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Friday, May 31, 2013

Syndicate Bank plans gold, e-term deposits

Syndicate Bank is planning to introduce electronic term deposit (e-term deposit) and also gold deposit at a later date, after the RBI has finalised the guidelines, according to M. Anjaneya Prasad, Executive Director.

He told reporters here on Thursday that the bank would open one more branch in the city at Naiduthota and it was planning to set up a regional office here.

He said the bank was attaching a lot of importance to Visakhapatnam region and special steps would be taken to improve business here.

He said the bank was aiming at 25 per cent growth in business during the current financial year to reach Rs 4,19,000 crore.

“We will also strive to bring down the NPAs by 20 per cent during the current year,” he added.

He said special offers were announced for housing and vehicle loans. Processing and documentation charges would be waived.

For four-wheeler loans, there would be a concession of 0.50 per cent in the interest rate and credit cards would be given at no extra cost.

He said the branch network would touch 3,000 by the end of the current month and 3,200 by the end of September, and an ATM would be provided at each branch. For the purpose, the bank is procuring 1,300 ATMs more.

Financial inclusion

He said the bank had completed implementation of financial inclusion programme well before schedule in all the 1,553 villages allotted to it, and made banking services available to the rural people. It had also taken steps for smooth rollout of the direct benefit transfer scheme.

Deputy General Manager P. Raja Reddy and AGM R. Jayaprakash also participated in the press meet.

Source: thehindubusinessline
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Central Bank of India begins profiling defaulters

Central Bank of India has kicked-off an exercise to profile its defaulting borrowers. This move is aimed at assessing whether the defaulters are amiable to repay their overdue debt or should be proceeded against under the recovery law.

In short, the public sector bank is attempting to separate the wheat from the chaff in order to recover the loans that have turned sour.

Profiling of defaulters assumes urgency as the bank’s bad loans increased by 16 per cent year-on-year to Rs 8,456 crore as at March-end 2013.

The field staff have been asked to complete the profiling exercise by June-end so that appropriate action, for either reviving the borrower’s enterprise or initiating recovery proceedings, can be taken, said a top official.

The bank wants granular information, among others, pertaining to the viability of the defaulting borrower’s business and the value of the collateral in hand.

In the current financial year, the bank is seeking to bring down its bad loans pile from Rs 8,456 crore as at March-end 2013 to about Rs 8,000 crore (after taking into account fresh slippages during the course of the year).

Genuine cases

In case a defaulting borrower is facing genuine difficulty in keeping his enterprise afloat, either due to electricity crunch or short-supply of raw materials or lack of demand for finished goods, the bank is willing to extend fresh loan to help effect a turnaround in its fortunes.

However, fresh loan will be offered by the bank only if the borrower is able to stump up margin either on his own or gets a private equity/ strategic investor to do so.

In case a defaulting borrower wants to reach an amicable settlement with the bank and close the loan account, the bank will offer a one-time settlement. Depending on the realisable value of the security pledged with it, the sacrifice/write-off to be made by the bank on the loan outstanding is arrived at. The sacrifice/write-off will be kept at the minimum.

The bank has increased the frequency for organising loan recovery camps from once a month to twice a month at the zonal and regional office levels, said the bank official.

Wilful defaulters

If a borrower has wilfully defaulted on his loan and has no intention to pay back then the bank will turn up the heat. It will proceed against the borrower simultaneously under the SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Act) and the Debt Recovery Tribunal.

Keeping up pressure on two fronts — SARFAESI Act and DRT — could possibly get the defaulter to the negotiating table.

Written-off accounts

Central Bank of India has appointed a general manager solely to effect recoveries from written-off accounts. The outstanding in written-off accounts amounts to Rs 2,400 crore.

Banks’ write-off bad debt when it is considered non-collectable and they have set aside capital to cover the loan loss. When they make recoveries in such cases, it finds a positive reflection on the bank’s bottomline.

Source: thehindubusinessline
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Thursday, May 30, 2013

Andhra Bank re-brands for pan-India image

With a view to acquire a pan-Indian image, Andhra Bank has re-branded itself with a new corporate slogan.

Founded in 1923 by noted freedom fighter Pattabhi Sitaramayya, it is now keen on shedding its image as a local bank and has adopted a new corporate slogan, ‘Andhra Bank: Where India banks’.

When contacted, the bank’s Chairman and Managing Director B. A. Prabhakar told Business Line that efforts were on to make Andhra Bank a national brand.

“Many people living outside Andhra Pradesh still do not know that it is a nationalised bank with a long history. We want to change this with new branding,” he said.

About half the 200 branches proposed to be opened in the current financial year will be located outside Andhra Pradesh, Prabhakar said.

At present, out of a total 1,867 branches, 707 are outside AP covering 25 States and three Union Territories. It also has representative offices in the United Arab Emirates and the US.

Andhra Bank had launched a new mascot and logo in 2009. The mascot was DOLLe (dolphin), with the slogan: ‘Andhra Bank, for all your needs.’.

The rationale then was that the dolphin was universally known for its intelligence, and friendly and responsive qualities.

The corporate slogan was aimed at identifying the bank with its tech-savvy character, satisfying all the needs of the customer.

In 2012-13, the bank’s net profit declined to Rs 1,289 crore from Rs 1,345 crore in the previous year. The total business stood at Rs 2.24-lakh crore.

Source: thehindubusinessline
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RBI to hire 525 assistants

The Reserve Bank of India will be recruiting 525 assistants to work in its various offices.

Graduates in any discipline with minimum 50 per cent of marks in the age group of 18-28 years are eligible to apply.

The recruitment would be conducted through an online examination and interview. The written test would be conducted in four phases in the last week of July. Interested candidates can apply between May 30-June 20, 2013.

At present, the monthly gross emoluments for assistants in RBI is Rs 21,419 excluding other perquisites, RBI said in a notification.

Source: thehindubusinessline
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IndusInd Bank launches credit card for rich customers

Private sector lender IndusInd Bank announced its tie-up with American Express to launch IndusInd Bank Iconia American Express Card for its affluent customers.

The card offers reward points and lifestyle benefits such as golf, entertainment, travel and dining.

For every Rs 100 spent by the customer, a reward of 1.5 point on weekdays and of 2 points on the weekends will be awarded to the customer on his card. These points can then be redeemed for cash credit at full value, i.e, a rupee for each reward point and for partner air miles.

The mid-sized bank entered the credit card business after acquiring Deutsche Bank’s loss making credit card business from its Indian operations in 2011 for a little more than Rs 224 crore.

Anil Ramachandran, Business Head, Credit Cards, IndusInd Bank said, “Our partnership with American Express is based on our mutual belief and commitment in bringing unparalleled value to our customers. The IndusInd Bank Iconia American Express Credit Card will provide customers with a world-class opportunity to extract the best out of life”.

Source: thehindubusinessline
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