Sebi may allow investors from 7 more countries to invest in Indian equity and debt markets

After a slew of measures for domestic investors, the market regulator now plans to facilitate overseas investments into equity and debt markets. The Securities & Exchange Board of India is planning to sign bilateral treaties with seven more countries to allow wealthy individuals from these jurisdictions to invest in Indian stocks. Sebi, in its board meeting in Mumbai on Saturday, will also consider several other measures, such as changing the norms for debt limit for foreign investors, and collapsing various categories of investors such...

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Andhra Bank gets new ED

Satish Kumar Kalra has taken over as the new Executive Director of Andhra Bank in Mumbai.Kalra joined the banking industry in 1981 as Probationary Officer in Allahabad Bank and worked in various capacities.Prior to joining Andhra Bank as Executive Director, he was General Manager, handling the Treasury Operations of Allahabad Bank at Mumbai....

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OBC cuts deposit rates in certain maturities

Oriental Bank of Commerce (OBC) has cut the deposit rates on maturities between one and three years by 10 basis points to 9 per cent per annum.The move has come in the wake of softening interest rates in the system and comfortable liquidity, V. Kannan, Executive Director, OBC, told Business Line.Almost 70 per cent of the inflows of deposits to the bank come under the one to three year time period.OBC move also comes in the backdrop of softening commercial deposit rates for one-year period.The deposit rate reduction will come into effect from...

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Hike in FDI limit likely to attract Rs 30,000 cr: Irda

The increase in FDI limit in the insurance sector may attract Rs 30,000 crore that the industry requires over the next five years, Insurance Regulatory and Development Authority has said.A day after the Union Cabinet cleared a proposal to allow up to 49 per cent Foreign Direct Investment in insurance, Irda Chairman J Hari Narayan said the move was essential as inflows are necessary for the sector to grow at 11 to 12 per cent.“It (the FDI) will give boost to the insurance sector. And it is required any way. Otherwise, we don’t have required...

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HDFC drops as Carlyle exits

Housing Development Finance Corp Ltd (HDFC) shares plunged nearly five per cent after private equity player Carlyle Group LP exited from the company by selling its remaining stake for about Rs 4,300 crore.On the BSE, the HDFC stock closed at Rs 749.65, down 4.89 per cent from its previous close. The stock touched an intra-day 52-weekhigh of Rs 793.85.The Carlyle Group sold about 57 million shares or the entire 3.7 per cent stake in HDFC through the open market. The shares were sold at an average price of Rs 761.42 a share.“Citi helped raise...

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Muthoot Finance bags Asian Leadership Awards

Muthoot Finance Ltd, a gold loan company has been honoured with two prestigious Asian Leadership Awards.The company won the Asian Sustainability Leadership Award for “Best Rural Outreach” and BFSI Award for the “Most Admired Loyalty Program.” The Awards, presented by Dr Chea Chamroeun, founder & President, Chamroeun University of Poly-Technology, Cambodia, was given away at a function in Dubai, a press release said.The Asian Leadership Awards 2012, held for the first time in Dubai, recognizes brands and business leaders for their significant achievements. The popular awards honour companies and leaders across 20 different categories for their contributions towards economic development,...

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Private life insurers hail decision to hike FDI limit to 49%

Private life insurers hailed the Union Cabinet’s decision to increase the foreign direct investment (FDI) limit in insurance sector from 26 per cent to 49 per cent.The FDI limit hike is, however, subject to Parliament approval.Reacting to the decision, Puneet Nanda, Executive Director, ICICI Prudential Life Insurance, said this is a very welcome step.“Life insurance industry needs a lot of capital. Many companies which need capital to fund their business growth will benefit from this decision. After Parliament approval, one could even see many...

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HDFC Bank, IOC to offer rural banking

HDFC Bank on Thursday announced its tie up with Indian Oil Corporation to provide banking services in the rural areas where IOC’s petrol pump outlets Kisan Seva Kendras will act as the Business Correspondents for the banks.Beginning with Pilibhit in Uttar Pradesh, the private sector lender plans to cover 1,000 KSKs to be able to serve around 1,500 customers, the bank said in a statement.The KSK outlets will offer banking services such as preliminary processing of loan applications, disbursal and collection of small value deposits, sale of micro-insurance,...

