SBI plans merger of associate banks
Speaking to newspersons in Mumbai, bank chairman OP Bhatt said: “I will discuss with the government whether we should go ahead with (a merger of) some more banks and if the answer is yes, we will talk to the remaining five associate banks.” He added that SBI would prioritise cialis in usa the mergers, based on which will be relatively fast and easy. …. Read More.
The State Bank of India has said following the merger of State Bank of Indore, the bank will now look at integrating the remaining associate banks. SBI has also agreed to pick up any unsubscribed shares in the upcoming Rs 583-crore rights issue of State Bank of Mysore, where it holds 92.3%. State Bank of Indore’s branches will cease to exist and SBI will become a large bank, Mr Bhatt said. SBI had earlier intended to merge all its associates and began the process with State Bank of Saurashtra, which was to be followed by the merger of State Bank of Indore. The amalgamation was delayed due to union protests and has been completed only now. Following the latest merger, SBI will be left with five associates: State Bank of Travancore, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Hyderabad.
Three of these associates — SBM, SBBJ and SBT — are online cialis listed on the stock exchange and had shot up on Tuesday on speculation that they would merge with SBI. Mr Bhatt said: “It doesn’t matter whether the associate is listed or not. What matters is how smoothly we can do it.” Meanwhile, State Bank of Mysore (SBM) intends to raise Rs 583.2 crore through a rights issue. The bank, in a release sent to the stock exchanges, said it would offer three new shares for every 10 already held. Each right share is being priced at Rs 540 per share (including a premium of Rs 530 per share). The board has also fixed September 4, 2010, as the record date to determine the shareholders who would be eligible to participate in the proposed rights issue. In all, the bank intends to issue 10.8 million shares. At the current market price of Rs 1,301.6, SBM, with a market capitalisation of Rs 4,685 crore, ranks second among the listed SBI associates in terms of market capitalisation. State Bank of Travancore ranks first at Rs 4,797 crore while the market capitalisation of State Bank of Bikaner and Jaipur is placed at Rs 3,869 crore.
Source: Economic Times
Subbarao hints at slower pace of hikes
The Reserve Bank of India governor D Subbarao cialis generic brand has hinted that it may ease the pace of raising key rates with the moderation in food prices and keeping in mind the need to strike a balance between taming inflation and ensuring that the growth momentum is not choked off. ….. Read More.
The RBI, which has said it prefers baby steps in raising rates, has made it clear that its top priority would be to contain food inflation. Mr Subbarao said given the uncertainty in the world and the lags in monetary transmission, it is not possible to offer more precise guidance. “All I can say is that our guide post is festina lente — as the Romans used to say — make haste slowly.” The central bank chief said in terms of growth and inflation, India is quite distinct not just from the rest of the world but also from other emerging markets. He also said: “China needs to be more like us currently (focussing on the domestic economy) and we should be more like them. China’s economy grew by 11.4% during the first quarter of the current calendar and grew by 10.3% in the second. It has been growing at over 10% for the last 15 years. I am not too sure of a bubble (of excessive growth of the Chinese economy) and hope there’s none.”
“Classical economic theory suggests a migration from agriculture to industry to services, but India leapfrogged the industry segment. Today, services accounts for 65% of our GDP. If as we assume agriculture productivity rises, it would throw up close to 100-150 million persons who would have to be provided with jobs. Industry has to be prepared for this challenge. Technology-based manufacturing/industry holds the key,” he said. India needs to creat more jobs through growth in manufacturing sector. The RBI governor, who was in Bangalore to deliver the MM Chidambaram Chettiar Memorial Lecture at the Indian Institute of Science said the central bank had calibrated its monetary policy not just to counter the slowdown in 2008-09 but also from last year when generic cialis review it suggested steps for a gradual withdrawal of the economic stimuli. In the first instance, it reduced the cash reserve ratio, repo rate and reverse repo by 400 bps, or 4%, 425 bps and 275 bps, respectively. Similarly since last year, it had hiked the CRR, repo rate and reverse repo by 1% each.
Source: Economic Times
Sebi allows trading using Mobiles
The Securities and Exchange Board of India has allowed registered brokers who provide internet-based trading to facilitate securities trading using wireless technology, including mobile phones and laptops with data cards….. Read More.
