Yes Bank chief Rana Kapoor takes over as Assocham president

Rana Kapoor, managing director and CEO of Yes Bank, took over as the president of the Associated Chambers of Commerce and Industry of India (Assocham) at the end of the industry body's 92nd annual general meeting (AGM) in Delhi on Saturday.An alumni of Rutgers' University (New Jersey), he succeeds Rajkumar Dhoot, who is the managing director of Videocon Group.During his one-year tenure, Mr Kapoor, 56, would promote a five-point agenda on securing sustainable growth for India which includes economic security, livelihood security, national security...

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UCO Bank Q1 profit gets 41% ‘other income’ boost

Riding on the back of a rise in non-interest income and lower cost of funds, UCO Bank posted 41 per cent growth in net profit to Rs 511 crore for the quarter ended June 30, 2013.The net profit stood at Rs 362 crore during the same period last year.On a sequential basis, profits during Q1 FY14 zoomed ten-fold from around Rs 50 crore during the January-March 2013 quarter. The drop in profit during Q4 FY13 was due to higher provisioning for stressed assets.According to Arun Kaul, Chairman and Managing Director of UCO Bank, cost of deposits during...

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OBC puts on hold base rate cut

Oriental Bank of Commerce (OBC) has decided to put on hold its earlier decision to cut the base rate by 25 basis points to 10 per cent from July 22.The implementation date for reduction in the base rate has been put on hold, OBC said in a filing with the stock exchanges.The public sector lender had, on July 9, announced that it would reduce base rate by 25 basis points from 10.25 per cent to 10 per cent with effect from July 22.While the bank did not give any reason to put on hold the announced cut in base rate, the recent measures by the Reserve...

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Punjab & Sind Bank cuts lending rate by 0.26%

Punjab & Sind Bank on Thursday announced a cut of 0.26 per cent in minimum lending rate to 9.99 per cent, a move which will lower EMIs.The bank has reduced its base rate to 9.99 per cent from 10.25 per cent, Punjab & Sind Bank said in a statement.All loans linked to base rate would become cheaper by at least 0.25 per cent. Base rate is the minimum lending rate below which banks cannot lend. The new rate would be effective from August 1, it added.The change in the base rate shall immensely benefit the borrowing clientele of the bank,...

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Biz plan in the works for first women’s bank

This could be another instance of women power on display.The proposed ‘Women Only’ bank, announced by Finance Minister P. Chidambaram in his Budget speech of 2013, may not pose a serious competitive threat to other public sector banks, but it could nevertheless wean away women customers, both existing and new comers.The business plan of the new bank, which is in the making, envisages a steady ramp up of its branch and ATM networks across the country.From 39 branches (including mobile and satellite branches) and 127 ATMs by the end of the first...

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IOB hands over dividend cheque to Finance Minister

Indian Overseas Bank has paid a dividend of Rs 136.39 crore to the Central Government for financial year 2012-13.The dividend warrant cheque was handed out to the Union Finance Minister P Chidambaram by IOB Chairman and Managing Director, M. Narendra, in the Capital on Thursday.The Centre currently holds 73.80 per cent stake in IOB.The board of directors of IOB had in April this year recommended 20 per cent dividend (Rs 2 on equity shares of Rs 10 each) on equity shares of the company for the financial year 2012-13.IOB had not paid any interim...

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LIC Housing mulls rate cut

LIC Housing Finance will prefer keeping interest rates down and maybe reduce them in the coming quarter, according to V. K. Sharma, Managing Director and Chief Executive Officer.Addressing the media at the inauguration of a property fair by the company, he said if interest rates do not come down it will affect the economy and dampen growth and employment. Interest rates will definitely have to be stable, if not fall, he said.The housing market in major cities, such as Mumbai and Delhi, are saddled with unsold stocks because of high prices,...

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Syndicate Bank appoints new officer employee director

Manjrekar Sanjay Anant has been appointed as officer employee director on the board of directors of Syndicate Bank.His appointment is for a period of three years from July 17 or until he ceases to be an officer of the bank or until further orders, whichever is the earliest.anil.u@thehindu.co.in Source: thehindubusinesslin...

