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 a divorce or a death.

"I think it will encourage women and make them more confident. There are a lot of women planning to start their own business. A bank for women will help them become financially independent," she said, adding that the objective of increasing women's participation cannot be done by existing banks.

"To get so many public sector banks to change their culture and to get them to think of women's needs is a long-term goal. The medium term goal to start a bank for women would serve as a model that will help other banks realise women as a segment and help to change culture," she said.

The new bank will have a paid-up capital of Rs 1,000 crore and should get its licence by October. The government is yet to come out with the fine print on the extent to which the new entity will lend to women and the extent to which jobs will be reserved for women. In the past a private sector bank discontinued a women's only branch ostensibly on the grounds of security.

Rana Kapoor, MD & CEO of Yes Bank suggests that the Women's Bank could tie in a gold deposit account, which would help convert physical savings into financial savings. "It is a tremendous and progressive step forward for emancipation of Indian women who constitute a significant part of household savings. A specialized women's bank will add to their social security and personal income and even bring in a lot of personal savings lying idle into the banking system," said Kapoor.

The All India Bank Employee Association has supported the proposal for a women's bank.


Source: Economictimes

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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 has launched R*Shares CNX 100 Fund, an ETF that is compliant with RGESS. "RGESS offers investors an opportunity to take exposure to large cap stocks for long term. This should offer them twin benefits of capital appreciation and tax savings," says Abhinav Angirish, managing director, investonline.in, an online mutual fund distribution entity. It can be a good entry point for first time investors in volatile markets.

First time investors with income below Rs 10 lakh annually, can avail an additional tax benefit under section 80 CCG for maximum investment up to Rs 50,000.

This benefit is over and above the Rs 1 Lakh exemption limit available as regular benefit under Sector 80C. For the next three years the income criteria has been enhanced to Rs 12 lakh per year.


Source: Economictimes

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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: thehindubusinessline

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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 has been hiked to 8.75 per cent (8.30 per cent).

shobha.roy@thehindu.co.in


Source: thehindubusinessline

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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 have been revised to 3.51 per cent for deposits of three years and above but less than four years from the existing 3.56 per cent.

For deposits of four years and above but less than five years, the interest rates have been revised to 3.69 per cent from 3.77 per cent, it said.

Interest rates have been fixed to four per cent for deposits of up to five years against the existing 3.92 per cent, the release added.


Source: thehindubusinessline

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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 bank has raised about Rs 1,150 crore capital in two rounds in the last two years. “We will be raising more as and when we feel the need. As of now we are capitally secured,” he said. In the last two years the bank took on board about 1,000 personnel and it intends to continue hiring about 500 people every year, as it expands its operations.

The bank is currently focussing on small and marginal farmers across rural India through partnership with local organisations such as NGOs. Focus is also on small business houses and emerging entrepreneurs, who account for 50 per cent of its business.

“We expect to touch a business of Rs 13,000 crore by this fiscal end, which includes both deposits and advances. We have set a growth target of 35-45 per cent,” Ahuja said.

The bank recently received approval to increase its foreign holding share from the current 43 per cent to 55 per cent. Last year, it partnered with Infosys to upgrade its core banking system to the latest version of Finacle and tied up with HDFC for home loan business.

On its exposure to cash-strapped Deccan Chronicle Holdings, Ahuja said: “the exposure is small and we have recovered a part of it.”

amitmitra@thehindu.co.in


Source: thehindubusinessline

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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: thehindubusinessline

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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 from March 1-15.

Kumar said that the bank has come out with a special current account for exporters and importers -- ‘Corp Global Current Account’. This facility is designed for the forex clients who do not enjoy any credit limits. If a customer has quarterly average balance (QAB) of Rs 2.5 lakh under this scheme, the bank will not charge for forex transactions up to $ 50,000.

