Loans for home buyers, builders to get cheap

In order to give a fillip to the housing sector at a time when the economy is facing a slowdown, the Reserve Bank of India on Friday announced two measures that will increase flow of bank credit to builders/developers and individuals buyers.Further, loans to the these entities could become a tad cheaper and the prices of housing units could come down.According to the RBI, builders/developers of residential housing projects will now be classified under the commercial real estate-residential housing (CRE-RH) category, attracting lower risk weight...

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J&K Bank announces Rs 50 dividend

Jammu & Kashmir Bank today announced a dividend of Rs 50 per share or 500 per cent to its shareholders.The dividend of 500 per cent on a share of face value Rs 10 was approved at the annual general meeting of shareholders which was held here, a spokesman of the bank said.Shares of J&K Bank had closed at Rs 1,178.60 on BSE yesterday.Bank’s Chairman and CEO Mushtaq Ahmad expressed satisfaction on achieving targets for 2012—13 fiscal.“We have not only achieved, but even surpassed our Rs 1 lakh crore business target and Rs 1,000 crore profit...

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BoB opens agri loan factory in Gujarat

Bank of Baroda Chairman and Managing Director S.S. Mundra on Friday inaugurated the bank’s national pilot agri loan factory at Himatnagar in GujaratHe said that Gujarat had been selected for the project as the farmers of the state were dedicated and hard-working.BoB has sanctioned Rs 53 crore advances to farm sector and the cheques were also distributed to top borrowers. This specialised loan factory would process all types of loans related to agriculture sector under one roof. Source: thehindubusinesslin...

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Oriental Bank of Commerce to halt sale of gold coins

Oriental Bank of Commerce (OBC) has decided to discontinue sale of gold coins, it's Chairman & Managing Director S.L. Bansal has said.The decision will be implemented across all OBC branches with effect from Monday, it is learnt.OBC is the first public sector bank to discontinue sale of gold coins following the Government expressing concern over increased gold imports affecting the health of the economy.This move is in keeping with the Government’s objective of curbing gold imports.Finance Minister P. Chidambaram had urged people to resist...

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SBI needs capital up to Rs 3,000 cr for subsidiary’s merger

State Bank of India (SBI) said it will require up to Rs 3,000 crore capital to merge one of its associate banks.SBI will need Rs 1,000-3,000 crore in capital if it were to merge one of its subsidiaries with itself, its Chairman Pratip Chaudhuri said.He was speaking to shareholders at the bank’s annual general meeting here.The bank has appointed a committee headed by Managing Director S Vishwanath to look into the aspect of merging one of the five subsidiaries, he said.The subsidiary to be merged with SBI has not been identified yet.“The committee...

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Allahabad Bank, LIC tie up

Allahabad Bank has signed an agreement with the Life Insurance Corporation of India for selling micro-insurance products. According to a release, these insurance schemes are aimed at providing “appropriate” financial products and services to the weaker sections and low-income groups at an affordable cost. These schemes will be sold through the bank’s network of business correspondents.Source: thehindubusinesslin...

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Karnataka Bank’s 555 th branch

Karnataka Bank opened its 555 th branch at Peenya in Bangalore on Friday.A bank release said here that P. Ramadas, Managing Director of ACE Manufacturing Systems Pvt Ltd, Bangalore, inaugurated the branch in the presence of P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank.The bank’s 554th branch was opened at Challakere in Chitradurga district on June 20. The Challakere MLA, T. Raghumurthy, inaugurated the branch, the release added. Source: thehindubusinesslin...

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Mandatory opening of offices in rural areas will hurt insurers: IRDA

The provision of mandatory opening up of offices in towns and cities for state-owned public insurers will act as a strain on them, said a top official from the life insurance industry.In the union budget Finance Minister asked the state-owned insurance companies including Life Insurance Corporation to open offices in towns with population with over 10, 000.While addressing a seminar on insurance in Mumbai, said S B Mathur, part-time member, Insurance Regulatory and Development Authority, "While there has been a 7 per cent decline in new premium...

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National Payments Corpn unveils online service

Retail payments service provider National Payments Corporation of India on Friday launched its e-commerce solution ‘RuPay PaySecure’ to facilitate online payments by customers. The customers can utilise this service for, among others, ticketing, shopping and paying utility bills via the Internet and mobile.“NPCI has tied up with over 100 merchant Web sites across multiple categories that would accept the RuPay card for online payment services. NPCI aims to cover 100 per cent of the e-commerce market by this year-end,” the company said...

