Banks will have to resolve ATM complaints within seven days

MUMBAI: The Reserve Bank of India (RBI) has reduced the time that banks take to resolve customers' complaints regarding ATM transactions to seven working days from 12 working days. Banks, which fail to resolve complaints within seven working days, will have to pay customers 100 per day as compensation. The new guideline will be effective from July 1 this year. The move to resolve the dispute has come as a major relief to millions of customers who are increasingly using ATMs to withdraw cash. While issuing this directive, RBI has also said customers...

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Central Bank of India eyes overseas expansion

Public sector Central Bank of India today said it was planning overseas expansion with an aim to have a strong presence in various geographies. "We have applied for approval from Reserve Bank for operations in Bhutan, Sri Lanka, Nairobi and also in Dubai... ", the bank Chairman and Managing Director S Sridhar, who would retire on May 31, said here. Stating that the bank would look for a joint venture partnership with a local company having a strong presence, he said, "in Mozambique, we have a tie-up with a company which is a conglomerate. They...

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ICICI Bank likely to sell off its shares in VA Tech Wabag in few months

CHENNAI: Country's largest private sector lender ICICI Bank, which holds a minimal share in water treatment player VA Tech Wabag Ltd , is likely to sell off its shares over the next few months, a top company official today said. ICICI Bank through its firm ICICI Venture currently has a minimal share on the Chennai-headquartered VA Tech Wabag which reported top line revenues of Rs 509.9 crore as of March this year. "Today ICICI Bank has less than five per cent in the company's share," VA Tech Wabag Managing Director Rajiv Mittal told reporters...

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Development Credit Bank hikes its base rate, BPLR by 0.50% each

MUMBAI: Private sector Development Credit Bank ( DCB ), today said that it has upped both its base rate and benchmark prime lending rate (BPLR) by 0.50 per cent each. Accordingly, its base rate now stands enhanced at 10 per cent from the earlier 9.50 per cent, a press release issued here stated. The bank's BPLR stands raised at 17.25 per cent from the earlier 16.75 per cent. The revised rates will be with effect from June 1, the release said. Source: EconomicTi...

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NBCC effect, norms for I-bankers to be relaxed

NEW DELHI: Investment bankers have sought dilution of norms governing their appointment for managing the share sales in state-controlled firms, saying the guidelines announced last month would effectively debar all of them. The government had banned bankers managing public sector floats from simultaneously handling offers of private firms in the same sector to avoid any conflict of interest. It had also restrained the bankers from advising any company in similar areas until the state-owned enterprise's disinvestment process was complete. The...

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SBI to submit revised proposal on rights issue in June

Country's biggest lender State Bank of India (SBI) today said it will submit the revised proposal to the government for Rs 20,000 crore rights issue next month. The bank will file the revised proposal next month, SBI Chairman Pratip Chaudhuri said on the sidelines of an event. The public sector lender is hopeful of a rights issues this fiscal. Earlier this month, Chaudhuri had said: "The government is committed to well capitalising SBI. So in that context, we are quite hopeful that the rights issue contribution will come through during this year." Tier-I...

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Canara Bank net profit up 34%

Mumbai: Leading public sector lender Canara Bank today reported a 34.48 per cent rise in its consolidated net profit to Rs 4,034.19 crore for the year-ended March 31, 2011. The bank had a net profit of Rs 2,999.7 crore in the corresponding period of the previous year, it said in a filing on the Bombay Stock Exchange (BSE). Total income of the Bangalore-headquartered bank on a consolidated basis improved 18.92 per cent to Rs 25,792.6 crore as at March 2011, as against Rs 21,687.89 crore in the year-ago period. Total deposits during the period grew...

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DK Mehrotra appointed acting chairman of LIC

The government has appointed Life Insurance Corporation of India's (LIC) Managing Director DK Mehrotra as the acting chairman of the country's largest financial institution. "DK Mehrotra of the LIC, will in addition to his duties as managing director, hold current charge of the post of the chairman of the corporation for a period of three months or till further orders," LIC said in a statement. The government had given Rakesh Singh, additional secretary in Department of Financial Services in the Finance Ministry, additional charge as the head of...

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BoI to raise up to Rs 7,700 cr from fresh equity

State-owned Bank of India (BoI) today said it would raise funds by issuing up to 18 crore fresh shares through public offer or private placement. At the current market price, the bank could raise about Rs 7,700 crore from the market. The board of the bank at its meeting held today has approved the proposal to raise capital by issue up to 18,00,00,000 fresh equity shares for Rs 10 each at an appropriate premium, BoI said in a filing to the Bombay Stock Exchange (BSE). The fund could be raised by any mode decided at an appropriate time like right...

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High key rates must to prevent asset bubbles: StanChart

Mumbai: The Reserve Bank of India (RBI) should keep its key rates high not just to fight inflation but also to prevent the asset bubbles formation, a top economist from Standard Chartered said today. "I think the RBI needs to make sure that the monetary policy is tight not just to address the immediate inflation challenge but (also) to prevent bubbles and inflation problems being seen in the future," the bank's Chief Economist and Group Head of Global Research, Gerard Lyons, told reporters here. Lyons also alluded to the days leading up to the...

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UK co in tailspin as RBI axes contract post-fraud

London: The expected loss of a major contract with the Reserve Bank of India has forced the world's largest bank note printer De La Rue to cut jobs, merge divisions and shake up its supply chain in a bid to return to financial health. Hampshire-based De La Rue, which produces over 150 currencies around the world, faced production difficulties after employees allegedly falsified paper test certificates for the Reserve Bank of India (RBI), which has been its biggest client. The company has refused to name the client, but said the Serious Fraud Office,...

