Pandit’s payouts climb to $200 m

Citigroup chief executive officer Vikram Pandit, who took a $1 salary after his bank received the most taxpayer assistance of any US lender, is poised to collect $80 million from other payments and awards that may eventually total more than $200 million. Pandit, 54, will get the $80 million from Citigroup’s purchase of his Old Lane Partners LP hedge fund on Saturday, according to regulatory filings. The deal brought him to the lender in July 2007. JPMorgan Chase, which remained profitable through the financial crisis, has disclosed about $90 million...

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Hope RBI will take break from rate hike spree: Parekh

Mumbai: HDFC Chairman Deepak Parekh has said he hopes the RBI would maintain status quo on rates during its monetary policy review scheduled for later this month to maintain a balance between growth and inflation. "I don't think the Reserve Bank will look at another interest rate hike because we need to have a balance between growth and inflation," he told reporters on the sidelines of an event here last night. "I hope we get a breather before the next round of hike in interest rate... I hope the Governor of RBI does not do anything (hike rates)...

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Basel Committee unveils new disclosure norms for banks

Geneva: The Basel Committee on Banking Supervision, which is overseeing global reforms in the sector, unveiled new guidelines that would require lenders to publish all details on their pay policies, particularly bonuses and performance incentives. In the wake of global outcry against 'obscene' salaries and bonuses received by leading bankers, who caused the global financial crisis in 2008, the Committee has stipulated stringent capital adequacy requirements. It has come down heavily on the salary benefits that fuelled bankers to take such huge...

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THDC receives $648 millionn loan from World Bank

NEW DELHI: State run THDC India Ltd has received loan of $648 million (about Rs 2,886 crore) from the World Bank for its project in Uttrakhand. With the loan, the 444-mw Vishnugad Pipalkoti hydroelectric project has achieved full financial closure, the company said in a statement. The company has recently received environment ministry's nod for diversion of 80 hectare of forest land for the project that is expected to be completed by 2016. THDC has a portfolio of hydro projects in Uttarakhand, Maharashtra and Bhutan with aggregate capacity of...

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Haryana Power Utilities to buy power by banking arrangements

CHANDIGARH: For the first time, Haryana Power Utilities have tied up to buy power through banking and return banking arrangements of over 1,000 megawatt. "The Utilities are all set to create a new record of not buying electricity through tender route during the ongoing paddy season," a spokesman for the Uttar Haryana Bijli Vitran Nigam ( UHBVN ) said here today. He said it was for the first time about 1000 to 1100 MW power has been tied-up through banking and return banking arrangements. On an average, the State is receiving back about 500...

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Report fraud cases of Rs 1 cr and above to CBI: RBI to banks

In order to check banking frauds, the Reserve Bank of India (RBI) today asked public sector lenders to promptly report cases of cheating involving Rs 1 crore and above to the CBI, and of the lesser amount to the police. "Incidence of frauds, dacoities, robberies, etc, in banks is a matter of concern," the RBI said, issuing guidelines for reporting frauds. Private and foreign banks have been asked to report cases of fraud involving an amount of Rs 1 lakh and above to the police. Fraud by employees exceeding Rs 10,000 should also be reported to the...

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ICICI Bank, 2 others raise rates

Three major lenders, including country's biggest private sector bank ICICI Bank, today announced an increase of 25 basis points, or 0.25 per cent, in lending rates, making auto, home and corporate loans more expensive for borrowers. The rate hike will increase the cost for those who had taken advances on floating rate of interest. Besides ICICI Bank, state-owned Indian Overseas Bank and Dena Bank have also announced increase in their lending rates by similar margin. The decision to hike lending comes within weeks of the Reserve Bank of India (RBI)...

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SBI opens 21 new branches, 101 new ATMs and 400 green channel counters

LUCKNOW: Spreading its wings further and taking financial inclusion deeper into the state, the State Bank of India opened 21 new branches on Friday. Besides, it also opened 101 new ATMs and 400 green channel counters. Chief General Manager, SBI, Abhay Kumar Singh said that of the new branches 13 are in semi urban and rural areas emphasizing the banks reach across metros to small villages. SBI also opened its 700th customer service point in unbanked villages under the financial inclusion plan of the government. Singh said that the bank already...

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ICICI Bank gives 38% return on Gaddafi fund investment

New Delhi: Libyan dictator Muammar Gaddafi has suffered huge losses on various funds despite paying hefty fees, but his investment in ICICI Bank gave impressive returns, a new leaked document showed today. ICICI Bank is the single Indian company in the investment portfolio of Gaddafi-controlled sovereign wealth fund Libyan Investment Authority (LIA), whose assets totalled about USD 64.2 billion as of September 30, 2010. The portfolio has been disclosed in a new leaked internal document, the Management Information Report of the LIA, which was published...

