...“You have the three Vs of Big Data — volume, velocity and variety. There is a huge opportunity to leverage Big Data for sustainable business growth and improving customer engagement and customer intimacy,” feels G. Padmanabhan, Executive Director, RBI. He adds that banks have to learn about innovation from the likes of Amazon, Flipkart, Google, Twitter, Facebook, Nintendo Wii or a Microsoft Xbox. The question, he says, is: can banking in India become the ultimate customer experience?...............
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.
Monday, October 7, 2013
With Eye on Succession Planning, Axis Bank Reshuffles its Top Deck
Bank CEO Shikha Sharma rejigs key roles to ensure that top talent gets broader exposure, aims to put in place a second rung
.......“This
has not been triggered by any event. Switching roles gives an
individual a well rounded exposure. One has to do succession planning,
which this bank lacked in the past,” said Sharma, who is also the bank’s
managing director. “This is part of the reorganisation planned at the
beginning of the year and a move towards leadership development.”..........
Women’s co-op bank builds check dams
.......The
Mann Deshi Mahila Sahakari Bank Ltd., founded by social activist
Chetana Sinha, has set up check dams at Fulkoti, Shirsav and Mhaswad, at
a total cost of Rs 1 crore. The state government had provided the
funds, but the bank implemented the project. These check dams are now
expected to benefit over 20 villages in the area............
Read - TOI
Keep banking, industry separate: Sinha-led panel
....The committee would like Reserve Bank of India to have a mechanism of incentive/ disincentive in place so that this mandate/stipulation could be strictly enforced and it does not remain only on paper, as is the case now. For every three branches in urban areas, there must be a branch in a rural area. Permission to open branches could be given in lots of four at a time which would enable RBI to properly enforce this norm,’’ ...........
7 new bank licences coming, says FM
......Addressing a function at the State Bank of Mysore, Chidambaram said the new banks should not try to become clones of existing banks. “We don’t want the seven of them to look like each other with different mastheads. We want each one of them to cater to the needs of a special group of customers. You will have competition, efficiency and progress only if people attempt different things and do things differently,” he added. Though the finance minister didn’t elaborate, the RBI had earlier talked about differentiated licensing on the lines of the US and Singapore..........
K C Chakrabarty says only provisional list of new banks by January
........"Let me clarify, no new bank will come by January. A provisional list of applicants who are eligible to get a licence will be decided in January. New banks will take at least two years to come,"............
A case for stake dilution in PSBs
.....It is a matter of fact that on the one hand, the dominance of PSU banks has contributed to all-round growth for nearly 45 years and financial stability in the wake of global financial crises, while on the other, budgetary constraints as well as the shareholding cap fixed by the government at 51 per cent, and meeting Capital Adequacy Ratio (CAR) norms, has cast a heavy financial burden on the central government. ..........
Raghuram Rajan's new brain-trust
.......In what is being seen as a move to induct new but vastly experienced people into policy making and the regulation framework, Rajan has tried to balance the need for new thoughts and experience. RBI watchers say these appointments represent a significant step forward in central banking governance and policy actions...........
New banks will mean little to customers
.........In response to complaints of poor customer service or malpractices, K.C.Chakrabarty, Deputy Governor of the RBI, has just one advice: change your bank. As explained in the first paragraph, this is impractical. He also admits that the RBI has no mechanism or framework for customer protection. Nobody in the Bimal Jalan committee is likely to speak powerfully for customers. I wait for the day when Raghuram Rajan, the new RBI governor, will first use the word "financial conduct" in one of his statements. Until then, consumers will have little to look forward to in the new bank licences.
P Chidambaram inaugurates bank at his birth place; turns emotional
......."After opening 2,131 branches allover the world, the bank, founded by my grandfather, had come to this place. There is already one Indian Overseas Bank branch here but it needed one more bank for development.. Because of my attachment to this place, I am moved today." .........
Mandarins of money
.........For a contemporary feel, the book brings into public glare a major controversial episode in the RBI’s early history—the disagreement between Sir James Grigg, ICS, the finance member of the viceroy’s executive council, and RBI’s first governor, Sir Osborne Smith. Sir James Taylor, who was RBI’s deputy governor then, was also from the ICS and the two seem to have ganged up against Smith, a professional banker. Interestingly, this episode barely finds mention in the official history of the RBI, which has chosen to euphemistically term it a case of “temperamental incompatibility”..........
