August 8, 2013 3:38:04 am
A day after his appointment as the next Governor of the Reserve Bank of India (RBI),Raghuram Rajan came calling to the RBI office to attend the meeting of the sub-committee of the Financial Stability and Development Council (FSDC),a body which deals with inter-regulatory issues.
Even as the meeting progressed,the rupee fell by 53 paise to a fresh closing low of 61.30 against the dollar amid bearish local stocks and renewed dollar demand from importers. The meeting,chaired by RBI Governor D Subbarao,reviewed the potential risks to stability of the domestic financial system,weakening asset quality of banks and initiated further steps to curb shady plantation companies.
The meeting expressed concern on the deteriorating asset quality of public sector banks and discussed corrective measures in this regard. Proposals in respect of banks selling insurance products for more than one insurance company under the bancassurance model were discussed, the RBI said. Rajan attended the meeting in his capacity as the chief economic adviser to the finance ministry.
The committee resolved to set up a forum for inter-agency coordination and exchange of information about collective investment schemes and discussed the need for a nationwide awareness campaign in this respect. It further discussed the potential impact on India of the extra-territorial aspects of regulations by European Securities and Markets Authority (ESMA) and US Commodity Futures Trading Commission (CFTC) and resolved to chalk out a unified strategy for the same.
The members reviewed the functioning of its technical groups set up for focused attention on different areas/ segments on financial Inclusion,financial literacy and the inter regulatory coordination. Todays fall in rupee came after the currency recovered almost a rupee from an intra-day low of 61.80 on Tuesday.
Growth woes dent recovery prospects for banks: S&P
New Delhi: The Indian banking sector is unlikely to recover in the next 18-24 months due to slow economic growth and deteriorating loan portfolio,said a report Standard & Poors. We base our view on slow economic growth that is constraining the corporate sector,the chief recipient of banking credit, report titled Slack Economic Growth Dents Recovery Prospects For Indian Banks said. PTI
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