Build robust mechanism to prevent e-banking fraud: RBI(Report in Hindu Business Line )
MUMBAI, NOV. 12:
The Reserve Bank of India wants banks to build a robust mechanism to prevent incidents of fraud in areas of mobile/Net banking and electronic fund transfer.
“With greater infusion of technology in banking, the incident of frauds in Internet banking has witnessed an increase in recent times. Banks need to improve customer awareness to contain incidents of frauds involving customers,” the RBI said in its latest Report on Trend and Progress of Banking in India.
Ensuring efficiency of the banking sector by way of technology infusion while minimising the occurrence of fraudulent events has become one of the major objectives of the Reserve Bank in recent years.
According to RBI, complaints related to unauthorised fund transfers, fraudulent withdrawals from ATMs using duplicate cards, phishing e-mails aimed at extracting personal information have registered significant increase in recent times.
http://www.thehindubusinessline.com/industry-and-economy/banking/build-robust-mechanism-to-prevent-ebanking-fraud-rbi/article4077994.ece?homepage=true&ref=wl_home
Pubic sector, foreign banks hit by bad loans: RBI
from Hindustan Times
State-run banks and foreign banks were hit by bad loans as their non-performing assets rose, says the Reserve Bank of India (RBI).
Led by state-run banks and foreign lenders, "the asset quality of the banking system deteriorated significantly in FY12 after a period of sustained improvement," says the report on 'Trend and Progress of Banking in 2011-12' released on the weekend.
Non-performing assets (NPAs) of public sector banks rose to Rs. 1,11,664 crore in 2012 from R52,807 crore in 2003, it said. NPAs of State Bank of India (SBI) and its associates in 2012 (as of March 31) were at R45,695 crore from Rs. 16,958 crore in 2003, while that of nationalised banks' were at Rs. 65,969 crore versus Rs. 35,849 crore.
Though the report states that there is no systemic risk to the banking system as fundamentals are robust, the RBI says the banking system is weaker due to rising bad loans as growth has fallen below potential and firms are reeling under obstacles to project clearances.
The fall in asset quality was more visible in public sector banks, the report added.
http://www.hindustantimes.com/News-Feed/BusinessBankingInsurance/Pubic-sector-foreign-banks-hit-by-bad-loans-RBI/Article1-958150.aspx
13 NOV, 2012, 05.00AM IST, ET BUREAU
Private sector lenders such as HDFC Bank, ICICI Bank emerge as investors' favourite due to lower NPAs
(from economic times )
MUMBAI: After the September quarter results, private sector lenders such HDFC BankBSE 1.85 % and ICICI BankBSE 0.08 % have emerged as clear investors' favourite as public sector banks reel under the stress of rising bad loans.
The sluggishness in the economy is set to hurt all lenders, but state-run banks are likely to suffer more because of their exposure to infrastructure, which is expected to account for a big chunk of their NPAs. "PSU banks' valuations are cheap, but it is hard to say which bank will disappoint more on NPAs," said Abhijit Gulanikar, chief investment officer at SBIBSE 1.59 % Life. "At the moment, private sector NPAs are under control."
The Q2 earnings show that bad loans at the top-five public sector banks rose by 80% against the 10% jump for private sector banks. "The private sector will continue to be preferred over the public sector as there is no sign of a trend reversal in the near term," said Vaibhav Agarwal, analyst at Angel Broking. "There is a huge divergence in net NPA and provisioning for private and public sector banks."
The price-to-book value of HDFC Bank is 5.05%, ICICI Bank is 2.02% and Axis BankBSE 0.85 % is 2.27%. In comparison, the P/BV at public sector banks is much lower - it is 1.72% for SBI, 1.14% for Bank of BarodaBSE 0.54 %, and 0.99% for PNBBSE 0.22 %. The price-to-book value is the ratio of market value of the equity to the book value of the equity. A higher P/BV means the company's shares are over priced.
Public sector banks would have posted a flat or lower growth in profits if they had made provisions for the increase in net NPA, said Agarwal. "A spike in NPAs is not unusual in the given economic environment," said MD Mallya, chairman and managing director of Bank of Baroda. "In the coming quarters, we expect revival and recovery to be better in the accounts that have gone bad."
Most problems for state-run banks arise from their high exposure to infrastructure such as power and roads, where projects are stuck at various stages due to administrative obstacles.
http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/private-sector-lenders-such-as-hdfc-bank-icici-bank-emerge-as-investors-favourite-due-to-lower-npas/articleshow/17200553.cms
NOT only NPA But Growth of Frauds Is Also With Alarming Speed
| India lost Rs 6,600 cr to fraud in FY12: E&Y report |
| Insiders enable 61% of frauds financial services hit the worst |
BS Reporter / New Delhi Nov 02, 2012, 00:59 ISTBusinesses in India recorded losses worth a whopping Rs 6,600 crore in the last financial year, with a significant portion of these frauds occurring in the financial services sector.
Click on following link to read more
http://dkjain497091112006.blogspot.in/2012/08/not-only-npa-but-growth-of-frauds-is.html
Fraud and Manipulation Is Deep Rooted Culture
Culture of fraud is deep rooted in Indians. Fraud and manipulation are at the root of all successes barring a few exceptions. If a person enters into any government service by paying bribe or by using the source of some VIP or by using any unfair means as per demand of the situation, he is bound to promote fraud culture, he is bound to apply all tools to earn money and power by same brand of illegal means to gain money power, positional power and finally to become a attractive figure in the society. Similarly if a businessman or a trader has to pay bribe for starting and continuing a business he will tend to use unfair means to earn more and more wealth to perpetuate the corrupt culture.
http://jaindanendra.blogspot.in/2012/08/fraud-and-manipulation-is-deep-rooted.html
http://importantbankingnews.blogspot.in/2012/09/bankers-who-damaged-banks-by-their.html
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