Man decamps with Rs 66,000

In an incident involving ingenious criminal intent, a man was robbed of Rs 66,000 near the UCO Bank premises under Paltan Bazar police station today. Lal Mohan Singh had taken out an amount of Rs 66,000 from the bank and was about to move away on his bicycle parked nearby when a person told him that there were some currency notes on the ground which could belong to him. Thinking it could be so, Singh’s attention was diverted from his cycle where he had kept the cash. But during those moments the unknown person picked up Singh’s cash and disappeared from the scene. Investigation is ...

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Man decamps with Rs 66,000

In an incident involving ingenious criminal intent, a man was robbed of Rs 66,000 near the UCO Bank premises under Paltan Bazar police station today. Lal Mohan Singh had taken out an amount of Rs 66,000 from the bank and was about to move away on his bicycle parked nearby when a person told him that there were some currency notes on the ground which could belong to him. Thinking it could be so, Singh’s attention was diverted from his cycle where he had kept the cash. But during those moments the unknown person picked up Singh’s cash and disappeared from the scene. Investigation is ...

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UCO Bank gets extension to meet provision coverage ratio

After ICICI Bank and SBI, UCO Bank has got some leeway from the Reserve Bank of India (RBI). CNBC-TV18 learns that the RBI has given the public sector lender a six-month extension, up to March 31, for achieving the 70% provision coverage ratio, reports CNBC-TV18’s Vidhi Godiawala.Certainly good news coming in there for UCO Bank, what we are picking up from our sources in the regulator and RBI is that they have been given a six months extension to reach the 70% provision coverage ratio by March 2011, instead of September 2010.What is provision coverage ratio? It’s the amount of money a bank keeps aside for its bad loans or its non-performing assets.Now, UCO Bank has been given the extension till...

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UCO Bank gets extension to meet provision coverage ratio

After ICICI Bank and SBI, UCO Bank has got some leeway from the Reserve Bank of India (RBI). CNBC-TV18 learns that the RBI has given the public sector lender a six-month extension, up to March 31, for achieving the 70% provision coverage ratio, reports CNBC-TV18’s Vidhi Godiawala.Certainly good news coming in there for UCO Bank, what we are picking up from our sources in the regulator and RBI is that they have been given a six months extension to reach the 70% provision coverage ratio by March 2011, instead of September 2010.What is provision coverage ratio? It’s the amount of money a bank keeps aside for its bad loans or its non-performing assets.Now, UCO Bank has been given the extension till...

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Fraud & fictitious offers increase in 2 years: RBI

KOLKATA: Reserve Bank of India on Friday said fraudulent and fictitious offers though e-mails, mobile phones and SMSs had increased significantly in the last two years despite public awareness by RBI."Such fictitious offers had increased in the last two years," RBI general manager C L Nag said here today while addressing media on steps of the central bank in this regard.He did not give the number of complaints against such fictitious offers it has received, saying most of these were informal.Nag said several circulars since 2000 had been issued by RBI on such offers and urged people not to be lured by them in which money is asked upfront terming as processing fee, transaction fee, tax clearance...

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RBI asks banks to give reasons for returning cheques

Keeping in view the larger interests of customers, the Reserve Bank of India (RBI) today asked banks to inform account holders on the reasons for a cheque being returned or dishonoured.Banks are advised to indicate the date of return in the 'Cheque Return Memo' without fail, the RBI said in a statement.The memo that should accompany a cheque dishonoured or returned for any reason is a critical document, more so in case recourse to legal action is necessitated, it said.Instruments returned unpaid should have a signed objection slip on which a definite and valid reason for refusing payment must be stated, it said.Certain instances of banks not mentioning the date of return on the cheque return...

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RBI asks banks to give reasons for returning cheques

Keeping in view the larger interests of customers, the Reserve Bank of India (RBI) today asked banks to inform account holders on the reasons for a cheque being returned or dishonoured.Banks are advised to indicate the date of return in the 'Cheque Return Memo' without fail, the RBI said in a statement.The memo that should accompany a cheque dishonoured or returned for any reason is a critical document, more so in case recourse to legal action is necessitated, it said.Instruments returned unpaid should have a signed objection slip on which a definite and valid reason for refusing payment must be stated, it said.Certain instances of banks not mentioning the date of return on the cheque return...

