LIC eastern region targets 37% growth in first premium income

Life Insurance Corporation (LIC) is expecting a healthy growth of 37 per cent in first premium income to Rs 5500 crore in the eastern region during the current fiscal.“We are targeting first premium income of Rs 5500 crore during the current fiscal as against Rs 4000 crore in the previous year,” LIC Zonal Manager (East) S K Roy said today on the sidelines of 56th year of celebration.So far the country’s largest insurer had earned Rs 1022 crore in first premium till August this year.Roy said this year the total premium income growth was expected...

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SBI signs MoU with Japan Bank for International Cooperation to help Japanese SMEs

The country's largest lender State Bank of India (SBI) signed an MoU with Japan Bank for International Cooperation (JBIC) to help small companies from the far east nation to do business here. Regional banks from Japan do not have a presence in India but SMEs from that country operating here or planning to enter the market here need to avail of financial services and "This MOU would assist JSMEs (Japanese small and medium enterprises) to meet their financial requirements from SBI," the SBI statement said. JBIC has been mandated by the Japanese...

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Vijaya Bank cuts MSME loan rates up to 1%

Vijaya Bank has slashed interest rates on MSME (Micro, Small and Medium Enterprises) loans by up to one per cent across the board, effective from Saturday.Also, in order to encourage MSME units to go in for rating by accredited external credit rating agencies, it has offered them incentives by way of a further reduction in the rate of interest ranging from 0.25 per cent to one per cent depending upon the ratings obtained, the public sector bank said in a statement.The bank has identified MSME sector as a thrust area and it has recorded a...

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OneAssist Consumer partners HDFC Bank

OneAssist Consumer Solution announced that it has tied up with HDFC Bank to offer its customers product offerings — WalletAssist and EverydayAssist.The partnership will enable HDFC Bank to offer all its new credit card customers assistance and protection service of their wallets, mobiles and important documents.HDFC Bank, at a later stage, plans to extend this service to all its existing card customers through subscriptions at the bank’s various customer contact points, said a company release....

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Central Bank cuts home, car loan rates

Banks are going the whole hog in chasing retail customers by cutting interest rates on home and vehicle loans.With credit demand muted on the corporate side, banks are marketing retail loans in a big way.Over the last few weeks, banks such as State Bank of India, Union Bank of India and Corporation Bank have announced festival offers for retail loan borrowers.Central Bank of India on Friday joined the festival offer bandwagon by cutting interest rates on home loans and car loans by 10 basis points and 150 bps, respectively. (A basis point equals...

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Visa’s new fraud detection system set to make e-payments more bankable

Visa Inc has introduced an advanced fraud prevention technology to step up security for India’s banks and provide greater protection for Visa cardholders. Visa Advanced Authorisation (VAA) and Visa Risk Manager (VRM) offer financial institutions real-time protection and responses across Visa’s entire global network. The move is likely to sit well with the regulatory direction that recently stressed the need for all India’s banks to adopt proactive real-time fraud detection, increase consumer protection, and proactively identify and deny fraudulent...

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Karnataka Bank gets shareholders’ nod to raise authorised capital

Shareholders of Karnataka Bank have approved the resolution to increase the capital of the bank. The present authorised and paid-up capital of the bank is Rs 200 crore and Rs 188 crore, respectively.At the bank’s 88th annual general meeting here on Thursday, the shareholders approved the proposal to increase the authorised share capital of the bank from Rs 200 crore to Rs 300 crore to facilitate further issue of equity shares.Chairing the meeting, Ananthakrishna, Non-executive Chairman, said that the capital-to-risk-weighted assets ratio of...

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Corp Bank to cut interest rates on home, car loans from Sep 1

Corporation Bank has decided to slash interest rates on home, car and educational loans with effect from September 1 for a three-month period.The state-run bank has also decided to waive the processing fee for these loans.The bank’s Chairman and Managing Director Ajai Kumar said the interest rates for Corp Home Housing loan for up to Rs 50 lakh would be 10.50 per cent.The rates would be 10.75 per cent for loans up to Rs 1 crore and 11 per cent for loans exceeding Rs 1 crore.The bank hitherto charged 11.25 per cent interest on home loans, he...

