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

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