Like other big industrial houses, the Bajaj Group is interested in venturing into banking but there are some hurdles in the way as the regulator is not interested in issuing new banking licenses to large industrial houses. On the other hand Rahul Bajaj, chairman of Bajaj Finserv and Bajaj Auto Finance, is optimistic about getting licenses.
The Reserve Bank of India will be releasing draft of guidelines on the issue of new banking licenses to corporate thus company’s entry will depend on these guidelines.
The Delhi government has not put any restrictions on giving banking licenses to private corporate groups and NBFCs and is open to reconsider the norms. But, RBI is not interested in allowing industrial houses to enter into banking space.
The shareholders of Bajaj Auto Finance and Bajaj Finserv are quite interested in entry of group into banking. Bajaj told shareholders of Bajaj Finserv and Bajaj Auto Finance, “We are in principle interested in getting into banking.”
Bajaj said, denying industrial houses banking licenses is not justified, instead the groups should be given license as they had the track record, financial standing and the net worth needed however, RBI can put restrictions on loans and investments to the group companies as safeguards. He suggested, “Give it to the good guys and not those who will run away with the depositor’s money.” He said, “We can’t go back to the old policies in this age and time.”
Bajaj accredited that RBI steered the economy well in difficult times, managed interest rates and liquidity well but he disagreed on the issue of not allowing the large industrial houses into banking.
Either Bajaj Finserv or its subsidiary, Bajaj Finance, which will be used to get into banking, will be depending on their eligibility criteria. He said, “We intend to do it as a new company. It will need capital of Rs 500 to Rs 1,000 crore and BFL will not be able to do it, so it could be Bajaj Finserv.”
Thursday, July 22, 2010
Tuesday, July 20, 2010
Standard Chartered launched online remittance service for NRIs
Standard Chartered Bank has launched its online remittance service Transfer2Home for NRIs.
According to a press release by the bank, using this service the customers will be able to transfer money to India from the US, UK, UAE, Singapore, Hong Kong and Bahrain.
To offer remittance service in these countries bank has tied-up with TimesofMoney.
TimesofMoney is a leading payment service provider and has tie-up with various financial institutions offering them money transfer service. Under its private label remittance service it offers services to the global cross-border money transfer industry.
Its transaction processing is fully compliant with payment norms suiting regulatory framework in several countries worldwide.
The release said, the bank has also signed strategic deal with BNY Mellon to offer Automated Clearing House (ACH) based remittance service from the United States.
BNY Mellon offers asset management and securities servicing globally. BNY Mellon’s Treasury Services group has high-quality expertise in global payments, trade services cash management, capital markets, foreign exchange and derivatives thus helping clients make payments, optimize cash flow, and manage liquidity more efficiently around the world in more than 100 currencies.
According to a press release by the bank, using this service the customers will be able to transfer money to India from the US, UK, UAE, Singapore, Hong Kong and Bahrain.
To offer remittance service in these countries bank has tied-up with TimesofMoney.
TimesofMoney is a leading payment service provider and has tie-up with various financial institutions offering them money transfer service. Under its private label remittance service it offers services to the global cross-border money transfer industry.
Its transaction processing is fully compliant with payment norms suiting regulatory framework in several countries worldwide.
The release said, the bank has also signed strategic deal with BNY Mellon to offer Automated Clearing House (ACH) based remittance service from the United States.
BNY Mellon offers asset management and securities servicing globally. BNY Mellon’s Treasury Services group has high-quality expertise in global payments, trade services cash management, capital markets, foreign exchange and derivatives thus helping clients make payments, optimize cash flow, and manage liquidity more efficiently around the world in more than 100 currencies.
Friday, July 16, 2010
Use of plastic money on increase in India
In Western countries using credit and debit cards is very common thing. Now, in India it is becoming a part of Indian shopping culture. However western countries have been facing credit card abuse by shopaholics that put an entire country in debt. In India, it is yet to be seen whether the younger generation is able to handle in better way.
Now days many college students have debit cards so that, they don’t have to ask for cash from their parents. Therefore it becomes necessary to see how students take care of this.
Anirudh Wodeyar, a student says, “I feel that credit cards, more than debit cards, can prove to be dangerous for youngsters like us because of their higher limits. Having either makes us feel as though we have an unlimited source in our wallets with which we can whip up a treat to our friends or host a party or anything else.”
However most of the youngsters know how to handle cash, then also, sometimes they might feel difficult to deal if frequenting restaurants and theatres become a part and parcel of daily life.
Anirudh points out, “More often than not, students are aware that they shouldn’t spend more than a certain amount of money,” says Pooja, a student. “But the peer pressure of being called kanjoos can be tough to handle.”
According to some it is easy to keep track of spending with card as it gives an idea of where exactly your money has gone. Abhijith Vijayendra, a third year engineering student says, “Spending through cash is not as effective as paying for the credit card bill in one shot at the end of the month. People who are responsible realize how much they have actually spent and keep a tab on the expenses through such things.”
It is not that youngsters over spend with cards, the splurging problem can be seen in adults also. Anirudh says, “I’d say in general, with reference to the middle class youngsters who dominate
today's youth, we’re pretty careful with money whether it’s spent electronically or in paper.”
