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RBI approves Central Bank buying stakes of Generali group’s Indian companies
The Reserve Bank of India (RBI) has approved state owned Central...
After FM, Irdai chief urges bankers to avoid mis-selling of insurance
“I wish to say this for the due consideration of the bank boards ,...
Bank operations may be hit by unions’ one-day nationwide strike on Thursday
“Lok Sabha in its recently held session has passed three new labour enactments by dismantling existing 27 enactments in the name of ‘Ease of Business’, which are purely in the interest of corporates.
“In the process, 75 per cent of workers are being pushed out of the orbits of labour laws since they will have no legal protection under the new enactment,” the AIBEA said in a release.
S&P sceptical of allowing corporates into Indian banking
“The working group’s concerns regarding conflict of interest, concentration of economic power, and financial stability in allowing corporates to own banks are potential risks,” S&P Global Ratings said in a note.
A former RBI governor, Raghuram Rajan, and a former deputy governor, Viral Acharya, also criticised the proposal, calling it a “bad” idea.
Even though India needed more banks it was not wise to allow industrial houses into banking as the history of such inter-connected lending showed it could be disastrous, they said.
Will India’s banking system go from being state-dominated to tycoon-led?
The regulator mustn’t take the public’s trust for granted. The IL&FS debacle shows little institutional capacity to stop mischief outside the balance sheet of a traditional bank.
The report came just as the regulator solemnised the sale to Singapore’s DBS Group Holdings Ltd. of one such lender, the third failure of a major deposit-taking institution in 15 months. Before that shotgun marriage, the country had 22 universal banks (and 10 so-called small finance banks) in the private sector, with a 30% share of deposits, up from 13% two decades ago. Foreign banks’ low 5% share has remained unchanged. Dominant public-sector banks’ market share is down to 65%, from 82% in 2000.
RBI committee recommends reshaping domestic banking industry
In a report made public on Friday, the committee recommended that banking regulations be amended to allow large industrial houses to act as so-called bank promoters, meaning they could take a significant stake in a lender, something the central bank has strongly resisted in the past.
Bajaj Group, Piramal Group and Reliance Industries are well-positioned to expand into banking, said an investment banker who did not wish to be named.
Govt appoints S.N. Rajeswari as member(Distribution), IRDAI
“The Appointments Committee of the Cabinet has approved the appointment of Rajeswari, as Whole-Time Member (Distribution) in Insurance Regulatory and Development Authority of India (IRDAI), initially for a period of three years, with effect from the date of assumption of charge of the post, or till attaining the age of sixty-two years, or until further orders, whichever is the earliest, said an order by the Depat of Personnel and Training.on Wdnesday.
RBI plans merger of Lakshmi Vilas Bank with Singaporean DBS Bank India
DBIL is a wholly owned subsidiary of DBS Bank , Singapore (“DBS”), which in turn is a subsidiary of Asia’s leading financial services group, DBIL will bring in additional capital of ₹2500 crore upfront, to support credit growth of the merged entity
Bank employees to get 15 % salary hike, PLI scheme introduced for banks
The wage negotiation covered 29 banks — 12 public sector banks, 10 private banks, and seven foreign banks — and 500,000 employees in the banking sector.
A joint statement by the four unions representing the workmen said for the first time, there will be uniform basic, dearness allowance, house rent allowance (HRA), special allowance, and transport allowance. The HRA rate will be 10.5 per cent on pay across the country.
ON Singh quits Universal Sompo General Insurance Company as chairman
Recently, an inespection report of the insurance regulator IRDAI had found fault with the way Singh had managed Universal Sompo General Insurance Company which was doing a lot of intermediary and activities through his son’s broking company Risk Care.
Finmin says no increase in service charges by any public sector bank
With regard to Basic Savings Bank Deposit (BSBD) accounts, it said, no service charge is applicable on the 60.04 crore such accounts, including 41.13 crore Jan Dhan accounts opened by the poor and unbanked segments of society, for the free services prescribed by RBI.
RBI asks Axis bank to restructure its plans to acquire stakes in Max Life
Under the revised agreements, Axis Bank will acquire upto 9.002 per cent of the equity share capital of Max Life, and, Axis Capital Limited and Axis Securities Limited will together acquire upto 3.000 per cent of the share capital of Max Life.
In addition, Axis Entities will have a right to acquire an additional stake of upto seven .per cent of the equity share capital of Max Life, in one or more tranches..