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SBI plans to roll out 4,000 'Talking ATMs' for visually impaired

Banking major State Bank of India intends to roll out 4,000 Automated Teller Machines to cater to the needs of visually challenged people in the country.This target is expected to be achieved in the next two years, Rakesh Puri, General Manager, SBI, told Business Line here.SBI on Thursday launched its first ever "Talking ATM" that would allow visually and physically challenged people to access banking facilities at the machine, without having to visit the branches.This SBI Talking ATM, which was inaugurated by Puri, is located at the Jawaharlal...

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Muthoot Finance extends NCD issue closing date to Oct 22

Muthoot Finance  said it has extended the closing date of its non-convertible debentures (NCD) issue to October 22. “The company in consultation with the lead managers to the issue has decided to extend the issue period up to October 22, 2012. The issue shall now close on October 22, 2012,” it said in a BSE filing. The issue was scheduled to close on October 5. Muthoot Finance said the decision was taken after the approval given by the NCD (Non—Convertible Debentures) Public Issue Committee of the Board of Directors of the company. The...

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HSBC Bank retains GDP target for India at 5.7%

The positive market sentiment and inflows on the back of the recent reform push notwithstanding, HSBC Bank has decided to maintain the GDP target for India at 5.7 per cent for this fiscal.Recently the Government approved a spate of measures, including allowing FDI in retail and aviation and approving a diesel price hike, in a bid to turbo charge the economy and shake off accusations of policy paralysis.HSBC Chief Economist for India and ASEAN Leif Eskesen said: “These reforms were expected but the timing and magnitude was the question. While...

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Tilak Raj Bajalia appointed Deputy Managing Director, SIDBI

The Ministry of Finance has appointed Tilak Raj Bajalia as Deputy Managing Director of the Small Industries Development Bank of India (SIDBI). Prior to taking up this assignment, Bajalia was the Executive Director of IDBI Ltd.Bajalia is a BA, ICWA and Certified Associate of the Indian Institute of Bankers. He started his career in a commercial bank in 1974 and moved to IDBI in 1983. Bajalia has, during his 38 years in banking, handled varied portfolios including corporate and retail finance, recovery and NPA management, restructuring and human...

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Retail loans: Federal Bank to decide on cut in interest rates soon

Private sector lender Federal Bank will decide on a cut in interest rates on retail loans next week, said a senior official at the bank.“There is a possibility that interest rates may go down. Our Asset Liability Committee will decide on the rate cut next week,” said D. Sampath, Head of Retail Banking, Federal Bank.The Kochi-based bank has announced that it will offer home loans at its base rate of 10.45 per cent from October 3 to October 18 as part of the 67th anniversary celebrations. Earlier, the minimum rate of interest on home loans was...

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Kotak Mahindra Bank to collect VAT in 4 States

Kotak Mahindra Bank has got the mandate to collect VAT (value-added tax) in four States, according to an executive.Addressing presspersons here on Wednesday, Puneet Kapoor, Executive Vice-President, Consumer Banking, Kotak Mahindra Bank, said that in a recent development the Government has agreed to open up government business to private banks.“The first mandate we have received is to collect VAT in four States on behalf of the respective Governments,” he said.This facility went online in Delhi in mid-September and Andhra Pradesh this month,...

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New CMD of Allahabad Bank

Shubhalakshmi Panse has taken charge as the Chairperson and Managing Director of Allahabad Bank effective October 1.She earlier served as the Executive Director of Vijaya Bank. Panse was responsible for the administration and business development of Vijaya Bank for a period of two years.Panse, who joined Bank of Maharashtra as probationary officer, has worked in almost all key segments of banking including recovery, credit, fund management, law, accounts, IT and business process re-engineering, said a press statement issued by Allahabad Bank....

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Bank of Baroda expects to set up 100th overseas branch soon

Bank of Baroda, with 96 branches abroad, will soon take the number to 100 in the near future, according to Executive Director P. Srinivas.He was addressing customers here on Wednesday after inaugurating a regional office of the bank, the second in the State after Hyderabad. He said 60 branches in coastal districts from Srikakulam to Nellore would be under the jurisdiction of the regional office. The branches in the Telangana and Rayalaseema regions would be under the Hyderabad office.He said the bank runs 3,988 branches in the country and its...

