Here is today’s important banking news to keep you updated and help you prepare for IBPS and other bank exams:
Important Banking News: SBI to Raise up to Rs 15,000 Crore by March 2017
- State Bank of India (SBI), the country’s largest lender, on Friday said it proposes to raise up to Rs 15,000 crore from various means, including public offer and overseas issuance of shares, in the next 14 months.
- The fund raised will help the public sector lender meet global risk norms Basel III, which will kick in from March 2019.
- The committee of directors, duly authorised by the central board, at the meeting held on January 15 authorised the bank to seek shareholders’ approval and to write to the government and the Reserve Bank of India (RBI) seeking their approval for extending the period of approval for raising capital up to Rs 15,000 crore till March, 2017, SBI said in a regulatory filing with exchanges.
- The fund would be raised either through follow on public issue, qualified institutional placement, rights issue, private placement, global depository receipt, American depository receipt or a combination of these, it said.
- The fund raising would be done at the opportune time or as may be approved by the government and the RBI, it added.
- This enabling approval was required as the one-year window approved last year was coming to an end on March 2016, an official said.
- Shares in SBI, on Friday, ended 5.64 per cent lower at Rs 184.75 apiece on the BSE, whose benchmark Sensex index finished down 1.28 per cent.
- Earlier this week, SBI had said it is planning to monetise non-core assets to raise capital for meeting Basel norms.
- Public sector banks need Rs 1.80 lakh crore to meet Basel III norms, while the government will provide only Rs 70,000 crore, SBI chairperson Arundhati Bhattacharya had said, adding that the rest will have to be borne by banks through profits and non-core assets.
- “For instance, for us, we have a number of non-core assets which we are looking at monetising. We also have very successful subsidiaries which we have not listed. So, we can look at those as well,” she had said.
- The bank has already announced plans to lower its stake in insurance ventures – SBI Life Insurance and SBI General.
- In its life insurance venture, SBI proposes to sell up to 10 per cent stake, while it may be about 23 per cent in case of its general insurance company.
Important Banking News: RBI Allows Banks to Offer More Services Via Off-Site ATMs
- The Reserve Bank of India (RBI) on Thursday allowed banks to offer all their products and services through their off-site ATMs.
- “… banks are now free to offer all their products and services through ATM channels provided the technology permits the same and adequate checks are put in place to prevent the channel from being misused to perpetuate frauds on banks or other genuine customers,” RBI said in a notification.
- In June 2009 too, the central bank had relaxed norms and permitted lenders to install off-site ATMs at centres or places identified by them without its prior permission.
- Currently, the facilities that could be provided at off-site ATMs include deposits/withdrawals, PIN change, request for cheque books, statement of accounts and balance enquiry, among others.
- In another notification, RBI said it has been decided to make the necessary changes in Memorandum of Instructions on Project and Service Exports (PEM).
- The changes have been necessitated as the ‘Overseas Construction Council of India’ (OCCI) has been renamed as ‘Project Export Promotion Council’ (PEPC).
- The changes were also required as civil construction contracts now include turnkey engineering contracts, process and engineering consultancy services and project construction items (excluding steel and cement) along with civil construction contracts.