World Bank assures support for BRICS Development Bank

World Bank today expressed its willingness to support the proposal of BRICS nations to set up a Development Bank to insulate their economies from the ongoing economic problems, rising oil prices and currency volatility.

"India was one of the sponsors of this idea (BRICS bank). And partly because they wanted more funds for infrastructure development...if they do develop an institution, the Bank will want to be partner with it", World Bank President Robert Zoellick told reporters at the end of his five-day visit to the country.

The summit of BRICS -- Brazil, Russia, India, China and South Africa -- yesterday decided to examine the possibility of setting up a Bank on the lines of World Bank and Asian Development Bank to mobilise resources for infrastructure and sustainable developments in emerging economies.

"We direct our Finance Ministers to examine the feasibility and viability of such an initiative, set up a joint working group for further study and report back to us by the next summit", said the declaration issued after the summit which, among others, was attended by Prime Minister Manmohan Singh.

Replying to questions on the possibility of setting up of such a multilateral bank, Zoellick said, "just as we are with NGOs, civil society groups and National Development Banks... we will be able to compliment each other.

"We have the benefit of being global, we have 187 shareholders and operate in 120 countries. So might be able to share the knowledge and experience", he added.

Earlier, the World Bank Chief had a meeting with Finance Minister Pranab Mukherjee and discussed the role which the Bank can play for development of economies of the region.

Besides the finance minister, he also held meetings with economists and think-tanks as part of his India visit.

China allays fears over its domination of BRICS 'Bank'

Allaying apprehensions that China with its financial muscle would dominate the proposed BRICS Bank, Beijing today said it is a "meaningful endeavour" aimed at achieving a win-win deal for developing countries.

Foreign Ministry spokesman Hong Lei told reporters here that the just concluded New Delhi BRICS summit discussed a proposal to set up such a bank in order to pool financial resources for infrastructure and sustainable development projects in the developing countries.

"The meeting asked Ministers to conduct a feasibility study on the setting up this bank," he said, adding that the proposed bank aims at enhancing the well-being of developing countries.

"I think this is very meaningful endeavour and such a step will contribute to investment, trade and development of the developing countries and will result in win-win outcomes for all countries. China would like to play a positive role in it," he said.

About the summit, Hong said the "successfully concluded" meeting showed the spirit of solidarity and partnership with a message of unity, cooperation and win-win outcome to the world.

China, India, Brazil, Russia and South Africa are members of the BRICS grouping.

He said the meeting has brought about an important consensus on promoting global economic governance besides pushing ahead practical cooperation among the BRICS countries in all fields.

"The leaders reached important and wide ranging consensus on major international and regional issues of common interest," he said.

The meeting has shown that the cooperation among BRICS countries is in line with the trend of peace, development and cooperation.

"China believes that this cooperation will reach higher levels and will continue to play a constructive role in promoting global economic growth, improving global economic governance, strengthening multilateralism and democracy in international relations," he said.

"We are fully confident in the development of BRICS countries and their cooperation," he said.

Source: Financial Express

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Tax of Rs 181 crore realised in HSBC bank Geneva cases

The Income Tax department has realised taxes of about Rs 181 crore with respect to the cash deposits of Indians who had unreported accounts in HSBC bank Geneva, government said today.

"An amount of about Rs 181 crore has been realised," Minister of State for Finance S S Palanimanickam told Lok Sabha in a written reply.

He was asked if the government was able to receive taxes on cash deposits by some of the 700 Indians who had unreported accounts with HSBC bank Geneva.

The Minister replied in the negative when he was asked whether some of the persons charged with tax evasion had volunteered to reveal their accounts with HSBC Geneva and revise their returns, weeks before the list was handed over to the tax investigation wing.

"Appropriate action is taken strictly in accordance with direct tax laws and relevant procedures in all cases wherein information regarding tax evasion is received, including undisclosed foreign assets or transactions of Indians abroad," he said.

Source: Financial Express

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Vijaya Bank raises Rs 147 cr thru preferential issue to LIC

Vijaya Bank has raised Rs 147 crore through preferential allotment of equity shares to Life Insurance Corporation of India. The capital raised would be utilised to shore up the capital adequacy of the bank.

The bank issued 2,28,72,258 shares to LIC at Rs 64.57 per share.“The funds raised would also be utilised to finance our growth in 2012-13,” Ms Shubhalakshmi Panse, Executive Director, Vijaya Bank, told Business Line.

The bank is looking at 20 per cent growth next fiscal. The bank's capital-adequacy ratio as on December 31, 2011, stands at 12.11 per cent, with tier-I capital of 8.8 per cent.

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Karnataka Bank to open 50 branches next fiscal

Karnataka Bank Ltd plans to open 50 branches during 2012-13.

Speaking at the inauguration of the 500th branch of the bank at Shiruru in Udupi district, Mr P. Jayarama Bhat, Managing Director of the bank, said the bank will open three more branches during the fiscal, taking the total number to 503.

The bank will set up 50 more branches and 250 ATMs during the next financial year, he said. Karnataka Bank now has 350 ATMs.

The bank is keen on working towards rural development. The 500th branch at Shiruru is oriented to reach out to the people in rural areas, he said.

The bank, which serves more than 50 lakh customers, has crossed a business of Rs 51,000 crore, Mr Bhat said.

Mr Ananthakrishna, Chairman of the bank, who presided over the function, said the development of rural areas is very much on the financial planning of the bank, and all banking activities are oriented towards reaching this objective.

Stating that Karnataka Bank has given highest priority for inclusive banking, he said most ATMs set up by the bank these days are in rural areas. These ATMs are providing unique banking facilities to villagers through technological services.

vinayakaj@thehindu.co.in

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Govt nominee director quits IDBI Bank board

IDBI Bank has announced that Mr Rakesh Singh, a director, has resigned from the bank's board.

This follows his appointment as Chief Secretary of Punjab.

Mr Singh, who was additional Secretary in the Department of Financial Services, was a Government nominee in IDBI Bank's board. He took charge as Chief Secretary of Punjab on March 26.

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