In fact students tend to be careful as they know, they aren’t earning. Some students still prefer cash over cards realizing, the pressure might have to deal with the card.
Abhijith says, “Spending in cash is better because you don’t get that massive accumulated bill or statement at the end of the month. As they say, Zor ka jhatka dheere se lage.”
Now days many college students have debit cards so that, they don’t have to ask for cash from their parents. Therefore it becomes necessary to see how students take care of this.
Anirudh Wodeyar, a student says, “I feel that credit cards, more than debit cards, can prove to be dangerous for youngsters like us because of their higher limits. Having either makes us feel as though we have an unlimited source in our wallets with which we can whip up a treat to our friends or host a party or anything else.”
However most of the youngsters know how to handle cash, then also, sometimes they might feel difficult to deal if frequenting restaurants and theatres become a part and parcel of daily life.
Anirudh points out, “More often than not, students are aware that they shouldn’t spend more than a certain amount of money,” says Pooja, a student. “But the peer pressure of being called kanjoos can be tough to handle.”
According to some it is easy to keep track of spending with card as it gives an idea of where exactly your money has gone. Abhijith Vijayendra, a third year engineering student says, “Spending through cash is not as effective as paying for the credit card bill in one shot at the end of the month. People who are responsible realize how much they have actually spent and keep a tab on the expenses through such things.”
It is not that youngsters over spend with cards, the splurging problem can be seen in adults also. Anirudh says, “I’d say in general, with reference to the middle class youngsters who dominate
today's youth, we’re pretty careful with money whether it’s spent electronically or in paper.”
In fact students tend to be careful as they know, they aren’t earning. Some students still prefer cash over cards realizing, the pressure might have to deal with the card.
Abhijith says, “Spending in cash is better because you don’t get that massive accumulated bill or statement at the end of the month. As they say, Zor ka jhatka dheere se lage.”
Wednesday, July 14, 2010
Yes Bank, Poalim Capital together to offer expertise to firms on cross-border deals
YES Bank a private sector lender and Poalim Capital Markets, a leading Israeli investment bank and a part of Bank Hapoalim B.M inked a co-operation-agreement to offer advice to Indian and Israeli firms on cross-border deals.
As per this agreement YES Bank and Poalim Capital Markets will able to provide their combined expertise, strong local knowledge and excellent corporate relationships to open up mergers and acquisitions, joint ventures, equity raises and merchant banking opportunities for their respective clients. This will help in increase the investment flow in the Indo-Israeli corridor.
YES Bank's Managing Director and CEO Rana Kapoor said, "This alliance with Poalim Capital is another step forward in our commitment towards the Indian and Israeli business corridor. This privileged partnership will enable us to further enhance our investment banking services and facilitate overall development of both the nations through strategic interventions."
Poalim Capital Markets's CEO and President Amir Aviv said, "In our strategic plan for 2010, we marked India as an important geography to expand our investment banking capabilities, and after careful consideration of various alternatives we decided to join forces with Yes Bank."
As per this agreement YES Bank and Poalim Capital Markets will able to provide their combined expertise, strong local knowledge and excellent corporate relationships to open up mergers and acquisitions, joint ventures, equity raises and merchant banking opportunities for their respective clients. This will help in increase the investment flow in the Indo-Israeli corridor.
YES Bank's Managing Director and CEO Rana Kapoor said, "This alliance with Poalim Capital is another step forward in our commitment towards the Indian and Israeli business corridor. This privileged partnership will enable us to further enhance our investment banking services and facilitate overall development of both the nations through strategic interventions."
Poalim Capital Markets's CEO and President Amir Aviv said, "In our strategic plan for 2010, we marked India as an important geography to expand our investment banking capabilities, and after careful consideration of various alternatives we decided to join forces with Yes Bank."
Wednesday, June 16, 2010
Banks to add new clause to tighten loan settlement norms
The loan defaulters who try to settle down their liabilities through one-time settlement scheme will find difficulty as public sector lenders are planning to add a clause that will bar them from withdrawing criminal cases against private persons, irrespective of a settlement.
This was decided in a recent meeting of 10 bank chiefs with officials from the Reserve Bank of India, Central Vigilance Commission and the Central Bureau of Investigation (CBI). The need to add such clause was considered necessary in view of the recent increase in cases of fraud. The officials who attended the meeting told Business Standard that there were several loopholes in the OTS scheme therefore it became necessary to take such step. Moreover banks did not have any uniform policy for the amount on which a settlement could be made.
Public sector banks mainly got into OTS schemes with borrowers in order to recover a part of the outstanding amount and minimize the losses on account of non-performing assets (NPAs). In the recent past, banks have gone in for an OTS scheme multiple times with the same borrower for the same or less than the settlement money received earlier.
According to a bank executive, “Banks have to rely on collaterals (as the underlying asset) for OTS schemes as primary securities are not available by the time the fraud surfaces. Instructions were issued for the OTS scheme and sharing of information on the borrower's accounts among the multiple financing banks.”
