RBI may consider easisng rates in Dec

Chennai: Reserve Bank of India may consider reversing its tight monetary stance as inflationary woes begin to ebb next month, a top policy adviser said on Saturday. The Reserve Bank of India (RBI) has raised interest rates 13 times since March 2010 in a bid to control inflation, which has topped 9 percent for nearly a year. However, C. Rangarajan, the Prime Minister's chief economic adviser, said headline inflation may remain high for next one-two months after which it is expected to slowdown to around 7 percent by end-March. It is expected that...

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RBI clamps down on Gujarat's Khedbrahma Nagarik Sahakari Bank

KOLKATA: The Reserve Bank of India has barred Gujarat's Khedbrahma Nagarik Sahakari Bank Ltd from accepting fresh deposits and giving loans as its financial position deteriorated. RBI said the bank shall not, without prior approval in writing from it, grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds etc. It is also temporarily barred from making payments to any one and enter into any arrangement, sell, transfer or dispose of any of its properties without RBI's prior permission. The direction...

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RBI asks banks not to honor cheques beyond 3 mths

MUMBAI: Banks should not make payment of cheques, drafts, pay orders or banker's cheques presented beyond a period of three months from the date of issue, compared with six months currently, the central bank said on Friday. The rule is effective from April 1, 2012. "Some persons are taking undue advantage of the said practice...as these instruments are being circulated in the market like cash for six months," said the Reserve Bank of India in a notification on its website. Source: EconomicTi...

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RBI asks banks not to honor cheques beyond 3 mths

MUMBAI: Banks should not make payment of cheques, drafts, pay orders or banker's cheques presented beyond a period of three months from the date of issue, compared with six months currently, the central bank said on Friday. The rule is effective from April 1, 2012. "Some persons are taking undue advantage of the said practice...as these instruments are being circulated in the market like cash for six months," said the Reserve Bank of India in a notification on its website. Source: EconomicTi...

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LIC Housing Finance to float Rs 500 crore VC fund in 2-3 months

NEW DELHI: LIC Housing Finance, subsidiary of life insurance giant LIC, today said it will float Rs 500 crore real estate venture capital fund within 2-3 months. "We have plan for Rs 500 crore (real estate venture capital fund). It is in final stage. It should happen in 2-3 months," LIC Housing Finance Chief Executive V K Sharma said here. "We have got all regulatory approvals for floating the fund," Sharma added. The company has held road shows for raising money from domestic institutions and high networth individuals, he said. Source: Econo...

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Bank of Maharashtra not to raise savings bank rate

KOLKATA: Bank of Maharashtra said it is not going to raise savings bank rate immediately as it feels savings deposits are not interest sensitive. Its chairman and managing director Anup Sankar Bhattacharya told ET: "I don't feel the urge to raise interest rate on savings deposit." Reserve Bank of India has deregulated the savings bank rate last week which has prompted small private banks like IndusInd Bank, Kotak Mahindra Bank and Yes Bank to raise the rates. Earlier, the rate was fixed at 4%. IndusInd Bank said it will offer 5.5% rate for balance...

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All banks must issue savings account pass book: RBI

MUMBAI: The Reserve Bank today directed all banks to offer the pass book facility, without any charges, to all customers with savings account. "It has come to our notice that some banks are not issuing pass books to their savings banks account holders (individuals) and only issue a computer generated account statement even when the customer desires pass book facility. "Banks are, therefore, advised to strictly adhere to the instructions...," the Reserve Bank of India (RBI) said in a notification. Under the existing rules, banks are expected to...

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SBI says may see service disruption on staff strike next week

Mumbai: A bank officers' union has served a notice to India's largest bank, the State Bank of India (SBI) for a two-day nationwide strike, which could hit customer service at its branches on Tuesday and Wednesday, the bank said. SBI, India's dominant lender, did not specify the reason for the strike called by the All India State Bank Officers Federation, but said conciliatory efforts were being made to avert it. Although the management of the bank is making efforts to extend skeleton services at the branches/offices, in the event it is not possible...

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Banks can't have more than 10 general managers for business up to Rs 1.5 lakh crore

KOLKATA: In a move that is going to freeze promotions in public sector banks at senior levels for at least the next one year, the government has proposed to limit the number of senior executives in these banks, according to the size of their business, two bank executives familiar with the development said. The finance ministry has said that banks should not have more than 10 general managers for business up to Rs 1.50 lakh crore, against the previous rule of 20 GMs for Rs 1 lakh crore. It has also suggested a 1:3:9 ratio of GM, DGM and AGM in government...

