Industry&rsquo;s wait for new bank licences may get a bit longer as the Reserve Bank of India&rsquo;s (RBI&rsquo;s) suggestions to amend the Banking Regulation Act will not be incorporated in the report of the Standing Committee on Finance in the Banking Laws (Amendment) Bill, 2011. However, draft guidelines for the entry of new private sector banks are expected to be announced shortly.

Industry wait for new bank licences may get longer

Business Standard

Regional rural banks (RRBs) may need more time to shift entirely to core banking solutions (CBS) than that allotted by the regulator. The deadline to adopt core banking solution is set to expire at the end of September.

RRBs may take more time to migrate to core banking

Corporate volume growth in expected to get slower in the year&rsquo;s second half due to monetary tightening and inflationary pressure, says Fitch, the rating agency. Sectors likely to be affected are automobiles, auto ancillaries and real estate, with construction expected to be impacted over the next 12-18 months. However, the moderation in growth for most credits will remain within Fitch's tolerance zone and this is unlikely to have a rating impact during 2011, it said on Thursday.

Inflation, tighter money to lower corporate growth, says Fitch

While retaining economic growth estimates for the current financial year at eight per cent, the Reserve Bank of India (RBI) cautioned about emerging downward risks emanating from the uncertain global environment and domestic inflationary pressures. The central bank also said global commodity prices would shape its monetary policy stance in the future.

Growth prospects for 2011-12 subdued: RBI

The Reserve Bank of India&rsquo;s (RBI) gross income for 2010-11 rose 12.7 per cent to Rs 37,070 crore from Rs 32,884 crore a year ago, owing to an increase in earnings from domestic assets. The increase more than offset the decline in income from foreign sources. RBI's accounting year ends in June.

RBI's income grows 12.7% in 2010-11

The Reserve Bank of India (RBI) has sought the close monitoring of the twin deficits&mdash;the fiscal deficit and the current account deficits&mdash;as there are chances of these widening, following the slide of the global economy and its spillover to the domestic economy.

'Fiscal, current account deficits should be closely monitored'

State-run lender Bank of India today said it had raised $200 million to expand its foreign operations.

BoI raises $200 mn to expand foreign operations

Press Trust of India

Warren Buffett may have sought to rescue marquee names like Bank of America and Goldman Sachs by investing $5 billion each, but his much-hyped insurance debut in India could itself do with some rescue efforts.

Little appetite for Buffett in India

Federal Reserve Chairman Ben S Bernanke said the central bank still has tools to stimulate the economy without providing details or signaling when or whether policy makers might deploy them.

Bernanke keeps us guessing on stimulus 

The Reserve Bank of India (RBI) has asked banks to develop effective risk management controls for lending to small scale enterprises (SME).

'Banks should lend to SMEs with caution'

Banks operating in the Orissa circle have managed to achieve only 34 per cent of the Annual Credit Plan (ACP) by the end of June this year.

Banks achieve 34% of Annual Credit Plan by June-end

The growing Indian diaspora and business opportunities in Dubai have excited Indian bankers in the region. No wonder, a number of public sector banks like Union Bank of India, Indian Overseas Bank and Federal Bank have started talks with Dubai Financial Services Authority (DFSA), the independent regulator for Dubai International Financial Centre (DIFC), to commence operations there. However, the Central Bank of Dubai has not shown any keeness to give them branch licences just as yet.

Regulation hitch for Indian bank in Dubai

India's rupee and Thailand's baht led declines among Asian currencies this week on signs economic growth is slowing in the region and speculation cooled that the Federal Reserve will unveil further stimulus measures.

Asian currencies fall on slowdown fears 

The government has decided to sanction Rs 2,000 crore to some public sector banks as part of its recapitalisation drive.

Govt to sanction Rs 2,000 cr for banks

The government could face difficulties in managing its borrowing programme for the current fiscal amid the prevailing tight liquidity conditions as banks hold a higher proportion of government securities, the RBI said.

Govt may face hurdles in FY12 borrowing target: RBI

The RBI has said Indian banks would adhere to the globally agreed timeline for implementation of Basel III norms and guidelines in this regard will be issued in the near future.

RBI to issue guidelines for Basel III implementation

With rising interest rates and high inflation denting the bottom line of small businesses, the finance ministry has directed public sector banks not to increase the equated monthly instalments (EMIs) on loans to small and medium enterprises (SMEs), village industries and artisans.

Banks asked not to raise EMis of SMEs

Some of the public sector banks and regional rural banks (RRBs) operating in Orissa have made tardy progress in the area of financial inclusion in the state.

Tardy progress on financial inclusion in Orissa

The yields on government bonds are likely to open low but concerns on inflation and fresh supply in the holiday-shortened trading week may exert upward pressure. On Friday, yields on the 10-year benchmark government bond closed at 8.30 per cent, up from 8.25 a day ago. The bond yields traded in the range of 8.22-8.30 per cent last week.

Yields, rupee seen down on global risk aversion

 A Reserve Bank panel has advocated tough new norms for non-banking financial companies (NBFCs) with the aim of strengthening the regulatory and supervisory framework for such lenders.

RBI panel for higher risk weights for NBFCs

The Reserve Bank of India (RBI) today unveiled the draft guidelines on new banking licences, pegging the minimum required capital to set up a bank by a corporate at Rs 500 crore while limiting the foreign shareholding at 49%.

Companies will need Rs 500 cr to start banks: RBI

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