Banks, Unique Identification Authority to deploy 14 lakh micro ATMs across the country

MUMBAI: The Unique Identification Authority of India (UIDAI) is working with the Indian Banks' Association to create a network of 14 lakh micro ATMs across the country. While the banks will authorize the transaction, the authentication will be done by UIDAI by biometric association with its database. The UIDAI is also considering giving unbanked citizens the option to receive a pre-paid payment card issued by banks which can be used for channeling payments from government schemes, including National Rural Employment Guarantee Act. "The plan is...

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RBI asks old private banks to improve governance

MUMBAI: The Reserve Bank of India has asked select old generation private sector banks to improve governance standards, a person familiar with the matter told ET. "RBI has asked banks to improve governance structure to ensure that there is minimum intervention of the board in the day-to-day operation," the person said. Discussion on the issue of governance between the banking regulator and select bank managements took place at the central bank's quarterly business review meeting, bankers said. The advisory comes in the wake of an ongoing conflict...

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Rs 10 plastic notes to be introduced on trial basis: Govt

New Delhi: The government said it has decided to introduce 100 crore polymer bank notes in denomination of Rs 10 on trial basis. It will be on field trial basis at five locations in the country, Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha. "A final decision will be taken depending on the results of the field trial," he said. The Reserve Bank had floated a global tender for introduction of 100 crore plastic currency in 2009. The polymer notes were first introduced in Australia to safeguard against counterfeiting...

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BoI raises $200 mn to expand foreign operations

State-run lender Bank of India today said it had raised $200 million to expand its foreign operations. The city-headquartered bank has raised the money thorough a syndicated foreign currency loan for three years at an "attractive rate of interest", a statement issued here said. "The proceeds will be utilised for expansion at the foreign operations," it added.However, it did not specify exact plans on the international expansion front. The bank at present has 24 foreign branches and five representative offices spread across 18 countries across the...

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In crises, banks may replenish ATMs by RBI borrowings

The Reserve Bank of India on Friday said banks can now replenish their automated teller machines (ATMs) with cash by borrowing up to 100 million rupees at one go from the central bank if a banking sector strike or any natural calamity creates a situation where ATMs may run out of cash. "Depending upon the need for cash to be replenished in the ATMs, a bank may avail of this withdrawal facility more than once during the working hours on a particular day," the central bank said in a notification posted on its website. Source: Business Stand...

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Growth prospects for 2011-12 subdued: RBI

While retaining economic growth estimates for the current financial year at eight per cent, the Reserve Bank of India (RBI) cautioned about emerging downward risks emanating from the uncertain global environment and domestic inflationary pressures. The central bank also said global commodity prices would shape its monetary policy stance in the future. “Going ahead, global uncertainty, sticky inflation, hardening interest rates and a high base, especially for agriculture, could moderate growth in 2011-12. If global financial problems amplify and...

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No higher provisioning needed for dual-rate home loan: ICICI Bank

MUMBAI: The country's largest private sector lender ICICI Bank on Thursday said its recently launched fixed-rate home loan scheme will not attract higher provisioning mandated by the central bank for teaser loans. "Additional provisioning is not required on this product because the fixed rate offered is similar to the current floating rate on our other home loans," a bank spokesperson told PTI here on the sidelines of a Ficci-IBA banking summit. The bank had on August 19 introduced two home loan products, with interest rates fixed for the first...

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PNB to recruit 9,000 employees this fiscal

Kolkata: Punjab National Bank, which is looking at strong growth in deposits as well as credit, will recruit 9,000 employees this fiscal, a top bank official said. PNB Chairman and Managing Director K R Kamath said that out of the 9,000 staff to be hired, 3,000 would be in the officers category and the rest 6,000 would be clerks. The bank expects 22 per cent growth in deposits and 18 per cent growth in credit during 2011-12, he said. Kamath said that there are sector specific NPA concerns at the moment and rising interest rates would hurt the Small...

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UBI picks 6 banks for offshore bond: sources

State-run Union Bank of India (UBI) has picked six banks for a possible offshore bond issue, several sources with direct knowledge of the matter told Reuters. The company has chosen Bank of America Merrill Lynch, Barclays Capital, Citigroup, Deutsche Bank, Standard Chartered and HSBC for the deal, the sources said. The bank will meet investors but will hold off on issuing a bond until market conditions improve, several sources said. "We are planning to meet investors in the first week of next month, tentatively," Chairman and Managing Director...

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Public sector banks need Rs 8 lakh cr to meet capital norms

MUMBAI: Public sector banks will require additional Rs 8 lakh crore to meet new capital norms and growth requirements over the next eight years. This follows a new international agreement on bank regulation known as Basel III which RBI is looking at implementing in India. Basel III is the new regulatory framework designed to correct the deficiencies in regulations that led to the global financial crisis. "In terms of Basel III, the capital requirement, especially the equity component, is much larger. So far the capital requirement was 8% of which...

