Sensex 29361.5 141.38 0.48%
Nifty 8901.85 57.25 0.65%
Govt continues Interest subvention on short-term crop loans
To continue interest subvention to Public Sector Banks (PSBs), Regional Rural Banks (RRBs), Cooperatives Banks and NABARD to enable them to provide short-term crop loans up to Rs. 3 lakh to farmers at 7% p.a. during the year 2012-13. To provide additional interest subvention of 3% p.a. to those farmers who repay on time, i.e. within one year of disbursement, their short-term crop loans taken during the year 2012-13… Read more
PMEAC chief Rangarajan bats for bringing down CRR
After the recent debate on Cash Reserve Ratio between State Bank of India chief and Reserve Bank of India deputy governor, the chairman of Prime Minister's Economic Advisory Council, C. Rangarajan has said that the apex bank should cut CRR and control credit flow through open market operations, reports said.
According to Rangarajan, the instrument is no longer used in credit control and liquidity management… Read more
Banks need Rs. 5 tln extra capital for Basel III: RBI
Dr. Duvvuri Subbarao, the RBI Governor said that Indian banks need an additional capital of Rs. 5 trillion to comply with the Basel III regulations.
The Government needs to infuse Rs. 900bn into state-run banks in the next five years to maintain majority shareholding under the Basel III norms, Subbarao added… Read more
IRDA approves 30% stake purchase of PNB in MetLife India
The IRDA (Insurance Regulatory and Development Authority) has approved a 30% stake purchase by Punjab National Bank (PNB) in MetLife India Insurance Company on 31st August.
“The IRDA considered the proposal for change in the shareholding pattern of MetLife India Insurance Company Limited and broadening the definition of ‘Indian Promoter’ as defined under the IRDA (Registration of Indian Insurance Companies) Regulations, 2000 to include a Limited Liability Partnership,” the regulator said in a press release… Read more
Shome panel ToR to include all non-resident tax payers
The Standing Committee on Finance has presented its report on Current Economic Situation and Policy Options to Parliament on August 30. The Committee has, inter alia, found that the investment climate in the country has suffered serious setback and investors confidence has been hit mainly because of the concerns over the impact of retrospective tax laws and new General Anti Avoidance Rules (GAAR).
The Government had constituted an Expert Committee headed by Dr. Parthasarathi Shome on GAAR on July 13. The Shome panel has submitted its draft report, which has been placed in public domain on September 1 for seeking suggestions/opinion of the various stakeholders… Read more
Axis Bank launches Happy Ending Home Loans
Axis Bank has launched Happy Ending Home Loan, a unique home loan product with a built-in EMI waiver scheme. As long as customer pays his EMIs on time, the product would waive the last 12 EMIs automatically… Read more
HDFC Bank launches India's First Teacher's Credit Card
HDFC Bank has launched India’s first credit card for teachers. The launch on September 5 coincides with the celebration of Teacher’s Day, which marks the birthday of India's former President and a renowned teacher, Dr S. Radhakrishnan… Read more
HDFC Mutual Fund ties up with Syndicate Bank
HDFC Mutual Fund and Syndicate Bank have entered into an alliance to offer HDFC Mutual Fund's schemes through the bank’s 2700 plus branches across the country… Read more
In Focus News
Impaired Indian bank assets likely to exceed forecast: Fitch
A sharp increase in non-performing loans reported at India's largest government banks indicates that fiscal 2013 impaired assets across the banking sector may exceed our initial forecast as the economy slows, Fitch Ratings says.
Absolute cumulative gross NPLs reported at India's five largest banks - accounting for over a third of the system assets - increased by around 62% in Q113 from a year before, and there was also a sharp increase in restructured assets. State Bank of India, the country's largest bank, reported a gross NPL ratio of 5% in Q113, up from 4.5% in FY12. The trend is matched across other large and small government banks, albeit to varying degrees… Read more
Basel III...10 questions we should know answers to
What was the paradigm shift from Basel I to Basel II? The paradigm shift was that while Basel I had a ‘one-size-fits-all’ approach, Basel II introduced risk sensitive capital regulation, according to Dr. Duvvuri Subbarao, Governor, RBI… Read more
ICICI Bank to increase overseas ATM cash withdrawal fee
ICICI Bank is planning to increase overseas ATM cash withdrawal fee by 17%, according to reports.
The bank has reported that With effect from September 15, 2012 ATM cash withdrawal fee at international location will be increased from Rs. 107 to Rs. 125. Service tax and other 'terms and conditions' would continue to be applicable to this fee, company reported.
