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RBI reiterates need for fiscal discipline to boost growth
Manappuram Finance, arm barred from taking deposits
The Reserve Bank of India today advised that Manappuram Finance Limited, Thrissur, Kerala (earlier known as Manappuram General Finance and Leasing Ltd.), is not permitted under the Reserve Bank of India Act, 1934, to accept/renew deposits from the public.
The Reserve Bank has stated that acceptance of deposits either by Manappuram Finance Limited or by Manappuram Agro Farms (MAGRO) is punishable with imprisonment and has cautioned members of public that those who deposit money with Manappuram Finance Limited or MAGRO do so at their own risk.
Manappuram Finance Limited, Thrissur, Kerala (earlier known as Manappuram General Finance and Leasing Ltd.), was a company registered with the Reserve Bank of India as a deposit taking Non-Banking Financial Company. Read More…
…Manappuram Finance to mull RBI directive on Feb 10
….Manappuram, Muthoot slump on fear of RBI regulations
Central Bank of India on massive recruitment exercise: reports
Central Bank of India is reportedly planning to recruit 2,700 people this year to add to the 3,200 recruited last year, which is triggered due to large number of retirements.
Vijayalakshmi R Iyer, Executive Director, Central Bank of India was quoted as saying that this number would be exclusive of the addition in specialised segments such as treasury operations, legal, and so on. We are in fact trying to do locational recruitment and to the extent possible post them closer to their home town. We have since inked a pact with IBPS (Institute of Banking Personnel Selection) for clerical recruitment.
Around 1,500 to 1,800 are retiring every year, over the last two years and in the next three years. The bank has approached about 20 institutions across the country last year to hire people, added reports.
In focus News
Allow banks as intermediaries in commodities futures market: ASSOCHAM
To increase the penetration of savings instruments and upgrade financial literacy in rural areas, industry body ASSOCHAM called for permitting banks as intermediaries in commodities futures market so that economic benefits of development spread beyond urban pockets.
Though the country has a high savings rate, the participation of urban population with high incomes in agricultural segment is minimal due to lack of suitable investment opportunities and absence of credible intermediaries dealing with agri-based investment products.
Commodity futures as financial instruments are easier for urban people to understand and so should facilitate channeling their investments, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM). The primary result of such participation will be to improve the depth of market and price discovery.
But banks are not permitted to engage in commodity derivatives business. “By virtue of their vast branch network, banks are in a unique position to display tickers showing real-time prices of various commodities across the country which will be the most efficient price discovery dissemination that could be implemented in a very short time,” said secretary general D.S. Rawat. Read More…
Domestic News
LIC to buy 5% stake in Dena Bank
Dena Bank Ltd.'s Board has approved a preferential allotment of shares to Life Insurance Corp. (LIC), a top official was quoted as saying on Monday.
LIC will hold a 5% stake in Dena Bank post allotment, Sudhir Kumar Jain, general manager treasury, Dena Bank said.
Dena Bank Q3 net profit up 20%
Dena Bank has posted results for the third quarter ended 31st December, 2011.
The net profit was stood at Rs1.86bn as compared to Rs1.55bn for the corresponding quarter, a growth of 20%.
The operating profit was stood at Rs3.93bn as compared to Rs3.16bn, a growth of 24%.
FM meets industry and trade leaders for pre-budget talks
The Union Finance Minister Pranab Mukherjee has said in order to achieve the objective of inclusive growth, we need to have 9 plus growth rate for a sustainable period. The Finance Minister said that in order to ensure that everybody gets due share of development, it is necessary that the benefits of the various development programmes reach the targeted beneficiaries in the given timeframe.
The Finance Minister Mukherjee was addressing the representatives of Indian business and trade here today in a meeting called by him as part of the Pre-Budget consultation process. The Finance Minister Mukherjee said that there are various challenges before us including higher growth, keeping inflation and fiscal and revenue deficit to man. Read More…
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Global News
Reserve Bank of Australia keeps rates on hold
The Reserve Bank of Australia (RBA) on Tuesday surprised the markets and economists by refraining from cutting its key lending rate, sending the nation's currency higher.
Australia's central bank policymakers kept the key cash rate on hold at 4.25%. The Australian dollar climbed versus its US counterpart while the domestic stock index declined slightly after the RBA's unexpected decision.
"The acute financial pressures on banks in Europe were alleviated considerably late in 2011 by the actions of policymakers," the RBA said in a statement.
"Financial market sentiment, though remaining skittish, has generally improved since early December," the RBA added.
"With growth expected to be close to trend and inflation close to target, the board judged that the setting of monetary policy was appropriate for the moment," the RBA said.
ECB holds rates steady...Draghi avoids Greek debt issue
The European Central Bank (ECB) kept interest rates at a record low 1%. ECB President Mario Draghi was non-committal on whether the bank would participate in Greece's debt restructuring. However, he indicated that the central bank could pass profits from its Greek bond holdings to eurozone countries.
Draghi said that survey and hard data are pointing to a gradual stabilization of economic activity at low levels in the euro area. But, he also noted that the economic outlook remains subject to high uncertainty and downside risks.
Discussing the fiscal compact to which most European Union countries have committed, Draghi said that the framework is the first timid step toward a fiscal union.
Draghi also announced an easing of collateral rules for the central bank’s liquidity operations, saying that such measures were designed to avert a potentially dangerous credit crunch. He insisted that while the move means the ECB is taking on more risk, it will be very closely managed.
Draghi, however, reiterated that the ECB is forbidden by law from engaging in monetary financing of a member nation’s debt. He said that taking a loss on the holdings of a country’s bonds would be a violation. But forgoing some profits wouldn’t amount to monetary financing, Draghi said.
Reports this week said that the ECB was willing to engage in a complex transaction with the European Financial Stability Facility that would see it give up most of the profit it would derive from holding its portfolio of Greek bonds to maturity.
Societe Generale wins Euromoney award for Structured Product
Societe Generale Private Banking has been named, for the 8th consecutive year, “Best Private Bank for Structured Products in Western Europe” by Euromoney Magazine in its “2012 Private Banking Survey”.
It is also named ‘’Best Private Bank for its Structured Products offering in France, Luxembourg and Monaco’’.
These awards underline both the private bank’s leadership in structured products dedicated to high net worth individuals as well as its permanent efforts to develop innovative solutions tailored to match clients’ specific needs. Read More…
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