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Asia's oldest co-operative bank closes

The Reserve Bank of India has finally cancelled the licence of Asia's oldest co-operative bank, Vadodara-based Anyonya Co-operative Bank Limited (ACBL), after examining all options for its revival.RBI sources here said the bank had been ordered to stop all its transactions under Section 35A of the Banking Regulation Act, on September 14, 2007, and the bank downed its shutters in March, 2008. Its annual general meeting in September, 2008 formed a committee to find ways to re-open the bank.The fate of the bank had been uncertain ever since the RBI clamped restrictions on it for failing to reduce its non-performing assets (NPAs). Revival, merger and liquidation were all discussed for the bank,...

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Centre has cleared the appointment of five PSU bank's chiefs

The Centre has cleared the decks for appointing five public sector bank chiefs.Mr S. Raman, Executive Director, Union Bank of India, will shortly assume charge of Bangalore-headquartered Canara Bank as Chariman and Managing Director.Mr Ramnath Pradeep, ED, Central Bank of India, will be at the helm of Mangalore-headquartered Corporation Bank as CMD. Mr Arun Kaul, ED, Central Bank of India, will be the new CMD of Kolkata-headquartered UCO Bank.Mr R. Ramachandran, ED, Syndicate Bank, will be the new CMD of Hyderabad-headquartered Andhra Bank. Mr M. Narendra, ED, Bank of India, will assume charge of Indian Overseas Bank in Novemb...

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Education loan defaults rising

Education loans, a segment with lowest defaults among all other retail loans so far, have seen a sudden spurt in NPAs (non-performing assets) due to the shrinking job markets following the global economic meltdown.The defaults have been higher in loans below Rs 4 lakh, which are given without any collateral, according to senior bank officials.Indian Bank, for instance, has bad loans worth Rs 80 crore on its books as on June 30, 2010, according to its Chairman and Managing Director, Mr T.M. Bhasin. “We have witnessed some loans in the below Rs 4 lakh category going bad recently. We are tracking the students and trying to work out the recovery methods. The rise in delinquency is due to the lack...

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Education loan defaults rising

Education loans, a segment with lowest defaults among all other retail loans so far, have seen a sudden spurt in NPAs (non-performing assets) due to the shrinking job markets following the global economic meltdown.The defaults have been higher in loans below Rs 4 lakh, which are given without any collateral, according to senior bank officials.Indian Bank, for instance, has bad loans worth Rs 80 crore on its books as on June 30, 2010, according to its Chairman and Managing Director, Mr T.M. Bhasin. “We have witnessed some loans in the below Rs 4 lakh category going bad recently. We are tracking the students and trying to work out the recovery methods. The rise in delinquency is due to the lack...

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PMO rejects FinMin proposal on bank chief appointments

The Prime Minister’s Office (PMO) has turned down a finance ministry proposal to allow bankers with less than two years of residual service to be appointed as public sector bank chiefs.The move will affect several candidates in race for top posts of banksSources close to the development said PMO was against dilution of appointment norms, which have been in place for several years and have coincided with the re-emergence of public sector banks as strong players in the banking space.The sources said a term of less than two years did not give individuals time to implement their decisions properly.Following the feedback from South Block, the finance ministry has prepared a fresh set of names and...

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PSBs to get new chiefs soon, plan set into motion

The government is set to appoint a slew of public sector bank chiefs and in the fray are executive directors (ED) of various state-owned banks. A communication to this effect was sent by the Centre late on Tuesday evening. A number of EDs have given their consents to the government for their promotions to the top posts of few PSBs RM Malla, who is currently serving as chairman and managing director (CMD) of SIDBI, will succeed IDBI Bank CMD Yogesh Agarwal, who has been appointed as the chairman of PFRDA from next month. Similarly, Uco Bank CMD SK Goel is likely to head India Infrastructure Finance Company and Corporation Bank CMD JM Garg is likely to get berth in chief vigilance commission(CVC)....

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Licensing regulations relaxed: banks gear for expansion

RBI has allowed banks to set up branches in Tier III to VI cities without prior approval from the apex bank. With this relaxation hitting the banking platform, banks have doubled their plans of expansion.RBI had permitted scheduled commercial banks in December 2009 that they can open up branches in Tier III to VI cities without prior permission. This has resulted in doubling of number of branches opened by banks this year in comparison to last year.PNB plans to come up with 550 branches in the country. According to CMD, K.R. Kamath, the bank does not require license for 440 branches as they are located in areas having population less than 50,000.SBI is also on expansion spree. The bank has spent...

