Banks invest more in gilts
Mumbai: Banks have been putting even more of their money in gilts. On an incremental basis in 2003-2004, bank investment in government securities is far higher than the growth in credit. Indeed, their investment in gilts accounts for roughly 66 per cent of their incremental assets, against the stipulated 25 per cent.

According to the Reserve Bank of India's weekly statistical data released on Saturday the incremental non-food credit of banks in the first nine months of the year (between April and December 12) is Rs 55,125 crore — about 60 per cent of banks' investment in government securities during this period. Banks put Rs 97,197 crore in government paper during the nine months.
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Banking Bill will lapse if polls are advanced
New Delhi: An early general election will bring the curtains down on quite a few significant Bills the BJP government had pushed for during its tenure, says a report. Of these the most important will be the long-pending Banking Companies (Acquisition and Repeal) Bill to reduce government stake in public sector banks to 33 per cent. The government will also have to re-promulgate the Ordinance to keep alive the National Tax Tribunal as the Bill will lapse with the dissolution of the Lok Sabha.

The Banking Bill was introduced in the Lok Sabha in December 2001 as part of the Budget promise made by former Finance Minister Yashwant Sinha. The Bill is yet to return from the standing committee on finance, which has not submitted its report on it. The Government Securities Bill to make the gilts market attractive for retail investors by allowing them to transfer or mortgage their debt securities is also likely to share the same fate.
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IDBI to move RBI for recast of priority sector lending norms
Mumbai: The Industrial Development Bank of India (IDBI), which has been converted into a banking company by Parliament, will soon initiate discussions with the Reserve Bank of India (RBI) so that development finance, which will remain its core area of activity, is brought within the definition of priority sector for it, a newspaper report said.

Alongside, IDBI will also apply for 100 branch licences soon as it begins its conversion into a full-fledged bank. Currently, IDBI has 36 branch offices which will be converted into bank branches once the change takes place operationally. IDBI has also invited presentations for a fresh brand-building exercise which would reposition the institution in its new avatar before the public. The presentations would begin soon.
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