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IRDA to finalise IPO norms for non-life insurers soon

Insurance regulator IRDA will soon finalise IPO norms for non-life insurance companies as well as regulations on amalgamation of life insurance companies."This year we have finalised the amalgamation of life and IPO of non-life. So these two will be made regulation soon. The insurance advisory council has already met… that is the penultimate step," said J. Hari Narayan, Chairman, IRDA, on the sidelines of CII’s 6th Health Insurance Summit 2012 here today."Then it goes to the board and then it is presented."He also said that IRDA was in favour...

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Convert savings on lower EMI into deposits, SBI urges customers

If you are a State Bank of India home loan customer then do not be surprised by branch officials trying to persuade you to channelise savings from the recent lowering of instalments into a recurring deposit.The bank is drawing up plans to showcase the “lower equated monthly instalment – savings – investment” proposition to not only its existing customers but also prospective customers (including home loan customers of other banks/ housing finance companies).The country’s largest bank has lowered the equated monthly instalments (EMIs) on home...

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Apex Court reverses own verdict on cheque dishonour

The beneficiary of a cheque who chose not to prosecute the drawer after serving the first notice on him can do so after serving on him a notice the second and subsequent times, held the Supreme Court. In MSR Leathers v. Palaniappan and Another, the Court overturned its own verdict delivered in Sadanandan Bhadran’s case in 1998. In that case it had held that if the beneficiary of a cheque after serving notice on the defaulting drawer – within a month of notice of dishonour – to pay up within fifteen days, does not follow it up with a complaint...

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HDFC Securities gets nod to distribute products of National Pension System

HDFC Securities said it has been granted permission to distribute National Pension System (NPS) products by sector regulator, the Pension Fund Regulatory Development Authority (PFRDA).The brokerage firm, a subsidiary of the country’s second largest private sector lender HDFC Bank, has been appointed as a point of purchase for the products, it said in a statement issued here.PFRDA allowed citizens to participate in the NPS in 2009 to help individuals plan and prepare for post-retirement life, which was restricted to Central Government employees...

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RBI rationalises categories of pre-paid payment cards

The Reserve Bank of India (RBI) rationalised the categories and value limit of pre-paid payment cards to three broad categories from five earlier.The pre-paid cards, technically known as semi-closed pre-paid instruments (PPI) are convenient alternatives to cash and cheques. These are mainly issued by banks and Non-Banking Financial Companies (NBFCs) on payment of specified amount and are used for purchasing goods and services from limited outlets.As per revised guidelines, the first category of cards will have cash limit of Rs 10,000 and the...

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Individuals may get tax relief over Rs 1-lakh cap

Taxpayers may get some relief over and above the current ceiling of Rs 1 lakh against various saving instruments if the Finance Ministry accepts the suggestions currently before it.The Government is also mulling introducing a ‘grandfathering’ provision in existing life-insurance policies that are eligible for a tax break.The ‘grandfathering provision’ means that all tax benefits given under a contract in a life insurance policy bought today under existing tax provisions will continue even after that particular tax provision is withdrawn or...

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HUDCO cuts lending rates

The Housing and Urban Development Corporation Limited (HUDCO)  said it had reduced lending rate by 25 basis points (bps) in its floating rate on most of its lendings on housing and urban infrastructure development projects. With this reduction, the floating interest rates for Economically Weaker Sections and Lower Income Group housing categories would range from 8.25 per cent to 8.75 per cent, a HUDCO release said. In respect of HUDCO Niwas, the individual lending scheme of HUDCO, the floating interest rates would henceforth be 10...

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New South Indian Bank branches in Palakkad region

As part of taking banking services to common man and to expand its rural outreach (Meaningful Financial Inclusion), South Indian Bank has launched six more branches as well as five ATMs in the Palakkad region.The newly opened branches are Engakkad, Kottayi, Palakkayam, Perumatty, Puthupariyaram, and Shornur.Mar Jacob Manathodath (Palakkad Diocese) inaugurated the pension schemes NPS Lite & NPS on the inaugural function which was presided by V A Jopseph, MD & CEO of South Indian Bank....

