IOB board okays rights issue

The board of Indian Overseas Bank has approved a rights issue. The bank proposes to issue 20 crore equity shares of face value Rs 10 each at a premium to be decided based on the market conditions.The bank also proposes to issue 20 crore fully convertible preference shares of face value Rs 10 each at a premium to be decided at the time of the issue.The resolution is subject to approval by RBI and other authorities. The Government’s shareholding in the equity capital of the bank is at 69.62 per cent.IOB shares were trading at Rs 85.70, up 0.65...

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Deepali Joshi elevated as ED, RBI

Deepali Pant Joshi has been promoted as the Executive Director of the Reserve Bank of India. Prior to her elevation, she was the Regional Director of the RBI’s Rajasthan regional office. Joshi’s appointment follows the superannuation of V. K. Sharma. The RBI has nine EDs....

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SBI rolls out ‘MobiCash Easy’

State Bank of India has launched mobile wallet service MobiCash Easy on a pilot basis in Mumbai and Delhi.The prepaid service allows customers to transfer money to any bank account or to any wallet issued by State Bank of India, pay bills, recharge mobiles, and pay for digital TV and broadband connections.The customers can also check their balance and the last five transactions they conducted through their mobile wallet.Both SBI and non-SBI customers can make use of this service.The product does not require any Know-Your-Customer (KYC) compliance.Customers...

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Corp Bank GMs are brand ambassadors too

A few months ago, when Ajai Kumar, Chairman and Managing Director, Corporation Bank, was going through an issue of a well-known international publication, he found a picture of an Indian CEO on the cover page. After making enquiries, he discovered that it was a complimentary issue with a false cover having the picture of that particular CEO on it.That set him thinking, and soon Ajai Kumar thought of implementing that idea in the branding exercise of his bank also. That is why you see in the latest series of advertisements of his bank. They...

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RBI employees to strike on January 1

Employees and officers under the banner of United Forum of RBI Officers and Employees have called a country—wide strike on January 1, 2013 to protest the decision to close currency notes and coins issue counters from that date.In a press statement issued by the forum, General Secretary of the All India Reserve Bank Employees Association Samir Ghosh said that the RBI was mandated by the RBI Act 1934 to manage, issue and exchange of currency notes and coins throughout the country.RBI’s effort was also complemented by the various branches of commercial...

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Andhra Bank to focus on agri, SME lending

Andhra Bank will focus on lending to agricultural and micro-, mini- and small enterprises, according to its Chairman and Managing Director B.A. Prabhakar.“These two sectors are our priority business areas, as there is huge potential for growth. The non-performing assets here are also under control,” Prabhakar said.The agriculture portfolio of Andhra Bank grew 26 per cent year-on-year, small and medium enterprises 18 per cent and retail 13 per cent till date.Though demand for retail loans had picked up, competition has stiffened as major banks...

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Federal Bank offers stock options worth Rs 114 cr to employees

Private sector lender Federal Bank has offered employee stock options of more than 2.4 million equity shares amounting to Rs 113.76 crore to all its permanent employees.This is the second time the bank is offering stock options since it implemented the employee stock option plan (ESOP) in 2011.The grant in 2011 was at Rs 420.65 a share, and Rs 474 in 2012, the bank said in a statement.At the time of the announcement, the share price of the Kerala-based bank stock was at Rs 542. The bank has about 1,000 branches and 10,000 employees, the bank...

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Bank of India raises bulk deposit rates for select maturities

Bank of India today revised upwards the interest rates on deposits of Rs 10 crore and above for select maturities.“...has informed the BSE that the bank has revised the interest rate for the deposit of Rs 10 crore and above for the time bucket of 1 year and above to less than 2 years to 9 per cent (earlier 8.75 per cent),” Bank of India said in a filing to BSE.The new rates would be applicable from December 27, 2012, it added.Shares of the bank ended down at Rs 337.60 apiece on the BSE, down 0.82 per cent from their previous close.Recently,...

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Corporation Bank to raise Rs 200 cr via tier-I bonds

Corporation Bank plans to raise Rs 200 crore through tier-I bonds on a private placement basis, the bank said in an exchange filing late last evening.  The bonds will be unsecured, perpetual and non-convertible.  The face value of each bond is Rs 10 lakh.  The coupon rate is 9.29 per cent per annum.  There is no put option.  A call option can be exercised after 10 years.  The issue opens on Dec 27 and closes on Dec 28...