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PSU banks target personal loans to boost margins

Banks such as Allahabad Bank, Uco Bank, Union Bank of India and United Bank of India have prepared plans on how to sell personal loan products to the retail client.The retail loan portion of these banks is far below the industry average and so they have to catch up. The retail loan share of these banks is mere 12-14% as against the industry average of 20-22%. These banks along with others had halted their personal loan segment due to fright of default after the financial slowdown.JP Dua, chairman and MD of Allahabad Bank said, “Personal loan gives a better spread as well as it helps in building relationship”. The present retail loan share of the bank is 13.92% which it plans to raise to 22%...

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UCO follow-on offer likely by mid-June'

Public sector lender UCO Bank is hoping to come out with its follow-onoffer (FPO) by the middle of next month. The bank hopes to raise aroundRs 500 crore by issuing six crore equity shares.“We hope to come out with the FPO by mid-June,” said Chairman andManaging Director SK Goel.The FPO is expected to bring down the government shareholding from63.59 per cent to 58.60 per cent. Earlier, the bank was also mulling toraise funds through qualified institutional placement (QIP), butultimately shelved the proposal.“In general, the government prefers FPO, as the shareholding isbroadbased. In QIP, the shares are concentrated in few hands. However,the cost is much less in QIP,” Goel had earlier said.As...

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Issue of Rs.20/- denomination banknotes with `R' Inset letter

Issue of Rs.20/- denomination banknotes with `R' Inset letter in bothnumbering panels in Mahatma Gandhi Series – 2005 bearing the signature ofDr. D. Subbarao, GovernorThe Reserve Bank of India will shortly issue Rs.20/- denominationbanknotes with `R' inset letter in both numbering panels in MahatmaGandhi Series – 2005 bearing the signature of Dr. D. Subbarao, Governor.Except for the change in the inset letter, the design of these notes tobe issued now is similar in all respects to the banknotes in MahatmaGandhi Series – 2005, with additional / new security features issued onAugust 16, 2006. All banknotes in the denomination of Rs.20/- issued bythe Bank in the past will continue to be legal ...

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SOME VERY POPULAR SCHEMES FOR INVESTMENTS (INCLUDING FOR TAX SAVINGS)

SOME VERY POPULAR SCHEMES FOR INVESTMENTS (INCLUDING FOR TAX SAVINGS)NAME OF THE SCHEME WHO CAN INVEST MINIMUM AND MAXIMUM INVESTMENTS ALLOWED OTHER DETAILSPublic Provident Fund (PPF) A PPF account can be opened at anytime during the year in a Post Office, or in SBI & its associates or in other selected nationalized banks. It is safe to invest in the instrument, as it is government-backed. It can be held by single, joint, minor with parent/guardian and HUF Min Amount : Rs. 500/- per annum, and thereafter in multiples of Rs 5/-Max Amount :Rs. 70,000/-The PPF account matures after 15 years. Tax benefit: Rebate under section 80C for the amount invested. Interest accrued is Tax-free. Interest...

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Some Help About Section 80C of IT ACT

What to Check before investing for Section 80CorHow to Make Best Use of Section 80CMost of the Income Tax payee try to save tax by saving under Section80C of the Income Tax Act. However, it is important to know theSection in toto so that one can make best use of the options availablefor exemption under income tax Act. One important point to note hereis that one can not only save tax by undertaking the specifiedinvestments, but some expenditure which you normally incur can alsogive you the tax exemptions. Here are some tips for you : -(1) Always Check YOUR FORCED SAVINGS / EXPENDITURE ELIGIBLE FORDEDUCTION :(A) Home Loan :There is a provision that the payment made for repayment of theprincipal...

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PSBs score over pvt peers in interest income growth

Public sector banks' (PSBs) growth in net interest income (NII) vis-à-vis private banks has been higher during the fourth quarter ending March 2010 as compared with the corresponding period of the previous year, according to a study of 24 PSBs and 12 private banks.Despite higher NII, net profit of the PSBs declined 4.8% during the quarter. However, the fee-based income growth of PSBs, at 14.2%, was marginally higher than that of their private peers, at 14%.The fee-based income of the PSBs increased to Rs 46,460 crore from Rs 40,690 crore.When compared...

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4 banks to get Rs 1,500-cr fund infusion soon

Four state-run banks -Vijaya Bank, Central Bank of India, UCO Bank and United Bank of India- are likely to get Rs 1,500 crore as part of their recapitalisation package soon, according to sources. The fund infusion will enable these banks to maintain comfortable level of capital to risk-weighted asset ratio for supporting credit requirement of the productive sectors. Of the total, Vijaya Bank will get Rs 700 crore, UCO Bank Rs 300 crore, Central Bank and United Bank of India Rs 250 crore each, sources said, adding the government has already made a provision for subscription to tier-I instrument for capitalisation of these bank in the budget. During the past fiscal, the government had provided...

