Banking and Financial Newsletter - December 22 to 26, 2014

Soliciting cooperation from the public in withdrawing these notes from circulation, the Reserve Bank of India has urged them to deposit the old design notes in their bank accounts or exchange them at a bank branch convenient to them.

Dec 26, 2014 02:12 IST India Infoline News Service

Top Story
Sumitomo Mitsui to acquire 2.77% stake in Reliance Capital
Sumitomo Mitsui Trust Bank, Limited of Japan and Reliance Capital Ltd., a part of Mr. Anil Ambani led Reliance Group, today announced signing of a comprehensive long term strategic alliance between the two companies. Sumitomo Mitsui Trust Group is the fourth largest bank in Japan (in terms of market capitalization and corporate loans) and Japan’s largest financial institution managing assets of US$ 682 billion with assets under custody of US$ 1.8 trillion as of September 2014...Read More

Deadline to exchange pre-2005 notes extended till June 30: RBI
Soliciting cooperation from the public in withdrawing these notes from circulation, the Reserve Bank of India has urged them to deposit the old design notes in their bank accounts or exchange them at a bank branch convenient to them. The Reserve Bank of India has stated that the public can do so till June 30, 2015. Earlier, in March 2014, it had set the last date for public to exchange these notes was January 01, 2015. The Reserve Bank has stated that the notes can be exchanged for their full value. It has also clarified that all such notes continue to remain legal tender...Read More

Foreign shareholding limit must not breached for Rs. 10,000 crore issuance: Paresh Suthankar
In an interview with Business Standard, Paresh Suthankar, Deputy Managing Director, HDFC Bank, said that this approval is valid for a year. The company plans to raise the money this financial year,if not, then within a year. Explaining the whole process in detail and giving insights of the market value, he said, "We needed clarity on the foreign shareholding limit, which stood at 49%. The FIPB has approved raising it to 74%. This has to be approved by the Cabinet Committee on Economic Affairs. Once done, 74% shareholding can be achieved and FIPB has opined HDFC will be a part of it...Read More

Domestic News
Ford Credit India Receives License to Operate
Ford Credit India has been granted a license by the Reserve Bank of India to operate as a nonbanking financial company in India and plans to begin dealer wholesale inventory financing in the first quarter of 2015. Consumer retail financing will follow later in the year 2015. “We are very pleased to be launching Ford Credit India early in 2015,” said Mark Constable, managing director of Ford Credit India...Read More

RBI simplifies 'non-co-operative' borrower classification
Reserve Bank of India has simplified the definition of a non-cooperative borrower to include all those who have the ability to pay but still thwart lenders' efforts to recover their dues. A non-cooperative borrower is one who does not engage constructively with his lender by defaulting in timely repayment of dues while having ability to pay, thwarting lenders’ efforts for recovery of their dues by not providing necessary information sought, denying access to assets financed / collateral securities, obstructing sale of securities, etc. In effect, a non-cooperative borrower is a defaulter who deliberately stone walls legitimate efforts of the lenders to recover their dues... Read More

Axis Bank's 'eDGE Loyalty Rewards program' rewards customers
Axis Bank, India’s third largest private sector bank, today announced its eDGE Loyalty Rewards being extended to its Current Account & Travel cards holders, making it a program that rewards customers across their banking relationships. With this initiative, Axis will be the first bank in India to reward loyalty points to Current Account transactions and travel card holders. All Savings bank customers are beneficiaries of this program and customers earn eDGE Loyalty points by maintaining a balance of Rs. 25000 or more...Read More

ICICI Bank organise Coin Exchange Mela at Panaji branch in Goa
ICICI Bank Ltd, India's largest private sector bank, organised a Coin Exchange Mela at its Panaji branch in Goa on December 18, under the guidance of the Reserve Bank of India. The coin mela was inaugurated by H. M. Dash, General Manager(Issue Department), Reserve Bank of India, Belapur. The Bank organises Coin Exchange Melas to offer free facility of exchanging acceptable soiled and mutilated currency notes with coins to the general public and is a much-awaited event that receives an overwhelming response from people from all walks of life. Anyone can avail of this facility free of cost..... Read More

YES BANK raises USD 200 mn Unsecured Loan from Asian Development Bank
YES Bank has successfully raised USD 200mn Unsecured Loan facility from the Asian Development Bank. The loan will be used by YES Bank to lend the Indian Rupee equivalent amount to finance working capital and investment loans targeted towards small farm households and rural womenin Self Help Groups(SGHs).
SGX responds to consultation on greater retail access to bonds
Singapore Exchange (SGX) today issued its response to a consultation paper it published in September 2014 to give retail investors improved access to wholesale bonds[1]. Wholesale bonds are initially denominated in a board lot size of S$200,000 or above. In the public consultation, SGX proposed that retail investors be allowed to purchase these bonds six months after their listing in smaller board lot sizes (“seasoned bonds”). Issuers can also make subsequent offers of new bonds on the same terms as the seasoned bonds to retail investors directly....... Read More

