Huge potential for project exports, says Exim Bank chief

Exim Bank is to promote project exports in a big way this year. Though the global economic condition is expected to remain subdued for another two years, there is enough room for Indian project exports to grow, provided exporters manage to identify potential markets and importers. According to T.C.A. Ranganathan, Chairman and Managing Director, Exim Bank, this is precisely what prompted the bank to focus more on market research and mapping of importers from across the world and, thereby, provide Indian exporters with sufficient database. Exim...

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Chidambaram opens door for more reforms, offers tax relief

In an attempt to lighten the burden on aam aadmi (common man), cheer corporates and boost the markets, Finance Minister P Chidambaram announced a slew of measures offering tax breaks on Friday.This was the second successive day of big action as the government battled to contain the fallout of alliance partner Trinamool Congress withdrawing support.Chidambaram’s first announcement related to waiver of import and excise duties on non-subsidised domestic cooking gas (LPG) cylinders. Two others were on implementation of Budget announcements on...

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Govt asks banks to promote e-payments, cut cheque transactions

To promote electronic payments, the government has asked banks to reduce cheque-based transactions by at least 20 per cent through identified branches in 2012-13.The Finance Ministry has directed banks to ensure that e-payment mode gets the attention it deserves, sources said."It is considered imperative for banks to take six minimum steps, including identification of top 20 per cent branches in terms of business volume (2011-12)," sources said.The aim is to bring down the number of cheque-based transactions by at least 20 per cent through...

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Central Bank again opposes separation of DMO function

The Reserve Bank of India (RBI) has again voiced concern on separation of the Debt Management Office (DMO) from its ambit. “Separation of debt management from the central bank needs to be revisited in the wake of global financial crises,” said H R Khan, deputy governor, at a conference in Doha recently. Earlier, the government had proposed that the DMO work independently, under the finance ministry’s purview. This would be responsible for managing the government's borrowing programme. The government's market borrowings had increased in recent...

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Indian bank signs MoU with National Small Industries Corporation

Public sector Indian Bank today entered into a Memorandum of Understanding (MoU) with National Small Industries Corporation (NSIC).As per the MoU, NSIC will sponsor MSMEs' proposal (for loan) after due scrutiny at at regular intervals to various branches of Indian Bank all over the country, Chennai-headquartered Indian Bank said in a statement.The arrangement is expected to provide more momentum to the growth of MSME advances of Indian Bank.As of June 30, 2012, MSME advances of the Bank stood at Rs 10,776.30 crore with an annual growth of 24.32...

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HDFC Bank uses technology-led marketing to keep costs low

A marketer who helped revitalise the sales of chocolate brands such as Picnic, Perk and 5-Star for Cadbury and launched India's first end-to-end portal to buy insurance for ICICI Lombard, is now busy changing the way the country's largest issuer of credit cards and auto loans markets itself.Kartik Jain, 42, executive vice-president and head marketing at HDFC Bank, has been pushing result-oriented local and digital marketing since he joined India's second-largest private bank last year."We want our marketing campaigns to result in at least thrice...

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SBI reclaims most valued bank status, topples HDFC Bank

SBI today reclaimed its position as the country's most valued bank with a total market valuation of over Rs 1.48 lakh crore, surpassing private sector player HDFC Bank.Shares of State Bank of India surged 4.3 per cent to close the day at Rs 2,212.6, taking its market value to Rs 1,48,475 crore, making it the overall seventh most valued company.On the other hand, shares of HDFC Bank gained 3.02 per cent to Rs 625.25. In the process, the market capitalisation (m-cap) of the private bank rose to Rs 1,47,444 crore.HDFC Bank had on July 27 toppled...

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Kotak Mahindra Bank to focus on NRIs in Kerala

Kotak Mahindra Bank has chalked out plans to focus on Kerala’s NRI population to boost its business in the State.Virat Diwanji, executive vice-president and head of branch banking, business assets and NR, said that the focus is more on NRI customers in the State and the bank has enlarged its team size to chase the population.Diwanji, who was here in connection with the launching of the bank’s new ad campaign, told reporters here that the NRI contribution to the overall deposit base of Kotak Mahindra Bank in Kerala is over one-third and the...

