ICICI Lombard wants to partner govt. for insurance cover
New Delhi: ICICI Lombard has approached the government to partner with its proposed insurance scheme that will cover 26 per cent of the country's population. Four PSU insurance firms are already part of the government's scheme. The chemicals ministry is awaiting more private firms to partner this mega scheme.
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Vijaya Bank goes fast on CBS implementation
Bangalore: Vijaya Bank has implemented its core banking solutions (CBS) in 307 branches across the country and is attempting to touch the 450-mark by March 2006. The bank has about 600 branches.

In line with the rapid expansion of branches under CBS the bank is also set to start issuing debit cards. It is increasing the number of ATMs across the country. At present it has 114 ATMs.

The debit card of Vijaya Bank is attached to Visa and can be used internationally. The debit card will be issued to account holders maintaining accounts with core banking branches.
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Dwindling cash situation lingers
New Delhi: The IMD redemption at the end of December 2005 saw the domestic banking system under severe strain as it was starved of cash.

The RBI injected Rs29,785 crore through the 1-day repo (repurchase) window under liquidity adjustment facilities on the last trading day of 2005 despite the unwinding of Rs23,250 crore under the market stabilisation scheme (MSS) balances and the cancellation of seven MSS auctions aggregating Rs19,500 crore since November 2005.

The bank had infused Rs30,110 crore on Thursday, Rs26,685 crore on Wednesday, Rs24,115 crore on Tuesday and Rs17,680 crore on Monday. The situation is completely in contrast with the one in mid-September when the banking system was flush with liquidity of around Rs36,000 crore.

Cash surpluses dwindled from Rs32,745 crore in January 4, 2005, to Rs2,040 crore in December 2005, reflecting a fall of 93.77 per cent.

Liquidity first came under pressure during Diwali when funds going out of the banking system were higher than usual. Despite the cancellation of various treasury bill auctions under MSS, liquidity continued to be under pressure because of the outflows due to regular government borrowing programme.

Towards December 2005, there was some cash surplus in the system but once again outflows due to advance tax payments to the tune of Rs20,000 crore coupled with India Millennium Deposits (IMD) redemptions led to a severe liquidity squeeze. Although the redemption of IMDs was a smooth affair, the Rs33,000 crore outgo has left a big dent on liquidity in the banking system.
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Inflation expected in moderate range
New Delhi: The wholesale price index for the week ended December 17 increased to 4.62 per cent from 4.50 per cent, mainly due to higher prices of rubber and naphtha. The inflation rate stood at 6.44 per cent during the corresponding week of the previous year.
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