Baroda Academy, Ahmedabad

NEWS FLASH 26.11.2014

Stressed banks may face lending curbs: RBI has asked banks facing excessive stress due
to a rise in bad loans and restructured debt to beef up recovery efforts, failing which lending
restrictions could be imposed. According to sources, the RBI is mulling action in terms of
limiting loan-sanctioning powers of banks with stressed asset ratios near 20 per cent. (BS)

RBI: ready to flexible on loan recast to spur growth: RBI Governor said that the
regulator was exploring ways to allow banks more flexibility in restructuring loans in
response to their constant demand for grater flexibility to restructure loans. (IE)

Credit System needs reforms: Governor: Calling for reforms in the credit system, the
Reserve Bank of India Governor Raghuram Rajan on Tuesday said the present credit
mechanism protects large borrowers and needs reforms with regard to lending and borrowing.
(BL)

Recast dry up as ARCs, banks wage price war: With banks reluctant to sell bad loans to
asset reconstruction companies (ARCs) at steeply discounted rates, ARCs expect a dull time
ahead.
According to P Rudran, managing director and CEO of Indias oldest ARC Arcil the
company is now targeting a purchase of around Rs 3,500 crore of bad loans in the fiscal,
compared with the Rs 5,000-crore target at the beginning of the year. (FE)

Rupee rises as CAD seen under control on drop in crude prices: Rupee rose on
optimism a drop in oil prices will help keep the nations current account deficit under control
and slow inflation. (FE)

At $39.66 billion, foreign portfolio flows at record high: Foreign Portfolio Investors
(FPIs) have broken the record for the highest-ever purchases of Indian stocks and debt in a
calendar year with a full month still to go. They have bought (net basis) $39.66 billion of
equity and fixed-income assets so far, beating the $39.45 billion in 2010. (BL)

Jaitley to review Jan Dhan scheme today: Finance Minister will chair the first
quarterly meeting of the Mission of PMJDY to review, among others, the progress of account
opening and deposits, duplication and multiplicity of accounts, lack of telecom connectivity,
and challenges being faced by the Yojana. (BL)

Public sector banks top Jan Dhan score at halftime: Public sector banks (PSBs) are
racing ahead in the opening of accounts under the scheme. Of the 7.91 crore total accounts
opened till November 22, the PSBs accounted for 6.36 crore. This was followed by regional
rural banks sponsored by PSBs) at 1.34 crore accounts. Private sector banks have so far
opened 21.33 lakh accounts. (BL)

SBI draws up social media code, warns of action against non-compliance: SBI is
pressing employees to accept a social media policy, styled Code of conduct for employees for
expressing views in social media. A circular was issued by the bank on June 17 and the same
is now being circulated digitally in the banks Human Resource Management System portal.
(BL)

Kotak Mahindra Bank to foray into general insurance business: A week after
acquiring ING Vysya bank in an all-share deal, private-sector lender Kotak Mahindra Bank has
announced it will foray into the general insurance business and received RBIs approval on
Tuesday to form a subsidiary for general insurance. (BS)

Quote of the day: To succeed, jump as quickly at opportunities as you do at

conclusions.
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A snapshot of economic data points

25.11.201
4
28388.05
8463.10

Call Rate
5 yrs G Sec

7.70
8.17

SENSEX
NIFTY

10 yrs G Sec

8.14

$/
BPLR of our Bank (09.02.2013)

CRR/SLR (09.02.2013)/(09.08.14)

4.00/22.00

61.87
14.50%

This is an initiative of Baroda Academy, Ahmedabad- Compiled by Santosh Kumar Gupta; Research Associate
Disclaimer: The above does not purport to substitute or supplement banks extant guidelines on operational issues.

Baroda Academy

Inventing Methods for Igniting Minds

Baroda Academy, Ahmedabad

Repo Rate/Rev. Repo Rate
(28.01.2014)
Forex Res. (14.11.2014) in $ billion
6 Month LIBOR (25.11.2014)

NEWS FLASH 26.11.2014

Base Rate of Our Bank (09.02.13)

10.25%

8.00/7.00
Brent Crude ($ per barrel)
315.551
0.32740%

Gold (Rs. per 10 gms)

78.97
26700

This is an initiative of Baroda Academy, Ahmedabad- Compiled by Santosh Kumar Gupta; Research Associate
Disclaimer: The above does not purport to substitute or supplement banks extant guidelines on operational issues.

Baroda Academy

Inventing Methods for Igniting Minds