State-run banks needs up to Rs. 5.87 trillion in core capital by March 2018

1.    State-run banks needs up to Rs. 5.87 trillion in core capital by March 2018

i. A RBI report has said that state-run banks will require up to 5.87 trillion rupees in core capital by March 2018 as they migrate to the capital intensive Basel-III framework.
ii. The panel on 'Governance of Boards of Banks' headed by former Axis Bank chairman PJ Nayak said that the government may have to arrange 3.50 trillion rupees of this requirement.

iii. The report further says that capital needs of public sector banks, increasing because of loan loss provisions, could begin to affect the fiscal health unless an overhaul of bank governance can lead to better management of public sector banks.

iv. The Basel-III norms were evolved after close consultation between the global central banks, following the global financial crisis of 2008. The Reserve Bank introduced the Basel III capital regulations for banks effective April 1 this year.
v. Meanwhile, the panel has also expressed the need for bank licensing regime to move to a uniform mode.

2.    RBI panel for diluting govt stake in public sector banks to below 50 %

i. The government should cut its holding in public sector banks to under 50 per cent, a Reserve Bank of India (RBI) panel report on Tuesday said, criticising the way in which the lenders are now being governed.

ii. The panel, headed by ex-Chairman of Axis Bank, P. J. Nayak, said governance at the 26 public sector banks (PSBs) suffered due to several ‘externally imposed constraints’ like dual regulation by the RBI and the Finance Ministry, and external vigilance by agencies such as the CVC and CAG, among others.

iii. The panel says the government should distance itself from several governance functions and repeal the Bank Nationalisation Acts of 1970 and 1980, together with the SBI Act and the SBI (Subsidiary Banks) Act.

iv. All banks should be incorporated under the Companies Act and a Bank Investment Company should be constituted where the government holding in all the banks should be transferred, the report says.

3.    Manipur crowned Senior National Women's Football champions

i. Manipur outplayed defending champions Orissa 3-1 to clinch the 20th Senior National Women's Football Championships title in Assam today.

ii. Bala Devi struck twice in the third and 55th minute as Oinam Bembem Devi scoring in between in the 20th minute. Orissa reduced the margin in the dying minutes of by Sakina Nesa's close-range strike but it was too little too late for the defending champions.

iii. Manipur last won the Championships in 2010.

4.    Oscar-winning Swedish director Malik Bendjelloul dies

i. Oscar-winning Swedish director Malik Bendjelloul died at the age of 36. Police say his body was found yesterday in the Stockholm area.
ii. They could not confirm the cause of death but said no crime was suspected.
iii. He was best known for Searching for Sugar Man which won the Oscar and Bafta prizes for best documentary in 2013.