Presently no big credit demand from corporates: PS Rawat
In an interview with The Hindu Business Line, PS Rawat, Canara Bank Executive Director, said that the awareness programmes and financial literacy camps were conducted in all the 978 gram panchayats of the State. Adding to the same, he pointed out that, "Over 11,000 camps were conducted for opening accounts. As convenor of SLBC Kerala, our bank was the first to introduce toll-free number for information on PMJDY and redressal of grievances. Besides regular follow-up and monitoring of progress by SLBC Kerala, Aadhaar penetration of over 92%, one of the highest in the country, enabled quick opening of accounts and implementation of direct cash transfers"...Read More

SBI plans to unlock value of subsidiaries: Reports
According to the report, SBI management is planning to unlock value by listing one or more of its NBFC. Report said, most of these subsidiaries have joint venture partners, while the decision to list has to be mutual and hence will take some time to implement. SBI owns 74% stake each in its life insurance and general insurance subsidiaries, 60% in the cards and payments subsidiary, 63% in its asset management company.
Kedaara Capital announces an investment in Au Financiers
Kedaara Capital announced an investment in Au Financiers India, a rapidly growing financial services firm offering secured lending to under-served rural and semi-urban customers in India to improve their livelihoods. This is Kedaara’s maiden investment in the financial services sector in India, which has significant potential for robust, secular growth. Founded in 1996 by a first-generation entrepreneur, Sanjay Agarwal, in Jaipur, Au is a rapidly growing non-banking finance company, which operates across contiguous semi-urban and rural regions in North, West and Central India... Read More

UAE Exchange India launches 6 branches in Mumbai
UAE Exchange India, one of the leading players in financial services today announced the launch of six branches in Mumbai. These branches are located in Dadar, Matunga, Kandivali, Dahisar, Ghatkopar, Vasai, and Airoli. N Gopi , Zonal Head and Mr. TS Reddy Regional Head, UAE Exchange India inaugurated the branches in presence of branch staff and customers. As the financial capital of India, the demands for the financial services are on high mandate in the metropolis and to cater the rising needs, UAE Exchange India has diverged its network to yet more locations...... Read More

BRICS Bank should grant loans to ensure credibility of institutions remains high: Dr C. Rangarajan
The new development bank of the group of BRICS countries has to ensure that credibility of the institution remains high, as such the assessment should be proper and commercial viability of projects should be a major criterion while giving the loans, said Dr C. Rangarajan, chairman, Madras School of Economics, former chairman of the Prime Minister Economic Advisory Council (PMEAC) and former governor of the Reserve Bank of India (RBI) at an ASSOCHAM event held in New Delhi...Read More

Corporation Bank fixes record Date for stock split
Corporation Bank has announced that the Bank has fixed January 23, 2015 as the Record Date for the purpose of ascertaining the eligibility of shareholders to receive 5 (Five) Equity Shares of nominal value of Rs. 2/- each in lieu of 1 (One) Equity Share of nominal value of Rs. 10/- each of the Bank on account of reduction/split in Face Value of the Bank's Equity Shares.
India must watch China’s influence on BRICS bank: ASSOCHAM study
With China having invested its huge foreign exchange reserves in different parts of the world including in the developed nations and coming as a crucial founding member of the BRICS promoted New Development Bank, India has to situate itself as an equally “relevant voice” and strike a balance outside China-led or likely dominated multilateral structures, a recently concluded ASSOCHAM study has said... Read More

BPCL plans to raise Rs 4,000 crore in Kochi
According to the report, BPCL is planning to raise Rs 4,000 crore for the expansion of its Kochi refinery to fund its petrochemicals venture. Report said, SBI has received the mandate to raise funds for BPCL's petrochemical plan. The company is planning to diversify into downstream petrochemicals with an investment of Rs 4,588 crore by using propylene. Report said, the company will invest around Rs 14,225 crore in its expansion at the Kochi refinery and Rs 5,000 crore for setting up a petrochemical joint venture.
IFCI plans to raise Rs. 790 crore
This is in reference to IFCI's Public issue of secured, redeemable, non-convertible debentures under shelf limit of Rs. 2000 crore. In this regard, IFCI Ltd has informed BSE that the Committee of Directors of IFCI Ltd. at its Meeting held on December 23, 2014 has approved the issue of Secured, Redeemable, Non-Convertible debentures under Tranche II - Public Issue of NCD, subject to statutory approvals as required..... Read More

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