ICICI Bank repays $750-million bonds, skips costly refinance

MUMBAI: ICICI Bank dug into its internal resources to repay $750 million of bonds that matured on Thursday instead of taking the usual refinance route, said two people familiar with the payout. The development reflects the high borrowing costs for Indian corporates who have more than $125 billion of overseas debt coming up for repayment this year. International investors are demanding higher rates as the European sovereign crisis has heightened risk-aversion among EU banks, one of the biggest lenders to Indian companies. ICICI Bank decided not...

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PNB identifies five countries for possible foray

Banking major Punjab National Bank (PNB) is looking to further expand its overseas presence and has identified at least five countries for possible entry in the coming days. Maldives, Singapore, Brazil, South Africa and Bangladesh are the five countries that the bank has identified for overseas foray, Mr K. R. Kamath, Chairman and Managing Director, PNB, told Business Line here. “Our board has cleared the bank's entry into Maldives. We are also looking at Singapore and Bangladesh. Surveys have also been done for countries like South Africa and...

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B.K. Batra appointed IDBI Bank Deputy MD

The Government has appointed B.K. Batra as Deputy Managing Director of IDBI Bank. He was working as Executive Director looking after the corporate banking function and formulation of corporate level policies and processes. In addition, he was also discharging the responsibility as chairman of credit committee and systems and procedures and several other committees, IDBI Bank said in a statement. Mr Batra has served IDBI Bank in various positions from 1983 till date, it said....

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Andhra Bank launches car loan campaign

Andhra Bank has launched a special package for four-wheeler loans with special interest rates and concession in processing charges. The package, ‘New Year Car Campaign' will offer vehicle loans at 12.25 per cent for a repayment period of up to three years with a 50 per cent reduction in processing charges. For loans above three years, the interest rate is 12.50 per cent. The offer will be in valid till February 15, Andhra Bank said in a release. On the deposit front, it had also launched ‘AbhayaFirst Wealth Pack'. The package will offer customers...

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RBI imposes Rs 5 lakh fine on Ghandhidham Cooperative Bank

MUMBAI: The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 lakh on Kutch-based cooperative sector lender Ghandhidham Cooperative Bank for violation of customer identification norms. "The Reserve Bank has imposed a monetary penalty of Rs 5 lakh on the Ghandhidham Cooperative Bank Ltd, Adipur, Dist Kutch (Gujarat)... for violation of RBI's instructions relating to Know Your Customers (KYC) norms," the apex bank said in a statement. The RBI had earlier issued a show cause notice to the bank, in response to which Ghandhidham Cooperative...

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Maharashtra seeks more time for co-op banks to get RBI licence

The Maharashtra government has written to the Union Finance Ministry seeking an extension of the March 31 deadline set by the Reserve Bank of India for 11 District Central Co-operative Banks and the State Co-operative Bank to obtain banking licence. In an interaction with media persons at a State credit seminar organised by the National Bank for Agriculture and Rural Development (Nabard), the Chief Minister, Mr Prithviraj Chavan, said the deadline for obtaining banking licence should be extended by a few months. The Rakesh Mohan Committee recommendations,...

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Private, foreign banks cannot pay 'excessive' salary to CEOs: RBI

MUMBAI: The Reserve Bank today said CEOs and staff of private and foreign banks cannot draw "excessive" salary, but it did not impose any cap on their remuneration. Issuing guidelines on compensation of CEOs and staff of private and foreign banks, RBI said all private and foreign lender will have to obtain prior approval from it for renumeration of CEOs and whole time directors as per the Banking Regulation Act, 1949 which prohibits excessive renumeration. However, the guideline did not specify what would constitute excessive renumeration. Banks...

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SBI caps losing its hold on debt restructuring business

MUMBAI: SBI Capital Markets, the undisputed leader in loan syndication as well as debt recast, is slowly losing its grip in the market. Unlike in the past, lenders in the domestic market are no longer signing on the dotted lines if a loan is syndicated or restructured by SBI Caps, the investment banking arm of State Bank of India. A number of bankers on condition of anonymity say they are no longer comfortable if a proposal is attached to SBI Caps and that they would prefer to vet it themselves -a far cry from the days when SBI Caps' project-appraisal...

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LIC Home Finance launches Rs 500 cr VC fund

Life Insurance Corporation's housing finance arm LIC Housing Finance (LICHFL) today launched a Rs 500-crore venture capital fund to finance realty and micro infrastructure projects. LICHFL and LIC, have pooled in Rs 50 crore each and another Rs 100 crore have been raised through external investors to launch the fund. The fund christened 'LICHFL Urban Development Fund' will be managed by LICHFL's dedicated subsidiary LICHFL Asset Management Company and targets to raise the remaining Rs 300 crore in the next nine months, LIC acting chairman DK Mehrotra...

