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Another Policy Reversal?

Lessons From Asian Crisis

Restructuring Monetary Policy

Public sector lender Bank of Baroda (BoB) plans to shed bulk deposits amounting to Rs 18,000 crore by the end of March, to bring stability to its funding profile and to improve interest margins. Bulk deposits due have already declined to Rs 50,000 crore by January-end from Rs 57,000 crore in December 2012.According to senior BoB officials, the share of bulk deposits could decline by 10 per cent, below the floor level indicated by the government to state-owned banks.In July 2012, the government had asked public sector banks to bring down their share of bulk deposits to 15 per cent by March 2013. It was a clear fallout of the drive by the then financial services sector secretary D K Mittal, to rework the banksâ€™ funding profile, to control finance costs and bring stability to resource.Banksâ€™ margins came under pressure in the third quarter (Q3) ended December 2012. BoBâ€™s yield on domestic advances dipped from 12.01 per cent in the quarter ended De

BoB plans to shed Rs 18,000-cr bulk deposits by March

Manappuram Finance Limited (MFL) has registered a 48 per cent dip in net profit for the quarter ended December 31, 2012. The company registered a net profit of Rs 84.38 crore, compared to Rs 161.37 crore for Q3 of the previous year.Cumulative net profit for the nine months  was down 14 per cent at Rs 349.86 crore, as against Rs 404.50 crore reported for the nine months up to December 31, 2011.Operating income for the quarter fell to 586.20 crore compared to Rs 721.37 crore reported for Q3 of the previous year. Profit before tax for the quarter stood at Rs 124.57 crore (Rs 239.54 crore) while provision for income tax was at Rs 40.19 crore (Rs 78.17 crore).Releasing the results to the media, V P Nandakumar, managing director & chief executive officer, said the company had faced greater stress on account of its high loan-to-value ratio and the subsequent realignment necessitated by regulatory changes.â€œHowever, we are confident that with th

Manappuram net profit slumps 48%

BS Reporter

The Reserve Bank of India (RBI) today said it was in talks with the government to amend the relevant laws to ensure that persons generating fake currency are punished and not those who possess such notes innocently.â€œWe are in negotiations with the government of India on how this law can be reviewed and changed, so the responsibility for the fake currency is actually on the people who are responsible for generating it,â€ RBI Governor D Subbarao told reporters after the board meeting here. â€œBut at the moment, regrettably, the holder of fake currency is responsible for that and if a branch manager says that he (the person with the notes) is accountable for it, then he is right,â€ Subbarao said.However, he said RBI has asked branch managers to be more sympathetic to people who come with fake currencies and go into the circumstances under which that person has come in possession of the currency notes. â€œAnd we could also simplify the process for filing of the

RBI for change in laws to deal with fake currency menace

Press Trust of India

Dewan Housing Finance forays into education loan space

Assam Chief Minister Tarun Gogoi has asked RBI Governor D Subbarao to consider a system of incentives and disincentives for banks in the state to bring their credit deposit ratio at par with the national average.The credit-deposit ratio, or CDR, has steadily risen to 46.6 per cent as on September 2012 but it is still far lower than the national average of 76.5 per cent, Gogoi said at a meeting with the RBI Governor here last evening.The Chief Minister said the availability of institutional credit per hectare of gross cropped area in the state is only Rs 2,626, while the all-India figure is much higher at Rs 15,379. 	Gogoi asked Subbarao to initiate suitable measures urgently to improve the institutional credit in the agriculture sector.

Improve CDR of banks in Assam: Gogoi to RBI

Sector-wise allocations in January 2013Software & services sector attracted the most investments, accounting for 33.33% of the total investments in terms of deal volume with an aggregate of $20.21 million. Healthcare equipment & services sector was second, attracting $29.64 million (13.33%) across six deals. (Click on graphic)

A Snapshot of pe activity & deals

The public sector lender Bank of Baroda (BoB) plans to shed bulk deposits worth Rs 18,000 crore by the end March to bring stability to funding profile and improve interest margins.

BoB to shed Rs 18,000 cr bulk deposits by March

Bank loans grew 16.04 per cent in line with Reserve Bank of India (RBI)â€™s projection for credit growth this year while deposits continued to lag behind at 13.08 per cent.According to data released by RBI, banks disbursed fresh loans worth Rs 8,500 crore in the fortnight ended January 15, while deposits came down by about Rs 11,500 crore.Deposit growth has consistently been falling this financial year and is yet to touch the 15 per cent mark as projected by RBI for this financial year.On the other hand, credit growth has been more or less on track though RBI revised it from 17 per cent to 16 per cent.Following the cental bankâ€™s reduction in cash reserve ratio and repo rate in January end, banks have started reducing their lending rate. But, most banks have refrained from reducing deposit rate due to slow pace of growth.Of late, State Bank of India, unable to deploy excess liquidity, is also facing a flight of deposits to ot

Deposit growth lags while credit grows in line with RBI projection

The growing interconnection between banks and gold loan companies with respect to the formerâ€™s exposure to the latter is a concern and gold loan firms should look for diversifying their source of funds, the K U B Rao panel, appointed by the Reserve Bank of India (RBI) to study issues relating to gold import and gold loan non-banking financial companies (NBFCs), said on Wednesday.The committee has recommended a slew of measures for regulating NBFCs, and has suggested RBI review the loan-to-value (LTV) cap of 60 per cent, which had hit the profitability of these companies hard in the first two quarters of this financial year. The consistent increase in the dependence of the gold loan NBFCs on the banking sector raises concerns and the companies should gradually reduce their dependence on bank finance, the committee said.The Association of Gold Loan Companies had sought permission to access additional funding via external commercial borrowings, securitisation and

Reduce dependence on banks, panel to gold loan firms

The rupee strengthened by 4 paise to Rs 53.12 a dollar in early trade on the Interbank Foreign Exchange on fresh selling of the American currency by exporters and banks.

Rupee gains 4 paise at 53.12/dollar

Banned Trade

Speaculation Over Loss

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