Samachar Lehar March 2012 Issue

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<p>March 2012 issue</p> <p>Samachar Lehar(A monthly update of Banking News)</p> <p>22th March, 2012</p> <p>From General Manager &amp; Principal's Desk</p> <p>It has been said that Information is power. Information in important to individuals and organizations, and therefore the need to manage it well, is growing rapidly. Now more than ever, we need to understand the critical role information plays in so many aspects of business and life. It drives our communication, our decision-making, and our reactions to the entire environment. Information is vital to communication and a critical resource for performing work in organizations. For updating ourselves, we have to regularly gather process and disseminate information. Managing information also involves coping with a myriad of information sources and ultimately making decisions about what to do with it. However, because of our very busy schedule, we miss some vital information. Hence, we are bringing out Samachar Lehar, latest being March 2012, which gives you the latest happening in Banking World. I request all the readers to make the best use of the latest issue of Samachar Lehar March 2012 issue, which is before you and come out with you views for further improvement of the publication</p> <p>With Best Wishes,</p> <p>V.K. Shukla General Manager and Principal</p> <p>Samacher Lehar- March 2012 IssueSl. No1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42.</p> <p>Topic/ Sub-TopicOur Bank in News Monetary Policy 2011-12 Contextual Significance ofThird Quarter Review Khas Baat Agriculture and Other Priority Basel Bonds &amp; Money Market . Plastic Money Credit Growth Economy Financial Inclusion &amp; MFI Minsitry of Finance Forex Inflows Housing Worries Human Resources Inflation Infrastructure Insurance Liquidity Mutual Funds &amp; Capital Market NPA Other Banking News Overseas Aspirations RBI Directives &amp; Guidelines ` Movement Technology Indian Banking - Journey into the Future Price Stability, Financial Stability and Sovereign Debt Sustainability Policy Challenges from the New Trilemma Monetary Policy, Sovereign Debt and Financial Stability : The New Trilemma Empowering MSMEs for Financial Inclusion and Growth- Role of Banks and Industry Associations Understanding Psychology for Responsible Financial Behaviour The Reserve Bank of India : Pulling every lever Indian Banking Sector : Towards the Next Orbit Moving towards Technology Led Excellence in Banking Governance Deficit and Financial Crisis Report of the Nair Committee on Priority Sector Lending Interview of RBI Governor, Dr. D Subbarao by Alex Frangos of The Wall Street Journal Agriculture Agenda for Odisha - Issues &amp; Challenges BCSBI, Customer Service and Consumer Protection-Issues and Challenges Nabard encourages banks for warehousing finance RBI may consider paring 40% priority sector target for commercial banks RBI asks Banks to Closely Monitor unhedged Forex Exposures of Cos Finance ministry opposes RBI's view to stretch priority sectors lending list</p> <p>Page No.01 05 14 21 24 26 26 27 32 33 34 36 37 39 43 43 44 46 48 51 57 62 63 66 67 69 81 95 99 109 115 119 130 137 145 146 155 173 181 182 183 183</p> <p>Canara Bank Samachar Lehar March 201243. