Govt to review FY13 fiscal deficit target
The Government on Thursday said that it will review its fiscal deficit target of 5.1% of GDP for the current fiscal year in its mid-year review of the economy.
The Centre aims to bring down the budget shortfall - the gap between expenditure and revenue collection - from 5.9% of GDP in FY12 to 5.1% or about Rs. 5.13 trillion in the financial year ending in March 2013… Read more
IIP data for June is disappointing: FM
The Union Finance Minister P. Chidambaram has said the Quick Estimates of IIP for June, 2012 are disappointing. The Finance Minister said that it is important to focus on the critical sectors, remove bottlenecks and give a fillip to production… Read more
Citi, CLSA & GS cut India's GDP growth forecast
Citigroup, CLSA and Goldman Sachs have cut their outlook on India's GDP growth for FY13 to 5.4%, 5.5% and 5.7%, respectively, citing weak southwest monsoon and other lingering headwinds such as sticky inflation, high borrowing costs, widening twin deficits and policy inertia… Read more
Definition may indeed be "what," but it certainly is not "why": Bernanke
In many spheres of human endeavor, from science to business to education to economic policy, good decisions depend on good measurement. More subtly, what we decide to measure, or are able to measure, has important effects on the choices we make, since it is natural to focus on those objectives for which we can best estimate and document the effects of our decisions… Read more
RBI relaxes norms for NBFC-MFI
All registered NBFCs intending to convert to NBFC-MFI must seek registration with immediate effect and in any case not later than October 31, 2012, subject to the condition that they shall maintain Net Owned Funds (NOF) at Rs. 3 crore by March 31, 2013 and at Rs. 5 crore by March 31, 2014, failing which they must ensure that lending to the Microfinance sector i.e. individuals, SHGs or JLGs which qualify for loans from MFIs, will be restricted to 10 per cent of the total assets, the RBI said in notification… Read more
We expect NIMs at 3% for FY13: Dena Bank
Yash Ved of IIFL provides the highlights of a media interaction where Nupur Mitra says “MSME has been identified as one of the growth engines for increasing credit portfolio of the Bank”… Read more
Decline in GDP to have deleterious effect on employment
According to CII, the June 2012 IIP numbers are disappointing and are a cause for serious concern. The IIP growth for the month of June 2012 at -1.8% clearly points to a deepening industrial slowdown which could have a long lasting effect on the economy. CII has been highlighting this issue for the last few months… Read more
RBI to launch Rs. 5 coin
The Reserve Bank of India (RBI) will shortly issue Rs. 5 coins in their new shape and size. The obverse of the coin shall bear the Lion Capital of Ashoka Pillar with the legend 'Satyamev Jayate' inscribed below, a RBI release said.
On its left periphery it will bear the word "Bharat" in Hindi and on the right upper periphery the word "India" in English. It shall also bear the denominational value '5' below the Lion Capital, the release said.
