World Bank assures support for BRICS Development Bank

World Bank today expressed its willingness to support the proposal of BRICS nations to set up a Development Bank to insulate their economies from the ongoing economic problems, rising oil prices and currency volatility. "India was one of the sponsors of this idea (BRICS bank). And partly because they wanted more funds for infrastructure development...if they do develop an institution, the Bank will want to be partner with it", World Bank President Robert Zoellick told reporters at the end of his five-day visit to the country. The summit of BRICS...

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Tax of Rs 181 crore realised in HSBC bank Geneva cases

The Income Tax department has realised taxes of about Rs 181 crore with respect to the cash deposits of Indians who had unreported accounts in HSBC bank Geneva, government said today. "An amount of about Rs 181 crore has been realised," Minister of State for Finance S S Palanimanickam told Lok Sabha in a written reply. He was asked if the government was able to receive taxes on cash deposits by some of the 700 Indians who had unreported accounts with HSBC bank Geneva. The Minister replied in the negative when he was asked whether some of the persons...

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Vijaya Bank raises Rs 147 cr thru preferential issue to LIC

Vijaya Bank has raised Rs 147 crore through preferential allotment of equity shares to Life Insurance Corporation of India. The capital raised would be utilised to shore up the capital adequacy of the bank. The bank issued 2,28,72,258 shares to LIC at Rs 64.57 per share.“The funds raised would also be utilised to finance our growth in 2012-13,” Ms Shubhalakshmi Panse, Executive Director, Vijaya Bank, told Business Line. The bank is looking at 20 per cent growth next fiscal. The bank's capital-adequacy ratio as on December 31, 2011, stands at 12.11...

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Karnataka Bank to open 50 branches next fiscal

Karnataka Bank Ltd plans to open 50 branches during 2012-13. Speaking at the inauguration of the 500th branch of the bank at Shiruru in Udupi district, Mr P. Jayarama Bhat, Managing Director of the bank, said the bank will open three more branches during the fiscal, taking the total number to 503. The bank will set up 50 more branches and 250 ATMs during the next financial year, he said. Karnataka Bank now has 350 ATMs. The bank is keen on working towards rural development. The 500th branch at Shiruru is oriented to reach out to the people in rural...

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Govt nominee director quits IDBI Bank board

IDBI Bank has announced that Mr Rakesh Singh, a director, has resigned from the bank's board. This follows his appointment as Chief Secretary of Punjab. Mr Singh, who was additional Secretary in the Department of Financial Services, was a Government nominee in IDBI Bank's board. He took charge as Chief Secretary of Punjab on March 26....

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ICICI Bank to get $100-m credit line from ADB for energy projects

The Asian Development Bank will provide a $100-million credit line to ICICI Bank to fund renewable energy and energy efficiency projects. The central bank's board approved the sanction on Wednesday. The credit will be available to projects identified by the ADB and ICICI Bank. This is taking into consideration Indian Government objectives and overall impact assessment, according to ADB. The bank's support will help in developing renewable energy and energy efficiency in priority sectors. It will also catalyse local commercial bank financing to...

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Deutsche Bank sees 50 bps cut in RBI policy in Q1

German lender Deutsche Bank expects the Reserve Bank of India (RBI) to cut rates by 50 basis points (bps) till June as it will otherwise lead to further imbalance on fiscal and current account fronts. "The Reserve Bank could cut rates by 25 percentage points each in April and June, if fuel price increase decision is pushed all the way out to late June like last year," the bank said in its report on monetary policy in Asia. "The Reserve Bank has been keen to cut rates since the January policy meeting, but with both global and local economic indicators...

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Muthoot Estate can't accept public deposits: RBI

The Reserve Bank of India (RBI) today directed Muthoot Fincorp arm -- Muthoot Estate Investments -- not to accept any deposits from public in any manner. "The RBI has directed Muthoot Fincorp Ltd to stop allowing the use of its premises or branches or officials, in any manner by Muthoot Estate Investments for accepting deposits from public," the RBI said in a notification. Muthoot Fincorp, a Kerala-based non-deposit taking and non-banking financial company (NBFC), has a partnered with its arm Muthoot Estate Investments. "Acceptance of deposits...

