Banks have been going slow in raising capital before the commencement of the new fiscal as many have already raised funds before this year, and the hiking of yields recently has made the prospects of selling bonds poor, according to merchant bankers. Normally during March end banks swarm the market with bond issues as thy… Read More »
The Central Government has stated that it does not have any objection to public sector banks venturing into non-banking segments. Financial Services Secretary, R. Gopalan said, “There is no issue at all. We have never asked and there is no thinking in the ministry. The banks have to expand in various financial product activities so… Read More »
As a step towards fulfilling the year end targets, banks have taken recourse to increasing interest rates on bulk deposits instead of retail deposits.
State Bank of India (SBI) said it is losing the banking opportunities in the Middle East due to lack of regulations on Islamic banking in India. The Middle East is viewed as a major market for these products, due to high wealth in this area.
The Reserve Bank of India intends to bring in a new set of rules on the Business Correspondent (BC) system as a step ahead in its aim of speeding up financial inclusion in all unbanked parts of India. The BC system was introduced by the RBI in 2006 in which NBFCs that don’t accept public… Read More »
State Bank of India (SBI) is intending to raise about Rs 10,000-20,000 crore by the way of rights issue and is sure that a proposal along these lines might be announced in the budget. OP Bhatt, chairman of SBI told during the next 5 years, SBI will require Rs 40,000-50,000-crore capital, along with tier-II capital… Read More »
The Asian Development Bank (ADB) will loan $ 300-million to help India grow its micro, small and medium enterprises, the bank said in a statement here. The statement said, “The ADB Board of Directors today approved a sovereign loan of $ 50-million and a partial credit guarantee of up to $ 250-million for the micro,… Read More »
Leading bankers cheered the Union Budget 2010-11, especially the steps taken on farm loan repayment, capital infusion in PSBs and interest rate funding to underprivileged sections, saying that these would improve the health of the system. State Bank of India’s chief financial officer, S S Ranjan, said that the budget was geared towards growth and… Read More »
Pranab Mukherjee’s decision to allow companies and NBFCs to set up private banks in the country has raised the hopes of many like ADAG and Aditya Birla Nuvo. But RBI has expressed its reluctance to ease its norms. Last time RBI has permitted new private banks was in 2002 to Kotak Mahindra Bank and Rabo… Read More »
Jyotivardhan Jaipuria, who is MD & head of India research, Bank of America-Merrill Lynch said that he thinks the banking sector will be an outperformer this year. As the sector is dependent on the economy, it will gain from higher growth. The 3 main factors affecting this sector are credit expansion, lower non-performing loans and… Read More »