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Sunday, March 20, 2011
World Cup: India run past Indies to meet Aussies
Arkan Eyes Capacity Expansion through Dhs100m Dry Mortar Plant
Al Quoz Industrial Area to Gain from Emirates NBD’s Bouquet of Banking Services
Polystyrene Demand to Go Up in UAE
UAE Undertakes to Fight Food Insecurity
Credit Crunch Drives another Nail in MFIs’ Coffin
Jasmine Revolution Smelling in China Now.
Saturday, March 19, 2011
Indonesia Is Capable of Building over 30 Nuclear Reactors
Corporation Bank Partners with Commonwealth Secretariat to Deliver Youth Entrepreneurship Programme
SME Segment to Figure High on Federal Bank’s Agenda
Chennai,Mar,19.For the newly appointed Managing Director and CEO of Federal Bank, Mr Shyam Srinivasan, the SME segment is the immediate priority as he, buoyed by the bank’s solid footprints outside India, sets out to exploit opportunities for doing business matching .
Out of its 750 branches, Federal bank has identified 114 branches as SME and is going to establish regional commercial hubs that will have committed teams of sales executives who will aggressively generate business.
The underleveraged treasury products will be given prime attention. In order to secure full value for the SMEs domestic as well as international products will have to be rolled out, as several of the SMEs do cross-border transactions. The under-marketed foreign exchange products also need to be spotlighted. Given that several of the SMEs are looking beyond Indian shores, Federal Bank should be leveraging its relationship and scaling up its capability.
Federal Bank expects to boost the risk management by setting up 13 regional credit hubs. The bank already enjoys good technology platform like Finacle, CBS and also has the Internet and mobile banking.
Bankers Breathe Easily as Warning of Report to CIB Helps Defaulters Mend Their Ways
Mumbai, Mar,19.It would seem that the defaulters would now have to mend their ways and pay up or they could end up in the credit bureau’s negative list which could well jeopardize their future relationship with other banks that would refuse entertaining such individuals as have a bad credit history. Not only have a lot of banks breathed a sigh of relief, as well they might, some of them have actually got the defaulters to cough up their dues, as the warning of a possible report to the Credit Information Bureau works like a charm, convincing the defaulters to refrain from defaulting on their payments.
The gambit has apparently paid off as the banks try this as a first resort before appealing to the debt recovery tribunal or taking refuge in Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
The provisions of the Credit Information Companies (Regulation) Act, 2005 make it mandatory for all credit institutions including banks and housing finance companies to become a member of at least one credit information company (to name a few, Credit Information Bureau (India) Ltd, Experian Credit Information Company of India Pvt Ltd and Equifax Credit Information Services Pvt Ltd) with whom they would be sharing their credit data.
Sugar Prices May Head North This Month
It has been seen that sugar prices spiral north during Christmas season and the New Year’s as global consumption and demand of sugar during the festive season experience a surge. To meet domestic demand and increased consumption, increased domestic production as well as import of sugar assumes significance.
Let Egypt Be a Lesson and Allow People to Protest, White House Spokesman Tells Iran
Assange Extradition Hearing Concludes,
Saturday, March 12, 2011
EPFO Favors Larger Investment in Public Sector Bonds for Higher Returns
With this decision, EPFO is now in a position to park a larger chunk of its corpus worth Rs 3.5 lakh Cr in corporate bonds of PSUs. The decision was taken by Central Board of Trustees (CBT) on Thursday coming in the wake of EPFO having exhausted the existing limits of investment for AA- rated PSUs (25% of net worth) and AAA-rated PSUs (40% of net worth) such as Power Grid Corporation, Power Finance Corporation, IDBI Bank and Corporation Bank. EPFO is permitted by regulation to invest only 30-60% of its corpus in the bonds of state-held companies, banking and financial institutions, while the balance is invested in Government securities.
The Labour Minister, Mr Mallikarjun Kharge asserted, “The increased exposure to such public sector institutions will help us get more interest, while saving money. Higher returns would also help us finance the increased interest payout in the next fiscal.”
