Budget 2013: Ladies-only banks make strong business sense, say experts

The finance minister's proposal to set up a women's bank may have triggered a flurry of jokes on twitter and the social media, but bankers acknowledge that it will give a boost to financial inclusion."It will provide a sense of comfort for the segment of women that finds going to a bank intimidating," said Shikha Sharma, MD & CEO, Axis Bank.According to Aditi Kothari, EVP, DSP Blackrock, and the daughter of Hemendra Kothari, there is a tendency among women to leave financial matters to men and many do not know what to do in the event of...

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Fund houses flood markets with RGESS new fund offer

As the finance minister extended Rajiv Gandhi Equity Saving Scheme for three successive years and also allowed investors with Rs 12 lakh income to invest in these schemes for tax benefit FY2013-2014 onwards, mutual funds have increased their focus on RGESS. Seven new fund offers are open now to allow investors to tap RGESS to save tax.Birla Sun Life RGESS, DSP BlackRock RGESS Fund, HDFC RGESS, IDBI RGESS Fund, LIC Nomura MF RGESS Fund Series - 1, and UTI Rajiv Gandhi Equity Saving Scheme are the ongoing new fund offers.Reliance Mutual Fund...

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‘Intelligent-powered’ ATMs

ATM service provider, Diebold Systems today launched ‘intelligent-powered’ ATMs. The ATM automatically switches between three power sources (solar panel, alternating current grid and internal battery), managing up to 3-5 per cent cost savings,” said Wico van Genderen, Vice-President, Diebold Asia-Pacific.In addition to basic operations, the ATMs will provide card-less transactions and have an option for accepting small-volume currency deposits and bill payments at the ATM.Beena.parmar@thehindu.co.in Source: thehindubusinesslin...

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United Bank of India, UCO Bank hike deposit rates

United Bank of India has increased the rate of interest on domestic term deposits below Rs 5 crore by 25 basis points effective March 1.The revised rates for deposits of one-year tenure have been increased to nine per cent (8.75 per cent). Senior citizens will get an additional 50 basis points benefit on the rate, said a bank statement.UCO Bank has also upped interest rates on term deposits of Rs 1-5 crore effective March 2.The revised rates on deposits of 91-120 days has been increased to 8.75 per cent (8.25 per cent) and that on 121-180 days...

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Indian Bank revises FCNR rates

Public sector lender Indian Bank has revised downwards foreign currency non-resident (Banking) term deposit interest rates with immediate effect.The revised interest rates have been fixed at 2.75 per cent (from the existing 2.78 per cent) for deposits (in$) of one year and above but less than two years by the Chennai-based bank for FCNR (B) deposits.For deposits of two years and above but less than three years, the interest rates have been revised to 2.40 per cent from the existing 2.43 per cent, Indian Bank said in a statement.Interest rates...

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Ratnakar Bank enters A.P.

Emerging private sector scheduled commercial bank Ratnakar Bank on Friday entered Andhra Pradesh, as part of is plans to develop a pan-India network by next fiscal.Established in Kolhapur, Maharashtra in 1943, the bank intends to expand its network of branches from the current 123 to about 175 by the end of next fiscal. “We actually started expanding our operations on this scale from 2010. Now that we have our core banking in place, we plan to open about 40-45 branches a year,” Vishwavir Ahuja, managing director and CEO, told news persons here.The...

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Canara Bank bags 2 awards

Canara Bank has bagged the ‘Greatest Corporate Leaders of India – Banking” award instituted by World HRD Congress.According to bank release, the award is conferred to corporate which made an impact on technological advances in business environment change, building sustainability and leading through transformations.Also Shyamalendu Saha, General Manager, HR was awarded the “Most Talented HR Leader in PSUs.” Source: thehindubusinesslin...