India Infoline Finance's Rs. 5bn NCD issue opens
India Infoline Finance Limited, an NBFC, proposes a Public Issue of Un-Secured Redeemable Non-Convertible Debentures of face value of Rs. 1,000 each (“NCDs”) aggregating up to Rs. 2,500 mn (“Base Issue Size”), with an option to retain oversubscription up to Rs. 2,500 mn, aggregating to a total of Rs. 5,000 mn (the “Over all Issue Size”). The NCDs will be in the nature of subordinated debt and will be eligible for Tier-II capital… Read more
Fitch affirms Bank of America's Indian NBFC subsidiaries
Fitch Ratings has affirmed India-based DSP Merrill Lynch Capital Limited's (DSPMLC) National Long-Term rating at 'Fitch AAA(ind)' with a Stable Outlook, and its National Short-Term rating at 'Fitch A1+(ind)'. The agency has also affirmed Banc of America Securities (India) Pvt. Ltd.'s (BASIL) National Short-Term rating at 'Fitch A1+(ind)'. DSPMLC and BASIL are Bank of America's (BAC, 'A'/Stable/'bbb+') non-banking finance company (NBFC) subsidiaries. A full list of rating actions is provided at the end of this commentary… Read more
Reliance Capital to mull special dividend on Sept 10
Reliance Capital Ltd. has informed the exchanges that a meeting of the Board of Directors of the Company will be held on September 10, 2012, inter alia, to consider special interim dividend, if any… Read more
SBI expects pickup in demand for car loans: Pratip Chaudhuri
Pratip Chaudhuri, chairman, State Bank of India has reportedly said that following the reduction in interest rate for retail credit by large banks, demand for such advances was picking up
Reports stated that SBI has seen disbursements double following the rate cut. There has been a significant pickup in demand for car loans,” Chaudhuri reportedly said.
SBI cut interest rates on auto and home loans in the first week of August, after the Reserve Bank cut the SLR (statutory liquidity requirement).
Axis Bank declines on Morgan Stanley downgrade
Shares of Axis Bank moved down after Morgan Stanley cut its rating on the stock to "underweight" from "equal weight" and slashed its target price on the stock to Rs. 800 from Rs. 900 rupees earlier, citing rising impairments… Read more
Kotak Mahindra Bank forms alliance with Scotiabank
Kotak Mahindra Bank Ltd announced in Mumbai that it has entered into a strategic alliance with Scotiabank, Canada’s most international bank. The alliance will provide financial services to people immigrating to Canada and to non-resident Indians (NRIs) and People of Indian Origin (PIOs) seeking bank accounts and other banking services in India… Read more
Dena Bank reduces interest rates
Dena Bank announces reduction in interest rates on fresh Loans-Education Loan by 2%, Car loan by 1-1.50% and personal & Consumer durable loans by 2-2.25% to give benefit to the customers… Read more
PHD Chamber of Commerce organises summit
PHD Chamber of Commerce and Industry, the apex industry body, acting as a catalyst in the promotion of industry, trade and entrepreneurship via its research based policy advocacy role, started, ‘Global Summit- Role of Industry Chambers’. Conceptualised and organised by PHD Chamber of Commerce and Industry, the summit saw participation from presidents of key industry bodies including FICCI, ASSOCHAM and along with key government ministries and corporate stakeholders on the inaugural day… Read more
HDFC Bank featured in Forbes Asia's Fab 50 list
HDFC Bank has featured in the prestigious Forbes Asia's ‘Fab 50' list of companies. This year, HDFC Bank makes a comeback into the elite list and is among the 11 companies from India to find mention in the 2012 edition of Forbes Asia's Fab 50. For five consecutive years (from 2005-2010), HDFC Bank regularly featured in the power packed list of companies in Asia… Read more
IDBI Bank cuts rates on floating, fixed home loans
IDBI Bank has decided to reduce its floating and fixed interest rates on housing loans. The revised rates will come into effect from September 7, 2012. While the Floating Interest Rates in respect of all loans have been reduced by 25 bps subject to Base Rate, the Fixed Rate on Home Loans has been reduced to 11.50% p.a. for all loans for a period of 3 to 5 years. The Bank has also reduced processing fee by 50% or more on home loans. Further, the Bank has also effected certain changes in card rates applicable to some of the allied home loan products.
ICICI Bank goes for Facebook route for transactions platform: Reports
ICICI Bank is going for options to launch its services from social media platform Facebook, to expand its Internet banking services, according to reports.
ICICI chief technology officer Mukesh Kumar Jain has reported that the bank is currently planning to incorporate credit and debit transactions in the near future… Read more
SBI cuts retail term deposit interest rates
State Bank of India has decided to revise downwards its Retail Term Deposit interest rates with effect from 7th September 2012… Read more
World Bank appoints Kaushik Basu as chief economist
World Bank Group President Jim Yong Kim today announced the appointment of Kaushik Basu as the institution’s new Chief Economist and Senior Vice President.
