Corp Bank allots pref shares to Govt

Corporation Bank has allotted 47,85,137 equity shares to the Government of India on a preferential basis.The bank informed the BSE that the preferential allotment committee of the board of the bank, which held a meeting on Friday, has allotted 47,85,137 equity shares of Rs 10 each at a premium of Rs 416.32 a share to the Government on a preferential basis. This allotment will help the bank raise Rs 203.99 crore.Consequent upon this, the issued and subscribed capital of the bank gets raised to 15,29,14,391 equity shares. With this preferential...

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SKS Micro raises Rs 115 cr via securitisation deals

SKS Microfinance Ltd, India’s only listed micro-lender, today said it has completed two more securitisation transactions aggregating Rs 115 crore.In a stock exchange filing, SKS without naming the rating agency said both the transactions were rated as A+(SO).“The company has completed two securitisation transactions aggregating Rs 115 crore, rated A1+(SO). With this, the company has completed 10 securitisation transactions aggregating Rs 981 crore in FY13 (YTD),” SKS said in the filing.When contacted Dilli Raj, Chief Financial Officer, SKS,...

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ING Vysya Life is now subsidiary of Exide Ind

Exide Industries Ltd said on Friday it has bought out three other partners holding 50 per cent stake in ING Vysya Life Insurance Co Ltd (IVL).It informed the stock exchanges that the purchase deals involved erstwhile partners — 26 per cent of ING Group, 16.32 per cent of the Hemendra Kothari Group and 7.68 per cent from the Enam Group. The total consideration was around Rs 550 crore.ING Vysya Life Insurance Co has now become a wholly-owned subsidiary of Exide. The Kolkata-headquartered battery-manufacturing company had first “invested” in the...

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SEBI invites applications for mutual fund distribution SRO

Starting the process for setting up a Self Regulatory Organisation (SRO) for the mutual funds (MF) distributors, capital markets regulator SEBI today invited applications from groups of intermediaries interested in forming such an oversight body.The move follows notification of norms by the Securities and Exchange Board of India (SEBI) in January to set up an SRO for regulation of distributors of mutual fund and portfolio management products.In a public notice issued today, the SEBI said it is inviting applications from “any group or association...

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IOB hopes to meet 15% bulk deposit norm

Indian Overseas Bank (IOB) today said it is hopeful of reducing its bulk deposit level out of the total deposit to the mandated level of 15 per cent by end of the current fiscal.This would provide space for increase in the Chennai based lender’s net interest margin (NIM) in the fourth quarter of FY13, a top official said.“We are hopeful of reducing the bulk deposit to 15 per cent by end of the fiscal from more than 30 per cent last fiscal,” IOB Executive Director, A K Bansal said here.He said the declining bulk deposit rates will also supplement...

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SKS plans to resume lending operations in Andhra Pradesh soon

Country’s only listed micro lender SKS Microfinance today said it plans to resume lending operations in Andhra Pradesh soon, two years after the state government came out with a stringent laws to regulate the industry.SKS Chief Financial Officer, Dill Raj said the recent Supreme Court’s interim order was of great relief to them and paves way to resume operations in the state.“That is primary relief we got (from the Supreme Court order). We plan to carry out our business in Andhra Pradesh strictly in compliance with the Supreme Court order....

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United Bank ties up with Tata Power Solar

United Bank of India has entered into a memorandum of understanding (MoU) with Tata Power Solar to provide credit to the non-renewable energy sector.Under the MoU, Tata Power will leverage the bank’s branch network in the eastern region to make easy finance available to the purchaser of the off-grid solar home lighting or water heating system, said a bank statement.The bank, in turn, will utilise the Tata Power outlets to increase its reach in the country.The arrangement will facilitate the bank to further increase its exposure to the micro...

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Exim Bank extends $ 41.6 mn credit to Comoros

The Export Import (Exim) Bank  said that it has extended a line of credit worth USD 41.60 million to the island nation of Comoros, located off the African coast, to install an 18-mw power project in the capital city of Moroni.Under the agreement, the Exim Bank will reimburse 100 per cent of contract value to Indian exporters upfront upon shipment of goods or after providing the services, the bank said in a statement.This is the first LoC extended by Exim Bank to Comoros and takes the total to 169 LoCs, covering 76 countries with credit...

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Deutsche Bank restates 2012 profit on writedowns, legal costs

Deutsche Bank, Germany’s biggest bank, said on Wednesday that writedowns and legal costs hit its 2012 earnings harder than expected and it has now been forced to restate last year’s profits.“New developments related to specific existing legal matters have occurred after the disclosure of (our) preliminary, unaudited 2012 results on January 31,” Deutsche Bank said in a statement.“Based on these developments ... the bank has increased its provisions for litigation by €600 million ($774 million) to €2.4 billion.“This reduces the previously announced...

