The government has already earmarked Rs6,000 crore towards capital infusion in the state-owned banks during 2011-12 and the additional amount would be sought through second batch of supplementary demands for grants to be tabled in the Winter session of Parliament
New Delhi: The finance ministry on Thursday said it is likely to approve capital infusion into PSU banks, including State Bank of India (SBI), by mid-November, reports PTI.
The capital requirement of PSU banks in the current fiscal has been estimated between Rs10,000 and Rs20,000 crore.
“We will hopefully decide on the capital infusion for banks by Tuesday,” financial services secretary DK Mittal told reporters after the second meeting of the Committee on Capital Requirements of Financial Institutions.
Once this committee takes a decision, the proposal will go to finance minister Pranab Mukherjee for his approval, Mr Mittal said, adding the process is likely to be completed by 15th November.
The first meeting of the panel headed by finance secretary RS Gujral was held last week.
Capital infusion proposal after the approval from the finance minister will go to the Cabinet, he said.
About five to six banks, including SBI, Bank of Baroda, Syndicate Bank and Union Bank of India would require capital during the current fiscal, he said.
The capital is either required to raise government holding to 58% or Tier I capital to 8%.
For current fiscal, he said, “The requirement...in different scenarios for all public sector banks is between Rs10,000 crore to Rs20,000 crore."
The committee is examining proposals for capital requirement during the current fiscal as well as for long-term (2021). By that time banks will have to meet Basel III norms as well.
With India set to implement Basel III norms on capital adequacy, Mr Mittal said the PSU banks would be requiring about Rs3.5 lakh crore in the next 10 years.
The government has already earmarked Rs6,000 crore towards capital infusion in the state-owned banks during 2011-12 and the additional amount would be sought through second batch of supplementary demands for grants to be tabled in the Winter session of Parliament.
The government during 2010-11 had provided capital support to the tune of Rs20,157 crore to public sector banks.
The lenders which got funds from the government last fiscal include Punjab National Bank, Bank of Baroda, Union Bank of India, Oriental Bank of Commerce and UCO Bank.
Though results for the second quarter suggest ‘healthy’ state of affairs for Indian corporates, fears of global financial contagion pulling down growth in developing countries are mounting,” industry chamber Assocham said
New Delhi: Domestic demand is helping the Indian economy, but signs from Europe’s debt crisis and a faltering US recovery are worrying, reports PTI quoting industry chamber Assocham.
Though results for the second quarter suggest ‘healthy’ state of affairs for Indian corporates, fears of global financial contagion pulling down growth in developing countries are mounting,” it said.
An analysis of the second quarter results of 87 companies across different sectors showed that even the domestic consumption is coming under the impact of high interest rates and increasing raw material costs.
The Reserve Bank of India (RBI) has followed a tight monetary policy since March 2010, raising interest rates by 375 basis points since then.
Besides, fresh investments face delays in government clearances, the Assocham said.
“There are some long-term concerns,” which need to be addressed by the government, Assocham secretary general DS Rawat said.
He said the chamber found that while there were no visible signs yet, fall in business for the IT and ITeS to Europe and the United States,” prices have fallen or remain unchanged".
Macro-economic concerns in Europe are weighing on the Indian corporates, the Assocham said.
It said the fast moving consumer goods (FMCG) firms are unable to pass on higher input costs to customers due to competitive market conditions while automobiles, real estate and other industries could hold on to profits with declining margins.
It said the power companies have declared subdued results. While generation costs have gone up, tariffs are difficult to revise.
Depreciating rupee value has posed another challenge for the Indian industry. The landing cost of the imported raw materials have gone up as a result of weakening rupee, it said. The rupee has weakened by about 12% in the last two months.
This is the first instance in this calendar year till date that any mutual fund has mobilised more than Rs1,000 crore in a single working day
Mumbai: Indiabulls Mutual Fund (Indiabulls MF) has garnered Rs1,107 crore through its maiden fund launch of ‘Indiabulls Liquid Fund’. Indiabulls MF is sponsored by Indiabulls Financial Services Limited (IFSL).
This is the first instance in this calendar year till date that any mutual fund has mobilised more than Rs1,000 crore in a single working day.
The new fund offer (NFO) opened for subscription on Monday 24th October and closed the same day. The scheme will re-open for ongoing purchase and sale from 28th October 2011 at Net Asset Value (NAV) based prices. Indiabulls Liquid Fund is benchmarked against ‘Crisil Liquid Fund Index’.
Indiabulls Mutual Fund has a net worth of Rs4,661 crore with an asset book of over Rs27,000 crore and has presence in over 87 cities and towns with a network of 170 branches.