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Sunday, April 13, 2014

Banks sell Rs 10,000 crore of bad loans to ARCs in March

Faced with unprecedented levels of stressed assets, banks led by the country's largest lender SBI sold over Rs 10,000 crore of bad loans to asset reconstruction companies (ARC) in March alone.

"This single-month figure is higher than any other yearly number from the past," an industry source told PTI, wishing not to be named.

Due to the high accretion of NPAs in the recent past -- the total NPAs stood at 4.2 per cent as of September 2013 -- the banks are being nudged to sell bad assets to the 14 ARCs.

Together with restructured assets the total stressed assets in the system touched 10.2 per cent as of the December quarter. Banks have recast nearly a Rs 1 trillion worth of loans in the past fiscal alone, taking the total CDR book to over Rs 4 trillion.

SBI, which had reported 5.73 per cent NPAs in the December quarter, led the chart by reportedly selling close to Rs 4,000 crore to ARCs. This was for the first time the bank has done so.

State Bank chairperson Arundhati Bhattacharya had last week said in Kolkata that her bank was selling Rs 3,500- 4,000 crore of its Rs 6,77,800 crore NPAs to ARCs in FY14. In March banks reportedly invited bids to sell Rs 42,800 crore of bad assets.

The ARCs have not been so strong in mopping up bad assets in the past few years and often complain about a lack of seriousness from banks when it comes to sale of assets.

According to ARCs, in the past banks merely used the mechanism of inviting bids for price discovery on the assets and walked out saying the money offered by ARCs is low.

Apart from SBI, other lenders have also gone public with their intention of selling bad assets.

The state-run Bank of India said it was mulling to offload Rs 900 crore to ARCs in the March quarter alone, after auctioning Rs 2,000 crore in the first three quarters.

The troubled United Bank of India, which reported a spike in the gross NPAs to over 10 per cent as of December, was planning to sell Rs 700 crore in bad assets.

Source: Economic Times
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Saturday, April 12, 2014

Ratnakar Bank gets Rs 328 crore infusion from global investors

Ratnakar Bank said it has received Rs 328 crore in capital infusion from leading global investors like CDC Group and Asia Capital & Advisors.

Existing investors, including International Finance Corporation (IFC) and Gaja Capital, also participated in this round of capital infusion, the private lender said in a statement here.

The exercise was part of the bank's third round of financing which started three years ago.

"These new funds will assist the bank in expanding its branch network in semi-urban and rural areas of as well as providing a suite of financial products and services to the unbanked sections of society," the statement said.

Founded in 1943, the bank has its main markets in Maharashtra, Karnataka and Goa. The lender's current business size stood at over Rs 21,000 crore and it offers services to more than 5,00,000 customers.

"IFC's repeat investment will assist Ratnakar in expanding its services to the under-served SMEs, helping increase access to finance," said Serge Devieux, IFC Director for South Asia.

Commenting on its investment, Srini Nagarajan of CDC said "we are strongly aligned with Ratnakar's strategy to expand and provide a range of financial services to customer segments that are under-served by the market. Our investment approach will complement their strong management team as they continue to implement the bank's growth strategy."

Francis Andrew Rozario of Asia Capital said, "We have been impressed by the track record of the management and staff of the bank and its achievements, which include successful transformation to their performance across all segments of the economy".

Source: Economic Times
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Tuesday, April 8, 2014

Bharatiya Mahila Bank plans to open 57 branches in 2014-15

Bharatiya Mahila Bank on Monday said it plans to open 57 branches across the country this fiscal year (FY15) to take its total number of branches to 80 by March 2015.

The bank plans to launch its net banking services shortly, for the convenience of its customers, it said in a statement.

In this short span of four months, BMB has opened 23 branches across the country with a presence at Mumbai, New Delhi, Bengaluru and Chennai.

Source: ndtv
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RBI to issue Rs. 10 with inset letter 'A' in numbering panel

The Reserve Bank of India will shortly issue Rs. 10 denomination banknotes incorporating "Re"symbol on the obverse and reverse, with inset letter 'A' in both the numbering panels, in the Mahatma Gandhi Series-2005 bearing the signature of Dr. Raghuram G Rajan, Governor, RBI, and the year of printing '2014' printed on the reverse of the Banknote.

The design of these notes to be issued now is similar in all respects to the Rs. 10 Banknotes in Mahatma Gandhi Series- 2005 issued earlier, the RBI said in a notification on Monday.

All the Banknotes in the denomination of Rs. 10 issued by the Bank in the past will continue to be legal tender, the RBI added.

Source: India Infoline
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Hitachi-Omron Terminal Solutions has entered Indian market of self-service terminal for banking with Cash Deposit / Cash Recycling ATM

Hitachi-Omron Terminal Solutions, Corp. (Hitachi-Omron Terminal Solutions) today announced that the number of Hitachi Cash Deposit / Cash Recycling ATM, HT-2845-V in operation in India has exceeded 1,000. Hitachi-Omron Terminal Solutions is the first manufacturer who achieved more than 1,000 Cash Deposit / Cash Recycling ATM in service in India.

In India, major installation of self-service terminal of banking transaction has been Cash Dispensing ATM (CD). In accordance with rapid economic growth in India, the needs of deposit automation has been increasing, and this trend is expected to continue. Hitachi-Omron Terminal Solutions defined India as one of the most important market as well as China and Indonesia.

Hitachi-Omron Terminal Solutions’ HT-2845-V is one of the bestselling Cash Deposit / Cash Recycling ATM in the world. Model “HT-2845-V” is reputed by banking industry as high performance and most reliable self-service cash deposit terminal based on its cutting edge sensing and mechatronics technologies. In India, HT-2845-V has been using as a Cash Deposit ATM, but it can be upgraded to Cash Recycling ATM.

Hitachi-Omron Terminal Solutions has entered Indian market of self-service terminal for banking with Cash Deposit / Cash Recycling ATM, HT-2845-V in 2010. Since the first order, Hitachi-Omron Terminal Solutions has delivered the ATM, HT-2845-V to India’s major public sector and major private sector banks, and has been installed nationwide in India. Hitachi-Omron Terminal Solutions’ ATMs are modified to adopt environment in India such as banknote condition, counterfeit threat, climate, etc. Along with HT-2845-V proved superior performance in live, installation has been expanded and achieved 1,000 units of installation.

“Our highly advanced note transportation technologies and bill validation technologies developed over many years are well acknowledged by financial institutions world wide.” Kokichi Murayama, Operating Officer and General Manager Global Business Group of Hitachi-Omron Terminal Solutions, Corp. said, “In Japan and China, we have achieved more than 100,000 units in each market, and also, in terms of Automated Deposit Terminal (ADT), we have No.1 market share in Thailand, Indonesia, Malaysia and Taiwan. As a leading company of cash recycling ATM, Hitachi-Omron Terminal Solutions will continue to expand Cash Deposit ATM business and create efficient cash management with cash recycling technology in India.

Source: India Infoline
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