ELIGIBILITY: Interested candidates must pass the following requirements to give IBPS PO/MT exam 2012 as on 1^st Jan, 2012.

Candidate’s age should be between twenty years to thirty years for general category candidates. Persons who are from other backward classes category having upper age relaxation for +3 years and if you belongs to Schedule caste and Schedule Tribe having benefits for upper age +5 years. Candidates should have certificate to prove their category for taking relaxation benefits.

As far the educational qualification graduation degree certificate in any stream required from any UGC recognised university. Candidates who passed in degree with any percentage can apply for this exam.

Important dates: Online registration for IBPS PO and MT posts will starts form 9th march and last date to register online is 30^th march, 2012 @ www.ibps.in Candidates who applying required to deposit fee between 12^th March to 7^th April, 2012. Bank will arrange a written exam for candidates who eligible and successfully applied online, in various examination centers on 17^h June, 2012.

Written Examination structure

Selection Procedure: Institute of Banking Personnel Selection will conduct written exam which pattern would be two Objectives and Descriptive papers. This test will be of two hundred and fifty (250) marks. There is a negative 0.25 points for wrong answers in an objective test. Candidates who qualified in objective test will be eligible to give descriptive papers.

For detailed Advertisement:  For more clarification and detailed information about IBPS PO / MT Common Written Exam 2012 please download full advertisement given below:

http://ibps.in/career_pdf/CWE_PO_March_2012.pdf

Educational Qualification: Degree in any discipline from a recognized University or any equivalent qualification recognized as such by the Central Government. [OR] A pass with 50% marks in Higher Secondary Examination of 10+2 (10+2+3 pattern) / 11^th Std. (11+1+3 pattern) or Intermediate/Pre-University. (SC/ST/OBC/EXS & PWD candidates pass only) [OR] A pass with 60% marks in the aggregate in Matriculation/ SSC/ (old pattern)/SSLC/10th Std. Examination (10+2+3 pattern) or equivalent.(SC/ST/OBC/EXS & PWD candidates passed with 50% marks in aggregate).

Essential Qualification: All Qualified Candidates having valid Score Card issued by IBPS, Mumbai in CWE 2011. Cut-off marks (TWS) varies from state wise.

Application Fee: Rs.20/- for ST/SC/PWD/Ex-Servicemen (EXSM) Category. Rs.100/- for For all others including OBC.

How To Apply: Candidates are required to apply online through official website www.ucobank.com from 16/05/2012 to 02.06.2012.

For Detailed Document: http://recruitment.ucobank.com/recruitment_dt-10-5-12_no-12-5-12.doc

Educational Qualifications:

a)  Degree from a recognized University or any equivalent qualification recognized as such by the Government of India. [AND] b) Candidates should be qualified in the Common Written Examination conducted
by IBPS and should be holding a valid score card issued by IBPS.  [AND] c)  A Certificate for having completed a Course in Computer Awareness & Office Automation for duration of minimum 60 hours from a reputed Computer Training Institute, which is be waived where ‘Computers’ is a part of the curriculum at the Graduation / post – Graduation level.

Essential Requirements: Minimum 160-For General Category, Minimum 155-For OBC Category, Minimum 150-For SC Category, Minimum 130-For ST Category.

Application Fee: General & OBC – Rs.250/-,  SC/ST/PWD – Rs.50/-.

How To Apply: Eligible candidates are required to apply online www.centralbankofindia.co.in from 11.05.2012 to  25.05.2012.

For Detailed Advertisement: http://www.centralbankofindia.co.in/upload/Final%20Adv.pdf

“Next on the agenda is increasing the surveillance on shadow banking,” Anand Sinha, deputy governor of RBI, said on Monday while addressing a meet organised by the Associated Chambers of Commerce and Industry of India. Shadow banking refers to financial sector services beyond the active regulatory purview of central banks.

According to RBI, the unprecedented increase in shadow banking was a reason for the global financial crisis of 2008. Sinha added the central bank might tighten regulations if required.

Strengthening regulations on such businesses are being addressed in the Basel-III norms, proposed to become applicable from 2017-18.

