RBI gives nod to ICICI bank to set up Infrastructure Debt Fund

ICICI Bank has received approval from the Reserve Bank of India (RBI) to set up an Infrastructure Debt Fund (IDF) - the first debt fund to get the government's go ahead. Officials from the bank were not available for comments. Industry sources said that ICICI Bank will enter into an equity tie-up with an non-banking finance company ( NBFC) for the fund. The new company will raise long-term money from investors to lend to infrastructure projects. Among others, IIFCL had announced plans to raise infrastructure debt as well as infrastructure equity...

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Citi exits HDFC with $722-million gain after tax

Citigroup Inc, the third largest lender by assets in the US, on Friday sold its entire 9.85 per cent stake in the country’s biggest housing finance company, Housing Development Finance Corporation (HDFC), for Rs 9,550 crore ($1.9 billion). The exit was meant to help the US bank shore up its balance sheet to meet the tighter Basel III requirements. According to a release, Citi made a pre-tax gain of $1.1 billion (Rs 5,490 crore) and an after-tax gain of approximately $722 million (Rs 3,550 crore). “The after-tax gain reflects Citi's tax liability...

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HDFC RED to list new homes in Kochi

HDFC RED (Real Estate Destination), an online platform hub for the residential realty buyers, has announced its foray into listings for new homes in Kochi. The Kochi section on www.hdfcred.com lists approximately 320 property types across 100 unique projects and 30 developers. HDFC RED is a specialised platform focussing only on the primary or developer properties in India. It is a platform for home buyers to do their initial research on properties available for sale, which is a huge task and saves a lot of time for a home buyer. It allows home...

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SBI to launch ‘Home Search Centre' in Kozhikode

The State Bank of India (SBI) is launching a ‘Home Search Centre' at its Specialised Personal Banking Branch here to help prospective buyers of housing properties in and around the city.One-stop centre This is the first such facility of the bank coming up in Kerala. It is a one-stop centre that will bring together customers, prominent builders and the bank on a common platform. The centre will provide information on builders who have housing projects within the city and the surrounding areas. The online search for suitable property can be finalised...

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Canara Bank recruiting 2,000 POs

Canara Bank is recruiting probationary officers (in the junior management grade/Scale I) to fill up about 2,000 vacancies across the country. The bank had specified that candidates with 60 per cent marks in graduation and a total weighted standard score of 156 in the common written examination conducted by Institute of Banking Personnel Selection (IBPS) and fulfil other criteria were eligible to apply. The selection process will be done on the basis of the IBPS score, a group discussion and an interview. Fifty per cent weightage will be given for...

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Credit cards: Sharp fall in delinquency level

With credit card users getting more mature, responsible and less impulsive on the one hand, and bankers too exercising enough caution while granting credit cards, delinquency levels have come down by over 50 per cent, said Mr Kadambi Narahari, CEO, SBI Cards. According to him, delinquency levels used to be in the 8-9 per cent range during 2006-2008, this has now come down to 4 per cent. In fact, during the period of crisis (2008-09), it used to hover around 11-12 per cent, he said. For State Bank of India, “it's lower than the industry level.” And,...

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3-day SBI, CREDAI realty expo

State Bank of India, in association with real estate body CREDAI, inaugurated a three-day CREDAI SBI Realty Expo in Bangalore. The expo will bring under one roof 38 city-based developers showcasing about 25,000 properties. Mr Ashwini Mehra, Chief General Manager, SBI – Bangalore Circle, which will offer on-the-spot in-principle approval for prospective buyers, also announced a 25-basispoint reduction in the home loan interest rate. Besides, there will be a 50 per cent concession on processing charges. Mr Mehra said that Bangalore has a centralised...

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Nabard employees to join general strike on Feb 28

Employees of the National Bank for Agriculture and Rural Development (Nabard) have decided to join the general strike on February 28. The central committee of the All-India Nabard Employees Association (AINBEA) that met in Mumbai opposed the bid to reposition Nabard ‘against farmer interests.' This repositioning is sought to be done as per the recommendations of the Boston Consultancy Group, says Mr Jose T. Abraham, Vice-President, AINBEA. The repositioning will force Nabard to take up direct lending, which will jack up interest rates of loans...

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Confident of crossing Rs 9,000-cr lending to small units, says Vijaya Bank CMD

The public sector Vijaya Bank is confident of crossing Rs 9,000 crore in financing the MSME (micro, small and medium enterprises) sector during the current financial year. In an informal chat with presspersons on the sidelines of an SME meet here on Friday — Mr H. S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank, said that the bank financed the MSME sector to the extent of Rs 7,481 crore till end-December. It has set a target of Rs 9,106 crore in MSME financing in the current fiscal. Mr Kamath hoped that with 35 specialised SME branches...

