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RBI issues asset management norms for NBFCs
Mumbai—The Reserve Bank of India on Wednesday announced the asset-liability management guidelines for non-banking financial companies as part of overall system for effective risk management in their various portfolios and also modified NBFCs regulations for commercial papers.
Such NBFCs should put in place the ALM system that have an asset size of Rs 100 crore and above or public deposits of Rs 20 crore and above as per their balance sheet as on March 31, 2001, said the RBI in a release here.
The system is required to be implemented by March 2002 and the first ALM return comprising of statements on structural liquidity, short-term dynamic liquidity and interest rate sensitivity as on September 2002, should be submitted to RBI by October 31 by companies holding public deposits, it said.
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Indian banks to globalize
New Delhi—After Indian corporates, domestic banks can globalize as after nearly half a decade, the finance ministry has decided to liberally permit international banking.
Thus, four banks have been permitted to spread wings in new territories, including the State Bank of India, Bank of India, Bank of Baroda and Punjab National Bank.
Senior finance ministry officials said that there would be few bars on international banking, provided the banks are able to satisfy regulators in the respective country.
India has offered to permit Malaysian banks to open branches in India, primarily to service Malaysian nationals in India, provided the country permitted India to do the same.
Over the years, Indian banks have opened overseas branches in Latin America, Africa and Far East on recommendations from the MEA to serve the needs of Indians abroad.
However, these expansions have been cautious, since the BoP crisis of the 90s and the fear that bankruptcy abroad would hit the Indian image as well as the government’s pockets.
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ADB sees sharp decline in East Asian growth rates
Manila—The global downturn will lead to a sharp decline in East Asia growth rates said the Asian development Bank on Wednesday.
Earlier in April, the ADB had said while growth among its developing members was expected to decelerate to 5 per cent this year from 7.1 per cent in 2000, it would bounce back to "nearly 6 per cent" next year.
But now the bank says that the growth outturn in the first quarter of 2001, in which most of East Asia, with the exception of the People's Republic of China, experienced a slowdown in the first quarter of 2001, supported a more pessimistic outlook.
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