Standard Chartered Plc named Zarin Daruwala, a senior banker at India's ICICI Bank, as new chief executive of its India operations on Tuesday as the British bank looks to halt rising losses on loans in the country
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New business models, enabled by digital technologies, are helping banks write a new rulebook for what is possible
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Eight investment banks including HSBC and ICICI Securities and SBI Capital have submitted bids to manage a 10-percent stake divestment in state-owned Coal India, IFR reported, citing a person close to the deal. The stake sale, valued at about $3.2 billion at the current stock price, is part of New Delhi's aim to raise 695 billion rupees ($10.52 billion) by March by selling minority stakes in government-owned companies. Other investment banks who have submitted bids for the share offering are Axis Capital, Elara Capital, Edelweiss, Kotak Investment Banking and JM Financial, IFR, a Thomson Reuters publication, said. The Department of Disinvestment, which oversees stake sales in state firms, and all eight banks did not immediately respond to Reuters request for comment. The deadline for submitting bids for Coal India share sale was extended thrice as global investment banks came under pressure from environmental groups to steer clear of the share sale, sources told Reuters last month.
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The second phase of the Yes Bank Transformation Series got off to a roaring start in the first week with great response from IIM B, IIM K and ISB Hyderabad. In the second week the focus shifted to IIM Indore, IIM Lucknow, XLRI Jamshedpur, IIT Delhi and NMIMS Mumbai. After a rigorous online round in which they competed with 10,500 teams from colleges across the world, the stage was now set for these campuses to enthrall our jury with their out-of-the-box ideas. Launched in 2010 Transformation Series provides a platform for aspiring young leaders across the world to acquire innovative thinking, creative skills and apply their acumen and creativity to real world challenges. The aim is to engage the brightest young minds from the best universities across the world to come-up with breakthrough disruptive innovations which could transform the financial services industry – a rapidly evolving and critical sector of the Indian economy. CAMPUS BYTES… IIM IndoreIndore, has emerged as an epicenter of business in central India. One of the most active participants in the Transformation Series.. IIM Indore was the next stop in the campus round-up. The quality of presentations, from research to innovation roadmaps to financial data to back their suggestions – IIM Indore impressed the jury thoroughly with their detailed analysis of the case. After several rounds of deliberations, team YESCrows – comprising of Pulkit Jain, Anirban Pramanick and Sidharth Mahajan was declared to be the campus champions. Their focus on key digital innovations and the ability to map a clear roadmap, thrilled the jury and the team is a frontrunner for a spot in the Grand Finale IIM LucknowFrom Indore, the campus challenge moved to Lucknow, in one of India’s finest management schools at IIM Lucknow. If IIM I was all about structured and planned presentations, IIM Lucknow brought the round to life with some absolutely out-of-the box ideas. Living up to their name, Team Swaggers backed with their focus on big data and analytics took the crown of Campus Champions. Vartika, Vasu and Tuhin, a team of dreamers fascinated by the ‘Batsuit’ are now in the race for the Grand Finale. XLRI JamshedpurOur quest to discover the brightest young innovators led us to the picturesque XLRI Jamshedpur. One of India’s oldest B-schools, XLRI lived up to its billing of being among the best in business. NFC payments, facial recognition, wearables.. Ideas flew in thick and fast, backed by sound reasoning. It took several minutes of deliberation for our jury to pick “Team Invincibles as the Campus Champions. Divya, Ashish and Abhas were among the very few to focus on digitization in the SME space and are now in a great position to make the Grand Finale DMS IIT DelhiFrom Jamshedpur to the heart of the country in Delhi, the next stop for the Transformation journey was IIT Delhi. An hour of presentations, ideation and discussion later – Kaushal, Konark and P.Prudhviram from DMS IIT Delhi emerged Campus Champions from IIT Delhi NMIMS MumbaiThe spotlight shifted to Mumbai, and the youngsters from NMIMS were ready to impress. The presentations from NM stood out with their focus beyond payment innovations into other aspects of banking which could be disrupted using digitization. Tania, Bhavesh and Pratik from Team Three Wise Bankers emerged Campus Champions, and given their out-of-the-box ideas stand a great chance of making the finals MENTORING THE YOUNG MINDS…The meet the mentor sessions continued with Kunal Shah, Founder & CEO, Freecharge and Arvinder Gujral, Director APAC BD, Twitter spending an hour each to mentor the students via Twitter.
