Liquidity situation improves as bank deposits grow 17%

Bank deposits grew by 17 per cent in the year to February 11, indicating an improved liquidity scenario for banks on the back of increased deposit rates. Loan off-take also remained robust, growing by 24 per cent on-year. Banks mobilised around Rs 58,000 crore in the fortnight to February 11, data release by the Reserve Bank of India (RBI) show. In the previous fortnight, deposit accretion was around Rs 38,000 crore. RBI had projected deposit growth of 18 per cent for this financial year.Slow pace of deposit growth, accompanied by the high demand...

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SEBI slaps Rs. 25 lakh fine on Central Bank of India

Market Regulator SEBI imposed a penalty of Rs. 25 lakh for alleged violation of various norms pertaining to debenture trustee. The SEBI order said that Central Bank of India functioned as debenture trustee for IL&FS even when there was loan outstanding. The loan was given by the Central Bank of India. As per the norms, no debenture trustee will not act for any issue if it has lent the loan and the loan is not fully repaid or is proposing to lend money to the body corporate. A debenture trustee is an institution which is custodian of debentures...

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Survey for banking licences to India Inc

Pitching for industrial houses wanting to set up banks, the Economic Survey said that they should be given banking licences to promote the goal of financial inclusion. "As regards allowing industrial houses, business houses and NBFCs to promote banks, they may be allowed full banking license with provision for avoiding conflict of interest issues," the 2010-11 Survey tabled in Parliament by Finance Minister Pranab Mukherjee said. Providing access to banking facility to all citizens is one of the main objectives of the inclusive development agenda, it said. While providing banking access, it said, the issue of regulatory robustness for the banking sector should not be compromised. "Therefore,...

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Bank of India becomes 1st Indian bank to offer trade settlement in Chinese yuan

BEIJING: Bank of India has become the first Indian bank to offer trade settlement facility between the rupee and the Chinese RMB from Hong Kong. This follows intense persuasion by the China Banking Regulatory Commission , which is trying to gain acceptance of the RMB as an international currency. "We are the first Indian bank to offer real-time settlement facility in RMB to Indian exporters and importers. It will be save a lot of time because settlement in US dollars usually takes three working days," Arun Kumar Arora, BoI's chief executive in...

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Rail Budget 2011: No hike in train fares

For the third successive year, the Railway Budget for 2011-12 spared passengers of any increase in fares and proposed no hike in freight rates while introducing 56 new trains, including nine non-stop Duronto trains and three Shatabdis. Presenting her third budget in UPA-II in the Lok Sabha, Railway Minister Mamata Banerjee announced a slew of concessions including reducing the eligibility age of senior women citizens from 60 to 58 years and the fare concession for men above 60 from 30 to 40 per cent. Apparently with an eye on the coming Assembly...

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SBI won't accept bulk deposits for a while

MUMBAI: The country's largest lender, the State Bank of India (SBI), will temporarily step out of the bulk deposits market as it has enough funds to tide over tight liquidity in the money market. The decision closely follows a mobilisation of 3,900 crore by SBI from retail investors, who invested in bonds launched three days ago. The total subscription for the bond issue crossed 6,000 crore on the second day with financial institutions, mutual funds, corporates and high net worth individuals putting in the rest. Money market dealers said returns...

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Axis Bank launches income tax payment facility at ATMs

MUMBAI: Private sector Axis Bank today announced the launch of the facility to pay income tax at ATMs. This facility, initially, will be available at select ATMs in the major centres and will shortly be made available at all 5,600-plus ATMs across the country, the bank said in a press release issued here. Axis Bank customers holding ATM/debit cards can use this facility to pay income tax/other direct taxes using Axis Bank ATMs . The Central Board of Direct Taxes (CBDT), as a part of its e-Governance initiative to provide more convenience to...

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Deutsche Bank top recruiter at IIM-A with Rs 1.5-crore offer

AHMEDABAD: Deutsche Bank is the top paymaster at this year’s campus recruitment at the Indian Institute of Management, Ahmedabad, keeping a record it set in 2010. The investment banking unit will pay the equivalent of Rs 1.3-1.5 crore ($285,000-330,000) as annual salary to a student it is hiring for its London office , campus sources said. The sum includes an annual bonus as well a variable that will depend on the individual’s performance and market conditions. Last year, Deutsche Bank was reputed to have topped the pay charts with a package...

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Indian Overseas Bank looks for opening in Africa

NEW DELHI: Indian Overseas Bank is eyeing entry into Africa and convert its representative offices in Dubai and China into branches as part of its efforts to expand foreign operations. "We are looking for some openings in Africa ... we have just initiated the process," Indian Overseas Bank CMD Mr. M Narendra said. The bank is also looking at converting its representative offices in Guangzhou, China, and Dubai to full service branches. The bank would seek regulatory approval from the regulator concerned for the same, added Narendra. The Chennai-based...

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Stop re-circulation of soiled notes: RBI to banks

Press Trust of India / Sambalpur (orissa) February 24, 2011, 20:54 IST Soiled notes may soon be a thing of past as the Reserve Bank of India (RBI) has asked all bank branches handling large amounts of currency to put in place note-sorting machines by the end of next month with a view to halting re-circulation of unfit currency notes. "The Reserve Bank is committed to a 'clean note' policy. RBI exchanges soiled notes for clean ones, and mutilated notes for new ones subject to certain conditions," central bank Governor D Subbarao said at the Convocation...