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Corp Bank’s new branch in Bangalore

Corporation Bank opened its new branch at Akshaynagar in Bangalore recently.Amar Lal Daultani, executive director of the bank, said on the occasion that Akshaynagar is an upcoming residential area having a lot of housing complexes. To reach out to prospective customers, the bank has opened the branch, he said.A bank release said here that S.N. Jayaram, commissioner of Karnataka Housing Board, inaugurated the new branch. K. Giridhar Shenoy, circle general manager, and N. Vijaya Kumar, deputy general manager and zonal head, Bangalore South, were...

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Sundaram BNP Paribas Fund Services to recruit 100 people

As part of its expansion plans, Sundaram BNP Paribas Fund Services would recruit 100 people across its delivery centres during the next fiscal.Sundaram BNP Paribas Fund Services is a 51:49 per cent joint venture between the Chennai-based Sundaram Finance Ltd and BNP Paribas Securities Services, a 100 per cent subsidiary of BNP Paribas.The Chennai-based Sundaram BNP Paribas Fund Services employs 200 people in its two-delivery centres in Chennai and Madurai.“It expects to hire around 100 people in the next financial year,” a company statement...

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Movida, mobile banking platform, to go live next month with HDFC Bank: Visa

The Visa-promoted Movida mobile payments platform will go live next month with the second largest private sector lender HDFC Bank as its banking partner, a top Visa official has said.“Movida will go live next month...on HDFC Bank it should be live. Other banks are in the pipeline,” Visa country manager for India and South Asia Uttam Nayak told PTI.The work of integration and testing is on right now, before the product goes live, he said.Movida, an equal joint venture between Visa and the LSE-listed mobile banking solutions company Monitise,...

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Sabbatical yet to gain momentum

For most women, priority is home, however career minded they may be. While some have the advantage of having a member of the extended family take care of their children, most mothers prefer to stay with them during their decisive growing years. Considering this, the Khandelwal Committee report on HR issues of public sector banks (PSBs) recommended in 2010 that sabbatical of two years be allowed at request to women employees to meet their special problems during their career. Following this, the Ministry of Finance issued a broad guideline...

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HSBC to pay Rs 20,000 compensation to credit card holder

Hongkong and Shanghai Banking Corporation (HSBC) has been ordered by a consumer forum here to pay Rs 20,000 as compensation to one of its credit card holders for adding his name in CIBIL’s defaulters list even though he had paid all his dues.While awarding the amount to the HSBC credit card holder, the New Delhi District Consumer Disputes Redressal Forum said the Bank should have “gracefully” accepted its fault instead of adopting an “obstructionist attitude” by seeking rejection of his complaint.“We are shocked to observe the obstructionist...

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ATM Pin: Avoid birth date, numerical sequences

If your ATM pin code is your birth date, a year in the 1900s, or an obvious numerical sequence, the chances of thieves cracking your password are way higher, according to a new study.Researchers from the data analysis firm, Data Genetics have found that the three most popular combinations — “1234”, “1111”, and “0000” — account for close to 20 per cent of all four-digit passwords.Every four-digit combination that starts with “19” ranks above the 80th percentile in popularity, with those in the upper-1900s coming in the highest, Slate magazine...

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SBI tops ATM expansion in non-metros: Study

The largest public sector lender, State Bank of India, is leading in expansion of ATMs in non-metro and semi-urban centres, an Assocham analysis of RBI data shows.While SBI has 5,783 automated teller machines (ATMs) in metro cities, the cash dispensing machines in urban centres other than metros and in semi-urban areas are 7,511 and 6,419, respectively . Even in the rural areas, the bank has 2,756 ATMs.Following SBI is another public sector lender, Punjab National Bank, which has a larger number of ATMs in the non-metro cities than in the metros,...