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Bank of Baroda to issue Rs 1,550 cr pref shares to Govt

Bank of Baroda (BoB) on Wednesday said it will raise Rs 1,550 crore by issuing preference shares to the government.The board at its meeting held on December 24, 2012, has approved issuance of shares of face value of Rs 10 each, for an amount upto Rs 1,550 crore, on preferential basis in favour of Government of India, BoB said in a filing on the BSE.The prices of the shares would be decided as per the SEBI norms, it said.Shares of the BoB closed at Rs 854.40, up 0.84 per cent on the BSE.Preference shares are given higher ranking over common...

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South Indian Bank business set to touch Rs 75,000 cr

South Indian Bank is all set to achieve a business target of Rs 75,000 crore by March 2013 as envisaged in the Vision Document 2008.SIB's five-year business plan — Vision 2013 — was drawn up in 2008 to achieve Rs 75,000 crore business, 750 branches, 750 ATMs and 7,500 employees.V. A. Joseph, Managing Director and CEO, told Business Line that the bank has been able to clock Rs 67,000 crore in total business as on date.Its employee strength is at 6,800, the number of branches 740 and ATMs 775.“We hope to achieve the target of Rs 75,000 crore...

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Karur Vysya Bank open to acquisition, if it’s a right fit

Old generation lender Karur Vysya Bank (KVB) is open to acquiring a bank if an opportunity comes its way, said a top bank official.K. Venkataraman, MD & CEO, KVB, gave this reply to a specific question on whether his bank would throw its hat into the ring to acquire one of the two distressed South-based old generation private sector banks (one headquartered in Tamil Nadu and the other in Kerala).He, however, said the 96-year old Karur (Tamil Nadu) headquartered bank is not actively pursuing an acquisition at this point in time. Not a target On...

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Ashwani Kumar named CMD of Dena Bank

Ashwani Kumar has been appointed as Chairman & Managing Director, Dena Bank, for a period of five years from the date of taking over charge of the post on or after January 1, 2013, vide notification dated November 6, 2012.According to the Government notification, Ashwani Kumar, who is the Executive Director of Corporation Bank, will function as Executive Director at Dena Bank on attachment basis with effect from December 17, 2012, till December 31, 2012, or until further orders.Accordingly, Ashwani Kumar has reported on December 17, 2012,...

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RBI to infuse Rs 8,000 cr into market via OMOs

The Reserve Bank of India (RBI) today said it will pump in Rs 8,000 crore in the market on December 28 by buying government securities to ease the liquidity situation.“Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations (OMOs) by purchasing...government securities for an aggregate amount of Rs 8,000 crore on December 28, 2012,” the RBI said in a statement.As part of the OMOs, the RBI will purchase government...

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Union Bank of India to raise up to Rs 1,500 cr via bonds

The State-owned Union Bank of India (UBI) today said it would raise up to Rs 1,500 crore from bonds over the next three months.The decision to raise funds was taken at the Board meeting held on December 22, UBI said in a BSE filing.The Board approved raising of additional capital funds not exceeding Rs 1,500 crore during the year 2012-13 by way of issue of Tier-I and Tier-II capital bonds as per eligibility, it said.Meanwhile, another public sector lender Bank of Maharashtra (BoM) has cleared raising up to Rs 1,350 crore from various bonds.BoM...

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IndusInd bank promoter sells 46 lakh shares for Rs 196 crore

One of the promoters of IndusInd Bank - IndusInd International Holdings – on Monday offloaded 46 lakh shares of the private sector lender for about Rs 196 crore through open market transaction.As per the bulk deal data available with the stock exchanges, IndusInd International sold shares of IndusInd Bank at an average price of Rs 425.43 a piece.The deal was valued at Rs 195.7 crore.The entity held nearly 6.85 crore shares in the bank representing 13.12 per cent stake, as on December 5, 2012.On the BSE, the shares of IndusInd Bank dipped 0.67...

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Dena Bank, Federal Bank raise rates for some term deposits

Tight liquidity coupled with a gradual pick-up in credit has prompted Dena Bank and Federal Bank to increase term-deposit rates for some tenures.Dena Bank has upped the rates (for up to Rs 15 lakh and between Rs 15 lakh and Rs 1 crore) for 365 days and above 1 year to less than two years from 8.75 per cent to 9.1 per cent.The public sector bank said the new deposit rates are effective from December 22.Private sector lender Federal Bank has upped the interest rate on term deposits in the 91-119 days maturity period from 7 per cent to 7.5 per...

