Banking news update

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Forex reserves down $237.5 mn: After rising for four consecutive weeks, foreign exchange reserves fell $237.5 million for the week ending June 26 to $355.22 billion, show data released by the Reserve Bank of India on Friday. Foreign currency assets, a key component of foreign exchange reserves, fell $216.6 million to $330.5 billion. (BS)

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RBI restricts foreign investors from buying shares in Petronet LNG: RBI said foreign investors could pick up fresh stake in Petronet LNG only after taking prior approval as foreign shareholding has reached the permissible limit in the firm. (BS)

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LIC to resuce of PSBs yet again: Troubled public sector banks have found LIC as their knight in shining armour yet again, case in point being Canara Bank. LIC has doubled its stake in the PSU lender to 14.49% as of June, from 7.29% in March. The bank raised Rs. 1,520 crore by issuing 4 crore equity shares at a price of Rs 380.08 apiece to LIC on preferential basis in May. (FE)

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MUDRA Bank bill likely in winter session: The Centre will most likely introduce a Bill on the MUDRA Bank in the Winter Session of Parliament, Mr. Jiji Mammen, Chief Executive of the bank, said. A committee has been constituted and the draft Bill is ready, Mr. Mammen said after inaugurating an Assocham conference here on Friday. (BL)

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Housing finance firms look to raise funds through ECB route: Housing finance companies are planning to raise funds through ECB route to diversify their funding requirements. Early this year, Indiabulls Housing Finance had tapped the market and more recently, HDFC announced such plans. Tata Capital Housing Finance and Dewan Housing Finance are also likely to tap the market this year. (BS)

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Crop showing keeps pace with monsoon: The kharif or summer crop sowing until Friday was 57% higher than the year-ago period because of widespread distribution of rains in June, brightening the prospect of robust production of a number of crops. Until last week, the sowing level was 23% higher than the corresponding period a year ago. Sowing activity usually gathers pace in the later part of June. 

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SBI to spend up home loan application: Country’s largest lender SBI launched an initiative to provide doorstep services and expedite home loans application process. The initiative known as ‘Project Tatkal’ will help get the loan within 10 days after receipt of application form and relevant supporting documents, the bank said in a release. (FE)

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SBI Cards enters dividend list, pays 5% to joint venture owners: SBI Cards has become a dividend paying company after wiping out all its accumulated losses, its Chief Executive Officer Vijay Jasuja has said. The credit card issuer paid 5 per cent dividend for the just ended financial year and is now eyeing the second spot in the Indian credit card market. (BL)

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FIPB clears Kotak bank proposal to increase foreign investment limit: The Foreign Investment Promotion Board (FIPB) on Friday cleared Kotak Mahindra Bank's proposal to raise foreign investment limit in the lender to 55%. After deferring a decision on the proposal in the past, the FIPB, headed by Finance Secretary Mr. Rajiv Mehrishi, cleared the application after the Department of Financial Services gave its opinion on the matter, sources said. (BS)

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Doha Bank eyes India exposure at $5 billion in three years: Even as it looks to ramp up its presence in the country in terms of branches, Doha Bank is expecting its exposure in India to grow from current $ 2.4 billion to $ 5 billion in 2-3 years, its group CEO, R Seetharaman said. (BS)

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IRDAI group to explore opportunities in insurance e-commerce: IRDAI is constituting two groups, one in life insuranceand one in general insurance, to explore opportunities in the e-commerce sector. In a circular, the regulator said they are inclined to facilitate the promotion of e-commerce in insurance space which will lower the cost of transacting insurance business along with bringing higher efficiencies and greater reach. (BS)

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Insurers' approved investments can only be in CNX 200, BSE 200 companies: IRDAI draft: IRDAI has, in its new draft on investments, said the equity investments in CNX 200 or BSE 200 can only be considered as approved investments. It further said other approved instruments for investment would also include debentures by first charge on immovable property. (BS)