Indian Bank

Do you know where you stand in RBI report?

Posted by : mukut

To V.krishnamoorthy,
If Banks do not have sufficient liquidity then they will not be able to give loan to traders, public and Industry. Indian stock market touched 20k because of high liquidity, low interest rate in the system. Everything is interelated in system. If funds available easily and circuilating faster everything goes up like people confidence for investment, to start new ventures. Because public spending power increases. RBI sucked liquidity from system just to control inflation only. Due to low liquidity IIP number crashed from 11% to 1.3% it was known by RBI. But RBI was functioning as per UPA govt`s instruction. Election is coming so UPA govt first priority was to control inflation at any cost. Otherwise nothing worng happened in indian financial market. Indian financial system is very well regulated.
CRR and rates plays major role in any economy. If it is not needed they why RBI suddenly cut CRR immediately? Ofcourse it plays role. Lets say IDFC want funds to finance infrastructure project and if IDFC do not get funds then it won`t be able to finance any project and economyt growth will stop.

Do you know where you stand in RBI report?

Posted by : Leave it.

To mukut

When our RBI relaxed SLR many banks did not avail fully the available funds. If the liquidity increses,it will make available a sum of 60% of the needs,bankers say. Who are going tobe benefited in the stock market? Truly I do not know whether the individual is getting any benefits. As for industries, the lending rates are not reduced. The production figures will comedown and create increase in prices . The poor supply will be facing higher demand. you can see it in the IIP figures released today.

Those who do trading, margins are proportionately payable to the decrease in CMP and for that the banks will ask for more security to enhance the overdraft. Failing which the trader will sell the holding, to cover the difference. The trader should provide more margin money and for that provide more security to the bankers to avail OD. In a bear market he will not opt either but to sell his holding.
The main issue is revolving around the banks who have foreign exchange transaction or branches in another country. With the release of the cut in CRR they get more money and they can buy the dollors or pounds or euro to strenthen their branches in foreign countries and transactions. Otherwise, the image is lost.

As I am US and have interest in Foreign exchange dealings, I know how the branches of Indian banks sending calls to the head offices in India, to arrange for funds, to strengthen their kitty. This you would have noted that the cut in CRR has not reduced the decrease in index and infact it bagan to increase in an hour after knowing the cut. Only banks that shored dollors, like SBI advanced from minus to plus in the CMP. This is not peculiar to India.

Iceland went to the extent of nationalising the banks, to instil confidence as many English and Americal food ball players had their wealth accumulated there. When thei cheques could not be paid, the Govt. intervened. A small country. How long it can pull on. Yesterday Russia closed the market for the week.

So let us not think that the higher liquidity is directly made available to the traders and a trader will be tempted to avail it for margin cover in a bear market. There was rumour for an hour here in USA that The UK Govt. kas taken over all their banks which was later officially denied. The fiscal crisis has spread widely now in Europe as all those banks have banked their funds in US banks.

Just think about it. If CRR is expected to play a major role in a bear market and to help the trader and investors, why should the index show a fall of over 800points in sensex and 220 points in nifty.
I solicit your comments and have my views corrected.
v.krishnamoorthy

Do you know where you stand in RBI report?

Posted by : Leave it.

To mukut

When our RBI relaxed SLR many banks did not avail fully the available funds. If the liquidity increses,it will make available a sum of 60% of the needs,bankers say. Who are going tobe benefited in the stock market? Truly I do not know whether the individual is getting any benefits. As for industries, the lending rates are not reduced. The production figures will comedown and create increase in prices . The poor supply will be facing higher demand. you can see it in the IIP figures released today.

Those who do trading, margins are proportionately payable to the decrease in CMP and for that the banks will ask for more security to enhance the overdraft. Failing which the trader will sell the holding, to cover the difference. The trader should provide more margin money and for that provide more security to the bankers to avail OD. In a bear market he will not opt either but to sell his holding.
The main issue is revolving around the banks who have foreign exchange transaction or branches in another country. With the release of the cut in CRR they get more money and they can buy the dollors or pounds or euro to strenthen their branches in foreign countries and transactions. Otherwise, the image is lost.

As I am US and have interest in Foreign exchange dealings, I know how the branches of Indian banks sending calls to the head offices in India, to arrange for funds, to strengthen their kitty. This you would have noted that the cut in CRR has not reduced the decrease in index and infact it bagan to increase in an hour after knowing the cut. Only banks that shored dollors, like SBI advanced from minus to plus in the CMP. This is not peculiar to India.

Iceland went to the extent of nationalising the banks, to instil confidence as many English and Americal food ball players had their wealth accumulated there. When thei cheques could not be paid, the Govt. intervened. A small country. How long it can pull on. Yesterday Russia closed the market for the week.

So let us not think that the higher liquidity is directly made available to the traders and a trader will be tempted to avail it for margin cover in a bear market. There was rumour for an hour here in USA that The UK Govt. kas taken over all their banks which was later officially denied. The fiscal crisis has spread widely now in Europe as all those banks have banked their funds in US banks.

Just think about it. If CRR is expected to play a major role in a bear market and to help the trader and investors, why should the index show a fall of over 800points in sensex and 220 points in nifty.
I solicit your comments and have my views corrected.
v.krishnamoorthy

Do you know where you stand in RBI report?

