RBI to infuse Rs 12k cr next week

The Reserve Bank of India (RBI) today announced an auction under open market operations (OMOs) to purchase Rs 12,000 crore of government bonds on Tuesday. No OMOs were conducted this week.“RBI must have come up with the OMO keeping in mind the pressure on liquidity conditions ahead of advance tax payments on June 15,” said a bond dealer with a public sector bank. According to the issuance calendar, bond sale auctions are not scheduled next week.The government today raised Rs 7,000 crore under the new 10-year benchmark bond at a coupon rate...

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Delayed reforms: SEBI chief blasts govt

Anguished over delay in key reforms for "years and years", SEBI Chairman U K Sinha today said there is an urgency to revive investor sentiment and arrest the faltering economic growth."Some of the reforms, which have long been pending and one example being pension reforms... it has been years and years that some of these reforms...are yet to come through," Sinha said at the Skoch Summit here.Listing out the steps that are needed urgently, he said, "We all know what happened to FDI in retail, the pension Bill, and the pension reforms are yet...

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RBI to banks on unique ID codes

Banks must assign unique customer identification codes to their new as well as existing clients by May 31, 2013, the Reserve Bank of India said in a notification on Friday. The unique identification code will help in stronger enforcement of know-your-customer norms, and aid banks in identifying customers, tracking the facilities availed, etc.Source: Business Standa...

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RRB personnel observe 1-day strike

Close to 74,000 officers and employees working at 16,914 branches of 82 Regional Rural Banks (RRBs) in 635 districts of the country observed a one-day strike on Friday.All the branches and offices of the RRBs remained closed, according to a press statement issued by the All-India Regional Rural Bank Employees’ Association (AIRRBEA). Some of the key demands of these employees included parity of pension, formation of the National Rural Bank of India, and regularisation and absorption of part-time workers in RRBs.According to Mr Dilip Kumar Mukherjee,...

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Corp Bank to hold doctors' meet

Corporation Bank will conduct a doctors' meet in Mangalore on June 9.A press release said here that Mr Ashwani Kumar, executive director of the bank, will preside over the function.Dr K. Jayaprakash Shetty, president of Indian Medical Association, Mangalore; Dr Muralee Mohan C, president of Indian Dental Association, Mangalore; and Prof M. Shantharam Shetty, Vice-Chancellor of Nitte University, will be the guests of honour.The release said that the bank's ‘Corp Doctor Plus' scheme is specially designed to meet the credit requirements of the...

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IRDA seeks half-yearly reports on trade credit insurance

The Insurance Regulatory and Development Authority has directed the non-life insurance companies to submit half-yearly and yearly reports on trade credit insurance business.``With a view to maintain consistency in reporting and better analysis of the credit insurance portfolio, the Authority has devised certain forms for reporting under credit insurance,’’ Mr Randip Singh Jagpal, Joint Director, IRDA said in a circular issued on Thursday.All the non-life insurers should submit half-yearly reports for the financial year 2011-12 within 15 days,...

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Vijaya Bank’s special deposit scheme

Vijaya Bank has launched a 100-day campaign to augment its retail business and customer acquisition.A press release from the bank said the campaign started on June 1 and will end on September 8. During this period, the bank is offering a V-Vriddhi Term Deposit, a 400-day limited period term deposit scheme, at 9.75 per cent per annum.The bank is also offering a V-Vriddhi Recurring Deposit product with a fixed maturity at a higher rate of interest, during the campaign period. Besides, vehicle loan customers will get a 10-basis points concession,...

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ICICI Bank, Yes Bank ink deal with Exim Bank of Malaysia

India's private lenders ICICI Bank and Yes Bank signed a collaborative deal with the Export -Import Bank of Malaysia Berhad (Exim Bank) to enhance trade, especially for palm oil, between the two countries.Through this deal, Exim Bank, a development financial institution wholly-owned by Malaysia's Ministry of Finance, will provide credit lines to ICICI Bank and Yes Bank to facilitate imports of goods from the South-East Asian nation."We have entered into a USD 100 million master facility agreement in order to facilitate ongoing trade and finance...

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K C Chakrabarty may get 2-yr extension as RBI dy governor

The government is likely to extend K C Chakrabarty’s tenure as deputy governor of the Reserve Bank of India (RBI) by two years.Chakrabarty, appointed deputy governor in June 2009, was given a three-year term that ends on June 14.The other three deputy governors are Subir Gokarn, Anand Sinha and H R Khan.A deputy governor in the central bank can be appointed for five years and the retirement age is 62 — the age limit is 60 for other RBI officials. A candidate has to be younger than 60 to be eligible. An exception to this rule was made during...

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SBI cuts rate on short-term deposits

State Bank of India has cut interest rates on short-term retail deposits by 0.25 per cent.This move suggests that the bank is flush with liquidity. It is also a pointer to the fact that the softer interest rate regime, heralded by the central bank through a 50 basis points cut in the repo rate in April, is getting entrenched.After the RBI cut the interest rate at which banks borrow funds from it (repo rate) on April 17, SBI had cut the retail term deposit rates across various tenors by 25 to 100 basis points. A basis point is one hundredth...

