IRDA removes limit on insurers reverse repo transactions in G-Secs

The Insurance Regulatory and Development Authority (IRDA) has removed the 10 per cent exposure limit on reverse repo transactions by insurers.

Insurance companies will now be free to invest in reverse repo transactions in government securities as per their discretion.

IRDA said reverse repo transactions in Government securities were treated on a par with collateralised borrowing and lending obligation transactions and the 10 per cent investment limit wasn’t applicable to this category, in a circular to the chief executives of all insurance companies

However, in case of corporate bonds, the investment limit would be 10 per cent of all the funds.

deepa.nair@thehindu.co.in

Source: thehindubusinessline

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Axis Bank appoints Rajiv Anand as retail banking head

Axis Bank, India's third largest private sector bank, today announced the appointment of Rajiv Anand as President - Retail Banking with effect from May 1, 2013.

At present, Anand heads the Axis Asset Management Company Ltd, the asset management arm of Axis Bank, as Managing Director and Chief Executive Officer.

Prior to this, Anand has worked with HSBC, Standard Chartered Mutual Fund and IDFC.

Source: thehindubusinessline

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IOB gets nod to open second branch in Bangkok, 2 branches in Sri Lanka

Indian Overseas Bank has received RBI’s approval for opening a second branch in Bangkok, M. Narendra, Chairman and Managing Director of the bank, said.

The RBI has also given its nod for IOB to open two more branches in Sri Lanka, Narendra told Business Line here.

Narendra was in the Capital to receive awards on behalf of the bank for excellence in lending to micro, small and medium enterprises as also to khadi and village industries.

Currently, IOB is the only Indian bank to have a branch in Bangkok.

In Sri Lanka, IOB has a full-fledged branch in Colombo, besides an extension counter. Now, the RBI has given the bank the approval to set up a specialised branch in Colombo and also convert the existing extension counter into a branch.

In all, IOB will now have three branches in Colombo, Narendra said.

“We expect to open the second branch in Bangkok in the current fiscal itself. Even the two branches in Colombo will open this year,” Narendra said,

IOB had roped in Deloitte to devise a strategy for the bank’s overseas expansion.

Narendra said IOB was also keen to establish its presence at the Dubai International Financial Centre. The bank is also awaiting regulatory nod for upgrading its representative office in Vietnam into a branch.

Currently, IOB has six overseas branches — one each at Singapore, Sri Lanka, Seoul and Bangkok and two in Hong Kong.

This public sector lender also has a joint venture — India International Bank — in Malaysia.

Srivats.kr@thehindu.co.in


Source: thehindubusinessline

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Canara Bank eyes Rs 7-lakh cr business in 2013-14

Canara Bank  said it is targeting a total business to the tune of Rs 7 lakh crore in 2013-14. It also plans to open 1,300 new branches in the next two years to expand its presence.

“We are targeting to achieve total business of Rs 7 lakh crore in 2013-14. But this target is yet to be approved by the board,” bank’s Chairman and Managing Director R K Dubey told reporters here.

“Bank’s main focus will remain on agriculture, retail and MSME for lending,” he added.

Bangalore-headquartered bank achieved 13 per cent growth with total business size of Rs 6 lakh crore comprising Rs 3.55 lakh crore of deposits in 2012-13.

Asked about bank’s expansion, Dubey said the bank is planning to open 1,300 new domestic branches and nine overseas offices in next two years.

“We have plans to open 1,300 new branches in next two years, which will take branch strength to 5,000,” he said.

Dubey said bank would also open nine overseas offices in countries including Brazil, Tokyo, South Africa, Qatar in next two years. Canara Bank has presently five overseas branches in countries including Moscow, London, Hong Kong.

Asked about hiring, Dubey said the bank would hire 5,500 people in current fiscal which would be required for upcoming branch expansion across the country.

“Last year, we recruited 4,000 people and this fiscal we will recruit 5,500,” he added.

He further said the bank has also plans to open 10 branches which will have only women employees. These branches will be opened in state capitals.


Source: thehindubusinessline

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Banks borrow most from RBI on last day of FY13

Banks borrowed a record Rs1.81 lakh crore from the Reserve Bank of India, in the last working day of the financial year ended March 31, 2013. This was the highest daily borrowing for the year as banks sought funds to meet their year-end balance-sheet requirements and the government's cash balances with the Reserve Bank ballooned.

Liquidity in the system remained tight throughout March, as reflected in the borrowing data. According to the RBI data, banks borrowed Rs1.81 lakh crore through the repo window. Banks also resorted to borrowing from the marginal standing facility (MSF), where banks borrow at 1% more than the repo rate, which is currently at 7.5%. Banks borrowed Rs7,000 crore through the MSF window.

"Cash balances with Reserve Bank of India were huge last month," said Arun Khurana, head, global markets, IndusInd Bank. "Once this money comes into the system, the liquidity should improve."

Central government's cash balances with RBI stood at Rs87,835 crore on March 22.

Source: Economictimes

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