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UCO Banks cuts lending rates by 25-150 bps

UCO Bank has slashed interest rates by 25-150 basis points on various retail and priority sector loans with immediate effect.The bank has reduced rates on home loans by 25 basis points to 10.50 per cent, car loans by 50 basis points to 10.75 per cent, education loans by 150 basis points to 12.75 per cent, said a press statement issued by the bank.This apart, the bank has also lowered interest rates on advances above Rs 1 crore to the MSME and agriculture sectors by 25-150 basis points. These rates would be applicable on all fresh loans sanctioned...

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SBI cuts base rate by 0.25% to 9.75%

Acting on RBI's cue, State Bank of India today reduced the minimum lending rate by 0.25 per cent, giving relief to all types of borrowers."The cut in base rate was driven largely by the RBI's decision to cut the CRR yesterday," State Bank's Chairman Pratip Chaudhuri told late this evening. The reduction is effective from September 20.The decision by the country's largest lender comes a day after the Reserve Bank cut CRR by 0.25 per cent to 4.5 per cent inducting Rs 17,000 crore into the system.SBI is the first to cut base rate after RBI's policy...

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IOB observes Kisan Month

A.K. Bansal, executive director of Indian Overseas Bank, gave away farm loans and assets to borrowers and inaugurated exhibition of products of beneficiaries at Vilavoorkal Panchayat as part of Kisan Month celebrations.S.N. Misra, general manager (retired) and adviser to the bank; C. Haridas, chief regional manager; and Sukumariamma, president, Vilavoorkal panchayat, were present at the function.More than 1,500 customers attended. The bank sanctioned loans amounting to Rs 20 crore to 800 beneficiaries at the venue, an official spokesman said....

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Citi opens first ‘smart banking’ branch

Citibank India announced the opening of its first smart banking branch in Noida.The smart banking branch offers services covering general banking, wealth management, loans and credit cards.Facilities such as a media wall to display information, touch screens to view product demonstrations, a workbench that allows customers to conduct independent banking transactions and video conferencing facility for consultation from Citibank personnel.Anand Selvakesari, Country Business Manager, Global Consumer Group, Citi India, said, “The introduction...

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Federal Bank tightens security verification system

Federal Bank announced that it has strengthened its Internet banking security verification system. It has implemented the Finacle-enabled two-factor authentication solution for its corporate and retail Internet banking customers, says a press release from the bank.Finacle from Infosys, through its strategic partnership with CA Technologies, has put in place a vigorous security framework which provides two-factor authentication.The solution helps ensure mutual authentication between the bank and the end-user, enabling an easy and transparent...

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PNB steps up presence in Kerala

The Punjab National Bank has taken steps to increase its presence in Kerala. The number of outlets will touch 310 by the end of October from the present 290 in the State.The bank, with 141 branches and 149 ATMs has also plans to open more ATMs.K.V. Rajesh, deputy general manager and circle head, said the business in Kerala has crossed Rs 7,500 crore by June and the bank is aiming to achieve a business of Rs 10,000 crore from the State by the end of this fiscal. New branches The new branches are located at Maradu and Piravom in Ernakulam...

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IOB to disburse Rs 1,200-cr crop loans by month-end

Indian Overseas Bank (IOB) is observing July-September as ‘kisan months’, according to M. Narendra, Chairman and Managing Director, IOB.Addressing presspersons here, Narendra said that the bank will disburse around Rs 1,200 crore of crop loans by September-end; since July, the bank has disbursed around Rs 600 crore.The agricultural lending of the bank stood at Rs 19,932 crore at the end of March 2012. The bank wants to take this to Rs 26,000 crore by the end of this financial year, he said.To encourage priority sector lending, particularly...

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SBH cuts home, car loan rates by up to 50 bps

With the festival season round the corner, banks have started cutting interest rates to attract customers.The State Bank of Hyderabad (SBH) has launched a festive campaign, which runs from September 17 to December 31, for its home and car loan schemes.The bank has slashed interest rates by up to 50 basis points on both these segments.Further, no processing charges would be levied for car loans and there is a 50 per cent concession on charges for home loans, the bank said in a press release.SBH has about 1484 branches across the country, where...

