Centre puts SBI merger on hold

The State Bank of India chairman, Mr O.P. Bhatt, has been asked by the ministry of finance, department of financial services, to withhold the merger process of the State Bank of Indore with itself.In a confidential letter to the SBI chairman dated October 8, (which is in the possession of this newspaper), the ministry said, “You are requested to kindly consider any further acquisition of the Associate Banks only after a view is crystallised on the subject by the government.”The letter was in reply to the three letters sent in July, August and September by the SBI regarding its proposed acquisition of its associate banks. The finance ministry said that the government is presently “considering...

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RBI Reference rate for US dollar and Euro

The Reserve Bank of India today fixed the Reference rate for the US currency at Rs 46.58 per dollar and the single European unit at Rs 69.54 per euro from Rs 46.41 per dollar and Rs 69.26 per euro, respectively, yesterday.In a note issued here by the apex bank, the exchange rates of Great Britain's Pound and Japanese Yen against the Rupee have been given as Rs 77.5650 per pound and Rs 52.49 per 100 yen, respectively, based on the Reference rate for US dollar and middle rates of the cross currency quotes at noon.The Reference rate is based on 12 noon rates of a few select banks in Mumbai and the SDR-Rupee rate will be based on this rate, the release add...

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Union Bank starts Auditing Branches

After some of its branches were interrogated by the income-tax department for their involvement in the Madhu Koda money-laundering case, state-owned Union Bank has started auditing the accounts of the branches which had shown high transactions.Talking to FE, a top brass of the bank said on condition of anonymity, “We have already asked some of those branches to go for fresh audit that are having high-value transactions.” However, he refused to give any further details.The bank official stressed that entire transactions in his bank was in compliance with Know-your-customer (KYC) and anti-money laundering (AML) norms.Another official of the bank said that like other banks, all the branches of...

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Corporation, Andhra & Dena Bank hot picks on M&A street

Corporation Bank, Andhra Bank and Dena Bank, are the hot favourites takeover targets among the large PSU banks which met the FinanceMinistry officials on Wednesday.Chiefs of Punjab National Bank, Canara Bank, Union Bank of India, Bank of India and Bank of Baroda met Finance Ministry official to discuss the pros and cons of consolidation among banks in India.Sources from banking industry, on condition of anonymity, said Union Bank, Bank of Baroda and Punjab National Bank were keen on acquiring Corporation Bank while Canara Bank and Punjab National had shown interest in Dena Bank.Bank of India had expressed interest in Oriental Bank of Commerce. Union Bank and PNB had also shown interest in Andhra...

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