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BoI foreign currency bonds issue oversubcribed

Bank of India’s $500-million Foreign Currency Bonds issue, which hit the market on March 14, has been oversubscribed 5.4 times.It is significant for being the first bond transaction by BoI offered to US institutions under Rule 144A and is also the first Indian PSU bank offering in 2013.Priced at 280 bps above US Treasury, the bond has the lowest coupon for any Indian 144A offering. Subscription for the bonds was worldwide, with 46 per cent coming from Asia, 17 per cent from Europe and the balance 37 per cent from the US, the bank said in a...

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SIDBI signs tripartite MoU with Egyptian body, World Bank

Small Industries Development Bank of India (SIDBI) has signed a tripartite Memorandum of Understanding (MOU) with Social Fund for Development (SFD) Egypt and the World Bank.The MOU was signed in the presence of visiting Egyptian President Mohamed Morsi and Commerce and Industry Minister Anand Sharma here today.Under the MOU, SIDBI and its associates will provide consultancy for three year period to SFD and establish credit guarantee system for micro, small and medium enterprises in Egypt, Sushil Muhnot, Chairman & Managing Director, SIDBI...

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Little scope to reduce lending rates

The 25 basis point reduction in the repo rate by the RBI might not be immediately passed on to customers, said S. Chandrasekharan, Executive Director, UCO Bank. “Most banks had reduced their base rates post the 25 basis point reduction in policy rates announced by Reserve Bank of India in January this year. So there is little scope for banks to reduce lending rates further, at least till March 31,”Chandrasekharan said. UCO Bank had reduced its base rate by 30 basis points to 10.2 per cent post the January announcement. Banks have also increased...

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IDBI Bank raises $500 m in overseas bond sale

IDBI Bank has raised $500 million through sale of long-term bonds in international markets at a coupon of 3.75 per cent (300 basis points over the US Treasury Bill).The bond offering, which has been made by the bank’s Dubai International Financial Centre (DIFC) branch, is significant, as it comes in a highly uncertain market marked by risks of bankruptcy of Cyprus and domestic political developments, with the DMK pulling out of the United Progressive Alliance at the Centre.The success of the current issue, which is part of IDBI Bank’s $3.5...

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IOB allots 12.71-cr equity shares to Govt

Indian Overseas Bank has obtained the approval of its shareholders to create and allot 12.71 crore equity shares to the Government.According to a press release from the bank, the approval is to create up to 12.71 crore equity shares of Rs 10 each for cash at an issue price of Rs 78.68 a share, including a premium of Rs 68.68 a share, for a total of Rs 1,000 crore to the Government of India.The bank has already received the amount from the Government and, accordingly, allotted the equity shares to it on preferential basis. Source: thehindub...

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EMI relief for home loan takers in the offing

Home Loan borrowers hoping for lower interest rates may have to wait a little longer. Banks are not likely to pass on the benefits of RBI's repo rate cut to borrowers this month."There is no reason to believe that easing will happen at a rapid pace but it may happen at a measured pace. We expect easing of deposit rates as we enter new fiscal year, and as this happens, the transmission will take place," said SS Mundra, chairman and managing director, Bank of Baroda.However, borrowers need not despair. While interest rates are unlikely to be...

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UCO Bank lodges complaint with CBI on FD scam

UCO Bank has lodged complaints of two alleged frauds — one related to the West Bengal Infrastructure Development Finance Corporation (involving Rs 120 crore) and the other linked to West Bengal State Cooperative Bank (involving Rs 20 crore) — with the Central Bureau of Investigation.The Bank’s officer on special duty, S.C. Sharma told Business Line that the lender had complained of alleged “frauds” related to its Circus Avenue branch and the Hastings branch in the city. “The WBIDFC-related complaint was filed on March 14 with the CBI fraud...

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IDBI Bank raising over $500 m in overseas bond sale

State-run IDBI Bank today hit the overseas debt market with a benchmark-sized five-year bond issue to raise over $500 million, according to merchant banking sources.“IDBI Bank is raising over $500 million through a five-year Reg S (Regulation S bonds) note issue. The five-year bond issue, maturing in January 2019, has an initial pricing guidance of 315 basis points over the US Treasury bills,” a merchant banker involved with the sale of the senior unsecured notes programme told PTI.The current issue is part of the bank’s $3.5 billion medium-term...

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RBI cuts repo rate by 25 bps, leaves CRR unchanged

The Reserve Bank of India has cut repo rate by 25 basis points from 7.75 per cent to 7.5 per cent with immediate effect. Consequently, the reverse repo rate stands adjusted to 6.5 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 8.5 per cent with immediate effect.The RBI has left the cash reserve ratio unchanged at 4 per cent.The central bank said high current account deficit and inflationary expectations limit possibility of further easing of rates.At 14.02 p.m., the 30-share BSE index Sensex was trading tanked 322.17...

