Owing to high interest rate and slowdown in the economy, non performing assets (NPAs) with the public sector banks (PSBs) rose about 90 basis points year-on-year during 2012-13. However, their peers in the private sector managed to avoid rise in NPAs because of better risk management and low exposure to risky
Category: Infrastructure Finance
Post
Post
Norms for gold imports tightened further
By imposing restrictions on the agencies concerned the Reserve Bank of India (RBI) has further tightened the norms for import of gold. The Central bank has said these entities can import gold on a consignment basis only to meet genuine needs of gold jewellery exporters. Industry experts said the measures announced on June 4 would dampen gold imports, which might come down by 100-120 tonne during the current financial year.
Post
Experts call for banking operation in unbanked areas
Experts feel that the initiative of the Reserve Bank of India (RBI) to provide new banking licenses must promote banking in the under-banked areas of the country. They feel that residents in the under-banked areas are, for the most part, dependent on shadow-banking operators because of the formal banking sector's failure to give them access
Post
SBI to take Rs 2 bn hit due to provisioning norms
Pratip Chaudhuri, Chairman of State Bank of India (SBI) informed that the total impact of Reserve Bank of India (RBI)Â’s revised norms on provisioning for non-performing assets (NPAs) and restructured loans would be about Rs 200 crore a year. He said this would be less than 1 per cent on a PBT (profit before tax) basis and hence it may not have a significant impact on SBIÂ’s profitability
Post
Govt’s move may affect urban infra projects
The decision of the Kerala government to add new staffs to the team of the Kerala Sustainable Urban Development Project (KSUDP) is expected to go against the interest of the project. The new entrants to the project will have to study the entire project from the start and hence completing them within a time-bound manner will not be easy. This woul
Post
Kerala govt mulls Rs 20 bn investment proposals
Kerala Urban affairs Minister Manjalamkuzhi Ali informed a gathering that the state government is planning to bring around Rs 2,000 crore investment opportunities through a new initiative in the state. He informed this after inaugurating a discussion on comprehensive development of Kozhikode. He also informed that the state government would showcase five urban development projects in the investors meet in Koch
Post
RBI to extend validity of banking license
Reserve Bank of India (RBI) decided to extend the validity period of the in-principle approval for setting up a banking business from one year to 18 months. The central bank announced this decision in a recent clarification on the draft banking license norms issued some months ago. According to the original norms, the in-principle approval is valid upto 12 months and if the licensee is unab
Post
Bank licensees may set up NOFHC
Reserve Bank of India (RBI) clarified that the prospective bank licensee must set up a non-operative financial holding company (NOFHC). Further, the central bank said if any individual belonging to the promoter group chooses to become a promoter of the NOFHC, he along with his relatives and along
Post
RBI may give more time to new licensees to set up banks
It is expected that the Reserve Bank of India (RBI) is to allow new banking licensees more time to set up banks. The earlier guidelines said aspirants would get a year after in-principle approval to do so, failing which the licences were to be withdrawn. The RBI would shortly announce a consolidated clarification on the new licence norms.
Post
PFC to enter banking, eyes stake buy in State-run banks
In a bid to enter banking sector the government-run Power Finance Corporation (PFC) has now decided to acquire a 'substantial' stake in a public sector bank. It has already written to the ministries of finance and power and is waiting for their nod. Like its peers ICICI, IDBI and HDFC, PFC also intends to enter the banking sector.