Over a million employees in the banking sector and its consumers, roughly one-third of the nation’s adult population, will remember 2014 for the following reasons: One: In August, the Central Bureau of Investigation (CBI) arrested Sudhir Kumar Jain, chairman and managing director (CMD) of Syndicate Bank Ltd, for allegedly taking Rs.50 lakh as bribe. Jain, who took charge as chief of Syndicate Bank in July 2013, was allegedly offered the bribe for increasing the credit limit of a few firms, throwing banking norms to the wind.
Typically the last Banker’s Trust column every year is a fun piece on New Year resolutions never made by bankers and finance professionals. This year is no exception—with malice towards none. S.
Addressing the press after the Reserve Bank of India’s (RBI) board meeting in Kolkata early this month, governor Raghuram Rajan said the federal government has asked the Indian central bank to review the so-called priority sector lending obligations to encourage foreign banks to turn themselves into locally incorporated subsidiaries. The RBI is reviewing these obligations in the light of the concerns expressed by the foreign banks, so that the costs and benefits are clearly understood. In the recent past, this is the second instance of Rajan hinting at dilution of the priority loan norms for foreign banks.
Retail inflation accelerated to 11.24% in November, faster than what most analysts had estimated, and the highest ever since this series of inflation data was introduced in January 2012. This, coupled with a contraction of October factory output by 1.
The Reserve Bank of India (RBI) wants to expand banks’ footprint in Asia’s third largest economy where roughly two out of three adults don’t have access to formal banking services. In April, RBI had given licences to two entities to set up universal banks. It has followed it up recently, releasing norms for setting up small banks and payments banks.
Vikram Akula, once the poster boy of the Indian microfinance industry, is back in business. Akula, the ousted founder chairman of SKS Microfinance Ltd, India’s lone listed microlender, last week joined Vaya Finserv Pvt. Ltd, a business correspondent, as its chairperson.
Birendra Kumar, managing director and chief executive of International Asset Reconstruction Co. Pvt. Ltd (IARC), should be all smiles today.
As expected, Reserve Bank of India (RBI) governor Raghuram Rajan has left the key policy rate as well as banks’ cash reserve ratio (CRR), or the portion of deposits that commercial banks need to keep with the Indian central bank, unchanged in its bimonthly monetary policy review on Tuesday. However, he has made it clear that it is a question of a few months before RBI cuts its policy rate to signal an easy money policy. And, once it is done, we can expect a series of cuts to follow.