Corp Bank to open 200 branches, hire 1,200

State-run lender Corporation Bank said it would recruit 1,200 people this fiscal with an aim to achieve its target of adding 200 branches to its network. "This year, we will hire 1,200 people as we are planning to open 200 branches," the bank's Chairman and Managing Director Ramnath Pradeep said on the sidelines of a conference last evening. "The process [of opening branches] is on. It [the expansion] will be across India, particularly in the northern states," he said, adding that the bank will comply with the Reserve Bank's directive of opening...

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Urban co-op banks allowed to lend to self help groups

The Reserve Bank of India (RBI) today allowed urban cooperative banks (UCBs) to give loans to self help groups (SHGs), a move that will help in promoting financial inclusion in the country. "With a view to further expanding the outreach of UCBs and opening an additional channel for promoting financial inclusion, it has been decided to allow UCBs to lend to SHGs and Joint Liability Groups (JLGs)," an RBI notification said. The central bank in its recent monetary policy had proposed to allow UCBs to lend to the two segments. Lending to SHGs and JLGs...

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Banks to cover 350,000 villages by 2013: RBI

Around 350,000 villages across India would secure access to financial services offered by banks in the next two financial years, according to a plan banks have given to the Reserve Bank of India (RBI). RBI has asked banks to ensure that 223,473 villages have access to basic financial services by March 2012. “Banks are still engaged in ecosystem development. Once that is done, banks said they would be able to scale up,” said K C Chakrabarty, deputy governor, RBI. Banks have been asked to include their financial inclusion performance when they evaluate...

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Govt to give 8% interest on PPFs closed between May 05-Dec 10

New Delhi: The Government today said that PPF accounts of Hindu Undivided Families (HUFs) which were closed down between May 2005 and December 7 last year would get 8 per cent interest on the deposits. The Finance Ministry has issued the clarification in view of the doubts raised with regard to payment of interest on Public Provident Fund (PPF) accounts held by the HUFs beyond the maturity period. “...it has been decided that interest at PPF rate would be paid on those PPF (HUF) accounts which had attained the maturity after May 13, 2005, but...

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RBI cancels registration of two NBFCs

MUMBAI: The Reserve Bank of India (RBI) has cancelled registration of S K Capsec Pvt Ltd , and Sansun Leasing and Finance Private Ltd for carrying on the business of a non-banking financial institution after their exit from the business. The RBI on April 19, 2011 cancelled the certificate of registation to S K Capsec Private Ltd for carrying on the business of a non-banking financial institution as the company has voluntarily exited from the business, the apex bank said in statement. It cancelled the certificate Sansun Leasing and Finance Private...

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PayPal to end partnership with Alibaba

Shanghai: EBay's online payment unit, PayPal, will end its year-old partnership with AliExpress, the wholesale website of Alibaba.com, from early August, PayPal said on Friday. "PayPal remains deeply committed to China by providing Chinese merchants access to a safer and easier way to sell to millions of our users all over the world. And our business is strong," Dickson Seow, director of communications for PayPal Asia Pacific, said on PayPal's blog. PayPal said its total payment volume in China was more than $4.4 billion in 2010, up 44 percent...

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Oriental Bank of Commerce to increase retail advances by 50% this fiscal

KOLKATA: Oriental Bank of Commerce plans to increase retail advances by 50% this fiscal with special emphasis on housing loan sector. The bank chairman and managing director Nagesh Pydah said the bank has selected 600 out its 1,646 branches for intense retail loan delivery. "We want organic growth in retail advances by using our excellent modern technology platform. We are targeting at the genY," Mr Pydah said. The Delhi-based bank plans to disburse Rs 4,000 crore worth of retail loans during 2011-12 while at present it has an outstanding portfolio...