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RBI to decide 'Indian-ness' of banks now

The Reserve Bank of India will decide on the ‘Indian-ness’ of the country’s leading private sector banks as the government deliberates a solution for them without relaxing the provisions of the new foreign direct invesment policy. After over a year of discussions, the government has finally asked the central bank to suggest a framework for deciding on the ownership and control of such banks. The new norms will be based on parameters such as voting rights and the power to appoint directors, a senior government official said. “We need to recognize that the structure of each bank is different and accordingly redefine the concept of ownership and control for the banking sector,” he said. The move...

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Govt homes in on heads for 3 institutions

Govt homes in on heads for 3 institutionsUCO Bank Chairman and Managing Director SK Goel is set to take over as the new chairman of India Infrastructure Finance Company (IIFCL).Sources close to the development said the appointment of Goel, whose term at the Kolkata-headquartered bank was due to end in a couple of months, had been approved by the government and a notification was expected shortly.He will replace SS Kohli, whose extended term at the infrastructure finance company came to an end last month. The financial institution’s Executive Director Pradeep Kumar is currently officiating as the chairman and managing director.The sources also said at least two other appointments were being finalised...

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UCO Bank Q4 earnings soar 3.70 times

UCO Bank Q4 earnings soar 3.70 timesPublic Sector lender, UCO Bank (Q,N,C,F)* has announced a rise of 3.70 times in the net profit for the quarter ended March 31, 2010. The net profit of the company was at Rs 3,798 million for the quarter as compared to Rs 1,025.60 million as compared to prior year period. Total income of the company was at Rs 26,900, a rise of 6.72% over the prior year period.Shares of the company declined Rs 0.8, or 1.14%, to settle at Rs 69.20. The total volume of shares traded was 2,399,012 at the BSE (Frida...

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Govt go-ahead for mobile banking

Govt go-ahead for mobile bankingNew Delhi: Mobile banking is set to be a reality now. A committee of secretaries, under the chairmanship of cabinet secretary K M Chandrasekhar, has given a go-ahead to the proposal by accepting the report of the inter-ministerial group (IMG).With wireless subscriber numbers in India crossing the 575 million mark and growing by 18-19 million every month, the government wants to empower the masses as far as financial service delivery is concerned.The IMG was constituted in November 2009, with top representatives from the Department of Information Technology (DIT), Ministry of Finance, Department of Posts, Department of Telecom, Ministry of Rural Development, Planning...

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Govt to review bank CMD selection process

Govt to review bank CMD selection processThe finance ministry will review the selection process for the posts of chairman and managing director (CMD) of eight public sector banks (PSBs) following complaints from some Members of Parliament (MPs). The appointments may be delayed now.The finance ministry conducted interviews earlier this year and prepared a list of candidates. Eleven top posts in public sector banks will fall vacant in 2010. Two posts have already been filled with candidates selected last year.MPs have now raised questions over the transparency of the process and alleged that certain norms were flouted during the selection this year.Law makers argued that relaxations in eligibility...

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Banks post big gains, but run may not last long

Banks post big gains, but run may not last longMumbai: Large private banks have posted healthy profits for the three months to 31 March, but their public sector peers reported mixed results, indicating, say analysts, that times could turn tough as interest rates rise amid limited upside to credit growth.The country’s largest private sector lender, ICICI Bank Ltd, posted a 35% year-on-year increase in net profit to Rs1,006 crore for the quarter. HDFC Bank Ltd and Axis Bank Ltd saw net profit rise by 32.6% and 31.5% for the quarter, respectively.Profit jumped on the back of growth in loans and income from the sale of retail and treasury products as well as measures to cut costs.Among public sector...

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Know Your Customer (KYC) Norms/ Anti- Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)

Know Your Customer (KYC) Norms/ Anti- Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)RBI/2009-10/439DNBS(PD).CC. No. 172/03.10.42 /2009-10April 30, 2010All Non Banking Financial Companies /Residuary Non Banking CompaniesDear Sir,Know Your Customer (KYC) Norms/ Anti- Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)Please refer to Company Circular No 166 dated December 2, 2009 on the captioned subject. Financial Action Task Force (FATF) has issued a Statement dated February 18, 2010 on the subject (Copy enclosed) which divides the strategic AML/CFT deficient jurisdictions into three groups as under:(i) Jurisdictions subject to FATF call on its...

