBI, senior bank officials said on Monday. This was revealed at the 18th MSME Customers' meet conducted by the bank last week in Bangalore.....
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.
Tuesday, July 23, 2013
Any rate hike by RBI will be a body blow to industry: Kidwai
As the weak rupee raises pressure on RBI to hike interest rates, HSBC country head Naina Lal Kidwai said any increase would be a ‘body blow’ to industry and growth. “I hope that it stays stable because interest rate going up will be a body blow to industry and industrial growth, which is very important, at a very fragile position right now,” Kidwai, who is also the president of industry body FICCI, said in an interview........
RBI may maintain status quo on repo rate, CRR in policy review
..........The predominant view emerging from the poll of 10 bankers, economist and rating agencies indicated that along with inflation and growth, the rupee volatility has also become an important factor for RBI. The central bank will like to monitor the impact of the steps it took last week (July 15). Repo rate is the rate at which RBI lends short-term money to banks, while CRR is a portion of deposits that lenders keep with the RBI which does not attract any interest...........
Finance ministry queries Bank of Maharashtra over 34% increase in lending
............."No rules were changed or loans sanctioned. Our results speak for themselves and we are sure the ministry will be convinced," the bank executive said. Bank of Maharashtra reported a whopping 255% growth in its net profit for the fourth quarter of 2012-13 at 258.99 crore, against 72.83 crore in the year-ago period. The net profit has shown a 76.29% year-on-year growth. A finance ministry official, however, said the government has sought data to analyse whether the bank has followed all due diligence. The official said the bank had been cautioned by the Reserve Bank of India around the second quarter of last fiscal, as it had breached some sectoral norms..............
Government allots Rs 1,300cr to Post Bank
......To meet RBI norms, the postal department proposes to set up a new entity - Post Bank of India - that will have an independent board and separate operations. Apart from independent directors, the board will have representatives from the finance ministry and the postal department. Separate recruitment has been planned to have specialist bankers. While converting the entire postal network would have meant a capital requirement of over Rs 60,000 crore, by setting up a special entity, the fund requirement has been reduced. This, officers said, will also help create a more focused strategy............
The Big Bank Rush
.........A banking licence will allow the group to tap its existing customer base of SMEs and truck operators. “We can give them a working capital facility, and they pay interest only on the amount they draw. Today, we necessarily have to give them term loans, which they draw in full and end up paying interest,” says an official..........
Open to setting up a bank, says Bajaj Finance
......"As per RBI guidelines, we will have 18 months time for such conversion. We have enough the required wherewithal to do the business of banking. Through our current NBFC set-up, we are primarily serving affluent customers. However, we are trying to expand our product kitty to include more customers. We have just entered the rural markets," ...........
RBI puts more curbs on gold imports
........"It shall be incumbent on all nominated banks/nominated agencies to ensure that at least one fifth of every lot of import of gold (in any form/purity including import of gold coins/dore) is exclusively made available for the purpose of export," RBI said in a notification..........
Gold and the CAD
............Gold essentially plays the role of a pre-paid credit card. In the long term, this role of gold can only be curbed if insurance companies develop an effective outreach business model, whereby event insurance is obtainable as easily as at an NBFC window. Even so, the role of gold as a friction reducer in the financial system may persist for a long time. At the end of the day, there is only one solution to the gold problem, and that is by offering financial instruments in exchange for the surrender of gold, from which the incremental demand for gold can be met............
Is curbing gold imports an effective measure?
........Consequently, RBI has been taking steps to curb gold imports, such as hiking the import duty and imposing regulatory restrictions. While this step may be desirable, it may not be necessarily effective. Alternatives for curtailing CAD (a consumption-aided disaster) such as reducing government expenditure exist and might be better. The crucial question is why the government remains hesitant to adopt these measures...............
We will review our options after formal NSE order: Mehul Choksi
.........At 23 per cent, foreign institutional investors’ (FIIs) holding (in Gitanjali) is the largest in any jewellery company in India. FIIs perceived RBI’s gold import restrictions to impact our company, because it’s a global player. However, in fact, our business in the US market has improved in the past few months, thanks to the revival in the overall US economy..........