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Dhanlaxmi Bank ups interest rates on select term deposits

MUMBAI: Private sector Dhanlaxmi Bank today increased interest rates on select term deposits by up to 0.50 per cent with effect from June 6. For a short-term deposit with a maturity period between 91-179 days, the bank will offer an interest rate of 7 per cent per annum, an increase of 0.50 per cent, a press release here said. Interest rates for medium-term deposits of 366 to 499 days and 501 days to two years have been increased to 9 per cent from the earlier 8.60 per cent. These rates are applicable on deposits of up to and inclusive of Rs...

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RBI directs Pvt, foreign banks to set up vigilance systems

MUMBAI: The Reserve Bank today asked private and foreign lenders to put in place a system of internal vigilance machinery and appoint a Chief of Internal Vigilance (CIV) by August to check frauds and malpractices. The directive aims at bringing in such banks in line with the practices followed by state-owned banks to check frauds. "In an endeavour to align the vigilance function in private sector and foreign banks to that of the public sector banks the existing vigilance functions of a few private sector and foreign banks were mapped with the...

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Deposit & loan surge belies slump fears

MUMBAI: Banking activity remained brisk even amid talk of slowing investments as outstanding deposits and loans in the banking system surged in the fortnight ended May 20, from a year earlier. Deposits on a year-on-year basis grew by 17.3% from May 2010 while credit rose by 22.27% from the same period a year earlier, data from the Reserve bank of India show. Deposits mobilised by all commercial banks rose just 0.6% or 3,246 crore, to Rs 53,19,225 crore for the forthnight ended May 6 from the preceding fortnight, data from the Reserve Bank of...

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Union Bank revises deposit rates for NRIs

Public sector Union Bank of India (UBI) today announced a revision of rates in both foreign currency and rupee term deposits by the non-resident Indians (NRIs). The interest rate on a majority of the deposits has been cut as part of the revision. Under the new rate structure effective from today, a five-year dollar deposit will earn an NRI 1.71% interest as against the previous 1.77, while the same for the British pound sterling will be 2.56% versus 2.65% earlier, a bank release said here. An Euro deposit between one and two years will now earn...

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IndusInd Bank to add 150 branches in FY 12

MUMBAI: Private sector lender IndusInd Bank today said it plans to open nearly 150 branches in the country during FY 12 to take its total network strength to over 450 branches. "IndusInd Bank plans to touch 450 branches in India by March 2012," a release issued by the bank, after the inauguration of its 301st branch in central Mumbai's Prabhadevi, said. During the current fiscal, the bank will be focussing on distribution, branch expansion and providing universal banking solutions, the release said. "The bank is stepping up its branch expansion...

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LIC launches new health policy

The country’s largest life insurer, Life Insurance Corporation of India (LIC), today launched a new health insurance plan, Jeevan Arogya. The policy, to be available from June 1, offers comprehensive hospitalisation benefits for the whole family of the principal insured. “A unique feature of this plan is that it also offers to cover the parents in-law of the principal insured, besides spouse, minor children and parents. There is a provision for inducting additional members or removal of existing members in case of any change in family circumstances...

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IDFC to wind up project development business

Infrastructure Development Finance Corporation Ltd (IDFC), is set to wind up IDFC Projects, its projects development business. The business, into which the company had forayed in 2007, had recorded losses. Currently, the subsidiary company accounts for two projects — a Rs 5,000-crore power project in Chhattisgarh and a Rs 1,000-crore road project in Gujarat. IDFC Projects owns 74 per cent stake in both the projects and the company's total exposure in these projects is estimated at over Rs 400 crore. According to company sources, IDFC Projects would...

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IDBI Bank mulls share sale to boost capital base

State-run lender IDBI Bank may consider raising funds through a follow-on share sale in the current financial year to boost its capital base, a senior official told Reuters on Tuesday, joining other lenders raising money to boost growth and meet rising credit needs. "We are looking at all the possibilities, and, if the timing is right, we may think of raising some equity", said RK Bansal, executive director, without disclosing the size. "At present, government shareholding is at 65% so we do have some leeway. If at all we raise it, it may be an...

