.............The bank is targeting a growth of 40-50% in advances and deposits in the next two years. In the year ended 31 March, its net loans grew 54% while deposits rose 39%. Historically, most RBL’s branches were located in Maharashtra and Karnataka, earning it the label of a regional lender. Now, it is working to shed that image, hiring McCann Worldgroup to help with a rebranding. “McCann has helped us in changing our brand name and logo to RBL Bank to compliment the personality of a modern bank that we have been building over the past four years,” Ahuja 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.
Wednesday, July 2, 2014
Experienced Finance Hands on State Bank of India Board
For a long time, the State Bank of India board had industrialists representing shareholders on it. But with the change of government, even this tradition seems to be changing. Some experienced finance hands are on board to guide it -MD Mallya, former CMD of Bank of Baroda and Bank of Maharashtra, and Sunil Mehta, who had represented AIG in the country. As the SBI prepares to take advantage of a likely recovery in the economy, the wisdom of the wizards should help it avoid bumps.
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Finance ministry looking at public banks' consolidation
........"There has been some discussion, but the ministry wants to tread cautiously because of complex issues such as what will happen to the shareholding pattern and employees after the merger of two banks," said a finance ministry official who did not wish to be identified. It might start by merging the State Bank of India (SBI)'s five subsidiaries - State Bank of Hyderabad, State Bank of Mysore, State Bank of Bikaner & Jaipur, State Bank of Patiala and State Bank of Travancore - into the parent. "I think this government is as keen on the consolidation as the previous government was, but the problem is ground realities........
AIBEA opposes PJ Nayak panel proposals
The Government should decline to accept the adverse recommendations of PJ Nayak Committee which was set up by the Reserve Bank of India, says the All India Bank Employees’ Association (AIBEA). AIBEA is the largest trade union body representing about half-a-million bank employees. In its pre-budget memorandum to the Union Finance Minister, it has also demanded that the Government holding in the public sector banks should not be reduced below 51 per cent, and that the governance board of PSBs should be enlarged, and strengthened throught the appointment of professional persons from various fields of interest........
Mobile money and digitized payments have few takers
..............The Digitized Government Payments Study is a qualitative study with government-payment beneficiaries across four districts in Maharashtra conducted during the 13-23 December 2013 period, focusing on the potential for digital government payments to expand financial inclusion.................
Will the Reserve Bank Lift The Veil On Corporate Treasuries?
.......“Some of the corporate treasuries are larger than many banks' treasury operations. Their large operations do have an impact in financial markets. Those companies can take large positions domestically as well as through their offshore entities.“ The central bank bore the brunt of that set-up last year when all its measures to arrest speculation on currency by banks did not yield much result...........
Finmin, RBI & Sebi in Talks
......Talks are on between the finance ministry, Securities & Exchange Board of India and Reserve Bank of India over the proposal, said a senior official with knowledge of the plan. The official said such a move makes sense as the overall investment limit for foreign funds in government bonds will not be changed. It will instead allow investors who want the bonds to acquire them while leading to an overall lowering of bond yields and greater liquidity. RBI has been uncomfortable with allowing.............
IIM Ahmedabad raises Rs 16 cr from Corporates, Govt. bodies for research
.........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..............
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
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- A SESHAN Mumbai
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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.............
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