IDBI Bank, TISS sign MoU for developments in Ladakh
As part of its commitment towards Corporate Social Responsibility (CSR) initiatives, IDBI Bank has entered into a Memorandum of Understanding (MoU) with Tata Institute of Social Sciences (TISS) for undertaking developmental activities in Ladakh including adoption of a village and developing it as a model village, and other capacity building initiatives for the people of Ladakh region through economic empowerment and improvement of basic services like Healthcare, Education, Sanitation, Drinking Water, etc… Read more
Development Bank of the Philippines partners with TimesofMoney
The Development Bank of the Philippines (DBP) partners with TimesofMoney Ltd. (TOML) through its Remit2Home service to offer Overseas Filipino Workers (OFWs) an easy and secure way to transfer money back home. An agreement to this effect was signed recently at DBP’s head office in Makati, Philippines… Read more
Jet Airways, HDFC Bank to launch JetPrivilege–HDFC Bank Credit Card
Jet Airways’ – JetPrivilege, India’s largest and Freddie’s award winning frequent flyer programme, has partnered with HDFC Bank, India’s second largest private sector bank to launch ‘JetPrivilege–HDFC Bank Credit Card’, an exclusive range of Credit Cards offering unique benefits and rewards in the form of JPMiles… Read more
IDBI Bank launches IDBI Samriddhi CD portal
Anand Sinha, Deputy Governor, Reserve Bank of India launched the country’s first online portal for Certificate of Deposit (CD) called IDBI Samriddhi CD Portal on August 6, 2012, at an event held at IDBI Bank’s Head Office at Mumbai… Read more
IIFL Q1 PAT up 11% QoQ
India Infoline Ltd’s income for the June quarter stood at Rs. 5,826.0 mn, down 8% qoq, up 62% yoy. Profit after Tax at Rs. 522.2 mn, up 11% qoq, up 91% yoy and profit before tax at `820.8 mn, up 13% qoq, up 93% yoy… Read more
SBI Q1 net profit at Rs. 37.51bn
SBI Ltd has posted results for the first quarter ended 30th June, 2012. Its net profit was stood at Rs37.51bn. Its NII was stood at Rs111.19bn. Gross NPAs for Q1 FY13 stood at 4.99% vs 4.44% in the previous quarter while net NPAs stood at 2.22% vs. 1.82% QoQ… Read more
Lakshmi Vilas Bank Q1 net profit at Rs. 252.3 mn
Lakshmi Vilas Bank announced Financial Results for the first quarter ended June 30, 2012. The key highlights of the results are as under. Net Profit for the first quarter ended June 2012 at Rs. 25.23 crore, marginally ahead of Rs. 24.58 crore for the corresponding quarter of the previous financial year… Read more
Indiabulls says Veritas’ Monga demanded money to hold back report
The issue between the Indiabulls Group and Canadian research firm Veritas seems to have escalated with the group saying that it had submitted ‘e-mail evidence’ to the police regarding money demanded by a Veritas analyst for holding back the scathing report published on Thursday.
Stocks of the Indiabulls Group declined after a Veritas Investment Research Corp, in a report, recommended selling all shares in Indiabulls Group on concerns of lack of disclosure and corporate governance, reports said… Read more
RCAM launches unique mobile based services
Reliance Capital Asset Management part of Reliance Capital Ltd, announced the launch of unique mobile based investment initiative that allows investments in mutual funds using mobile phones.
This was announced by Sundeep Sikka, CEO, RCAM. The initiative has been launched in partnership with HSBC… Read more
Fitch affirms Cholamandalam Investment at 'Fitch AA-(ind)'; Outlook stable
Fitch Ratings has affirmed India-based Cholamandalam Investment & Finance Co Ltd's (CIFCL) National Long-Term rating at 'Fitch AA-(ind)' with a Stable Outlook. The agency has also affirmed CIFCL's INR6.75bn subordinated bonds at National Long-Term 'Fitch AA-(ind)'… Read more
ICICI Bank overtakes Bharti Airtel in M-cap
ICICI Bank on Wednesday overtook telecom major Bharti Airtel in market capitalisation to become the 10th most valued firm, reports said.
Bharti Airtel’s market cap suffered a blow after the company’s stocks slumped 6.6% to close at Rs. 274.40 after the company’s 1Q profit slumped 38% YoY to Rs. 762.2 crore… Read more
Chidambaram to meet PSB chiefs on August 18
P Chidambaram, Finance Minister, reportedly to meet public sector banks and financial institutions chiefs on August 18 in Delhi.