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The nation's largest lender State Bank of India (SBI) today said Prime Minister Narendra Modi launched the country's first low-income state infrastructure equity partnership (or the Neev fund) in London. The event was also attended by British Prime Minister David Cameron. The two prime ministers recognised the importance of infrastructure for sustainable development and launched the country's first low-income state infrastructure equity partnership with co-investment from the British department of international development and SBI, the bank said in a late evening statement. The fund aims at providing equity partnerships for small infrastructure development in sectors like water and sanitation, clean energy and urban infrastructure. Commenting on the product, Bank chairperson Arundhati Bhattacharya said, "SBI is proud to be associated with the British department for international development to launch this fund that will invest in small infrastructure projects in eight low-income states. This fund will help small projects raise capital in the long-term and expressed hope that the fund will give an impetus to more equitable growth." (PTI)
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Jehan Panthaki Weeks of frenzied effort towards the end of my year at graduate school in the UK were yielding fruit. I had my first call back for an interview from an investment bank. On the day of the interview, I commandeered all the positive energy around me, and set off for the face-off. The bank’s headquarters were located in a skyscraper with tinted grey windows across which the sun’s rays glistened radiantly – it was more spaceship than structure. As I walked into the building, the enormity of its atrium struck me. The reception, manned by an efficient crew of staffers, was ensconced deep inside the foyer, and well protected by a serried row of turnstyles that were watchfully guarded by barrel-chested security personnel endowed with forearms that had evidently been carefully nurtured by doses of frequent and potent supplements. The entire foyer was a scene of controlled but efficient activity. Having registered, I was escorted up to a conference room, and informed that I would have two initial rounds of interviews followed by a final interaction with an MD. The first one involved a green-behind-the-ears MBA graduate, obviously inebriated on his first few months in banking, adorning the avatar of a jargon-spewing dragon, assiduously attempting to trip me on my strong albeit limited knowledge of Finance. He was resentful of the fact that I had been invited to engage with the bank in spite of the abject absence of an MBA (I had studied for a theoretical Masters in Management, through the business school, but had a Bachelor’s degree in Finance). The second encounter was a sedate and brief affair. The VP who was driving it had obviously returned from an international roadshow of sorts because he was entirely disoriented – the fatigue was patently visible on his rotund face, and his blood-shot eyes eerily bulged as though they would imminently pop out of their sockets. It was evident that, mentally, he was in a different time zone and occupied by more pressing matters. I was asked a few mundane questions about my interest in banking, and exposure to concepts in Finance, Economics and Statistics. The brief interview terminated with a dose of tough love. The VP forthrightly laid out all the horrors of banking. Then, as abruptly as it had begun, it ended. Now, I patiently, if not expectantly, waited for my final interview with the MD. I evaluated how the previous innings had gone and reasoned that, in effect, they would amount to a hill of beans. The MBA maverick was too junior to have a deciding vote, and if the VP managed to survive the day, my bet was that he would recuse himself from providing an influential view because of the cursory nature of the interaction. Therefore, my fate came down to the forthcoming meeting with the MD, and I reckoned it would a quick consultation. My reverie was interrupted as the door flung open and the MD walked in. He was roughly six feet tall, a bit older than I expected, and his orthodox suit, deep blue with no sartorial innovations, sat squarely on his broad shoulders. His piercing gaze cut through his horn-rimmed glasses. We were now in a conference room reserved for more weighty matters – the room was considerably larger than the previous conference room; the table was longer, made of darker wood, and heavier; the furniture and fixtures – modern and functional – were in complete harmony. Instead of positioning himself opposite me, the MD casually pulled up a chair beside me and took a seat. Instantaneously, he disarmed me, but I wasn’t sure if I should let my guard down. Veterans had warned me about such skullduggery, but my gut indicated otherwise. The MD began inquiring about my year at graduate school and impression of the UK. He appeared in no rush to start, or end, the interview, and focused keenly on my responses. More so, oddly, he wasn’t interested in testing my desire to join the bank. I thought that he easily demolished the stereotype of an investment banker. The MD and I found common ground to anchor our conversation, and it flowed easily. We desultorily discussed developments and trends in banking, programs at the business school, various college-level sporting events including but not limited to squash, rowing and martial arts, and travel across the continent. For some reason, I got the sense that he appreciated the unique nature of my application (no MBA). But, then it happened in a flash. We had been chatting gratuitously for about an hour when he calmly switched gears, paused, leaned in, and asked me why I wanted to be a banker. The question hit me like a brick in the face. I stared back at him as he did at me – neither of us willing to flinch. There was an awkward silence while I struggled to relapse into my pre-programmed mode, and find my feet. My recovery was tenuous, at best, but I managed to come up with a stale answer. The interview ended shortly afterwards. I realized that the MD had seized the initiative and delivered an ikken hissatsu – in Karate, an expression that translates as, “to kill with one blow”. I was made an offer by the bank but ended up turning it down.
