NEWS ON BANKING SECTOR…

Submitted By:Pallavi SaggarMBA-2A

1.SBI Family may have to wait a while for Union. Mr. O.P Bhatt will soon discuss with

Govt. process of merging other Associate Banks.

Total 7 subsidaries of SBI are there out of which 2 are merged:

1st Merged = State Bank of Saurastra2nd Merged = State Bank of IndoreLeft are State Bank of Travancore,

Bikaner Jaipur & Mysore , Patiala, Hyderabad.

2. DTC to start a year behind scheduleDTC (Direct Tax Code) will come from

effect April 1, 2012.Exemption Limit has increased from 1.6 lac

to 2 lac . Annual Income Rate 2 lac ----5 lac 10% 5 lac ----10 lac 20% 10 lac----above 30%This increase in Exemption limit Govt. will

lose Rs. 53000 cr.

3. Banks to ask RBI, ICAI to relax Accounting Norms.CEO of Commercial Bank likely to

approach RBI, ICAI to relax accounting norms so that burden of Pension & Gratuity Liability is minimized.

Pension liability = 6000 cr.Gratuity liability = 4000 cr.If Banks don't receive any relaxation than

Profits will dip & Reserves will shrink.

4. ULIPS to be more Investor Friendly.

•New Guidelines by IRDA , the commission paid to distribution and expenses charged by insurer will no longer be front loaded & will be distributed over the lock in period which has raised from 3 to 5 years.

•IRDA = (Insurance Regulatory Development Authority).

5. IDBI removes minimum balance on CASA deposits.o IDBI to increase its share of CASA

deposits which currently stands at 14% (lowest in industry).

o It waived most of Service Charges.oCASA = Current A/c Saving A/c

6. PNB charts plan for overseas expansion. PNB to acquire 64% stake in JSC Dana

Bank for $ 24 million by 2010 in Central Asia Country of Kazakhstan.

This will help to expand operations in Central Asia & Russia.

PNB to start its subsidiary in Canada to tap its huge Punjabi Population.

Planning to launch micro insurance products in 3-4 months.

7. Banker’s Retailers seek fee cut in Debit Card processing.•If this recommendation is accepted by RBI

this would: - Bring Revolution in Payment in

India. - Increase efficiency in currency

management. - As it would lead to decrease in

currency management cost •Although Banks have issued 19 cr. Debit

Card covering close to fifth of population.

THANK YOU