Government has settled to raise the bar on yearly income needed to qualify for benefits under its existing housing schemes for Economically Weaker Sections (EWS) and Lower Income Groups (LIG). The move will benefit 20 lakh (2 million) people as more people will now qualify for taking benefits under Rajiv Read more…
The world’s foremost energy watchdog, the International Energy Agency (IEA) in its recent report “World Energy Outlook 2012” has held that US can become the world’s largest oil producer by 2017.
How would this happen ? Predictions for USA and Global Predictions….
Banks all over India are in the process of issuing fresh-look cheques with more security and standardized features to all its customers by December 31, 2012.
From January 1, 2013, cheques which do not conform to CTS-2010 standards would not be entertained by banks.
What is Cheque Truncation?
- We go to a bank and sign a Cheque … now, “Truncation” is the process of stopping the need for movement of the physical cheque (paper cheque leaves) from one bank’s branch to other bank’s branch.
- In its place an electronic image of the cheque is transmitted to the drawee branch by the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc.
What is Cheque Standardization and what does CTS 2010 Standard mean ? What are the benefits of adopting CTS-2010 ? How would be the uniqueness of a physical cheque be captured and imparted to the cheque image ? How are the images of cheques taken ? What are the modes in which banks can participate in CTS ?
The British tax authorities launched an investigation into allegations of money laundering against HSBC. HSBC Bank has been accused of opening offshore bank accounts in Jersey for serious criminals living in Britain. This move from British Tax authorities came after a whistleblower was secretly provided a detailed list of names, Read more…
India Against Corruption (IAC) charged HSBC Bank with unning ‘hawala’ (money laundering) transactions. IAC members alleged that Mukesh and Anil Ambani among others, had crores of rupees sitting in Swiss banks. Those named were part of the list of 700 people who had accounts with HSBC banks in Switzerland. The Read more…
Vodafone India has launched its mobile money transfer and payment service ‘M-Pesa’ in India. The telecom giant has inked a partnership with ICICI Bank to extend this service in India. Vodafone will be offering its customers a mobile money account with ICICI Bank and a mobile wallet issued by MCSL Read more…
Fortune Magazine has named Ms Chanda Kochhar, MD and CEO of ICICI Bank as the most powerful business woman in Business in India. She has been named for the same for second time in a row. The top 3 most Powerful Business woman in India: Chanda Kochhar of ICICI Mallika Read more…
As per Fortune Magazine, Ms Kavery Kalanithi of Sun TV group has retained her position as the India’s top paid business woman in 2012. Pay packages of Top 4 Business women in India: Kavery Kalanithi, Executive Director, Sun TV Group: Rs 57 Crore Urvi A. Piramal, Chairperson, Peninsula Land: Rs Read more…
Thanks to RBI, which had withdrawn the requirement for 70% loan loss cover from September 2011. Else, Public sector banks, which have decreased their PCR (Provision Coverage Ratio) in the last one year, would have seen their quarterly profits wiped out, were they asked to maintain PCR of 70%.
- It is interesting to note that although, RBI had withdrawn the requirement for 70% loan loss cover from September 2011, private sector banks, whose asset quality is better than their public sector counterparts’, have maintained provision covers of more than 70%.
- Except a few exceptions, majority of PSBs (Public Sector Banks) have reported a sequential decrease in their PCR, while private sector banks have performed better.
Source: Business Standard
Clearly from the table, we can see that SBI’s quarterly Net Profit was 3,658.14 Crores and its PCR was 62.80% and in case it was to maintain PCR of 70%, SBI would have almost wiped out its quarterly profit.
Now, if we analyze the case of Indian Overseas Bank, it has a quarterly net profit of Rs 158.43 Crores. Were it asked to maintain PCR of 70%, then Indian Overseas Bank would have needed 680 Crores i.e. 4.3 times more than its net profit.
The country’s top private sector banks ICICI Bank and HDFC Bank had a PCR of 78.7% and 82%, respectively, at the end of the September quarter.
What is Provision Coverage Ratio (PCR) ?
