Banking news update

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'Govt to infuse additional Rs 11,500 cr in PSU banks in FY16': The government might infuse additional $1.8 billion (about Rs 11,500 crore) in PSBs this financial year over and above $1.2 billion earmarked in the Budget, Finance Secretary Mr. Rajiv Mehrishi said. (BS)

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PSBs need capital to meet global norms: RBI Deputy Governor Mr. R Gandhi said state-owned banks are "adequately" capitalised at present but would need additional money to comply with global capital adequacy norms in the future.  (IE)

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Need to keep monitoring monsoon impact on prices: RBI will wait longer to see the monsoon's impact on inflation, even as initial rainfall has been good, Deputy Governor Mr. S S Mundra said. (BS)

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RBI Governor signs of great depression: RBI governor warned of a Great Depression-like situation while reiterating his often-stated position that beggar-thy-neighbour policy adopted by governments could be disastrous. Although Mr. Rajan has repeatedly said that crisis-battling economies should not take policy measures without considering collateral damage to other countries, him comparing the current situation with the Great Depression of 1930s created ripples in the financial world. (TOI)

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RBI cancelled most of Friday's G-sec auction: RBI cancelled the auction of three of the four government securities on auction. The only paper to sail in the auction was the 7.88% 2030 paper. Those cancelled were the 7.35% 2024, the 7.95% 2032 and the 8.17% 2044. (BS)

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Foreign exchange reserves rise to $355.46 bn: The country’s foreign exchange reserves rose to  another all-time high of $355.46 billion for the week ended June 19, recording a week-on-week rise of $1.17 billion, show data released. Foreign currency assets rose $1.14 billion to $330.72 billion. (BS)

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Allahabad Bank seeks Rs. 1000 cr. from Government, may raise 1500 cr. via bonds: Public sector lender Allahabad Bank has sought a capital infusion of Rs 1,000 crore from the Centre for the current financial year, chairman & managing director Mr. Rakesh Sethi said on Friday. Separately, the lender may also raise up to Rs 1,500 crore through bonds to boost its capital adequacy. (FE)

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Axis Bank cuts base rate to by 10 bps to 9.85%: Axis Bank, the country’s third largest private sector lender, has cut its base rate by 10bps to 9.85%. The new rates will be effective from June 30. Base rate is the benchmark rate to which all rates are linked. (BS)

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HDFC Bank for step-up in public investment: HDFC Bank has projected India's gross value added (GVA) to grow by 7.8% in 2015-16 if the monsoon rain is better than projected by the weather department. And, 7.2% if it is as scanty as predicted. The GVA rose 7.2% in 2014-15 and 6.6% in 2013-14. It is not the same as GDP. GDP is GVA plus indirect taxes. (BS)

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IndusInd Bank raises about Rs 4,440-cr through QIP: IndusInd Bank raised  Rs 4,440 crore via share sale to institutional investors for building capability to expand its business. The sale that started on Thursday night for book-building was subscribed by two times, said a banker familiar with the transaction. (BS)

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Real effects of Insurance Act still to come, say life insurers: The real impact of the Insurance Laws (Amendment) Act will only be seen after corresponding regulations are brought out by the Insurance Regulatory and Development Authority of India (Irdai), life insurers said.