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Union Bank cuts vehicle loan rate to 10.95%

Union Bank of India has slashed the interest rate on vehicle loans to 10.95 per cent (0-7 years) with immediate effect.Earlier, the interest rates were: 12.50 per cent (0-3 years) and 13.50 per cent (3-5 years).The public sector bank has extended its ‘Independence Day to Republic Day Festive Offer’ to vehicle loans by waiving processing fees during this period. Home loan As part of the festive offer, the bank is offering floating interest rate home loans at 10.50 per cent for loans up to Rs 30 lakh; 10.75 per cent for loans of Rs 30-75 lakh;...

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Citigroup to pay $590 m to settle investor suit

Citigroup has agreed to pay $590 million to settle a suit by investors who accused the bank of misleading them on its subprime mortgage-based security losses in 2007-2008.The agreement settled the four-year-old class-action suit that arose from the collapse of the US real estate market, which savaged the bank’s share price in part due to its heavy losses on collateralised debt obligations (CDO).Investors who bought Citigroup shares between February 2007 and April 2008 accused the company of hiding its exposure to the CDO market, so they took...

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Oriental Bank to lower deposit rates soon

Oriental Bank of Commerce (OBC) will soon lower deposit rates in some of the term buckets, its Chairman and Managing Director, S. L. Bansal, has said.The bank’s asset-liability committee will meet next week to take a call on the issue, he added. Bansal, however, declined to comment on the likely time buckets where the rate revision may be effected.One thing that is certain is that the bank is looking to only reduce deposit rates, not hike them.OBC had, in mid-August, lowered its base rate by 10 basis points to 10.40 per cent, signalling that...

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Kamath disagrees with SBI chief, says CRR not an issue

ICICI Bank Chairman K.V. Kamath today disagreed with the suggestion of SBI chief Pratip Chaudhuri that the RBI should scrap CRR, saying it is part of the monetary policy and no issue can be made of it.Asked to comment on the vocal slugfest between Chaudhuri and RBI Deputy Governor K.C. Chakrabarty on the issue, Kamath said in the whole issue of monetary policy, several tools are being used, including Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio.CRR is the portion of deposits kept by banks with the Reserve Bank on which no interest...

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Seek more time to repay corporate loans: SBI

“The other day, we received a (loan) proposal for setting up a hotel, with a repayment period of eight to nine years. I told my officers ask this gentleman to take the loan for 12-13 years...Our advice is in the future, whenever you are applying for a loan, try to negotiate for a longer repayment tenure,” said Chairman Pratip Chaudhuri.Such advice is aimed at capping a further rise in the bank’s restructured loan portfolio. In 2011-12, SBI’s restructured loan portfolio nearly doubled to Rs 8,093 crore from Rs 4,979 crore a year earlier. In...

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Indian Bank to open 1,525 ultra small branches in rural areas

Indian Bank proposes to set up 1,525 ultra small branches in rural areas across the country as part of its focus on taking banking services to villages,Indian Bank Chairman and Managing Director T.M. Bashin speaking at Pattamangalam in Sivaganga district near here recently said that the bank would be opening 1,525 ultra small branches comprising one clerk, one laptop and one rural development officer.This would be in addition to the 1,965 branches the bank has all over the country, he said while addressing the reporters recently on the sidelines...

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Mobile banking set to become user-friendly

Banking transactions on mobile phones are set to become easier in a few days time.You will just need to key in the service code ‘*99#’ in your mobile to initiate funds transfer and check the balance in your bank account.To begin with, about 20 banks will offer the service code based mobile banking facility to customers who are subscribers of Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd. State Bank of India, Bank of India, Bank of Baroda, Canara Bank and Union Bank of India will be part of the initial roll-out.All mobile banking...

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Growing trend of Govts adopting e-payments methods: MasterCard

Governments world over are increasingly adopting electronic payment methods as an alternative to cash and cheque-based benefit programme, as a measure to save money and improve financial inclusion.The United States, Italy, Canada, United Arab Emirates and Romania are some of the latest examples of governments going paperless as a cost-savings opportunity and a method of addressing financial inclusion, MasterCard Worldwide said in a statement.Most recently, the South African Social Security Agency distributed more than 2.5 million debit cards...