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Karur Vysya Bank launches co-branded card with SBI

Karur Vysya Bank on Friday launched a co-branded credit card with SBI Cards. Announcing this at a press conference, Mr K. Venkataraman, Managing Director and CEO of Karur Vysya Bank, said the alignment with SBI Cards is to avoid capital expenditure such as overheads on setting up a separate division and investing in people. “Whereas, joining hands with SBI Cards will give us a ready and immediate access to the portfolio.” Two variants The KVB-SBI co-branded cards will be available in two variants — Gold and Platinum — and will have both magnetic...

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Sydicate Bank appointed lead bank for Panchsheel Nagar in UP

The Reserve Bank has appointed public sector lender Syndicate Bank as lead bank for newly created district of Panchsheel Nagar in Uttar Pradesh. "It has been decided to assign the lead bank responsibility of the new district Panchsheel Nagar to Syndicate Bank," the Reserve Bank (RBI) said in a statement. Lead bank is the lender which is entrusted by RBI to act as the coordinator for a particular region, including state or district. The district was created by the Uttar Pradesh government in September 2011. The new district with its headquarter...

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UCO Bank, Vijaya Bank to sell stake to LIC

Two state-owned lenders UCO Bank and Vijaya Bank today said they propose to raise capital of about Rs 412 crore by issuing fresh equities to LIC. The board has approved the proposal for issue of 3.13 crore shares to Life Insurance Corporation of India (LIC) on preferential basis, UCO Bank said in a filing to the BSE. At the prevailing market price, the bank would raise about Rs 265 crore by selling stake to the insurer. Shares of UCO Bank closed at Rs 84.80 a piece, up 0.47 per cent on the BSE. Meanwhile, Vijaya Bank said it proposes to allot shares...

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Projects of DHFL's pvt equity fund to get CARE ratings

ArthVeda Fund Management, the PE arm of Dewan Housing Finance Limited (DHFL), has tied up with Credit Analysis & Research Ltd (CARE) to rate major investments by ArthVeda’s new real estate fund ArthVeda Star, the Rs 200-crore real estate fund with a greenshoe option of Rs 100 crore. Bikram Sen, chief executive of Arthveda Fund Management, said, “Once we invest money in projects, neutral agencies like CARE will analyse these and give star ratings, based on the performance. The rating would help the fund rectify faults and give an additional...

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Anuranjita Kumar appointed Citi India HR head

Citi India has elevated Ms Anuranjita Kumar as country Human Resources Officer. Ms Kumar replaces Mr Stephen Cronin, who has been elevated as Global HR leader. “With over 17 years of experience at Citigroup, Kumar has a proven track record as a highly effective human resources leader. She brings a wealth of people management experience to the role. I am confident that she will prove to be an asset to our India operations,” Citi India Chief Executive, Mr Pramit Jhaveri, said....

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Mobile payment services gaining currency

Mobile payment services are slowly but surely gaining currency in the Indian market, going by the spate of announcements in the last few days by global payment companies, banks, telecom vendors and mobile financial solution providers. All of them are keen to grab a slice of the Indian mobile payments market, which is seen as the next bastion of growth. Following the first phase of launch in Delhi NCR and Chennai in 2011, telecom operator Airtel on Thursday announced that its mobile wallet service — airtel money — will now be available in 300-plus...

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SBI plans to raise Rs 7,900 cr through preferential issue to Centre

State Bank of India is looking to raise around Rs 7,900 crore through preferential issue of shares to the Government of India, the bank said in an announcement on the BSE. The bank has fixed the issue price at Rs 2,191.69 per share, for the preferential issue. This includes a face value of Rs 10 per share and a premium of Rs 2181.69 per share....

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Canara Bank bullish on lending to SHGs: CMD

Canara Bank is bullish on lending to women self-help groups and in contributing to the cause of women's empowerment and this is also a good business as the recovery rate is excellent, according to Mr S. Raman, the Chairman and Managing Director. He told reporters here on Thursday that the bank has lent more than Rs 1,000 crore to SHGs of women in the country and that “Andhra Pradesh in particular is in the forefront. It is a sort of silent revolution and it is not confined to one part of the country.” Later, Mr Raman participated in a convention...

