Corporation Bank to open 9 more SME loan centres this year

Corporation Bank will open nine more SME (small and medium enterprises) loan centres by the end of the current financial year.Inaugurating an SME expo in Mangalore on Saturday, B.K. Srivastav, Executive Director, said the bank has 16 SME loan centers across the country. The intention is to take the total number to 25 by March 2014.He said the bank is expecting not less than 30 per cent growth in the SME portfolio from these loan centers during the fiscal.Speaking on the occasion, Suresh Bhat, Director of Science and Technology Entrepreneurs’...

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Finance firms set to launch ATMs as demand spreads

Indian corporates have lined up plans to roll out ATMs, a year after the RBI gave its nod to non-banking companies to set up ATMs.First off the block, Tata Communications Payment Solutions (TCPL), a wholly-owned subsidiary of Tata Communications, plans to set up 15,000 ATMs in India under the brand name, Indicash.The company, after launching its initiatives in Maharashtra, has set its eyes on Karnataka.“In the next three years, we will launch 1,000 ATMs in Karnataka, with a thrust on rural areas,” Sanjeev Patel, CEO, TCPL, told Business Line.TCPL...

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LIC Housing launches ‘Sanchay’

LIC Housing Finance Ltd has launched a public deposit scheme ‘Sanchay’ whereby it will offer the highest interest rate of 9.5 per cent on five-year deposits.The term period for deposits ranges from one to five years with the minimum amount of deposit being Rs 10,000 and thereafter in multiples of Rs 1,000.The rate of interest (for deposits up to Rs 5 crore) ranges from 8.75 per cent to 9.5 per cent for general public for a period ranging from one to five years.For senior citizens, the company is offering additional 0.1 per cent for deposits...

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IRDA issues norms for licensing banks as insurance brokers

Banks can now become licensed insurance brokers. The Insurance Regulatory and Development Authority has come up with regulations for licensing banks as insurance brokers.This move is expected to open up distribution possibilities for non-bank promoted insurance companies that hitherto had no tie-ups with banks under the banassurance model.Till date, banks were able to distribute insurance products only as a corporate agent (under a bancassurance model).The existing regulations stipulated that each bank can distribute only one life insurance,...

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Ratnakar Bank to acquire RBS assets

Private sector lender Ratnakar bank will acquire Royal bank of Scotland’s (RBS) Business Banking, Credit Cards and Mortgage business in India.The Kolhapur-based bank would also acquire over 1.2 lakh customers of RBS across the three business segments which form the part of the purchase deal. The RBS employees associated with these businesses are proposed to be absorbed by Ratnakar Bank.The deal size was not disclosed by the bank.The RBS assets sale was on the cards for the past few months with many banks in the race, including Yes Bank, IndusInd...

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Muthoot Capital Q1 net rises 21%

Muthoot Capital Services Ltd has registered a 21.30-per cent growth in net profit at Rs 5.98 crore in the first quarter of the current financial year, compared with Rs 4.93 crore in the corresponding period last year.Total income increased 56.83 per cent to Rs 34.77 crore (Rs 22.17 crore). Financial expenses increased to Rs 12.36 crore (Rs 7.19 crore), recording a rise of 71.91 per cent.Non-financial expenses increased to Rs 13.32 crore (Rs 7.42 crore), a rise of 79.51 per cent. Profit before tax grew 20.24 per cent to Rs 9.09 crore (Rs 7.56...

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Muthoot Capital Q1 net rises 21%

Muthoot Capital Services Ltd has registered a 21.30-per cent growth in net profit at Rs 5.98 crore in the first quarter of the current financial year, compared with Rs 4.93 crore in the corresponding period last year.Total income increased 56.83 per cent to Rs 34.77 crore (Rs 22.17 crore). Financial expenses increased to Rs 12.36 crore (Rs 7.19 crore), recording a rise of 71.91 per cent.Non-financial expenses increased to Rs 13.32 crore (Rs 7.42 crore), a rise of 79.51 per cent. Profit before tax grew 20.24 per cent to Rs 9.09 crore (Rs 7.56 crore).Total loan portfolio increased to Rs 508.68 crore (Rs 325.05 crore), recording a growth of 56.49 per cent. .Thomas George Muthoot, Managing Director,...