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ICICI Bank may restructure some debt: Chanda Kochhar

MUMBAI: ICICI Bank, the country's largest private sector bank, could restructure some corporate debts in the coming quarters, Chanda Kochhar, managing director and chief executive officer of the bank, said in an interview to ET NOW. "Yes, one, of course, cannot rule out the possibility of one or two large projects or corporates needing restructuring for that matter. "But I do not expect these restructurings or NPAs to come as a huge shock and the percentage that you have seen this quarter is a high percentage. I do not expect this kind of percentage...

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Fresh round of job cuts hits Asian banks

Hong Kong: Banks embarked on another round of job cuts this week in Asia, laying off hordes of staff in fixed-income, derivatives and equities businesses, hit by weak trading revenues and a slowdown in dealmaking and new issues. The first round of Asia job cuts began in earnest at the end of September as strict capital rules and a tough third quarter for trading income took their toll, hitting investment banking in particular. Asia's rapid growth had largely spared it from significant job cuts that affected other regions since the 2008 financial...

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Dhanlaxmi Bank appoints Ramesh Krishnan as Head of Treasury

Kochi, Nov. 3: Dhanlaxmi Bank has announced the appointment of Mr Ramesh Krishnan as Head of Treasury. Mr Krishnan joins Dhanlaxmi Bank from Bank of Maldives where he was the Chief Credit Officer. He was also the acting CEO of the Dhanlaxmi Bank in Male for a period of nine months. Announcing the appointment, Mr Manish Kumar, President, HR said: “Mr Krishnan brings with him in-depth knowledge in diverse areas of treasury and risk management ranging from domestic markets to foreign exchanges. His appointment will help the bank in strategically...

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IDBI Bank's Aadhaar enrolment

Chennai, Nov. 3: IDBI Bank, one of the registrars for enrolment of residents under the Aadhaar project of UIDAI, has launched its enrolment in Tamilnadu from 10 branches in Chennai for its customers, their relatives and other residents. The launch was inaugurated by Mr K.C. Jani, Executive Director, IDBI Bank Ltd, Mumbai, at the Greams Road Branch in Chennai. Simultaneously, the enrolment has commenced from IDBI Bank's branches located at Parrys Corner, Kilpauk, T. Nagar, Velacherry, Ashok Nagar, Periyar Nagar, Anna Nagar, Mogappair, Thiruvanmiyur...

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Italian banks keen on setting up branches in India

Chennai, Nov. 3: Two large Italian banks are likely to open up their branches in India to assist financially Italian businesses set up operations here, according to Mr Pierfrancesco Gaggi, Director, Associazione Bancari Italiana or the Italian Banking Association, which represents the Italian credit and financial industry in all international forums. Currently, some of the Italian banks operate in India only through representatives in various cities, he said on the sidelines of a seminar. “I cannot say when they are opening the branch. Officials...

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IRDA approves insurance joint venture by Videocon, Liberty Mutual

Mumbai, Nov. 3: The Insurance Regulatory and Development Authority has given its go ahead to the Videocon Group's general insurance joint venture with the US-based Liberty Mutual Group, said a senior IRDA official. Videocon Industries and Liberty Mutual had announced their intention to form a general insurance joint venture in November 2010. Liberty Mutual will hold a 26 per cent stake in the JV with Videocon holding the remaining stake. The foreign insurer will have the option to increase its stake in the joint venture if regulations permit. The...

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Dhanlaxmi Bank plans fresh capital infusion

Kochi, Nov. 3: The Thrissur-based Dhanlaxmi Bank has proposed to infuse fresh capital within the next 2-3 months. However, Mr Amitabh Chaturvedi, Managing Director and CEO, declined to give any figure on the amount to be pumped in. The infusion, he said, would be completed within the fiscal ending March 2012. Speaking to reporters in connection with the launch of second series of Dhan Gold coins here, he said that a US-based lender had earlier evinced interest in putting money into the bank. However, Dhanlaxmi Bank had later called off negotiations...