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IOB-American Express launches premium credit cards

Chennai: Public sector Indian Overseas Bank today launched premium credit cards targeting elite customers in association with American Express. As per the association, IOB and American Express would jointly promote the cards that would feature logo's of both the companies, IOB CMD M Narendra told reporters here. "It is a momentous occasion for us... as two of the world's (banking) giants are coming together. It is a unique programme for IOB, who is in its platinum jubilee year. With this offering, we are becoming more and more customer centric",...

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Locked out of car, Indian Bank CMD slams door on regional head

New Delhi: Being locked out with car keys inside may be a common mistake, but a senior executive of a public sector unit (PSU) bank could pay with his job for it — for the person left stranded was his boss.The Mumbai Zonal Manager of Indian Bank, Banabihari Panda, has been suspended for failing to provide “minimum basic courtesies” to the bank’s Chairman and Managing Director (CMD) T M Bhasin on his arrival at Mumbai airport from Chennai last Thursday night. The charge faced by Panda, who holds the rank of General Manager, is that he kept the CMD...

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Bag containing Rs 26 lakh snatched from bank staffers in Mumbai

Mumbai, May 19, 2011 Police are on the lookout for three people, who snatched a bag containing Rs 26 lakh from two senior staffers of the public sector UCO Bank in the city yesterday. The incident occurred around 1430 hrs yesterday when the staffers were waiting to catch a taxi on Yusuf Meharali Road to go to their Nariman Point branch when they were waylaid and the bag snatched by three persons. The money had been collected from the Samuel Street branch and was being taken to the main branch at Nariman Point in south Mumbai, police said. No...

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UCO Bank revises dividend to Rs.3

The Board of Directors of UCO Bank recommended for increase of dividend from Rs. 2/- per equity share to Rs. 3/-per equity share. Consequent upon the change in the proposed dividend to Rs. 3/- per equity share. The stock closed the day at Rs.95.30, down by Rs.2.35 or 2.41%. The stock hit an intraday high of Rs.98.25 and low of Rs.94.10. The total traded quantity was 3.29 lakhs compared to 2 week average of 4.93 lakhs. Source: Equity Bu...

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Aggressive mergers to take a back seat at SBI under new chief Pratip Chaudhuri

MUMBAI: State Bank of India Chairman Pratip Chaudhuri's voluntary baptism by fire was the first step in his journey to make the 205-year-old behemoth enter the top-50 in global rankings without future earnings shocks. Prudence and caution will take precedence over aggression and innovation. Mergers and acquisitions, including those of associate banks, will be on the back burner as the nation's largest lender sets its house in order with higher provisions to smoothen out bumps in the form of bad loans and pension liabilities. Chaudhuri said investors...

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PNB to acquire up to 33% in MetLife India

MUMBAI: Punjab National Bank is close to buying as much as 33% stake in MetLife India that will boost fee income for the staterun bank and provide the US insurer with the second-best financial distribution platform in the country. "PNB is in talks to pick up to 33% stake in MetLife," said a person familiar with the negotiations. "The deal may be finalised in the next few days," he added. Four more people familiar with the negotiations said the discussions on valuations are continuing. There is no certainty that the transaction will take place....

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LIC scores best in claims settlement during 2010-11

At a time when customer service and satisfaction is becoming the key to success for life insurance companies, the claim repudiation ratio (in case of death claims) has improved over the last financial year. According to data from company sources, the Life Insurance Corporation of India (LIC) still remains the benchmark when it comes to settling death claims. However, major private players are also fast catching up. A repudation ratio is a measure of claims rejected. During 2010-11, LIC improved its repudiation ratio for death claims to 1.09 per...

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Non-banking finance companies to accept ‘paper gold’ portfolios as security

MUMBAI: Several non-banking finance companies have started disbursing loans on the back of gold exchange traded funds and e-gold certificates, taken as lien on the borrowed amount. Low know-your-client requirements and high-purity levels in gold are prompting lenders to accept 'paper gold' portfolios as security. Non-bank lenders such as India Infoline , Reliance Commercial and Religare Enterprises , among others, have begun lending money on gold ETFs and gold savings certificates issued by mutual funds. According to fund industry sources, Muthoot...

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73,000 villages to be brought under banking net by 2012: FM

Finance Minister Pranab Mukherjee today said 73,000 villages with a population of over 2,000 persons will be brought under formal banking network by March 2012 as the government aims at inclusive growth in the country. "The target (of covering such villages) for 2010-11 has been completed and I am quite confident the balance will be fulfilled by March 2012," he said, adding the goal of inclusive growth cannot be achieved without financial inclusion. Mukherjee was speaking at a function of Central Bank of India here. During 2010-11 banks covered...

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DHFL hikes lending rate by 50 bps to 17.5 per cent

Mumbai: Mortgage lender Dewan Housing Finance Monday hiked its retail prime lending rate by 50 bps to 17.5 per cent, in line with its peers. The new rate will be effective in retrospect from May 20, a release issued here by the company said, while a spokesperson added that the new rate stands at 17.5 per cent. Other lenders like HDFC Limited and State Bank of India, among others have hiked their lending rates following the Reserve Bank of India's May 3 announcement to up its key rates to tame the runaway headline inflation. Source: Financial ...

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Indian Bank tops RoA chart of PSU banks

New Delhi: State-owned Indian Bank has fared better among the PSU banks by recording highest returns on assets for the financial year ended March, 2011, according to an analysis of the annual results. The Chennai based lender clocked an Return on Assets (RoA) of 1.53 per cent for 2010-11, highest among 21 public sector banks. The lowest RoA was generated by Bank of Maharashtra at 0.47 per cent. RoA is an indicator of how profitable a company is relative to its total assets. It gives an idea of the efficiency of the management in using its assets...

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