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HDFC bank launches 10,001st ATM at Kovalam

HDFC Bank, India’s second largest private sector bank, commissioned its 10,001st Automated Teller Machine (ATM) at Kovalam in the state capital.The ATM was inaugurated by K Jayakumar, state Chief Secretary, at a function last night, a bank press release said here today.The launch of the 10001st ATM in Kerala follows the inauguration of the 10,000th ATM, commissioned last week in Ajmer Sharif, Rajasthan.The launch reflects the bank’s endeavour to provide all forms of electronic channels – ATMs, net banking and mobile banking, for customers....

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Fullerton India raises Rs 850 crore

Non-banking financial firm Fullerton India Credit Company said it has raised funds worth Rs 850 crore, including Rs 150 crore in equity capital. Fullerton India would receive Rs 150 crore additional equity capital from its parent firm Singapore-based Fullerton Financial Holdings, it said in a statement. Both entities are part of Singapore's Temasek Holdings. "This fresh infusion of capital is timely. Fullerton India required additional capital to support growth plans, expand its distribution, enhance customer service capabilities and to extend...

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Home loan rate cut: Options for old borrowers

Many home loan borrowers, who were hoping for a reduction in interest rates, are clearly disappointed with the Reserve Bank of India, which left the rates unchanged in its policy review. They are not enthusiastic about the dovish policy statement, which many bankers say clearly indicates the rates may start coming down gradually. Their main grouse is that even though many banks, especially public sector banks, have already lowered interest on floating rate loans by 0.25% — which translates into a saving of Rs 17 per Rs 1 lakh — these banks...

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IDBI bond issue gets 'BBB-' rating from S&P

Global rating agency Standard & Poor’s (S&P) today assigned ‘BBB-’ rating, indicating investment grade, to the IDBI Bank’s proposed bond issue.The rating on the proposed issue reflects the “long-term counterparty credit rating” on the bank, S&P said in a statement.“The proposed notes will constitute direct, unconditional, unsecured, and unsubordinated obligations of IDBI Bank,” it said.Meanwhile, another global rating agency Moody’s has assigned a Baa3 rating to IDBI Bank’s proposed issuance of senior unsecured notes under its $1.5...

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Karnataka Bank to issue tier-II bonds

Karnataka Bank Ltd has decided to augment its capital funds by issue of tier-II bonds. The bank informed the NSE that the board of directors, which met on September 14, has discussed the matter of raising the capital funds.“The board, after deliberations, decided not to raise equity capital. It was further decided to augment the capital funds by issue of tier-II bonds,” the bank informed the exchange....

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HDFC Life elevates CFO Padalkar as ED

Private insurer HDFC Life today said it has elevated Chief Financial Officer, Vibha Padalkar as executive director.Padalkar, who joined the company in 2008 as chief financial officer will continue to hold the post, the company said in a statement.“Vibha has played a pivotal role in some of the high impact milestones for HDFC Life, including implementation of SAP across our offices, reporting under IFRS, setting up an enterprise wide risk management system, leading the efforts on specific tax changes affecting the industry and managing our cost...

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CRR cut will reduce dependence on high cost deposits: Vijaya Bank chief

The RBI's decision to reduce CRR by 25 bps will help bring down dependence of banks on high cost deposits, according to H.S. Upendra Kamath, CMD  of Vijaya Bank. Speaking to Business Line on the sidelines of a programme here on Monday, he said that this move will release around Rs 16,000 crore into the system.The profitability of banks will increase as the reliance on high cost deposits will come down, he said.Those banks who are not dependent on high cost deposits can use this amount for onlending. This will also help the banking system,...

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RBI keeps key rates unchanged; cuts CRR

Inflation uppermost on its mind, the Reserve Bank of India on Monday refrained from lowering key rates and restricted itself to a token 25-basis-point cut in the amount of cash that banks need to park with it. After the barrage of reform measures unleashed by the Government last week, the RBI’s move was seen as a calibrated response. The reduction in the the Cash Reserve Ratio, to 4.50 per cent from 4.75 per cent beginning September 22 fortnight, will release about Rs 17,000 crore into the banking system. This could lead to a cut in lending...

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