The bank chiefs have also cancelled the customary media conference after the bi-annual policies.
Airports have been asked to ensure that information relating to the use of Indian currency should be displayed at all the duty-free shops.
Assume the worst regarding how long your unemployment could last and make conserving cash your topmost priority, suggests Sanjay Kumar Singh.
People who cannot afford long-term higher rate home loans are lured by these teaser rates, only to rue their fate later, says Business Standard.
The teaser home loan rate, the interest rate which is set artificially low for the initial period, could give a 'payment shock' to borrowers as the equated monthly installment (EMI) shot up on lenders charging regular interest rates, according to Fitch officials.
The dollar was firm against some global currencies which also weighed on the rupee.
The Reserve Bank on Tuesday allowed banks to open ATMs outside their branches without permission from the central bank.
On higher amounts, banks are allowed to offer differential rates to depositors.
Given the relevance of bank deposits for Indian savers, whether the regulator would permit linking savings interest rate to a repo-like structure needs to be seen, as a move of this nature could increase volatility in savings also.
The pace of growth in bank deposits and credit showed a substantial decline in the last quarter of 2009-10, as compared to the same quarter of the previous year.
At present, zero coupon bonds which are issued at a discount to the face value and where interest is in-built, are allowed to be issued only by infrastructure companies or public sector organisations.
The Reserve Bank on Tuesday increased a key statutory deposit ratio for banks to 25 per cent but the move is not expected to push interest rates up. RBI left other key policy rates and ratios unchanged. Due to this, it is unlikely that banks will banks hike their auto, home and education loan rates in the near term.
The inflation target has been hiked to to 6.5 per cent from 5 per cent. The FY10 GDP target is unchanged at 6 per cent.
The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender. For the next month, Yes Bank will led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.
The central bank said it will also enhance the bank-wide supervisory oversight to examine readiness of banks to face turbulent times like the financial crisis and downturn that has gripped the global economy. The supervisory review of exposure of the banking system to specific sectors may become an integral part of the ongoing supervision of banks, it added.
The move comes almost a decade after lenders were seen encouraging customers to use alternate channels such as automated teller machines, phone banking and internet banking instead of branches in an attempt to cut costs. ICICI has started an initiative 'Just step in' aimed at establishing direct connection with the customers. A customer walking into an ICICI branches is now being greeted by placards and badges which says 'just ask'.
Fraught four-month-long negotiation between Tata Motors-owned Jaguar Land Rover and the United Kingdom government over a loan guarantee ended in an anti-climax on Tuesday, with the Mumbai-headquartered automobile maker announcing that it has secured loans from commercial banks and would not need any support from the UK government.
The legislation could be ready for mark-up before Congress' spring recess, which starts April 6, the report quoted an unnamed senior Congressional staffer as saying.
Banking sources said IDBI Bank, along with another banks, was syndicating the loan. The move came after Air India failed to get funding interest from European commercial banks despite the loan carrying sovereign guarantees. The European banks' reluctance reflects how lenders have turned risk averse when it comes to aviation funding.
Says it will have implications for auditing work. According to the proposal, commercial banks need not classify a non-serviced loan under NPAs if the borrower has submitted an application for restructuring the package before March 31, 2009.
With inflation turning negative, industry has been demanding interest rate cuts to propel demand. However, RBI Governor D Subbarao had said there is no threat of deflation as food and crude oil prices are still firm.
Wages as percentage of the total expenses for the ABN Amro Bank, which is in the process of selling its retail and commercial banking operations in the country, shot up from 19.91 to 25.61 per cent during the year, reveals an RBI analysis of the banking sector in the country.
Amid slowdown blues, the government has unveiled a raft of measures over the past few months aimed at improving liquidity in the system, moderating interest rates as well as credit growth apart from addressing stress in the NBFC sector.
A series of interest rate cuts in India has failed to lead to cheaper commercial lending, leaving Asia's third largest economy to grow at only 6 per cent this year, the central bank said on Tuesday.
IMF believes it is mostly cyclical, not structural, but because of the financial sector issues, recovery will be not be quick. IMF said, it saw an opportunity with the strong mandate of the new government to reinvigorate the reform agenda to boost inclusive and sustainable growth.
Chinese companies show their prowess among the world's top companies.
Even though the Reserve Bank of India (RBI) has reduced the risk weightage on loans to commercial developers and cut general provisioning for commercial real estate, commercial banks may not start lending to the sector immediately.
"We are already restructuring viable accounts, which are facing temporary cash flow problems," says S Sridhar, Chairman & MD, Central Bank of India.
Sensing a correction in the real estate sector, commercial banks have become selective in lending to new residential and commercial real estate projects.
The finance ministry has called a meeting of the State-Level Bankers Committee in New Delhi on Tuesday, which will be attended by officials from scheduled commercial banks, regional rural banks, cooperatives, Reserve Bank of India, National Bank for Agriculture and Rural Development, the Centre as well as states. The meeting will be presided over by financial services department secretary Arun Ramanathan.
Yes Bank Founder, Managing Director and CEO Rana Kapoor is confident that the potential is huge and risks close to none. The bank has around 8,000 relationships in this segment and claims to have mapped about 150,000 such relationships.
Funds dry up owing to liquidity crunch, high debt.
O P Bhatt replaces A K Purwar who retired as chairman of the country's largest commercial bank on May 31 this year.\n\n
Out of the total potential loss, the share of state-run banks will be Rs 24,800 crore in FY18, while that of the private sector banks will be Rs 5,700 crore
The move is under consideration as the cash transaction reports just from commercial banks have shot up from 2.2 million to nearly 6 million for FY08. The number could go up further since data for the full financial year is still being compiled. Similarly, last year, the agency received more than 2,500 suspicious transaction reports from various entities in the financial sector, as compared with 817 in FY07.
Norms governing investments by provident funds bar these from depositing funds in a commercial bank in case the NPAs of that bank exceed two per cent of net advances.
This is about 42.41 percent of the target fixed for the current fiscal. The target to be achieved during 2009-10 is to the tune of Rs 3.25 lakh crore (Rs 3.25 trillion).
Ajit Balakrishnan offers a New Year resolution for our policy-makers.
Craig Wright identified himself as Satoshi Nakamato, the pseudonym he says he created when launching the currency in 2009.
"We believe in the coming months of September and October, the manufacturing growth is likely to remain flat and IIP growth may even continue to remain in the negative territory," SBI Research said in its Ecowrap Report.
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