Rajan said the RBI is working on upgrading the capabilities of its inspectors to undertake bank system audits as well as to detect vulnerabilities in them
Home, auto and corporate loan rates may not go up immediately, even though the Reserve Bank on Tuesday raised key short-term policy rates by 25 basis points to check high inflation, bankers said.
SBI got Rs 1.93 lakh cr in cash deposits from November 10-25.
In December last year, the finance ministry had asked five state-run banks -- Punjab National Bank, Canara Bank, Union Bank of India, Bank of Baroda and Bank of India -- to explore merger opportunities in the banking industry.
Analysts attribute this outperformance to the government's proactive economic reform measures
Ajit Mishra, vice president, Research, Religare Broking, answers your queries:
A host of lenders, including State Bank of India, IDBI Bank, Indian Bank and Andhra Bank, have lined up meetings of their asset-liability committees this week, to review their lending and deposit rates.
The government is finalising appointment of at least nine public sector bank chiefs and a dozen executive directors who would replace them or fill existing vacancies.
The country's largest public sector lender State Bank of India on Monday fixed its benchmark lending rate at 7.5 per cent following a Reserve Bank directive, a move that will end the practice of sub-prime loan to corporates.
State Bank of India would announce its much-awaited base rate on Tuesday, Chairman OP Bhatt said on Monday. On how much will the rate be, Bhatt said, "Not more than 8 per cent. . . 8 per cent or less."
Preeta Misra, head, financial education solutions, Dun & Bradstreet -- India, said, "The economic downturn has opened up opportunities for companies in India, as with the decrease in the attrition rate of employees, companies can now have the crucial talent they need. They can identify and build leaders for tomorrow and set up efficient internal processes in place to build the future growth."
Banks and staff unions had settled on a 17.5 per cent salary hike, to benefit about 702,000 public sector employees, besides agreeing to make 332,000 serving and retired employees eligible for pension.
Capital infusion of $30 bn over two years needed amid high dividend payouts and impairment ratios.
Bigger state-run banks such as Bank of Baroda, Punjab National Bank and Union Bank have also seen their bad loans rising in the December quarter.
The wider NSE Nifty touched a low of 10,652.40 before finishing at 10,671.40, showing a loss of 97.75 points, or 0.91 per cent.
The market breadth, indicating the overall health of the market, turned negative from positive
While the formation of a holding company will not outright privatise State-owned banks, officials believe it will help the Centre deflect criticism arising out of the latest banking scams.
In all, 14 unions representing bank employees and officers will be supporting the day-long stir.
Typically, those from the IIMs, Xavier Labour Relations Institute and Indian School of Business joined at Scale III, but graduates from other B-schools were recruited in scale II.
A section of analysts feel now may not be a bad time to buy select PSBs.
The Reserve Bank of India's decision to up commercial real estate property loan provision of banks may force the lenders to hike lending rates to the sector in the near term, said bankers.
RBI seeks detailed report on what happened between 2011 and now; bankers to recall loans to Nirav Modi entities.
Nifty PSU Bank index gained 1% led by Allahabad Bank, Andhra Bank, Syndicate Bank and IDBI Bank
Unlike in the past, when old private banks compromised upon underwriting standards to take on the bulk, they've now realised that scaling up at the cost of quality isn't worth the while. These banks have also readjusted growth targets when required, and rebalanced books to preserve capital and asset quality.
Processing fee waived on car, gold and personal loans till December
Though most experts remain bullish on the banking space, they suggest investors buy only those banks whose NPAs are at a manageable level of 3% to 4% and there is credit growth or earnings visibility.
Rating agency Moody's has placed 13 Indian banks, including State Bank of India, ICICI Bank and Punjab National Bank, on watch for possible downgrade under a global review of systemic support available for the banking sector.
Compare the post tax returns and tenure of debt instruments before investing.
PSBs are rushing through bond issuances to report healthy capital adequacy ratios by the year-end in anticipation of a healthy credit growth for the quarter ending March 31. These banks are seeking to maintain the 12 per cent capital adequacy ratio to follow international guidelines. While most investors have lapped up the Tier-II and subordinate bond issues, with some of them closing well ahead of the scheduled closing date, perpetual bonds are languishing.
The breadth, indicating the overall health of the market, turned negative. On the BSE, 1,581 shares declined and 1,246 shares fell. A total of 165 shares were unchanged.
The National Stock Exchange (NSE) on Monday conducted the first round of mock electronic bidding process for implementing application supported by blocked amount (ASBA), an alternative mode of payment for initial public offerings (IPOs), proposed by capital markets regulator, Securities and Exchange Board of India (Sebi).
As many as 20 public sector banks, including big ones like Canara Bank, Bank of Baroda and Union Bank, have failed to achieve the annual farm sector lending target till November, 2009.
Interest rates are set to fall again with public sector banks today agreeing to lower deposit and lending rates next month.
Soon after RBI's decision, three banks namely Yes Bank, HDFC Bank and Union Bank reduced the benchmark prime lending rate by 50 basis point each. SBI had last month slashed benchmark prime lending rate by 75 basis points to 13 per cent.
The Reserve Bank may announce cut in policy rates up to 50 basis points soon as inflation has been on way downward for past three successive weeks, bankers said.
The broader Nifty ended on top of 9,800 again.
At the prison, both Ranjan and Manglik's cell phones were pressed into service by the CBI. Why the CBI didn't bring its own equipment seems a mystery... Ranjan's cell handset was given to Indrani and Manglik dialed it. Indrani then spoke and her speech, that emanated from the phone, via speaker mode, was recorded.
The time is ripe for a merger of eight fund houses indirectly owned and controlled by the central government, says N Sundaresha Subramanian.
BBPS allows you to pay electricity, telephone, water supply, gas and DTH bills. Its scope will be expanded to include other payments like school and university fees, government taxes, insurance premiums, mutual fund investments, even credit card bills.
DLF, Indiabulls Real Estate, HDIL, YES Bank, Union Bank of India and Maruti Suzuki are down 4-12% on NSE.
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