Westpac Banking Corporation (Westpac Institutional Bank) received its banking licence from RBI on April 16, 2012. Westpac has operated in India since 2007 through its representative office. Westpac Institutional Bank (WIB): The Institutional Bank, which contributed 26% of Westpac’s total earnings in 2010, provides advisory and wholesale banking services to Read more…
Volvo is a Swedish truck, bus and earth-moving equipment maker. Volvo is the world’s 2nd largest truck maker by revenue. Volvo declared its plans to invest R s 3,800 Crore in India in next few years. Of this amount, it will be investing Rs 1,800 Crore in a joint venture Read more…
The Finance Minister P Chidambaram has asked RBI to finalize the guidelines for issue of new banking licenses and commence accepting applications applications from interested entities. But, RBI insists on amending the Banking Regulation Act before such a move. What RBI wants? RBI wants that before it issues final guidelines, Read more…
Dr Madhav Chavan has won the WISE Prize.
- The WISE Prize is considered to be the "Nobel prize for Education".
- Prize of $500,000 (£314,000)
- In recognition for his education work in the slums of Mumbai. His efforts to provide lessons in literacy and numeracy for disadvantaged children and adults in India.
About Dr. Madhav Chavan and his NGO “PRATHAM”
The Gross NPAs (Non Performing Assets) to advances ratio for PSBs (Public Sector Banks) rose to a record high at the end of September 2012.
- As of September 2012 the ratio of gross NPA to advances was the highest for SBI at 5.15 i.e. SBI had Rs 5.15 in stressed assets for every Rs 100 it lent.
- Priority sector contributed to largest share of NPAs for SBI & its associates and nationalized banks.
As per RBI the sudden rise in NPAs was mainly attributed to:
- deterioration in asset quality of the banks
- slowdown prevailing in the domestic economy as well as the external front
- inadequate appraisal and monitoring of credit proposals during the boom period of 2003-07
Why is asset quality of a bank important ?
Rakesh Jhunjhunwala Indian investor and trader A qualified Chartered accountant Owner of Rare Enterprises Chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Ltd Net worth: USD 1.25 billion (as of 2011) Started his career in 1985 when the BSE Sensex was at 150. He is regarded as one Read more…
A Social Surfing service
A Personalized Search (webpage recommendation) and Discovery engine
Made by Infoaxe Inc.
- Formerly called InfoAxe, Flipora grew from a service that helped users simply find sites they’ve already visited.
- Flipora helps user remember the great websites (s)he visits (with web history search) and recommends great websites based on what user liked in the past.
- It aims at helping internet users find interesting web-pages on the topics that they like.
- It provides significant social surfing recommendations to help users discover and enjoy new web content and sites.
- Flipora currently has 8 million users.
Flipora’s Indian Connection:
- Founded by two Indian graduates from Stanford University.
- Jonathan Siddharth and Vijay Krishnan
How does Flipora work? … Negative side of Flipora…
RGESS (Rajiv Gandhi Equity Savings Scheme)
The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme (RGESS).
- Finance Minister P Chidambaram had approved the RGESS on September 21, 2012.
- Implementation delayed due to the deliberations on inclusion of Mutual Funds (MF) in it. Thus, further consultations with the RBI, SEBI and the law ministry on the coverage of RGESS.
RBI Governor D. Subbarao held that the inflation is “quite high” at 7.45%. He remarked over the falling of headline inflation to 7.45% in October 2012 from 7.81% in September 2012. The comment from RBI Governor has come at a time when Govt and industry are hoping of monetary easing Read more…
The Finance Ministry has relaxed the investment norm for Life Insurance Corporation of India. LIC can now invest up to 30% of a company’s paid-up capital. Earlier it could invest up to 10%. Objective: This can be seen as an effort to meet the disinvestment target of Rs 30,000 crore Read more…
e-tailing = electronic retailing
- selling of retail goods on the Internet.
- e-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall"
- Online shopping or online retailing is a form of electronic commerce
- Consumers directly buy goods or services from a seller over the Internet without an intermediary service.
- The largest online retailing corporations are E-Bay and Amazon.com, both of which are US-based.
- e-tailing has resulted in the development of software tools for creating online catalogs and managing the business connected with doing e-tailing. These are known as e-tailware.
e-commerce (electronic commerce or EC)
Finance Minister P.Chidambaram held that the amendments to General Anti-Avoidance Rules (GAAR), have been finalized. GAAR, was proposed in the 2012-13 Budget in order to preventing tax evasion. But it aroused sharp reactions from foreign as well as domestic investors who feared that unchecked powers to taxmen would result in Read more…