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Corporation Bank expo for SMEs

Corporation Bank will conduct an SME (small and medium enterprises) expo in Mangalore on August 10.A press release by the bank said here on Thursday that the expo is specially designed for the benefit of SMEs. Various stalls on SME products, retail products, deposits, etc. will be positioned at the expo. Added to this, various SME customers of the bank will also exhibit their products at the expo.Corporation Bank has launched ‘Corp SME Monsoon Bonanza’ on SME credit schemes offered by the bank for a limited period till September 30, it said.vinayak.aj@thehindu.co.inSource:...

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Muthoot Capital Q1 net rises 21%

Muthoot Capital Services Ltd has registered a 21.30-per cent growth in net profit at Rs 5.98 crore in the first quarter of the current financial year, compared with Rs 4.93 crore in the corresponding period last year.Total income increased 56.83 per cent to Rs 34.77 crore (Rs 22.17 crore). Financial expenses increased to Rs 12.36 crore (Rs 7.19 crore), recording a rise of 71.91 per cent.Non-financial expenses increased to Rs 13.32 crore (Rs 7.42 crore), a rise of 79.51 per cent. Profit before tax grew 20.24 per cent to Rs 9.09 crore (Rs 7.56 crore).Total loan portfolio increased to Rs 508.68 crore (Rs 325.05 crore), recording a growth of 56.49 per cent. .Thomas George Muthoot, Managing Director,...

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Muthoot Capital Q1 net rises 21%

Muthoot Capital Services Ltd has registered a 21.30-per cent growth in net profit at Rs 5.98 crore in the first quarter of the current financial year, compared with Rs 4.93 crore in the corresponding period last year.Total income increased 56.83 per cent to Rs 34.77 crore (Rs 22.17 crore). Financial expenses increased to Rs 12.36 crore (Rs 7.19 crore), recording a rise of 71.91 per cent.Non-financial expenses increased to Rs 13.32 crore (Rs 7.42 crore), a rise of 79.51 per cent. Profit before tax grew 20.24 per cent to Rs 9.09 crore (Rs 7.56 crore).Total loan portfolio increased to Rs 508.68 crore (Rs 325.05 crore), recording a growth of 56.49 per cent. .Thomas George Muthoot, Managing Director,...

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Muthoot Capital Q1 net rises 21%

Muthoot Capital Services Ltd has registered a 21.30-per cent growth in net profit at Rs 5.98 crore in the first quarter of the current financial year, compared with Rs 4.93 crore in the corresponding period last year.Total income increased 56.83 per cent to Rs 34.77 crore (Rs 22.17 crore). Financial expenses increased to Rs 12.36 crore (Rs 7.19 crore), recording a rise of 71.91 per cent.Non-financial expenses increased to Rs 13.32 crore (Rs 7.42 crore), a rise of 79.51 per cent. Profit before tax grew 20.24 per cent to Rs 9.09 crore (Rs 7.56...

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HDFC Bank opens rural branch in Bengal

HDFC Bank Ltd on Thursday announced the inauguration a 2-person rural branch in Narugram, a village in the Burdwan district of West Bengal. Burdwan is around 200 kms from Kolkata.According to a release issued by HDFC Bank, it will be the first bank to set up a branch in the previously unbanked village.The new branch will cater to the nearly 10,000 population in the village. With the new branch, HDFC will have 135 branches in the State.abhishek.l@thehindu.co.in Source: thehindubusinesslin...

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11 public sector bank GMs elevated as Executive Directors

In a significant move, the Centre has elevated as many as 11 General Managers (GMs) to the post of Executive Directors in various public sector banks.The orders for the promotion of these officials have been issued, sources in the Finance Ministry said.Rakesh Sethi, currently General Manager at Bank of India, has been appointed Executive Director, Union Bank of India.Animesh Chauhan, General Manager at Bank of Baroda, has been appointed Executive Director at the Central Bank of India. K.K. Sansi, General Manager at Oriental Bank of Commerce,...