Lately, non-banking finance companies (NBFCs) have attracted the central bank’s attention for various reasons. Sinha said, “We are pro-NBFC, but it being essentially a part of the shadow banking system, it has to be tightened under Basel-III norms.”

On capital adequacy under Basel-III, the deputy governor said while tough requirements were substantial, the incremental capital needed was not unusually large for Indian banks. RBI had released draft guidelines on Basel-III norms for Indian banks on December 30, 2011. The final norms are expected shortly, Sinha said on Monday.

According to the draft, banks would get time up to March 2017 to meet capital adequacy norms. He said, “Basel implementation has been made longer to ensure least disruption, as banks’ earnings are likely to come under pressure due to the higher capital requirements.” Banks would need to raise productivity to protect return on equity, he noted.

The deputy governor said the asset quality of banks was expected to improve, as the rise in non-performing assets may have peaked. Banks should allow restructuring of loans only after due consideration and analysis, he said.

On the recent change in several Indian banks’ rating outlook by Standard and Poor’s, he said: “They have cautioned us; we were aware of these factors.”

RBI has set up a committee to look into ways of developing a fixed rate loans model in the current interest rate environment.

Sinha said, “A variety of fixed interest rate loan products are imperative, considering that currently banks offer fixed rates on deposits and mostly floating rates on home loans, which expose borrowers to uncertain rate movements.”

Source:http://www.business-standard.com/india/news/rbi-may-tighten-shadow-banking-rules/473053/

Discipline wise vacancies: Security-15, Treasury/Forex-15, HR-40, Risk Management-10, Credit-25, Technical-20.

Experience Required: Minimum 3 years in relevant field.

How To Apply: Eligible candidates are required to apply online from 01/05/2012 to 15/05/2012.

For Further Detailed information: http://www.bankofbaroda.com/recruitment.asp (Available from 01/05/2012).

“We have already started it on a pilot basis in some villages. These branches will be operated by a single person. They will be open for a few hours in a day or for a few days in a week, depending on the local requirements,” a senior executive said on Monday.

The branches would initially provide the basic banking services, such as cash deposits and withdrawals, fund transfers and loans to locals. ICICI Bank, the largest private sector bank in India, is adopting a similar model to expand its reach in rural centers.

According to bankers, this strategy will also help reduce dependence on Business Correspondents (BC). A BC is someone who works closely with an institute to promote, expand and advance the growth of the institute.

Bankers feel outsourcing of banking services increases the scope of operational and reputational risks for banks. By having own branches, lenders can control and monitor their operations relatively better. “We started using the BC route about six years before. While those partnerships continue, we are focusing more on direct lending through our own bank branches,” the official said.

In 2011-12, while HDFC met its overall priority sector target, it did not in some sub-sectors. The bank has 2,544 branches and 8,913 automated teller machines (ATMs) across 1,399 cities.

Earlier this month, the Reserve Bank of India (RBI) had asked the state-level bankers’ committees (SLBCs) to prepare schedules for covering all unbanked villages with a population of less than 2,000. SLBCs are to then notionally allot these villages to banks for providing financial services in a time-bound manner. RBI is to issue a detailed guideline soon.

In the current schedule for providing banking services in every village with a population above 2,000, SLBCs had identified 74,414 of these, all allocated to banks, including regional rural banks, for providing financial services by March 2012. Banks have so far covered 74,199 of these villages. Bankers estimate around 600,000 villages in India. Banks have 138,502 outlets in rural areas, including 24,085 rural branches and 111,948 BC outlets. No-frills accounts have expanded to around 99 million.

Source: http://www.business-standard.com/india/news/hdfc-bank-set-to-open-rural-one-man-branches/472424/

The new rates take effect tomorrow. SBI had raised retail deposit rates on March 28 by 25-100 bps. After the revision, the peak rate would be nine per cent, for deposits less than Rs 15 lakh, maturing between a year and less than three years.