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RBI monitoring rupee movement: Deputy Governor

In the wake of the Indian rupee touching the 60-mark on Thursday, the Reserve Bank of India has said it is monitoring the movement and that steps are being taken to contain the situation given the steep fall in the currency.H.R. Khan, Deputy Governor of RBI, said: “We are watching and monitoring the situation. All short-term and long-term measures are being taken,” he said here today on the sidelines of a National Payments Corporation of India (NPCI) event.The Deputy Governor also said that the central bank is in talks with the Finance Ministry...

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United Bank to stop lending to infra, real estate sectors

United Bank of India has decided to stop fresh lending to infrastructure, steel and iron, airlines and real estate and textile sectors.According to Archana Bhargava, Chairperson and Managing Director of the PSU bank, non-performing assets in these sectors have been going up and the recovery has also been poor.”We have stopped lending to infrastructure, steel and iron, airlines and real estate sectors,” Bhargava said at the 4th annual general meeting of the bank.She, however, clarified that the bank would continue to lend to public sector companies in these sectors.According to a senior official of the bank, some of the existing long-term loan accounts in these sectors are being restructured....

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No plan to cut savings account rate: Kotak Bank

Private sector lender Kotak Mahindra Bank is unlikely to reduce its savings bank deposit rate this fiscal, a top official said.“We will maintain the 6 per cent rate for some time. We have no plans to change the rate this fiscal,” president for consumer banking KVS Manian told reporters on the sidelines of a bank event here.He said the bank has more than doubled its savings account base over the last 18 months, ever since the Reserve Bank deregulated interest rates on the product helping it tap into the market with an aggressive offering.The...

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SBI gesture for special children

State Bank of India (SBI), Hyderabad Circle has donated a Tata Winger worth Rs 5.68 lakh to Sri Vidhya’s Centre for the Special Children, East Marredpally here on Wednesday as part of its corporate social responsibility efforts.Speaking on the occasion, Rakesh Sarma, Chief General Manager, SBI-Hyderabad said during the year 2012-13, his bank donated necessary equipment worth Rs 6 crore to various schools, according to a release. Source: thehindubusinessli...

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ICICI Bank UK launches online remittance account

ICICI Bank UK launched an online savings account specifically for money transfers to India.The ‘HiSAVE’ remittance account will provide account holders the opportunity to earn 1.50 per cent interest on the balance maintained in the account after the money transfer.The customers also have the option to set a minimum exchange rate at which they transfer their money and the bank will ensure that the money is sent only at that exchange rate or higher, the bank said.The account can be opened and managed online and does not require a minimum balance...

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Kotak Bank rolls out new ‘Junior’, RD accounts

Private sector lender, Kotak Mahindra Bank on Thursday launched a savings account for children up to 18 years of age. It has also started a 10-year recurring deposit (RD) for long term financial planning.The interest rates on savings accounts for children and on the RD would be same as being currently offered on general savings bank accounts and fixed deposits, respectively.Currently, the bank offers 5.5 per cent interest on savings account balances of up to Rs 1 lakh and 6 per cent on balances above Rs 1 lakh.The bank’s FD rates are: 8.50 per...

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At Central Bank, CCTVs to help monitor ‘fishy’ deals too

Central Bank of India has found one more use for the CCTVs in its branches. Besides security, the bank will scan the video recordings for fishy dealings, if any, in the sale of financial products and services.This move follows an undercover sting operation by online magazine Cobrapost at some of the branches of 30 banks and insurance companies, where officials allegedly offered to convert tax-evaded money into legitimate money.According to R.K. Goyal, Executive Director, Central Bank of India, “Our bank’s chief security officer will call for...

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Hearing again on July 1 on National Pension Scheme in SBI

The Kerala High Court has posted the ‘part-heard’ writ petition challenging the implementation of the National Pension Scheme in State Bank of India (SBI) to July 1.The case was filed by A. Jayakumar, General Secretary of State Banks’ Staff Union, Kerala Circle, in February. IMPORT OF ACT Hearing in the case resumed on Monday, and had come for final argument on Wednesday.Counsels Vaidyanathan S., H. Ganapathy and Jimmy George appeared for the union while George Thomas Mevada represented SBI.Sources told Business Line that the counsels argued...

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Andhra Bank opens branch in Vijayawada

The Chairman and Managing Director, Andhra Bank, B.A. Prabhakar today inaugurated a new spacious premises of their Ring Road Branch at Vijayawada under its ‘Navshakti Project’.This includes 24 hours/365 days anytime-banking centre with ATMs, self pass- book printing kiosk, Internet banking kiosk and cheque depositing machine.The bank branch is specially designed to serve customers in separate zones for regular transaction customers and customers with special needs where interaction is required with the personal bank officers.It has a jumbo size...