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 42. Micro branches to cater to rural areas RBI to meet banks soon on issue of rising bad loans Banks told to give Subsidised Post-harvest Loans to Farmers FinMin asks PSBs not to overstate profit FinMin asks PSBs not to overstate profit Capital support assured for public sector banks Finmin may Dilute RBI Panel's Proposed Harsh NBFC Rules Banks must exercise strict norms while giving education loans under mgmt quota : banking body IBA Foreign Banks Should Step Up Priority Lending DGFT for nominated agency status to gold refiners Government mulls PSU banks to cut loan rates by March E-Payment for social schemes : Finance Ministry asks Banks to Change Fund transfer process to check Fraud Key Banking Indicators 184 185 186 186 187 188 190 190 191 192 193 194</p> <p>Samachar Lehar March 2012 issue- Compiled by RSTC Gurgaon</p> <p>Page</p> <p>1</p> <p>Canara Bank Samachar Lehar March 2012</p> <p>OUR BANK IN NEWSCanara Bank hopes to improve credit growth, NIM next fiscal: Wit h early signs of improvement in t he market sent iment s and t alks of a likely cut in the Cash Reserve Rat io (CRR), public sect or lender Canara Bank is now hoping t o get back to a Credit Deposit Rat io (CDR) of around 72 per cent from t he present 69 per cent . This apart , t he bank is ant icipat ing a rise in net int erest margin (NIM) t o 2.9 per cent in t he next fiscal from t he current 2.6 per cent . In t he given condit ions, we were deliberat ely going slow and t here was hardly any capex t his year. Market sent iment has suddenly improved and logically one or t wo CRR cut s would come. Credit demand would be much more higher next year, Sri S Raman, C&amp; MD of Canara Bank, said. At tribut ing t he sudden rise in NPAs t o migrat ion t o syst em generat ed mode, Sri S Raman said t he bank was in full cont rol of t he credit port folio including NPAs and had almost zero exposure t o MFIs and a very minimal exposure t o t he aviat ion sect or. Especially, we have no exposure t o t he companies t hat are in t he news, he said referring t o Kingfisher Airlines. St at ing t hat t here was an improvement even in t he rest ruct ured credit port folio, he said t he bank would be collect ing ` 3,000 crore from t he NPA port folio t his year as compared with ` 2,000 crore in t he previous year. (BS dt 23.02.2012 p.5) (Relat ed news also appears wit h phot o in p. 12 of t odays DC, p. 12 of NIE, p. 6 of BL. News it em appears in p. 20 of The Hindu, p. 13 of DNA, p. 12 of ET) CanBank ups rate on tax - saver scheme: Canara Bank has revised upwards int erest rat e on Canara Tax Saver Deposit Scheme (t ax Saving Deposit ) from February 11, 2012. The bank offers an int erest rat e of 9.25% for five years Tax Saving Deposit wit h an effect ive yield of 17.17%. It has also revised upwards int erest rat es on domest ic t erm deposit s. (BS dt 11.02.2012 p.5) (For Det ails refer Cir 43/ 2012 &amp; 44/ 2012) All India Faculty Conference 2011-12: All India Faculty Conference 2011-2012 was inaugurat ed by our ED Sri A K Gupta, at RSTC Gurgaon on 27.02.2012 in t he presence of Sri V K Shukla, GM&amp; Principal, STC and Sri T Sreekanthan, GM, CO, Delhi. During the funct ion, Training Compendium for t he year 2012-13 and a pocket booklet on Ret ail Lending product s were released by ED. Awards for best performing Regional St aff Training colleges were dist ribut ed.RSTC Gurgaon was adjudged as t he best RSTC followed by Chennai and Bangalore RSTCs (Source :RSTC Gurgaon) Social Action: Our CED for Women, HO,Bangalore organised a 15 days skill development t raining in "Fabric Paint ing" from 12t h Jan t o 1st Feb 2012 for Minorit y Muslim Women, at Jame-UlUloom Tailoring Cent re, Jamia Masjid, Bangalore. Sri K S Prabhakara Rao, GM, PC Wing, HO, Bangalore presided over t he valedict ory funct ion. Smt M M Bindu, Joint Direct or, Women &amp; Child Welfare Depart ment , Govt of Karnat aka was t he chief guest . 