Ad Here  
January
February
March
April
May
June
 
 
Merger mania haunts banks New bank licences, at last... Anytime banking to anywhere banking From lazy banking to easy banking Fund healthcare clinics in villages... The paradox: clamour for the Goliath and David Why any time money? Cradle of banks to a smart city... Insatiable appetite for credit Big bank merger, bigger expectations Drastic decline in asset quality Small finance payment banks... Grows Bigger Cautious and considerate Thirty more cities seek to become SMART Just 660 days! Target over-ambitious... LVB- A supermarket of financial services Who is the real beneficiary? Good, bad and ugly One down in private sector Cut in repo rate – lower than expected Managing NPAs... All that glitters is not gold... Needed a Banking Atlas Why priority status? A new development bank rising in the east… Governance in Reverse Gear? What is the priority – mergers or NPA reduction? Small is ‘more’ beautiful Drop in SLR- sparing lendable resources United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Smart banking in smart cities Stage set for Indian ‘avatar’ of foreign banks How okay are new banks? Ernakulam excels... Greet Lakshmi the banking robot Payment banks have arrived Aadhaar, niraadhaar and banking Another route for achieving financial inclusion Lacklustre credit expansion Growing volume of stressed assets… Banking overhauling or reorganisation? Banking on Risk Financial inclusion vs unclaimed deposits Perhaps small is more beautiful than big! Hesitancy in announcing year-end results Bottomlines shrink, bad loans rise... Reaching the Unreached… Holy or unholy? Small finance banks offer high interest rates Targets continue to be ad hoc Monetary policy continues to adopt dis-inflationary path The collaboration suite of cyber criminals A bank for women, by women Mega merger is on Ferrying digital banking to Lakshadweep Banking in Telangana Two banks: their jubilees and performances Indian customers are tech savvy Rationalised How ‘secure’ are the secured loans? Too big to fail and too small to sail Nothing much can happen…. It’s a war on black money, support it. Capital base of regional rural banks raised Growing gainfully Bank deposits account for 46.3 per cent of household savings A development bank for BRICS Reaching out: is it slowing down? Emerging crisis Well-lived... New capitals of Migrant banks
 
Capital base of regional rural banks raised

The Government of India is reported to have rejected the proposal of establishing Postal Bank of India, quoting the paucity of funds for subscribing to its capital. It has, however, found it expedient to enhance the authorised capital base of 56 gramin banks, though the time limit by which additional capital would be subscribed has not been specified. By amending the Regional Rural Banks Act of 1976, Government of India has raised recently the authorised capital of gramin banks from Rs.5 crore to Rs.2000 crore.  The fully paid up value of each share would be Rs.10 as against Rs.100 at present. This measure is intended to permit non-government agencies and individuals to subscribe to the share capital. At present Government of India holds 50 per cent, state government 15 per cent and the sponsoring banks 35 per cent of the total capital employed.

The total subscribed share capital of these banks, including the share capital deposits, is Rs.6367 crore as on March 2014. Since 2010, Government of India has contributed Rs.1038.14 crore to 38 gramin banks for recapitalisation. The state governments’ contribution was Rs.311.49 crore and that of sponsor banks was Rs.726.78 crore. If Government of India along with the state governments, decide to dilute shareholding from 65 per cent to 51 per cent, the volume of capital infusion required would be very huge. Shares of gramin banks may not be very attractive proposition for the general investors. Employment Stock option may be one way of filling the gap.

State governments, with 15 per cent capital participation, have been passive owners of gramin banks. These 15 percent of the shares may be offered to the public for subscribing, after the authorised capital is enhanced. A beginning in this direction can be made in the case of the bigger gramin banks, some of which have larger branch networks, compared to private sector banks of the old generation.

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com