Axis Bank launches new concept -- Everywhere Teller Machines

MUMBAI: After automated teller machines (ATMs), the country's third-largest lender Axis Bank today introduced a new concept wherein a swiping machine at a shop can be used by an account-holder to withdraw cash . Christened as "Everywhere Teller Machines" (ETM), the facility has the potential to be used at the 1,80,000 points of sale of the bank spread across the country. "Generally, card swiping is done to make a purchase at a shopkeeper's end. ETM is the reverse wherein a customer can withdraw money at the shop," a spokesperson for the bank...

Read more »

Limitations of Indian banks' branching out abroad

During the early years it was not very easy for an Indian bank to open overseas branches, though the Reserve Bank of India was vested with the powers to allow them to open overseas branches. Policymakers took into account a number of factors and not all of which are purely commercial. The process required RBI to consult a number of departments within its own organisation and other ministries through the nodal finance ministry. Given the multiple considerations, RBI did not attempt to frame any definitive policy or guidelines in regard to the...

Read more »

Indian Bank hikes lending rate by 25 basis points

MUMBAI: State-owned lender Indian Bank today hiked lending rate for its existing customers by 25 basis points to 13.75 per cent in line with other banks. The bank has revised its Benchmark Prime Lending Rate (BPLR) from existing rate of 13.5 per cent to 13.75 per cent, Indian Bank informed the Bombay Stock Exchange in a filing. This will make all kind of existing loans, including housing and auto loans, expensive by at least 25 basis points. Last week, the country's largest lender State Bank of India raised both lending and deposit rates on...

Read more »

HDFC Bank to ride growth opportunities in emerging "Bharat"

MUMBAI: Private sector HDFC Bank aims to ride the growth opportunities thrown up by the increasing affluence of "Bharat" (rural India) and expects to grow higher-than-industry over the next few years, a top bank official said. The bank will also focus on organic growth, having completed the acquisition of CBoP a couple of years ago which has given it a strong footprint pan-India, he said. "There is a tremendous opportunity in rural India and with the country's GDP poised to grow at 8 per cent-plus over the next few years, HDFC Bank is well-positioned...

Read more »

Govt to infuse Rs 907 cr in Dena Bank, Vijaya Bank

NEW DELHI: The government will infuse Rs 907 crore as equity capital into two PSU lenders — Dena Bank and Vijaya Bank — as part of recapitalisation package to shore up equity capital. "The bank is in receipt of communication from the government conveying its decision to infuse Rs 539 crore by way of preferential allotment of equity...," Dena Bank said in a filing to the Bombay Stock Exchange. Further, Vijaya Bank would get Rs 368 crore as capital from the government and a board meeting in this regard would be held on February 22. Yesterday,...

Read more »

Royal Sundaram, Reliance arm to re-apply for merger

In light of the proposed merger and acquisition (M&A) guidelines for non-life insurance firms, general insurers Royal Sundaram and Reliance General, which had applied for a merger in July 2010 and were awaiting the regulator’s clearance, will have to file their application afresh. Last week, the Insurance Regulatory and Development Authority (Irda) laid down the draft guidelines for M&As among non-life insurance companies. It has invited comments by February 22, after which it will come up with the final guidelines. When the two companies...

Read more »

IRDA cancels PNB Principal Insurance Broking licence

NEW DELHI: Insurance regulator IRDA today said it has cancelled the licence of PNB Principal Insurance Broking pursuant to their request for surrender. "Pursuant to the request made by the Broker for surrender of Broker licence, the Authority hereby cancels the Direct Broker Licence granted to PNB Principal Insurance Broking," IRDA said in a statement. This is pursuant to the restructuring of the insurance broking business of state-run Punjab National Bank , under which PNB bought out the stake of its two partner. However, the other local partner...

Read more »

Kotak Mahindra Bank ups term deposit rates by up to 0.25 per cent

MUMBAI: Private sector lender Kotak Mahindra Bank on Wednesday said it has hiked its term deposit rates by up to 0.25 per cent across select maturities. The increase is with effect from today, the bank said in a statement issued Mumbai. For deposits of a maturity period of one-year and above up to and inclusive of 389 days, the rate has been increased from 8.75 per cent to 9 per cent and for 390-days from 9 to 9.25 per cent, it said. For a maturity of 700 days, the rate has been upped by 0.15 per cent from 9.25 per cent to 9.40 per cent. For...

Read more »

Govt to infuse Rs 1,248 cr into UCO, United Bank of India

MUMBAI: The government has decided to infuse Rs 1,248 crore into two public sector banks UCO Bank and United Bank of India as part of recapitalization package to shore up equity capital. The government has decided to infuse Rs 940 crore into the Tier I capital of the bank by way of preferential allotment of the equity, UCO Bank informed the Bombay Stock Exchange in a filing on Wednesday. Besides, another Kolkata-based United Bank of India would get Rs 308 crore. At the same time, Allahabad Bank and Chennai-based Indian Overseas Bank...

Read more »

SBI won't let you buy retail bonds online

MUMBAI: India’s largest bank, the State Bank of India , has decided not to offer to investors the option of subscribing to its retail bonds online like many other issuers, opting to sell these bonds only through its country-wide branch network. The retail offering of bonds aimed at raising Rs 2,000 crore has been priced attractively with the bank offering 9.75% for 10 years and 9.95% for 15 years. In most bond offerings, investors have the option of applying online or through the branches. SBI officials said the bonds would be sold at 150 branches...