33 Women were benefit ed by t he said t raining programme. (PC Wing, HO, Bangalore)</p> <p>Page1</p> <p>Samachar Lehar March 2012 issue- Compiled by RSTC Gurgaon</p> <p>Canara Bank Samachar Lehar March 2012 Vigilance Study Circle: 4t h Anniversary of Vigilance St udy Circle was celebrat ed on 6t h Feb 2012 at Bangalore. Vigilance St udy Circle comprises of Execut ives from various public sect or undert aking, nat ionalised banks and ot her government organisat ions. Speaking at t he event , Canara Bank C&amp; MD Sri S Raman, urged t he VSC-Bangalore, t o focus more on underst anding t he reasons and cont ribut ing fact ors behind wrongdoings in companies and t o come up wit h procedures and syst ems t o prevent t hem. He also suggest ed t hat measures should be t aken t o ensure t hat people who work wit h honest y, be prot ect ed. The Chief Guest s were Sri Pradeep Kumar, CVC, New Delhi and Sri R Srikumar, Vigilance Commissioner, New Delhi. Padmashri Dr S Subramanian also graced t he occasion. Canara Bank co-ordinat ed t he event . (Vigilance Wing, HO &amp; DH p. 15) Canara Bank face RWF in final clash: Canara Bank will lock horns wit h Rail Wheel Fact ory Sport s Associat ion in t he day-night final of t he Dell-KSCA Group II Division I Super League t ournament at t he Chinnaswamy st adium on Wednesday. In t heir final league mat ches, Canara Bank defeat ed Cent ral Excise and Cust oms by t en wicket s, while RWF overpowered DTDC Sport s Club by 144 runs. Canara Bank, whose only loss in t he six-t eam league came at t he hands of DTDC, finished on t op wit h eight point s, while RWF were involved in a three-way t ie for t he second spot wit h St at e Bank of Mysore and Vijaya Bank. RWF made it t hrough t o t he final by virt ue of having a superior net run rat e. (DH dt .08.02.2012 p8) CRICKET: Vet eran Sunil B Joshi dished out an all round show t o guide Canara Bank t o a vict ory over Rail Wheel Fact ory in t he final of t he Dell -KSCA Group II, Division I Super League at t he M Chinnaswamy St adium on Wednesday. In t he day/ night t it le clash, Canara bat t ed first and post ed 267/ 6 in t he st ipulat ed 50 overs wit h sout hpaw Joshi t op-scoring wit h a fiery 34 ball 61 laced wit h five fours and t hree maximums. Bharat h Chipli (45), C. Ragh (42) t oo made vit al contribut ions with t he willow t o prop up t he Bank men's t ot al. (DC dt 10.02.2012 p.14) Mega Rural Outreach Programme: In a glit t ering funct ion at Kolar, 32 branches of Pragat hi Gramin Bank and 3 Ult ra Small Branches of Canara Bank were declared open by the Honourable Union Minist er of St at e for Finance, Shri Namo Narain Meena in t he presence of Shri K H Muniyappa, Honourable Union Minist er of St at e for Railways and Smt . Archna S Bhargava, Execut ive Direct or, Canara Bank. A host of ot her activit ies included dist ribut ion of Smart Cards, Kisan Credit Cards, General Credit Cards and SHG credit linkage, declarat ion of 4 villages of Canara Bank and 3 villages of PGB as Sampoorna Solar Villages and launching of eproduct s ATM cards and NEFT facilit y by t he Gramin Bank. Nearly 2000 people part icipat ed in t he programme. Canara Bank has opened nearly 200 financial inclusion branches and about 300 rural branches all over India. The Bank is planning t o open 100 such ult ra-small branches during 2012. With t he opening of 32 new branches, t he Pragat hi Gramin Bank has achieved the milest one mark of 400 Branches (News it em appears in BS dt 13.02.2012 p.5) (SP&amp; D Wing, HO, Bangalore)</p> <p>Page2</p> <p>Samachar Lehar March 2012 issue- Compiled by RSTC Gurgaon</p> <p>Canara Bank Samachar Lehar March 2012 PRCI Awards: Our Bank has won 5 Awards inst it ut ed by t he Public Relat ions Council of India (PRCI). PRCI held t he 6th Global PR Conclave 2012 at Mumbai, where, the Corporat e Collat eral Awards for 2012 were announced. Our bank was awarded t he following five awards in recognit ion of it s out st anding services and key cont ribut ions made t o the profession, indust ry and societ y at large :SILVER : Corporat e Advert