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IDBI Bank net dips 28% in Q1 as provisioning for bad debts rises

IDBI Bank has reported 28.1 per cent decline in net profit at Rs 306.95 crore for the first quarter ended June 30, 2014.IDBI Bank on Thursday reported a 28 per cent decline in net profit for the first quarter ended June 30 at Rs 307 crore (Rs 427 crore).The bottomline performance was largely pulled down by a sharp jump in provisioning for bad debts, which increased in the quarter under review to Rs 739 crore (Rs 377 crore).Total income grew 9.6 per cent to Rs 7,445 crore (Rs 6,790 crore). The net profit was also bolstered by sharp increase...

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HDFC Bank re-appoints Vasudev as non-exec chairman

The country’s second largest private sector lender HDFC Bank on Thursday re-appointed C. M. Vasudev as Non-Executive Chairman of the bank for two years up to August 26, 2015, the bank informed the Bombay Stock Exchange. The re-appointment will be subject to the approval of the RBI and the shareholders of the bank.Source: thehindubusinesslin...

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Interest income lifts Kotak Bank Q1 net 43%

Kotak Mahindra Bank has posted a 43 per cent jump in net profit at Rs 403 crore during April-June quarter of this fiscal against Rs 282 crore in the year-ago quarter. The profit was driven by a spike in interest income and robust loan growth.Net interest income (difference between interest earned and expended) rose 27 per cent to Rs 917 crore from Rs 721 crore in Q1FY’13. Other income increased over 90 per cent to Rs 462 crore in Q1FY’14 from Rs 241 crore in Q1FY’13.During the quarter, provisions towards loans increased 155 per cent to Rs 134...

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Axis Bank Q1 profit rises 22% as retail loan growth improves

Higher interest income and retail loan growth helped Axis Bank post a 22 per cent rise in net profit at Rs 1,409 crore in the first quarter ended June 30, 2013.The çountry’s third largest private bank had reported a net profit of Rs 1,154 crore in the year-ago period.Net interest income (the difference between interest earned and expended) grew 31 per cent to Rs 2,865 crore, while other income was up 32 per cent to Rs 1,761 crore.The percentage of gross non-performing assets (NPAs) edged up marginally to 1.10 per cent from 1.06 per cent in...

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Sebi gets more powers to curb Ponzi schemes

The Cabinet on Wednesday approved amendment to the Sebi Act, which is expected to arm the stock market regulator to crack down on collective investment schemes such as the Saradha scam in West Bengal.Senior government sources told TOI that the Cabinet had shown the green light to the proposal to provide more powers to Sebi to help investigate and punish fly-by night operators of Ponzi schemes. Sebi will be able to summon any person or entity to assist in an investigation into a chit fund or a para-banking operation. It also provide powers to...

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NRI businessman M. A. Yousuf Ali picks up stake in Federal Bank

NRI businessman M. A. Yousuf Ali has picked up a 4.47 per cent stake in Federal Bank, thereby becoming the biggest individual shareholder in the Kerala-based lender.Ali purchased a 4.47 per cent stake in Federal Bank from Dubai-based Emirates Financial Services, a subsidiary of Emirates NBD, newsportal ‘Emirates 24|7’ said in a report.Speaking to Emirates 24|7, M. A. Yousuf Ali said the transaction was completed last week.Pursuant to the transaction, Yousuf Ali has become the single largest individual shareholder in Federal Bank, which has...

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StanChart puts office for sale

Standard Chartered Bank has invited bids for the sale of its 2.46 lakh sq ft office property located in Goregaon, Mumbai. According to reports, the idea is to consolidate the bank’s operations and relocate its staff to the bank’s two offices in Mumbai’s Fort area and Bandra Kurla Complex.An advertisement issued by Jones Lang LaSalle, the property consultant roped in by the bank, said the standalone commercial building located on the Western Express Highway in Goregaon East comprises ground plus six floors. It also includes two basements and...

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Allahabad Bank not to hike lending rates

Public sector lender Allahabad Bank on Wednesday said it is not going to hike lending rates despite RBI raising rates and tightening liquidity to stem rupee volatility.The RBI stance would not put any pressure on the funding cost and there is no need for an upward correction of the base rate, the bank said in a statement.Earlier this week, the RBI made cost of fund expensive by announcing a slew of measures including hiking the lending rates for banks and sucking up of Rs 12,000 crore, to make the currency dearer.Source: thehindubusinessli...

