UCO Bank puts China, Malaysia expansion plans on hold

Kolkata-based UCO Bank has put on hold its expansion plans in China and Malaysia due to the high capital involved.The bank, which had initially planned to upgrade its representative offices, has closed down its offices in these two countries last year, according to Mr Arun Kaul, Chairman and Managing Director, UCO Bank.“We were not getting permission to open branches there. Hence, the opportunity was not very large while the capital adequacy requirement was extremely strict,” he told newspersons after the bank’s ninth annual general meeting...

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IndusInd Bank gets its first currency chest

IndusInd Bank opened its first currency chest – at the bank’s Thane branch.The currency chest has been set up with the most modern, hi-tech machines for note counting, sorting and counterfeit detection, Mr Romesh Sobti, Managing Director and CEO, IndusInd Bank, said today.A currency chest is a repository of currency notes that lies within the premises of a bank. But the money put into it is treated as having been deposited with the Reserve Bank of India.Therefore, it helps a bank to meets its ‘cash reserve ratio’ requirements, while at the...

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RBI caps merchant discount rates for debit card transactions

To encourage debit card transactions, the Reserve Bank of India has announced a cap on the Merchant Discount Rate (MDR). Effective from July 1, the MDR for transactions undertaken with debit cards must not exceed 0.75 per cent of the transaction amount for value up to Rs 2,000 and 1 per cent for that above Rs 2,000, the RBI said. MDR is a processing fee charged by a bank from a merchant to provide debit and credit card services.“For a standard debit card, the average MDR is about 1.5 per cent. As the MDR has been capped by the RBI, it will...

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IRDA slaps Rs 1.47-cr penalty on HDFC Standard Life

The Insurance Regulatory and Development Authority has imposed a penalty of Rs 1.47 crore on HDFC Standard Life Insurance Company.This is the highest-ever penalty imposed on any life-insurance company so far after opening up of the sector.The fine has been imposed for various ‘violations’ including wrongful marketing expenses paid to corporate agents, use of unlicensed individuals and corporate agents to procure business, payment of death claims and deviation from norms on unit-linked insurance policies.“A penalty of this nature is a regulatory...

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SBH cuts interest rate on term deposits

State Bank of Hyderabad has reduced the interest rates on domestic term deposits of up to Rs 15 lakh with some maturity periods with effect from July 1, 2012.Interest rate on deposits for 46 to 179 days has been reduced to 7.25 per cent from the existing 8 per cent. Deposits for 180 days to less then one year would earn 8 per cent marking a reduction of 50 basis points.The existing interest rate structure would continue for deposits above Rs 15 lakh for various maturity periods, SBH said in a releas...

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Bank unions plan strike on July 25, 26

Public sector bank employee unions have decided to call a two-day nation-wide strike during July 25-26 to protest reforms in the banking sector and outsourcing of jobs.“We have decided to go on a two-day nation-wide strike beginning July 25,” the United Forum of Bank Unions (UFBU) Convener, Mr G.D. Nadaf, told PTI.UFBU is the umbrella organisation of five employee unions and four officer unions of state—run and private banks in the country.“About 10 lakh employees and officers will participate in the strike,” Mr Nadaf claimed....

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About 20% of rejigged loans may turn into non-performing assets : SBI Chairman

The State Bank of India Chairman, Mr Pratip Chaudhari, said 18-20 per cent of the bank’s total restructured loans could turn into non-performing assets.Morgan Stanley, in a report, on Wednesday had flagged asset quality concerns in SBI.As on March 31, 2012, the restructured loans of the bank stood at Rs 37,168 crore. Only 4-5 per cent of the total NPAs turn into eventual loss because of non-repayment, Mr Chaudhari had said while announcing the bank’s fourth-quarter and full-year 2012 results.Morgan Stanley said the bank’s new gross and net...

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HSBC may sell Axis Bank, YES Bank stakes

UK-based HSBC is likely to sell stake in Axis Bank and YES Bank as part of its global strategy and is understood to have appointed merchant bankers for the deals.To be done through block deals by HSBC Securities, the two stake - sales could be worth about Rs 2,430 crore at the prevailing market price of the India—based lenders.HSBC has 4.75 per cent stake amounting to 1.9 crore shares in Axis Bank through HSBC IRIS Investments Mauritius Ltd, as per the latest BSE filings available.It also has 4.76 per cent stake in YES Bank and holds 1.67 crore...

