RBI restricts foreign investors from buying additional HDFC Bank shares

http://profit.ndtv.com/news/market/article-rbi-restricts-foreign-investors-from-buying-additional-hdfc-bank-shares-375018

 The Reserve Bank of India (RBI) on Monday restricted foreign institutional investors (FIIs) from buying additional shares in HDFC Bank, the country's second-largest private lender, as their shareholding has exceeded the limit.

Stakes held by overseas investors, including FIIs, non-resident Indians (NRIs), persons of Indian origin (PIOs), foreign direct investment and global depository receipts, in HDFC Bank have crossed the ceiling of 49 per cent of its paid-up capital, the RBI said in a release.

No further purchases of the bank's shares will be allowed through the stock exchanges on behalf of overseas investors, it said.

FIIs, NRIs and PIOs are allowed to invest in the primary and secondary capital markets through the portfolio investment scheme, under which they can acquire shares and debentures of Indian companies through the stock exchanges.

The apex bank monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

For effective monitoring of foreign investment ceilings, the RBI has fixed cut-off points that are two percentage points lower than the actual limits.

Shares in HDFC Bank, on Monday, ended at Rs. 682.65 apiece on the BSE, down 1.12 per cent from the previous close.

Mahila Bank mulls childcare allowance for women staff

http://www.thehindubusinessline.com/industry-and-economy/banking/mahila-bank-mulls-childcare-allowance-for-women-staff/article5418481.ece

In a first of its kind human resource initiative in the public sector banking space, the Bharatiya Mahila Bank is planning to give childcare allowance to its women employees.

The proposed move is aimed at attracting and retaining talent, especially women employees in the junior management grade (entry-level officer) and middle management grade (officers of the rank of manager and senior manager) in India’s first women’s bank in the public sector.

Allowance amount

In the works is an allowance of Rs 500 a month or Rs 6,000 a year per child till the age of 12 years, subject to a maximum of two children.

While the salary offered by BMB is on a par with other public sector banks, it is trying to differentiate itself by adopting a more gender sensitive HR policy, said a senior Finance Ministry official.

If the childcare allowance passes muster with the eight-member all-women board of BMB, then other public sector banks too, are likely to follow suit.

The Delhi-headquartered BMB, which has been set up exclusively to meet the financial needs of women, began its operations last month.

So far, the bank has recruited 105 entry level officers. Of these, almost two-thirds are women.

To man operations at the head office and also to head branches, BMB has taken about 95 officers on deputation one grade higher than their current grade from other public sector banks.

Usha Ananthasubramanian, Chairperson and Managing Director, said her team is sparing no effort to lay the foundations for growth of the bank so that it can play an important part in meeting the financial aspirations of women.

The women’s bank has kicked off its operations with seven branches (Mumbai, Chennai, Kolkata, Guwahati, Bangalore, Ahmedabad and Lucknow).

By March-end, it intends to have 25 branches.

Going by its business plan, the new bank is expected to bolster its physical network to 778 branches and 2,088 ATMs by the end of the seventh year of operations.

It is eyeing a business (deposits plus loans) of Rs 60,000 crore by March-end 2020.