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RBI okays new rules for structured derivative offers by banks

The Reserve Bank of India on Wednesday said banks may offer structured derivative products to customers for hedging risk. These should not contain any underlying derivative. Banks must seek a resolution of the customer-company board on the limit set for dealing in derivatives. (Earlier, companies had to specifylimits for particular persons allowed to enter into derivative deals). This takes effect from January 1, 2012. While monitoring this limit, a bank would take into account the absolute notional amount of all derivative contracts entered into...

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Standard Chartered's income from Indian operations continues to fall

MUMBAI: Standard Chartered Bank's income from Indian operations has seen a further slowdown, said the bank in its interim management statement for the third quarter of 2011, released on Wednesday. Meanwhile, income for Standard Chartered Plc in the first nine months of 2011 has grown by a high single-digit percentage over the first nine months of 2010, said the bank in its statement. "Over the same period, operating profit before tax grew at a double-digit rate," it added. The operating profit of the UK-based bank's Indian branches had plunged...

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Dena Bank aims to hit Rs 1.5 lakh cr mark by 2013

Public sector Dena Bank aims to achieve Rs 1.5 lakh crore business with a growth of 20% during this fiscal, according to a top bank official. "We have set a target of Rs 1,50,000 crore by 2013," Dena Bank Chairperson and Managing Director Nupur Mitra, who assumed office today, said. She said the bank reported 19.21% jump in total business at Rs 1,07,336 crore as of September 30, 2011. On the outlook for this financial year, she said the bank would introduce gold loan and housing loans. "We plan to introduce gold loan scheme and housing loan. Already...

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SKS Microfinance to raise Rs 900 cr via share sale

MUMBAI: Country's largest MFI SKS Microfinance today said it will raise up to Rs 900 crore through issue of shares to institutional investors. The board of the country's only listed micro finance company has approved issuing equity shares through qualified institutional placement (QIP) to raise up to Rs 900 crore, SKS said in a filing to the BSE today. The board also approved raising the authorised capital of the company to Rs 135 crore from Rs 95 crore. SKS had raised Rs 1,654 crore by way of an initial public offering (IPO) in July last year. The...

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Vizag commercial branch of SBI doubles biz volume

The Visakhapatnam commercial branch of SBI has doubled its business volume and added seven new corporate clients during the first year of its operations, according to Mr V. Narsi Reddy, Assistant General Manager and branch head. He told presspersons here on Wednesday on the occasion of the first anniversary that the specialised branch meant for financing mid-corporateshad made remarkable strides during the year. “We began with a modest business of Rs 635 crore a year ago and now it has swelled to Rs 1,356 crore till date and by March-end we are...

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Allahabad Bank Q2 net up 21% on interest income

Riding on the back of a rise in net interest income and higher margins, Allahabad Bank posted 21 per cent growth in net profit at Rs 488 crore for the quarter ended September 30, 2011, against Rs 403 crore during the corresponding period last year. On a sequential basis, profits rose 17 per cent from Rs 418 crore during quarter ended June 30, 2011. The net interest margin during the quarter under review, improved to 3.68 per cent (3.34 per cent) on account of operational efficiency, said its Chairman and Managing Director, Mr J.P. Dua. Slippages...

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Punjab and Sind Bank profit jumps 35.47%

Government-owned Punjab and Sind Bank reported a 35.47 per cent increase in net profit for the second quarter of the current fiscal. The net profit rose to Rs 147.76 crore for the second quarter ended September 30 from Rs 109.07 crore from the year ago period. The total business of the bank stood at Rs 1,02,982.88 crore for the half year ended on September 30 against Rs 88,841.06 crore in the corresponding period last year, registering a growth of 15.92 per cent on a year on year basis. Net NPA of the Punjab and Sind Bank stood at Rs 297.46 crore...

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No savings bank rate hike for now, says SBI chief

The State Bank of India Chairman, Mr Pratip Chaudhuri, on Tuesday ruled out any immediate increase in its savings bank account rate, saying that the largest Indian bank is confident of the people’s continuing trust in the various facilities being provided to them by SBI. “No major bank has increased the interest rates on deposits in SB accounts. Those who have done it are not big ones,” he told reporters after the annual conference of SBI’s Chief General Managers (CGMs) here, when asked whether SBI plans to increase the rates in the wake of deregulation...