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Muthoot Finance ownership split cannot be ruled out, says Edelweiss

The risk of ownership split in future among the four promoter-brothers of Muthoot Finance cannot be ruled out, says a report of Edelweiss Securities. Muthoot has reacted to the report denying any such possibility.“We cannot rule out the split of ownership between the brothers in future, hence have listed the ownership pattern as a risk,” the Edelweiss report on the gold loans industry, released today, said.Muthoot Finance is a Kerala-based non-banking finance company that specialises in gold loans, with assets under management worth Rs 24,400...

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Insurers, MFs run risk of contagion from banks: RBI

Insurance companies and mutual funds run the risk of contagion from the banking sector, cautioned the Reserve Bank of India.Random failure of a bank which has large borrowings from insurance companies and mutual funds may have significant implications for the entire financial system, said the RBI’s Financial Stability Report.Banks increased reliance on borrowed funds, especially short-term funds, due to disproportionate slowdown in deposit growth (at less than 14 per cent as at March-end 2012) vis-à-vis credit growth (16.3 per cent). This could...

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Free electronic fund transfer not viable, says Chakrabarty

The Reserve Bank of India’s Deputy Governor, Dr K.C. Chakrabarty, has ruled out the possibility of providing e-transactions free of cost given the viability issues.Earlier this month, the Finance Ministry had asked the banking regulator to work out a framework under which funds could be transferred electronically free of charge from one account to the other.“Anything (product and services) that is offered free of charges can never be scaled up…It cannot be commercially viable and viability is the key,” Dr Chakrabarty said at a Banking Tech...

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Kerala police bust inter-State gang involved in ATM fraud

The Kollam police in Kerala on Sunday claimed to have busted an inter-State gang involved in a multi-crore ATM fraud. Acting on definite leads, the police arrested two persons Sunny Gupta (27) and Ramadeep Singh (30) from Mohali in Punjab. Their interrogation led to the arrest of two more persons in Kollam the next day. They were identified as Ashish Arora (24), and Sumitkumar Arora (28), natives of Ludhiana in Punjab. A number of banks in Kollam that found themselves at the receiving end had lodged a complaint with the City Police Commissioner,...

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Birla Sun Life launches new ULIP whole life plan

Private insurer, Birla Sun Life, on Tuesday announced the launch of its new unit-linked whole life plan, BSLI Wealth Secure.“With three investment options to choose from, the plan can meet the demands of the diverse investors.“BSLI Wealth Secure plan combines long-term savings and whole life cover in such a way that it allows customers to focus on their goals and maximise savings for their future,” Birla Sun Life Insurance Chief Actuarial Officer, Mr Niall O’Hare, said in a release....

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Liberty Videocon General Insurance gets final nod from IRDA

The Insurance Regulatory and Development Authority has given approval to Liberty Videocon General Insurance Company to start operations in the country.The Mumbai-based company will start operations with an initial capital of Rs 300 crore.Liberty Videocon, a partnership between Videocon Industries and US-based Liberty Mutual Insurance Group, will provide multi-line insurance underwriting capabilities with an emphasis on personal insurance products.The company is currently finalising its products and service delivery blueprint.Commenting on the...

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Digitas to manage Axis Bank online operations

Axis Bank has appointed digital marketing agency Digitas to conceptualise, design and manage its online operations.“We believe that digital media is an extremely important channel to engage with and have meaningful conversations with consumers. A good digital strategy will go a long way in creating preference of one service provider over another. We believe that Digitas India is the right strategic partner to help us achieve our aspirations,” Ms Manisha Lath Gupta, Chief Marketing Officer, Axis Bank, said in a statement.Digitas India will create...

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StanChart launches first online credit card approval solution

International bank Standard Chartered Bank launched its first online credit card approval solution to enable customers to apply for the card online.On application, the customers receive an ‘Approval In Principle’ (AIP) followed by a final approval after the completion of ‘Know Your Customer’ and credit approval processes.The bank will extend this process to several other consumer banking products over the next few months.The online application process involves verification of key customer details such as the permanent account number, mobile...

