Fitch has revised the outlook on Vijaya Bank to negative from stable due to increase dependence on wholesale funds
Global rating agency Fitch has revised the outlook on Vijaya Bank to negative from stable due to increase dependence on wholesale funds.
The negative outlook reflects the bank's stressed funding profile at end-March 2011 due to its increased dependence on wholesale funds, particularly certificates of deposits (CD), Fitch said in a statement.
While the reliance reduced in 2009-10, it reversed in the following year with loan to customer deposits (excluding CD) of 89% at end-March 2011, significantly higher than most government banks, it said.
Rating outlook indicate the direction a rating is likely to move over a one-to-two-year period.
The rating agency noted that the resulting refinancing pressures can be mitigated to some extent by the bank's status as a government bank, it said.
Nevertheless, high institutional funding could significantly impact its net interest margins (NIMs) in the present rising interest rate scenario, it said.
The outlook could be revised back to Stable if there is a sustainable improvement in the bank's funding profile and profitability, and stabilisation in asset quality.
The bank's funding from bulk deposits remains high (around 44% of total deposits 2010-11), and it has increased its share of short-term CD to play on the yield curve, thereby creating significant asset liability tenure gaps, it said.
This presents significant interest rate and refinancing risks, especially in light of high amount of CDs that are expected to be due for refinancing during the same time frame, it said.
RBI will soon start issuing bank notes of Rs500 denomination in packets, which may not be sequentially numbered, for easier transactions
The Reserve Bank of India has said it will soon start issuing bank notes of Rs500 denomination in packets, which may not be sequentially numbered, for easier transactions.
The measure has been announced to increase operational efficiency, the RBI said in a statement.
"With a view to enhancing operational efficiency and cost effectiveness in bank note printing at banknote presses, it has been decided to issue... fresh banknotes of Rs500 denomination in packets which may not necessarily all be sequentially numbered," it said.
The apex bank said such kind of practice is prevalent in other countries.
"Packets of banknotes in non-sequential number will, as usual, have hundred notes," the statement said.
RBI said the bands of the packets containing the banknotes in non-sequential number will have the legend "The packet contains 100 notes not numbered sequentially" to avoid any confusion.
Sistema Shyam TeleServices has launched free MBlaze data cards for its postpaid customers
Telecom company Sistema Shyam TeleServices (SSTL), under its MTS brand, has launched free MBlaze data cards for its postpaid customers.
"MTS is committed to its data focused-voice enabled strategy. Continuing with the innovation promise, we have launched the 'Free MBlaze Data Card' proposition," Leonid Musatov, chief marketing and sales officer, MTS India said in a statement.
MTS has introduced two advance rental plans (ARP), MBlazer ARP 3GB 2097 and MBlazer ARP 6GB Unlimited 2397, wherein customers paying three months rent in advance will be entitled to a free MBlaze device.
The rental for 3GB data usage is for Rs699 and for 6GB unlimited it is Rs799.