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Muthoot Estate can't accept public deposits: RBI

The Reserve Bank of India (RBI) today directed Muthoot Fincorp arm -- Muthoot Estate Investments -- not to accept any deposits from public in any manner. "The RBI has directed Muthoot Fincorp Ltd to stop allowing the use of its premises or branches or officials, in any manner by Muthoot Estate Investments for accepting deposits from public," the RBI said in a notification. Muthoot Fincorp, a Kerala-based non-deposit taking and non-banking financial company (NBFC), has a partnered with its arm Muthoot Estate Investments. "Acceptance of deposits...

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Third party motor premium rates set to rise

The motor third party premium rates will go up by up to 20 per cent from April 1. The Insurance Regulatory and Development Authority has upwardly revised third party premium rates from different categories of vehicles for 2012-13. In an order hosted on IRDA's Web site, its Chairman, Mr J. Hari Narayan, said the claims payout showed an upward trend because of increase in court awards, wages and inflation, etc. The increase in premium rates for different category of vehicles is in the range of 5-20 per cent. For private cars and two-wheelers, the...

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RBI keeps ‘Ways and Means Advances' to States at last year's level

The Reserve Bank of India has pegged the aggregate normal Ways and Means Advances (WMA) limit for State governments at Rs 10,240 crore for 2012-13. The WMA limits for States, inclusive of the Union Territory of Puducherry, are unchanged from the last year's limits, said the central bank in a statement. The RBI provides WMA facility to States banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments. A State entrusts its banking business — including payments, receipts, collection, remittance of...

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IOB to hire 1,500 probationary officers

Indian Overseas Bank has notified 1,500 vacancies for probationary officers in junior management grade. Candidates, who had qualified the common written examination for probationary officers conducted by the Institute for Banking Personal Selection, are eligible to apply. The standard total weighted score for general category is minimum 120 while for reserved categories, it is 105. The online registration for recruitment will open on March 30, 2012 and the last date for applying is April 19, 2012, according to a notification issued by the bank....

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SBI to lend Rs 2,500 cr to Neyveli Lignite Corpn

State Bank of India has agreed to lend Rs 2,500 crore to Neyveli Lignite Corporation Ltd to part-fund its 2 x 500-MW Neyveli New Thermal Power Station project. The first unit is expected to be commissioned in June 2015 and the second in December 2015. The project was sanctioned at an estimated cost of Rs 5,907 crore and would have a debt-equity ratio of 70:30. It would replace the existing 600-MW TPS-1 power plant that has been in existence for about 50 years. Fuel would come from the mines operated by the company and the power generated would...

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Jagaran Microfin sells loans worth Rs 17 crore to Ratnakar Bank to release capital

One-year old Jagaran Microfin has sold 50% of its assets to Ratnakar Bank in a rated pool transaction to release capital and push business growth. The deal will help Ratnakar Bank in meeting its priority sector lending commitment. The Kolkata-based microfinance company has sold a pool of small loans worth Rs 16.91 crore to the private commercial bank last week. Unitus Capital has arranged the deal. ""This transaction will not only boost the confidence of investors but also go a long way to facilitate funding for the relatively new MFI working in...

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PNB raises Rs 1,590 crore by issuing preferential shares to LIC

State-owned Punjab National Bank (PNB) has raised Rs 1,589.90 crore by issuing shares to Life Insurance Corporation (LIC) on preferential basis. On receipt of allotment money of Rs 1,589.90 crore from LIC, the bank has allotted 1.58 crore (1,58,40,607) shares of the face value of Rs 10 each at a premium of Rs 993.69 to the insurer on preferential basis, the bank said in a filing to the BSE. PNB is in the process of issuing up to 1.28 crore shares to the government, which holds 58 per cent in the bank. Last year, PNB got a capital infusion of Rs...