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Corporation Bank launches new vehicle loan, current account schemes

To increase its vehicle loan portfolio and current account deposits, Corporation Bank has launched three new products.Addressing presspersons at the launch of these products in Mangalore on Friday, Ajai Kumar, Chairman and Managing Director of the bank, said that ‘Bumper Car Carnival’ is a 15-day limited period offer for financing new four wheelers to the customers.He claimed that the interest rate offered is the lowest at 10.40 per cent for a period up to 7 years. Processing charges are fully waived under the scheme, which will be in force...

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Karnataka Bank hikes deposit rate

Karnataka Bank has increased interest rate on deposits by 25 basis points on all fresh retail term deposits of 1-2 years maturity period.A bank release said here that the rate of interest on deposits has been increased from 9 per cent to 9.25 per cent with effect from March 1.Quoting P. Jayarama Bhat, Managing Director of the bank, it said that the enhancement of interest on deposit will have positive impact on resource mobilisation.vinayak.aj@thehindu.co.in Source: thehindubusinesslin...

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Punjab National Bank revises interest rates

Punjab National Bank has decided to realign the interest rates with the prevailing market rates.The rate of interest on single domestic term deposit of less than Rs 1 crore has been revised from 7.5 per cent to 8.75 per cent for maturity period of 180 days to less than one year with effect from March 1, 2013.Further for the senior citizens the additional rate of interest has been reduced to 25 bps against the existing rate of 50 bps.The bank has also revised the interest rates on FCNR(B) Deposits with effect from today. Source: thehindub...

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Highlights of budget for 2013-14 : Keynotes

Highlights of budget for 2013-14 Keynotes No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakhTen percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such incomeExcise duty on cigarettes to be increased 18 percentNo change in service tax of 12 percentService tax on all air conditioned restaurants regardless of whether or not they serve alcoholEducation cess to continue at 3 percent11 lakh people have benefited from direct cash...

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Union Finance Minister P Chidambaram presents the budget for 2013-14

Highlights of budget for 2013-14 presented in the Lok Sabha Thursday by Finance Minister P. Chidambaram: Revised budget expenditure for 2012-13 at Rs.14 lakh 30,824 crore Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at 5 lakh 55,224 crore Rs.41,000 crore for Scheduled Caste plan Rs.97,000 crore for women's development Rs.110 crore for department of disabilities Rs.37,330 crore for health ministry Average growth during UPA-1 was 8 percent; high growth not a novelty Current account deficit a worry because of high...

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StanChart in talks to acquire Morgan's India wealth biz

Standard Chartered Bank, the Asia-focussed UK Bank, is negotiating to acquire the wealth management business of Morgan Stanley, which is exiting many businesses and reducing head count to improve profitability."Standard Chartered is the frontrunner to acquire the business," said a person familiar with the matter. "Many players have reviewed the business, but there is no certainty the deal will go through. The talks are still on," the source added.A StanChart spokesperson declined to comment.Morgan Stanley, faced with increasing regulations...

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SBI hikes fixed deposit rates by 0.25% on select maturities

State Bank of India has raised the interest rates on fixed deposits by 0.25 per cent on select maturities with effect from March 1.Of the total nine maturity periods, the rates have been revised upwards in four categories with a maturity period of over one year, SBI said in a statement today.With the revision, the interest rate on 1-2 years term deposits would go up to 8.75 per cent from 8.50 per cent.Similarly, term deposits for 2-3 years, 3-5 years and 5-10 years would earn a higher interest rate of 8.75 per cent. However, the bank has left...

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HDFC Bank to raise $500 m from overseas markets

Country’s second largest private lender HDFC Bank today hit the foreign debt markets with a $500-million bond issue, according to merchant banking sources.“HDFC Bank is raising $500 million through a five-year US dollar denominated bonds (senior unsecured notes). The final pricing guidance has been fixed at 235 basis points (2.35 per cent) above the US treasury,” a merchant banking source, who did not wish to be identified, told PTI here.The bank had on Monday launched a road-show in Hong Kong, Singapore and London for this, the source added.Meanwhile,...