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Now, public sector banks on ‘USB' drive

Opening USBs or ultra-small branches is the new mantra for public sector bankers in the country.Over 900 villages, or about 2.5 per cent of the villages, where public sector banks have implemented financial inclusion programme have USBs. For the past few years, banks have been trying to reach un-banked villages as part of a regulatory mandate.The roadmap to financial inclusion had envisaged covering 74,414 villages with population above 2,000 by March 31, 2012. Recently, the Reserve Bank of India said that banks have covered 74,199 villages...

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Govt approves Rs 632-cr capital infusion in RRBs

The Government today approved Rs 632 crore capital infusion in cash-starved regional rural banks (RRBs) to improve their capital adequacy and lending capacity to the agriculture sector.“RRBs will get Rs 632 crore from the Central Government," said a Minister after the meeting of the Cabinet.Following recommendations of the Reserve Bank Deputy Governor, Dr K.C. Chakrabarty, the Government had initiated recapitalisation process in 2009-10 for 40 financially weak RRBs, which mainly provide credit to rural and agriculture sectors.However, till...

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SBI looking to reduce bad loans by 40% this fiscal

Banking behemoth State Bank of India wants to reduce 40 per cent of its stock of non-performing assets during this year, according to a top bank official.“There could be blips month to month, but during the year we are focusing on at least a reduction of about 40 per cent in the stock of NPAs as on March 2012,” Mr A. Krishna Kumar, Managing Director, SBI, told Business Line.As on March 31, 2012, SBI's slippages were at Rs 26,976 crore, up from Rs 18,145 crore in FY11. The bank's gross NPAs rose to 4.44 per cent (3.28 per cent in FY11), while...

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RBI asks banks to put in place policy on unclaimed deposits

The RBI has asked banks to put in place a Board approved policy on classification of unclaimed deposits; grievance redressal mechanism for quick resolution of complaints; record keeping; and periodic review of such accounts. This is with a view to further strengthen the regulatory framework for inoperative accounts and unclaimed deposits....

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State Bank of India (SBI) has taken competition head on by launching a personal loan scheme against property loans at interest rates lower than that of some of its private peers.The scheme, aimed at existing home loan borrowers and linked to the price of property, is offering personal loan at 11.25% to existing home loan customers.The offer is similar to the top-up scheme of other players such as ICICI Bank and home loan provider HDFC, which have pegged their loans at 12.25% and 12.50%, respectively. The new product, called 'SBI Home Equity...

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Allahabad Bank may open 250 branches this year

Allahabad Bank plans to open 250 branches this year, significantly more than the 100 branches opened during the last fiscal.“With over 2,500 branches across the country, our focus now is to ensure that we are seen as a pan-India bank,” Mr T.R. Chawla, Executive Director, Allahabad Bank, told Business Line on the sidelines of the Global Investors' Meet 2012 in Bangalore on Wednesday. According to him, being spread out across the country will help reduce risk for the bank.The bank has already recruited 1,600 probationary officers and 350 specialist...

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HDFC Bank plans to roll out 10-currency travel card

The increase in corporate travel to international destinations and the rise in currency fluctuations seem to have given a fillip to multiple currency forex cards. The demand for such cards is on the rise, senior bank officials said.A forex or travel card is a prepaid card which can be loaded with foreign currency. It can be used like a debit/credit card while travelling overseas.“Multicurrency card enables customers to manage transactions across various currencies in one single card and helps them to lock in the currency exchange rates,” said...

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United Bank to hire over 700 clerks

United Bank of India is recruiting 751 clerks across the country.The recruitment for these posts will be done state-wise. Candidates can visit the bank's Web site www.unitedbankofindia.com and get more details regarding state-wise, category-wise vacancy, eligibility criteria, selection procedure etc.Those who have appeared for the common exam conducted by IBPS and hold a valid score card are eligible to apply.Applications have been invited online and are open from June 8 to June 22....

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Union Bank ATM for differently-abled

The Union Bank of India along with ATM manufacturer NCR Corporation has launched the ‘Accessible' or the 'Talking ATM’ for the differently abled.The public sector lender opened its 4,000th ATM at the Blind People Association in Ahmedabad.An ATM for the differently abled had been specified in the Reserve Bank of India circulars in 2008 and 2009. The central bank had stated that all banking services including ATM cards need to be offered to all customers without any discrimination.The ATM has headphones attached for customers to hear the instructions...

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SBI and Geojit BNP Paribas sign an agreement to extend PIS to NRIs

Geojit BNP Paribas Financial Services Ltd. and State Bank of India have inked an agreement to extend portfolio investment services (PIS) to NRIs, mainly from the Gulf region.Using the SBI PIS account, NRIs can purchase and sell shares and convertible debentures through stock exchanges, subject to limits prescribed by the RBI. The investments can be on repatriable or non-repatriable basis.NRIs can visit an SBI branch in the Middle East to open a NRE PIS account for repatriable and NRO PIS account for non-repatriable investments to commence investing...