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ICICI Prudential MF partners with Syndicate Bank

ICICI Prudential Mutual Fund has entered into a partnership with Syndicate Bank for distribution of its mutual fund schemes to strengthen its reach.The bank will now be distributing the Fund’s products to its customers across India through its network of 2709 branches, it said in a statement...

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Union Bank, OBC revise deposit rates on FCNR accounts

Public sector lenders, Union Bank of India (UBI) and Oriental Bank of Commerce (OBC) revised their deposit rates on FCNR accounts (foreign currency non-deposit accounts) with maturity of one-five years from today.As per the revised rates announced by Union Bank, the deposit rates have been revised downwards by 4-12 basis points on 1-5 year maturity in dollar-denominated accounts.Similarly, rates have also been revised for FCNR accounts in the euro, pound, Australian and Canadian dollars among others.This is the second revision of deposit rates...

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Allahabad Bank to focus more on farm credit

Allahabad Bank has launched a campaign called – “Agriculture Credit Disbursement Quarter October-December 2012.” The campaign has been launched to give a boost to the bank’s priority sector and agriculture credit portfolio. During the campaign, the bank aims to make available debt capital to farmers for their crop cultivation, farm mechanisation and allied activities. The branches have also been directed to extend credit for Micro and Small Enterprises, with special stress on micro enterprises, said a press statement issued by the bank...

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HDFC Bank to speed up financial inclusion in Odisha

Promising to speed up the process of financial inclusion, mainly in rural areas of Odisha, HDFC Bank on Saturday announced its plan to increase the number of branches from 61 to 102 in the state by the year end.“Now the bank has 61 branches in 25 districts of Odisha. The bank is going to open 11 more branches by October and would add 30 new branches by December, 2012,” Managing Director of HDFC Bank, Aditya Puri told reporters here.With the opening of the 102 branches the leading private sector bank would have branches in all the 30 districts...

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Country lacks effective regulatory system, says IRDA chief

India does not have an effective system to regulate and manage its health care sector , said J. Hari Narayan, Chairman, Insurance Regulatory and Development Authority. He said he would be glad if this issue is considered by Parliament or State Governments.Addressing a gathering at a forum on health insurance, organised here by the Consumers’ Association of India, he said the State Government-run health insurance schemes were very successful.It will be good if the State Governments concerned could include those who are not part of the target...

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Despite rising NPAs, banks Q2 profit to grow 14.5%: Kotak

Banks are likely to report 14.5 per cent growth in their second quarter earnings, notwithstanding rising bad assets and debt recast, said a report by brokerage firm Kotak Institutional Equities.The report, however, says the growth in the core net interest income component for banks will slow down to 13 per cent for the system, with state-run banks logging in at 9 per cent and private lenders at a much faster clip of 22 per cent.The report also notes that a rise in treasury incomes will lead to an overall 11 per cent rise in non-interest income...

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ICICI Bank to offer reward points to SB accountholders

In a bid to stave off competition from the likes of Kotak Mahindra Bank, IndusInd Bank and YES Bank, ICICI Bank has unveiled a rewards programme for customers transacting through savings bank (SB) account.The rewards programme comes at a time when the abovementioned banks are paying higher interest rates, ranging from 5.5-6 per cent on SB balance up to Rs 1 lakh and 6-7 per cent on balance over Rs 1 lakh.All public sector banks and majority of the private sector banks, including ICICI Bank, HDFC Bank, and Axis Bank, have left their SB interest...

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HDFC Bank joins hands with PUNGRAIN

HDFC bank joined hands with Punjab Grains Procurement Corporation Ltd (PUNGRAIN) to facilitate payment to its commission agents spread over 350 mandis in Punjab.PUNGRAIN, in its initiative has decided to make payment to their commission agents through 'RuPay Debit card' and has developed the Kisan Arhtia (commission agents) information and Remittance Online Network (KAIRON) with the help of National Payment Corporation of India (NPCI).For this project, HDFC Bank will install its Point of sales (POS) machines in over 350 mandis to facilitate...

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