Monday, 18 May 2015
Thursday, 14 May 2015
Wednesday, 13 May 2015
DBS seeks RBI nod to set up local subsidiary
The Singaporean lender DBS on Tuesday became the first
foreign bank to seek the Reserve Bank's permission to set up a local
subsidiary.
"We have applied for Reserve Bank permission to bring
our branches under a locally registered subsidiary," DBS group chief
executive and managing director Piyush Gupta said here.
Last year, RBI had made it mandatory for all foreign lenders
with over 20 branches to gradually go the wholly-owned subsidiary route, and
those coming after August last year to do so immediately.
Since the new rules were issued, only Doha Bank entered the
country last month and the existing rule applies only to three overseas lenders
like StanChart, HSBC and Citi, which have over 50 branches each now.
At present DBS has 12 branches.
The central bank has been goading overseas lenders to adopt
the subsidiarisation route as it believes that such a model can give it better
control over them, as in the branch model, anything happening to the parent can
also cripple the system back here.
Nifty hovers around 8250, Sensex strong
Bharat Iyer of JP Morgan believes India hasn’t lost its star
status permanently and FII money is just being rotated into other countries.
Iyer’s views come on the back of brokerage house HSBC downgrading India over
poor earnings growth and little room for rate cuts. In an interview to
CNBC-TV18, Iyer says the equity market may correct further from its current
levels but caps the fall to 5 percent. Iyer believes the central bank Reserve
Bank of India (RBI) can cut policy rate one more time this year.
The market continues to gain strength bit by bit. The Sensex
is up 374.17 points or 1.4 percent at 27251.65 and the Nifty is up 112.35 points or 1.4 percent at 8239.30.
About 1223 shares have advanced, 393 shares declined, and 106 shares are
unchanged.
GAIl, M&M, HDFC, SBI and Hero are top gainers in the
Sensex. Among the losers are Hindalco, NTPC and Vedanta.
Oil prices extended gains in Asia on a weaker dollar and
amid expectations the latest US crude-oil inventories report will show a
decline, easing a global supply glut, analysts said.
US benchmark West Texas Intermediate (WTI) for June delivery
gained 46 cents to USD 61.21 while Brent crude for June rose 20 cents to USD
67.06 in mid-morning trade. WTI surged USD 1.50 in New York while Brent closed up
USD 1.95 in London, gaining support from a weaker US dollar.
The greenback bought 119.78 yen in Asia today, down from
119.90 in New York on Tuesday and 120.11 on Monday. A weaker greenback makes
dollar-priced oil cheaper for buyers using weaker currencies, boosting demand
and pushing global prices higher.
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