Final norms on banks' unlisted non-SLR investments
Mumbai: The Reserve Bank of India (RBI) will soon issue final guidelines to clarify whether banks' investments in mutual funds will be considered part of their exposure to unlisted non-SLR papers. According to the RBI norms on banks' investment in non-SLR papers issued on 12 November investment in unlisted non-SLR securities should not exceed 10 per cent of the bank's total investment in non-SLR securities as on end-March of the previous fiscal.

Investment in non-SLR papers can touch the 20 per cent cap, provided such investments are made in certain specified securities. "RBI will soon issue the final guidelines on this," deputy governor K J Udeshi said.
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SBI may buy loan portfolios
Chennai: State Bank of India's management intends to seek its board's permission to buy securitised paper — loan assets from other financiers, the bank's managing director, P N Venkatachalam, said. Venkatachalam said SBI will, however, restrict itself to securities that enjoyed the highest rating.

Buying loans is another means to increase retail business. Retail portfolio (such as housing, vehicle and personal loans) is growing fast across the financial sector. In the case of SBI, retail loans portfolio is set to increase by nearly Rs 12,000 crore this fiscal, he said. "Retail loans are increasing by about Rs 800 crore to Rs 1,000 crore per month."
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BankMuscat likely to raise stake in Centurion
Mumbai: BankMuscat, a strategic investor in Centurion Bank's proposed capital infusion scheme, may increase its stake further once the central government's proposal to hike foreign direct investment (FDI) limit in private sector banks to 74 per cent gets cleared.

Post the capital restructuring scheme, which comprises an infusion of Rs 219 crore in two phases, BankMuscat will have a 26 per cent stake in Centurion Bank. "We may go for a higher stake in Centurion Bank as the move fits into our long-term strategy for the region. We have already put in place a five-year business plan for Centurion Bank which includes greater geographic reach in the country," a senior executive of BankMuscat told an Indian newspaper.
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