Earlier, SBI was paying 9.25 per cent for similar maturities. The reduction in deposit rates were sharp for the short-term buckets, as the bank will now pay 7.25 per cent for less than Rs 15 lakh for seven days to 179 days, from the earlier eight per cent. For more than Rs 15 lakh and less than Rs 1 crore, the peak rate will be nine per cent for deposits maturing between three and 10 years.

According to an SBI official, the effect of the 50 bps repo rate cut by RBI will not have a significant impact on the bank’s cost of funds but SBI had been benefited from the earlier cut of 125 bps in cash reserve ratio (CRR) by RBI.

“The repo rate cut will translate into a gain of Rs 75 crore, given we borrow Rs 50,000 crore from the liquidity adjustment facility of RBI. On the other hand, the cut in CRR releases about Rs 12,000 crore for us. We can deploy it in government securities and the earning could be above Rs 1,000 crore,” he said, adding this would set the ground for a lending rate cut. He also said about 20 per cent of deposits would get re-priced over the next few quarters following Monday’s rate cut.

Sources in SBI indicate that until the cost of funds come down, it will be difficult for them to reduce the base rate. It might take more than a month for the cost of funds to come down, as deposit rates were raised only in March. SBI, however, is expected to offer lower rates by reducing its spread for some sectors, such as small and medium enterprises and automobile loans.

Regarding home loans, the SBI official said the present festival discount of 25 bps on card rates would get ‘formalised’ in the structure. The bank is yet to take a call on the base rate, despite its peers having reduced their benchmark rate to which all loans are linked. Last week, large lenders like ICICI Bank, Punjab National Bank and Bank of Baroda had reduced their base rate by 25 bps.

On Monday, some more banks revised their base rate. Allahabad Bank reduced its base rate by 25 bps to 10.5 per cent and United Bank of India reduced it by 15 bps to 10.45 per cent. Private sector lender Kotak Mahindra Bank reduced it by 25 bps to 9.75 per cent and among foreign lenders, Deutsche Bank cut the base rate by 50 bps to 10 per cent.

Vijaya Bank has reduced its base rate by 20 bps from 10.65 per cent to 10.45 per cent. It has also reduced benchmark prime lending rate by 25 bps from 15 per cent to 14.75 per cent. The revised rates will come into effect from May 1.

Corporation Bank has reduced base rate by 15 bps for lending from 10.65 per cent per annum to 10.50 per cent per annum, to come into effect from May 1. It has also reduced rate of interest on term deposits by 25 to 100 bps across different maturities with effect from April 25.

Source: http://www.business-standard.com/india/news/sbi-cuts-deposit-rates-25-100-bps/472422/

Emoluments and Qualification: At present, initial monthly emoluments of Single Window Operator –“A” in Clerical cadre including DA, HRA, Transport allowance & pension contribution are approx. Rs.13800/- in a Metropolitan Centre. This may vary depending upon the place of posting (For 10+2 passed).

How To Apply: Candidates are required to apply online from 02.05.2012. Last Date for Online Registration (Including candidates from far-flung areas ) 18.05.2012.

For Detailed Information: http://www.psbindia.com/notification_clerks.pdf

State Wise Vacancies: Maharashtra – 274, Punjab – 05, Chandigarh – 03, Himachal Pradesh – 02, Hariyana – 10, Jammu & Kashmir – 02, Tamil Nadu – 15, Kerala – 05, Delhi – 50, Uttarakhand – 06, Madhya Pradesh – 45, Andhra Pradesh – 20, Chhattisgarh – 15, West Bengal – 02, Assam – 05, Arunachal Pradesh – 02, Sikkim – 01, Nagaland – 02, Meghlaya – 02, Tripura – 02, Karnataka – 18, Gujarat – 05, Rajathan – 20, Mizoram – 02, Manipur – 02Goa – 08.

