.........As its fundraising and development efforts gain traction, IIM Ahmedabad, today, made its first announcement relating to support that has been committed by and agreed to with leaders in corporate and Government institutions. Put together, these collaborations will pool in over Rs. 16 crores to fund cutting-edge research and award scholarships to meritorious students. “We have some of the brightest alumni in this country and abroad, who feel strongly a desire to contribute to their Alma Mater. For example, Raghuram Rajan, Governor, RBI; KV Kamath, Chairman, ICICI Bank; Dr. Harsh Kumar Bhanwala, Chairman, NABARD; and KV Srinivasan, CEO, Reliance Capital are all a part of the distinguished IIMA alumni group who came forward to contribute and maintain IIMA as the premier institution for management education and research,” said Prof. Ashish Nanda, Director, IIM Ahmedabad..............
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.
Wednesday, July 2, 2014
Aiming to trim financial burden, SBI to open 5K new ATMs
Even as the uncertainty over charging users for ATM transactions continues, nation's largest lender State Bank of India today said it will be launching up to 5,000 new ATMs this fiscal. The move is aimed at helping improve the debit cards-to- ATMs ratio for the bank and may also possibly help it save money expended on ATM interchange fees.....
Prod RBI to allow currency swap for JBIC: Tokyo to govt
........This will help JBIC offer long-term low-interest rupee loans for projects not connected with the Delhi-Mumbai Industrial Corridor (DMIC), where it has 26% stake. “There is huge demand for rupee-based loans in India and JBIC can offer dollar or Yen funds through a swap. However, RBI prohibits this. If such transactions are allowed, JBIC would be able to lend at much lower interest rates because of its high credit rating. ADB and IFC are already allowed to do such swaps without limitations,” .................
NBFC-MFIs: average base rate pegged at 10.09%
..........In February, the RBI, in its circular relating to the pricing of credit, said the interest rates charged by an NBFC-MFI to its borrowers will be the lower of: the cost of funds plus margin; or the average base rate of the five largest commercial banks by assets multiplied by 2.75. The average of the base rates of the five largest commercial banks is advised by the Reserve Bank on the last working day of the previous quarter, and the same determines interest rates for the ensuing quarter...........
No magic wand to bring down bad loans: SBI chief
....."We are seeing some lessening of stress but there is no magic wand, we have to work through our way. As the GDP goes up, demand goes up, the capital market will begin to respond, people are able to raise equity, we will see things becoming better.".....
Small borrowers: banks may have to give more loans
...........“We are looking at segregating the housing exposure into categories within the overall housing loan portfolio of banks. Talks are on to give banks specific lending targets for housing loans up to Rs.5 lakh for EWS and LIG,” said G.S. Sandhu, secretary, department of financial services in the finance ministry. Currently, home loans up to Rs.25 lakh in metros and up to Rs.15 lakh in non-metros are classified as priority sector loans by the Reserve Bank of India (RBI); however,...............
No Bank Credit for Hoarders
The Centre has instructed the states to act against grain hoarders. In the distant past, RBI's selective credit control (SCC) operated in sync with the government's stock control stipulations. During the Gulf crisis, it was given up as it was seen as directed credit. However, directed credit still prevails, such as targets for priority sector advances. The SCC was operated with three instruments: minimum margin, level of credit and minimum rate of interest. So, minimum margin alone can ensure that bank credit is not used for hoarding commodities in short supply . The RBI should give the idea some thought.
- A SESHAN Mumbai
ET
- A SESHAN Mumbai
ET
Loan disbursal: banks told to do an early eligibility test
......V. Raveendran, Assistant General Manager, Reserve Bank of India, who reviewed the District Credit Plan in detail, said the reporting system of banking statistics witnessed a commendable improvement in Kozhikode, especially in the 96 per cent submission of lead bank returns (LBR). Expressing satisfaction over the overall performance of the banking system, he said the district could have performed better with a little more attention on the Other Priority Sectors..........
Celebrate credit quality transparency initiatives
......................Along the same lines, RBI’s move to force banks to detect stress early (and penalise if not done) has to be specially commended, though this too should have been done years ago. There is no reliable estimate of what fraction of bank loans fall under SMA2, i.e. borrowers who pay between 61 and 90 days and technically avoid being called non-performing, and banks are understandably tight-lipped about this (many have not bothered to record this properly before). But RBI should mandate banks to disclose that number on a quarterly basis. And then, .............