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South Indian Bank cancer venture

Minister for Finance K.M. Mani inaugurated the ‘Cancer care for life enrolment’ programme through South Indian Bank branches.Cine actor Innocent launched the scheme at the function in which Salim Gangadharan, Regional Director, Reserve Bank, and Thomas Jacob, Director, South Indian Bank, offered felicitations.A one-time payment of Rs 500 will enable treatment benefit of Rs 50,000 from the Regional Cancer Centre here. Membership schemes are available up to Rs 10,000 for individual and family for treatment care of up to Rs 5 lakh.V.A. Joseph,...

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SBI not to hike lending rates

State Bank of India on Thursday said it is not considering an increase in lending rates even though some private lenders have already taken the step.“We are not (thinking of hiking lending rates) because we are witnessing a surge in deposits. We are getting a huge influx from liquid mutual funds. Last week, we got about Rs 10,000-15,000 crore of new money. We are sitting on a significant amount of extra cash,” said SBI Chairman Pratip Chaudhuri, on the sidelines of a customary luncheon hosted by Reserve Bank of India’s Governor D. Subbarao...

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RBI transfers Rs 33,000 cr surplus profit to Govt

The Government has received a bounty of Rs 33,010 crore from the Reserve Bank of India.This amount represents transfer of surplus profit by the RBI to the Government for the year ended June 30, 2013.In the previous year ended June 30, 2012, the RBI had transferred Rs 16,010 crore.The RBI’s central board approved the transfer of Rs 33,010 crore at its board meeting in Mumbai. The transfer of surplus profit could be reckoned as RBI Governor D. Subbarao’s parting gift to the Government.Subbarao, who has not missed an opportunity to emphasise the...

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HFCs allowed to raise public deposits of up to 10 years

Housing finance companies (HFCs) have been allowed to raise public deposits with tenure of up to 10 years. Till now, these firms were permitted to raise public deposits with maximum tenure of seven years.A decision to this effect was taken by the National Housing Bank (NHB), the regulator of housing finance companies.With this decision, these companies can now get access to longer-term funds, R.V. Verma, NHB Chairman and Managing Director, told Business Line.“This will help in better asset-liability management for HFCs, whose assets are growing....

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RBI imposes Rs 5.6 lakh fine on SBI for violation of norms

The Reserve Bank on Wednesday said it imposed a fine of about Rs 5.6 lakh on State Bank of India (SBI) for violation of currency chest norms."The Reserve Bank of India has imposed a penalty of Rs 5,62,555 on July 12, 2013 on SBI for violation of the terms of agreement with RBI for opening and maintaining currency chests," the central bank said in a statement.The penalty was levied in connection with deficiencies and lapses in the operation and maintenance of the currency chest at the Secunderabad branch of SBI, it said.Last month, the RBI had...

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Central Bank of India to open 23 more branches in Vizag zone

The Central Bank of India is in the expansion mode in the north coastal districts of Andhra Pradesh as 23 more branches will be added during the current financial year, according to N.K Balakrishnan, the Field General Manager in charge of Karnataka and Andhra Pradesh, Central Bank of India. The Visakhapatnam zone covers the five districts - Srikakulam, Vizianagaram, Visakhapatnam, East Godavari and West Godavari.Balakrishnan was speaking to reporters here on Wednesday after opening a retail asset branch of Central Bank in the city. He said...

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HDFC Bank raises benchmark lending rate by 0.2%

Country’s second largest private sector lender HDFC Bank has raised benchmark lending rate by 0.2 per cent, a move which will make auto, corporate and other loans linked with base rate or the minimum lending rate costlier.“The base rate of the bank has been increased to 9.80 per cent from 9.60 per cent with effect from August 3,” HDFC Bank Treasurer Ashish Parthasarthy told PTI.Base rate is dependent on cost of deposit which have gone up in the recent past both on account of RBI measures and increase in short term deposit rates, he said.On...

