Banking news update

Asset quality pressures to persist for two-three quarters sustained recovery: Belying expectations of stability, asset quality pressures are expected to weigh on bank balance sheets for at least the next two quarters for want of sustained recovery in the Indian economy. Bankers and analysts said though the pace of incremental slippages into NPA category might moderate, the credit costs are expected to stay high, as banks have to make provisions for old non-performing loans. (BS)

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E-transactions may bring more tax benefits to individuals, shopkeepers: Financial transactions through electronic means, such as net banking, may give you some rebate on income tax, according to the various incentives in the draft proposal put out by the Government to boost electronic transactions. Alternatively, 1-2% reduction in value-added tax can be considered on all e-transactions by merchants, says the proposal. (BL)

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New 30-year govt bond will act as a benchmark for pricing debt: Ind-Ra: The issuance of a new 30-year government bond (G-Sec) by RBI will fix structural issues for Indian issuers, especially those undertaking infrastructure projects and needing long-term funding, according to India Ratings and Research (Ind-Ra).  (BL)

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Govt proposes to raise Rs 13,500 crore by sovereign gold bonds: The government proposes to issue gold bonds with a sovereign guarantee to divert investment demand for physical gold to financial instruments, giving returns more than the gold price, as interest will also be paid. (BS)

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After MAT, indirect transfer woes for foreign investors: Foreign portfolio investors, hit by the minimum alternate tax (MAT) issue, might find a fresh problem snapping at their heels. This time, rules governing indirect transfers are emerging as a cause for concern, especially for foreign portfolio investors running multi-billion-dollar India-focused funds. (BS)

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Rupee ends at over two-week high as US Fed signals gradual tightening: The US Fed’s decision to go for gradual tightening helped the currency market due to which the rupee ended at an over two-week high as foreign flows continued in domestic markets and exporters were seen selling dollars. The rupee ended at 63.73 compared with the previous close of 64.12 a dollar. (BS)

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Vodafone M-Pesa, WaterHealth tie up for cash-collection service: Vodafone M-Pesa, a mobile wallet services firm, has tied up at with Waterhealth India (WHIN) to help it in its cash-collection process at 450 locations across five States — Gujarat, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana. (BL)

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All India Bank Employees' Association to go on a strike on June 24: All India Bank Employees’ Association (AIBEA) is planning to go on a strike on Wednesday, in support of the demands of State Sector Bank Employees’ Association and pertaining to the employees of the Associate Banks of SBI. (BS)

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YES Bank reduces base rate by 25 bps: Private sector lender YES Bank has cut its base rate by 25 basis points (bps) to 10.50 per cent. The new rates are effective from June 22. Base rate is the benchmark rate to which all loan rates are linked. (BS)

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Deutsche Bank’s India profit rises 93% in 2014-15: Deutsche Bank on Thursday said its India branches posted a net profit of Rs. 1,406 crore for the year ended March 2015, an increase of 93 per cent over the previous year figure of Rs. 729 crore. Net revenue increased 45 per cent to Rs. 3,925 crore, up from Rs. 2,713 crore in the year ended March 2014, the foreign bank said in a statement. (BL)