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Raghu MohanOne stone, two birds. What else is one to make of the move to make fungible foreign direct investment (FDI) and foreign institutional investor (FII) limits in private banks? Let’s take the bonanza first – for banks that reside in the private bank universe that is. The move is basically administrative in nature: you can do a qualified institutional placement (QIP) and not bother about sub-limits to raise capital; it, therefore, cuts down on the lead-time to do so. As Chanda Kochhar, MD & CEO, ICICI Bank observes: “The decision to remove the sub-limit restrictions within the overall limit of 74 per cent for private banks will provide greater flexibility to banks and investors.” The move follows the Centre’s July cabinet decision to go in for a 74 per cent cap for all foreign investments and get rid of sub-limits like FDI, FII or investments by non-resident Indians. The only reason why we don’t have 100 per cent fungibility is due to the Reserve Bank of India (RBI) – its concern was the distinction between private and foreign banks would blur. Says Parag Jariwala, vice-president (Institutional Research, Banking and Financial Services) at Religare Capital Markets: “Among private banks, in the case of HDFC Bank, the 74 per cent total limit has already been reached. For Kotak Bank, the 49 per cent FII has been reached; it can benefit as foreign holding can go up to 74 per cent”. It’s also a plus for Axis Bank (42.5 per cent) and Yes Bank (42 per cent) as they were close to the FII limits (of 49 per cent) and were, therefore, out of the MSCI index – as the headroom for FIIs to buy was to be exhausted soon. In the case of Yes Bank, it already has both board (April 2015) and shareholder nod (June 2015) to increase the FII limit up to 74 per cent. “We now have headroom to substantially increase FII holding; this will enhance flexibility of various capital-raising options, including American Depository Receipt, Global Depository Receipts, and QIP plans”, says Rana Kapoor, MD & CEO, YES Bank. What About State-run Banks? You still have a question mark as to whether the Centre has the political capital and courage to dilute its stake in state-run banks to under 51 per cent – for it’s one thing to capitalise banks for Basel-III; entirely another to continue to hold 51 per cent in these banks even as pressure for resources mount from all quarters. The Centre’s `Indradhanush’ plan (with its seven elements on appointments, board of bureau, capitalisation, de-stressing, empowerment, framework of accountability and governance reforms) saw thirteen state-run banks receive capital of Rs 20,058 for the current fiscal; plus an additional Rs 5,000 crore on efficiency parameters. State Bank of India got the highest amount of Rs 5,511 crore followed by Bank of India (Rs 2,455 crore), IDBI Bank (Rs 2,229 crore), Punjab National Bank (Rs 1,732 crore) and Indian Overseas Bank (Rs 2,009 crore). The Centre is to infuse Rs 10,000 crore each over the next two fiscals as well. As Saswata Guha, Director-Fitch Ratings told BW (10th August 2015): “They (state-run banks) have limited recourse to core equity in the short-term, and have to rely on the government. Declining profitability has hurt internal capital generation; low valuations have virtually precluded access to equity markets and increased their dependence on state support for capital”. And now you have fungibility for private banks. As state-run banks squirm over capital, private banks will walk away with more business (and investors will hand over the latter more money). Where does that leave state-run banks? You decide.
