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PSU banks see potential in bad loans, plan asset reconstruction cos(The Hindu Business Line 24th Dec 2007)Some of the public sector banks that have largely been sellers of bad loans are now considering buying such assets, sensing the business potential this market can offer.
A senior official from State Bank of India said that the bank has, in principle, decided to purchase assets and could start the process by April next year. “We have agreed in principle to start aggregating debt. We could either invest in them or try to sell to other asset reconstruction companies.”
Central bankers to the rescue (The Hindu Business Line 24th Dec 2007) The central bankers of the world, who met in Cape Town in connection with the G-20 Conference early this month, appear to have decided on a series of actions to counter the effect of a severe credit squeeze, which has imposed serious risks on the US economy and hence the world in general.
It is not the first time in recent years that the central banks of the developed world, viz. the Federal Reserve of the US, the Bank of England, the Swiss National Bank, the Bank of Canada etc., have joined together to make an assault on a serious crisis. They have done so before, resulting in the Plaza Agreement of the 1980s.
Govt expenditure may ease funds; Re set to dip (Business Standard 24th Dec 2007)
Liquidity: Set to easeLiquidity is expected to improve this week following the budgeted government expenditure taking off in full swing at the end of the third quarter.
There is no pressure on liquidity, except for a stray demand from banks to meet the requirement towards the third quarter-end of the financial year.
Since foreign funds and banks are buying dollars to repartriate in the calendar year-end, it will add to the rupee liquidity, says a dealer.

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