ATM trick: Bank cheated of of Rs 1 cr

The Cyber Crime Cell of Mohali, in a joint operation with the Kerala Police, claims to have busted an inter-state gang, first of its kind in the country, which duped a Kerala-based bank of over Rs 1 crore, adopting a unique method of withdrawing money using ATM cards.A total of five people have been arrested. All from upper-middle class families and not very well-educated, the accused are residents of Ludhiana, Kajheri (Chandigarh) and Kangra (Himachal Pradesh). The five are members of one gang. Two more gangs, claims the Cyber Cell, are yet...

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Karnataka Bank inks pact with Tata Motors for vehicle loans

Karnataka Bank has signed a memorandum of understanding with Tata Motors Ltd to finance vehicles to the bank’s customers.A press release by the bank said here that it has joined hands with Tata Motors Ltd, Mumbai, for vehicle loans on easy terms to the company's customers.The loans will also be available under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme to the eligible customers, and no collateral security or guarantee would be insisted for such loans.Mr Mahabaleshwara M.S., General Manager (Credit-Retail Finance...

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Axis Bank to raise funds via pvt placement basis

Axis Bank Ltd plans to raise resources by issuing debt instruments on private placement basis.The bank, in its notification to the stock exchanges, however did not indicate the quantum of funds it has proposed to raise.The board of directors on Friday approved borrowing/raising funds by issuing debt instruments on private placements basis within the limits prescribed by the RBI and other regulatory authorities from eligible investors, in one or more tranches, the bank said.Accordingly, as per the business plan for the year, Axis Bank has planned...

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Bank of America, J.P. Morgan, Goldman Sachs among 15 banks downgraded by Moody’s

Moody’s Investors Service has downgraded the ratings of the world’s 15 biggest banks including Bank of America, J.P. Morgan and Goldman Sachs, saying that they have significant exposure to volatility and capital market risks.Some banks called the Moody’s move backward looking, arbitrary and unwarranted.“All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities,” said Mr Greg Bauer, Moody’s global banking Managing Director on Thursday.However, they...

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Corporation Bank offers e-seva service for Sri Mookambika Temple

Corporation Bank has facilitated ‘e-seva’ or ‘e-offering' service through its e-payment gateway.A bank release said here that under this, devotees of Sri Mookambika Temple across the world can just click in and offer or book for different sevas.The release said that the facility is very simple. For e-seva, devotees can access www.kollurmookambika.co.in and select the type of seva from the list displayed. They need to fill in the details like name, address etc.For payment, they can select payment option through CorpBank Payment Gateway and fill...

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SBI not to levy charges on inter-core transactions

State Bank of India has decided to make inter-core transactions ‘at par’, that is, free of charges, with immediate effect.The revised charges shall be effective from the date of issuance of the relevant circular, which is June 18 (Monday).The revised instructions are being put in place in the system by the bank’s IT department. RATIONALISATION EFFORT Branches have been told to ensure manually that no service charge is recovered for all inter-core transactions till it is enabled in the system.This is part of a drive for rationalising service...

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PAN becoming mandatory for education loans

Several banks have tightened the norms for granting education loans following rising defaults in this segment.They have made submission of PAN (Permanent Account Number) details of the applicant’s parent/guardian (often the co-borrower) mandatory this year along with the loan application.The Indian Banks’ Association (IBA) has pointed out that since students may not require PAN during their period of education, submission of PAN details should not be made a precondition for loan sanction. Yet, considering the ease of getting a PAN card, the...

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Stricter norms, lower returns likely for tax-free infrastructure bonds

Cash starved core projects may soon get a breath of new life with the finance ministry set to issue fresh guidelines for tax-free infrastructure bonds that were announced in the Budget. But government officials indicated that under the new guidelines, the bonds may offer lower interest rates and also lesser commission. Further, only state-run firms will be allowed to raise such money from the market.The move comes after a meeting last week of finance ministry officials with representatives of public sector firms that plan to float such tax...

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Sebi notifies new stock exch norms

Market regulator Sebi today notified new norms for ownership and governance of stock exchanges and other market infrastructure institutions – a move which among others could pave way for setting up of new bourses and also permit the exchanges to get listed on other bourses.As per the new norms, every recognised stock exchange shall have a minimum networth of Rs 100 crore at all times and at least 51 per cent of stake has to be held by public.Besides, no Indian entity, either individually or together with persons acting in concert, would be...

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Nabard allocates Rs 7,515 cr for crop re-finance

Nabard has allocated Rs 7,515.45 crore for crop loan refinance in Andhra Pradesh for the financial year 2012-13. The loan will be allocated to Co-operative Banks and Regional Rural Banks in Andhra Pradesh for supporting seasonal agricultural operations during the year.This is an increase of 41.6 per cent over the Rs 5,307-crore disbursed during 2011-12.Out of the total Rs 7,515 crore, an amount of Rs 4,075 crore will be earmarked for co-operative banks and Rs 3,440.45 crore for the five regional rural banks. This would help the two banking...

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United Bank goes green, waives charges on e-payments

As a part of its green initiative campaign, Kolkata-based United Bank of India has waived charges on payments made through the electronic mode.The bank has waived charges on funds remittance by account holders through NEFT for an amount of Rs 1 lakh. It has also eliminated charges on remittance of funds by walk-in customers through NEFT for up to Rs 50,000, said a bank statement.This apart, customers can carry out their transactions at any branch and through alternate channels such as Internet banking and mobile banking free of charge. Customers...