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Reserve Bank's employees have proposed one-day mass leave on 19 November to protest what they termed as the government's intention to curb the apex bank's activity and intervening into monetary policies. The United Forum of Reserve Bank Officers and Employees, the umbrella organisation of four recognised unions of officers and workmen staff in RBI, has decided a day's 'Mass Leave' on November 19 by around 17,000 workforce, AIRBEA General Secretary Samir Ghosh told PTI. "With the proposed mechanism of Monetary Policy Committee (MPC), the government plans to intervene and themselves decide the monetary policy which has been the exclusive jurisdiction of RBI so far," he said. In the wake of the protest, settlement activity of the banking system of the country is likely to be disrupted on 19 November. "The cease-work programme is intended, inter alia, to strongly oppose Government of India s current moves to cripple RBI in the name of the draft financial code and legislative reforms," the United Forum release said. "The Finance Ministry is reportedly giving final shape to shift Government s debt management functions from RBI to the proposed Public Debt Management Agency (PDMA), which will also henceforth function as depository of government securities (G-Sec), thus taking away from RBI some vital operations having relevance to money market as well," it added. The union body will also press for their demand for improvement in pension. (PTI)
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The first phase of Yes Bank Transformation Series Edition 4 received a phenomenal response with over 10,500 teams and 16,000 students participating from international and domestic colleges including Yale University, University of North Carolina, Asian Institute of Management Philippines, IIMs, ISB and XLRI amongst others. The top 30 teams of premier business schools, chosen after rigorous evaluation and deliberation by the Yes Bank leadership, now fight for their place in the top 13 who will reach the next phase of the challenge.In line with this year's concept of "Innovation Lab", the advisory council, comprising captains of the industry, along with Yes Bank's leadership team reached out to the participants of top campuses in the country. Last week the Campus Rounds were conducted in IIM B, IIM K and ISB Hyderabad. The resounding participation of students and active involvement of the members of advisory council created a dynamic platform for crowd sourcing of breakthrough disruptive ideas.Launched in 2010 Transformation Series provides a platform for aspiring young leaders across the world to acquire innovative thinking, creative skills and apply their acumen and creativity to real world challenges. The aim is to engage the brightest young minds from the best universities across the world to come-up with breakthrough disruptive innovations which could transform the financial services industry - a rapidly evolving and critical sector of the Indian economy. CAMPUS BYTES…IIM BangaloreBangalore has emerged as India's start-up hub, putting 'disruptive innovation' in national spotlight. Hence at IIM B, the hopes were high… as the Jury and members of the Advisory Council looked forward to some of the best of innovative solutions to the case challenge. After a stimulating presentation by the top 3 teams, brainstorming Q&A session by the Jury and rigorous evaluation, Team Technovators emerged as the Transformation Series Campus Winners of IIM B. The team members Pranav Raheja, Divyesh Dixit and Suryaansh Makked impressed the Jury with their focus on disruptions like NFC payments and aggregate m-wallets was key to them emerging as campus champions. ISB HyderabadThe next stop for the Transformation Series Jury and members of the advisory council was Indian School of Business, Hyderabad. The sheer quality of participation received from the students here, had made this a much sought after Campus Round. The presentations and the interactive discussion on solutions proposed, kept the jury on the edge of their seats. Kamal Karthik V, Shantanu Pendse, Keshav Khosla - members of Team Chanakya, became the Campus Winners of ISB. Their comprehensive inputs across payments, digital banking and m-banking helped them emerge as the champions. IIM KozhikodeOur quest to discover the brightest young innovators took us to the campus of IIM K. In the lush green campus of Kozhikode, the Jury came face to face with some of the most innovative solutions. Kaushik Chandrashekhar's team Belfort Juniors was chosen the Campus Winner after he impressed the judges with his extensive research and coherent inputs on disruptive strategies. Mentoring The Young MindsOne of the unique aspects of the fourth edition of Yes Bank Transformation Series was the innovative use of social and digital media to interact and engage with the student community. The idea was to reach out to the student community in the language that they converse in; at the places they frequent the most - social media. Through a targeted social and digital media campaign, based on the theme of innovation and use of technology the initiative managed to reach more than 300,000 students across the world. For more on the innovation competition, log onto: www.transformationseries.in
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A leading UAE-based bank has announced a partnership deal with State Bank of India to help NRI customers in the Gulf carry out their remittances instantly and more conveniently. Emirates NBD has expanded its partner bank network in India to include State Bank of India (SBI) for the DirectRemit 60 seconds remittance platform. With this partnership, the bank's Non-Resident Indian (NRI) customers who also bank with SBI can now avail themselves of the fastest remittance service in the UAE more easily. The tie-up with SBI will help strengthen Emirates NBD's DirectRemit platform which is set to benefit a large additional customer base in the UAE. "The DirectRemit platform is amongst our most popular services as it provides customers with an on-the-go, quick and free mechanism to transfer funds instantly to their home country," said Suvo Sarkar, Senior Executive Vice President & Group Head Emirates NBD. "We are confident that our customers will take advantage of this new tie-up to carry out remittances to meet all their ongoing requirements," Sarkar said. The partnership will allow fund transfers to SBI bank accounts across India in 60 seconds at zero fees. Emirates NBD currently has existing tie-ups with HDFC Bank, ICICI Bank and Axis Bank in India. Arundhati Bhattacharya, chairman of SBI, said India is one of the biggest and the fastest growing countries for remittances. "SBI has a large customer base in the UAE and this partnership will help all our customers to carry out remittances instantly and conveniently. With the pick-up in India's economic growth, we will see the pace of remittances growing much faster than earlier," Bhattacharya said. Emirates NBD customers can also transfer money to other banks in India with their remittance being processed within an hour. Customers can avail of the 60 seconds money transfer service via online, mobile banking & ATMs. With DirectRemit, customers will be able to transfer funds back home instantly and can also make home loan payments, pay bills, remit insurance premiums or carry out out investments. (PTI)
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