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Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances - Projects under Implementation

Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances - Projects under ImplementationRBI/2009-10/424UBD.BPD.PCB.Cir.No. 59 /09.14.000 / 2009-10April 23, 2010The Chief Executive OfficerAll Primary (Urban) Cooperative BanksDear Sir,Prudential Norms on Income Recognition, Asset Classification andProvisioning Pertaining to Advances - Projects under Implementation'Project Loan' would mean any term loan which has been extended for the purpose of setting up of an economic venture. Banks must fix a Date of Commencement of Commercial Operations (DCCO) for all project loans at the time of sanction of the loan / financial closure* (in the case of multiple...

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Historic Settlement

The so called Historic Settlement has shown how much poor vision our top most union leadership has. After the meeting with IBA when it was decided that all employees / officers who are in the service have to contribute 1.6 times of November, 2007 salary towards their contribution towards giving another chance to PF optees. In all the circulars it was clearly indicated that this has been done with a view so that no legal hurdles are raised. Mr. Nadaf, who himself patted for the Fair settlement, has written that this is necessary as on earlier occasions (read earlier 7th and 8th settlements), PF optees have sacrificed their share.As late as on 24/04/10 evening Mr.NADAF's Silver Jubilee speech...

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HOW OUR SO CALLED SUPER HERO LEADERS WERE BEFOOLED BY IBA

Almost every banker in last few months have seen number of circulars by our union leaders wherein they have showered whole lot of praise on themselves for achieving a historical settlement. But one more example of "How they have been befooled by IBA" has come to our knowledge through one of readers. A reading of this will make you feel whether our union leaders are really capable of calculations or they go around hotels and enjoy their meals and sleep in the meetings.Let us go through this example :(A) WHAT IS THE RECOVERY AMOUNT FOR PENSION FUND AS PER IBA VERSION :Total amount to be recovered for pension fund = Rs.1,800.00 Crore(B) WHAT IS THE TOTAL BURDEN DUE TO INCREASE IN SALARIES...

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Meeting With Finance Minister

What is the likely impact of meeting with Finance Minister for recently retired bankers.Meeting With Finance Minister :It has been reported that UFBU leaders represented to the Finance Minister that since the Actuarial Report was based on the details of 31-3-2008, the pension option settlement should be effective from 1-4-2008, i.e. those who were on service on 1-4-2008 should be treated as existing employees for the sake of the settlement and pension payments on account of the option should be made from 1-4-2008.FM did not agree with this viewpoints. However, he stated that the effective date can be taken as 27-11-2009, i.e. the date on which we had signed the MOU.What is the impact of this...

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Background for Pension Facilities in Banking Industry in India

Background for Pension Facilities in Banking Industry in India :The present guidelines indicate that employees who have joined in the service of the bank on or after 29-09-1995 are automatically covered under the Pension Scheme. However, employees who were in the serving in the banks up to 28.09.1995 have to opt for Pension. This option was allowed as one time exercise in 1995, and employees who opted for Pension were not eligible for the bank contribution to PF.A) Various Types of PensionThe following types of Pension are normally available to employees in banks, under Employees Pension Regulations, 1995:-1. Superannuation Pension.:Granted on attaining the age of superannuation. Minimum 10...

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Union Bank Of India Enters Mutual Fund

In a latest development,Union Bank of India has teamed up with KBC Asset Management based in Belgium to form a new asset management entity. The new venture is called Union KBC Asset Management which was inaugurated on Friday in Mumbai by Prince Philippe of Belgium. It will start mutual fund operations in the country soon, as the bank has revealed. The joint venture was signed two years back and as per the agreement, KBC has 49 percent stake in it while Union Bank of India has 51 percent stake. The entity is now awaiting the final approval from SEBI for making the investments. The news has been affirmed by the Managing Director and chairman of the bank Mr M.V. Nair.Union Bank of India is expecting...

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Third Quarter Review of Monetary Policy 2009-10 By Dr. D. Subbarao Governor

This Policy Review statement should be read and understood together with the detailed review in Macroeconomic and Monetary Developments released yesterday by the Reserve Bank. The statement is organised in four sections. Section I provides an overview of global and domestic macroeconomic developments; Section II sets out the outlook and projections for growth, inflation, money and credit aggregates. Section III explains the stance of monetary policy and Section IV specifies the monetary measures.I. The State of the EconomyGlobal Economy2. The global economy is showing increasing signs of stabilisation. The growth outlook in virtually all economies is being revised upwards steadily, with the...

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