Banking news of the day
Below is the snapshot of the latest banking news happening around the world
All eyes are on the RBI board meeting on May 9, where the issues arising out of the sting operation by a website cobrapost.com—which, in the second part of its expose, claimed that 23 public and private sector banks and insurers are involved in money laundering activities—are expected to figure prominently. (Source: The Financial Express)
Cracking Reserve Bank of India’s code is growing tougher
Predicting what central banks might do is never easy—they aren’t exactly bastions of plain speaking. But the Reserve Bank of India’s policy statements in recent months seem to have gone from opaque to conflicted, making them even more difficult to decipher. (Source: The Wall Street Journal)
Inflation-fighting RBI has no target on CPI
Given the importance it attaches to retail inflation, one would expect the Reserve Bank of India (RBI) to give some guidance on the consumer price index. (Source: DNA)
Monetary policy transmission to markets asymmetrical: RBI
The Reserve Bank of India said developed and integrated financial markets are a pre-requisite for effective and credible transmission of monetary policy impulses, days after criticism that its rate cuts are not benefitting customers. (Source: The Economic Times)
Financial Technologies, MCX to exit Dubai Gold and Commodity Exchange
Financial Technologies (FT) and Multi Commodity Exchange (MCX), the promoters of the Dubai Gold and Commodity Exchange (DGCX), the Middle East's largest bourse, will sell their 44% stake in the exchange, three people with direct knowledge of the development said. (Source: The Economic Times)
RBI curbs on offshore rupee-dollar trades leave MCX, Financial Technologies in a fix
When currency speculators punt on the rupee outside the country, they usually end up annoying the Reserve Bank of India. But there is very little RBI could do as these traders operating in offshore centres are outside the regulator’s jurisdiction. Now, a new rule by the central bank tries to curb Indian entities that sponsor overseas exchanges where traders can punt on the movement of the Indian currency. (Source: The Economic Times)
Securitisation to turn costlier for banks with new distribution tax
The Rs. 300 billion securitisation market is up for a fresh challenge, after seeing a 40% drop in volumes last year, owing to lack of clarity on taxation issues. Securitisation, a key route for private and foreign banks to meet priority sector commitments, will turn costlier for them as the government has imposed additional tax on investors from June this year. (Source: The Economic Times)
Islamic banking impossible in Indian regulatory set-up: D Subbarao
RBI governor D Subbarao on Wednesday said implementing Islamic banking model in India would be impossible because it is inconsistent with the banking regulatory set-up where interest is charged and given. (Source: The Economic Times)
Bank broking arm to be independent accounting unit: IRDA
Banks wishing to become insurance brokers may have to segregate a broking arm, which would be an independent accountable unit. The Insurance Regulatory and Development Authority (IRDA) Committee of Insurance Broking, in its report said that the bank broking unit shall have minimum 2 persons who have the requisite qualifications, mandatory theoretical and practical training and having passed the examinations there under by the examining body. (Source: Business Standard)
RBI stays away from Saradha row
The RBI has made it clear in its affidavit to the high court that it has got nothing to do with the Saradha muddle. The corporate affairs ministry did, however, file a status report on Saradha, in sealed cover. (Source: The Times of India)
Responsibility to check money laundering rests with government: RBI
Amid allegations of money laundering against banks and insurance companies by an online portal, Reserve Bank Governor D Subbarao said it was the responsibility of the government and tax authorities to check such activities. (Source: The Economic Times)
Is extra tax to compensate Saradha victims fair? Asks RBI
Reserve Bank Governor D Subbarao, on Wednesday, questioned the fairness of the West Bengal Government’s proposal to levy additional tax on cigarettes to compensate the victims of Saradha chit fund scam. (Source: PTI)
