Banking Newsletter - May 31 to June 04, 2010
Bank credit in the coming few weeks is likely to pick up as telecom companies borrow large sums of money to make payments to the Government for 3G spectrum.
Bank loans rise by 18% yoy: RBI data
Bank loans grew by an annual pace of 18% during the fortnight ended May 21 but overall the trend still remains lackluster as is the case generally in the first few months of a new fiscal year.Latest RBI data shows that total bank credit rose by Rs24.06bn during the fortnight under review to Rs32,30,178 crore. Of this, food credit dipped Rs32.25bn while non-food credit rose by Rs56.31bn. Bank credit in the coming few weeks is likely to pick up as telecom companies borrow large sums of money to make payments to the Government for 3G spectrum. In fact, reports suggest that many banks have pulled out investments in mutual funds to meet the loan demand from telecom players. Meanwhile, total bank deposits slipped by Rs49.97bn during the fortnight ended May 21 to Rs4,526,220 crore. Demand deposits and term deposits fell by Rs40.85bn and Rs9.12bn, respectively. Read More…
Bank loans fall by 0.2% in May: RBI
SBI may not borrow from RBI: report
State Bank of India is reported to have sufficient amount of cash and is unlikely to borrow from the central bank's repo window during the current bout of liquidity tightness. According to a financial daily, the bank holds government securities in excess of the mandated amount to the extent of Rs400bn and doesn't expect to even tap the overnight market for funds. The Bank is reported to have excess SLR (statutory liquidity ratio) of Rs250bn which is around 2.5-3.0%.
Earlier last week, the Reserve Bank of India (RBI) announced some ad hoc liquidity support measures to help banks tide over a cash crunch due to the outflow of Rs677bn towards third-generation (3G) mobile spectrum auction payments.
In Focus News
RBI issues draft guidelines on loan securitisation by NBFCs
The Reserve Bank of India (RBI) has released draft guidelines on loan securitisation by non-banking finance companies (NBFCs), outlining planned rules for minimum holding period, retention and special purpose vehicle exposure. RBI said for loans maturing in up to 24 months, the company would have to hold the asset on its books for at least nine months and retain 5% of the book value of the loans being securitised.
Twelve months is the minimum holding period for loans maturing in more than 24 months and which have periodic repayment schedules, while 10% of the book value of securitised loans will have to be retained. "No securitisation of loans with maturity exceeding 24 months and bullet repayment is envisaged," the RBI circular stated. Read More…
RBI forms committee to look into system of grievance redressal in banks
Applications made to RBI can now be tracked on-line
IDBI Bank opens first overseas branch at DIFC
Citi appoints Rajiv Nayar head of CMO for India
Citi Partners to launch Financial Information Exchange Protocol
Repayment of 11.50% IDBI SLR Bonds 2010
The Jammu & Kashmir Bank invests Rs1bn in Lavasa
Rabobank mulls selling its entire stake in Yes Bank: report
SGX invests US$250mn to offer fastest access to Asia
SGX securities trading improves in May
DFCC Bank sells 9.99% stake in Commercial Bank of Ceylon
Ocwen acquires Barclays loan servicing unit
Click here for...Banking Newsletter - May 31 to June 04, 2010
India Infoline Research Team / 08:44, Jun 26, 2015
IIFL is hosting 10 companies at a Management Roadshow in Mumbai today. The opening is a subdued start. US market saw minor losses with Dow, S&P 500 and Nasdaq closing marginally lower.