Prime Minister Manmohan Singh and United Progressive Alliance (UPA) chairperson Sonia Gandhi flew down to Mumbai last week to open the first branch of India’s newest public sector bank, Bharatiya Mahila Bank, on the 96th birth anniversary of former prime minister, the late Indira Gandhi. It was a political event, attended by Sharad Pawar, Praful Patel, Murli Deora and Farooq Abdullah, besides Maharashtra chief minister Prithviraj Chavan and finance minister P. Chidambaram.
Forty listed Indian banks’ collective net interest income—the difference between what they earn on giving loans and what they pay to depositors—rose by at least 13% in the September quarter from a year earlier. Their so-called other income, or earnings from fees, commission and treasury operations, too, rose around 9%. Despite that, collective net profit of the 40 listed banks dropped close to 25%, to around Rs.
India’s wholesale inflation rose 7% in October from 6.46% in September and a recent low of 4.58% in May.
The government cleared the appointment of Arundhati Bhattacharya as the chairperson of State Bank of India, the nation’s largest lender, a week after her predecessor Pratip Chaudhuri’s term ended. For one week, the corner office on the 18th floor of the State Bank headquarters on Madame Cama Road at Nariman Point, Mumbai’s business district, was not occupied but the bank’s four managing directors were running the show. This, however, doesn’t mean that the government always takes time to act on such critical appointments in the financial sector.
The yield on the 10-year benchmark bond crossed 9% on Monday morning. It rose to as much as 9.13% before settling at around 9.
Private sector lender HDFC Bank Ltd, India’s most valuable bank, has increased its base rate—or minimum lending rate—by 20 basis points to 10%. One basis point is one-hundredth of a percentage point. This is in response to the Reserve Bank of India’s (RBI) 25 basis points hike in repurchase or repo rate on 29 October in its second quarter review of monetary policy.