Will chip-based cards succeed in reducing credit card fraud?
.......The embedded chip is capable of storing and transacting data in an encrypted, tamper-proof format, protecting the cardholder from sundry security threats. The advanced technology apart, the RBI has mandated banks to introduce an additional layer of security at POS terminals as well. Cardholders will be required to enter a unique PIN to complete any transaction.........
Just Retired? Look For Inflation-Beating Returns
The
prospect of retirement often brings some people face to face with the
hard reality that in some months they will not be working anymore. For
many, retirement also means that from then on they have to be careful
about having enough funds that will outlast them. With the rate of
inflation going up at high single digits or, at times, in low double
digits, this could be a daunting task for many as they fail to take judicious steps just at the time of retirement or may be a few months before that happens. Here we will discuss some of the issues that just-retired people or who are on the verge of retirement face and how they should address them................
Read - TOI
Read - TOI
10 financial steps you must take before you retire
Do not put off today what you can not afford to do tomorrow. In spite of the world wide pension crisis and a growing acceptance that we must plan and save for our retirement, the harsh reality is we are actually not saving enough. Research reports reveal that only 15 per cent of the individuals are saving sufficiently for their retired life. Here are a few tips on things to do before you retire so that your retired life is more comfortable and enjoyable..................
Income tax returns: 6 new sections where you can save
Income tax filing due date is getting closer. However, quite a lot of tax filers are still not aware of all the deductions that could be availed of. It is always good to be updated on the latest tax deductions. It helps one in maximizing the tax deductions, hence minimizing the tax to be paid. Let us now look at some of the latest sections available for tax deduction from FY 2012-13 onwards....................
‘Wilful Blind Eyes’ are a threat to banks and financial institutions
.........These wilfully blind eyes operate hands-in-glove with the shoddy characters. They deliberately ignore the obvious and allow them to do their job freely. These wrongdoings could be money laundering, terror financing, insider trading, fraudulent activities and many other such similar criminal acts. If these wilfully blind eyes happen to be employees of a bank or a financial institution, they will be subjecting their organisation to embarrassingly huge compliance, legal and reputation risks and also cause its demise. Institutions can also be wilful blind eyes.............
What is Microcredit?
...The annual interest cap for extending microcredit is pegged at 10-12% that is over and above the cost of borrowing of lenders of microcredit. The limit for extending unsecured loans by RBI is further pegged at INR 50,000. The guidelines also suggests microcredit lenders not to provide loans to individuals who have already availed loan facility from elsewhere. leaving most charging 23-27%...........
Read..........
‘Few Ahmedabad citizens keep emergency funds’
.....The survey’s findings substantiates the Reserve Bank of India’s (RBI)’s recently released annual report, which suggested that the financial savings of Indian households, as a proportion of the gross domestic product (GDP), plummeted to a 20-year low of just about eight per cent in 2011-12. About 90 respondents in Ahmedabad said they have not set up any fund to deal with emergencies such as sudden loss of job, death or a medical emergency in family, natural calamities, delay in income, sudden relocation and other such unpredictable factors..........
Mystery of the missing bank scam accused
The prime accused of the Indira Priyadarshini Mahila Nagarik Cooperative Bank, Umesh Sinha had gone "missing" after creating a political turmoil in Chhattisgarh. Sinha, the then bank manager, had come into the limelight when Congress leaders released a CD on Saturday revealing the transcript of his narco-analysis test conducted in Bangaluru in 2007. The bank manager had reportedly named Chhattisgarh Chief Minister Raman Singh and four of his ministers for receiving huge pay-off after the scam hit..........
Bank exams: eligibility criteria relaxed
.......The relaxations include removing the 60% limit on marks received at graduation, scrapping the computer literacy requirement and raising the maximum age to 30 from 28, the finance ministry said in a release on Monday. All graduates can apply, irrespective of the marks they get............
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