Impediments in Recovery of Non-performing Assets
Recently, there have been some judicial pronouncements by the apex court determining the scope of powers of enforcement of securities without the intervention of the courts, by the banks and FIs under the SARFAESI Act. The apex court has reiterated the need to protect the interest of borrowers, and emphasized that the exercise of extraordinary powers of recovery , by banks and FIs must be in compliance with the provisions of the SARFAESI Act.............
Read - ET
Read - ET
Now, Telangana to knock on the doors of RBI for crop loan recast
..........Caught in the crossfire are the banks whose NPAs would rise dramatically in the current quarter if the RBI does not come to their rescue. Close to Rs 10,000 crore in Andhra and around Rs 5,000 crore loans in Telangana are expected to freshly add to the NPAs from this month onwards as the short-term production loans given in April last year remained unpaid for the last 90 days, according to officials. “This is going to be a big setback for banks because they will have to make a provisioning for the fresh NPAs that will further affect their profitability. The interest calculated so far on these loans will have to be returned now. This will further dent their performance,” ............
Tuesday, July 1, 2014
Budget 2014- 15: Nightmare or relief? - Dr.S.S.Tarapore
..........While powerful lobbies would effectively articulate their needs, the plea of the common person would be that inflation not be inflicted upon them and they be spared electric shocks of punitive measures which are portrayed as rectification of historical distortions.
Read - FPJ
Make Customer Service Ratio as Part of RBI's evaluation of banks - Dr.T.V.Gopalakrishnan
..........Unfortunately some of the private secctor banks' staff are not even aware of the existene of an Ombudsman or a Regulator in the name of RBI and many times they express their ignorance by saying with all innocence that they have not seen such a bank in their vicinity. Whom to blame.............
Some lessons from the past
Symbiosis Institute of Business Management (SIBM), Bengaluru, recently played host to Rabi N Mishra, Chief General Manager, Reserve Bank of India. Rabi, an economist by learning and a senior financial specialist by profession, is a Harvard University alumnus and currently holds the position of an advisor, Financial Stability Department, Central Bank of Oman (on secondment from RBI).During an interactive session with the management students, he..............
Uncertainty looms over RBI dy governors appointment
................Khan who was an executive director at the central bank, was promoted as deputy governor on 4 July 2011 and was given a three year term. As DG, he has several important portfolios, like foreign exchange, external investments and operations, internal debt management, among others. So far it is not clear if Khan will be reappointed for another two years. Sources indicate there is a possibility that he may get an extension for three to six months........
PenOp should be 'on tap'
The previous government was misled on pension issue. The blind introduction of NPS through back-door for a section of central government employees under external pressure, then forcing like-minded state governments to follow suit, interference in the implementation of existing funded pension schemes in several public sector organisations are all the result of this. The new government should review the whole issue. As regards pension option, it should be available ‘on tap’ subject to the same terms first optees were given the switch over from PF to pension.
- M.G.Warrier
Sampathraman elected president FKCCI
............Sampathraman had worked in Reserve Bank of India (RBI), Nagpur and Kirloskar Oil Engines Ltd, Pune. Currently, he is the Chairman and Managing Director of DPK Engineers (manufacturer of diesel power generating sets) in Bangalore..........
RBI Quiz Contests for Students 2014
The Reserve Bank of India to conduct quiz competitions for school students as a part of its efforts towards financial literacy in Bangalore, Mangalore and Mysore in the months of July and August...............
World outside RBI
My View on "Fit-to-play the second inning................":
Best wishes to Ramachandra Shelar and Milind Khopkar when they are joining us. My own experience is, if one is healthy and the environment around is peaceful, there is enough ‘work’ to do outside RBI. Wish both of them and all other RBI colleagues who are retiring today (June 30, 2014), a happy, healthy, peaceful, active post-retirement life. To continue the interaction, each one of them is invited to regularly visit VITALINFO and to join Madan Gauria’s EXRBITES Group (For any suggestion/problem/assistance or any further information you want about the Group please feel free to contact Shri Madan Gauria on madan.gauria@yahoo.com)
- M.G.Warrier
Tax exemption limit under 80C may rise to Rs 2 lakh
.............Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80 CCC of the Income-Tax Act. Sources said the revenue department is assessing the burden on the exchequer in case of increase in the benefit limit. The announcement is expected in the Budget................
Subscribe to:
Posts (Atom)