February 23, 2010
Page 1
Financial Market
FIIs may get to buy commexes’ stake in
offmarket deals (ET-11)
The finance ministry is likely to allow FIIs to buy
stake in commodity exchanges such as MCX and
NCDEX, through deals that are not executed on
stock exchanges.
SEBI’s KYC diktat has foreign banks worried
(ET-14)
Some foreign banks are likely to approach the RBI
seeking clarity on the execution of SEBI’s fiat on the
KYC norms, as compliance may involve releasing
certain confidential client information.
Banking
Banks may have to pay dearly for poor
service (ET-1)
Banks with poor customer service standards may
have to set aside more capital, according to RBI
report. This move to charge higher capital would be
in line with the ultimate aim of regulation, to move
towards an outcome based approach where
customer outcomes can be quantitatively measured
and regulatory response be formulated accordingly.
The regulator has also asked banks not to
discriminate in lending rates between old and new
customers, if they fall in the same risk category.
Lending rates will be stable for 5-6
months:Bhatt (ET-8)
SBI on Monday said banks’ lending rates are
expected to remain stable in the next 5-6 months
because of the slow credit offtake despite RBI hiking
CRR by 75 basis points. Mr Bhatt, however, said
there was some movement on deposit rates. He
pointed out that a couple of banks have already
increased their deposit rates. SBI said the
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proposed base rate for the bank seems to
be around 8%.
Financial inclusion plan excites banks
and telcos (FE-1)
Banks expect FM to spell out his version of
financial inclusion in the budget on Friday.The
plan involves using the vast telecom netwotrk
built up in the country to provide banking
services to the poor and remove the physical
limits of bank branches.
Economy
India can comfortably finance deficit,
says Goldman Sachs (FE-2)
Goldman Sachs on Monday said India will be
able to comfortably finance its historic fiscal
deficit (projected at 6.8% of GDP this fiscal) and
the country’s net borrowing in the coming fiscal
is likely to be lower than this year’s.
Re rises, 10-year yield at 2-week low
(FE-13)
The rupee snapped a 2-day fall to strengthen,
as a rise in local shares raised expectations of
a return of portfolio inflows and a weeker dollar
triggered buying in the local currency from
exporters.
Articles
Inclusive growth’s new avatar (BL-6)
-Ashoak Upadhyay
Bank margins to be hit by new norms (FE-8)
- Shobhana Subramanian