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Centre nominates D. K. Mittal on RBI's central board

In a move that indicates that the Central Government may have more say in the functioning of the Reserve Bank of India, the former has nominated one more director on the central board of directors of the banking regulator. Mr D. K. Mittal, Secretary, Department of Financial Services, Ministry of Finance, is the second government nominee on the RBI board. This is the first time that the Government is having two nominees on the RBI's central board. Hitherto, the Secretary (Department of Economic Affairs), Ministry of Finance, was the only government...

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Citigroup set to exit HDFC

Citigroup is looking to sell its entire stake in housing finance major HDFC Ltd through a block deal on Friday. The bank currently holds 9.85 per cent in HDFC. According to agency reports, Citi is looking to raise between $1.86 and $2.07 billion from the sale. It is offering shares at between Rs 630 and Rs 703.55. On Thursday, HDFC shares closed at Rs 700.35, down 0.18 per cent. Mr Deepak Parekh, Chairman, HDFC Ltd, said the stake sale is in preparation for Basel III norms. Under Basel III it is very expensive for banks to hold equity of other...

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Allahabad Bank to recruit 1,600 probationary officers

Allahabad Bank is recruiting 1,600 probationary officers for vacancies across the country. The bank has specified that candidates with graduation and a total weighted standard score of 125 in the common written examination conducted by the Institute of Banking Personnel Selection (IBPS) are eligible to apply. The bank has said that it will conduct a group discussion which will be in the nature of a qualifying exam for the interview. The interview will be for 35 marks and the minimum required for qualifying the interview is 40 per cent or 14...

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RBI to issue Rs 1,000 notes with inset letter ‘R’

The Reserve Bank of India will shortly issue banknotes of Rs 10 denomination with inset letter ‘R’ in the Mahatma Gandhi Series. “The RBI will shortly issue Rs 1,000 denomination banknotes with inset letter ‘R’ in the Mahatma Gandhi series bearing the signature of D. Subbarao, Governor, RBI, and the year of printing on the reverse of the banknote,” the central bank said in a statement. The design of these notes to be issued now would be similar in all respects to the banknotes in the Mahatma Gandhi Series 2005 issued earlier. All the banknotes...

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Bank of Baroda inks pact with CARE

Public sector lender Bank of Baroda has signed a memorandum of understanding with rating agency Credit Analysis and Research Ltd (CARE) for the rating of micro, small and medium enterprises (MSMEs) which are either prospective or existing customers of the bank. “We believe that this MoU is an endorsement of our pursuit to retain and further gain the confidence of the financial services and MSME fraternity. We are committed to support all of Bank of Baroda’s efforts in the MSME sector and assist them through their journey of exponential growth,”...

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IOB to raise Rs 2,000 cr via pref allotment

Indian Overseas Bank will raise close to Rs 1,980 crore by making preferential allotment to Government of India and Life Insurance Corporation of India. IOB’s Committee of Directors for preferential issue of shares, on February 21, fixed Rs 97.82 (including premium of Rs 87.82) as the price for the allotment of equity shares on preferential basis to the GoI and LIC. While GoI will be allotted up to 17,12,32,876 shares for its capital contribution of up to Rs 1,675 crore, LIC would be allotted up to 3,09,37,467 shares (5 per cent of pre-issue capital)...

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HDFC Bank not to cut its ATM rollout plans

HDFC Bank does not intend to cut on its automated teller machines (ATM) rollout plan in spite of the Reserve Bank giving an in-principle nod for white label ATMs, which will be operated by non-banking companies, a top official said today. The bank will not cut its ATM rollout target as a result of the RBI’s draft guidelines allowing non-banking entities to set up ATMs, also called as white-label ATMs, said Mr Rahul Bhagat, HDFC Bank Head (Direct Banking Channels). Asked about the cost of setting up an ATM, Bhagat said up to 50 per cent of transactions...

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Indian Bank, United Bank on recruitment drive

Indian Bank is recruiting management trainees in the junior management grade scale I/probationary officers to fill up about 452 vacancies across the country. The bank has specified that candidates with a graduate degree in any discipline and a total weighted standard score of 141 in the common written examination conducted by the Institute of Banking Personnel Selection (IBPS) are eligible to apply. The selection will be based on both the marks secured in the IBPS exam as well as interview/group discussion. The minimum age requirement is 21...

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Citi faces multi billion-dollar write-down risk: Report

Financial services major Citigroup Inc may face a multi billion-dollar write-down as it begins to unwind its minority investment in the Morgan Stanley Smith Barney brokerage, says a media report. “Citigroup Inc is facing a potential multi billion-dollar write-down as it begins unwinding its minority investment in the Morgan Stanley Smith Barney brokerage,” the Wall Street Journal reported. Morgan Stanley has the right this spring to start buying Citigroup out of the joint venture, which was formed in 2009 and is expected to take full ownership...