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Income Tax department mulling prosecution of HSBC bank in black money cases

The Income Tax department is said to be mulling prosecution against the HSBC bank for allegedly being the conduit for Indians in stashing money abroad. The department, which had received more than 700 names in a list of black money account holders in HSBC bank in Geneva reportedly provided by the French government, has approached the Central Board of Direct Taxes (CBDT) in this regard, sources said. The I-T department is believed to have recommended that action may be initiated against the bank under the provisions of Income Tax Act relating to...

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Axis Bank point-of-sale terminals cross 2 lakh

Axis Bank, the third largest private sector bank, now has over 2 lakh point-of-sale terminals. The bank’s PoS network is present across major segments such as departmental stores, pharmacies, super and hyper markets, jewellers, hotels, retail fashion, hospitals, education institutions, government utility payments, insurance, dining and fuel pumps in over 692 cities, said a bank press release. Earlier, Axis Bank launched Dynamic Currency Convertor which offers the flexibility to international cardholders to pay in their local currency. It has already...

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Corp Bank extends loans at 3% interestrate to fisherwomen

Corporation Bank has extended loans at three per cent interest to around 2,700 fisherwomen. This follows a scheme of the Karnataka Fisheries Department to finance the fishing community at three per cent interest rate. Launched in association with the Dakshina Kannada and Udupi Co-operative Fish Marketing Federation through the formation of joint-liability groups (JLGs), the loan carries interest rate of 3 per cent for beneficiaries. It is repayable in 35 months. Addressing the gathering of fisherwomen during the launch of the scheme in Mangalore...

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IOB to open 400 branches next fiscal

Indian Overseas Bank (IOB) is planning to open 400 branches during 2012-13. Mr M. Narendra, Chairman and Managing Director of IOB, told Business Line that the bank wants to increase the total number of branches from the present 2,616 to 3,000 by the end of the next fiscal. The bank has opened nearly 540 branches in the last 18 months. This includes 432 branches opened during the current financial year. Another 14 branches will be opened by this month-end. Mr Narendra said the bank had 144 branches in Karnataka at the end of February 2012. Stating...

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Indian Bank asked to reinstate compulsorily retired clerk

The Madras High Court, in a recent order, directed Government-owned Indian Bank to reinstate a clerk/shroff, who was compulsorily retired by order dated July 8, 2004 on charge of alleged stealing of a pay order. The Court ruled that Central Industrial Tribunal, which investigated alleged charge against Mr G.R. Swamy, “committed a grave error” in not adhering to legal precedents. According to the bank clerk, he joined Bank in 1978 and was posted to work in Chintadripet branch. The allegation against him was that while serving in the branch, he had...

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Central Bank confident of maintaining NIM in Q4

Central Bank of India (CBI) is hopeful of maintaining its Net Interest Margin (NIM) at the current level of around 2.53 percent in the current quarter, a top bank official said. “Net interest margin will be the maintained (at the same level of the last quarter). But, the NPA level may not see a dramatic change during the current quarter,” said the official. During the last quarter (September—December), the gross NPA of the bank rose to 3.69 percent from 2.34 percent a year earlier. Similarly, its net NPA rose to 2.04 percent from 0.71 percent reported...

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SBI hikes interest rate on short-term deposits to 8%

State Bank of India hiked interest rates on retail term deposits having maturity periods of less than one year by 25-100 basis points. The bank announced this in a notice to the Bombay Stock Exchange, on Tuesday. The interest rate on deposits having maturity periods ranging between seven days and less than one year has been hiked to a uniform 8 per cent. According to an official from the bank the hike is to boost deposit growth as the financial year draws to a close. Banks are also revising short-term deposit rates upwards as they are facing liquidity...