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SBI, Russian wealth fund ink pact to set up $2-billion investment consortium

State Bank of India and the $10-billion Russian sovereign wealth fund, RDIF, on Monday signed a memorandum of understanding to set up a $2-billion consortium to promote direct investment.The pact was among the 10 deals, including defence, that were signed at the 13th annual India-Russia summit here.In a joint statement, Prime Minister Manmohan Singh and the visiting Russian President Vladimir Putin reviewed the progress made in key areas of co-operation including energy, trade, high technology and military-technical co-operation and noted that...

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Karnataka Bank conducts exporters’ meet in Chennai

Karnataka Bank, in association with Federation of Indian Export Organisations (FIEO), conducted an exporters’ meet in Chennai recently.A press release by the bank said here on Monday that the meet was organised to promote export business in Tamil Nadu, especially in and around Chennai.Inaugurating the meet, M. Rafeeque Ahmed, President of FIEO, highlighted various promotional activities undertaken by FIEO and the Government for the benefit of exporters.Speaking on the occasion, P. Jayarama Bhat, Managing Director and Chief Executive Officer...

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Govt to infuse Rs 3,004 cr into SBI this fiscal

The Government has approved fund infusion of Rs 3,004 crore in SBI during the current fiscal to boost the bank’s capital base. This is a part of the capital infusion plan for the public sector banks for 2012-13, sources said.The Finance Ministry has recently approved allocation of Rs 12,000 crore for various public sector banks including SBI.Fund transfer to various banks would be made in due course of time after they obtain the necessary approvals. Decision about the remaining Rs 3,000 crore would be taken soon, they said.The Government has...

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Muthoottu Mini branches in Delhi

Muthoottu Mini Financiers Pvt. Ltd., one of the leading NBFCs, has announced the opening of its first bunch of branches in New Delhi. The seven branches in the capital city are located at Janakpuri, Dwarka, Dilshad Colony, Palam Colony, Uttham Nagar, Tughlakabad and Sunder Vihar.In the second phase, the company plans to open another 22 Branches.Roy M. Mathew, Chairman, Muthoottu Mini Financiers, said in a statement here that the company would offer various services including gold loans, e-gold, life insurance, general insurance, health insurance...

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Canara Bank Christmas fair

A Christmas fair organised by Canara Bank in association with Kudumbashree opened here on Friday.K.B. Valsala Kumari, Executive Director, Kudumbashree, inaugurated the event. She lauded the efforts of Canara Bank and Kudumbashree in coming forward to organise the fair.G. Sreeram, general manager, and C.G. Nair and S.T. Ramachandra, deputy general managers, Canara Bank, offered felicitations.Fifty stalls displaying various products have been put up at the fair....

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IOB to involve SHGs in Direct Benefits Transfer, says its Chairman

The Indian Overseas Bank (IOB) is planning to involve the Self Help Groups (SHGs) in some of the activities relating to the ambitious ‘Direct Benefits Transfer’ scheme of the Central Government which would also bring the SHGs supplementary income, the IOB CMD M. Narendra said here on Sunday.The bank has also taken initiatives to give a boost to retail credit and has tailor made schemes to meet the needs of different sections of the customers, he said.Participating in an IOB credit disbursement programme here this evening, he said though districts...

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More customers are taking to mobile banking

This year has seen a gradual pick-up in mobile banking transactions, thanks to increased customer awareness and proliferation of smart phones.M-banking services, such as mobile wallet and Interbank Mobile Payment Service (IMPS), are being used for instant inter-bank electronic fund transfer service through mobile phones in India.These services are mainly used for balance checks, account transactions, payments, credit applications and other banking transactions.The IMPS is also being extended to accept merchant payments, using the bank account...

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For Corporation Bank, using technology to monitor loans is paying off

You feel happy when an SMS alert from your bank informs that money has been credited to your account. The same may not be the case when it is about a deduction.What if your bank sends an alert on the EMI (equated monthly instalment) due, well in advance? If you are a genuine borrower, it may be a slight irritant. But it is one of the processes that Corporation Bank follows to monitor its loan accounts.“Follow-up using technology is the key. Following up right from day-one can keep the portfolio in a healthy condition,” Ajai Kumar, Chairman...

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UBI engages Accenture for transformation programme

United Bank of India (UBI) has entered into an agreement with management consultancy firm Accenture to support the bank’s strategic transformation programme.CMD of UBI Bhaskar Sen said the bank was embarking upon a transformation programme to enhance the productivity by harnessing technology and operational changes.“Accenture will provide management consulting advisory services to support the bank change programme”, Sen told reporters here on Saturday.He said the consultancy firm would also assist UBI in its talent and human resource strategies...

