Put loan collaterals through periodic legal audit, RBI tells banks

To contain fraud, the Reserve Bank of India on Friday asked banks to subject the title deeds and other documents in respect of all credit exposures of Rs 5 crore and above to periodic legal audit. They should also re-verify the title deeds with relevant authorities as part of regular audit exercise till the loan stands fully repaid.Bankers say such a directive may have been prompted by rising bad loans and the necessity to ensure that collateral are sufficient to make recoveries.The central bank said banks should furnish a review note to their...

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4 killed in fire at IndusInd Bank office in Mumbai

Four IndusInd Bank employees lost their lives in a late night fire at the Andheri back-office of the bank. The fire broke out at around 11.15 p.m. on Thursday.The deceased have been identified as Atanu Laha, 35, Rakesh Shirkar, 24, Rohan Katkare, 25, and Sandeep Naik, 25. Eight others were injured.Since it was the central processing unit of the bank, there were employees working late into night.According to fire department officials, the fire took place because of a short-circuit.“A fire broke out at Induslnd back office in Andheri (East) at...

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Vijaya Bank FCNR rates

Vijaya Bank has revised interest rates on FCNR (B) deposits with effect from June 1. The revised interest rates are as follows: For one year to less than two years period – £2.88 per cent, $2.69 per cent, €2.39 per cent, AU$5.34 per cent, CAD 3.79 per cent.For two years to less than three years period - £2.68 per cent, $2.45 per cent, €2.43 per cent, AU$4.74 per cent, CAD 3.43 per cent. For three years to less than four years period - £3.78 per cent, $3.64 per cent, €3.57 per cent, AU$5.93 per cent, CAD 4.55 per cent. For four years to less...

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OBC opens new branch in Chennai

Oriental Bank of Commerce has launched a new branch in Chennai, taking the total number of its branches in the country to 2013. With this new chapter, the number of branches in the region (Tamil Nadu and Puducherry) goes up to 51. According to a press release, the bank intends to open another 10 branches in this region during the current financial year.  It has over 1,500 ATMs across cities. Total business of the bank in 2012-13 crossed Rs 3-lakh crore, and the operating profit of the bank for the year was at Rs 3,691 crore. Net profit...

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Associate banks merger can start by September: SBI chief

State Bank of India (SBI) today said the proposed merger of its five associate banks with itself could start by September after a high-powered committee submits its report on the same.The high-powered committee headed by SBI Managing Director, S Vishwanathan would furnish its report by July-August, and later based on the report the merger process could start by September, SBI Chairman Pratip Choudhuri said here.State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore...

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Canara Bank bags BMA award

Canara Bank has bagged the Best Bank of the Year Award instituted by The Bangalore Management Association (BMA).V S Krishna Kumar, Executive Director of Canara Bank received the award at a simple function held at Bangalore on June 6.Kumar received the award from K J George, Karnataka Home Minister, and Justice R V Raveendran, Former Judge, Supreme Court of India. Source: thehindubusinesslin...

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New RBI norms on restructured loans positive for most banks: Moody’s

The Reserve Bank of India’s new guidelines on higher provisioning for restructured loans is credit positive for India’s banks, global credit rating agency Moody’s Investors Service has said.The RBI had in end May issued new guidelines on restructuring advances by banks and financial institutions, which require banks to raise their provisions on restructured loans to 5 per cent from 2.75 per cent currently.The higher provisioning is credit positive for India’s banks because it increases their loss-absorption buffers and incentivises them to...

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Some new bank licences to be issued before March 2014

Finance Minister P Chidambaram today expressed hope that some new bank licences would be issued before March next year.“RBI has released guidelines for licensing of new banks and I hope that some banks will be licensed before the end of the financial year,” he said at the AGM of Indian Banks’ Association here.The entry of new banks, rapid expansion in number of branches and a more spatial distribution of location of banks will all lead to greater financial inclusion, he said.“We need more banks, we need more branches. We need them in the small...

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SBI chief says new NPA norms will have minimal impact

State Bank of India said it will have less than 1 per cent impact on its pre-tax balance sheet or around Rs 200 crore annually due to the revised norms on NPAs and restructuring by the RBI.“Total impact will be around Rs 200 crore a year which will be less than 1 per cent on a PBT (profit before tax) basis,” Chairman Pratip Chaudhuri told reporters on the sidelines of an international banking summit organised by the industry lobby IMC here.On May 19, the central bank revised the norms on restructuring and NPA accounts, increasing the provisioning...

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Chidambaram to address IBA on Thursday

Finance Minister P. Chidambaram will address a general body of Indian Banks’ Association (IBA) at Mumbai on Thursday.This address will come at a time when non-performing assets (NPAs) in the banking system are seeing a meteoric rise, pushing policymakers into a fix.A part of the reason for the NPA problem is the marked slowdown in the economy. The other reason, which is not often highlighted, is the lack of accountability of higher ups, to ensure recoveries and rein in NPAs, say critics.Meanwhile, at the call of All India Bank Employees Association...