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HDFC Q3 net up 10% on robust loan growth

Mortgage lender HDFC has posted a net profit of Rs 981.25 crore for the quarter ended December 31, 2011, on the back of higher loan approvals and disbursements. The company had reported a net profit of Rs 890.88 crore for the October-December quarter of 2010-11. The company’s total income stood at Rs 4,472.51 crore during the quarter, up from Rs 3,321.04 crore in the corresponding quarter last fiscal, Housing Development Finance Corporation said in a filing to the BSE. As of December 31, 2011, the company’s loan book stood at Rs 1.32 lakh crore...

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RBS to cut 3,500 jobs in 3 years

Royal Bank of Scotland today announced 3,500 job cuts over the next three years, as part of a business reorganisation and shrinkage of its investment banking operations. RBS, a government-owned banking giant in the UK, also plans to reorganise its wholesale businesses into “markets” and “International banking”, besides closure and downsizing of some other select activities, RBS said in a statement. The bank would exit from cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses. “The actions announced today...

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HUDCO to raise Rs 4,685 cr via tax-free bonds

Housing and Urban Development Corporation Ltd (HUDCO) today said it will raise up to Rs 4,685 crore through a public issue of tax-free bonds. The company said that it had filed a draft prospectus yesterday for the same with the National Stock Exchange (NSE), where these bonds would be listed. “The company proposes to make a public issue of tax-free bonds of face value of Rs 1,000 each in the nature of secured, redeemable, non-convertible debentures... aggregating up to Rs 4,684.72 crore,” HUDCO said in a statement. These bonds would have tax benefits...

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LIC to launch online term plan next month

Life Insurance Corporation (LIC) will sell its policy through the Internet for the first time with the launch of a pure term plan next month. “The online term plan is ready. “We had some issues that we have sorted out. It should be launched by the end of next month,” said acting chairman of LIC, Mr D. K. Mehrotra. The premium rates of the online term plan are expected to be lower than what the company charges for the offline term plans. deepa.n@thehindu.co.in...

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SBI slashes processing fee for greater home loan pie

MUMBAI: State Bank of India (SBI) has slashed processing fees on home loans by half, a move aimed at garnering a larger pie in the home loan market and giving competition to private banks and housing finance companies. "The decision is aimed at creating goodwill. With regards to fees charged from retail customers, SBI will charge only to the extent of covering its cost and not earn profit on it," said a senior official from the bank on condition of anonymity. The bank has reduced processing fee on home loan above Rs 75 lakh to Rs 10,000 from Rs...

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RBI cracks the whip on overseas banks

The regulator said these transactions are partly responsible for sharp depreciation in the rupee against the dollar. The Reserve Bank of India (RBI) has cracked the whip on some of the large foreign banks in the country for encouraging companies to participate in speculative trades in the foreign exchange market. The banking regulator in a meeting with senior representatives of foreign lenders have cautioned them for taking part in these trades, as it felt these transactions were partly responsible for sharp depreciation in the rupee against the...

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SBI to get Rs 6,000 cr fresh capital via pref issue before fiscal-end

The government has agreed to infuse up to Rs 6,000 crore fresh capital into State Bank of India through a preferential issue before the fiscal-end, the bank Chairman, Mr Pratip Chaudhuri, said here today. “We will be having a preferential issue and will be getting capital through it,” Mr Chaudhuri told PTI when asked about the progress on its proposed recapitalisation. When asked what could be the quantum of infusion, he said: “The size will be Rs 5,000 to Rs 6,000 crore.” He did not give any specific indication about the timing of the issue, though...

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Fake notes: NIA arrests 14 from 7 states

New Delhi: In a nationwide crackdown spanning seven states, the National Investigation Agency (NIA) has arrested 14 people and seized Fake Indian Currency Notes (FICN) worth several lakhs, alleged to be pumped into India using the borders of Bangladesh and Nepal. The investigations so far have pointed out that the high-quality FICN were being sent from Pakistan. This is the first-ever case registered by the NIA, which is mandated to curtail the circulation of FICN. Tracking the roots of these FICN, the NIA said notes of the denominations of Rs...

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SBI opens exclusive branch for women customers in Hyderabad

A play area for kids and free lockers for keeping personal belongings. Can you imagine what are we talking of? It an exclusive branch for high-networth women customers opened by State Bank of India here on Wednesday. The branch, Vasundhara Jubilee Senorita Banking Centre, is only the second of its kind in the country. It is aimed at tech-savvy, educated women customers including entrepreneurs. “With play room for kids and other facilities, women customers can handle their banking transactions in a safe and family atmosphere,” Mr A. Krishna Kumar,...

