UCO Bank to seek capital from government

Public sector UCO Bank would approach the government for fresh infusion of capital to meet Basel-III norms."We will write to the government seeking capital for the bank," chairman of UCO Bank Arun Kaul said on friday."We are taking adequate steps for getting Tier-I, Tier-II capital. We have options to go to the market or approach the government," Kaul told shareholders at the bank's 10th AGM here today.He said that the bank was already having branches in Hong Kong and Singapore. "We are now looking at South East Asia," Kaul said.Kaul said that...

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Banks should have separate wealth management unit: RBI draft

The Reserve Bank of India (RBI) has proposed tough norms for banks involved in wealth and portfolio management services (W/PMS), mandating them to segregate sales and advisory activity, and threatened to bar them from money markets for violation of guidelines.It plans to put a blanket ban on the practice of bank staff earning incentives for selling third-party products, since it promoted mis-selling and encourages structuring transactions to help customers evade tax, and fraudulent transfer of funds.Cash transaction for third-party insurance...

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YES Bank appoints 3 top management executives as whole-time directors

Private sector lender YES Bank has appointed three of its senior management executives as whole-time directors on its board, according to a release filed with the Bombay Stock Exchange.The board of directors at its meeting held on June 27, 2013, has given its approval to submit applications to the Reserve Bank of India for the appointment of top management executives — Rajat Monga, Sanjay Palve and Pralay Mondal — of the bank as whole-time directors, subject to RBI and shareholders’ approval, the bank said in the release.Rajat Monga is Executive...

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New norms for life products: IRDA extends deadline

The Insurance Regulatory and Development Authority (IRDA) on Friday extended the deadline for implementation of new norms for group products of traditional life insurance.All the existing group and individual products not in conformity with the new regulations shall be withdrawn from August 1, 2013, and October 1, 2013, respectively, T. S. Vijayan, Chairman, IRDA said in a circular.As per the earlier notification, all existing group products had to be aligned with the new rules before June 30, while individual products had time till September-end.The...

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SIDBI launches microfinance platform

The Small Industries Development Bank of India (SIDBI) on Friday launched an ‘India Microfinance Platform’, a portal on microfinance activities in the country.This portal is another major step toward SIDBI’s ‘responsible financing agenda’ and would help establish more transparency in the microfinance sector, said Sushil Muhnot, Chairman and Managing Director, SIDBI.Launched with World Bank assistance, the platform would provide data on every microfinance firm right up to the district level, Muhnot said.The portal will provide annual financial...

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Rural banking can trigger economic revolution, says K. C. Chakrabarty

The launch of a rural bank branch often marks the start of an economic revolution in a village and its surroundings, RBI Deputy Governor K. C. Chakrabarty said.Speaking after inaugurating the 3,742nd branch of Canara Bank at Gungralchatra, a hamlet on the outskirts of Mysore, he said new technology initiatives such as Aadhaar (UID), RuPay and Kisan cards will help bring about an economic revolution. Urging customers to use these facilities, he pointed out that banking is a business where money has to rotate and, thereby, provide a multiplier...

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IDFC bags General Counsel’s Gold award

Leading infrastructure finance player IDFC has bagged an award at the International Legal Alliance Summit 2013.It won the "General Counsel’s Gold Award” for the best legal department in Asia and South Pacific region, the firm said in a statement.Over 400 in-house counsels and law firms across the world participated in the summit, which recognises the best legal department of companies. Source: thehindubusinesslin...

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Dept of Post applies for banking licence

The Department of Post today submitted application before the Reserve Bank for a licence to offer full-fledged banking services.“We have approached RBI today and hopefully having met all the conditions of RBI, an in-principle approval might be given. If it is given, I think, it will be a revolutionary step because it will bring banking, subject to Cabinet approval, to the doorstep of the ordinary man in this country,” Telecom and IT Minister Kapil Sibal told PTI.The RBI is in the process of granting fresh banking licences and has set July 1...

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Corp Bank's Rs 1-cr aid to Uttarakhand

Corporation Bank has donated Rs 1 crore to the Prime Minister’s Relief Fund for Uttarakhand.A press release from the bank says that the employees have also donated one day’s salary to the fund to support relief and rescue operations the flood-ravaged State. Source: thehindubusinesslin...

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YES Bank to inform court about decision on Gogia

Private sector lender Yes Bank on Thursday said the decision relating to inducting Shagun Gogia on the board will be directly conveyed to the court on Monday, July 1.“As the matter is sub judice, the final decision of the board of directors of Yes Bank on the subject will be submitted to the Bombay High Court at its scheduled hearing on July 1, 2013 as per the court order,” the bank said in a statement.Gogia said that no decision on the board meeting was conveyed to her.The board meeting, which was earlier scheduled for July 24, was advanced...

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IRDA may soon get Member-Actuary

The Insurance Regulatory Development Authority (IRDA) is likely to get a new Member Actuary with the Finance Ministry recommending a candidate in an interview held in Delhi on Wednesday.“There were three candidates interviewed for the position — two from IRDA and one from the industry. We have made our recommendation to the Government,” said Financial Services Secretary, Rajiv Takru.The position, which is of the rank of Additional Secretary at the Centre, has been vacant since May 2011 when the former Member-Actuary at IRDA, R. Kannan, retired.Though...

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Markets are over-reacting, says HDFC Bank chief

Amid weakening markets and falling rupee after the US Federal Reserve last week indicated of slowing down its monetary easing programme, HDFC Bank chief said the markets have overreacted.“Markets are definitely over-reacting. It is unfair and not productive to keep asking what is happening to the rupee as it (the weakening markets and rupee fall) is because of the external circumstances,” said Aditya Puri, Managing Director, HDFC Bank.“Also, the Fed has made optimistic projections as to what will happen and have said that if these things happen,...

