PSBs to get interest subsidy of 2% on farm loan: RBI

The Reserve Bank today said all public sector banks will get an interest subsidy of 2 per cent per annum against short term production loan up to Rs 3 lakh to farmers."Government will provide interest subvention of 2 per cent per annum to Public Sector Banks (PSBs) in respect of short-term production credit up to Rs 3 lakh during the year 2012-13," RBI said in a notification.This subvention will be available to PSBs on the condition they make available short-term production credit up to Rs 3 lakh at ground level at 7 per cent per annum, it...

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Corp Bank opens gold loan centre at Chandigarh

Corporation Bank opened a loan centre for small and medium enterprises and a gold loan shoppe at Chandigarh recently.A bank release said here that Chairman and Managing Director Ajai Kumar launched the centre in the presence of Ashwani Kumar, Executive Director of the bank.The SME loan centres of the bank are located in Delhi, Hyderabad, Bangalore, Chennai, Coimbatore, Pune, Mumbai, Vadodara, Kolkata, Mangalore, Ludhiana and Chandigarh.The release said that the gold loan shoppe is an exclusive gold loan counter to provide quick and fast clearance...

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Central Bank of India raises Rs 500 cr via bond offer

Central Bank of India said it has raised Rs 500 crore by issuing bonds via private placement basis.“The Bank on September 28, 2012 has raised Rs 500 crore by issue and allotment of 5000 unsecured Perpetual Tier-I Bonds (Series II) of face value of Rs 10 lakh each on private placement basis,” it said in a BSE filing.It, however, did not provide further details.The leading public sector bank had posted a profit of Rs 336 crore and total income of Rs 5,625 crore in the April-June quarter.Besides, its deposits were Rs 1,96,977 crore in the June...

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Kotak Mahindra Bank hikes savings rates

Kotak Mahindra Bank is wooing customers to open savings bank accounts with its 6 per cent rate on deposits above Rs 1 lakh, and the ad campaign for the same has resulted in impressive growth, according to Virat Diwanji, the Executive Vice-President and head, branch banking.He told presspersons here on Friday that along with four other private banks, Kotak was offering six per cent on savings bank accounts. Most of the other public sector and private banks were offering only four per cent. He said the bank had launched an aggressive ad campaign...

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YES Bank gets RBI nod to enter equity broking biz

YES Bank said it has received the Reserve Bank of India’s (RBI) approval to foray into securities broking business.The private sector lender will offer its retail customers a complete suite of banking services, including savings, investments, wealth and loan products. The bank expects to launch the securities broking business operations during FY'13 and FY'14. Brokerage subsidiary According to current RBI guidelines, the bank will have to float a new subsidiary to domicile the equity broking business. The bank will invest about Rs 25 crore...

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Syndicate Bank opens branch in Birbhum

Syndicate Bank opened a new branch at Suri in Birbhum district of West Bengal. It is the fifth branch of the bank in Birbhum, an economically backward district, and the 91st branch in West Bengal. S. Ramachandran, General Manager, said Syndicate Bank now has over 2,715 branches spread across the country....

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RBI to raise Rs 1.3 lakh crore through bond auctions

The Reserve Bank of India will auction bonds worth Rs 1,30,000 crore in the third quarter of the current fiscal on behalf of the Government."The RBI, in consultation with the Government of India, after reviewing the cash position of the Government of India, has decided to notify the amounts (worth Rs 1,30,000 crore) for the issuance of Treasury Bills for the quarter ending December 2012," the central bank said in a release.The bond markets responded favourably to the news as the new borrowing programme indicated that the Government will stay...

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HSBC issues first documentary credit in yuan to pharma co

The second largest foreign lender HSBC India said it has issued its first yuan-denominated documentary credit (DC) in the country for a Mumbai-based pharma firm, without naming the borrower.A documentary credit is a commitment issued by a bank to pay a supplier within a prescribed time limit as long as the clearly defined terms and conditions are met, and acts as a shield for traders against cash flow issues.Commenting on the development, HSBC India Managing Director and Commercial Banking Head, Sandeep Uppal, said “domestic businesses have...