The bank also launched two new current account products ‘Corp Privilege’ and ‘Corp Club’. He said that corporate customers are targeted with these products.

vinayak.aj@thehindu.co.in


Source: thehindubusinessline

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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: thehindubusinessline

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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: thehindubusinessline

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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 lakh

Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income

Excise duty on cigarettes to be increased 18 percent

No change in service tax of 12 percent

Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol

Education cess to continue at 3 percent

11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)

Rs.1,000 crore allocated for establishing Nirbhaya Fund

Preliminary work begun on Bangalore-Mumbai Industrial corridor

Seven new cities identified along Delhi-Mumbai Industrial Corridor

Average growth during UPA-1 was 8 percent; high growth not a novelty

Other highlights:

No service tax on vocational courses run by institutes affiliated to state governments

Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol

No service tax on agricultural testing procedures

Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST

Import duty on high-end vehicles raised from 75 percent to 100 percent

Concessions for encouraging MRO (maintenance repair overhaul) sector

Excise duty on cigarettes to be increased 18 percent

No change in customs duty on non-agricultural products

No change in service tax of 12 percent

Modified law to prevent tax avoidance to come into effect April 1, 2016

100 percent tax deduction for contributions to National Children's Fund

Education cess to continue at 3 percent

11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)

Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh

Tax on mutual fund redemptions reduced from .25 percent to .001 percent

No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh

Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income

Tax Administrative Reforms Commission to be set up

Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure

Rs.1,000 crore allocated for establishing Nirbhaya Fund

Defence allocated Rs.2 lakh 3,672 crore

Cities to be encouraged to promote waste to energy projects

Low interest funds to be provided for promoting clean energy

Rs.800 crore provided to promoting wind energy

Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity

Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14

State governments urged to sign restructuring plans with electricity discoms

Tax-free infrastructure bonds of Rs.50,000 crore to be issued

Textile ministry allocated Rs.50 crore for establishing apparel parks

Handloom sector allocated Rs.96 crore to benefit 150,000 weavers

Infrastructure debt funds to be encouraged

Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14

Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects

Rajiv Gandhi Equity Scheme to be liberalised

Seven new cities identified along Delhi-Mumbai Industrial Corridor

Preliminary work begun on Bangalore-Mumbai Industrial corridor

Foodgrain production during 2013-13 estimated at 250 million tonnes

Rs.500 crore allocated for promoting crop diversification

Rs.200 crore allocated for promoting nutrient-rich crops

Rs.50 crore allocated for farmer-producer organisations

National Livestock Mission to be launched with allocation of Rs.307 crore

Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation

Human resource development ministry to get Rs.65,867 crore

Rs.13,250 crore allocated for midday meals scheme

Rs.17,700 crore allocated for Integrated Child Development Scheme

Drinking water and sanitation ministry allocated Rs.15,260 crore

Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme

Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.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 oil and gold imports

Will need $75 billion to finance current account deficit

Need to encourage FDI in consonance with economic priorities

WPI inflation down to 7 percent; food inflation worrying.



No service tax on vocational courses run by institutes affiliated to state governments

Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol

No service tax on agricultural testing procedures

Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST
Import duty on high-end vehicles raised from 75 percent to 100 percent


No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh

Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income

Excise duty on cigarettes to be increased 18 percent

No change in service tax of 12 percent

Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol

Education cess to continue at 3 percent

11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)

Rs.1,000 crore allocated for establishing Nirbhaya Fund

Preliminary work begun on Bangalore-Mumbai Industrial corridor

Seven new cities identified along Delhi-Mumbai Industrial Corridor

Average growth during UPA-1 was 8 percent; high growth not a novelty

Other highlights:
No service tax on vocational courses run by institutes affiliated to state governments

Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol

No service tax on agricultural testing procedures

Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST

Import duty on high-end vehicles raised from 75 percent to 100 percent

Concessions for encouraging MRO (maintenance repair overhaul) sector

Excise duty on cigarettes to be increased 18 percent

No change in customs duty on non-agricultural products

No change in service tax of 12 percent

Modified law to prevent tax avoidance to come into effect April 1, 2016

100 percent tax deduction for contributions to National Children's Fund

Education cess to continue at 3 percent

11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)

Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh

Tax on mutual fund redemptions reduced from .25 percent to .001 percent

No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh

Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income

Tax Administrative Reforms Commission to be set up

Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure

Rs.1,000 crore allocated for establishing Nirbhaya Fund

Defence allocated Rs.2 lakh 3,672 crore

Cities to be encouraged to promote waste to energy projects

Low interest funds to be provided for promoting clean energy

Rs.800 crore provided to promoting wind energy

Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity

Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14

State governments urged to sign restructuring plans with electricity discoms

Tax-free infrastructure bonds of Rs.50,000 crore to be issued

Textile ministry allocated Rs.50 crore for establishing apparel parks

Handloom sector allocated Rs.96 crore to benefit 150,000 weavers

Infrastructure debt funds to be encouraged

Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14

Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects

Rajiv Gandhi Equity Scheme to be liberalised

Seven new cities identified along Delhi-Mumbai Industrial Corridor

Preliminary work begun on Bangalore-Mumbai Industrial corridor

Foodgrain production during 2013-13 estimated at 250 million tonnes

Rs.500 crore allocated for promoting crop diversification

Rs.200 crore allocated for promoting nutrient-rich crops

Rs.50 crore allocated for farmer-producer organisations

National Livestock Mission to be launched with allocation of Rs.307 crore

Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation

Human resource development ministry to get Rs.65,867 crore

Rs.13,250 crore allocated for midday meals scheme

Rs.17,700 crore allocated for Integrated Child Development Scheme

Drinking water and sanitation ministry allocated Rs.15,260 crore

Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme

Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.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 oil and gold imports

Will need $75 billion to finance current account deficit

Need to encourage FDI in consonance with economic priorities

WPI inflation down to 7 percent; food inflation worrying.


Source: Deccanherald

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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 oil and gold imports
• Will need $75 billion to finance current account deficit
• Need to encourage FDI in consonance with economic priorities
• WPI inflation down to 7 percent; food inflation worrying.

Source: msn

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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 and the need for more capital, has been axing jobs and exiting business. Morgan Stanley India surrendered its bank licence and had laid off 13 employees from its securities business, which includes debt market and investment banking.

Morgan employs more than 400 people in various businesses.


Source: EconomicTimes

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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 the interest rate unchanged for deposits less than one year.

Earlier this month, the bank had cut the lending rate by 0.05 per cent, soon after the Reserve Bank cut its key policy rates.

After this marginal reduction, SBI’s base rate, or the minimum rate of lending, came down to 9.7 per cent from 9.75 per cent effective February 4.

In its third quarter policy review on January 29, the RBI had lowered the key short-term lending rate by 0.25 per cent and also injected Rs 18,000-crore liquidity through a similar reduction of Cash Reserve Ratio.

The repo rate, at which the RBI lends to banks, was eased after a gap of nine months as the central bank fought the stubbornly high inflation through tight money policy, leading to high interest rate regime.


Source: thehindubusinessline

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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, global rating agency Standard & Poor’s said it has given a BBB— rating to the HDFC Bank senior unsecured notes.

It can be noted that 2013 saw many large corporates like Reliance Industries, ICICI Bank, Exim Bank, PowerGrid, Tata Communications, raising foreign debt.

While on January 7 this year, Exim Bank had raised $750 million in a European bond sale at the cheaper ever rate of 4 per cent for a 10-year money, which got an over-subscription of 8.5 times, within a week, the state-run distribution utility PowerGrid had raised $500 million at 3.87 per cent for a 10-year US dollar issue which received an over-subscription of 19 times.

In the same week, the largest private lender ICICI Bank mopped $225 million from a seven-year Singapore bond sale programme on January 10.

The last week of January saw Reliance Industries hitting the market with $800 million perpetual bond issue, the first by a domestic company.

The last week of the past month also saw Tata Communications becoming the first domestic un-rated corporate to tap overseas financial markets by selling bonds worth 250 million Singaporean dollars at a coupon of 4.25 per cent, which got an over-subscription of 14 times the offer.

This makes the overall fund raising by leading domestic corporates $2.525 billion this year so far.

Last Monday, the largest telco Bharti Airtel had hit the overseas market with a road-show to mop up $1 billion.

