20 Indian banks in top 500 global banking list

They may not be bankers to the world yet, but Indian banks have clearly set their eyes on that. In a year that saw the worst recession for the global banking industry with several big daddies collapsing, resilient Indian banks have improved their brand value rapidly. There are 20 Indian banks in the Brand Finance® Global Banking 500, an annual international ranking by UK-based Brand Finance Plc, this year. The State Bank of India (SBI) became the first Indian bank to break into the world's Top 50 list, according to the Brand Finance study that saw HSBC retain its top slot for the third year in a row. SBI's brand value more than tripled helping it grab the 36th spot in the list. ICICI Bank, the country's largest private bank, joined it in the Top 100 list. Other big gainers in brand value include IDBI Bank (190%), Bank of Baroda (162%) and Union Bank of India (148%).

Fitch reaffirms India at BBB negative

Fitch Ratings has affirmed India's sovereign ratings at 'BBB-'. The outlook for the long-term local currency issuer default rating (IDR) continues to be negative. The outlook on the long-term foreign currency IDR is stable. The short-term foreign currency IDR is affirmed at 'F3' and the Country Ceiling at 'BBB-', Fitch said in a release. "Fitch regards the deterioration in India's public finances since 2008 as partly structural, putting negative pressure on the local currency rating that will require substantive fiscal reform to redress," said Mr Andrew Colquhoun, Director in Fitch's Asia-Pacific Sovereign Group. Fitch said India's strong external finances and the sixth-largest stockpile of official reserves continue to support the foreign currency ratings. However, poor physical infrastructure, underdevelopment reflected in low average incomes, and weak governance indicators exert pressure on the ratings, the report said.

Indian banking stronger than BRIC counterparts: Ficci survey

Indian banking is stronger on vital banking parameters than other BRIC nations, according to a survey carried out by industry body Federation of Indian Chambers of Commerce and Industry (Ficci). According to the survey, the Indian banking system has maintained its resilience and continues to provide growth opportunities. The Indian regulatory system is much better than that of China, Brazil and the United Kingdom (UK). The risk management systems are more advanced than China, Brazil and Russia and credit quality better than China, Brazil, Russia, UK and the US. Moreover, India's banking technology systems are also superior as compared to Brazil and Russia.

Smart banking: Growth saga of the banking industry

With changing times, the banking sector in India too observed a sea change. From people frequenting banks just to deposit money to the age of building relationships rather than just customers has become the new norm. This has also opened new avenues of growth for the banking industry. From branch banking to internet banking and now to mobile banking, the industry has surely come of age. The reason for this can be widely attributed to the socio-economic changes happening widely in India due to economic liberalisation. According to the Technical Group on Population Projections constituted by the National Commission on Population, May 2006, in India the proportion of population in the working age group of 15-64 years will increase to 68.4 per cent in 2026. This clearly shows a mass of bankable customer and as they grow up in the career ladder, the need to manage their finances will increase. To build a steady relationship, they are now offering life-cycle wise products.

Savings accounts will earn you more

In a measure that would bring cheers to savings accounts holders, RBI on has asked banks to start calculating interest rates on these accounts on daily basis from April 1. The move will enable saving accounts holders to earn better interest income on deposits since banks currently calculate interest on the lowest available balance, from 11th and the last date of a month. In the existing system, if one withdraws certain amount from his savings accounts on the last day of a month, he will lose interest on that amount for the whole month. But, under the new system, even if he withdraws in the last day of the month, he will get the interest income on the first 29 days of the month.

RBI spreads awareness about fake currency

With large parts of the country still out of banking facilities, the Reserve Bank is taking the message of financial inclusion to the masses by asking them to open bank accounts and avail the facility of ATMs. At an event recently in a city village, rural folks were explained how to check whether a currency note is genuine or not. As part of its Platinum Jubilee celebrations RBI has taken up initiative to explain the masses the role and functions of the apex bank, the importance of the central bank in the day to day life of a common man.

RBI plans more security features for cheques

The Reserve Bank of India (RBI) has said more security features will be introduced to make cheques tamper-proof and prevent fraudulent withdrawal of funds. "It has been decided to prescribe certain benchmarks towards achieving standardisation of bank cheques across the country," the RBI said in a communication to all banks. The new features would include use of quality paper, water-mark and printing of bank logos in invisible ink, standard size, clutter-free background, use of ultra violet images etc. "Homogeneity of security features is expected to act as a deterrent against cheque frauds," the RBI said. The RBI also said the "Cheque Truncation System-2010 Standard" will be introduced after ascertaining the readiness of banks to adopt it.The proposed format is based on the report of the RBI working group in this regard.

India will return to 9% growth path soon: Survey

Painting an optimistic forecast for the economy in the medium to long run, the Economic Survey for 2009-10 has said the country has bounced back from the global economic slowdown and is on its way to returning to the robust growth path of around 9 per cent seen before the global crisis slowed it down in 2008. For 2010-11, the Survey has said that India's GDP is expected to grow around 8.5 per cent, with a full recovery breaching the 9 per cent mark in 2011-12. From 2003-04 to 2007-08, the Indian economy reported over 9 per cent annual growth. On a bullish note, the Survey has said that it is entirely possible for India to move into the "rarefied domain" of double-digit growth and even attempt to don the mantle of the fastest growing economy in the world within the next four years. This is, however, contingent on improvements in infrastructure, both urban and rural, besides reforms in governance and administration.

'NPAs may rise to 3.75% of advances'

Bad loans of Indian banks may rise to 3.25-3.75% of total advances against 2.17% reported in March 2009, according to a report by credit rating agency ICRA. The analysis is based on quarterly performance of 43 commercial banks - all public sector banks and large private banks - which cover 90% of the market.

Giving its rationale on a possible rise in bad loans, ICRA has said a few public sector banks have seen slippages in their recently-restructured loan portfolio despite providing borrowers moratorium on principal payments. Slippage in case of the country's largest bank, SBI, was Rs 2,621 crore in the nine months between April and December 2009, according to data shared by the bank in its third quarter results.