Some banks, including ICICI, want to restructure securitised advances along with other loans. This is being opposed by Axis Bank, IndusInd Bank and YES Bank.
Bahrain has of late emerged as a regional hub for banking because of low tax rates and easy regulations. At present, 409 banks and financial institutions have operations there.
Freebies do not seem to have attracted many buyers, as both property prices and lending rates continue to remain high.
The Manila-based development finance institution has decided not to guarantee loans directed to Andhra Pradesh, where the microfinance activity has fallen sharply due to strict rules introduced by the state government in October last year.
While most analysts had valued Reliance Capital's stake in Reliance Life Insurance at Rs. 285 per share, or about Rs. 7,000 crore, this deal values it at Rs. 468 per share of Reliance Capital, which is a huge premium.
Compared to other emerging markets, accelerated growth in the domestic economy provided greater business opportunities to foreign banks in India, resulting in higher profitability.
Expect rate rise pause, amid market expectations to the contrary.
Volatility in domestic share market acting as catalyst.
"Companies are looking for longer maturities, typically one year and above (for bulk deposits), while banks want funds for a short tenure," said B A Prabhakar, executive director, Bank of India.
Life Insurance Corporation of India, Housing Development Finance Corporation and State Bank of India together own a little over 45 per cent in IL&FS. The deal is expected to be valued around $2.5 billion.
The finance ministry's plan to offer basic banking licences may find few takers because of doubts over the commercial viability of the proposed business model.
Banks have started putting the brakes on short-term corporate loans.
While iGate leaps into the $1-billion club, the combined entity will have a larger offering, better pricing power and scope to improve margins. Nasdaq-listed software firm iGate's acquisition of Patni Computer Systems was received positively by the market. On a day when the Sensex was down 2.4 per cent, the Patni scrip closed 0.8 per cent higher at Rs 463.85.
Rising competition and costs are likely to keep profitability of brokerage firms under pressure, leading to consolidation.
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