Educational Qualification: A pass with 60% marks in the aggregate in Matriculation/SSC (old pattern)/SSLC/10th std. Examination of 10+2+3 pattern or equivalent.  For SC/ST/OBC/PWD/EXSM candidates a pass in the aggregate in Matriculation/SSC (old pattern)/SSLC/10th std. Examination of 10+2+3 pattern or equivalent (OR) A pass with 50% marks  in HSC examination of 10+2 (10+2+3 pattern) /11th Std. of(11+1+3) pattern or
Intermediate/Pre-University or any equivalent examination/Diploma  in  Banking  recognized  by  Central/State  Government  or  U.T. administration. For SC/ST/OBC/PWD/EXSM candidates a pass in HSC examination of 10+2 (10+2+3  pattern) /11th Std. of (11+1+3) pattern orIntermediate/Pre-University or any equivalent examination/Diploma in Banking recognized by  Central/State Government or U.T. administration (OR) Degree in any discipline from a recognizedUniversity or any equivalent qualification recognized as such by the Central Government.

Application Fee: Rs.150/- for GEN/ OBC Candidates. Rs.50/- for SC/ST/PWD Candidates.

How To Apply: Eligible candidates are required to apply online on or before 10-05-2012.

Details: http://bankofmaharashtra.in/downdocs/Clerical-Recruitment-Project-2011-12-notification.pdf

State Wise Vacancies:  Andhra Pradesh – 155+70, Assam – 05, BIhar – 04, Chattisgarh – 15, Dadra Nagar Haveli – 01, Delhi – 33, GOa – 03, Gujarat – 15, Haryana – 20, Himachal Pradesh – 05, Jharkhand – 07, Karnataka – 44, Kerala – 10, Madhya Pradesh – 08, Maharashtra – 40, Odisha – 60, Puducherry – 02, Punjab – 21, Rajasthan – 16, Tamil Nadu – 30, Tripura – 04, Uttar Pradesh – 22, Uttarakhand – 04, West Bengal – 05.

Emoluments: Rs.13,840/- per month

Educational Qualification: Graduation in any discipline from any recognized University.

Application Fee: Rs.50/p for SC/ST/Persons with Disability (PWD)/ Ex-SM Candidates. Rs.150/- for General/OBC Candidates.

How to Apply: Candidates are required to apply online through website http://andhrabank.in/english/Recruitment.aspx from 21.04.2012 to 05.05.2012.

For Detailed Advertisement: http://andhrabank.in/UserFiles/File/Advertisement1704.pdf\

For Payment Challan: http://andhrabank.in/UserFiles/File/PaymentChallan1704.pdf

State Wise Vacancies: ANDHRA PRADESH – 235, ANDMAN & NICOBAR – 05, ARUNACHAL PRADESH – 04, ASSAM – 20, BIHAR – 240, CHANDIGARH – 02, CHHATTISGARH – 26, DELHI – 41, GOA – 27, GUJARAT – 21, HARYANA – 01, JAMMU & KASHMIR – 01, JHARKHAND – 485, KARNATAKA – 104, KERALA – 97, MADHYA PRADESH – 401, MAHARASHTRA – 321, MANIPUR – 04, MEGHALAYA – 04, MIZORAM – 03, NAGALAND – 03, ORISSA – 217, PUDUCHERRY – 04, PUNJAB – 102, RAJASTHAN – 112, SIKKIM – 02, TAMIL NADU – 159, TRIPURA – 12, UTTARAKHAND – 15, UTTAR PRADESH – 423, WEST BENGAL – 58.

Educational Qualifications: Pass with 50% marks in the aggregate, either in the Higher Secondary School (HSC) Examination or Standard XII under the 10+2+3 pattern or Standard XI under the 11+4 pattern or its equivalent of recognized Educational Board, acceptable to the Bank. (OR) a degree from UGC recognized University (Graduation level).

Requirement: Qualified in IBPS CWE Clerical 2011-12 Exam.  Minimum Total weight score state wise available on official advertisement.

Application Fee: No fee for SC/ST/PWD/Ex-service-men Candidates. Rs.200/- for all other candidates.

How To Apply:  Eligible candidates are required to apply online through http://ibpsreg.sifyitest.com/boi_apr12/ from 16th April 2012 to 28th April 2012.

