BoI scraps pre-payment fee on fixed & floating home loans

Bank of India on Saturday became the second major bank, after the SBI, to abolish the pre-payment charges on both fixed and floating rate home loans, with immediate effect. “We have decided to implement the Damodaran committee recommendation on customer service. Accordingly, we have decided to give total liberty to our home loan customers, both on floating rates as well on fixed rates to switch if they choose to do so irrespective of the source of funds, including takeover by another lender,” a BoI official told PTI. Before this, Bank of India,...

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RBI frees rates on NRE deposits to attract dollar inflows

KOLKATA: The RBI has unleashed new ammunition to support the rupee from depreciating. On Friday, it deregulated interest rates on NRI deposits to attract more dollar flow into the country. It has decided to deregulate interest rates on non-resident (external) rupee (NRE) deposits and ordinary non-resident (NRO) accounts with immediate effect. This will attract more dollar as banks are likely to increase the interest rates. In case of NRI deposits, the dollar or any other foreign currency gets credited to a nostro account of a local bank which,...

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Irda to develop electronic re-insurance platform

The Insurance Regulatory Development Authority (Irda) said it would take steps to introduce an electronic re-insurance platform for insurers and both Indian and foreign re-insurers. "The proposed electronic re-insurance platform will have to be mandatorily used by insurers and Indian reinsurers as well as foreign reinsurers operating in India," Irda Chairman J Harinarayan said. He said Irda had taken up an ambitious programme of designing an exchange or an inter-faceted, interlinked, electronic platform, on which reinsurance broking transactions...

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PNB appointed lead bank for Pathankot and Fazilka

MUMBAI: The Reserve Bank assigned to state sector lender Punjab National Bank the responsibility of being the lead bank in newly created districts of Pathankot and Fazilka in Punjab. "It has been decided to assign the lead bank responsibility of the two new districts viz Pathankot and Fazilka to Punjab National Bank," the Reserve Bank of India said in a statement. The two new districts were created by the Punjab government in July this year. While Pathankot was carved out of the Gurdaspur district, Fazilka has been carved out from the Ferozepur...

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ICICI may have to reduce stake in Firstsource Solutions to 10%

MUMBAI: India's biggest private lender ICICI Bank may have to cut its holding in Firstsource Solutions - the global business process outsourcing firm, which it originally promoted a decade ago - to comply with new norms announced by the Reserve Bank of India. The central bank seeks to restrict equity investments by banks in non-financial services. ICICI Bank, which still controls 18.1% of the company's equity, may have to pare its holding to 10% in line with the guidelines issued by the banking regulator late on Monday. The new rules say that banks...

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Standard Chartered Bank to consolidate private banking business

MUMBAI: The Indian unit of Standard Chartered Bank has decided to consolidate its private banking business by relocating some of its relationship managers in centres such as Chennai, Bangalore and Kolkatta to Mumbai and New Delhi after being hit by cases of mis-selling of debt securities, earlier this year. "After the incident of mis-selling, the bank had run a compliance audit and, in a bid to ease the selling process, the bank has decided to consolidate its business," said a person with knowledge of this development. A bank official, who spoke...

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Fitch affirms investment grade to SBI

Global rating agency Fitch on Friday affirmed ‘BBB—’ or investment grade with stable outlook to the country’s largest lender State Bank of India. The agency has also affirmed SBI’s Viability Rating (VR) at ‘bbb—’. The ratings of SBI are driven by a high probability of support from the government, given its systemic importance as the largest bank in India, as the sole banker in many economically backward regions and as a banker to various government entities, Fitch said in a statement. Notwithstanding the revenue strengths, internal capital generation...

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RBI pauses - finally!

The Reserve Bank of India took a pause from its rate tightening cycle in its mid- quarter monetary policy announcement today. After 13 consecutive hikes over the past 20 months, the Reserve Bank of India decided to stay still and do nothing. It also provided guidance that a reversal in its tightening cycle may happen if conditions improve. The RBI's last 13 hikes cumulatively amounted to a 350 basis point increase in key interest rates. The repo rate (the RBI's key policy rate - the rate at which the RBI lends money or infuses liquidity to banks)...