Basu, an Indian national, most recently served as Chief Economic Adviser of the Government of India, Ministry of Finance, while on leave from his position as Professor of Economics and the C. Marks Professor of International Studies at Cornell University. He also served as Chairman of Cornell’s Department of Economics and Director of Cornell’s Center for Analytic Economics and headed the Program on Comparative Economic Development… Read more
JP Morgan Chase appoints Craig Delany as chief investment officer
JP Morgan Chase (JPM) has appointed Craig Delany, a 20-year experienced official of the bank, as head of its chief investment office—the unit which reported a $5.8 billion trading loss earlier this year.
Mr Delany’s promotion comes as the bank is in the process of recovering from its London Whale trading losses. For the past 18 months, Mr Delany has run JPMorgan's mortgage servicing rights division, helping to clean up some of the troubled mortgages from the financial crisis… Read more
Deutsche Bank jobs in Tokyo, HK: Reports
Frankfurt-based Deutsche Bank AG (DBK) is restricting its offices in Japan and Hong Kong. Germany’s biggest lender has cut about 85 jobs at its Japan and Hong Kong equities units as Europe’s widening debt crisis affects economic growth in Asia, according to media reports.
Deutsche Bank AG cut about 15 positions in Tokyo on 4th September, and plans to eliminate more employees. The bank has cut 40 jobs in Hong Kong on 4th September. Deutsche Bank said in July that it will reduce about 1,900 jobs, mainly outside of Germany, including 1,500 positions in corporate banking and securities and related infrastructure areas. Total job cuts across Asia amount to about 100 employees, the reports said.
The MSCI Asia Pacific Index has declined more than 8% since the end of March. Hong Kong’s Hang Seng Index (HSI) has decreased 6.9% and Japan’s Nikkei 225 Stock Average has dipped 14%.
ECB unveils new bond-buying plan to calm debt markets
The Governing Council of the European Central Bank (ECB) has on Thursday taken decisions on a number of technical features regarding the Eurosystem’s outright transactions in secondary sovereign bond markets that aim at safeguarding an appropriate monetary policy transmission and the singleness of the monetary policy. These will be known as Outright Monetary Transactions (OMTs) and will be conducted within the following framework… Read more
ECB holds policy meeting...All eyes on Mario Draghi
Global investors are increasingly betting on some sort of an announcement on new monetary stimulus from the European Central Bank (ECB) president Mario Draghi later on Thursday amid no sign of relief from the long-running debt crisis.
Draghi skipped the Federal Reserve organised Jackson Hole event last week, sparking speculation of an impending announcement of sovereign bond buying by the ECB in the near term… Read more
Black bark for banks—Gold Star for Red Star
There are billions of pounds out there waiting to be handed over and Red Star Financial Management is here to help you get your hands on it.
British banks have been hammered for holding on to compensation they have set aside for the payment protection insurance (PPI) scandal. And claim handlers like Red Star have been praised for getting results for people who didn't even know they were owed potentially thousands of pounds… Read more
BOE leaves rates, bond-buying program unchanged
The Bank of England (BOE) on Thursday left interest rates steady while also keeping the size of its bond-buying program unchanged.
The BOE said that its Monetary Policy Committee left the key lending rate unchanged at a record low 0.5%, where it has stood since March 2009. Policy makers maintained the size of the UK central bank’s asset-purchase program unchanged at 375 billion pounds (US$596.5 billion)… Read more
ECB leaves rates steady; Draghi press meet awaited
The European Central Bank (ECB) on Thursday left its key interest rate unchanged, sending shares in the European markets off day's highs ahead of the central bank President Mario Draghi's crucial press conference later in the day.
The ECB kept its key lending rate unchanged at 0.75% and the rate on its deposit facility at 0%... Read more
China's services PMI hits one-year low in August: HSBC
China's services sector activity moderated to a one-year low in August, with more businesses growing downbeat about their outlook, even as overall conditions remained moderately expansionary, according to a survey released by HSBC on Wednesday.
Chinese companies hired more workers at higher wages, the HSBC survey showed. The China services Purchasing Managers' Index (PMI) fell to 52.0 for the month from 53.1 in July… Read more
KfW to extend Euro 53 mn to SIDBI
The Loan Agreement between Kreditanstalt fur Wiederaufbau (KfW), Germany and Small Industries Development Bank of India (SIDBI) for Fifty Three million Euro (Euro 53,000,000) for the Micro, Small and Medium Enterprises (MSMEs) Innovation Finance Programme was signed by S.Muhnot, Chairman and Managing Director, SIDBI and Oskar von Maltzan, Director, KfW in New Delhi on September 03, 2012… Read more
India Infoline News Service / 08:51, Feb 27, 2015
The outlook is a positive start .The unwinding of positions and rollover in the F&O expiry brought in the usual volatility on Thursday.