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Basel III norms may restrict banks from extending long-term infra loans: RBI report

Banks may face some constraints in extending long-term finance to infrastructure projects once the Basel III bank liquidity norms are implemented, according to the Reserve Bank of India.In the absence of alternative arrangements (such as securitisation, take-out finance), banks may not be able to undertake long-term project financing, said the RBI in its 7{+t}{+h} Financial Stability Report.Basel III is a global regulatory standard on bank capital adequacy, stress testing and market liquidity risk. It requires banks to source more and better...

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UBI raises Rs 500 cr via bond issue

United Bank of India on Tuesday said that it has raised Rs 500 crore Tier-II bonds complying with Basel-III guidelines.The issue was entirely subscribed by the Life Insurance Corporation.The non-convertible bonds have a tenure of 10 years and can be traded in the wholesale debt market segment of the BSE, a release issued by UBI said. Source: thehindubusinesslin...

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Bank jobs: Over 60,000 yet to get call letters

The fate of over 60,000 bank job aspirants who qualified for the posts of officers and clerks hangs in balance due to uncertainty over their appointments.“I wrote the test for probationary officer posts in public sector banks conducted by the Institute of Banking Personnel Selection last year and have been declared qualified after the interview. Since then I have been waiting for a call from banks,” M. Bhavika from Lucknow told Business Line.While a total of 45,000 candidates were declared qualified, only 22,000 were given appointment letters...

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Weakening rupee will push up inflation, fiscal deficit: StanChart

The rupee fall, which has slipped below the 60/dollar level, could worsen inflation and fiscal deficit concerns, according to a report by Standard Chartered.The Indian currency has depreciated by about 7 per cent against the US dollar so far in June. It declined by more than 3 per cent since the US Fed announcement of tapering its quantitative easing programme on June 19.“Our estimates show that a weaker rupee can add to inflationary pressure, widen the fiscal deficit and slow capital inflows, without having a positive effect on the current...

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Vijaya Bank opens 1,377th branch

Vijaya Bank’s 1,377th branch was inaugurated by Nirmalananda Natha Swamiji of Adichunchunagiri Mutt at Chunchunahalli, Nagamangala Taluk, in Mandya district. Inaugurating the branch, Swamiji requested the villagers to save more and develop banking habits; he requested them to take full advantage of the banking facilities being provided by Vijaya Bank in villages. He also complimented the bank for their pro-active initiatives under the Financial Inclusion programme. K. R. Shenoy, the Executive Director of Vijaya Bank, presided over the function....

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Bank licence: Aditya Birla Nuvo, three others join the queue

With only four working days remaining for approaching the Reserve Bank of India with an application for banking license, four listed companies, including three financial services firms, decided to take the plunge.Diversified conglomerate Aditya Birla Nuvo’s board on Wednesday decided to approach the RBI for a banking license. Reliance Capital and Magma Fincorp too made similar announcements. The promoters of Religare Enterprises Ltd announced disinvestment of shares, including to a US based bank (Customers Bancorp Inc.) in a bid to align their...

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Muthoot Finance gets RBI nod to set up White Label ATMs

Gold loan company Muthoot Finance said it has got in-principle approval from the Reserve Bank to set up White-Label ATMs in the country.White-Label ATMs are to be set up by non-banking entities on behalf of ‘sponsor banks’ but they would not carry the brand label of any bank, and would be accessible to card-holders of all the banks for a fee.In a BSE filing, Muthoot Finance said the RBI has “granted in-principle authorisation to the company for setting up White Label ATMs in India...”.The Chief General Manager of Muthoot Finance, K R Bijimon...

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SBI to get tough on loan defaulters

Faced with a Rs 51,000-crore bad loans pile, State Bank of India has decided to tighten the screw on defaulting borrowers.How? It is taking recovery action, such as filing winding-up petitions against defaulting companies and their guarantors.SBI wants its field staff dealing with recoveries to go after loan defaulters and wring out as much of the outstanding loan as possible.A secured creditor files a winding-up petition in a High Court when the borrower fails to repay debt.Winding up of a company is a process whereby its normal activities...

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To curb defaults, Canara Bank offers to reschedule education loans

State-run Canara Bank has come up with a ‘one-time settlement’ to help student borrowers reschedule their education loan.The bank’s Chairman and Managing Director R. K. Dubey told newspersons here on Tuesday that while the bank is interested in lending more, lest a student is deprived of education (for want of funds), poor recovery has been a matter of concern.‘Nevertheless, we are willing to reach out to all the parents to understand their difficulty in repaying their dues. We are willing to extend the loan tenure and facilitate easy repayment,’...

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Exim Bank chief urges more investment in high-tech goods

With the entire global economy going through a churn now, “this is the right time to weed out inefficiencies in our system and gear up our manufacturing capacity to emerge successful in the global economic scenario”, said T.C.A. Ranganathan, Chairman and Managing Director of Export-Import Bank of India. Indian manpower Technology manufacturing in particular is something Indian manufacturers should focus on, he said. India has the necessary manpower for that. State and Union Governments too should encourage investment in this sector, and...

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Corporation Bank to open 300 branches this fiscal

Corporation Bank will open around 300 branches this fiscal, according to its Chairman and Managing Director, Ajai Kumar.The bank opened 207 branches in 2012-13, and is planning to open around 300 more this fiscal and another 900-1000 in the next three years, he said at the 16{+t}{+h} annual general meeting (AGM) here on Tuesday. Currently, the bank has 1,707 branches.He said the number of ATMs would be increased from the present 1,400 to 5,000 in the next three years. Every branch would have an ATM, he said. KYC, NPA As regards fulfilling...

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