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In-principle nod for new bank licences will be valid longer

The RBI made a few concessions to aspirants intending to float banks. One, it extended the validity period of the in-principle approval to promoter/promoter groups for setting up a bank from 12 to 18 months. Two, it decided to grant the new entities more time to meet priority sector lending norms.In its clarifications to queries on the Guidelines for New Bank Licences, the Reserve Bank of India said the extension is to ensure that the bank licence applicants had enough time to put together a wholly-owned Non-Operative Financial Holding Company...

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BoB’s new home loan offer

Bank of Baroda (BoB) on Tuesday said new and existing customers can get home loans at the Base Rate of 10.25 per cent across all tenures and for any amount. The single rate of interest for all home loan customers is effective from June 1.There will be no conversion charge for existing customers to get the benefit of the reduced rate of interest, the public sector bank said in a statement. As at March-end 2013, BoB’s home loans portfolio saw year-on-year growth of 13.5 per cent to Rs 16,045 crore. Home loans accounted for about 7 per cent of...

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IRDA may tighten norms for banks selling insurance

Banks may find the going tough in distributing insurance polices. The insurance regulator may require them to renew at least half the life insurance policies they sell, failing which they risk losing the licence to distribute insurance products.The renewal requirement is one of the recommendations of a committee set up by the Insurance Regulatory and Development Authority (IRDA) in order to curb mis-selling.In 2011, IRDA had ushered in a minimum policy renewal criteria for individual insurance agents. The regulator directed insurance companies...

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B.K. Batra appointed interim CMD of IDBI Bank

B.K. Batra has been given interim charge as the Chairman & Managing Director of IDBI Bank.Batra, who is currently the Deputy Managing Director, has been given interim charge of the bank following R.M. Malla’s superannuation as CMD on May 31.In a notice to the BSE, IDBI Bank said Batra will exercise the powers of CMD with the approval of the board of directors / Managing Committee of the Bank, as the case may be, till such time that a regular incumbent is appointed by the Government. Source: thehindubusinesslin...

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Corp Bank donates school bus

Corporation Bank has donated a school bus to Navachethan Educational Trust in Mangalore.A press release said here that Ajai Kumar, Chairman and Managing Director of the bank, presented the bus to V. Ravichandran, Trustee of Navachethan Educational Trust, in Mangalore recently.Apart from this, the bank met the cost of construction of an auditorium-cum-hall for extracurricular activities at the school.The release said the trust offers free education to students from economically backward families. Source: thehindubusinesslin...

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SBI cuts interest rate on bulk FD by 0.25% on select tenor

State Bank of India (SBI) today announced reduction in interest rate on fixed deposits of maturity up to one year by 0.25 per cent to 7.25 per cent.It has been decided to revise downwards by 25 basis points the interest rate on bulk deposits above Rs 1 crore for the tenors 7 days to less than 1 year, SBI said in a statement.“Accordingly, the interest rate for bulk deposits for the above tenors will be 7.25 per cent per annum with effect from June 7, 2013,” it said.The announcement comes a month after RBI reduced key policy rate by 0.25 per...

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Canara Bank to charge Rs 112 annual fee on its debit cards

State-owned Canara Bank will levy about Rs 112 annual fee on its ATM debit cards from July 1.The bank, which currently issues the cards free of cost, said in a circular that a need has been felt to offer the services at competitive rates in tune with "market trends".“It has been decided to charge a nominal fee of Rs 100 per card plus applicable service tax on completion of one year from the date of issue/renewal of the card and thereafter to be charged yearly,” it said.The current rate of service tax is 12 per cent.The annual fee will be levied...

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Moody’s puts debt ratings of SBI, ICICI, 9 others under watch

Global credit rating agency Moody’s today said it has placed some debt ratings of 11 banks, including SBI, ICICI, HDFC Bank and Axis Bank, under review because of the updating of its methodology.The subordinated and junior subordinated debt ratings of these banks have been placed under review in the wake of the methodology update, said Moody’s Investors Services.Other banks are Bank of Baroda, Bank of India, Canara Bank, IDBI Bank, Indian Overseas Bank, Syndicate Bank and Union Bank of India.“The review takes place in the context of a methodology...

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S K Roy takes charge as LIC managing director

S K Roy assumed charge of Managing Director of Life Insurance Corporation of India.Roy, whose name is in the reckoning for the post of LIC Chairman, joined the largest insurance company in the country in 1981.The term of current Chairman D K Mehrotra ended on May 31 2013.Besides, Roy other managing directors are Thomas Mathew and S Sarker.Prior to elevation, he was head of the International Operations.He was also zonal manager of North Central Zone and Eastern Zone of the insurance firm. Source: thehindubusinesslin...

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Corporation Bank to offer housing, vehicle loans at base rate

Corporation Bank will offer housing and vehicle loans at 10.25 per cent for certain slabs from June 1. In fact, 10.25 per cent is Corporation Bank’s base lending rate.Addressing presspersons here on Friday, Chairman and Managing Director Ajai Kumar said the “monsoon bumper offer” would be in force from June 1 to September 30.Under this offer, housing loans up to Rs 50 lakh would be offered at a floating rate of 10.25 per cent. Loans above Rs 50 lakh would be offered at 10.50 per cent. There would not be any processing charges or pre-payment...

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