Rupee Seen Range-Bound, Forwards Easy

Business Standard

French Bank Managers Held Over Protests

The Reserve Bank of India (RBI) has said before issuing the final norms on fresh banking licences, it would arrive at a consensus with the government on allowing brokerages and real estate developers into the sector. In its draft guidelines on new licences, RBI had said entities for which real estate, construction and brokerage activities accounted for at least 10 per cent of the income or assets would be barred from opening banks. But, the government has stepped up pressure to allow licences to these entities.â€œWhen there is consultation, obviously, you have to take into account the other side, its viewpoints. We will come to a mutual position and then issue (the guidelines),â€ RBI Deputy Governor Anand Sinha said on the sidelines of an event. In December, Parliament had amended the banking laws to give greater powers to the central bank, including the power to supersede bank boards. At that time, it was expected RBI would release the final norms on banking licences soon

RBI says will reach consensus with govt

BS Reporter

Srei Infrastructure Finance, an Indian lender to road and power projects, plans to sell shares of United Spirits it got as collateral for lending to Kingfisher Airlines to Diageo.Diageo on November 9 said it will buy a controlling stake in United Spirits for $2.04 billion. The maker of Johnny Walker whiskey said it will acquire 27.4 per cent of Indiaâ€™s largest distiller at Rs 1,440 a share and will make a tender offer for 26 per cent of the balance.Once the regulators approve the transaction â€œthen we get our money from Diageo,â€ Srei Vice Chairman Sunil Kanoria said in an interview on February 7. â€œWe get our money, we go home.â€Srei acquired 4.9 million shares of United Spirits after buying a $82 million loan advanced to grounded carrier Kingfisher Airlines by ICICI Bank. United Spirits shares have risen 41 per cent since November 9 and are trading 33 per cent higher than Diageoâ€™s offer price. Kanoria didnâ€™t explain why he isnâ€™t selling

Srei Infra to sell United Spirits shares to Diageo

Bloomberg

Bankers have asked the Reserve Bank of India (RBI) to cut the Statutory Liquidity Ratio (SLR) limit if it also considers reducing the Held-To-Maturity (HTM) limit of banks.In a meeting of chief financial officers (CFOs) of public sector banks with RBI today, the central bank sought feedback on the idea of reducing the HTM limit. The CFOs suggested a cut in the SLR limit from the present 23 per cent, so that the impact on banksâ€™ balance sheets was minimal.RBI has been in favour of reducing the HTM, whose upper limit is 25 per cent of SLR securities but it is traditionally aligned to the SLR ratio, currently 23 per cent. Under HTM, banks hold government securities (G-Secs) until the date of maturity. G-Secs under HTM are valued at amortised cost and are not marked-to-market (the exercise of revaluing at current cost).RBI had formed a working group on enhancing liquidity in the G-Secs and interest rate derivatives market, under the chairmanship of R G

Bankers want SLR reduced if HTM bond limit is cut

Taking serious note of increasing instances of credit card frauds, the Reserve of Bank of India (RBI) said it would probe such incidents. It also asked banks to investigate such cases and take steps to plug loopholes. â€œWe have to find out how it has happened, where it has happened and then take corrective action,â€ RBI Deputy Governor Anand Sinha said.He conceded that the magnitude of the frauds is large and said the central bank would consult with other banks to deal with the situation.If such frauds occur despite robust risk management system, then banks should look for the loopholes and close them, he noted.According to a 2011 report by RBIâ€™s working group on securing card present transactions, frauds have shot up in tandem with the increasing use of credit/debit cards at delivery channels.These frauds are the fallout of cards being lost or stolen, data being compromised and skimming, the report noted. At present, the extent of fr

'Secure systems to tackle card frauds'

Says the central bank is making best efforts to curb it

Inflation still high, says Subbarao

Standard & Poor's Ratings Services (S&P) today affirmed its 'BBB-' long-term and 'A-3' short-term issuer credit ratings on Axis Bank. The outlook on the long-term rating is negative. The rating agency also affirmed the issue ratings on the bank's outstanding debt

S&P affirms BBB-, A-3 ratings on Axis Bank with negative outlook

IDBI Bank has reached a landmark of Rs 1 lakh crore (total Rs 1.08 lakh crore) in respect of central tax collection for the current fiscal, said a press release issued by the bank on Friday.

IDBI Bank crosses Rs 1 lakh cr mark in central tax collections in FY13

State Bank of Hyderabad (SBH), an associate bank of the State Bank of India, has cut down its base rate by 5 basis points (bps) and  benchmark prime lending rate (BPLR) by 10 bps.

SBH cuts base rate by 5 bps, BPLR by 10 bps

Credit rating agency, India Ratings, says that the widening mismatch in banksâ€™ funding will continue to put pressure on systemic liquidity and keep money market interest rates elevated. The growing refinancing pressure is ultimately reflected in the current inverted-to-flat yield curve, which, together with sticky inflation, discourages long-term savings and may dilute transmission of monetary easing.

Term liability can ease funding strain in banks, boost liquidity: India Ratings

The RBI is expected to issue new bank licence guidelines "very soon", deputy governor Anand Sinha said on Friday.

RBI deputy expects bank licence rules 'very soon'

Reuters

The rupee today depreciated by 22 paise to 53.44 against the dollar in early trade on the Interbank Foreign Exchange on fresh demand for the US currency.

Rupee down 22 paise at 53.44/dollar

Press Trust of India

Ignominy Of Indian Investment

The rupee is expected to strengthen from current levels by end-March, amid foreign inflows into the country.The Street expects current account deficit (CAD) concerns have been factored in by the market, due to which it might not affect the rupeeâ€™s movement further against the dollar. It is expected that in the Budget later this month, the finance minister will announce various reforms that will result in attracting more flows from foreign institutional investors into the country.A median forecast of 10 experts polled by Business Standard shows the rupee will end at 53 a dollar by March 31.But, those who expect it to weaken against the dollar from current levels say dollar demand by oil companies will limit rupeeâ€™s strengthening. It ended at 53.22 a dollar on Thursday compared with the previous close of 53.16.â€œThe rupeeâ€™s strengthening will be helped by financial sector reforms, anticipation of disinvestments and expectations of Bu

Re seen strengthening to 53 a dollar by end-March

Say Andhra Pradesh Act continues to hurt operations

MFIs struggle to repay restructured loans

Search panel to interview candidates for CMD and ED posts next week

Norms for appointment of CMDs in public sector banks relaxed

The Insurance Regulatory and Development Authority (Irda) has proposed a lower solvency margin for insurers, at 145 per cent as against 150 per cent currently, after including a risk charge. In an exposure draft on a risk-based solvency approach, Irda said the expert committee constituted to suggest the road map to move to Solvency-II norms was in the process of deliberations.Irda said the requirement would be applicable from 2013-14 and a certificate needed to be furnished on March 31, 2014. It has proposed to impose a risk charge for debt investments of insurers. According to the Irda (Investment) Regulations 2000, a majority of funds need to be invested in government securities and approved investments, and no risk charge is imposed on insurers who invest in riskier instruments.â€œThe immediate need is felt to define the risk charge on debt instruments and loans and advances of the insurers, to address the spread risk on various categories of debt instruments

Irda proposes 145% solvency margin for insurers

Ombudsman Aplenty?

The Fourth Dimension

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