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IRDA: Insurers to open 25% new offices in smaller areas

Insurance sector regulator IRDA has proposed to make it mandatory for insurers, who have been in business for 10 years, to open at least 25 per cent of new offices in areas that have a population less than 1,00,000.“An insurer that has completed 10 years of business is proposed to be mandated to open at least 25 per cent of new places of business in places where population is not more than 1,00,000,” IRDA has proposed in its Draft Exposure on Insurance Regulatory and Development Authority (Places of Business) Regulations, 2012.The proposed...

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SIDBI, IOB ink pact to launch risk sharing facility

Small Industries Development Bank of India today signed a memorandum of understanding with Indian Overseas Bank to launch the scheme of risk sharing facility-II for guaranteeing collateral-free credit facilities to micro and small enterprises (MSEs).Under the scheme, collateral free and /or third party guarantee free credit facilities over Rs 100 lakh and up to Rs 200 lakh sanctioned to eligible MSEs are proposed to be guaranteed through select member lending institutions of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).CGTMSE,...

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IDBI Bank launches scheme for urban poor

IDBI Bank today launched the ‘Urban Financial Inclusion Programme’ (UFIP) in Mumbai to expand its banking facilities to those financially excluded in urban areas.It aims to begin by initiating liability business, by offering savings bank and current account facility, recurring deposits and fixed deposits for the local people. There is scope for providing insurance and investment services to the people by imparting financial literacy, the public sector bank said in a statement.According to the bank’s assessment, over 2,500 washermen labour,...

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Bank strike a total success: AIBEA

Nearly five lakh bank employees stayed away from work, paralysing banking operations in many parts of the country.However, employees of SBI Group (about 3 lakh) did not participate in the strike, but provided "fraternal support" to bank employees of other public sector banks, it is learnt.SBI employees did not join the strike and the bank was not closed."Today's strike has been a total success. As per reports reaching us from other centres, the day-long strike has paralysed banking operations in all places," C.H.Venkatachalam, General-Secretary...

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Karnataka Bank opens new delivery channel for customers

In its efforts to create additional delivery channels to customers, Karnataka Bank recently launched a new service — ‘KBL Mobile.’Mobile banking transactions are those where customers undertake banking transactions by using pre-registered mobile phones with the bank.According to P. Jayarama Bhat, Managing Director of the bank, safety and convenience are the highlight of ‘KBL Mobile.’ In the mobile banking services, utmost importance is given to maximum convenience in usage to the customer. Adequate caution has been taken in protecting the customer’s...

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Central Bank to open 9 branches

Central Bank of India will open three new Branches in the Mumbai region at Kandivli (E), Diamond Bourse (BKC) and Dharavi on the occasion of its 102nd Foundation Day on December 21. The public sector bank will also inaugurate six branches at Uran, Kharghar, Nerul, Kopar Khairane, Seawood, and a retail asset Branch at Sanpada. It will also unveil 5 ATMs in Navi Mumbai....

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YES Bank launches mobile point of sale services

Private sector lender YES Bank on Thursday launched a mobile point of sale (mPOS) service allowing merchants to use a mobile device as a payment collection mechanism.Under this service, the merchants can use a mobile phone-based internet connectivity to facilitate debit or credit card payments.For this, the mid sized bank has developed mPOS card reader device ‘Dongle’ that can be inserted into any mobile phone to access the application of the bank. The merchants can buy the Dongle for Rs 2,000 and incur a rental in the range of Rs 250 to Rs...

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ING Vysya Bank appointment

ING Vysya Bank has appointed Sanjeev Aga as an additional director of the bank effective December 17. Bank’s release to exchanges said decision was taken by the Board of Directors of the Bank at its meeting held on November 30. Aga is to hold office up to the date of 82nd Annual General Meeting of the Bank to be held in the year 2013. He will be a Non-Executive and Independent Director...

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ATMs, e-payment options take sting out of bank strikes

“Is there a bank strike today? I am not aware and not bothered.”This is how 24-year-old Vivek Sarma, who works for TCS, responded, when asked on the impact of Thursday’s bank strike, at an ATM located in Lakdikappool in the heart of the city here.In fact, he is not alone and many belonging to Gen-Y responded in a similar vein.Compared to earlier days when bank strikes had brought the normal financial world of the public to a halt, bank-strikes these days seem to be a non-issue for many, thanks to technology.The increasing presence of ATMs,...

