Banking news update

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India a bright spot in troubled global economy: FM: Describing India as a bright spot in an otherwise troubled global economy, Finance Minister has said the new Indian government offers a stable, predictable and transparent policy regime, making the country an attractive destination for investors. (BS)

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New ‘Housing for All’ scheme on firmer ground: The Cabinet Committee on Economic Affairs (CCEA) last week approved Housing for All by 2022, a scheme promoting affordable housing for the poor in urban areas. The scheme provides an interest subvention of 6.5 per cent on housing loans to the economically weaker sections (EWS) and low-income groups (LIGs). The scheme is more comprehensive and addresses the shortcomings in the earlier schemes, say industry players. (BL)

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Savings bank deposit rates, a case of cartelisation: With majority of the banks freezing the savings bank deposit rate at 4 per cent despite the central bank deregulating it in 2011, former RBI Deputy Governor Mr. SS Tarapore sees this as a clear case of cartelisation, requiring the attention of the Competition Commission of India.  (BL)

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Kharif sowing set for a boost as monsoon spreads wings: With Delhi and its adjoining areas receiving moderate to heavy pre-monsoon showers and the southwest winds active over Chhattisgarh, Odisha, West Bengal and Jharkhand, the planting of key kharif crops, such as paddy, pulses, oilseeds, sugarcane and cotton, is set to get a boost. (FE)

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Who said inflation is down?: Wholesale and consumer price indices are trending lower, but this has not brought relief to the common man. In May, the wholesale price index recorded negative growth for the seventh consecutive month. The consumer price index edged marginally higher in May to 5.01 per cent, from 4.87 per cent a month earlier, but was still well below last year’s 8.33 per cent rise. (BL)

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Boring banks a safe haven in a scary world: When fears of a Greek default are mounting, stock markets are jittery at multi-year highs, and the world's biggest economy is preparing to hike interest rates, the idea of taking refuge in bank stocks might appear to be a hard sell. Yet that's exactly what some investors and brokers are recommending, on the basis that the sector is cheap, has been scrubbed cleaner post-crisis and may be able to pass on higher rate costs to clients in an improving economy. (FE)

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India slips to 61st place on Switzerland money list: India has moved down to 61st place in terms of foreigners' money in Swiss banks and it now accounts for a meagre 0.123 per cent of the total global wealth worth USD 1.6 trillion in Switzerland's banking system. Interestingly, just two big banks -- UBS and Credit Suisse -- account for nearly two-third of the total money kept by foreigners in Swiss banks, while their share in case of Indians is even higher at about 82 per cent. (FE)

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SBI plans Dollar bond sale to raise $1.5 billion: State Bank of India plans to launch its second dollar bond sale of the fiscal year to raise $1.5 billion, or even more, to utilise the window available to borrow at a lower cost before the US Federal Reserve possibly raises rates later this year, said two people familiar with the plan. (ET)