Sebi allows trading in shares using the cellphones ushering a major change. Investors can buy and sell shares through mobile phones now. In a circular issued today, SEBI said the stock exchange should ensure the broker complies with requirements of secure access, encryption, security of communication for internet-based trading and securities trading using wireless technology. cialis dosage 40 mg “DOT policy and regulation will govern the level of encryption,” SEBI said. The step has the potential to increase stock market trading activity manifold because of the extent of mobile penetration in India.?One in two citizens, or 650 million people, use mobile phones. That’s a penetration of 50% compared with just 10% in the case of internet.
Vinesh Menon, Deputy CEO, Online Investments & Stock Broking, Bajaj Capital said: “This is a welcome move that reiterates the regulator’s cialis prices commitment to enable a wider network of retail investors participate in stock markets.The fact that the Indian telecom industry is the fastest growing in the world, and the fact that 630 million Indians use the mobile from a mere 5 million in 2001, reflects the huge opportunity that exists in this space. Clearly, trading through mobile phones will outpace trading through internet in less than two years, and will truly enable on-the-move trading facility.” “It’s a revolutionary step considering the fact that mobile has overtaken the PC hardware, said B Gopakumar, executive vice-president, Kotak Securities. Mobile trading can take on any basic handset provided it is Java enabled and GPRS compliant. Even the CDMA handsets having Internet access can be used by investors to access the mobile trading platform.
Source: Indian Express , DNA India
Limit for retail investment in IPOs to be raised
Retail investors will now get to subscribe more in initial public offers (IPOs). The Securities and Exchange Board of India (Sebi) has proposed to raise the investment limit for retail investors from the current Rs1 lakh to Rs2 lakh.
The move is seen as an intermediate step before increasing the limit to Rs5 lakh and is expected to help companies obtain more retail subscriptions in IPOs. Currently, individual investors are classified as retail only if their investment is Rs1 lakh or less. Some 35% of the amount to be raised by IPOs is reserved for retail investors, but due to the low investment limit, very often they are undersubscribed. According to the regulator, the proposed increase in the investment limit is intended to keep pace with inflation and also the changing nature of market valuations. While inflation is close to double-digits, the market has risen over 125% since 2005. Rs1 lakh does not fetch the retail investor too many shares, given the bloat in share valuations.
According to a discussion paper released by Sebi, large-sized public issues easily require between 1.5-2 lakh applications to meet their retail quota. 10mg cialis This is much higher than the 35-70,000 applications received from retail investors in recent issues. Sebi has invited comments on the discussion paper till September 3. Sebi has also noted that in recent public offerings, approximately 75% of applications in the retail category cialis trial pack have come in the size of Rs80,000-Rs1 lakh. The number of applications in the non-institutional category, which is used by high net worth individuals, is usually above Rs5 lakh, but retail investors avoid investing in this segment since the reservation of shares is only 15% against 35% for retail.
Source: DNA India
India still vulnerable to economic shocks
India is still vulnerable to economic shocks and this calls for carefully determined policy measures to sustain income gains of the growing middle class in the longer term, warns cialis 5mg side effects a new Asian Development Bank (ADB) report.
Although there has been a substantial increase in the middle class in India – an addition of 205 million between 1990 and 2008 – the ADB has noted that more than 75 per cent of the middle class in India remain in $2-$4 (Rs 93-186 approximately) daily consumption bracket, the lower end of the $2 to $20 range, leaving them at risk of falling back into poverty in the event of a major economic shock. cialis review The ADB defines India’s middle class as those consuming between $2 and $20 a day. There is also the risk of runaway inflation in India eating into the real incomes of those forming part of the lower middle class ($2-$4) said Dr Jong-Wha Lee, Chief Economist, ADB.
“Clearly, policies are needed to both bolster the new status of the middle class and deal with its adverse consequences. There is need for policies that encourage the creation of more well-paid jobs, advanced education and skill development to help prevent slippage back into poverty,” Dr Lee, said after the launch of ADB’s flagship annual statistical publication – Key Indicators for Asia and the Pacific 2010. To help unlock the full potential of the Indian middle class as consumers and drivers of growth, the ADB report has said that the Government must continue to remove structural and policy impediments.