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Yes Bank to launch a broking subsidiary 'Yes Securities'

Yes Bank has received Reserve Bank of India approval to set up a broking subsidiary, Yes Securities Private Ltd. This subsidiary will have a capital of about Rs20 to 25 crore.The broking business will compliment our retail liabilities and wealth management proposition,'' said Rana Kapoor MD & CEO Yes Bank. It would bring granularity in our current and saving account base. The focus would be on retail broking,'' said Kapoor.The bank wants to increase its current and saving account base to 20% by 2013 from 16.2% at the end of June 2012.The...

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Citi India says withholding tax reduction to drive US bond issues

Citi India said the government's decision to reduce withholding tax to 5% is a driver for increased issuance activity in the $ bond markets by Indian corporates.NTPCBSE was the first to take advantage of this move and received a very positive response. The issue was oversubscribed by over 8 times, 4.75% coupon for 10 years. "This certainly sets the right tone for other Indian corporat to follow," Rajiv Nayar, head of capital markets origination at Citi India said."This transaction marks the first USD bond issuance from an Indian public sector...

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Punjab & Sind Bank pays Rs 36.61-cr dividend to Centre

Punjab & Sind Bank has paid Rs 36.61 crore to the Central Government towards dividend for the financial year 2011-12.A sum of Rs 5.94 crore has also been paid as dividend distribution tax.The dividend cheque was handed over to Finance Minister P. Chidambaram by the bank’s Chairman & Managing Director D.P. Singh here today.For the financial year 2011-12, PSB had declared 20 per cent dividend on the equity shares.srivats.kr@thehindu.co.in...

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Greater Bombay Coop Bank offers loan scheme

Greater Bombay Cooperative Bank on Thursday said that it will offer loan against gold ornaments besides doling out a savings account to customers. Borrowers can avail loans ranging from Rs 10,000 to Rs 25 lakh at an interest rate of 13 per cent a year on a daily reducing balance without any documentation charges. Customers will get loan within an hour of their arrival at the branch as all 22 branches of the bank have gold assaying machines, the bank statement said. The Mumbai-based Urban Cooperative Bank has got active in the gold loan business...

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Kotak Mahindra sees 50% growth in saving bank deposits

Kotak Mahindra Bank said on Wednesday that it expects 50 per cent growth in saving bank deposits this fiscal.The private sector bank has already posted a growth of 68 per cent in saving bank deposits at Rs 5,540 crore as on June 30, 2012 as against deposits of Rs 3,307 crore in corresponding period of last fiscal.“We expect 50 per cent growth from saving bank deposits in current fiscal,” the bank’s President (Consumer Banking) KVS Manian told reporters here.The bank offers 6 per cent rate of interest on saving bank balances above Rs 1 lakh...

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Now, ATMs that scan your hand to shell out cash

Forgot your ATM card at home? No worries, this Japanese machine will scan your hand and give cash.A regional bank in Japan on Wednesday started operating ATMs for cash withdrawals, deposits and balance inquiries that do not require plastic cards but instead identify account holders by scanning their hands.Account holders using the service offered by Ogaki Kyoritsu Bank based in Gifu Prefecture are required to input their birthday, place their palm on the sensor and input a PIN at an automated teller machine, Kyodo News agency reported.Registration...

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IRDA working on mechanism for faster approval of products

The Insurance Regulatory and Development Authority of India (IRDA) is expected to come out soon with a mechanism for faster regulatory approval of new insurance products. The regulator will also encourage companies to launch low premium products for increasing insurance penetration.A broad roadmap for the development of insurance sector is expected to be out any time now. This issue has become important after the Prime Minister and the Finance Minister promised measures for the insurance sector. In this regard, the Finance Minister P Chidambaram...