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Vijaya Bank signs MoU with SIDBI arm to tackle bad loans

Public sector lender Vijaya Bank has tied up with India SME Asset Reconstruction Company (ISARC) to tackle the issue of mounting bad loans in the banking system.The asset reconstruction company promoted by SIDBI has entered into a memorandum of understanding with Vijaya Bank with a mandate to offer services in management of stressed assets.Under the agreement, ISARC will act as a resolution-cum-enforcement agent for the bank for the resolution of its non performing assets. ISARC is in the process of execution of similar agreements with other...

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StanChart jumps 5% as Sebi permits IDRs' conversion

Standard Chartered today jumped by over 5 per cent on Indian bourses after financial sector regulators RBI and Sebi allowed partial flexibility in conversion of Indian Depository Receipts (IDRs) into equity shares by investors.Standard Chartered scrip on the BSE surged by 5.57 per cent to close at Rs 101.45 defying the weakness in the broader market. During the trading session, the stock rose by 8.22 per cent to touch the day’s high of Rs 104.At the NSE, IDRs of Standard Chartered were up 5.26 per cent to settle at Rs 101.10. During intra-day...

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SBI, SBBJ donate Rs 4 crore for relief in Rajasthan

State Bank of India (SBI) and State Bank of Bikaner and Jaipur (SBBJ) on Wednesday donated Rs 4 crore to the Chief Minister’s relief fund for works in flood hit areas in Rajasthan.Rains causing floods displaced several people in the state.SBBJ, MD, Shiva Kumar and SBI, CGM, Zonal office, B Sriram handed over cheques of Rs. 2 crore (each) to Chief Minister, Ashok Gehlot.Senior officers of the bank were also present on the occasion at the Chief Minister’s office.Sriram told reporters that the financial assistance was provided for relief works...

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L&T General Insurance incurs Rs 106 cr loss in FY’12

L&T General Insurance Company (LTGI) has incurred a loss of Rs 106 crore in its first full financial year of operations in 2011-12.LTGI, a wholly-owned subsidiary of engineering major Larsen & Toubro, had received the regulatory approval to operate as a general insurer in July 2010. It commenced operations in October that year.“The existing resources being properly re-deployed and utilised resulted in motor line showing a significant growth. However, lower price realisation in this line has resulted in higher loss ratio. The loss in...

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Corporation Bank launches ‘festival bonanza’ for loan schemes

Corporation Bank will focus on the retail and SME (small and medium enterprise) segments to boost growth during the second and third quarters of the current fiscal. Addressing newspersons at the launch of ‘Grand Festival Bonanza’ for various loan schemes here on Wednesday, Ajai Kumar, Chairman and Managing Director of the bank, said that there is a huge market in the retail and SME segments. Stating that he is enthused by the performance of the bank without any promotional activity or cut in interest rates, he said the initiatives under the...

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IDBI Bank ties up with SME rating agency

IDBI Bank Ltd has entered into a Memorandum of Understanding (MoU) with SME Rating Agency of India Ltd (SMERA) to evaluate its existing as well as potential MSME (Micro, Small and Medium Enterprise) clients.“The rating will make it easier for the bank to get information and expedite the credit decision in lending to the prospective MSME customers…. The customers will get concessions on the rate of interest if their rating is higher,” said S. K.V. Srinivasan, Executive Director, IDBI Bank.The public sector lender already has tie-ups with rating...

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SKS Microfinance allots 44.5 lakh shares to Kumaon investment

SKS Microfinance has allotted 44.5 lakh shares on preferential basis to Kumaon Investment Holdings.As per the details of the acquisition, Kumaon Investment Holdings will acquire 44.5 lakh shares carrying voting rights equivalent to 4.11 per cent, SKS said.Kumaon Investment Holdings is a promoter of the company.In a BSE notification last week, SKS informed the BSE that “the Board of Directors of the Company has made allotment of 44,50,000 equity shares of Rs 10 each at a premium of Rs 65.40 per share to M/s Kumaon Investment Holdings, on a preferential...

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NPAsource.com registers Rs 13K cr properties in first year of operations

NPAsource.com, a dedicated portal for the resolution of non-performing assets of banks and financial institutions in India and globally, has registered properties worth over Rs 13,000 crore in its first year of operations. Currently, the portal has over 1,000 registered users, comprising banks, corporates, chartered accountancy firms, lawyers, tax consultants and real-estate brokers, amongst others. NPA properties from over 15 banks in India can be accessed on this portal which focuses on resolving and finding appropriate buyers at optimum...