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Interest income lifts HDFC Bank Q1 net 30%

HDFC Bank maintained its 30 per cent quarterly net profit growth performance in the April-June quarter helped by robust loan growth and higher interest income.The second largest private sector bank reported a net profit of Rs 1,844 crore in the first quarter ended June 30, 2013, against Rs 1,417 crore in the corresponding quarter last year.The bank has been logging 30 per cent quarterly growth rates consistently over the last few years.Net interest income (difference between interest earned and expended) increased 21 per cent to Rs 4,419 crore....

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Govt cue: PSU banks won't hike rates

You need not worry about an increase in your equated monthly installments after RBI's late night action on Monday. The finance ministry has leaned on public sector banks that control around 70% of the business against raising rates to keep a large constituency of middle class and corporate borrowers pacified ahead of key elections.After all, for over a year now, the finance ministry has been prodding RBI to cut rates, while the central bank has refused to toe the government line. Instead, on Monday it signaled a reversal in policy to offset...

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Now, donate to the Gods on the go

The Gods are now primed to receive your offerings 24 hours a day, seven days a week and 365 days a year via mobile phones. Are you ready?You may be hard pressed for time to go on a pilgrimage and make an offering or there may be times when on the spur of the moment you want to make an offering.Realising the latent demand for making on-the-spot donations, banks, in association with the National Payments Corporation of India Ltd (NPCI), have launched immediate payment service (IMPS) based donations.Devotees can now make instant offerings to their...

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RBI steps in to shore up rupee, but economy could take a hit

In its toughest move to defend the rupee after the Lehman Brothers crisis in 2008, the Reserve Bank of India (RBI) has moved to push up short-term rates in the money markets which will choke speculators and attract dollars to India. But these measures will cause collateral damage to the economy by pushing up short-term borrowing for companies by a couple of percentage points and cause huge losses for bond investors.In a late-evening statement on Monday, RBI said that it would limit its lending of overnight funds to banks to Rs 75,000 crore....

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Himachal targets 800 new bank branches by 2016

Himachal Pradesh has set a target of opening 800 new bank branches in rural and remote areas of the state by 2016 as per a comprehensive financial inclusion plan. The hill state already has 1,666 bank branches, besides 861 ATMs.Addressing the 128th state level bankers committee meeting, convened by Uco Bank in Shimla on Monday, state chief secretary Sudripta Roy said that a record number of 31 new branches were opened during the last quarter till March 2013. Of these, 25 were located in rural areas.Roy said that under the annual credit plan...

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Vijaya Bank promotes RuPay-branded debit cards in Gujarat

Vijaya Bank has enabled its merchant terminals for usage of RuPay-branded debit cards in Gujarat, urging customers to make use of the new indigenous payment facility.A function was held at its Regional Head Office here to enable merchant terminals in the use of RuPay-branded debit cards.Ajay Kumar Khurana, Regional Manager, said with the enabling of the bank’s ATMs and POS terminals for the RuPay brand, Vijaya Bank has joined the league of banks whose payment and settlement systems for domestic card transactions are settled within the country.RuPay...

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OBC cuts term deposit rates by 0.25%

Oriental Bank of Commerce has slashed the interest rates on term deposits of Rs 5 crore and above on select maturities by 0.25 per cent.The bank has slashed the interest rates on maturities of 180-269 days to 8 per cent from 8.25 per cent earlier.For maturities of 1 year to less than 2 years and between 2 years to less than 3 years, the new deposit rates will be 8.50 per cent each, the bank said in a statement on monday.Shares of the bank were trading at Rs 201.10 apiece on the BSE, up 2.26 per cent from the previous close. Source: thehind...

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No target in mind on number of bank licences: RBI

The Reserve Bank of India does not have any target in mind on the number of banking licences to be issued in this round, a senior official of the central bank has said.“As of now, we have received 26 applications. Financial inclusion has to be a pre-condition for such banks to come. How many banks will come, that depends upon their complete plan and analysis of their proposals,” RBI Executive Director R.Gandhi said at an event here today.“We will have to wait for few months before we decide how many banks will be given licence. There is no...