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IRDA Chief favours FDI hike in insurance sector

Insurance Regulatory and Development Authority (IRDA) Chairman J. Hari Narayan welcomed the suggestion to hike foreign direct investment in the sector. He was speaking to the media at an insurance summit organised by Assocham.“Capital from FDI will definitely help. The total volume of money in the IPOs (initial public offer) raised by insurance companies is limited. So, like other sectors, insurance too will require greater levels of investment and in that regard, we will welcome steps to increase FDI in the industry,” he said.Hari Narayan...

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HDFC Bank hints at rate cut by weekend

Private sector lender HDFC Bank said it will decide on a possible interest rate cut later this week.“When costs go down, interest rates will go down. That (a rate cut) the Alco (asset liability committee) will decide now,” bank’s Managing Director and Chief Executive Aditya Puri told reporters here, adding that the Alco will meet “by the end of the month“.He said the bank is saving 0.06 per cent as a result of the recent cut in the cash reserve ratio (CRR), which is the amount of deposits banks have to pass with RBI, while there is also additional...

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Yes Bank intervenes in Deccan Chargers-BCCI dispute

Yes Bank, the financial supporter of beleagured Deccan Chronicles Holdings Ltd (DCHL), today moved the Bombay High Court, saying it would like to intervene in the petition filed by DCHL challenging the decision of the BCCI to terminate its IPL franchise ‘Deccan Chargers’Yes Bank Counsel Milind Sathe filed a Chamber Summons before Justice S J Kathawala, urging that they should be made a party to the petition and heard in the matter.DCHL Counsel Zal Andhyarajunam asked for time to file a reply, following which the court fixed the matter tomorrow...

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UB Group can tap other business to save Kingfisher: SBI

The Vijay Mallya-promoted United Breweries (UB) Group can unlock a lot of cash from its liquor business and non-core businesses and deploy the same to revive Kingfisher Airlines (KFA), said a top State Bank of India official.India’s biggest bank and 16 other banks have a loan exposure of about Rs 7,000 crore to the beleaguered KFA.According to SBI Chairman Pratip Chaudhuri, from all accounts, UB Group and Vijay Mallya are very keen to retain control of KFA as his entire branding and image revolves around Kingfisher.“Lot of his (Mallya’s) products...

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BoB plans to hire 20k people in 4 years; to add 500 branches

Bank of Baroda (BOB) is planning to hire around 20,000 people over the next four years and will add more than 500 domestic and international branches and offices in the current fiscal, a top official said today.Besides, the Australian regulator had issued licence to the bank, paving the way for it to open an office there, Bank of Baroda Chairman and Managing Director M.D Mallya said.The bank is planning to hire around 20,000 people over the next four years, he added.BOB has a network of 4,000 branches in India and 96 foreign branches and offices,...

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Sebi imposes fine on CA firm owner in BoR matter

Market regulator Sebi on Monday imposed a penalty of Rs 6 lakh on Dilip S Mehta, owner of a chartered accountancy firm, for failing to respond to summons issued by it in relation to a probe into the affairs of erstwhile Bank of Rajasthan.The matter pertains to alleged irregularities committed by former promoters of Bank of Rajasthan (BoR).Imposing a “penalty of Rs 6 lakh”, Sebi in its order today said Mehta’s failure indicates that the default is repetitive in nature.The Securities and Exchange Board of India (Sebi) had summoned Mehta to examine...

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Canara Bank to farmer’s aid in changing times

In the ever changing world, change is the only unchanging facet.Agriculture in India, too, has been seeing its fair share of changes over the last few decades — from the time of Green Revolution of the ‘60s. Agriculture is now more than growing crops and rearing livestock.Indian agriculture transforming into a commercially viable occupation. Intensive farming, considering small holdings, and corporatisation and contract farming are turning the face of Indian agriculture. Dedicated line Canara Bank has a dedicated line for disbursal of credit...

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LIC sells pension plan online

The Thiruvananthapuram division of Life Insurance Corporation of India has commenced online sales of Jeevan Akshay, a pension plan.Alexander Jacob, additional director-general of police, handed over the first policy at a function held here to commemorate LIC’s 56th anniversary. This is a guaranteed plan where the pension starts with effect from the subsequent month on payment of the purchase price.The minimum purchase price is Rs 1.5 lakh, minimum age of entry is 30 and the maximum 85. There is an increase of one per cent of annuity if the...