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RBI panel for raising priority sector lending target for foreign banks to 40%

Given the inability of many banks to achieve the direct lending target in the agriculture segment, a Reserve Bank of India committee has recommended doing away with the ‘direct and indirect' lending distinction. Instead, it has suggested a composite target for agriculture and allied activities. However, the committee, headed by Mr M.V. Nair, Chairman and Managing Director, Union Bank of India, kept the priority sector lending target at 40 per cent of adjusted net bank credit (ANBC) unchanged. The committee has suggested revising the priority sector...

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UCO Bank to issue 3.13 cr equity shares to LIC on preferential basis

Kolkata-based UCO Bank on Tuesday proposed an issue of 3.13 crore equity shares to Life Insurance Corporation of India on preferential basis. The decision was taken by the board of directors at a meeting in Kolkata this afternoon. “The issue of 3.13-crore equity shares to LIC on preferential basis will be done at a price as determined in accordance with Securities Exchange Board of India (ICDR) Regulations 2009. It will be subject to approval of the Union Government, Reserve Bank of India and the bank's shareholders,” the bank said in a notification...

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Panel move will help meet priority sector lending target: United Bank ED

The recommendation to classify bank loans to non-banking financial companies (NBFCs) for on-lending to specified segments as priority-sector lending will help banks achieve their priority-sector targets, said Mr S.L. Bansal, Executive Director, United Bank of India, and Chairman and Managing Director-designate, Oriental Bank of Commerce. “Till March 2011, bank lending to NBFCs was allowed to be classified as priority sector lending and there was no cap on such lending. However, in April 2011, Reserve Bank of India disallowed banks to take that...

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Fitch downgrades Dhanlaxmi Bank

Rating agency Fitch on Tuesday said it has downgraded the ratings of Dhanlaxmi Bank due to the risks to the operating performance of the Kerala-based private lender and the vulnerability of its capital ratios. "Fitch Ratings has downgraded Dhanlaxmi Bank and its Rs 17-crore subordinated debt to long-term 'BBB-(ind)' from 'BBB(ind)' and simultaneously put them on Rating Watch Negative (RWN)," the agency said in a release here. The downgrade comes at a time when the private lender posted a net loss of Rs 36.87 for the third quarter ended December...

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RBI wants banks to hold more liquid assets

The Reserve Bank of India said on Tuesday that banks need to maintain additional liquid assets as part of Basel III guidelines, over and above previously mandated levels. Banks will need to adhere to these norms from the month or quarter ending June 2012, the RBI said in its draft guidelines on "Liquidity Risk Management and Basel III Framework on Liquidity Standards." Indian banks currently need to meet RBI-set requirements of cash reserve ratio (CRR), and statutory liquidity ratio (SLR). The CRR, or the share of deposits that banks must set aside...

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Mobile banking seeks boost

With Interbank Mobile Payment Service (IMPS) in place, banks are now leveraging their existing corporate clientele to replace day-to-day cash dealings at the ground level with mobile transactions. So far, 34 banks have registered with National Payments Corporation of India (NPCI) to enable mobile fund transfers between banks for their customers. While most of these banks have launched mobile banking services for their retail customers, some are busy laying the platform for institutional clients as well. For instance, Citi launched 'Cash-To-Mobile...

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PNB offer for nursing staff in Kerala

Punjab National Bank has introduced a special salary package for nursing staff of private hospitals in Kerala. It will be a zero-charge, zero-balance account which can be operated in any of the bank's branches. Mr K. V. Rajesh, Deputy General Manager and Circle Head, said in a statement that there is a provision for giving one month's salary advance in the form of overdraft for the account holders. RTGS and NEFT transactions are provided free of cost. The bank will provide free STM/Debit card and internet account also. There is a provision for...

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Bank of Maharashtra cuts base rate to 10.6%

State-owned Bank of Maharashtra (BoM) today slashed the base rate or minimum lending rate by 0.1 percentage point to 10.6 per cent. The bank has reduced the base rate from 10.7 per cent to 10.6 per cent on a monthly compounding basis, with effect from February 21, BoM said in a filing to the BSE. With the reduction, all kinds of loans linked to base rate would become cheaper by at least 0.1 percentage points. The benchmark prime lending rate (BPLR) would continue to remain unchanged at 15 per cent on a monthly compounding basis, it said....

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