Source: The Hindu Business Line
Credit Suisse licensed to run Bank
Credit Suisse said that it has received a license from the Reserve Bank of India to establish a bank branch in Mumbai. This license enables Credit Suisse to substantially expand the range of services it offers in the Indian market …. Read More.
The Mumbai bank branch will accept deposits and use its balance-sheet to provide financing to clients, complementing the capabilities of Credit Suisse’s Non-Bank Financial Company in India. The license also permits the bank to deal in Indian Government securities, other domestic fixed income products cialis daily generic and foreign exchange. “We are delighted to have received this license from the RBI and look forward to being a constructive participant in the Indian banking industry,” Credit Suisse Asia-Pacific’s CEO, Kai Nargolwala, said.
“This final approval is a landmark in Credit Suisse’s expansion in India, which is a key growth market for the bank. Credit Suisse is investing in the businesses made possible by securing this license and we look forward to delivering our enhanced product offering to clients soon,” the bank’s Chief Executive Officer, Mihir Doshi, said. The award of a license to establish a bank branch follows cialis dosage 20mg the RBI’s in-principle approval in March of Credit Suisse’s application to enter the banking industry in India. Credit Suisse is active in wealth management, investment banking and asset management in India, serving high net worth, corporate and institutional clients.
Source: Economic Times
Corporates in Banking
The much-awaited discussion paper of the Reserve Bank cheap cialis soft of India (RBI) on the entry of new banks in the private sector has thrown many interesting proposals, suggestions and ideas, including a higher capital of Rs 1,000 crore, a 50 per cent ceiling on foreign holding and the possibility of allowing industrial houses and finance companies….. Read More.
Interestingly, the RBI paper has not made any firm proposals, but preferred to offer pros and cons of various parameters and the past international experience on banking licences. “Industrial and business acheter cialis original houses have a long history of building and nurturing new businesses in highly regulated sectors such as telecom, power, automobiles, defence, infrastructure projects like airports, highways, dams and ports,” the discussion paper said.
Several industrial houses like the ADAG, the Mahindras, the Aditya Birla group, the Tatas and the Bajajs are likely to apply for new licences. Many of them had evinced interest in getting into banking after Finance Minister Pranab Mukherjee announced the plan to give more private bank licences in the last union budget. However, the RBI has expressed reservations about giving banking licences to business groups with interests in real estate. The paper has also highlighted the potential risks of involving them.
Source: Indian Express
Goldman reveals where bailout cash went
(GS)received $5.55 billion from the government in fall of 2008 as payment for then-worthless securities it held in AIG. Goldman had already hedged its risk that the securities would go bad. It had entered into agreements to spread the risk with the 32 entities named in Friday’s report. Overall, Goldman Sachs received a $12.9 billion payout from the government’s bailout of AIG, which was at one time the world’s largest insurance company.
Goldman Sachs also revealed to the Senate Finance Committee that it would have received $2.3 billion if AIG had gone under. Other large financial institutions, such as Citibank, JPMorgan Chase and Morgan Stanley, sold Goldman Sachs protection in the case of AIG’s collapse. Those institutions did not have to pay Goldman Sachs after the government stepped in with tax money.
Goldman had not disclosed the names of the counterparties 5mg cialis generic it paid in late 2008 until Friday, despite repeated requests from Elizabeth Warren, chairwoman of the Congressional Oversight Panel. The initial $85 billion to bail out AIG was supplemented by an additional $49.1 billion from the Troubled Asset Relief Program, known as TARP, as well as additional funds from the Federal Reserve. AIG’s debt to U.S. taxpayers totals $133.3 billion outstanding.
The list of companies receiving money includes a few familiar foreign banks, such as the Royal Bank of Scotland and Barclays. DZ AG Deutsche Zantrake Genossenschaftz Bank, a German cooperative banking group, received $1.2 billion, more than a quarter of the money Goldman paid out.
AIG received the bailout of $85 billion at the discretion of the Federal Reserve Bank of New York, which was led at the time by Timothy Geithner. He now is U.S. treasury secretary. He said he was confident that the financial regulatory reform bill signed by President Obama this week would help provide better oversight than the AIG bailout included
Source:[acomplia on obesity href="http://www.usatoday.com/money/industries/banking/2010-07-24-goldman-bailout-cash_N.htm">USA Today]