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IRDA chief tells companies not to indulge in ‘unhealthy competition'

Insurance companies should not indulge in “unhealthy competition” and fight for the topline at any costs, Mr J. Hari Narayan, Chairman, Insurance Regulatory and Development Authority of India, said here on Friday. This unhealthy competition, according to him, might lead to financial trouble for the companies. “(Insurance) companies need to improve their practices when it comes to unhealthy competition and be more responsible in accepting policies,” Mr Hari Narayan said on the sidelines of a summit organised by the Insurance Brokers' Association...

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RBI to conduct additional repo auction tomorrow

The Reserve Bank of India will conduct additional repo operations (by which banks can borrow money from the RBI) under the Liquidity Adjustment Facility, on Friday, December 16, between 4.30 and 5 pm. The RBI has decided to conduct the additional repo operation keeping in view the prevailing liquidity conditions and with a view to providing flexibility to scheduled commercial banks in their liquidity management, said a press release issued on Thursday....

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Karur Vysya Bank opens 8 new branches

Karur Vysya Bank has added eight new branches today and taken its total branch network to 426. The branches inaugurated today include the Santhosh Nagar branch at Hyderabad apart from branches at Tanuku, Gajapathinagaram in Andhra Pradesh, Tripunithura in Kerala, Kalapatti in Coimbatore, Tamil Nadu, Bhiwandi in Maharashtra and Joka, Baruipur in West Bengal. It plans to add two more branches to its network on Friday with one each at Bobbili in Andhra Pradesh and Kharagpur in West Bengal. With the inauguration of these branches, KVB has opened 59...

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SBI opens branch in Saudi Arabia

State Bank of India started operations in Saudi Arabia with the opening of a branch in Jeddah. The branch was inaugurated on December 14 by His Excellency Dr Abdulrahaman Al kalaf, Deputy Governor for Technical Affairs, Saudi Arabian Monetary Agency. SBI's Managing Directors, Mr Hemant Contractor and Mr A. Krishna Kumar were also present on the occasion, said a press release issued by the bank. The Jeddah branch is a full commercial branch that offers a bouquet of banking services to the around two million Indian residents of Saudi Arabia. It also...

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IBPS to conduct 5 ‘common' exams every year for bank jobs

The day may not be far off when Dr Manmohan Singh, or any future prime minister, will just have to call up the Institute of Banking Personnel Selection (IBPS) to fill up a vacancy at the Prime Minister's Office (PMO). That was the aspirational goal that Infosys Chief Mentor, Mr N.R. Narayana Murthy, gave to IBPS in the course of an address at its campus on Tuesday evening. IBPS currently functions as an autonomous body that is mainly engaged in conducting competitive exams for recruitment to clerical and officers' posts in the banking sector (public...

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Indian Overseas Bank may raise $500 mn next year

MUMBAI: State-run Indian Overseas Bank may look at borrowing $500 million in the overseas market next year to meet dollar demand from Indian companies, its chief M. Narendra told Reuters on Wednesday. "We may, at an appropriate time, look at medium-term notes for $500 million next year, when the market is right," he said over the telephone. "This is to meet credit growth in international market, corporates who want ECBs." "There are other markets like Chinese, Japanese where we can also raise money. So, all options can be looked at. Not immediately,...

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SBI expects Rs 3,000-4,000 cr capital infusion

State Bank of India (SBI), the country's largest lender, today expressed hope it would get capital infusion of Rs 3,000-Rs 4,000 crore from the government this fiscal. "It [infusion] is round the corner. It could happen any day now. I think [the mode] is not decided, but whatever we are getting we will be getting in cash. We are expecting Rs 3,000-4,000 crore either in December or by March," SBI Chairman Pratip Chaudhuri said. Talking to reporters on the sidelines of Delhi Economics Conclave, he said that "if they [government] put in Rs 3,000 crore...

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Irda set to allow foreign branches for pvt insurers

Says companies should ensure policyholders’ liabilities remain ‘ring-fenced’. Private insurers that have been operating for more than 10 years would be allowed to open branches and set up insurance joint ventures, including subsidiaries, outside India. The norms would apply to all sets of insurance companies involved with life, non-life, health and reinsurance businesses. The Insurance Regulatory and Development Authority (Irda), in a note issued to insurers, said the companies should put in place appropriate arrangements to ensure policyholders'...