Time to be optimistic?
.......The government’s desire to fund the current account by whatever means is one of the reasons for the high level of short-term debt. Policy measures justified on expediency have a flip side, which is becoming obvious. In short, the picture might be less gloomy but the external account is still not out of the woods.
SBI lags in business, profits per employee: RBI report
State Bank of India is number one in many aspects but when it comes to business and profits per employee, the country's largest lender ranks below the national average, says a Reserve Bank report. As per the latest data on Indian banking sector, the business per employee of SBI in 2012-13 was Rs 9.43 crore, while the all banks' aggregate was Rs 12.13 crore. Every employee on an average contributed Rs 6.5 lakh to the bank's profit in the last fiscal, according to 'A Profile of Banks: 2012-13', released by RBI. ............
Scratch your head about interest rates
.........We have now been told something that is stranger still. North Block and RBI have come together and want to cajole public sector banks to give cheap loans to selected sectors, especially consumer durables, and banks will be provided additional capital infusion of more than the budgeted Rs 14,000 crores to ensure this............
Read - ET
Banks tighten scrutiny on loan recasts
.......“An investigative audit of the books of the company seeking CDR is important,” said one of the bankers. “Banks will soon write to RBI (Reserve Bank of India) on this.” The core group, which meets twice a year, consists of State Bank of India, the nation’s largest lender, ICICI Bank Ltd, Punjab National Bank and Bank of India, among a few others. Changes in the CDR rules can only be made by the banking regulator..........
Andhra MFIs in a fix as Bill gathers dust
..........."In legal terms, there are two types of microfinance companies - NBFC MFI and NGO MFI. Almost 90 per cent of microfinance business in India is conducted by NBFC MFIs and they are squarely under RBI's regulations. NGO MFIs are currently not under RBI's regulations but the Bill proposes to bring these companies under the central bank's purview. In Andhra Pradesh, the state government's Act has still not been repealed. So, it is material for microfinance companies that have operations in that state. But nationally, RBI is the regulator for the sector," said a senior MFIN official.................
‘ZERO INTEREST SCHEMES’: WHOSE INTEREST?
........RBI’s move is anything but vindictive. Notably, there are many other schemes in the market that are still operating. With these smart moves, RBI has tried to solve a few problems. Evidently, real estate and consumer goods industries are two very large sectors having significant impact on economy of India. These are interest sensitive industries that run primarily on loans. Recent policy decisions by RBI clearly indicate that fighting inflation will be its main objective. Accordingly,..............
Read - The Pioneer
Confusion on legitimacy of 'Sharia-compliant'
It seems that the state may lock horns with the RBI over the status of the Sharia-compliant Cheraman Financial Services Limited (CFSL). Coming down heavily on the state government’s initiative in starting CFSL, BJP leader Subramanian Swamy said that the “RBI has not approved any Islamic/ Sharia institution anywhere in the country”. RBI, in a reply to an RTI application filed by Swamy, stated that the Central Bank has not given licence to any financial entity in Kerala to start an Islamic Bank............
Most MSMEs lack access to banks & financial institutions: Assocham study
Only about 34 per cent of companies operating in the micro, small and medium enterprises sector have access to banks and financial institutions, while the rest raise money through informal channels, says a survey. "Lack of adequate finance due to shortage of organised lending from banks and other formal sources together with absence of transparency regarding their financial condition is proving to be a stumbling block in growth of MSMEs in India," the survey by industry body Assocham and Resurgent India said.........
Gold loans no more quick and easy for you & me
......Despite their higher interest rates in comparison with banks, borrowers preferred gold loan NBFCs for the quick and hassle-free liquidity they provided. The central bank has not just added more procedures to the disbursal, it also does not want NBFCs to advertise any claims of ‘instant processing’. It has prohibited them from issuing ‘misleading advertisements’ claiming availability of loans in two to three minutes.........
Subscribe to:
Posts (Atom)