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SBI sees surge in requests for corporate debt rejig

There has been a significant increase in requests for debt-restructuring from corporates of late, according to Mr A. Krishna Kumar, Managing Director, State Bank of India. Speaking to newspersons after inaugurating a women-focussed branch here on Wednesday, Mr Krishna Kumar said such requests were coming in from many sectors, including agro-based industries and textiles. “These include small and medium enterprises as well as big corporates,” he said. Apparently, the worsening economic scenario is responsible for this trend. SBI is examining requests...

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Common written exam is for qualifying to take part in recruitment process: IBPS Director

The common written examination conducted by the Institute of Banking Personnel Selection (IBPS) is an ‘eligibility' exam, Mr M. Balachandran, Director, IBPS, said. The IBPS prescribes the minimum requirements, taking into account the least of the qualifying criteria stipulated by the participating banks, so that all aspirants can take a shot at the exam, he said. He emphasised that in the advertisement issued by IBPS, it was clearly indicated that the examinations were only for qualifying to participate in the recruitment process. After qualifying,...

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Allahabad Bank may recast Rs 200/300-cr loans to steel, textile sectors

Close to Rs 200-300 crore of loans extended by Allahabad Bank to the steel and textile sectors might be restructured during the third quarter of this fiscal. The bank had restructured loans of about Rs 125 crore during the second quarter of this fiscal, Mr D. Sarkar, Executive Director, Allahabad Bank said. The total outstanding loans under restructured accounts were at Rs 2,941 crore as on September 30, 2011, up from Rs 2,815 crore as on March 31, 2011. A total of Rs 2,722 crore of the restructured loans were in the standard category while close...

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Moody's raises India to investment grade

NEW DELHI: Moody's has upgraded India's rating for short-term foreign currency bank deposits from speculative to investment grade after finance ministry sought clarity from the global rating agency. The upgrade will help the country attract overseas deposits to fill up the void created by the sharp slowdown in equity inflows. Moody's had last month lifted foreign currency bank deposits to Baa3 from Ba1 and rating for domestic currency short-term government bonds to bonds to P-3 from NP but did not mention short term foreign currency bank deposit. The...

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United India bags TN Govt's health insurance scheme

Public sector insurance provider United India Insurance has bagged the Tamil Nadu government’s health insurance scheme. The health insurance scheme is expected to generate a premium of around Rs 600 crore. It provides medical cover up to Rs 4 lakh (for four years). The previous government’s Kalaignar Health Insurance scheme provided cover for Rs 1 lakh. This scheme was run by Star Health Insurance, which has missed the bus this time around. The new scheme, which seeks to give priority to government hospitals, covers 950 types of medical treatment...

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Karnataka Bank conducts NRI meet

The non-resident Indians (NRIs) always respond to the progress of the country and their contribution and role in the development of Indian economy is substantial, according to Mr Ananthakrishna, Chairman of Karnataka Bank Ltd. A bank release said here on Tuesday that he was speaking at an NRI meet, organised by it in Mangalore recently. Stating that NRI deposits are important in the deposits portfolio of the banks in India, he said Karnataka Bank provides dedicated, personalised and quick services supported by good technology to its NRI customers. Speaking...

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Sebi levies Rs 10 lakh fine for fraud

Mumbai: Regulator Sebi has imposed a fine of Rs 10 lakh on Saumil A Bhavnagari of V & S Intermediaries for indulging in fraudulent and unfair trade practices while dealing in the scrip of Adani Exports Ltd. "After considering all the facts and circumstances of the case... hereby impose a monetary penalty of Rs 10 lakh under Section 15 HA of the SEBI Act on the Noticee (Saumil A Bhavnagari)," the Securities and Exchange Board of India said in an order. The section deals with penalty for fraudulent and unfair trade practices. Sebi had earlier...

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Muthoot Fincorp plans to raise Rs 500-600 cr via private equity route

Non-banking finance company, Muthoot Fincorp Ltd, is looking to raise about Rs 500-600 crore from private equity investors, by offloading 5-6 per cent stake. The investor could also be a financial institution, which could cross-sell Muthoot's products, said Mr Thomas John Muthoot, Chairman and Managing Director, Muthoot Fincorp. Muthoot Fincorp, which is the flagship company of the Muthoot Pappachan Group, had a paid-up capital of Rs 181 crore and net owned funds of Rs 766 crore as on end-September 2011. The target is to increase the net owned...

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