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Karur Vysya Bank net up 10% to Rs 113 cr

Karur Vysya Bank's net profit rose 10.44 per cent for the quarter ended September to Rs 113.31 crore compared with Rs 102.60 crore achieved during the corresponding quarter of the earlier fiscal. Its operating profit increased 8.7 per cent to Rs 157.67 crore (Rs 145.07 crore) consequent to a 24.27 per cent increase in its net interest income to Rs 216.47 crore (Rs 174.19 crore). Interest income was up 49 per cent to Rs 772.05 crore (Rs 518.38 crore). The bank's year-on-year net profit increased by 23 per cent to Rs 230.01 crore against Rs187.08...

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PNB profit grows 12% in Q2 despite higher provisioning

Punjab National Bank has reported a 12.1 per cent increase in net profit during the quarter-ended September 30. Announcing the results on Tuesday, Mr K.R. Kamath, Chairman and Managing Director of PNB, said even after high provisioning for various loan accounts, profits rose to Rs 1,205 crore during the second quarter from Rs 1,075 crore in the same quarter last fiscal. The bank managed to record a total business of Rs 5,90,803 crore, showing a year-on-year increase of 22.5 per cent. The bank's net interest margin declined from 4.06 per cent to...

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Canara Bank net slips 15% on rise in NPAs

A spurt in non-performing assets ( NPAs) due to 100 per cent implementation of system-based NPA identification caused a 15 per cent dent in Canara Bank's net profit for the second quarter of this fiscal. The bank's net profit stood at Rs 852.22 crore compared with Rs 1,007.88 crore recorded during the corresponding quarter of last fiscal. “A major cleaning exercise was done comfortably and comprehensively. We are now in a position to produce much better results in the next two quarters, as we would not have the weight of hidden NPAs in smaller...

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IndusInd Bank hikes rates on savings a/c by 2% to 6%

Private sector lender IndusInd Bank has hiked interest rates on savings accounts by up to 200 basis points, offering clients a return of as much as 6% on their deposits. Savings bank accounts with a balance of over Rs 1 lakh will earn interest of 6%, while others will be paid 5.5% interest, the bank said in a release. The interest on savings bank accounts was earlier fixed at 4% before the RBI freed the rates. IndusInd Bank has also raised its lending rates by 25 basis points. The new rates will be effective from tomorrow. The decision to raise...

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Andhra Bank launches online facility

Customers of Andhra Bank now have one more facility of electronic banking. Henceforth, they can open their term deposit accounts online through the Internet banking platform. After opening the deposit account, the customer can collect the deposit receipt bond from the branch at his/her convenience. The facility adds to the growing list of online features already provided through Internet banking such as enquiry of balance, account statement printing/downloading, request of cheque book, fund transfers, e-rail ticketing, online tax payment, e-shoppe...

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Vijaya Bank conducts home loan mela in Mangalore

The regional office of Vijaya Bank in Mangalore conducted a home loan mela on October 29 and 30. Quoting Mr Sudhakar Shetty M., Deputy General Manager of the bank, a bank release said here that through the housing loan mela, bank gave spot sanction based on income and offered a 50 per cent concession in processing charges. Mr B. Ibrahim, Director of the bank and former Member of Parliament, inaugurated the mela, the release added....

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Jump in provisioning dents Oriental Bank Q2 net profit

Oriental Bank of Commerce (OBC) has reported a 58 per cent decline in net profit for the quarter ended September 30, 2011 at Rs 167.74 crore (Rs 397.65 crore). The second quarter bottomline performance was weighed down by 114 per cent jump in provisioning, especially towards bad debts. For the quarter under review, provisioning (other than taxes) stood at Rs 485.34 crore (Rs 226.31 crore). “The bank has moved to system-driven NPA provisioning. The second quarter performance was impacted by this. You will see a different picture in the December...

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Sundaram BNP Paribas Q2 net nearly doubles to Rs 21.08 cr

Sundaram BNP Paribas Home Finance has nearly doubled its net profit during the second quarter ending September 30, 2011, against that of its net profit in the corresponding quarter previously The net profit for the quarter was Rs 21.08 crore (Rs 11.61 crore) on disbursements of Rs 452 crore (Rs 294 crore). Supported by the performance, the company is confident of achieving its disbursement target of Rs 1,800 crore for the year, said Mr Srinivas Acharya, Managing Director, Sundaram BNP Paribas Home Finance. The company is expanding presence while...

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