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KVB to launch new recurring deposit product

Karur Vysya Bank is piecing together a new product that is expected to revive interest in recurring deposits. The private lender is expected to soon unveil the product that will provide flexibility in deposit amount.Many Indian banks today have reduced their focus on recurring deposit schemes as the returns are comparatively low at times of volatility in interest rates.These deposits are mainly preferred by people who do not have a lumpsum amount to invest and instead pay a fixed amount every month.K. Venkataraman, Managing Director and CEO...

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HDFC warrant holders reap a windfall on conversion

Equity warrants may have lost their charm as an investment option in a languid market, but HDFC shareholders may have no reason to complain as their investments in warrants of the country's largest housing finance company have yielded higher returns than benchmark indices.HDFC shares have been quoting at a premium to the warrant price for many weeks ahead of the conversion date (August 24). As a result, the conversion option turned attractive, prompting holders of Rs 5.5 crore warrants to exchange them for shares. Issued at a price of Rs 55 a piece...

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RBI to soon issue Rs 1,000 notes with rupee symbol, more security features

The Reserve Bank of India said that it will soon launch Rs 1,000 denomination banknotes with rupee symbol, and improved security features.“The Reserve Bank of India will shortly issue Rs 1,000 denomination banknotes incorporating rupee symbol, with inset letter ‘L’, in both the numbering panels, in the Mahatma Gandhi Series-2005 with improved security features,” RBI said in a notification.These banknotes will bear the signature of RBI Governor D. Subbarao and the year of printing 2012 will be on the reverse of the bank note, it added.The design...

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RBI to co-operative banks: Keep interest rates variation on FDs to minimum

The Reserve Bank today asked state and central co-operative banks to ensure minimal variation in interest rates on single-term deposits of Rs 15 lakh and above and other deposits for corresponding maturities."It has been observed that there are wide variations in the interest rates offered by banks on single term deposits of Rs 15 lakh and above and those offered on other deposits (i.e. deposits less than Rs 15 lakh) of corresponding maturities," RBI said in a notification to these banks.Stating that there was wide variations in the interest...

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Onam offer from HDFC Bank

HDFC Bank has offered a special gift for NRIs and their families with the launch of One Family, One Bank, Zero Balance account in connection with Onam festive season. The Zero Balance account will be available to resident family members of NRIs, who open NRE & NRO accounts on or before September 15. This will enable NRIs to seamlessly transfer funds to their family members’ account. The bank also offers an impressive network of branches and ATMs across India and also a wide array of loans and deposit schemes at attractive interest for NRIs....

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Bank of India revises rates for fixed deposits

Bank of India has raised its interest rates by up to 1.5 per cent for fixed deposits of up to Rs 1 crore on select maturities.For fixed deposits of Rs 1 crore and above, the state-run bank, however, has lowered interest rate by up to 0.5 percent.“The bank has revised Term Deposit Rates in some maturities with effect from September 1, 2012,” Bank of India said in a filing to the BSE.The bank has raised rates for maturity of 31 days to 45 days for deposits of less than Rs 15 lakh to 7 per cent from 5.5 per cent currently.For maturity of 46 days...

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SBI opens kiosk in Charminar

State Bank of India has opened a customer service point in Charminar area. It is the 45th such point in Hyderabad and is part of the bank’s urban financial inclusion activity. The service is managed by Geosansar, a corporate banking correspondent of SBI.Shekar Srivastava, General Manager, SBI, Hyderabad Circle, said that kiosk banking in financial inclusion has been widely successful and Geosansar’s initiatives of Bank on Bike (first of its kind) and mobile banking has been very helpful in rendering wide range of services in the unorganised...

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HUDCO re-enters home loan lending

Housing and Urban Development Corporation (HUDCO) said on Tuesday that it has restarted lending for home purchases by launching a competitively priced product.The corporation, mandated with affordable housing and urban development, will be offering home loans at a floating rate of 10.20 per cent for loans up to Rs 25 lakh, its regional office in the city said in a statement today.The interest rate on the product is better than the 10.25 per cent currently charged by the country’s largest lender State Bank of India, also the market leader in...

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