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Don't `bank' on B-school graduates alone: RBI Deputy Guv

Mumbai: Reserve Bank Deputy Governor K C Chakrabarty questioned lenders' fascination with hiring B-school graduates and said that with concepts like financial inclusion being the driving theme, the banking sector needs personnel connected to the ground realities. "When financial inclusion is the major concern of Indian banking, don't we need people who would be closer to the ground realities of the countryside? How many of these people recruited through B-schools will have empathy towards the poorest of the poor? Why should we be rushing to the...

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Banks' NPAs may rise due to rate hikes : Central Bank Chairman S Sridhar

MUMBAI: Central Bank of India's Chairman and Managing Director S Sridhar today said non performing assets (NPAs) for the industry are likely to increase, as some smaller companies that had borrowed in a low rates regime, find it difficult to service their loans due to hike in rates. "Some increase in NPAs cannot be ruled out, in my view across the industry," he said, adding that different banks would adopt different strategies to deal with the problem. The stress will emanate from smaller accounts, which "are not able to bear the increased cost...

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Bank of India raises deposit rate by up to 2.5 per cent

MUMBAI: State-owned Bank of India (BoI) today raised fixed deposit rates on various maturities by up to 2.5 per cent. The bank increased the interest rate by 250 basis points (2.5 per cent) to 5.50 per cent for term deposits of 31-45 days' tenor. The deposit rate increase is the maximum in this slab, the bank informed the Bombay Stock Exchange (BSE). For fixed deposits with a tenor between 15-30 days, the new interest rate will be 4.50 per cent against the existing 2.75 per cent, while 46-90 days fixed deposits will attract an interest rate of...

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SKS Microfinance to levy 1% processing fee

MUMBAI: SKS Microfinance today said it will charge a processing fee of 1 per cent of the amount on all micro loans offered, a move that would provide greater transparency in operation. The credit shield insurance premium will be collected from the borrowers on the actual basis without any administrative charges, SKS Microfinance informed the Bombay Stock Exchange. The new charges would be levied from June 1, it said. This is in accordance with the RBI guideline earlier this month. As per the guideline, an MFI can levy only three charges ---...

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RBI went against majority view of lower hike to tame inflation

Mumbai: Rejecting the majority view of lower increase in key policy rates, RBI opted for 50 basis points hike in its short-term lending rates to contain inflationary expectations. “While four members of the Committee were of the view that the repo and reverse repo rates be raised by 25 basis points each, two members suggested 50 basis points increase each in the repo rate and the reverse repo rate”, according to minutes of the technical advisory committee meeting held on April 27, 2011. Besides, one member was of the view that statutory liquidity...

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LIC to offer UIDs to 40 mn policyholders this year

Unique Identification Authority of India’s (UIDAI) plan to offer a unique identification number (UID) to every resident Indian is slated to get a fillip, with the country’s largest life insurer — Life Insurance Corporation of India (LIC) — saying it is ready to offer unique identification cards to its policyholders. About a year ago, LIC had signed an agreement with UIDAI to share its database of over 200 million policyholders with the government agency and issue biometric cards to these policyholders. LIC was the first institutional partner in...

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RBS exec suspects UK to start selling stake in 2012

Britain could start selling its 83% stake in Royal Bank of Scotland (RBS) in 2012, a senior company executive said on Monday. "I suspect it will be in 2012," RBS Asia Pacific Chief Executive John McCormick told Reuters in an interview, adding the move would likely depend on the bank's share price. The Sunday Telegraph, citing sources close to the process, reported earlier in the month that Britain may start selling its stake as early as the first half of 2012, targeted at institutional investors and sovereign wealth funds from the Middle East and...

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Intel to sell products to boost RBI's fin inclusion

Global chip maker Intel sees big opportunity in RBI's financial inclusion programme and is all set to launch its Universal Handheld Device (UHD) for banking operations by the end of this year, according to a top company executive. "The UHD reference design has been developed in India for Indian market. We are taking to companies, who are willing take it up with their brand name," said R Ravichandran, director (sales), Intel South Asia. UHD is a compact instrument with seven inch screen and a biometric finger print readers along with a thermal printer,...

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