EPFO has suspended further investment in the scam-tainted LIC Housing Finance, until the CBI’s investigation into the multi-crore bribes-for-loan scandal is completed. Retirement fund manager, EPFO has invested up to Rs 454 Cr in the bonds of the LIC Housing Finance Company till date. The current investment norms enable investment up to Rs 846 Cr. However, EPFO, which can invest balance Rs 392 Cr in the housing finance company, has decided not to do so pending completion of the CBI’s investigation into the housing finance racket.
Is Gulf Emerging as the New Tax Haven after Switzerland for Indians?
Mumbai, Mar,12. The past few months have seen an unusual spurt in deposit flows into several banks in Dubai, Abu Dhabi and the UAE financial centres. Interestingly, the surge in deposits has come about following a pact between India and Switzerland on August 30 to exchange sensitive information on tax-evaders. The treaty was viewed as India’s first step towards obtaining information on funds stashed away in Swiss banks’ accounts. A similar agreement with Bermuda, another tax haven had been reached too.
If data compiled by the Central Bank of UAE is any indication, total bank deposits surged more than $11 billion in October compared to an average monthly growth of $2.7 billion since January 2010.
Speculation is rife that money is moving out of Swiss banks and Dubai is an obvious choice for Indians as there is no tax. The modus operandi for such transaction is often floating of a firm staffed with local directors (many of them being Indians working in the Gulf) in Dubai Free Trade Zone. Subsequently, funds are wired from a tax haven (say, Switzerland) to a bank account opened in the firm’s name. The money finally ends up in a local bank and the newly-established firm receives and shows it as consultancy fee from international clients or as trading income
Indian Banks’ Share in Global Banking Pie to Nudge 2.8% by 2015
Mumbai, Mar,12. If the forecast by a McKinsey & Company report is any indication, the share of domestic banks in the global banking pie could almost double from the current (or the end of financial 2009)1.5% (revenues worth $2850 bn) to 2.8% (revenues worth around $4000 bn) by the end of fiscal 2015. The underlying assets of the domestic lenders could nudge $3 trillion and deposits could go as far as around $2.3 trillion. In the backdrop of this stupendous growth, the banking and financial sector will continue to be the mainstay of the Indian economy.
The report also predicts that the next decade could see at least 5-6 domestic banks figure in the top global 100 list. Consolidation among the banks could also pick up.
The revenues of the domestic lenders more than quadrupled over the past decade from $11.8 bn in 2001 to $46.9 bn in 2010. Also, their net profit rose almost nine-fold from a meager $1.41 bn in 2001 to 12.06 bn in 2010.
Moreover, market capitalization of the top 5 lenders in the country including SBI, ICICI Bank and PNB is expected to rise higher from 55% in 2005 to 66% by the end of the current fisca
Indian Banks’ Share in Global Banking Pie to Nudge 2.8% by 2015
Mumbai, Mar,12. If the forecast by a McKinsey & Company report is any indication, the share of domestic banks in the global banking pie could almost double from the current (or the end of financial 2009)1.5% (revenues worth $2850 bn) to 2.8% (revenues worth around $4000 bn) by the end of fiscal 2015. The underlying assets of the domestic lenders could nudge $3 trillion and deposits could go as far as around $2.3 trillion. In the backdrop of this stupendous growth, the banking and financial sector will continue to be the mainstay of the Indian economy.
The report also predicts that the next decade could see at least 5-6 domestic banks figure in the top global 100 list. Consolidation among the banks could also pick up.
The revenues of the domestic lenders more than quadrupled over the past decade from $11.8 bn in 2001 to $46.9 bn in 2010. Also, their net profit rose almost nine-fold from a meager $1.41 bn in 2001 to 12.06 bn in 2010.
Moreover, market capitalization of the top 5 lenders in the country including SBI, ICICI Bank and PNB is expected to rise higher from 55% in 2005 to 66% by the end of the current fisca