India Post to enter banking space

The Indian postal department plans to enter the banking business with RBI deciding to grant new bank licences to entities with credible track-record.Sources said the Department of Posts, which a strong foot print in rural areas, has appointed Ernst and Young as consultant for proposed 'Post Bank'."Ernst and Young is expected to submit detailed project report by April 2013, after which all necessary measures will taken up to apply for banking licence,"a source at Ministry of Communications and Information Technology told PTI.Sources added that...

Read more »

Education loans benefit women more than men: Study

Education loans help women more than men in graduating from college, a new US study has found.The research findings showed that, on average, taking out loans actually makes graduation more likely for all students.But at a certain point – which is about $2,000 lower for men than for women – debt has diminishing returns and becomes less effective at boosting chances of graduation.One reason loans help women more may be tied to job prospects for college dropouts – which are much better for men than for women, researchers said.“At least early in...

Read more »

RBI releases final guidelines for new bank license

The Reserve Bank on Friday released the final guidelines for issuing of new banking licences, allowing entities in the private and the public sector as well as non-banking financial companies to enter the fray."Entities/groups in the private sector, entities in the public sector and non-banking financial companies (NBFCs) shall be eligible to set up a bank through a wholly-owned non-operative financial holding company (NOFHC)," RBI said in a notification.The document, however, does not mention how many licences will be issued.July 1 is the...

Read more »

Punjab & Sind Bank, United Bank lower lending rates

Punjab & Sind Bank and United Bank of India today announced reduction of minimum lending rate, or base rate, by 0.25 per cent and 0.20 per cent respectively.“The Bank has revised its ‘base rate’ from existing 10.50 per cent per annum to 10.25 per cent per annum with effective from March 1, 2013,” Punjab & Sind Bank said in a filing to the BSE.Base rate is the minimum rate at which banks lend to customers.“United Bank of India...has revised its base rate i.e., the benchmark rate for pricing its loan products, from existing 10.45 per...

Read more »

IDBI Bank ties up with EXIM Bank for loans to export units

IDBI Bank has tied up with Export Import Bank of India to facilitate loans to export-oriented small and medium scale enterprises.“The two banks would co-finance, co-arrange, syndicate rupee and foreign currency loans, provide refinance facility in Indian rupees and foreign currency for extending short term export credit and long term capex loans to eligible export-oriented companies, particularly in the SME sector,” IDBI Bank said in a release.Both the banks said they would also co-operate in promotional activities and provide advisory services...

Read more »

I-T forces HSBC A/c holders to provide details, surrender secrecy rights under Swiss law

This could well be a last-ditch attempt by tax authorities to finish the messy job of bringing to book individuals having undisclosed accounts with HSBC Geneva.In the past few days, men and women whose names appear in the now-famous list of account holders with the Swiss private banking arm of the British bank have been asked by income-tax officials to sign on a two-page letter spelling out their account details and, more significantly, surrendering their rights under the Swiss secrecy law.The individuals concerned have been told by tax officials...

Read more »

ICICI Bank to discontinue Kingfisher co-branded credit card

ICICI Bank has decided to discontinue its co-branded credit card with Kingfisher Airlines in the wake of the continued grounding of the debt-laden air carrier.“ICICI Bank and Kingfisher Airlines’ co-branded credit card programme has been discontinued due to discontinuation of Kingfisher Airlines services,” the bank said in a communication to its customers.“As a result, the ICICI Bank Kingfisher Airlines Credit Card will be valid till March 31, 2013,” it said, while asking card users to opt for another credit card from the bank.The bank further...

Read more »

IRDA slaps Rs 50-lakh fine on SKS Microfinance

The Insurance Regulatory and Development Authority (IRDA) has slapped a Rs 50-lakh penalty on SKS Microfinance Ltd, in perhaps the highest-ever penalty imposed so far.The only-listed microfinance institution in the country was fined for making unauthorised changes in the benefits of policies of its clients while acting as a group policyholder or administrator.The company had recovered advances extended towards funeral costs to the nominee of the deceased member which was later recovered illegally from the claim amounts paid by the insurer.“The...

Read more »

Trade unions’ strike hits banking, transport services

Key services, including banking and transport, were affected as the two-day general strike by 11 central trade unions and several independent federations began on Wednesday.While States such as Kerala, Bihar and Tripura were completely shut, the response was mixed in other States. There were reports of sporadic violence and lathi-charge in some areas, leading to the death of two workers in Haryana and Noida.Meanwhile, production is likely to be affected in the auto hub of Gurgaon, as 50 unions will stay off work on Thursday, including in Maruti,...

Read more »

PSU bank employees go on 2-day strike

Normal banking operations were hit today as the employees of public sector banks went on a two-day strike in response to a call given by the Central Trade Unions to press for wage hike in the backdrop of rising inflation.The nationwide strike call has been given by the United Forum of Bank Unions (UFBU) consisting of nine national-level unions, including AIBEA, NCBE, BEFI, INBEF, NOBW and AIBOC.Apprehending disruption in their normal banking operations, many banks had already informed their customers about the proposed strike.Meanwhile, sources...

