Some bankers expect Reserve Bank of India either to cut cash reserve ratio (CRR) in the third-quarter monetary-policy review on January 29 or conduct open market operations (OMO) to overcome liquidity crunch in the banking system. It is learnt that slow growth in deposit rate, back-to-back auction of government bonds have strained liquidity in the banking system. According to reports, main
Tag: Banks
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Financial entities’ share in bond issue declines
Data collected by Prime Database shows that the share of financial sector entities in the total amount raised through private placement of bonds during April-September 2012 declined to 73.1 per cent from 90.3 per cent in 2011-12 and 78.3 per cent in 2010-11. The financial entities include primarily banks and non-banking finance companies (NBFCs). According to som
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Cabinet to decide on proposed bank holding company
According to government sources, the cabinet would consider the proposal for setting up a bank holding company for state-run banks soon. The holding company is intended to enable state-run banks to raise capital from the market instead of seeking funds
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Additional provisioning may hit PSBs
The earnings of public sector banks (PSBs) may take a beating in Oct-Dec 2012 quarter because of an additional provisioning of 0.75 per cent, as directed by the Reserve bank of India (RBI), analysts feel. Analysts expect private sector banks to post better earnings results during the quarter as compared to their public
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Ministry gets request for full tax break on provisioning
At a pre-Budget meeting with Finance Minister P Chidambaram, several banks have sought full deduction for income-tax purposes on the provisions made by them for bad and doubtful debts. If the request is accepted by the government, it would benefit banks in a big way at a time when non-perfo
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RBI revises norms for lending to small units
In view of the increase in price index and cost inputs, Reserve Bank of India revised sub-targets for lending to the micro and small enterprises sector. According to the new norms, banks must divert 40 per cent of total advances to the sector to micro (ma
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Restructured loan ratio rises in banking system
Data from Reserve Bank of India (RBI) suggests that the ratio of restructured to gross advances is at a five-year post-Lehman high of 5 per cent for the banking system as a whole. It may be recalled that in 2008-09, RBI allowed the “one-time” dispensation to restructure sub-standard asse
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Gross NPAs of state-run banks rise
Minister of State for Finance Namo Narain Meena informed Lok Sabha that the gross non-performing assets (NPAs) of public sector banks have increased from 2.28 per cent in March 2010 to 4.01 per cent in September 2012. During the same period, the gross NPA (as a percentage of gross advances) of SBI Group, rose from 2.82 per cent in March 2010 to 5.16 per cent in September 2012,
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Firms seek debt recast for 2nd time
More and more companies are applying for second round of corporate debt restructuring (CDR) because of their inability to service loans, a report by brokerage firm Prabhudas Lilladhar shows. The report shows that not only is the number of debt-restructuring proposals reaching CDR cell on the rise, the quality of cases is
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Bankers to take final call on debt recast for Suzlon
Reports indicate that lenders of the debt-ridden Suzlon Energy may meet soon to take a final call on the corporate debt restructuring (CDR) exercise. Suzlon has asked bankers to provide the company with fresh loans of Rs 2,000 crore to meet payment requirements, Rs 3,000 crore as a working capital loan and a