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Sidbi offers Rs 30 crore support to microfinance companies

The state-run Small Industries Development Bank of India or Sidbi has committed 30% of its Rs 100-crore microfinance development fund to some of the country's poorest microfinance companies, which are yet to get significant commercial funding post the liquidity crisis of 2010-11. MFIs, especially the smaller ones, operate in the country's interiors and provide a veritable financial link to the poorest sections of the population, which are not yet covered by the banking system. Sidbi's support will offer a fresh lease of life to these smaller MFIs...

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SBI rolls out one-time settlement scheme for small units

State Bank of India has launched a one-time settlement (OTS) scheme for recovering bad loans in its micro, small and medium enterprises portfolio. To make the scheme attractive, the bank is also offering discounts to borrowers. India's largest bank has seen a net increase of Rs 3,902 crore in bad loans in its MSME portfolio in the first nine-months of the current financial year. Given the increase in bad loans, the bank has launched a non-discretionary and non-discriminatory scheme of OTS to give relief to MSME borrowers affected by the downturn...

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ICICI Bank to pay customer Rs 25K for freezing his account

The ICICI Bank has been ordered by a Delhi consumer forum to pay one of its customers Rs 25,000 as compensation for freezing his account, leading to the bouncing of his loan repayment cheque, to his embarrassment. "Since, the saving account had been put under freeze, the ICICI bank dishonoured the cheque. It caused embarrassment and harassment to the complainant. It was due to the deficiency in service on the part of the bank. "We believe the case of the complainant and hold that the acts of the bank were due to negligence of its officials. Those...

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Opposition for Khandelwal panel recommendations

The Syndicate Bank Staff Association (SBSA) has decided to gear up the agitation against the recommendations of the Khandelwal Committee. The Khandelwal Committee had recommended abolition of the 40- year-old method of bi-partite negotiations and collective agreement at the industry level for improving the wages and service conditions of the bank employees.  Mr K.S. Bhat, All-India Secretary, SBSA, said that the recommendations of the committee for bank-wise wage revision in place of the industry-level agreement, would cause problems in the...

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BoI launches online remittance service for NRIs in UK

Bank of India has launched an online remittance service for non-resident Indians in the UK. Using this service, the customer no longer has to visit a branch and can execute the online money transfers from the comfort of his home or office, said a press release issued by the bank. The bank is offering the service jointly with TimesofMoney. BoI has an overseas presence of over 65 years. It has offices in 19 foreign centres spread over five continents, where its services are extended through 49 outlets, including seven in the UK. Almost 25 per cent...

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Debit cards based on RuPay platform launched

State Bank of India, Bank of Baroda, Bank of India, and Union Bank of India on Monday formally launched debit cards based on the indigenously developed RuPay payment platform. The RuPay platform has been developed by the National Payments Corporation of India as a rival to global payment product companies such as MasterCard and Visa. The RuPay branded debit cards will be accepted at all 91,000 ATMs and over six lakh point of sale (POS) terminals in the country. In due course, these cards would be accepted on Internet and also at ATMs/POS terminals...

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Citibank's multi-channel drive to boost retail growth

As it embarks on growth through retail banking for the second time around, Citibank is looking to acquire customers through multiple channels. No longer will the foreign bank be solely dependent on direct selling agents (DSAs). It is building its own sales force, called ‘universal bankers'. Universal bankers This concept (universal bankers) has been introduced for the first time in India, as a pilot project for the Asia-Pacific Region. Over the last 18 months, the bank has appointed about 350-400 universal bankers nationally. This universal banker...

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SBI plans one more zone in Bangalore circle

State Bank of India plans to restructure its Bangalore circle to include one more zone. The move will enable the bank to focus better on the Bangalore zone, which contributes to 70 per cent of the circle's business, Mr Ashwini Mehra, Chief General Manager, SBI – Bangalore Circle, told Business Line. “We want to create a separate zone for the coastal belt, as we feel there is scope for expansion there. This way, we will have a separate zone for Bangalore city,” he said. SBI – Bangalore circle has two zones currently: Bangalore and Hubli. “The accent...

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