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Banking licence should be given discreetly: RBI

India needs to plug gaps in existing banking rules before it lets corporate houses open banks, the Reserve Bank chief said on Tuesday, signalling the need for tighter regulation to deter firms from practices like self-lending. Duvvuri Subbarao's comments come amid expectations that the Reserve Bank of India will soon announce initial draft guidelines for the issue of new bank licenses, a move keenly awaited by a host of Indian corporates eyeing the banking space. "As much as these prescriptions are extensive, there are still gaps," Subbarao told...

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No systemic risks from rising NPAs: RBI

Reserve Bank Deputy Governor Anand Sinha today said though bad loans are rising in the system, the central bank does not see it as a systemic risk yet. Talking to reporters on the sidelines of Ficci-IBA summit here, he said, "We don't see any systemic risks from the current trend of rising non-performing assets. But, there could be some sectoral risks going forward." The central bank has jacked up its key lending rate by a whopping 425 basis points in the past 15 months to batten down inflation and the banks have passed on the increased cost to...

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RBI favours splitting chairman, MD posts in PSU banks

Reserve Bank Governor D Subbarao today favoured bifurcation of the posts of chairman and managing director in state-run banks, saying the experience of such a split in the private sector has been satisfactory. Stating that the central bank is in discussions with the government to split the posts of the chairmen and managing directors of state-run banks, the governor said, "Given our own positive experience, as well as the global endorsement for this position [of separation of these posts]... We will discuss this issue with the government." "This...

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SBI says no plan to launch teaser loans as ICICI Bank

MUMBAI: The nation's largest lender State Bank said it has no plan to relaunch the dual/fixed rate home loan products, popularly known as teaser loans, as was done by rival ICICI Bank last week. "Right now there is no plan for that," chairman Pratip Chaudhuri told reporters on the sidelines of a Ficci-IBA conference here. Referring to the bank's earlier experience with the regulator when it had argued that its dual rate loan was not a risky teaser loan as was being made out by the RBI, Chaudhuri said, "the loan that we had earlier, in spite of...

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‘Union Chetna' to provide financial information

With a view to achieve financial literacy and create awareness, Union Bank of India has launched ‘Union Chetna' — an information window for the customers and employees. Under this initiative, informative contents would be displayed on a digital screen.  The service would be available during business hours and would contain information on various products and services of the bank along with other useful financial information, said the bank press statement.  As a pilot, Union Chetna would be available in 50 branches and 10 village knowledge...

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UCO Bank hikes term deposit rates

UCO Bank has hiked interest rates by 25-200 basis points on term deposits of various tenures effective August 22.  The hike will be applicable on deposits up to Rs 5 crore, according to a press release issued by the ba...

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Deutsche Bank staff indicted for stock scam

Seoul: A report says four employees of Deutsche Bank AG and its South Korean brokerage unit have been indicted on charges of manipulating stock prices and unfair trading. Yonhap news agency reported Sunday that the alleged improper trading triggered a sudden plunge in Seoul's benchmark stock index last November and resulted in illegal profits of about $41 million. Yonhap says prosecutors indicted three employees with the bank's Hong Kong office and a fourth with Deutsche Securities Korea. Yonhap cited the German bank as saying its South Korean...

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Corporation Bank seeks Rs 300-cr loan from govt

State-owned Corporation Bank has sought Rs 300 crore capital support from the government to fund business growth. "We have requested capital infusion, they [the government] will consider it when they will review banking sector as a whole," said Corporation Bank Chairman and Managing Director Ramanath Pradeep. "We have made a very small request for about Rs 300 crore...It will be by way of Tier I capital," he said on the sidelines of a PHD event. I don't need to raise capital at this point of time. My capital adequacy ratio is more than 14%," he...

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Muthoot Finance to open 50 branches in West Bengal

KOLKATA: Muthoot Group plans to open 50 branches in West Bengal by March 2012, taking its tally in the state to 100, the company managing director George Alexander Muthoot said. The Kochi-based gold loan financing company has a good presence in the south and the north and the company is now expanding its operation in eastern India. The company is going in for a public issue of secured, redeemable, non-convertible debentures (NCDs) to raise up to Rs 1,000 crore. The issue will open on August 23 and closes on September 5. The NCDs will offer interest...

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Corporation Bank chief refutes allegations of irregularities

New Delhi: Corporation Bank chief Ramnath Pradeep today said he will clarify his position on allegations of irregularities in loan sanctioning before the authorities and termed the charges as professional hazards. "We have prepared the report and we are submitting whatever questions have been asked by the Finance Ministry. See, these are professional hazards. We (all) are facing it and I am also facing it. I have nothing to hide," Corporation Bank Chairman and Managing Director said on the sidelines of a seminar organised by the PHD Chamber here. The...

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