Banks might tighten loans to jewellery sector

Senior bankers said the loan-to-value ratio might be made more stringent. For instance, if loan credit was given up to 60 per cent of the value of collateral earlier, now it would be for only 50 per cent.

A Gems and Jewellery Export Promotion Council official said banks had become more careful in issuing fresh standby letters of credit. After a sharp rise in defaults during the global financial crisis of 2008-09, banks had taken a cautious approach to financing units in the sector. Bank loans to the sector grew from Rs 27,477 crore in March 2008 to Rs 67,024 crore at the end of March 2013. Gross non-performing assets rose from Rs 270 crore in March 2008 to Rs 2,750 crore.

Winsome had delayed servicing its maturing letter of credit obligations by about a month, owing to the company’s weakening liquidity position due to a sudden stretch in receivables. Rating agency CRISIL had downgraded the company and some group entities to ‘D’, following the default in repayments. The company is already in talks with lenders to restructure its loans.

Compared to jewellery exporters, diamond exporters could face a bigger hurdle. As they export loose diamonds to traders abroad, these traders remain unidentified. But jewellery exports are mostly sold to retailers, which makes it easier to assure banks.

“We may take a 20 per cent higher margin against the collateral in the case of loans for jewellery exports. Banks have also become very cautious while giving out loans to diamond traders,” said a senior State Bank of India official.

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HDFC Mutual Fund sold 1.10 lakh shares of MM Forgings

HDFC Mutual Fund sold 1,10,000 shares of MM Forgings  at Rs 68.25 on the BSE.However, HDFC Mutual Fund A/C HDFC Midcap Opportunities Fund sold 1,70,000 shares at Rs 68.25.
                                  
 In the previous trading session, the share closed at Rs 68.20, up Rs 1.20, or 1.79 percent. It has touched a 52-week low of Rs 66.50.

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clean-chit to ICICI Bank, HDFC Bank and Axis Bank_KYC norms

 

Subbarao, speaking at the customary post-policy media interaction, asserted that while money laundering, which involves use of criminal money, has not been observed in any of the banks, certain "specific transgressions" on the know-your-customer (KYC) front have been discovered.

The RBI  said it has not given clean-chit to ICICI Bank, HDFC Bank and Axis Bank, which are accused of money laundering and flouting KYC norms, and stated the probe against the three banks is still on.The inquiry is still in progress," RBI Governor D Subabrao told reporters when asked whether the apex bank had given clean chit to the three banks.

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Bank Fixed Deposits Interest Rate

