Custom Search

Thursday, March 26, 2015

RBI eases lending curbs on United Bank; shares up 5%

The Reserve Bank of India has removed the restriction imposed on United Bank of India for sanction of credit / participation in restructuring proposals. This is significant in view of fresh slippage by corporate borrowers, including some restructured loans.

P Srinivas, MD & CEO of the bank, met the RBI Governor earlier this month and requested the RBI to remove restrictions on its corporate borrowing. After the bank reported net losses in the second and third quarter last fiscal, the RBI had clamped several restrictions on the UBI.

Since then, UBI has reported fourth consecutive quarterly net profits till December 31, 2014. UBI’s net NPA stood at Rs. 5,240 crore at the end of the third quarter. Until the end of the third quarter this fiscal, it restructured debt worth Rs. 7,697 crore. During the third quarter cash recovery was Rs. 194 crore, bad loans worth Rs. 318 crore were upgraded and Rs. 340 crore were written off. UBI currently also faces branch expansion restrictions.

The RBI in June last year allowed UBI to consider loan proposals up to Rs. 200 crore taking exposure to triple A-rated PSUs and corporate borrowers. The RBI also had removed the ban on recruitment early this year.​

At 1.55 pm, United Bank shares were trading up 5.01 per cent or Rs. 1.35 at Rs. 28.30.

Source : Thehindubusinessline
Read more »

Branches doing government business should be open on March 30 & 31: RBI

The Reserve Bank instructed all banks, who deal with government business, to keep designated branches open on March 30 and 31.

"It has been decided that all agency banks shall keep the counters of their designated branches conducting government business open for full day on March 30, 2015, and till 2000 hrs on March 31, 2015," it said in a notification.

The RBI said the government is desirous of accounting all the government transactions within the same financial year itself and has requested for special arrangements to be made at branches for this purpose.

It said the electronic transactions will continue till midnight on March 31.

The central bank has also asked the lenders to give adequate publicity about this facility, which is being done during the closure of the financial year, when banks are burdened with year-ending work.

Source : Economic Times
Read more »

Exim Bank green bond issue raises $500 mn

Export-Import Bank of India has successfully launched a five-year Green Bond issue of $500 million.

The issue, launched on Tuesday, attracted subscription of around 3.2 times the issue size led by demand across 140 accounts.

“The five-year $500-million Eurodollar Reg S Green bond issue was priced at 147.50 basis points over US Treasuries (UST) at a fixed coupon of 2.75 per cent p.a., cutting through the current secondary trading levels of similar bonds and achieving a pricing tighter than the bank’s own $500 million Reg S bonds issued in February 2015 for a 5.5 year tenor,” EXIM Bank said in a statement.

The above transaction marks the first USD-denominated Green bond offering out of India as well as the first benchmark-sized Green bond out of Asia in 2015 and the third ever Green bond issuance out of Asia. It provides Exim Bank an opportunity to expand its investor base and to support an important market as investors seek more socially responsible investment options. Exim will use the net proceeds from the sale of the notes to fund eligible green projects in countries including Bangladesh and Sri Lanka, it said.

The issue attracted over $1.6 bn of bookings across 140 accounts with significant participation from green investors and real money accounts. The offering saw majority (58 per cent) participation from fund managers, while banks (20 per cent), sovereign wealth funds / insurance companies (18 per cent) were the other major investor classes. The issue was distributed 60 per cent to Asian investors, 30 per cent to EMEA (Europe, Middle East and Africa) and the balance to offshore US investors. Bank of America Merrill Lynch and J.P. Morgan acted as Joint Lead Managers on the offering.

Exim Bank of India
has been rated ‘BBB-’ by Standard and Poor’s and ‘Baa3’ by Moody’s, same as the rating of Government of India.

David Rasquinha, Deputy Managing Director of Exim Bank, commented, “We were able to upsize the transaction to $500 million from initial indication of $250-300 million based on a strong investor response. The deal followed calls with select global investors spanning over two days. We were able to pick the optimal execution window and are satisfied with the outcome.”

Source : Thehindubusinessline
Read more »

Corp Bank opens ‘e-Lobby’

Corporation Bank opened a new branch with ‘e-Lobby’ facility at Balmatta in Mangaluru on Wednesday. The ‘e-Lobby’ facility at Balmatta is the sixth in Mangaluru. The other e-Lobbies are located at Head Office of the bank in Pandeshwar, Car Street, Jeppu, Kankanady and Bejai.

The e-Lobby has self-service automation kiosks and an ATM. A press release said here that the bank has so far opened 99 e-lobbies across the country. Amrit Paul, Inspector General of Police, Western Range, inaugurated the Blamatta branch. SR Bansal, Chairman and Managing Director of Corporation Bank, presided over the function.

Source : Thehindubusinessline
Read more »

Standard Chartered appoints new Group CIO

Standard Chartered (StandChart) announced the appointment of Michael Gorriz as Group Chief Information Officer.

He will join in the third quarter of 2015 and be based in Singapore, reporting directly to incoming Group Chief Executive, Bill Winters, the foreign bank said in a statement.

Michael will succeed Jan Verplancke, Director, current Group Chief Information Officer, who will retire after 10 years of service. Jan will leave on the completion of an appropriate hand-over period, the bank said.

Michael has prior experience at Daimler AG as Vice President and CIO. Michael (55) is a physicist and engineer by background and progressed through specialist research and design in aerospace to a general management role in Daimler Mexico. Over the past 14 years, he held various CIO roles with the group and since 2008 was responsible for strategy, planning and development of all IT systems, as well as the operation of all data centres and communication networks at Daimler AG.

Peter Sands, Group Chief Executive, StanChart, "Michael is an immensely talented CIO, who has worked across our footprint. As a leader in digital transformation, he has the capabilities and experience to drive innovation and change in technology and operations, which are key to delivering our productivity goals and to enhancing our service to clients.”

Source : Thehindubusinessline
Read more »

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site