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Vijaya Bank to raise Rs 368 cr via preferential allotment

Vijaya Bank is planning to raise Rs 368 crore through preferential allotment of equity shares. In a statement to Bombay Stock Exchange, the bank said that its Board of Directors has resolved that an extraordinary general meeting will be held on March 22 for their approval for preferential allotment of equity shares at Rs 10 each at Rs 84 per share to the Government of India for Rs 368 crore. Earlier this month, the ministry of finance has given its nod to subscribe to 3.91 crore additional equity capital of the bank. Source: Business Stand...

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Dhanlaxmi Bank ups deposit rates by up to 3%

Press Trust of India / Mumbai February 24, 2011, 14:51 IST South-based Dhanlaxmi Bank today increased interest rates on term deposits by up to 3% depending on maturities. The maximum increase of 3% has been made for short-term deposits having a maturity of 46 to 90 days, where depositors will earn an interest of 9% per annum, the bank said in a release here. "The hike in interest rates is in line with market trends and the emerging market interest rate scenario," the bank's head of Branch Banking and NRI Business, Salil Datar, was quoted as saying...

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SBI withdraws from CD market

Banks heave a sign of relief as short-term rates will likely fall State Bank of India (SBI) — the nation’s largest bank — has decided to withdraw from the certificate of deposit (CD) market, a move that has left most market players relieved as they were paying more than 10 per cent for even three-month CDs. Short-term rates, which have moved up 200 bps in the last four months, are now expected to come down. According to sources, SBI communicated to its dealers on Thursday that it is withdrawing from the CD market and will not offer any special...

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HDFC Bank raises key lending rate by 45 bps

Reuters / Mumbai February 24, 2011, 10:02 IST HDFC Bank Ltd, the country's third-largest lender, has raised its key lending rate, or the base rate, by 45 basis points with effect from Thursday. The bank's new base rate will be at 8.20% per annum, HDFC Bank said in a statement on its website late on Wednesday. ICICI Bank, India's No. 2 lender, said on Wednesday the bank would raise its base rate by 50 basis points to 8.75% per annum with effect from Thursday.The Reserve Bank of India has raised rates seven times since mid-March last year to rein...

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SBI plans merger of 5 associate banks

Country's largest lender State Bank of India (SBI) plans consolidation of remaining 5 associate banks with itself in the next 12-18 months."... the bank (SBI) envisages consolidation of all subsidiary banks with SBI within a period of 12 to 18 months," Finance Ministry informed the Standing Committee on Finance. This was in response to a query on the stance of the government on merging the subsidiaries with SBI raised by the Parliamentary panel headed by former Finance Minister Yashwant Sinha. In the submission to the panel, SBI Chairman O P Bhatt...

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Kotak Bank opens 300th branch, plans 500 by 2012

Press Trust of India / Bangalore February 23, 2011, 19:19 IST Private sector lender Kotak Mahindra Bank today launched its' 300th branch and announced plans to reach the 500th branch mark by 2012 as part of its growth strategy to "deepen and broaden its network". The launch of the branch comes at a time when the Kotak Group is celebrating its 25th anniversary and there are plans to keep the momentum going by reaching the 500th branch mark by 2012, said bank's Executive Vice-Chairman and Managing Director Uday Kotak. The bank now has 14 branches...

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ICICI, HDFC Bank hike lending rates by up to 50 bps

Press Trust of India / Mumbai February 23, 2011, 19:38 IST Country's two leading private sector lenders ICICI Bank and HDFC Bank today increased their lending rates by up to 50 basis points (bps), making home, auto and commercial loans dearer. ICICI Bank also increased deposit rates by up to 50 bps across various maturities. In a release, ICICI Bank said it has hiked base rate, the minimum lending rate, by 50 bps or 0.5% to 8.25%, effective from tomorrow. For existing customers, it increased the benchmark prime lending rate by a similar percentage.HDFC...

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Rates on 90-day deposits touch 26-month high

MUMBAI: Interest rates on 90-day certificate of deposits touched a 26-month high as banks were seen rushing to build up their deposit base, which is very common towards the end of a financial year. Certificate of deposits are shortterm deposits raised by banks from fellow banks and such deposits are not offered to individual depositors. Unlike the regular term deposit , these can be traded in the secondary market by banks. Short-term rates have continued their upwards bias after the Reserve Bank of India raised key policy rates by 25 basis points...

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UCO SUNSHINE RECURRING DEPOSIT SCHEME with Complimentary Personal Accidental Death Insurance Cover

UCO Bank has introduced UCO Sunshine Recurring Deposit Scheme with Complimentary Personal Accidental Death Insurance Cover. Deposit Period : 12/24/36/48/60 months Amount of deposit : Minimum Monthly Installment: Rs. 500/- & In Multiples of Rs.500/- Maximum Monthly Installment: Rs. 1 Lac  Rate of Interest: As per Normal Term Deposit Scheme (At present 9% from 18.2.2011) Foreclosure Interest: Installments between 1 and up to 6 months (Savings Bank Rate) : Above 6 months (Foreclosure rate as per Normal Term Deposit with...

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