Posted by : Leave it.

SBI ranks low in employee productivity: RBI--
Press Trust of India / Mumbai October 9, 2008, 18:27 IST

State Bank of India (SBI) may be the largest bank of the country in terms of capital reserve, but in terms of employee productivity, it ranks abysmally low, especially when compared with the private banks, says RBI.
This is despite SBI`s wages as percentage of total expenses being higher than the industry average. The SBI`s wages, as percentage of total expenses, stands at 17.5 per cent against the industry average of 14 per cent for the year 2007-08, a RBI report says.
According to the RBI data on profile of banks, business per employee (total business of the bank divided by the number of employees) of SBI stands at Rs 456 lakh for the year 2007- 08, below the average business per employee for all the banks at Rs 634 lakh for the year.
The private banks have fared well in this category, with the business per employee of ICICI Bank and Axis Bank way above at Rs 1,008 lakh and Rs 1,117 lakh. HDFC Bank`s figure was lower than the average for all banks, but above SBI at Rs 506 lakh.
Even the nationalised banks such as Canara Bank, Union Bank of India, United Bank of India and Bank of India are ahead of SBI.
Average business per employee for all nationalised banks at Rs 618 lakh was also above SBI, the report revealed.
According to the RBI data, SBI`s profit per employee (total profit of the bank divided by the number of employees) is at Rs 3.73 lakh for the year 2007-08, which is below the average of all the banks of Rs 4.67 lakh.
Private banks such as Axis Bank, ICICI Bank and HDFC Bank are way ahead with Rs 8.39 lakh, Rs 10 lakh and Rs 4.97 lakh, respectively, in this category.
Among the nationalised banks, Union Bank of India and Bank of India have fared well with Rs 5.39 and Rs 4.95 lakh of profit per employee.
v.krishnamoorthy

RBI cuts CRR by 50 bps to 8.5%

Posted by : Leave it.

Dear Sankarantpr,
First we have to get protection for the funds we have saved for our future. Then only SLR or CRR will come into play. Am I correct, Sir?
so please allow me to place my view for your kind attention.

You can see the difference how a bank in trouble or default is dealtwith in USA. There was a fiscal crisis. The senate met and took decisions collectively. whether it is wrong or right. There was a concerted attempt to discuss and to take a decision.
Here our PM and FM give ratio/TV talks and RBI issues statements.
The Govt. thinks that the other leaders are not worthy of consutation.There will be divergent views always. That is why we call for a discussion.
Now the political parties also do not comment on the Govt. attitude, so that some corrective steps are visibly taken. The opposition parties also to be blamed. When they meet , they simply make noice or stage walk out, without discusing the issues involved and that helps the Govt. to have a cake walk.

I am now concerned with the safety of lacs of depositors.The deposit insurance cover is also not increased. There is no voice from the economists,media and share market commentators. Here in USA, we have cover for an account upto 2.5 lacs US dollors. The trade unions like AIBEA and FCII are not touching this aspect. Are they not having bank accounts? It is really very unfortunate that the biggest union AIBEA which was able to give a call for all India Strike for two days, do not send any single point for the protection of bank deposits.Thwy all think that the PSU banks are not vulnarable for the crisis.Why they they have alimited cover for one lac of rupees.It is learned that mutual funds are also selling some holdings in NIFTY.

The fiscal crisis has spread to Europe.As there are many small countires, a concerted action to face the world economic crisis is not possible. In Ireland, the Govt. immediately covered with insurance for six banks . Is it not a signal to the country leaders? Perhaps all our radars are lent to Srilanka Govt.

I do not know when we all will see the reality. God alone should save this country.

v.krishnamoorthy

RBI cuts CRR by 50 bps to 8.5%

Posted by : sankarantpr

he Reserve Bank of India (RBI) has cut cash reserve ratio (CRR) by 50 basis points to 8.5%, effective from October 11.
The move will release Rs 20,000 crore in the banking system. The cut is temporary in nature.

"Liquidity management is a priority amid global uncertainty,” the RBI said.

hOld or Sell? 200 share@ 118

Posted by : chchch

Mukut, sorry to interrupt you.You may be right with regard to fundamentals. I am bit at a loss to see Andhra Bank quoting at such low levels for a long time ( I had cited as to how change in CEOs of banks impact). In the case of Indian Bank, I would very much like to see the scrip quoting atleast around the current price in case the Congress is not returned to power.

hOld or Sell? 200 share@ 118

Posted by : mukut

Do not misguide people. Indian Bank is outperformer. It is rocking in worst market. Indian Bank has been adding over 1000crore profit YoY on Book every year. It has huge free cash on book. Once market sentiment improves it will touch 350-400. Even if it's business grows with 1-2% profit will be more than 1200-1300crore this year. Dividend this year is likely to be 50-60%.

hOld or Sell? 200 share@ 118

Posted by : str2323

this is the case with psu banks. if u want to book profits Indian bank rs.140/- between 140 to 142 there is a strong resistance and the stocks pull back.so, the ideal price for booking profits is.rs. 140 or 141/-at present.