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SBI sanctions Rs 2,650 cr loan to RINL

SBI Chairman Pratip Chaudhuri said here at the Visakhapatnam Steel Plant that he was very much impressed with the Rashtriya Ispat Nigam Ltd for its outstanding performance and termed the company “truly a centre of excellence.”He made the observation on Tuesday on his maiden visit to the steel plant for completing formalities with regard to a loan of Rs 2,650 crores to the plant for its expansion project. He presented a cheque for Rs 500 crore to RINL CMD A.P Choudhary as part disbursement of the loan on the occasion. He said that, “RINL and...

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Andhra Bank cuts base rate by 25 bps

Andhra Bank has made a downward revision of the base rate by 25 basis points.Effective March 1, the rate will be 10.25 per cent, down from 10.5 per cent, according to a press release.The bank has also made a downward revision of BMPLR by 25 bps. The new rate will be 14.50 per cent, down from 14.75 per cent.Somasekhar.m@thehindu.co.in Source: thehindubusinesslin...

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SBI to raise Rs 3,000 cr via pref. issue

The Executive Committee of Central Board (ECCB) of State Bank of India has decided to make preferential allotment of shares to the Government of India (GoI) to raise up to Rs 3,004 crore.The ECCB had on February 23 (Saturday) decided to issue the shares at Rs 2,312.78 per share (including a premium of Rs 2,302.78 per share).In a filing with the stock exchanges, SBI said that the committee has decided to raise the issued capital of the bank through preferential share allotment to support national and international banking operations undertaken...

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IOB organises free medical camp at Poovachal

Indian Overseas Bank (IOB), lead bank for Thiruvananthapuram, teamed up with Thriveni Ayurveda Hospital and Poovachal village panchayat to jointly conduct a free medical camp at Poovachal on Sunday.On the occasion, C. Haridas, Chief Regional Manager, IOB, announced that a new branch of the bank would be opened at Poovachal shortly.Suni Soman, President of the village panchayat, inaugurated the camp.Among those who spoke were Sudarsanan of Thriveni Hospital and E. Ramachandran, chief manager, IOB.A large number of people from different areas...

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BoB keen to trim wholesale advances to 40%

Bank of Baroda is keen to bring down the share of wholesale advances to 40 per cent from the present 45 per cent, to achieve a better balance, the bank’s newly-appointed Chairman and Managing Director S S Mundhra has said.“It’s better not to have all your eggs in one basket. It is easier if the risk is spread across,” Mundhra told PTI in an interaction here over the weekend.The bank has been having low margins among the large state-run peers partly because of its large wholesale book apart from its considerable international operations, which...

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Corp Bank holds 'Signature Golf Tournament'

Corporation Bank, in association with Pilikula Golf Club, organised 'Signature Golf Tournament' in Mangalore on Saturday.Speaking on the occasion, Ajai Kumar, Chairman and Managing Director of Corporation Bank, said golf is a game of precision, passion and concentration.“As bankers, we relate ourselves closely to the game. Corporation Bank is the first public sector bank to organise and associate with a golf tournament,” he said.The bank wants to take it across the country. “We will make it a regular event and will also associate with golf...

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Canara Bank plans to open small branches in Tiruchi

Canara Bank has proposed to start many small branches in the Tiruchi circle to take financial services to the doorstep of rural people and a total of 88,000 kisan credit cards are to be issued to farmers before the end of this fiscal, according to P.G. Srinivasan, Assistant General Manager of the bank, Trichy Circle.Speaking on the occasion of the adoption of Uralipatti village by the bank in Natham block in Didigul district on Tuesday, he said the bank has planned to open 80,000 no-frill account this fiscal as part of the financial inclusion...

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UCO Bank launches current account scheme

Kolkata-based UCO Bank on Saturday launched UCO Care Current Account, across all its branches . The current account scheme will cater to the needs of business class clients and include a host of other freebies, according to a press release issued by the bank .  Some of the benefits include reduced minimum balance, and value-added facilities such as national electronic fund transfer (NEFT) remittance facilities at reduced rates. It also provides overdraft facility to meet emergency needs . According to Arun Kaul, CMD, UCO Bank, the scheme...

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