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KVG Bank rolls out phase II plan for intensifying rural lending

Karnataka Vikas Grameena Bank (KVG Bank), Dharwad-based regional rural bank, has rolled out second phase of rapid action plan for intensifying lending in rural areas. Addressing the Grama Sabha at Hulikatti Village, Mr C. Sambasiva Reddy, Chairman, KVG Bank, said “Grama Sabhas are helpful in giving disseminating information relating to Kisan Credit Cards (KCC) and General Credit Cards (GCC) and other specific products designed by the banks to cater to the financially excluded segments especially small and marginal farmers.” The bank is rolling...

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1.11 lakh candidates pass bank officers' exam

About 1,11,993 candidates have passed the first common written exam (CWE) for probationary officers in 19 nationalised banks. The exams were conducted by the Institute of Banking Personnel Selection (IBPS) in September this year. A little over 10 lakh candidates had appeared for the exam. Of them, 36 per cent of the successful candidates were women, while a similar number of candidates were from the rural areas. The CWE for clerical posts has been held across the country over the past three Sundays. Nearly 43 lakh candidates have appeared for the...

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MasterCard Foundation, ILO enter into pact

The MasterCard Foundation and International Labour Organisation (ILO) have forged a five-year partnership to enhance global awareness among youth about challenges facing them in the world of work. The Foundation, which has pledged $14.6 million for the Work4Youth partnership, will aid ILO in school-to-work transition surveys to be undertaken in 28 countries across five regions. The data and information generated by the surveys will be included in a series of analytical national, regional and global reports on youth employment. A recent ILO report...

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PNB installs Cash Deposit Machine in Ernakulam

To help customers speed up their transactions without waiting in the queue, Punjab National Bank has installed the first Cash Deposit Machine in Kerala at its Market Road Branch in Ernakulam district. Mr K.V. Rajesh, the Bank Circle Head, said the machine would accept currency notes in three denominations — Rs 100, Rs 500 and Rs 1,000, and customers can make up to two deposits through the machine in a day. The customer's account will be credited instantly and a receipt will be issued. This is a customer-friendly machine and can be handled easily...

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Citi India launches mobile payment facility for corporate clients

Citi India has launched a cash management service which will help its corporate customers collect receivables from their retailers or customers using mobile payment technology. Called Cash-To-Mobile, this solution will increase the efficiency of collection for the company. It will also help reduce the cost of transaction and ensure the safe transfer of money. Citi launched a pilot project with Coca Cola in Hyderabad about two weeks back. Using the solution, Coca Cola will receive payments from its retailers through mobile payments. The transactions...

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Government clears creation of new ED slot in public sector banks

KOLKATA: Large state-run lenders like Bank of Baroda and Punjab National Bank will get a third executive director (ED) on their board from next April, while smaller banks like Dena or United Bank will get their second ED. The government has just cleared the Khandelwal Committee's recommendation to this end, two chief executives at state-run banks said. Banks with more than Rs 3 lakh crore business are considered as large entities. The government has created the new slot in six large banks and said the third executive directors will be responsible...

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Bank of Baroda selected as best public sector bank in India: Report

Bank of Baroda and Karur Vysya Bank have been selected as the best banks in the public and private sectors, respectively, at the national level for this year by a jury appointed by the State Forum of Bankers Clubs in Kerala. The awards in the various categories would be presented at a function here on December 17, the State Forum of Bankers Club President L R R Warrier and General Secretary K U Balakrishnan told reporters here. Minister of State for Consumer Affairs, Food and Public Distribution K V Thomas will present the forum's 'Businessman...

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Reserve Bank of India may cut rates by 25 bps by mid-2012: Poll

MUMBAI: The Reserve Bank of India is widely expected to keep rates on hold at its review on Friday, but economists in a poll expect it to accelerate monetary easing in 2012 as economic conditions worsen in Asia's third-largest economy. All but one of the 20 economists surveyed expect the Reserve Bank of India (RBI) to keep rates on hold at its mid-quarter review on Friday. The RBI has raised interest rates 13 times since early 2010, lifting its key lending rate, the repo rate, to 8.50 per cent. It signalled in October an inclination to leave rates...