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CanMobile - banking while you are on the move

Canara Bank, established in 1906, has been introducing a host of services to cater to the customer’s needs.The bank is one of the largest with a customer base of 4.52 crore, and a dynamic market presence across the country and overseas.The introduction of technology products has been a huge challenge in the banking industry, as it was the banks’ responsibility to deliver through the alternate banking channels — directly into the customer’s hand and also ensuring it to be safe and secure. Mobile banking is one such technological product that...

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SIDBI inks pacts with RRBs, urban co-op banks in Bengal

The Small Industries Development Bank of India (SIDBI) has entered into agreements with eight regional rural banks (RRBs) and urban co-operative banks in West Bengal.SIDBI has already signed memorandums of understanding with the RRBs and co-operative banks for increasing credit flow to the micro, small and medium enterprises (MSMEs) in the region, said a press statement issued by SIDBI.The MoUs would aim at training the staff of RRBs and co-operative banks in project appraisal, monitoring and collection as also providing free access to software...

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Rs 1.7 lakh crore home loans may be disbursed this fiscal

Banks and housing finance companies are expected to collectively disburse home loans aggregating Rs 1,70,000 crore in the current fiscal, up from Rs 1,30,000 crore in the previous fiscal, said R.V. Verma, Chairman & Managing Director, National Housing Bank.There is good demand for home loans in the tier-II and tier-III centres as house prices are moderate. A majority of the buyers are end-users and therefore delinquencies are relatively lower, Verma said.India’s largest lender, State Bank of India, has already sanctioned Rs 20,000 crore...

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PSU bank unions on nation-wide strike today

New Delhi: Four bank employee unions will go on one-day strike today to protest the Banking Laws (Amendment) Bill and merger plans of banks.The unions decided to go ahead with the strike after the conciliatory meeting with Indian Banks' Association before the chief labour commissioner here failed, AIBEA General Secretary C H Venkatachalam said.Besides All India Bank Employees Association (AIBEA), Bank Employees Federation of India (BEFI), All India Bank Officers' Association (AIBOA) and National Union of Bank Employees (NUBE) are participating...

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Exim Bank extends $76.5-million line of credit to Malawi

Export-Import (Exim) Bank of India has extended a $76.50-million line of credit (LOC) to the Government of Malawi at the behest of the Union Government.The LOC has been extended for development of an irrigation network under the greenbelt initiative, setting up of refined sugar processing equipment and development of fuel storage facilities in Malawi, the bank said in a statement.This is Exim Bank’s third LOC extended to the Malawi Government, taking the total value of LOCs to $156.50 million.The LOCs have supported setting up of cotton ginning...

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Bank of Maharashtra to increase equity capital

Bank of Maharashtra has informed the BSE that a meeting of the board of directors of the bank will be held on December 22, 2012, to consider the proposal of raising equity capital by way of preferential allotment to Government of India and/or to qualified institutional buyers or rights issue. The government's shareholding as of September 2012 was nearly 79 per cent of the share capital.The bank had a capital adequacy ratio of 10.75 at the end of September 2012. It had come down sharply from a level of 12.46 three months earlier as business...

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Allahabad Bank cuts retail term deposit rate to 9%

Allahabad Bank cut its domestic retail term deposit rate by 0.15 per cent to 9 per cent."...the Bank has decided to revise the interest rate downward by 0.15 per cent per annum i.e. from existing 9.15 per cent to 9 per cent on domestic retail term deposits scheme with maturity period of one year to less than two years," it said in a BSE filing.The new rates would be applicable from December 18, 2012, it said.Earlier in October, Oriental Bank of Commerce and Bank of India had lowered term deposit rates for select maturities. Source:Economic...

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Corporation Bank to hire 2,433 this fiscal

Corporation Bank plans to recruit 2,433 personnel during 2012-13, according to its Chairman and Managing Director Ajai Kumar. Of these, nearly 1,100 will be in the officer cadre and the rest in clerical cadre, Ajai Kumar told Business Line.The bank is in the process of building a talent pool, particularly in specialised areas such as risk management, forex, IT, credit, including agriculture, etc.The recruitment process is in progress and is expected to be completed by the end of the month, he said.When asked if all of them would join the bank,...

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ICICI Bank ties up with MMP Mobi Wallet for money transfer biz

Private sector lender ICICI Bank has partnered a Tata Teleservices subsidiary to launch a money transfer service in two cities.  Under this service, customers can deposit cash into a retail store of MMP Mobi Wallet Payment Systems along with an advice giving details of the account of the payee, the bank said in a statement.This money will then be transferred to the bank account of the payee using currently available electronic fund transfer mechanisms such as National Electronic Funds Transfer (NEFT) and Interbank Mobile Payment Service...

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