It has also been noticed that securities are distress-valued and, in case the collateral amount is more than the loan outstanding, the settlement is done on a lesser amount. Also, CBI officials said that the banks do not report about all the frauds.
As per RBI data, out of the 44 cases of frauds of Rs 1 crore or more, banks did not reported about 33 cases. The Central Vigilance Commissioner said, “Banks reported there is hesitation on the part of CBI to take up cases of frauds involving over Rs 1 crore.” During 2008-09, according to RBI report, public sector banks reported about only 3,425 frauds as against 3,004 in the previous year, representing an increase of 14 per cent.
This was decided in a recent meeting of 10 bank chiefs with officials from the Reserve Bank of India, Central Vigilance Commission and the Central Bureau of Investigation (CBI). The need to add such clause was considered necessary in view of the recent increase in cases of fraud. The officials who attended the meeting told Business Standard that there were several loopholes in the OTS scheme therefore it became necessary to take such step. Moreover banks did not have any uniform policy for the amount on which a settlement could be made.
Public sector banks mainly got into OTS schemes with borrowers in order to recover a part of the outstanding amount and minimize the losses on account of non-performing assets (NPAs). In the recent past, banks have gone in for an OTS scheme multiple times with the same borrower for the same or less than the settlement money received earlier.
According to a bank executive, “Banks have to rely on collaterals (as the underlying asset) for OTS schemes as primary securities are not available by the time the fraud surfaces. Instructions were issued for the OTS scheme and sharing of information on the borrower's accounts among the multiple financing banks.”
It has also been noticed that securities are distress-valued and, in case the collateral amount is more than the loan outstanding, the settlement is done on a lesser amount. Also, CBI officials said that the banks do not report about all the frauds.
As per RBI data, out of the 44 cases of frauds of Rs 1 crore or more, banks did not reported about 33 cases. The Central Vigilance Commissioner said, “Banks reported there is hesitation on the part of CBI to take up cases of frauds involving over Rs 1 crore.” During 2008-09, according to RBI report, public sector banks reported about only 3,425 frauds as against 3,004 in the previous year, representing an increase of 14 per cent.
Thursday, June 10, 2010
Vinayak Prasad takes over as President and Country Head-Cards Management of Yes Bank
Vinayak Prasad has been appointed as President and Country Head-Cards Management of Yes Bank. Earlier Prasad was serving at ICICI Bank. There he was heading the Cards Group and was responsible for launching its premium cards business.
The new appointment corresponds with an important phase in the bank’s life cycle as it plans to expand its’ branch banking operations as a part of a strategic movement to lead the next phase of growth.
Yes bank is planning to foray into credit card business and Prasad will be instrumental in launching this segment also he will be responsible for enhancing the existing debit card, prepaid card and travel card offerings, and will be heading the bank’s entire cards product portfolio.
Prasad has an experience of over 15-years in the consumer cards business.
The new appointment corresponds with an important phase in the bank’s life cycle as it plans to expand its’ branch banking operations as a part of a strategic movement to lead the next phase of growth.
Yes bank is planning to foray into credit card business and Prasad will be instrumental in launching this segment also he will be responsible for enhancing the existing debit card, prepaid card and travel card offerings, and will be heading the bank’s entire cards product portfolio.
Prasad has an experience of over 15-years in the consumer cards business.
Wednesday, June 9, 2010
LIC and UIDAI are likely to sign MoU, group to provide suggestion for UID projects
A memorandum of understanding will be signed between India’s largest state run life insurer company Life Insurance Corporation (LIC) and the Unique Identification Authority of India (UIDAI). LIC is the first insurer company to sign MoU with UIDAI.
According to CNBC sources under this deal UIDAI will be able to use LIC database. However the official announcement of the deal is likely to be made today.
According to reports the Finance Ministry has set up a technical advisory group for the unique identification (UID) project, which has been renamed as Aadhar. The group is the part of budget division of the Department of Economy Affairs. The technical advisory group has seven member team headed by Nandan Nilekani.
Some of the members of the team are Securities and Exchange Board of India (Sebi) Chairman CB Bhave, IT Secretary R Chandrasekhar, Dhirendra Swarup and Nachiket Mor. The group will provide suggestion on the technical, administration and human resource issues for UID’s various projects.
The group will be helping in the projects related to goods and service tax (GST), network and pension schemes, national treasury and management of agency and expenditure information.
According to CNBC sources under this deal UIDAI will be able to use LIC database. However the official announcement of the deal is likely to be made today.
According to reports the Finance Ministry has set up a technical advisory group for the unique identification (UID) project, which has been renamed as Aadhar. The group is the part of budget division of the Department of Economy Affairs. The technical advisory group has seven member team headed by Nandan Nilekani.
Some of the members of the team are Securities and Exchange Board of India (Sebi) Chairman CB Bhave, IT Secretary R Chandrasekhar, Dhirendra Swarup and Nachiket Mor. The group will provide suggestion on the technical, administration and human resource issues for UID’s various projects.
The group will be helping in the projects related to goods and service tax (GST), network and pension schemes, national treasury and management of agency and expenditure information.
Subscribe to:
Posts (Atom)