For Detailed Notification: http://www.bankofindia.com/UserFiles/File/CLERK_CWE_1504.doc

For payment Challan : Click here

Eligibility: IBPS Clerical Cadre 2011-2012 qualified candidates. A valid scorecard with scores of 24 (General) and 21 (others) in each section.

Application Fee: Rs.150/- foe General / OBC Candidates, Rs.50/- for SC/ST Candidates which can be paid at any Dena bankbranches or via NEDT facility from any bank using appropriate challans.

How to Apply: Candidates are required to apply online through official website from 17th April 2012 to May 2, 2012.

For Detailed Advertisement and apply online:  http://www.denabank.com/viewsection.jsp?lang=0&id=0,48(From 13th April 2012).

Application Fee: Rs.50/- for SC/ST/PWD Candidates. Rs.400/- for all others (including OBC).

How To Apply: Candidates are required to apply online on or before 18/04/2012. The System Generated Print-out of the Registered Application, duly completed in all respects along with the requisite enclosures should reach to “Asst. General Manager (HRM), Indian Bank, Corporate Office, 254 – 260, Avvai Shanmugam Salai, Royapettah, Chennai 600 014.” on or before 25.04.2012.

For Detailed Advertisement: http://www.indian-bank.com/pdfs/rec/IB_Splst_Advt_200312.pdf

Application Fee: http://www.indian-bank.com/pdfs/rec/Challan_Splst_28032012.pdf

Apply Online: http://ibpsreg.sifyitest.com/indbksomar12

Educational Qualifications:

i) Graduation  from  a recognised university/Institution  with minimum  60% Marks.  (For Candidates belonging to SC/ST/PC category  minimum  55%  Marks).  Graduation results should have been declared  by the
university/Institution on or before 01.07.2011.
ii)  Computer literacy shall be an essential qualification, which the candidate must either possess before or acquire within six months of joining the Bank.
iii)  Diploma in Banking & Finance (DBF) from Indian Institute Of Banking and Finance (IIBF) is a desirable qualification besides the above entry level qualification.

IBPS Score Requirement: For General Category: TWS – Minimum 120, For Reserved Category (SC/ST/OBC/PC): TWS – Minimum 105.

Application Fee: Rs.50/- for SC/ST/PC Candidates. Rs.200/- for all others (Including OBC).

How To Apply: Eligible candidates are required to apply Online only through official website www.iob.inbetween 30.03.2012 and 19.04.2012.

For Detailed Advertisement: http://www.iob.in/Careers.aspx

Educational Qualification: A Degree in any discipline from a recognized University or any equivalent qualification recognized as such by the Government of India.

Essential Requirement (IBPS Total Weighted Standard Score): Minimum 130 – For General Category, Minimum 125 – For Reserved Category  (i.e SC/ST/OBC/PWD).

Application Fee: Rs.50/- for SC/ST/PWD Candidates. Rs.200/- for all others (including OBC).

How To Apply: Candidates are required to apply online www.denabank.com from 28/03/2012 to12/04/2012.

For Detailed Advertisement & Apply Online: Click Here

Minimum Educational Qualification: All Educational qualifications, Graduation / Post Graduation etc. shall be from a University recognized by Government of India. Technical qualification (B.E, B.Tech, MBA etc.) shall be from an institution accredited by AICTE / recognized by UGC wherever applicable. Any Degree / Engineering Degree viz. B.E., B.Tech. etc.

Application Fee: Rs.50/- For SC/ST/PWD Candidates. Rs.400/- For all others (including OBC).

How To Apply: Candidates are required to apply online through http://ibpsreg.sifyitest.com/indbksomar12/ between 29.03.2012 and 18.04.2012. For each post applied for, the System Generated Print-out of the Registered Application, duly completed in all respects along with the original  fee payment challan and attested copies of the certificates / documents for proof of date of birth, educational qualification, work experience, community certificate, age relaxation  and other related documents and) should be sent by ORDINARY POST only in a cover superscribed  “Print-out of the Application for the post of _______ Post Code __ in Indian Bank”  to “Asst. General Manager (HRM), Indian Bank, Corporate Office, 254 – 260, Avvai Shanmugam Salai, Royapettah, Chennai 600 014.” on or before 25.04.2012.