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Install surveillance cameras at ATM outlets

The RBI insists on banks on installing surveillance camera in all their ATM outlets as it helps resolve consumer complaints too apart from security issues.Sujatha Elizabeth Prasad, Chief General Manager and Banking Ombudsman, Chennai, said nearly a fourth of the total complaints received in 2012-13 were related to credit and debit cards and ATM issues, and most of them were resolved with the help of CCTV footage.Addressing media persons, she said with increased awareness even in rural areas, the number of complaints relating to deficiency in...

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Karur Vysya Bank Q1 profit down 17%

Private sector lender Karur Vysya Bank said its net profit in the first quarter of the current financial year fell by 17.6 per cent to Rs 120.30 crore.The bank had posted net profit of Rs 145.95 crore in the corresponding period (April-June) of 2012-13.Total income rose to Rs 1,429.46 crore during the period under review from Rs 1,109.81 crore a year-ago, the bank said in a filing to the BSE.Net non-performing assets (NPAs) or bad loans increased to 0.5 per cent from 0.38 per cent during the first quarter of FY13.Gross NPAs, however, decreased...

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Three arrested in South Indian Bank appointment scam

Three persons, including two women have been arrested in connection with an alleged extortion racket offering officers’ post in private sector South Indian Bank Ltd here.Police said the woman, who was the brain behind the racket, was at large after an Interpol alert in connection with another cheating caseShe had reportedly cheated several people into parting with lakhs of rupees offering appointments in the Railways and Cochin Dewaswom Board and cases had been registered against her on this count.She was arrested earlier in cheating cases...

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Federal Bank revises home, auto loan rates for festival season

Federal Bank revised lending rates in the home and car loans segment for the month of August and September.During this period, the bank will offer a uniform concessional interest rate of 10.25 per cent for all housing loans regardless of the amount and period of loans, the old private sector bank said in a statement.Car loan rates will be offered at a starting rate of 10.25 per cent. No processing fee will be levied on housing loans and car loans during the festival period.The revised rates will be offered from August 5 to September 30.At present,...

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Rakesh Sethi takes charge as Executive Director, Union Bank of India

Rakesh Sethi took charge as Executive Director at the Union Bank of India on August 5.He has earlier worked with Bank of India as a General Manager heading the National Banking position in Southern India.Sethi also headed the Retail Banking division and Marketing Department at the head office.Source: Financial Expres...

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State Bank to expand ‘point of sale’ terminals

State Bank of India is going all out to promote electronic transactions.India’s largest bank plans to deploy over 1.25 lakh point-of-sale (POS) terminals in the next 18 months at various merchant outlets and counters at branches across the country.POS terminals help customers carry out cashless transactions at merchant outlets by swiping credit/ debit cards on the POS machine.Further, the terminals also facilitate withdrawal of cash (up to a maximum of Rs 1,000 a day according to existing RBI guidelines) using debit cards at designated merchant...

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StanChart India H1 net up 45%

Standard Chartered India’s net profit before tax rose 45 per cent to $450 million in the six-month ended June 2013, driven by higher net interest margin and growth in trade and working capital loans to corporates.The foreign bank had posted a profit before tax of $311 million in the same period in the previous fiscal year.NIM increased to 3.7 per cent from 3.5 per cent due to lower cost of deposits, said Sunil Kaushal, Regional Chief Executive, India and South Asia, Standard Chartered.Wholesale banking income in India grew 20 per cent to $682...

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Karnataka Bank gets IDRBT awards

Karnataka Bank Ltd has won two ‘IDRBT Banking Technology Excellence’ awards.A press release by the bank said here on Monday that the bank has won ‘Best bank award for managing IT risks’ and ‘Best bank award for use of IT for business innovation’ for 2012-13 among ‘small banks’ category.D. Subba Rao, Governor of Reserve Bank of India, presented the awards to P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, at the Institute for Development and Research in Banking Technology (IDRBT) in Hyderabad recently.Quoting Bhat,...