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It will be ATMs galore in next 6-12 months

India will have another 60,000-80,000 automated teller machines (ATMs) in the next 6-12 months, Mr D. K. Mittal, Financial Services Secretary, said.This means every branch of every bank which is into core banking solutions will have an automated teller machine (ATM) installed in its premises, Mr Mittal said at an Assocham conference here on Thursday.He said the rollout had already started in Maharashtra and in the next one year there will be an ATM network revolution in India.Currently, there are over 90,000 ATMs in the country. To encourage...

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YES Bank plans to raise Rs 750 cr tier-II capital by December

Private sector lender YES Bank plans to raise quasi-capital (tier-II) of Rs 750 crore from the domestic market between now and December-end, it’s Managing Director and Chief Executive Officer, Dr Rana Kapoor, said.The bank is also on target to raise primary equity of $300-400 million in 2013 through the Global Depository Receipt (GDR) or Qualified Institutional Placement (QIP) route, Dr Kapoor told Business Line here on Thursday.YES Bank’s capital-adequacy ratio stood at 17.96 per cent at March-end this year against 16.5 per cent reported a...

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Public sector banks assured all support if global crisis worsens

The Government will stand solidly behind public sector banks to help them tide over difficulties that may arise if and when the global financial crisis gets aggravated, a top Finance Ministry official has said.“We have a back-up plan for banks if the crisis aggravates. We don’t anticipate it (crisis to aggravate). But if it does happen, then the Government is solidly behind the public sector banks,” Mr D. K. Mittal, Financial Services Secretary, said at an Assocham conference here.He also played down concerns over the health of the state-run...

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New general managers at SBT

Three general managers have taken charge at State Bank of Travancore (SBT). They are Mr Kesav Kumar T., Mr Chandrasekhara Sarma A., and Mr K. N. Murali, a bank spokesman said here.Mr Kesav Kumar joined SBT as probationary officer in 1984. He has rich experience in IT, foreign exchange and credit. He served as deputy general manager at State Bank of Hyderabad and the Kozhikode zone of SBT.Mr Chandrasekhara Sarma joined State Bank of Hyderabad in 1972 and has held key assignments there. He was deputy general manager at the Hubli zone of State...

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Securitisation Act cannot bypass principles of natural justice: Court

The Securitisation Act is meant for speedy recovery of dues by banks and financial institutions, but that does not mean the principles of natural justice can be bypassed, observed the Allahabad High Court.In Ram Umrao v. Managing Director, IndusInd Bank Ltd , the petitioner’s truck was seized by the recovery agent on behalf of the bank for his alleged inability to pay his dues on the loan taken after hypothecation of the truck.The Reserve Bank had, following the strictures passed by the Apex Court in ICICI’s case against the strong-arm tactics...

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New BoB EDs take charge

Bank of Baroda (BoB) on Wednesday announced that the two newly appointed Executive Directors, Mr S. K. Jain and Mr P. Srinivas, had assumed charge on Monday evening.Mr Jain, a chartered accountant, was earlier a General Manager of Dena Bank overseeing Treasury operations, Accounts and Taxation. He has over 25 years of experience in operational banking in Dena Bank.Mr Srinivas was working as General Manager at Andhra Bank prior to assuming charge as Executive Director of BoB. He held several functional positions during his 33 years in Andhra...

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SBI to cut loan rates by 25-50 bps for exporters

State Bank of India, the country's largest lender, would cut interest rates on loans for exporters by 25-50 basis points, a senior official said. The new rates are likely to be effective from next week, after the bank's asset liability committee meets this Saturday.The move comes following the central bank's decision to increase export refinancing limits of banks, to 50 per cent, to improve liquidity in the system. At present, the Export Credit Refinance (ECR) limit is fixed at 15 per cent of the rupee export credit eligible for refinance as...

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RBI issues norms for non-bank entities to set up ATMs

An ATM at every nook and cranny may become a reality in a couple of years.The Reserve Bank of India has issued final guidelines permitting permit non-bank entities to set up, own and operate ATMs in India. This is to ensure the expansion of ATMs in smaller centres across the country.The ATM roll-out conditions stipulated for the non-bank entities, which will be christened as white label ATM operators (WLAOs), are stiff. It has prescribed three schemes under which the roll-out of white label ATMs (WLAs) can happen. Three schemes Under the...

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Syndicate Bank to focus on fee income, retail and SME

Syndicate Bank will focus on fee income, retail and SME loans as a strategy to boost its balance sheet. The bank has decided to enter into strategic tie-up with asset management companies to sell their mutual fund schemes. Also it is in talks with life insurance companies for distribution of insurance products.Disclosing this, bank's CMD M G Sanghvi said, "Distribution of both insurance and mutual funds will help us boost fee income. We are aiming at an annual growth of 30% this fiscal year." The bank's fee income rose 17.5% to Rs 1075.8 crore...

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RBI panel wants new supervision process

In order to make supervisory process for commercial banks more effective, a Reserve Bank of India panel has proposed that risk-based supervision (RBS) should replace compliance-based and transaction-testing approach (CAMELS).Under RBS, the supervisory rating would be a reflection on the risk elements and would not be an exercise in performance evaluation as under the CAMELS.Under RBS, the supervisory stance would be determined based on a supervisory analysis of ‘probability of failure’ of a bank and the likely impact of its failure on the banking/financial...

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Fitch cuts SBI, ICICI, PNB, Axis outlook

Global agency Fitch today cut credit rating outlook to negative from stable of 11 financial entities including SBI, ICICI Bank, PNB and Axis Bank.The action follows the revision earlier this week of India's outlook to negative."The outlook revision of the financial institutions reflects their close linkages with the sovereign by virtue of their high exposure to domestic counterparties and holdings of domestic sovereign debt," Fitch said in a statement.The list of downgraded entities include six government banks (including an international banking...

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