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SIDBI Venture Capital closes India Opportunity Fund

Development bank SIDBI on Monday said its venture capital subsidiary has closed Rs 600 crore India Opportunity Fund.“SIDBI Venture Capital has got fund commitment from various investors including domestic banks and insurance companies. The Rs 600—crore, India Opportunity Fund would be operational soon,” said Mr S Muhnot, Chairman and Managing Director, SIDBI.Small Industries Development Bank of India (SIDBI) has committed to contribute 30 per cent or Rs 180 crore to the corpus India Opportunity Fund Series I, he said.The fund would focus on...

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The Reserve Bank of India has announced that its office in Chennai will remain closed for public transactions, including Government transactions, on July 2, on account of annual closing of accounts. All commercial banks and co-operative banks will, however, remain open on that day for transacting business, a release from the bank said. The Chennai Bankers Clearing House as also the clearing houses managed by commercial banks in other centres in Tamil Nadu will function as usual on July 2, it adds.

The Reserve Bank of India has announced that its office in Chennai will remain closed for public transactions, including Government transactions, on July 2, on account of annual closing of accounts. All commercial banks and co-operative banks will, however, remain open on that day for transacting business, a release from the bank said.  The Chennai Bankers Clearing House as also the clearing houses managed by commercial banks in other centres in Tamil Nadu will function as usual on July 2, it add...

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How ATMs are in the Vortex of change for rural India

International Finance Corporation is investing $2.7 million as equity in Vortex Engineering, a developer of low-cost automated teller machines. The investment will help the Chennai-based company expand its network of ATMs across India’s rural and semi-urban areas, where people have limited or no banking services. Widespread installation of low-cost, easy-to-use ATMs in the rural areas will facilitate cash withdrawal, especially for the zero-balance and ‘no-frills’ account holders. It will also help people in rural areas access banking services...

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SKS Microfinance finds jobs for 248 retrenched staffers

SKS Microfinance Ltd has secured jobs for 248 retrenched employees in collaboration with corporate and consulting agencies.SKS had organised job fairs in Hyderabad, Vijayawada for all displaced employees after providing them with training, reorientation. “An additional 255 candidates have been shortlisted for various positions,’’ SKS said in a release on Monday.Many organisations including Coromandel International, Genius Consultants, Reliance Life Insurance Company, Smaat Aqua Technologies Pvt Ltd, Tikona Digital Networks, TeamLease Services...

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Loans for vocational education to be made easy

Here is good news for those who are interested in doing vocational courses for skill development irrespective of their age.Banks are now gearing up to cater to the finance requirements of those keen on pursuing vocational education, thanks to the guidelines on a model loan scheme introduced by the Indian Banks’ Association (IBA).Hitherto, the vocational courses offered by ITIs, ITCs, Polytechnics and other technical institutions are not covered under various educational loan schemes of banks.“However, a need is felt for providing institutional...

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Punjab & Sind Bank launches ‘tatkal’ scheme to sanction loans for corporates

Punjab and Sind Bank has launched a ‘tatkal’ scheme for sanctioning loans above Rs 25 crore for businesses. “Everybody has a request for quick disposal of their loan applications and there is good demand especially from the corporates in this regard,’’ Mr Divinder Pal Singh, Chairman and Managing Director, Punjab and Sind Bank, told Business Line . The loan can be applied for at any branch through a SMS with the details of company’s name, gist of proposal and the bank would get back to the customer. “We will convey the expression of interest...

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Union Bank’s London arm to start operations by March

The London subsidiary of Union Bank of India is expected to be operational by March next year.The wholly owned subsidiary of Union Bank of India, UBI UK Ltd, has already received the Reserve Bank of India’s approval and was waiting for the local regulator’s approval, according to Mr D. Sarkar, Chairman and Managing Director.“We have registered the company. The local authority is conducting its due diligence and is going through our risk management and credit management policies. We are hopeful of receiving their approval soon and we hope to...

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Non-banking entities may open 80,000 ATMs in next 8 months

Non-banking entities, which have been allowed by RBI to operate ATMs on behalf of banks, are expected to open 60,000-80,000 automated teller machines in the next eight months.“We expect 60,000-80,000 white label ATMs roll-out in the next 6 to 8 months,” a Finance Ministry official said.This will help in spreading financial inclusion in unbanked areas, the official said.At present, there are about 90,000 ATMs spread across the country. Of this, nearly one-third are owned by SBI Group.So far, only banks are allowed to set up and operate ATMs...

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