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HSBC to cut 700 UK retail banking jobs

HSBC Holdings is to cut about 700 jobs in its UK retail banking arm, people familiar with the matter said on Thursday. The job cuts will include about 460 advisory positions across its UK branches, one of the sources said. The move comes prior to the implementation of the Retail Distribution Review rules, expected in January 2013, that will affect how UK banks offer advice. HSBC declined to comment. The bank employs 55,000 staff in the UK.Rival Lloyds said on Thursday it was cutting 15,000 jobs. Source: Business Stand...

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IndusInd to grow credit card portfolio 4-fold in 3 years

Private lender IndusInd Bank aims to grow its credit card portfolio four-fold to Rs 800-900 crore in the next three years. The bank also expects the business it acquired recently to turn profitable in the next 12 months. “We are going to grow this business. We did not acquire the business to keep it at this level. Today, it is a Rs 200-225-crore portfolio and we will see a four-fold increase in size in the next three years,” Managing Director and Chief Executive Officer Romesh Sobti told Business Standard. The credit cards portfolio, however, will...

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RBI eases norms on share issue against capital goods import

The Reserve Bank of India (RBI) on Thursday said equity and preference shares could be issued to overseas parties, in cases dealt by the Foreign Investment Promotion Board (FIPB), for money payable for importing capital goods and pre-operative expenses. Foreign direct investment (FDI) in activities not covered under the automatic route requires prior approval of the government. Such proposals are considered by FIPB. The existing norms for issuing equity and preference shares under the government route had been reviewed, RBI said in a communication...

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Current account deficit dips in fourth quarter

The robust growth in exports and improved net invisible surplus has resulted in India's current account deficit (CAD) declining to $5.4 billion in the quarter ended March from $12.8 billion a year ago. The CAD, in absolute terms, rose to $44.3 billion in 2010-11 from $38.4 billion in 2009-10. However, as a percentage, it declined to 2.6 per cent of the gross domestic product (GDP) in 2010-11 from 2.8 per cent in 2009-10, according to the Reserve Bank of India (RBI) data. The trade deficit moderated to $29.9 billion in the January-March period from...

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RBI extends time limit for FCCB buyback

The Reserve Bank of India (RBI) today extended the time limit for buyback of Foreign Currency Convertible Bonds (FCCBs) issued by companies, by nine months to March 31, 2012 but has reduced the discount slabs for the buyback. The earlier deadline for buyback of FCCBs was set for June 30, 2011. Indian firms can now buyback the FCCBs at a minimum discount of 8% on the book value utilising their foreign currency funds under the automatic route, as against 15% earlier, the RBI said in a notification. Under the approval route, Indian companies have...

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2nd PAN mandatory for Rs 5 lakh and above jewellery purchases

New Delhi: Be ready to mandatorily flash your PAN card, for any purchase of jewellery worth Rs five lakh or more from tomorrow -- a move that would help the tax department keep an eye on such high value transactions. As per the amendments in the income tax rules, coming into effect from July 1, quoting PAN (Permanent Account Number) will be mandatory for any payment of Rs five lakh or more for purchase of bullion or jewellery. High-value purchase of jewellery, among valuables, have often been feared to be a much favoured route for circulation of...

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IOB raises base rate to 10.25%

Chennai: Public sector Indian Overseas Bank has raised its base rate from 10 per cent to 10.25 per cent with effect from Friday. The city-headquartered company also raised the Bench Mark Prime Lending rate from 14.25 per cent to 14.50 per cent with effect from July one, 2011, a bank statement here said. Source: Financial Expr...

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Credit up 20.9%, deposits rise 17.7% in 12 mths to mid-June

Mumbai: Credit offtake from banks grew by 20.9 per cent to over Rs 41 lakh crore during the one-year period ended June 17, 2011, indicating an upswing in industrial activity. According to the RBI data, credit offtake during the period stood at Rs 41.23 lakh crore against Rs 34.10 lakh crore in the same period of the previous year. Meanwhile, deposits went up to over Rs 54.94 lakh crore till mid-June this year against Rs 46.64 lakh crore as on June 18, 2010. This is a rise of over 17.7 per cent on an annual basis. In the annual monetary policy...

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RBI OK's shares issue under FDI scheme

Mumbai: The Reserve Bank of India said it has decided to permit the issuance of equity, preference shares under the government route of the foreign direct investment scheme for some categories. "Payments should be made directly by the foreign investor to the company. Payments made through third parties citing the absence of a bank account or similar such reasons will not be eligible for issuance of shares towards FDI," the notification said. RBI notification Foreign Direct Investment (FDI) in India - Issue of equity shares under the FDI Scheme...

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