For Payment Challan: http://www.indian-bank.com/pdfs/rec/Challan_Splst_28032012.pdf

For Detailed Information: http://www.indian-bank.com/pdfs/rec/IB_Splst_Advt_200312.pdf

Market participants said on Tuesday yields were expected to tread higher if there was no policy rate cut by the Reserve Bank of India (RBI) in April-September 2012.

Keeping the overall higher borrowing target for 2012-13, the weekly auction amount has been increased to Rs 15,000-18,000 crore from Rs 10,000-15,000 crore in the current financial year. The majority of the issuances will be in the long-tenure bucket, according to the borrowing calendar released by RBI on Tuesday.

“Yields may trade at 8.70 per cent or higher in case there are no rate cuts by the RBI in the first six months of next financial year,” according to T S Srinivasan, general manager (treasury), Indian Overseas Bank. “Post-rate-cut yields may soften to 8.25 per cent.”

On Tuesday, yields on the 10-year benchmark bond closed at 8.5 per cent, three basis points higher than the previous close in anticipation that the government will front-load the borrowing programme, thereby drying up system liquidity. The yields have jumped 15 basis points since the close last week.

Auctions for four government securities will be conducted every week in April-September 2012, against the three held in the corresponding period of the current financial year. “Issuance of four government securities every week gives flexibility for market participants,” says N S Venkatesh, head of treasury, IDBI Bank. Reason: banks will opt for bonds up to 14 years’ maturities, while insurance companies and pension funds may go for longer tenures. “This will also help maintain longevity of benchmark bonds,” he adds.

The gross borrowings in the first half of the current financial year were Rs 2.5 crore – 60 per cent of the budgeted target of Rs 4.17 lakh crore. The borrowing plan was twice revised upwards in the second half, taking the gross borrowing to Rs 5.1 lakh crore.

Bond yields had spiked to three-year high levels of nine per cent on announcement of revision in the borrowing target.

RBI is expected to step in and support the market with open market operations (OMOs) in the second quarter of next financial year, so that the government borrowing programme passes smoothly. “Redemptions,” notes Srinivasan, “will take care of liquidity tightness in the first half but there may be OMOs in August 2012.”

According to RBI data, redemptions worth Rs 85,000 crore are lined up in the first half of 2012-13.

The central bank bought illiquid securities worth above Rs 1 lakh crore to manage liquidity and create room for fresh supply in 2011-12.

Source: http://www.business-standard.com/india/news/govt-to-borrow-rs-37-lakh-crore-in-h1/469309/

Public sector banks’ executives said banks had taken a hit due to the steep fall in the value of the shares. Banks had made provisions in their books for the fall in Kingfisher stock price (it has fallen by a fourth to Rs 16 as of on Tuesday).

“Besides, even if we want to sell (the stake), who will buy it?” asked a banker.

Bankers to the Vijay Mallya-controlled airline had hammered out a debt restructuring package in November 2010 to give the firm a fresh lease of life, under which a part of the debt (about Rs 750 crore) was converted into equity. Kingfisher issued over 116 million shares (of Rs 10 each) at Rs 64.48 per equity share in March 2011. These shares carried one-year lock-in period.

The stock price has ruled well below the issue price throughout the financial year. It forced banks to make mark-to-market provisions from the first quarter (April-June 2011) for the fall in values of their stakes in the airline. On the declining share value, a senior State Bank of India official said: “It is better to have it in ICU (intensive care unit) than in the morgue.”

Bankers said the promoters seem to be working on salvaging the situation in recent weeks. Lenders will wait for a while to see what the promoters will do – bring in equity or restructure business. The official, however, did not elaborate on a timeframe. Explaining the rationale for holding on to the stake, an IDBI Bank official said: “We will not act in haste. Who will buy it and what value would we get by selling stocks of an ailing company at rock-bottom price?”

