Bank of Maharashtra lowers base rate by 15 bps to 10.25%

 

       Current account deficit has widened but comfortable, says RBI Governor:

At a time when the country’s current account deficit (CAD) has widened to $10.1 billion in the quarter ended September 2014, RBI Governor allayed concerns saying the central bank was still comfortable with the CAD at 2.1% of GDP.

       RBI reviewing priority lending norms for foreign banks:

 RBI is reviewing the priority sector lending norms for foreign banks; after which it will “nudge” them to convert their Indian branches into wholly-owned subsidiaries, RBI Governor said. According to him, foreign banks have expressed their concerns and obligations (to the central bank and the Government) that they will have if they convert their branches into wholly-owned subsidiaries.

       Separate chairman, MDs for PSU banks:

 Public Sector Banks are set to have non executive chairman and separate managing directors from the current financial year as Government tries to rework the structure on the lines of private banks to improve corporate governance standards.

       Govt’s stake dilution expected to aid banks Basel–III push:

 Bankers believe the government’s move to gradually reduce its stake to 52% will make it easier for them to prepare a roadmap to meet Basel-III capital requirements by 2019. Some of them are hoping to hit the capital market next year — Canara Bank, Union Bank, Central Bank of India and Vijaya Bank have sought the government’s approval to raise capital via equity market.

       Govt. cutting stake will lead to sectoral reforms:

 SBI Chief Ms Arundhati Bhattacharya  said Cabinet’s decision to pare stake in state-owned banks will lead to a fresh round of banking reforms, and force these financial institutions to be more competitive.

       Differential Voting rights for PSU Banks sought:

SBI is keen to issue shares with differential voting rights (DVR) for meeting additional capital requirements under Basel-III capital adequacy norms.

       Common account in works for all financial assets:

 Financial regulators, including RBI, SEBI and IRDA are working on creating a common account aggregation facility, which may allow people to get details of all their financial assets in one place.

       Bank of Maharashtra lowers base rate by 15 bps to 10.25%:

Bank of Maharashtra on Thursday cut base rate by 15basis points to 10.25%. The Pune-based lender is the second bank to cut the lending rate. Axis Bank had pared its base rate by 10 bps in October to 10.15%.

       Bandhan now closes in on Grameen Bank:

Bandhan, the country’s largest microfinance company, is competing closely with Bangladesh’s Nobel Prize-winning Grameen Bank to become South Asia’s largest micro credit provider. It is already the largest non-deposit taking microfinace institution (MFI) in the world.

       India Inc will reduce borrowing by refinancing debt: RBS head:

 India Inc is likely to see a significant number of refinancing transactions in calendar year 2015to reduce its cost of borrowing by refinancing its debt, according to the Royal Bank of Scotland (RBS).

       Life Insurance Council bats for reduction in service tax:

Life insurers have asked for parity with other financial products such as mutual funds and fixed deposits, which do not attract service tax on maturity.