Given below are the Best Fixed Deposit Rates by each bank for the selected parameters:
INSTITUTION	GROUP	INTEREST % p.a	period	INVESTMENT                            (Rs)	Investor Type	tax status
Bharat Co-operative Bank	Cooperative Banks	10.25	Bharat Akshaya Deposit Scheme - III - 500 days (Special Scheme)	Less than Rs. 15 lakh	General	Taxable
Tamilnad Mercantile Bank	Indian Private Sector Banks	10.25	1 year to less than 2 years	Less than Rs. 1 cr	General	Taxable
Development Credit Bank	Indian Private Sector Banks	10.00	18 months	Less than Rs. 15 lakh	General	Taxable
Bassein Catholic Co-operative Bank	Cooperative Banks	10.00	Above 12 Months to 18 Months	Less than Rs. 15 lakh	General	Taxable
The Ratnakar Bank	Indian Private Sector Banks	9.78	Special 400 days Deposit scheme	Less than Rs. 15 lakh	General	Taxable
Dhanalakshmi Bank	Indian Private Sector Banks	9.75	500 days	Less than Rs. 1 cr	General	Taxable
State Bank of Patiala	Public Sector / Nationalized Banks	9.75	555 days	Less than Rs. 1 cr	General	Taxable
Oriental Bank of Commerce	Public Sector / Nationalized Banks	9.75	1 year to less than 2 years	Less than Rs. 15 lakh	General	Taxable
Punjab and Sind Bank	Public Sector / Nationalized Banks	9.75	500 days	Upto Rs. 15 lakh	General	Taxable
Federal Bank	Indian Private Sector Banks	9.75	1 year only	Less than Rs. 15 lakh	General	Taxable
Corporation Bank	Public Sector / Nationalized Banks	9.65	12 months only	Less than Rs. 15 lakh	General	Taxable
Dena Bank	Public Sector / Nationalized Banks	9.60	365 days	Upto Rs. 15 lakh	General	Taxable
Catholic Syrian Bank	Indian Private Sector Banks	9.60	365 days to 374 days	Less than Rs. 15 lakh	General	Taxable
Yes Bank	Indian Private Sector Banks	9.60	15 Months 15 days to 16 Months	Less than Rs. 15 lakh	General	Taxable
ING Vysya Bank	Indian Private Sector Banks	9.50	367 days to 500 days	Less than Rs. 15 lakh	General	Taxable
Kotak Bank	Indian Private Sector Banks	9.50	Above 1 year to 389 days	Less than Rs. 15 lakh	General	Taxable
IDBI Bank	Public Sector / Nationalized Banks	9.50	1 year 1 day to 499 days	Upto Rs. 15 lakh	General	Taxable
Indian Overseas Bank	Public Sector / Nationalized Banks	9.50	1 year to less than 2 years	Upto Rs. 25 lakh	General	Taxable
Indus Ind Bank	Indian Private Sector Banks	9.50	400 days (SPECIAL SCHEMES)	Less than Rs. 15 lakh	General	Taxable
State Bank of Travancore	Public Sector / Nationalized Banks	9.50	500 days	Less than Rs. 1 cr	General	Taxable
UCO Bank	Public Sector / Nationalized Banks	9.50	1 year	Upto Rs. 5 cr	General	Taxable
Abu Dhabi Commercial Bank	Foreign Banks	9.50	500 days	Less than Rs. 1 cr	General	Taxable
Shamrao Vithal Co-operative Bank	Cooperative Banks	9.50	365�days to�499 days	Less than Rs. 15 lakh	General	Taxable
Nainital Bank	Indian Private Sector Banks	9.50	Above 1 year to less than 2 years	Less than Rs. 15 lakh	General	Taxable
State Bank of Mysore	Public Sector / Nationalized Banks	9.50	1 year to less than 2 years	Less than Rs. 15 lakh	General	Taxable
Allahabad Bank	Public Sector / Nationalized Banks	9.50	1 year to less than 2 years	Less than Rs. 5 cr	General	Taxable
State Bank of Hyderabad	Public Sector / Nationalized Banks	9.40	1 year to less than 2 years	Upto Rs. 1 cr	General	Taxable
Bank of Baroda	Public Sector / Nationalized Banks	9.35	Baroda Utsav Deposit scheme (444 days)	Less than Rs. 1 cr	General	Taxable
Syndicate Bank	Public Sector / Nationalized Banks	9.35	1 year to less than 2 years	Less than Rs. 5 cr	General	Taxable
Punjab National Bank	Public Sector / Nationalized Banks	9.30	555 days	Less than Rs. 1 cr	General	Taxable
Bank of Maharashtra	Public Sector / Nationalized Banks	9.30	1 year	Less than Rs. 1 cr	General	Taxable
Central Bank of India	Public Sector / Nationalized Banks	9.30	555 days (Cent Super plus)	Less than Rs. 1 cr	General	Taxable
Bank of India	Public Sector / Nationalized Banks	9.25	555 days	Less than Rs. 15 lakh	General	Taxable
Axis Bank	Indian Private Sector Banks	9.25	1 year to less than 14 months	Less than Rs. 15 lakh	General	Taxable
Canara Bank	Public Sector / Nationalized Banks	9.25	556 days to less than 2 years	Less than Rs. 1 cr	General	Taxable
ICICI Bank	Indian Private Sector Banks	9.25	390 days to less than 2 years	Less than Rs. 15 lakh	General	Taxable
State Bank of India (SBI)	Public Sector / Nationalized Banks	9.25	1 year to less than 2 years	Less than Rs. 1 cr	General	Taxable
Bombay Mercantile Co-operative Bank	Cooperative Banks	9.25	12 months Only	Less than Rs. 15 lakh	General	Taxable
Saraswat Co-operative Bank	Cooperative Banks	9.25	12 months only	Less than Rs. 1 cr	General	Taxable
Vijaya Bank	Public Sector / Nationalized Banks	9.25	One year to less than Two years	Less than Rs. 5 cr	General	Taxable
HDFC Bank	Indian Private Sector Banks	9.25	1 year 16 days	Less than Rs. 1 cr	General	Taxable
J&K Bank	Indian Private Sector Banks	9.25	1 year to less than 2 years	Less than Rs. 1 cr	General	Taxable
United Bank of India	Public Sector / Nationalized Banks	9.25	1 year to less than 2 years	Less than Rs. 1 cr	General	Taxable
HSBC	Foreign Banks	9.00	365 days	Less than Rs. 15 lakh	General	Taxable
Citi Bank	Foreign Banks	9.00	365 days to 400 days	Less than Rs. 15 lakh	General	Taxable
Royal Bank of Scotland	Foreign Banks	8.50	1 year 1 day	Less than Rs. 15 lakh	General	Taxable
Standard Chartered Bank	Foreign Banks	8.00	372 days	Less than Rs. 15 lakh	General	Taxable
Deutsche Bank	Foreign Banks	7.60	1 year to 1.5 years	Less than Rs. 15 lakh	General	Taxable

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Banks gorge on 530 bln euros of ECB 3-year funds

Banks took 530 billion euros at the European Central Bank's second offering of three-year funds on Wednesday, slightly above forecasts, fueling hopes that more credit will flow to businesses and government borrowing costs will ease further.

A total of 800 banks borrowed money at the tender, with demand exceeding the 500 billion euros expected by traders polled by Reuters and well above the 489 billion allotted in the first such operation in late December.

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