According to reports, this meet is significant as the banking sector facing turmoil on various fronts like rising bad loans, human resource problems, threat of drought in several parts of the country is all impacting bank balance sheets… Read more
Standard Chartered buys stake in wind farm
Standard Chartered Bank has acquired stake in a wind farm to source green energy for an office in Chennai, according to reports… Read more
IFC helps improve banking services for farmers in Andhra Pradesh
IFC, a member of the World Bank Group, is helping the Andhra Pradesh State Cooperative Bank design and offer new products for small farmers in Andhra Pradesh, expanding banking services to farmers in India’s fourth-largest state… Read more
Exim Bank to launch $500 mn bond guarantee programme
Export-Import Bank of India (Exim Bank) and IL&FS Financial Services Ltd (IFIN) have signed a memorandum of understanding (MoU) to provide a platform to Indian companies to access the CNH bond markets as well as other international bond markets which are not denominated in USD, Euro and Yen… Read more
EPFO clears stake sale in Reliance Capital AMC
The Employee's Provident Fund Organisation (EPFO) has approved Reliance Capital Asset Management Ltd's plan to sell a 26% stake to Nippon Life Insurance Company, Japan. It also cleared the proposed change in ownership structure.
The Competition Commission of India, SEBI, Reserve Bank of India (RBI) and Pension Fund Regulatory & Development Authority (PFRDA) among others have already approved the deal, which was valued at around Rs. 14.5bn… Read more
SBI revises interest rates on NRE/NRO deposits
State Bank of India has decided to revise downwards the interest rates on NRE/NRO Deposits for tenors of five years and above to 8.50% p.a. from August 07, 2012.
Andhra Bank Q1 net profit up 6%
Andhra Bank has posted a net profit of Rs. 3618.30 mn for the quarter ended June 30, 2012 as compared to Rs. 3857.10 mn for the quarter ended June 30, 2011.
Total Income has increased from Rs. 28511.80 mn for the quarter ended June 30, 2011 to Rs. 33572.20 mn for the quarter ended June 30, 2012.
Barclays appoints Sir David Walker as a non-executive director
Barclays PLC and Barclays Bank PLC announce that Sir David Walker has been appointed as a non-executive director of Barclays with effect from 1 September 2012 and will succeed Marcus Agius as Chairman of Barclays with effect from 1 November 2012… Read more
Barclays appoints Sir David Walker as a non-executive director
Barclays PLC and Barclays Bank PLC announce that Sir David Walker has been appointed as a non-executive Director of Barclays with effect from 1 September 2012 and will succeed Marcus Agius as Chairman of Barclays with effect from 1 November 2012. Marcus Agius will retire as a Director and as Chairman of Barclays with effect from 31 October 2012… Read more
Netgear focuses on SMBs in India
To address the increasing opportunities in the SMB segment and encouraged by the significant growth in its SMB business last fiscal, Netgear, Inc. a global networking company that delivers innovative products to consumers, businesses and service providers, has decided to expand its product portfolio and drive a stronger partner strategy, with the prime focus towards SMBs in India… Read more
If loan modification doesn't work for you? Change is here
You may be someone who tried to modify your mortgage only to end up frustrated because your bank gave you a modification that although made sense for them, didn't really work for you. You've even probably heard where the bank actually offered a homeowner(s) a loan modification that actually increased their monthly mortgage payment… Read more
SEC not to file any charges against Goldman Sachs
The US Securities and Exchange Commission has decided not to file any charges against Goldman Sachs over its sale of subprime mortgage-backed securities… Read more
MUFG under investigation by UK regulator: Reports
An employee of Bank of Tokyo Mitsubishi UFJ (BTMU) in London is being investigated by the UK Financial Services Agency over the issue of possible manipulation of Libor (London interbank offered rate), according to media reports.
The banking unit of Mitsubishi UFJ Financial Group Inc said it has ordered an employee in London to stay home from work, the reports added… Read more
RBA upgrades 2012 GDP growth projection
The Reserve Bank of Australia (RBA) on Friday increased its 2012 GDP growth forecast on stronger-than-expected consumer demand, while saying that sustained strength in the local currency could prove more of a drag on the economy than in the past. Australia's central bank now expects GDP to rise 3.5% in 2012, up from a 3.0% projection made in May, citing stronger-than-expected growth in the first part of the year… Read more
China's trade surplus contracts...Exports, imports slow
China's trade surplus surprisingly shrank in July as export and import growth slowed markedly, raising concern about the state of the world's second-largest economy and its adverse fallout on global growth.