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Axis Bank opens branch in rural Punjab

Axis Bank, India’s third largest private sector bank, has opened its 2,000th branch at Ahmedgarh in rural Punjab.Shikha Sharma, MD and CEO, Axis Bank, said: “We have been one of the early banks in the very ambitious and innovative Pungrain Project undertaken by the Punjab Government for electronification of payments to farmers. We are excited about the potential to work closely with the government initiatives in finding banking solutions.”The bank’s branch network includes 146 branches operating in rural unbanked centres, 135 branches in rural...

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Exim Bank gets licence to open representative office in Myanmar

Export-Import Bank of India (Exim Bank) has received a banking licence to open a representative office at Yangon in Myanmar.Exim Bank has extended seven lines of credit (LoCs) worth $247.43 million to the Myanmar Foreign Trade Bank for projects or contracts such as upgradation of the railway system, setting up refinery projects, a manufacturing plant for assembly and manufacture of Tata vehicles in Myanmar and setting up of three transmission lines in Myanmar, among others.A memorandum of understanding (MOU) for LoCs worth $500 million was signed...

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RBI ED Bhaskar, IAS officer Krishnan join FPSB Board

The Financial Planning Standards Board India (FPSB) today appointed IAS officer K P Krishnan and Reserve Bank executive director P Vijaya Bhaskar on its board of directors.The city-based FPSB, which is a public-private enterprise and a professional standards setting body, said the appointment will be till March 2015.Krishnan, who is serving as Principal Secretary with Government of Karnataka, was earlier the secretary of the Prime Minister’s Economic Advisory Council, while Bhaskar oversees Central Security Cell, Department of Banking Supervision...

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Weak rupee indication of falling competitiveness: Uday Kotak

Terming rupee depreciation as a sign of falling competitiveness of the domestic economy, Vice-Chairman and Managing Director of Kotak Mahindra Bank, Uday Kotak today said efforts should be made to increase productivity rather than only relying on short-term measures.He said rupee movement in short term will depend upon the announcement to be made tonight by Federal Reserve Chairman Ben Bernanke regarding the future of the third round of the quantitative easing (QE3).“Over last five years, the currency has depreciated by 45 per cent. It shows...

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NPA problems due to slowdown in economy: Andhra Bank CMD

State-run Andhra Bank’s chairman and managing director B A Prabhakar on Wednesday attributed the stress on banks’ asset quality to gloom on the economic front and said it would improve only when growth revives.“The entire banking sector in the country is now facing non performing assets (NPA)-related problems due to the slowdown in the economy for the last 3-4 years,” Prabhakar said at a bank function here. He specifically cited infrastructure as a trouble spot which he said is hurting the banking sector. Andhra Bank’s gross non performing assets...

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StanChart, HSBC charged with money laundering

In addition, amid the series of investigations starting March this year, Cobrapost exposed Indian banks of money laundering and Know-Your-Customer norms violation charges.While the RBI claims to be taking action against the erring banks and their insurance associates, Cobrapost in its fourth investigation report has found two foreign lenders Standard Chartered and HSBC defaulting on similar practices by helping convert black money into white.Presenting as a politician’s frontman, Cobrapost reporter visited HSBC Bank and Standard Chartered Bank...

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IDFC to apply for bank licence

The IDFC board has approved a resolution for making an application to the Reserve Bank of India for obtaining banking licence, based on the Guidelines for Licensing of New Banks in the Private Sector. As on March-end 2013, the non-banking finance company, which is into infrastructure lending, had gross loans aggregating Rs 56,595 crore (Rs 48,887 crore as on March-end 2012). In FY2013, it reported a net profit of Rs 1836 crore (Rs 1554 crore in FY2012). Source: thehindubusinessli...

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A Naturals pact with IOB to fund salons

Groom India Salon & Spa Pvt Ltd, that owns the salon chain brand Naturals, has signed a pact with Indian Overseas Bank to promote women entrepreneurship in the country.According to C.K. Kumaravelu, co-founder and CEO of Groom India Salon, the bank has come forward to fund up to Rs 25 crore under the ‘Credit Guarantee Fund Trust for Micro and Small Enterprises’ scheme to roughly 100 women franchisees identified by the company.Each salon will cost anywhere between Rs 25 lakh to Rs 50 lakh per salon, depending on the infrastructure and location...

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Kotak Bank looking at ‘affluent’ customers to drive growth

Mumbai-headquartered Kotak Mahindra Bank aims to widen its “affluent customer” base to boost growth. Customers having investments in excess of Rs 25 lakh are described as ‘affluent’.The bank launched a set of new offerings under the ‘Privy League’ brand here on Tuesday. Categorised under the Prima, Magna and Optima segments, the scheme would offer banking, financial planning and investment solutions.Kamlesh D. Rao, Executive Vice-President, Kotak Mahindra Bank, said: “We expect the affluent customer count to reach 40,000 from the current 15,000,...