Interestingly more and more domestic companies are raising funds from Asia as investors in the region have high regard for Indian debt, say merchant banking sources. Last year, domestic corporates had raised $ 8.15 billion from Asian markets, while the rest of Asia mopped up a record debt of over $208 billion through 353 deals.

Also more domestic borrowers are expected to access overseas markets for their funding needs as the rupee funds are still a costly affair.


Source: thehindubusinessline

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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 SBI are experiencing very cordial and favourable business environment for many years and added that both organisations are committed to serving the nation.”

He appreciated the efforts of RINL in expanding the capacity and promised all support from SBI for its financial management. He advised RINL to go in for long-term borrowings to fund its expansion project to strengthen its fiscal position in the competitive economic scenario. “Steel is a cyclical and capital-intensive business and therefore utmost care should be given to financial management,” he said.

While welcoming the dignitary, A.P Choudhary said that RINL, being the only shore-based plant, had great potential to go up to 20 mtpa in a single location, heading towards the Maharatna status soon. “RINL is doing extremely well despite huge raw material cost of around 70 per cent when compared with other steel plants. Even though it lacks captive mines, RINL is earning profits for 11 years,” he said and added that RINL would be investing around Rs 5,000 crore to increase the capacity in the next three to five years. He sought cooperation from SBI.

P. Madhusudan, Director (Finance), in his welcome address said that the company was operating its freight payment transaction of Rs 1200 crore annually, customs duty transaction, and others through SBI only. He thanked the SBI management for the loan.

sarma.rs@thehindu.co.in


Source: thehindubusinessline

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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: thehindubusinessline

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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 through its subsidiaries and associates.

The bank said the price was fixed based on February 15, 2013 as the “relevant date’’. The price selected was a fine balance between the closing price of the stock on Friday and the 52-week high it had touched barely a month back.

SBI stock had closed at Rs 2,196.50 on the BSE on Friday. But the stock had shed about 13 per cent of the value after touching a 52-week high of Rs 2,550 on January 10 on the BSE.


Source: thehindubusinessline

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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 of Poovachal participated in the medical camp. Free medicines were distributed.


Source: thehindubusinessline

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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 constitute a little more than 30 per cent of its income and profit.

Mundhra said the wholesale category constitutes 45 per cent of the loan book now, which he would like to get down to 40 per cent. He, however, did not offer a timeline.

Such a move will also help the bank firm up Net Interest Margin, which has seen a sequential dip in the last two quarters. It will also help the bank forge larger number of individual relationships that will help in long-term, he said.

The state-run bank had reported higher level of bad loans from advances to large units in the third quarter, which also impacted its bottomline.

In the post-results commentary, Mundhra had blamed the “composition of the book” for the considerable fall in profit.

“It will be one of my endeavours to broad base the asset book and have a better balance in the portfolio,” said Mundhra, who returned to the bank, after a short stint at Union Bank of India.

He also said a focus will be given to retail, SME, mid-corporate and rural advances as it trims the wholesale book.

Mundhra, however, clarified that this does not mean that the bank will stay away from advances to large corporates. “It is just that the growth in retail and SME will be higher than the one in large corporates, going forward.”

The focus on non-corporate lending is partly driven by the lower spread from this book, which in turn affects its margins, as corporates make hard bargains with lenders.

Indian banks have one of the highest NIM, a key gauge of profitability, while in the West it is the lowest, hovering at 1-1.5 per cent.

Even then, BoB kept its international NIM at 2.6-2.7 per cent, and the overall margin at 3.08 per cent in Q3.


Source: thehindubusinessline

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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 coaching camps on a regular basis for children who have the aptitude and passion for the game,” Kumar said.

Amar Lal Daultani and B.K. Srivastav, Executive Directors of the bank, inaugurated the tournament.

Manoj Shetty, Captain of Pilikula Golf Club, said that this is the first maiden golf tournament organised in Mangalore in association with Corporation Bank. A total of 34 players participated in the tournament.

vinayak.aj@thehindu.co.in


Source: thehindubusinessline

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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 scheme.


Source: thehindubusinessline

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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 will help popularise the current account business of the bank, the release said.


Source: thehindubusinessline

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