Read more »

RBI warns against fraudulent mails

MUMBAI: Unnamed text messages and emails inviting you to pay or invest a little money against promises of stunning returns should be ignored. These are attempts by fraudsters trying to take unsuspecting and gullible individuals for a ride. RBI has cautioned individuals to stay away from such offers . The central bank has said these offers are fictitious and are often in the form of lottery winnings or remittance of cheap funds in foreign currency from abroad by some foreign entities. They are sent to individuals by way of email, SMS or even in...

Read more »

SBI to open 50 more branches in Gujarat by fiscal-end

AHMEDABAD: The nation's largest lender State Bank of India (SBI) on Wednesday said it will open 50 more branches in Gujarat by this fiscal-end. "We shall be adding 50 more branches by this fiscal- end to the existing network of 1,150 branches in Gujarat," SBI Gujarat Circle Chief General Manager P Nanda Kumaran told reporters here. Moving towards paperless banking culture, the state- run lender has proposed to open a separate 24X7 operational Self Service branch. "We will open a Self Service branch in Ahmedabad before this fiscal-end in one...

Read more »

SBI Mutual floats capital protection fund

As investors turn risk averse due to volatile markets, SBI Mutual Fund is attempting to attract them with a capital protection fund, even though the category has historically yielded poor returns. SBI Capital Protection Oriented Fund Series II is a five-year close-ended scheme, aimed at protecting capital on maturity through investments in equity, debt and money market instruments. The fund will be open for subscription between February 18 and March 11. To reduce interest rate risk, the fund will invest in central government schemes or debt...

Read more »

SBI to offer 15-year retail bonds at 9.95%

MUMBAI: State Bank of India will sell bonds to retail investors offering returns of 9.75% and 9.95% on 10- and 15-year bonds, respectively. In a letter to the Bombay Stock Exchange, the bank said its central board has approved raising funds through the issue of subordinated debt (lower tier II bonds). It has approved selling bonds worth Rs 1,000 crore, with an option to retain oversubscription of up to Rs 1,000 crore. In case of retail demand, SBI can retain the oversubscription beyond Rs 2,000 crore up to Rs 10,000 crore. This time around the...

Read more »

Bank of Maharashtra, State Bank of Mysore raise lending rates by 25 bps

MUMBAI: Two state-owned lender-- Bank of Maharashtra and State Bank of Mysore hiked lending rate by 25 basis points in line with other lenders. Bank of Maharashtra raised the Benchmark Prime Lending Rate (BPLR) by 25 basis points to 13.75 per cent effective yesterday, the bank informed the Bombay Stock Exchange. This will make all kind of existing loans, including housing and auto loan expensive by atleast 25 basis points. Besides, State Bank of Mysore has increased its Base Rate or the minimum lending by 25 basis points from 8.5 per cent to...

Read more »

Indian Bank ties up with TVS for vehicle finance

CHENNAI: Public sector lender Indian Bank today said it has entered into an agreement with TVS Motor Company for financing the company's vehicles. "The MoU will help to bring three wheeler drivers into structured banking and enhance Bank's collateral free lending," Indian Bank Chairman T M Bhasin told reporters here. Through this tie-up with TVS Motor Company, the Bank's loan book by March 2011 would increase to Rs 10 crore and its expected to be touch Rs 75 crore during the next financial year. "Besides Indian Bank we are having tie-up with other public sector undertaking bank .. But this will highly benefit the borrower as they (Indian Bank) offers them to pay about 15 per cent on the on-road...

Read more »

Bank trio thrive on low-cost deposits

Calcutta/Mumbai, Jan. 28: Armed with a new base rate system for lending and a significant improvement in low-cost deposits, Allahabad Bank, UCO Bank and Bank of Baroda today reported a hefty growth in their net interest income, resulting in an over 20 per cent growth in net profit for the quarter ended December 2010. While Allahabad Bank posted a 20.39 per cent jump in net profit for the third quarter of the current financial year at Rs 415 crore, Uco Bank’s net rose 22.35 per cent year-on-year to Rs 301 crore. Bank of Baroda’s net profit rose 28.4 per cent to Rs 1,068.88 crore. Allahabad Bank’s net interest income (NII) increased 55.67 per cent to Rs 1,051.63 crore, while that of Uco Bank...

Read more »

Robbers loot cash from man in Sivasagar

ORHAT: Unidentified miscreants snatched a handbag from a clerk of an educational institution from the Sonari branch of UCO bank in Sivasagar district on Monday. The bag contained Rs 1.14 lakh. Police have launched an investigation. Officer-in-charge (Sonari) Durlav Das said, "We have received a complaint from Hamidur Ahmed of the Bampathar area that someone snatched his bag at UCO Bank when he had kept it on a table in the staff room inside the office. He is a clerk of Bampathar Bengenabari Higher Secondary school. The amount he withdrew was the salary of the staff-members of the school." He also said it was mysterious how the bag was lost from inside the bank. "We have registered a case and...

Read more »