State Bank of India, the country’s largest lender, plans to beef up its international business by increasing the share of retail segment in its overseas book. The bank is planning to step up retail activity by raising resources and extending loans said SBI Deputy Managing Director P Chaudhuri. With Credit off-take at an all-time low, banks are staying invested in liquid mutual fund instruments even as the quarter draws to a close. According to data released by the Reserve Bank of India (RBI), investments by banks in mutual fund instruments in the fortnight up to June 5, 2009, increased by Rs 1,615 crore to Rs 1,22, 297 crore. In contrast, banks had lowered their exposure to mutual funds by Rs 3,313 crore in the corresponding fortnight last year. Life insurers are pitching for increased exemption on investments in long-term policies. They have asked the government to consider raising the exemption limit to around Rs 1.5 lakh from Rs 1 lakh at present. We want the government to increase the limit from Rs one lakh to around Rs 1.40-1.50 lakh, since investments in housing, education and mutual funds also qualify under the same limit. People will not like to invest in long-term plans when they get a similar exemption on a short-term policy. For this, we have asked to form a separate window. The limits will be increased on products with a minimum lock-in period of five years,” said S B Mathur, Secretary General, Life Insurance Council. Credit rating agency Moody’s Investors Service On Thursday said the profitability of Indian banks could be affected due to rising delinquency levels. In addition, Moody’s Asian Banking Outlook 2009 said that public sector banks might need fresh capital due to their low levels of Tier-I capital and their inability to reduce government holding below 51 per cent. The good news, however, is that the government has promised assistance to these banks and the private sector players have adequate capital, since they raised money earlier. Bank   of America Corp is deferring payment of 2008 bonuses of $50,000 or more at its   capital markets and investment banking units over three years, according to   people familiar with the matter                         The Reserve Bank of India (RBI) has turned down suggestions to relax rules for   recognizing non-performing assets (NPAs) by doubling the duration to 180 days.