Read more »

IRDA relaunches 'File and Use' procedure for life products

To fast track the approval mechanism, insurance sector regulator IRDA today re-introduced the process of automatic clearance to life insurance products.The IRDA said in a circular that the process…” requires the insurers to submit a copy of policy document with policy schedule under File and Use application...in respect of all products filed from April 1, 2013 onwards”.The IRDA had dispensed with the submission of policy document under File and Use or automatic clearance procedure in 2007.The regulator said it has re-introduced the approval...

Read more »

YES Bank picks up Microsoft SharePoint

Private sector lender YES Bank has chosen Microsoft SharePoint 2010 to reduce the turnaround time for customers by automating 150 processes thereby improving efficiency.The mid-sized bank will automate processes, which were previously either manual or semi-automated, to reduce the turnaround time by 40 per cent for its customers, improve efficiency and make real-time business intelligence available for its employees.This will also increase the decision-making speed by 70 per cent. YES Bank has evaluated multiple platforms with three key criteria...

Read more »

ICICI-led infra debt fund launched

Four financial institutions, led by ICICI Bank, today launched a $2 billion (about Rs 10,000 crore) Infrastructure Debt Fund (IDF), which would finance its first project by the end of next month.“This is the first IDF in the form of NBFC and will commence operations very soon. The capital of Rs 300 crore has been contributed,” ICICI Bank CEO and Managing Director Chanda Kochhar said.Besides ICICI Bank, the other sponsors of the India Infra Debt Ltd are Bank of Baroda (BoB), Citi and LIC. The ICICI group has 31 per cent, BOB — 30 per cent, Citi...

Read more »

United Bank of India cuts base rate by 20 bps

United Bank of India has reduced its base rate by 20 basis points to 10.25 per cent from 10.45 per cent. The change will become effective from February 25, said a bank statement.Source: thehindubusinesslin...

Read more »

Nabard staff to join strike

All India Nabard Employees’ Association (AINBEA) will join the two-day strike called by the central trade unions. This was decided at its ninth annual conference held in Hyderabad.Prominent parliamentarians Basudeb Acharya and Tapen Sen addressed the 105 delegates from all over the country.It elected V. K. Bhosale as general secretary; Jose T. Abraham as president; and Balakrishnan as treasurer of the association.Trade union leaders Pradeep Biswas, Samir Gosh, P. Venkitaramaiah, and G. Nageswara Rao of fraternal unions were among those who...

Read more »

HDFC Bank sees interest rates softening by 50-75 bps

Interest rates are likely to soften by 50-75 basis points in the year ahead, according to Aditya Puri, Managing Director, HDFC Bank.When asked about what the Reserve Bank of India’s interest rate policy stance should be after the Union Budget, Puri said, “Interest rate is not the panacea or the cause (for economic growth).“Yes, it (lower interest rates) can help if inflation comes under control, which to an extent has and we saw some transmission with the 25 basis points cut (in RBI’s key policy rates).”If the fiscal and current account deficit...

Read more »

IRDA chief does some plain talking

In a rare admission by a financial sector regulator, J. Hari Narayan, Chairman, Insurance Regulatory Development Authority, said the regulator had failed the policyholders when it came to Unit-Linked Insurance plans (ULIPs) and pension products prevalent two years ago . ULIPs and pension products were subsequently revamped by the regulator.“We failed in the understanding of allowing free market space and design for companies. We failed the policyholders. We allowed largely toxic products to prevail in the market and destroy public confidence...

Read more »

Bank unions to join TUs strike

State Bank of India has said that the United Forum of Bank Unions (UFBU) has decided to support and join the nationwide strike call given by the Central Trade Unions on February 20 and 21.The All India State Bank Officers’ Federation and the All India State Bank of India Staff Federation, being a part of UFBU, will also participate in the strike, SBI said in a statement to the BSE. Source: thehindubusinesslin...

Read more »

IDBI chief says SHCIL merger soon; NIM at over 2% this fiscal

Public sector lender IDBI Bank is hopeful of closing the fiscal with a net interest margin (NIM), the core profitability gauge, at over 2 per cent on the back of a 41 bps improvement in December quarter.The bank is also hoping to close the merger of Stock Holding Corporation shortly as it is expecting the regulatory and government permissions soon."We hope to close the merger of Stock Holding Corporation with the bank very shortly. We have already appointed i-bankers for the deal also as we are awaiting regulatory nod," IDBI Bank Chairman...

Read more »

PSU bank staff to go on two-day strike from Feb 20

Normal banking operations may be hit as employees unions of public sector banks have decided to join the two-days strike call given by central trade unions beginning February 20 to press for wage hike in the backdrop of rising inflation.The nation-wide strike call has been given by United Forum of Bank Unions (UFBU) consisting of nine national level unions including AIBEA, NCBE, BEFI, INBEF, NOBW and AIBOC in support of their demand.Apprehending disruption in their normal banking operation, many banks have already informed their customers about...

Read more »

HSBC Bank directed to pay Rs 25,000 for deficiency in service

The Hongkong and Shanghai Banking Corporation (HSBC) Ltd has been directed by a consumer forum to pay Rs 25,000 as compensation to one of its former credit card holders for not getting his name removed from a defaulters list even after he cleared all his dues.The New Delhi District Consumer Disputes Redressal Forum observed that once the card holder paid all the dues, the bank should have closed the accounts and informed the Credit Information Bureau (India) Ltd (CIBIL) that nothing was outstanding."We hold opposite party (HSBC Bank) deficient...

Read more »