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ICICI Bank raises $106 m in Chinese bond market

India’s largest private sector lender, ICICI Bank, on Tuesday raised Chinese Yuan (Renminbi) 650 million ($106 million) via bonds of three years maturity.The coupon rate on these bonds, which will be listed on the Singapore exchange, is 4 per cent. The funds have been raised under the bank’s $5 billion Medium Term Note (MTN) programme.ICICI Bank is the second domestic lender to sell bonds to offshore Chinese investors. Earlier, IDBI Bank had tapped this fund-raising route. Rating agency S&P has given a ‘BBB-’ rating to the senior unsecured...

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SIDBI FY13 net up 48% on better loan growth

Helped by a one-time tax-related gain and higher disbursal, Small Industries Development Bank of India (SIDBI) has posted a 48 per cent increase in its full-year profit to Rs 837 crore.The financial institution, which provides loans to Micro, Small and Medium Enterprises (MSMEs), earned a refund of Rs 187 crore from the Income-Tax Department during the financial year.Excluding this one-time gain, SIDBI’s net profit rose 15 per cent to Rs 652 crore (Rs 567 crore). Total loans outstanding grew 4.2 per cent to Rs 56,060 crore from Rs 53,785 crore. NPA...

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Dena Bank has discovered untapped potential in the rural and semi-urban economy of the eastern and North-Eastern region.Chairman Ashwani Kumar told reporters here on Monday that in view of relatively higher growth opportunities, particularly in deposit collection in current and savings accounts, Dena Bank has set a target of opening 13 new branches in the region this financial year. Till last year, East and North-East contributed to two per cent of bank’s business portfolio. Un-banked pockets Of these proposed branches, five would be in...

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RBI holds key rates on concern over rupee, inflation

The Reserve Bank of India today kept the key interest rates unchanged citing elevated food inflation, rupee depreciation and uncertainty over foreign fund inflows.The repo rate at which the RBI lends to the system has been retained at 7.25 per cent, while the cash reserve ratio will continue to be 4 per cent.“The monetary policy stance has been informed by the evolving growth-inflation dynamics, the balance of risks as well as recent developments in the external sector,” the RBI Governor, D. Subbarao, said in the mid-quarter policy review. US...

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SBI training institute coming at Rajarhat

State Bank of India (SBI) has laid the foundation stone for its sixth apex training institute at Rajarhat in the eastern fringes of Kolkata.Christened the State Bank Institute of Management, the institute would be set up on a 10-acre plot acquired commercially from the West Bengal Housing Infrastructure Development Corporation Ltd, a release said.According to the release, Pratip Chaudhuri, Chairman, SBI, said one of priorities of the bank would be to train the 5,500 officers and approximately 20,000 clerks recruited in the last couple of years.SBI...

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S K Roy appointed as LIC Chairman

The government today appointed S K Roy as the Chairman of Life Insurance Corporation of India (LIC).The Appointments Committee of the Cabinet (ACC) has already cleared his name. The notification in this regard has been issued, sources said.Roy, who at present a Managing Director in the organisation, would be succeeding D K Mehrotra, whose term as LIC chief ended on May 31.Roy would be at the helm of the insurance behemoth for a period of five years, official sources said, adding, he would assume charge on July 1.The other candidates who were...

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Union Bank ATM at Ernakulam

Union Bank of India has opened an ATM at Passport Seva Kendra, Karingachira, Ernakulam. It was inaugurated by Sunil Babu, Regional Passport Officer. T.C. John, DGM, Union Bank of India, Ernakulam, Lead District Manager A.R. Jayaprakash and Passport Seva Kendra Manager Lijo Mannaraprayil were present. Union Bank of India has tied up with passport seva kendras all over the country for installing ATMs. Source: thehindubusinesslin...

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Dena Bank plans to spread wings overseas

Public sector lender Dena Bank has chalked out a plan to expand its presence overseas, Chairman and Managing Director Ashwani Kumar said. “We have already got the approval from the Reserve Bank of India for opening a representative office in the UK. The permission of the Finance Ministry is awaited”, Kumar told reporters here today. The bank is also planning to open its branches in the US and African countries, he added. Kumar further said the bank plans to open a full-fledged branch in the UK, which would be through the subsidiary route. Talking...

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19 nationalised banks to have 442 general managers

Bank of Baroda can have maximum number of 43 General Managers (GMs) among the nationalised banks, says a Finance Ministry circular.Seeking to improve manpower management in the public sector banks, the circular said that the 19 nationalised banks should have a total number of 442 GMs to oversee banking operations.The list of banks does not include country's largest lender State Bank of India (SBI).As per the circular, Punjab National Bank can have 41 GMs, followed by Canara Bank and Bank of India (both 38 GMs) and Union Bank of India (29 GMs).The...

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