isement Single Language. BRONZE : Shreyas In-House Magazine English Annual Report Corporat e Brochure on CSR activities Corporat e Advert isement Single These awards were given away in a glit t ering funct ion by Mr.Iqbal Haider, Ex-Law Minist er of Pakist an. Dr.S T Ramachandra, AGM, SP&amp; D Wing, HO, received t he awards on behalf of our Bank. Furt her, t he PRCI announced t he induct ion of Dr.S T Ramachandra, AGM, int o t he prest igious PRCI Hall of Fame in PR-2012 for Communicat ion Professionals. This was conferred on him by Shri H K Dua, Member of Parliament . (CC &amp; PR SECTION, SP&amp; D Wing HO) Sports: Canara Bank Sport s Council has been conducting Sport s Compet ition for t he employees working at Head Office and Cit y branches/ offices at Bangalore. At hlet ic event is being held on 19.02.2012 at Kant eerava St adium at 8.30.AM. Our C&amp; MD Sri S Raman will grace t he occasion. (PM Section, HR Wing, HO) Free dental checkup camp for head office staff: Social Banking Cell, HO has arranged for a free Dent al Checkup Camp for t he benefit of HO staff on Sat urday, t he 25t h February 2012. M/ S Narayana Hrudayalaya Dent al Clinic, Indias largest Dent al Care Cent re, would be co-ordinat ing t he checkup camp. They would render free Dent al Checkup and free Oral Hygiene counselling. (Soicial Banking Cell, PC Wing, HO) Harbinger of positive sentiments: Tuesdays monet ary policy could well be t he harbinger of posit ive sent iment s, bankers t old Business Line. The policys focus is on liquidity management , said Mr S. Raman, Chairman and Managing Director, Canara Bank. The RBI has project ed inflat ion levels t o be around 7 per cent by March t his year.If it s not close t o the zone of comfort , and liquidit y cont inuing t o be t ight , t here could be more act ion on t he CRR front , he said. If t he t arget rat e is achieved, t hey could fleet ingly consider act ion on repo rat es, he explained. The reduct ion in CRR and t he result ant infusion of ` 32,000 crore int o t he syst em is a good posit ive for the banking system, he said. (BL dt .25.01.2012 p7) Canara Bank unveils portal for implementing girl education scheme: Canara Bank has developed a new web port al in partnership wit h t he minist ry of Human Recourse Development for implement ing t he Nat ional Scheme of Incent ive t o Girls for Secondary Education (NSIGSE). The programme will be launched t oday in New Delhi by t he Minist er of St at e for Human Recourse Development , Ms. D Purandeshwari. An amount of `. 3,000 is deposit ed by t he Minist ry in t he name of t he eligible st udent s at t hePage3</p> <p>Samachar Lehar March 2012 issue- Compiled by RSTC Gurgaon</p> <p>Canara Bank Samachar Lehar March 2012 t ime of enrolment t o Class IX. Aft er successful complet ion of Class X and at t aining 18 years of age, t he amount along wit h accrued int erest will be aut omat ically credit ed t o t he account s of t he st udent s t hrough t he Web Port al developed by Canara Bank. (BL, dt . 28.02.2012, p6) RBI shifts focus to growth, cash management: "RBI prefers syst emat ic liquidit y t o be in deficit mode for bet t er and more effect ive monet ary t ransmission; liquidity deficit of such a high order is clearly beyond t he comfort zone of RBI. Hence, t he infusion of ` 32,000 crore int o t he banking syst em. This would induce banks t o cut rat es, part icularly in int erest -sensit ive segment s, such as, housing and aut o." (Excerpt from t he article which appears in p. 9 of 31st Jan 2012 Financial Chronicle writt en by Dr Manoranjan Sharma, DGM &amp; Chief Economist of our bank, SP&amp; D Wing, HO)</p> <p>Page4</p> <p>Samachar Lehar March 2012 issue- Compiled by RSTC Gurgaon</p> <p>Canara Bank Samachar Lehar March 2012</p> <p>Monetary Pol...</p>