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Higher interest draws more SB deposits in Kotak Mahindra Bank

Deregulation of the savings bank interest rate has led to a sharp spike in the savings bank deposits of Kotak Mahindra Bank in Tamil Nadu.The bank, which has 19 branches in the state, will open three more branches over the next six months.In a press release issued here, the bank said that after the RBI deregulated the savings bank rates, it has begun offering two sets of SB interest rates — 6 per cent for balance above Rs 1 lakh and 5.5 per cent up to Rs 1 lakh balance maintained in the SB account.The bank said the high interest rates offered...

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BoB aims at 19-20% biz growth this fiscal

Bank of Baroda hopes to grow its business 19-20 per cent during the current financial year. This is despite that the demand for credit is likely to remain subdued for some more time to come as a result of the current economic slowdown.Notwithstanding the ups and downs, the bank has been growing on an average by 27 per cent every year.“From 2005, we have been doubling our total business every three years,” said M.D. Mallya, Chairman and Managing Director of the bank.BoB closed the year 2011-12 with the total business size of Rs 6.72 lakh crore,...

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20 entities seek SEBI nod to set up AIFs

As many as 20 entities have sought SEBI’s approval to set up Alternative Investment Funds (AIFs), a newly created class of pooled-in investment vehicles for real estate, private equity and hedge funds.SEBI (The Securities and Exchange Board of India) has already allowed seven AIFs to set up shop in the country, all of which got their approvals from the market regulator last month.According to the latest SEBI data, 20 applications were pending with it for registration as AIFs as on August 31, 2012.The regulator had notified in May this year...

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Federal Bank in tie-up with IDA

Federal Bank Ltd has entered into a banking partner agreement with Indian Dental Association (IDA), Kerala Chapter, as its banking partner for various activities and social programmes. The activities include conducting ‘No Tobacco Day’, ‘Oral Hygiene Day’ and promoting among its members the various facilities and financial products provided by the bank. An MoU in this regard was signed by T. Oommen Benjamin, general manager and M. Raveendranath, IDA president, Kerala, in the presence of D. Sampath, the bank’s additional general manager, among...

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Union Bank eyes retail business for growth

Union Bank would focus on strengthening its retail portfolio in the current fiscal as a part of increasing its business in the country.“The bank will have a major focus on retail business during the current financial year”, the bank said in a statement.The bank’s total business as of March 31, 2012 was Rs 4,03,900 crore with deposits of 2,22,869 crore and advances of Rs 1,81,031 crore. UBI’s capital adequacy ratio is 11.85 per cent.The bank’s outstanding lending to agriculture sector is Rs 1,739 crore, for Micro, small and medium enterprises...

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IDBI Bank to raise $500 million from overseas in next 6 months

State-owned IDBI Bank has said that it plans to raise another USD 500 million (about Rs 2,700 crore) through bonds to fund its overseas business growth.“We will be raising $500 million from foreign currency bonds by March 2013,” IDBI Bank Executive Director Melwyn Rego told PTI.The issue would be made under the $1.5-billion Medium Term Note (MTN) programme listed on the Singapore Stock Exchange.Of the total limit, the bank has raised $1 billion in two tranches of $500 million each.Last week, the bank raised $500 million from foreign currency...

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Syndicate Bank plans slew of customer-friendly products

Transferring your balance from savings bank to fixed deposit, will be a click away for customers of Syndicate Bank soon. All that is required is registration on Internet banking.Called e-Term Deposit, the product will be launched in the next week to 10 days. It will be one of the slew of new customer-friendly products, that the Manipal-headquartered bank is coming out with, said Anjaneya Prasad, Executive Director.The other new initiatives are a gold debit card and e-lounge branches.In the case of the gold debit cards, the card-holder will...

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