Banking services such as cheque clearances and foreign exchange hit customers very hard as employees of the state-run banks wend on two-day strike on Wednesday.
The almost ten lakh-strong work force stalled work to show their protest against reforms in the banking sector. The unions fear that the ongoing reforms will weaken their positions and lead to job losses.
The strike sent affected the share market, government bond market, as well as foreign exchange market.
Norway-based telecoms giant Telenor on Monday announced that it had directly settled Rs 9809 crore loans of its joint venture Uninor with respective banks.
Uninor, a joint venture between Telenor and Indian mobile phone firm Unitech Wireless, had raised short-term loans from banks in India on guarantee of Telenor.
But as of July 23, Telenor received default notices from most of the lenders. On February 2, the Supreme Court ordered cancellation of 122 telecom licences. Following the ruling, Uninor lost a total of 21 licences which led to legal battle between Telenor and Uninor.
Investment bank Goldman Sachs has agreed to pay a hefty fine to hit a settlement with US regulators over flaws at weekly 'huddles'.
The Securities & Exchange Commission (SEC) had accused Goldman Sachs of failing to implement measures to prevent leaks from "trading huddles", where privileged hedge fund clients could have been provided access to secrets from the bank's research analysts.
Goldman Sachs neither confessed nor denied the charges, but it agreed to pay $22 million to settle charges.
NBNK, the banking group established by former Lord Mayor of London Lord Levene, is reportedly showing interest in the British assets of National Australia Bank (NAB).
On Sunday, The Mail reported that NBNK was preparing to bid for NAB’s British assets, viz. Clydesdale Bank Plc and Yorkshire Bank Plc.
While the Reserve Bank of India (RBI) is still brooding over plans to cut key rates, Union Bank of India on Thursday astonished the market by announcing a cut of 10 basis points in its lending rate.
State-owned Union Bank of India's lending rate now stands at 10.65 per cent.
Union Bank of India chairman MV Nair said that the cut in lending rate would boost loan demand and provide the bank with an edge over peers.
The lender's prime-lending rate is at 15.50 per cent.
YES BANK has hiked its interest rates for non resident savings accounts (NRE and NRO) to 6 per cent and 7 per cent for balance of up to Rs. 1 lakh and over Rs. 1 lakh respectively.
Announcement of increase in rate by the India's fourth largest private sector bank came after the Reserve Bank of India (RBI) freed interest rates on non-resident deposits (NRD).
The RBI recently freed interest rates on NRDs to attract more dollars and support struggling rupee.
India's central bank on Friday opened doors to NRI dollars by deregulating non-resident external (NRE) rupee deposits and ordinary non-resident (NRO) accounts, in a move that is expected to support the country's struggling partial-convertible currency.
The Reserve Bank of India (RBI) freed banks to determine their own interest rates on savings and term deposits. Previously, there was a cap on how much interest banks can pay on savings and term deposits.
However, the RBI stressed that banks interest rates to be paid by banks must be comparable to local deposit rates.
The Reserve Bank of India (RBI) has increased interest rates as many as thirteen times over the last two years to fight back inflation, but the central bank is now expected to easy policy to support economic growth.
It is the recently announced steep and surprise decline in industrial production that has reportedly pressuring the RBI to change its policy.
However, some analysts do not expect the central bank to hack its repo rate and cash reserve ratio.
The RBI will review its policy on Friday, December 16.
There is sufficient liquidity in the Indian banking system, and the Reserve Bank of India (RBI) would take appropriate steps at the appropriate time to infuse more liquidity, the central bank's deputy governor KC Chakrabarty said.
When asked if there is a possibility of the central bank to infuse more liquidity in the system, Chakrabarty said, "There is sufficient liquidity in the system. As for cash reserve ratio, the text books say that it is one of the tools that can be used... you should wait for December 16."