China's trade surplus for the month under review dropped to US$25.1bn from US$31.7bn in June, falling short of estimates for a surplus of US$35.2bn… Read more
Australia’s central bank leaves rates unchanged
Australia’s central bank on Tuesday left interest rates unchanged, as it takes stock of its rate cuts announced in May and June even as persistent strength in the local currency keeps inflation in check… Read more
BOJ maintains status quo on monetary policy
Throughout much of the country, communities are struggling with one of the worst droughts to strike the U.S. in decades. The lack of rain and high temperatures have done considerable damage to crops -- particularly those in the Midwest.
President Obama met with the White House Rural Council to discuss the steps being taken to help farmers, ranchers, and small businesses wrestling with this crisis… Read more
Singapore cuts growth forecast on global slowdown
Singapore cut the upper end of its economic growth forecast for 2012, citing a global slowdown from Europe to China. The Southeast Asian country’s GDP will probably rise 1.5% to 2.5% this year, Prime Minister Lee Hsien Loong said… Read more
South Korea holds rates unchanged
The Bank of Korea kept interest rates at a 14-month low after a surprise cut in July, as policymakers ascertain the impact of the European sovereign debt crisis.
Governor Kim Choong Soo and his board left the benchmark seven-day repurchase rate unchanged at 3%. The decision was unanimous, Kim told reporters, and was predicted by majority of the economists… Read more
No impact on StanChart ratings from NY warning: S&P
Standard and Poor’s on Tuesday said that its ratings on Standard Chartered Plc and its subsidiaries are not immediately affected by the charges made against the UK bank in New York for its Iran transactions… Read more
Moody's maintains Vietnam's 'B1' rating; Outlook negative
Moody's Investors Service says the outlook on Vietnam's B1 foreign and local currency bond ratings remains negative.
According to Moody's latest annual report on Vietnam, "Credit Analysis: Vietnam," the country has made much progress in recovering from a period of macroeconomic instability, but continues to face contingent risks that justify the negative outlook… Read more
Fitch affirms Goldman Sachs India Finance at 'Fitch AAA(ind)'/Stable
Fitch Ratings has affirmed India-based Goldman Sachs (India) Finance Pvt Ltd's (GIFL) National Long-Term rating at 'Fitch AAA(ind)' with a Stable Outlook. A full list of ratings is provided at the end of this commentary… Read more
S&P announces CreditWatch actions on 4 Spanish banks
Standard & Poor's Ratings Services today said it placed on CreditWatch with negative implications its 'BB+' long-term counterparty credit rating on Banco Popular Espanol S.A. (Popular). We also placed on CreditWatch negative our 'B' issue rating on its nondeferrable subordinated debt and our 'CCC+' issue rating on its hybrid debt. We affirmed the 'B' short-term rating on Popular… Read more
APAC Banks' rising leverage pose rating risks: Fitch
Fitch Ratings says in a new report that high or rapidly increasing leverage, together with mounting exposure to China, will constrain upward rating momentum for banks in Asia-Pacific (APAC). It could even lead to downgrades should China's economy slow more sharply than expected and weaknesses in its banking system become more widespread… Read more
StanChart IDR slumps on New York regulator’s threat to confiscate license
The Indian Depository Receipts of Standard Chartered Bank slumped after New York’s state regulator threatened to confiscate its banking license saying it had not shown $250bn in Iran-related transactions… Read more
PBOC to fine-tune monetary policy in H2 of 2012
The People's Bank of China (PBOC) will continue to strengthen the pre-emptive adjustment and fine-tuning of monetary policy in the second half of 2012 and boost its efforts in the development of real economy, the Chinese central bank said… Read more