Selling stake now when the promoters are in discussion with prospective investors will be inappropriate for valuation and a bad signal to the market, said the treasury head of a public sector bank. ICICI Bank, the country’s largest private sector bank, on Monday asked Kingfisher to provide additional security for its Rs 600-crore loan after the airline’s stock hit an all-time low. “ICICI Bank, as matter of routine, requested that security be topped up or that the loan amount be adjusted suitably,” the Kingfisher Airlines spokesperson said, denying reports of loan recall or notice for sale of securities.

The airline claimed that the bank’s request was routine.

Source: http://www.business-standard.com/india/news/banks-to-retain-kingfisher-stocks/469298/

The short-term rates on certificates of deposit and bulk deposits have shot up in the past month, as banks scrambled for cash to boost balance sheet growth and meet yearly targets. “Since the bulk deposit rates are above 11 per cent, it is better to tap the retail deposit market, where the rates are slightly lower,” said an SBI official. This is the second deposit rate rise by SBI in less than a month, as it launched a scheme on March 1 offering 175-200 bps more over the card rates for deposits maturing within 180 days.

The official said given the tight liquidity in the market, it would be tough to reverse the rates in the immediate future. Besides, if the Reserve Bank of India (RBI) remains active in the foreign exchange market to manage rupee volatility, it would take away rupee resources from the system, putting more pressure on liquidity.

SBI’s move also comes a day after the government said it would raise the small savings rate by 20-50 bps. As a result, the 10-year National Savings Certificate is to now offer 8.9 per cent, while the Public Provident Fund will fetch 8.8 per cent.

The post office savings rate has been kept unchanged at four per cent, the one most banks offer on savings deposits. As on November 2011, the total amount in small savings schemes was Rs 6.13 lakh crore, marginally lower than the Rs 6.19 lakh crore seen in March 2011.

Bankers may not increase deposit rates once the new financial year starts but will be cautious on reducing these, with the rise in the small savings scheme rates.

“The interest rate on small savings schemes are now comparable with the retail deposit rate of banks. A cut in the retail deposit rate will depend on RBI’s rate action,” said M V Nair, chairman and managing director, Union Bank of India.

Another government-run lender, Bank of Baroda, which had raised short-term retail deposit rates a week before, said it would wait for the central bank’s guidance on April 17, when a review of the monetary policy would be announced. “The increase in our rates was based on the liquidity scenario and requirement of a particular bucket. Our rates are in line with the market rates,” said M D Mallya, chairman and managing director. He said liquidity would also be a key factor in deciding rate action.

The present liquidity tightness is an important reason for banks to aggressively price their deposit products. Despite reduction in their cash reserve ratio limit by 125 bps since January, which injected Rs 80,000 crore in the system, the liquidity deficit in the banking system is three times more than the central bank’s comfort zone. Today, banks borrowed nearly Rs 1.8 lakh crore from RBI’s repo window.

(BS)

In November, the government had given an in-principle nod to convert Tier-I bonds held by it, amounting to Rs 2,130 crore, into 188 million equity shares.

After the said issue, the GoI shareholding would rise from 65.13 to 70.73 per cent. This proposed acquisition of shares would be in excess of the creeping limit of five per cent permitted in Regulation 3(2) of the Takeover Regulations. Unless the acquisition is exempted under Regulation 11, it would trigger a mandatory open offer obligation for GoI.

Rajeev Agarwal, wholetime member of Sebi, said: “I agree with the observations and recommendations of the Takeover Panel and consider (this) a fit case to grant exemption from the obligation to make an open offer.”

The takeover panel had said capital adequacy of IDBI Bank was a key requirement to protect the interest of its customers and the public shareholders who’d invested in its capital. And, that GoI was agreeable to convert Tier-I bonds into equity shares of the bank, to enable the latter to meet the prudential norms set under Basel-I rules, as also to give ir room to grow its business.

The bonds were being converted at Rs.112.99 per equity share, in accordance with a Sebi pricing formula for preferential allotment. Considering all these aspects, the panel found the proposal in the interest of the public shareholders and other stakeholders of the bank and recommended grant of exemption.

Source: http://www.business-standard.com/india/news/sebi-exempts-govtmaking-open-offer-to-idbi-bank-minority-shareholders/469147/

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