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YES Bank: No headway in attempts to settle case out of court

YES Bank Managing Director and CEO Rana Kapoor’s efforts for a truce with co-promoter Madhu Kapur through an out-of-the-court settlement has not made much headway, said a person familiar with the development.On Saturday, Kapoor called for a ‘family’ meeting to resolve the two-month long court battle with Madhu Kapur, widow of co-founder Ashok Kapur and sister of Rana Kapoor’s wife.“There was no conclusion at the meeting. Though Rana Kapoor came with the intent to resolve the dispute, he did not agree to recognise our joint right to nominate...

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At a time when commercial banks and Regional Rural Banks are in consolidation mode, splitting a State cooperative bank due to political reasons will make it weak, Prakash Bakshi, Nabard Chairman, said.Speaking at an event hosted by Andhra Pradesh State Cooperative Bank Ltd (APCOB), he said bank consolidation and merger of Regional Rural Banks are being done to bring their numbers down from 196 to 61. Talks are also on for consolidating some of the large commercial banks.“Due to political reasons overnight if we put a dividing line administratively...

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Former Vijaya Bank CMD passes away

B.B. Shetty (77), former Chairman and Managing Director of Vijaya Bank, died in Mangalore in the early hours of Saturday.He had joined Vijaya Bank in 1975 as Manager and was elevated to the post of General Manager in 1984.In 1989, he was appointed as an Executive Director of Indian Bank. He was the Chairman and Managing Director of Vijaya Bank from July 1, 1992 to January 31, 1996. Source: Financial Expres...

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RBI approves reforms in primary co-ops

The Reserve Bank of India (RBI) has accepted the recommendations of an expert committee on primary agricultural cooperatives to ring in far-reaching reforms in the three-tier short-term cooperative credit structure.Assets and liabilities of primary cooperatives will now stand transferred to central/state cooperative banks.In States where the central/state cooperative banks are fully computerised and on core banking systems, primary cooperatives will function as their business correspondents.A circular from the head office of National Bank for...

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Canara Bank considering takeover of Amanath bank

Canara Bank is conducting “due diligence” of the beleaguered Amanath Cooperative Bank, considering a possible takeover, said R.K. Dubey, chairman and managing director of Canara Bank on Saturday.Speaking on the sidelines of a media conference convened to announce the bank’s financial results, Mr. Dubey said, “The due diligence process is expected to be completed in 15 to 20 days.”Asked if Canara Bank is under pressure to take over the cooperative institution, Mr. Dubey said, “We are aware of its problems, but somebody has to bail it out.”Asked...

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Canara Bank Q1 profits rise 2.17% to Rs 792.07 cr

Canara Bank, with higher provisioning and slippages in large and mid corporate portfolio, has posted 2.17 per cent higher profits to Rs 792.07 crore for the first-quarter of fiscal 2013-14 compared with Rs 775.24 crore same period of the previous year.Its total income for the quarter up 14.64 per cent to Rs 10,507.88 crore compared with Rs 9,165.47 crore same period last year, while EPS stood at Rs 17.88 (Rs 17.50).R.K. Dubey, Chairman and Managing Director, told reporters here “Bank’s profits are low due to higher provisioning and slippages...

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Karnataka Bank to focus on credit monitoring

The Managing Director of Karnataka Bank has urged his regional heads to focus on qualitative growth through effective credit monitoring.Addressing the review conference of regional heads of the bank here on Saturday, P. Jayarama Bhat, Managing Director and Chief Executive Officer of Karnataka Bank Ltd, said that achieving business growth and balancing it with quality in the present subdued and uncertain macro-economic conditions is a daunting task for banks.This calls for greater efforts at all levels to ensure progressive business growth over...

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Oriental Bank net profit down 9.7% in Q1

Oriental Bank of Commerce (OBC) has sought capital support of Rs 1,600 crore from the Centre to fund its business growth, S.L.Bansal, Chairman and Managing Director, said.The bank expects this fund infusion out of the Rs 14,000 crore allocated in this year’s Budget for capital infusion in various public sector banks.The previous occasion the Government infused capital in OBC was in March 2011 and the amount involved was Rs 1,740 crore, Bansal said.OBC on Saturday reported a 9.7 per cent decline in net profit for the first quarter ended June...

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