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High Court reserves ruling on New Pension Scheme at SBI

The Kerala High Court has reserved judgment on a writ petition challenging New Pension Scheme made applicable to recruits joining State Bank of India on or after August 1, 2010.Justice C. T. Ravikumar heard the case, filed by A. Jayakumar, General Secretary, State Banks’ Staff Union (Kerala Circle), which came up for hearing on Monday.Sources told Business Line that the Centre did not file any statement as directed by the court saying the scheme was placed before both Houses of Parliament and notified in the Gazette of India.Counsels merely...

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YES Bank case: Court accepts draft amendments filed by Madhu Kapur next hearing on July 29

The next hearing in the Madhu Kapur versus YES Bank case in the Bombay High Court is scheduled for July 29.The court on Monday accepted the draft amendments filed by Madhu Kapur on July 8.YES Bank did not oppose the amendments and a senior bank official, on the condition of anonymity, said: “We will take up each clause in the amendment and either accept or oppose it on merit basis in the next hearing.”The draft amendment relates to the reasoning given by the Madhu Kapur camp as to why they should also have a say in the appointment of three...

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Deutsche Bank offers incentives for online banking

Foreign lender Deutsche Bank on monday launched a loyalty programme through which account holders stand to get cash-backs into their bank accounts for conducting transactions.Under ‘Express Rewards’, customers will earn reward points for conducting transactions like online utility bill payments, purchases made using debit cards and also auto debit transactions for home loan or personal loan EMIs, the bank said in a statement.The reward points can be later redeemed into cash in the customer’s account, it added.“This programme has been launched...

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To curb mis-selling, IRDA favours banks marketing insurance policies

The Insurance Regulatory and Development Authority may favour allowing insurance companies to use the network of bank branches to sell policies, if banks opt to take on the role of insurance brokers.According to current IRDA guidelines, a broker has to set up a separate subsidiary with a separate share capital for distribution of insurance products. However, the insurance regulator is considering amending this regulation to allow banks to distribute insurance through their existing branches without setting up a separate subsidiary, said a senior...

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Muthoot may turn 2,000 gold-loan outlets into bank branches

The largest pure-play gold mortgage player Muthoot Finance , which has applied for banking licence, has said it can easily launch commercial lending business with as many as 2,000 branches."We are confident of getting a banking licence from the Reserve Bank, given our reach in rural markets and our over a century of experience. In fact, our experience is the biggest asset and we are better suited than many other applicants in this regard," Muthoot Finance managing director George Alexander Muthoot told PTI from the headquarter in Kochi.Many...

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Women bankers may get leg-up with Mahila Bank

Women bankers looking for better career prospects, while also boosting financial access for the fairer sex, will soon have the option to move to the Bharatiya Mahila Bank (BMB) that will be ready to commence operations by November.While the government is yet to finalize the chairperson for the all-women bank, sources said that Punjab National Bank executive director Usha Ananthasubramanian is the frontrunner for the job. If the appointment comes through, she will have a five-year run at the bank and will be able to implement the plan better...

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Andhra Bank donates Rs 1 cr to Uttarakhand

Andhra Bank has donated Rs 1 crore to the Chief Minister’s relief fund, Uttarakhand, to provide relief and rebuilding measures in the wake of recent floods.All the employees of the bank had also donated one day’s salary to the Prime Minister’s national relief fund, according to a release. Source: thehindubusinesslin...

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IndusInd Bank likely to enter gold loan business this quarter

Private sector lender IndusInd Bank is likely to foray into the gold loans business in this quarter, the bank chief Romesh Sobti said.The bank is likely to set a conservative loan-to-value (LTV) ratio of 50-65 per cent depending on the client profile.LTV is the amount of loan a borrower gets against the value of the collateral. So, in the case of IndusInd Bank, if a customer pledges gold amounting to Rs 10,000, he will get a loan of Rs 5,000-6,500.According to Sobti, the industry has learnt its lessons with regard to the LTV ratio.“These gold...

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