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LIC Housing Fin appoints V K Sharma as MD & Chief Executive

LIC Housing Finance has elevated V K Sharma to the post of Managing Director and Chief Executive of the company with effect from March 19, 2013.The company in a filing to the BSE said: “V K Sharma who has been Director and Chief Executive of the company has been appointed as Managing Director and Chief Executive of the company in the capacity of whole time Executive Director with effect from March 19, 2013.”Also, Sushobhan Sarker who has been Managing Director of the company will continue to be a Non-Executive Director with effect from March...

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SBI chief pitches for 50 bps cut in CRR, repo rate

A softening in lending rates will be conducive for kick-starting the investment cycle in the country, according to State Bank of India Chairman Pratip Chaudhuri.Whichever country has shown rapid growth, particularly in the manufacturing sector, the interest rates were much lower.“Rates of interest need to come down further. Our base rate is at 9.70 per cent, I would like to see a base rate of something like 9.50 per cent because internationally the rates are so low,” said Chaudhuri.Base rate is the minimum lending rate below which banks cannot...

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IDBI Bank to offer new service

IDBI Bank has said that it will implement digital signature-based authentication solution for its corporate Internet banking clients.This will ensure authenticity, non-repudiation, confidentiality and integrity of the data transmitted, the bank said.The new generation public sector bank said it has partnered eMudhra Consumer Services to implement the solution.satyanarayan.iyer@thehindu.co.in Source: thehindubusinesslin...

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Clause in LIC pension policy dubbed ‘unfair trade practice’

The State Consumer Disputes Redressal Commission has held that a specific condition in an LIC’s pension policy that no proportionate annuity can be paid from the date of last payment of annuity instalment till the date of death of an annuitant amounted to unfair trade practice.The Commission made the ruling while upholding an order of the Ernakulam District Consumer Disputes Redressal Forum directing the LIC to disburse the annuity arrears to a complainant. The Commission dismissed the appeal filed by LIC.The district forum passed the order...

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Bengal Infra FD certificates fake, says UCO Bank

UCO Bank said on Saturday that the West Bengal Infrastructure Development Corporation (WBIDFC) did not have any current or term deposit account with the Circus Avenue branch of the bank in the city, which allegedly submitted rate quotation for bulk deposits to the corporation. On a complaint by the State Government unit, the Kolkata police had on Thursday arrested the branch manager of the bank.  WBIDFC had alleged that a large part of the Rs 120 crore fixed deposits were found missing on Wednesday. In a statement, the Kolkata circle...

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Mukesh Ambani to exit board of Bank of America

Reliance Industries Chairman and Managing Director Mukesh Ambani will step down as the board of director of Bank of America and instead join its global advisory council.Ambani has decided not to seek another term on the bank's board at its 2013 annual meeting of stockholders, Bank of America had said in a statement yesterday.He has served on the Bank of America board since March 2011 and became a director prior to the establishment of the global advisory council.Ambani will join 13 other internationally recognised business, academic and public...

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Karnataka Bank to open 120 tiny branches by March next year

Karnataka Bank will open 120 ultra-small branches (USBs) by March 2014. According to a press release issued here on Saturday, the bank has so far opened 18 USBs, and eight more are proposed to be opened by March 31. With this, the bank is planning to close the current financial year with 26 USBs. The release said that another 94 USBs are planned for 2013-14. With this, the total of USBs will be 120 by March 2014. P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said that the bank is taking up financial inclusion...

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Axis Bank initiates probe in money laundering allegations

Private sector lender Axis Bank said that it has asked 16 officials concerned to report to the administrative offices, pending investigation which has been initiated with regard to alleged money laundering activities.“The bank has initiated an internal enquiry. Pending outcome of the enquiry, we have asked 16 employees concerned to report to the administrative offices,” Axis Bank sources said.The country’s three largest private banks — ICICI Bank, HDFC Bank and Axis Bank — were accused of indulging in money laundering both within the country...

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Money laundering charges: HDFC Bank appoints Deloitte to conduct enquiry

Facing serious charges of money laundering, the country’s top three private banks have been galvanised into action. They have appointed audit and law firms to probe the charges, suspended staff, and directed branch heads to report to administrative offices.HDFC Bank, which is believed to have suspended 20 employees who were caught on camera by Cobrapost for allegedly offering to covert black money into white, has appointed Deloitte Touche Tohmatsu India to carry out an independent forensic enquiry into the allegations and reported statements...

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Dhanlaxmi Bank to raise Rs 51 cr via pref. issue

Dhanlaxmi Bank Ltd has proposed to mobilise Rs 51 crore by issuing 85 lakh equity shares with an issue price of Rs 60 per share with a face value of Rs 10 each.The bank plans to raise funds to augment its long-term capital.The shares will be issued would be on a preferential allotment basis, subject to the approval of RBI, SEBI and other authorities concerned, bank sources said. Source: thehindubusinesslin...

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