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Housing and Urban Development Corporation plans to raise Rs 10,000 crore through tax-free bonds

State-owned housing and urban infrastructure developer Housing and Urban Development Corporation (Hudco) today said it plans to raise about Rs 10,000 crore through tax-free bonds and other instruments this fiscal to fund business expansion."We are planning to raise about Rs 10,000 crore in 2012-13," Hudco Chairman and Managing Director V P Baligar said after announcing financial results of the company here.Of the total resource mobilisation target for the current fiscal, he said, Rs 5,000 crore would come from tax-free bonds.Besides, some amount...

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Syndicate Bank launches ‘mega gold loan' campaign in AP

Syndicate Bank has launched a ‘Mega Gold Loan' campaign across all its branches in Anantapur, Kurnool and Kadapa districts.“The campaign, coinciding with crop loan season, is expected to serve the farming community and supplement the need of crop finance,'' Syndicate Bank said in a release.Under the scheme, Rs 1,900 per gram of gold of 75 per cent of net value of told would be given as loan if the tenure of is less than 12 months.For loans with a tenure of 12-24 months, Rs 800 per gram or 75 per cent of net value will be offered at 11.75 per...

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T. V. Raghunath is new MD of Kotak Mahindra Capital

Kotak Mahindra Capital Company (KMCC) has appointed Mr T. V. Raghunath as MD and CEO with effect from July 1. He is currently serving as Head-Group Strategy at Kotak Mahindra Bank. He will report to Ms Shanti Ekambaram, Director, KMCC, and Group President, Corporate & Investment Banking.In addition, Mr S. Ramesh, the present Chief Operating Officer (KMCC) will take over as Joint Managing Director and Board Member from July 1....

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Postal dept to set up 1,000 ATMs by 2014

The Department of Posts will be setting up about 1,000 ATMs in different parts of country by 2014, according to Ms Manjula Prasher, Secretary, Department of Posts, Government of India. Speaking at an award-presentation ceremony of the department here on Tuesday, Ms Prasher said the department had taken up a technology-induction programme to improve the services. The work on providing online connectivity between various post-offices and circles was currently under way. The Postal Department was also participating in the ‘Aadhaar' project by...

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RBI directs banks not to levy foreclosure charges

The Reserve Bank of India has directed banks to not levy charges for foreclosure/prepayment of home loans taken on floating interest rate basis, with immediate effect. In a notification, the RBI said though many banks voluntarily abolished prepayment penalties on floating rate home loans in the recent past, there was a need to ensure uniformity across the banking system. The removal of foreclosure charges/prepayment penalty on home loans will lead to reduction in the discrimination between existing and new borrowers, and competition among...

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Bolloju appointed interim CEO of Deutsche Bank India

Shrinath Bolloju will succeed Gunit Chadha as the chief executive officer for Deutsche Bank’s India business, industry sources told Business Standard on Monday.Bolloju, currently chief operating officer of the bank in India, has been appointed for an interim period. The Reserve Bank of India had approved the appointment, sources said.Chadha has relocated to Singapore after he was named as the co-chief executive of Deutsche Bank’s Asia-Pacific operations. He and Alan Cloete (also appointed co-chief executive for the Asia-Pacific) have also joined...

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RBI hints at cut in interest rates

Ahead of its mid-quarterly policy review, the Reserve Bank on Monday hinted at cut in interest rates, saying moderation in inflation due to lower economic growth and cooling global oil prices provide room for easing monetary policy.“.. The growth is somewhat lower than expectation and that may have positive, moderating impact on core inflation,” said Dr Subir Gokarn, Deputy Governor, RBI.“... Oil prices have come off somewhat more than expected. Those are the two factors that suggest more room (for easing monetary policy),” he said.The central...

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Karnataka Bank to launch mobile banking soon

Karnataka Bank Ltd will launch mobile banking soon. Speaking at a function at the Founders' Branch of the bank at Dongarakery in Mangalore on Monday, Mr P. Jayarama Bhat, Managing Director of the bank, said that the bank will start offering mobile banking facility in the next two months.With this, the customers of the bank can carry out their transactions through their mobile phones.Mr Bhat said that the bank, which crossed a business level of Rs 53,000 crore in 2011-12, is planning to do much more in the years to come. The bank has set a target...

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Muthoot Finance eyes 10% growth in assets under management

Gold loan financier Muthoot Finance Ltd is looking at 10 per cent growth in its assets under management (AUM) this fiscal, its Managing Director, Mr George Alexander Muthoot, has said.This is much lower than the 55 per cent increase in AUM seen in 2011-12 and over 100 per cent growth in 2010-11. As of end March 2012, the company had AUM of about Rs 24,417 crore. “This year will be a year of consolidation for us,” Mr Muthoot said, adding that bottomline growth is also likely to be flat during 2012-13.Muthoot Finance's profit after tax recorded...

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