With credit flow to corporate sector remaining weak, banks are betting big on advances to the retail sector. Banks expect that advances to retail customers would support credit growth in 2013-14 like the previous year. That is because demand for credit from the corporate sector is weak. Although some banks are confident that credit flow to corporate sector would improve eventually, for the time
Tag: bank
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World Bank chief welcomes idea of BRICS bank
World Bank President Jim Young Kim welcomed the idea of setting up a bank collectively by Brazil, Russia, India, China and South Africa or BRICS countries in order to fund their infrastructure projects. He said every single BRICS country has an enormous infrastructure deficit that simply can't be met by a single institution, certainly not the World Bank in and of itself
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RBI to issue clarification on bank licenses
Sources from the Reserve Bank of India (RBI) informed that some entities raised queries on the guidelines for new bank licences and the central bank would issue clarification on this by the early part of May. It may be recalled that in February 2013, the central bank released guidelines for new bank licences and a
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Financial crisis breaks consensus on 3 issues
Reserve Bank of India (RBI) Governor D Subbarao said pre-crisis consensus is broken on three macroeconomic issues - capital account convertibility, central bank intervention in exchange rate market and
capital controls. He said this while speaking at the IMF conference on Rethinking Macro Policy II in Washington
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Banks increase presence in rural areas
Data from Reserve Bank of India (RBI) shows that as of December 2012 211,000 villages in the country have bank connectivity compared to about 67,000 villages in March 2010. It may be noted that there are about 600,000 villages in the country. Bank connectivity is said to have risen mainly through business correspondents (BCs) and other
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CII chief wants RBI to work in tandem with govt to support growth
The newly elected President of Confederation of Indian Industry (CII) Kris Gopalakrishnan said the RBI must work in tandem with the government to boost economic growth. He said the Reserve Bank of India (RBI) must reduce interest rates by at least 100 bps in 2013-14. Steps like early implementation of GST (Goods and Serv
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SBI may plan to merge its associate banks with itself
Pratip Chaudhuri Chairman of State Bank of India (SBI) informed reporters that the capital condition of the bank is favourable for the merger of its associate banks with itself. Without giving a timeline for the merger, he said the bank is now open to merging its associate entities. The move will further enhance its already enormous balance shee
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Assocham wants RBI to issue licenses in staggered manner
In a note to the Reserve Bank of India (RBI), Assocham said the central bank may consider giving out new bank licences in a staggered manner to few players in a specific time frame given the uncertainties or volatilities associated with current business environment. The note pointed out that the granting of banking license could be a process, and not an event. The indus
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Assocham urges govt to support aviation sector
Industry body ASSOCHAM urged the civil aviation ministry, the Planning Commission and the RBI to work out a joint and a clear mechanism to give a boost to the aviation sector. In a communication to the government, the chamber raised concern that the sector faces policy and regulatory issues besides lack of finance, especially the equit
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Finance ministry gives nod to RBI proposal
The union finance ministry officials gave in-principle approval to the proposal of the Reserve Bank of India (RBI) to do away with the cumbersome procedure of incorporating a company by non-residents and facilitate foreign direct investments (FDI). Reports indicate that the proposal may facilitate inward remittances to meet pre-incorporation expenses of a co