RBI’s curbs set to cut gold imports by a tenth
The Reserve Bank of India’s (RBI) decision to curb gold bullion imports by banks is aimed at cutting such shipments into the country by at least 10 per cent. Gold import was 1,015 tonnes in 2012-13 and nearly 70 per cent of this was by this method. (Source: Business Standard)
RBI listens to ‘silent voices’ hurt by inflation: Subbarao
Dismissing the criticism that RBI's steps to check inflation have hurt growth, Reserve Bank Governor D Subbarao said the monetary authority has the responsibility to listen to ‘silent voices’ of millions of people impacted by rising prices. (Source: PTI)
India’s CAD to be less than 5% in FY13: Mayaram
India’s current account deficit (CAD) for 2012-13 is likely to be less than 5% of the gross domestic product (GDP), a top Finance Ministry official said. (Source: PTI)
RBI to introduce ‘environment-friendly’ plastic currency notes
Governor D Subbarao emphasised that plastic note is environment friendly because it has longer shelf-life than the paper notes. (Source: PTI)
UCO Bank labels Reid & Taylor India as defaulter
Reid & Taylor, the textile brand promoted by matinee idol Amitabh Bachchan and run by Nitin Kasliwal, is being pursued by the state-run UCO Bank for recovering more than Rs. 1 billion of loan after the company defaulted. The lender has warned anyone dealing with the company, or Kasliwal to be aware of its intentions. (Source: The Economic Times)
State Bank of Hyderabad net declines 21%
State Bank of Hyderabad’s net profit declined 21% at Rs. 3.79 billion in the fourth quarter ended March 31, 2013 compared with Rs. 4.81 billion in the same period last year.
Corporation Bank Q4 net up 1.2% at Rs. 3.55 billion
Corporation Bank reported a marginal increase of 1.2% in its net profit at Rs. 3.56 billion for the fourth quarter ended March 31, of last fiscal.
UCO Bank tanks 8% on disappointing Q4 results
UCO Bank slipped over 8% in opening trade on Wednesday after it posted weak set of numbers for the quarter ended March 2013 (4QFY13), as its earnings declined by 80.4% YoY to Rs. 500 million.
SKS Microfinance posts Q4 profit of Rs. 27 million
SKS Microfinance, India's only listed micro lender, said it made Rs. 27 million net profit for the fourth quarter ended March 31, 2012. The company had posted a net loss of Rs. 3.29 billion in the year-ago period.
Bank of China closes N Korea’s main forex bank account
Bank of China Ltd has closed the account of North Korea's main foreign exchange bank, which was hit with US sanctions in March following Washington's accusation of it having helped finance Pyongyang's nuclear weapons programme.
Bank of Korea cuts rates
South Korea’s central bank unexpectedly cut its benchmark interest rate for the first time in seven months, looking to prop up an economy hit by slumping exports and tepid domestic demand. (Source: The Wall Street Journal)
MBIA, Bank of America reach $1.6 billion cash settlement
Bank of America Corp has agreed to pay $1.6 billion in cash to MBIA Inc and will receive the right to buy a 4.9% stake in the bond insurer to resolve long-running litigation, the companies said on Monday. (Source: Reuters)
SMBC to buy up to 40% of Indonesian bank BTPN
Sumitomo Mitsui Banking Corp (SMBC) said it agreed to acquire as much as 40% of Indonesian lender BTPN, giving the Japanese bank a foothold in the fast-growing Southeast Asian economy. (Source: Reuters)
Bank of England set to hold rates after upbeat data
The Bank of England is expected this week to hold record-low interest rates and its quantitative easing cash stimulus, after encouraging British economic growth data and despite fresh moves elsewhere to loosen monetary policy, dealers said. (Source: The Economic Times)
Green Bank directs £2.3bn into UK energy projects
The UK’s pioneering Green Investment Bank said on Thursday that it had committed £635m to almost a dozen wind, waste and energy-efficiency projects around the country in its first five months. (Source: Financial Times)
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India Infoline Research Team / 10:47, Aug 24, 2015
In spite of massive improvement in CV demand, standalone revenues for Banco Products Ltd registered muted performance with sales at Rs. 113cr in Q1 FY16.