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SBI’s farm loan NPAs rises to Rs 13,545 cr in Apr—Sept

State Bank of India’s non- performing assets (NPAs) in the farm loans segment rose nearly four fold to Rs 13,545 crore in the first six months of this fiscal, Parliament was informed on Tuesday. During the April-September period of 2010-11, NPAs in the agriculture segment were Rs 3,718 crore, the Minister of State for Finance, Mr Namo Narain Meena said in a written reply to the Rajya Sabha. SBI’s overall NPAs increased to Rs 33,946 crore as on September 30, 2011, from Rs 23,205 crore in the same period last fiscal. Mr Meena added that SBI has taken...

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PNB sponsors Vocational Rehabilitation Centre

As part of its CSR activities, Punjab National Bank has sponsored the Vocational Rehabilitation Centre at the Ernakulam General Hospital. The District Collector, Mr Sheik Pareeth, inaugurated the centre at a function held at the General Hospital Conference Hall. The centre aims to help those patients who have undergone limb replacement and allied treatment at the General Hospital to earn their livelihood without depending on others. The bank will supply raw materials to the centre for the manufacture of soaps, soap solution, phenyl and paper files...

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RBI sold dollars in October

The Reserve Bank of India intervened in the foreign exchange market for the second month in a row, selling $943 million (Rs 4,714 crore) in October, according to the RBI's 'Current Statistics’ data. The bank sold $845 million in September. In both these months, the central bank did not buy any dollars. Contrary to belief that the RBI has been keeping its hands off the foreign currency market, it appears to have intervened to ward off extreme volatility. The rupee had touched a low of Rs 50.32, intra-day, on October 21. The rupee has fallen 19 per...

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Parliamentary panel recommends CBI probe against IFCI MD

Industrial Finance Corporation of India (IFCI) CEO and MD Atul Kumar Rai is in the dock with a Parliamentary Committee finding him guilty of supressing facts regarding his appointment in 2007 and recommending a CBI probe into it. The Parliamentary Committee of Privileges also found Rai guilty of misbehaving with BJP MP Rajiv Pratap Rudy when he had gone to meet the official to discuss some issue. In its report tabled in the Rajya Sabha, the Committee headed by K Rahman Khan, said, “Rai suppressed factual information pertaining to his appointment...

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Over 3,100 RRB branches to be opened in 2 years

The Government today said over 3,100 branches of regional rural banks (RRBS) will be opened in different parts of the country in the next two years. The Minister of State for Finance, Mr Namo Narain Meena, said during Question Hour that 1,297 branches of RRBs would be opened in 2012 and 1,845 in the following year. As on March 2011, there were 82 RRBs with 16,001 branches. There are 19 nationalised banks with 44,369 branches and 20 private sector banks with 11,874 branches in the country, as on September-end. Besides, 39 foreign banks are operating...

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PNB's total business set to cross Rs 6 lakh cr by this year

The total business of Punjab National Bank (PNB) is set to cross Rs 6 lakh crore in the third quarter ending December 31, 2011. The bank had reached a total business of Rs 5.90 lakh crore at the end of the second quarter, showing a year-on-year growth of 22.5 per cent. The deposits grew by 25 per cent to Rs 3.41 lakh crore and the advances by 19.3 per cent to Rs 2.49 lakh crore. The bank's deposits are expected to grow by 21-22 per cent and credit by 19-20 per cent, year-on-year, by the end of the current financial year and this will be around...

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South Indian Bank to open corporate finance branches

South Indian Bank is planning to open exclusive corporate finance branches in metro cities to tap potential in corporate sector, according to its Managing Director and Chief Executive Officer, Dr V A Joseph. Speaking to newspersons after inauguration of 15 branches in Andhra Pradesh here on Monday, Dr Joseph said the corporate finance branches would be opened in New Delhi, Mumbai, Bangalore, Chennai and Kolkata during next financial year. “Our target is to generate at least Rs 1,000 crore business in each of these branches,'' he said. Speaking...

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