UCO Bank launches ‘Veer Shakti’

Kolkata-based UCO Bank has launched a special savings account scheme for in-service and retired personnel of the Indian Armed Forces and paramilitary force.The scheme, called ‘UCO Veer Shakti’, includes facilities such as zero balance and overdraft. The savings account scheme was launched on August 14.abhishek.l@thehindu.co.in Source: thehindubusinesslin...

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Axis Bank sheds over 9% on MSCI omission, RBI curb

Shares of Axis Bank on Friday plummeted by over 9 per cent after the MSCI said it would exclude the bank from its standard and large cap indices, and the RBI restricting foreign institutional investors from purchasing shares in the bank.The bank scrip fell 8.69 per cent to Rs 1,050 and closed at Rs 1,055.40, down 8.23 per cent on the BSE.At the NSE, it tumbled 9.36 per cent to Rs 1,042.05.Led by the massive sell—off, the market value of the bank scrip slipped Rs 4,426 crore to Rs 49,494 crore.“Axis Bank fell close to 9 per cent on MSCI exclusion...

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Andhra Bank raises base rate by 0.25%

Public sector lender Andhra Bank announced an increase of 0.25 per cent (25 basis points) in its base rate effective from Monday next week.The base rate has been increased to 10.25 per cent from 10 per cent, while BPLR has been raised to 14.50 per cent from 14.25 per cent, the bank said in a filing to the BSE.Both the revised rates will come to effect from Monday, August 19, it said.Earlier, Yes Bank and HDFC Bank have increased their base rates after the status quo monetary policy review of RBI last month.The hike in base rate or the minimum...

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Bank of Baroda seeks Rs 1,800-cr capital infusion from Govt

Bank of Baroda (BoB) has sought Rs 1,800-crore capital infusion from the Government for the current fiscal (2013-14).The Government has a stake of 55.4 per cent in BoB, which is currently the third largest public sector lender in the country.“We have sought a capital infusion of Rs 1,800 crore. It is likely to be through preference shares,” S.S. Mundra, Chairman and Managing Director, BoB, told newspersons on the sidelines of the Federation of Indian Chambers of Commerce and Industry (FICCI) Banking Conclave.Other available options for capital...

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PNB raises NRI deposits rates by 1%

Punjab National Bank (PNB) raised interest rates on NRI deposits of over 3 years by 1 per cent, days after the Reserve Bank deregulated interest rates on such deposits.The increased interest rates would be applicable on fixed deposits Foreign Currency Non—Resident Bank [FCNR (B)] by NRI in the US dollar, pounds, euro, Japanese yen, Canadian dollar and Australian dollar.The new rates would be applicable from close of the business on August 14, PNB said in a statement.The fixed deposits between 3-4 years in US dollar would attract 4.78 per cent...

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UCO Bank scheme for Armed Forces

On the eve of Independence Day, UCO Bank launched an exclusive product for the Indian Armed Forces, including paramilitary forces.The product, meant for in-service as also retired armed personnel, will offer a zero-balance savings account with overdraft facility. Source: thehindubusinesslin...

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Bank of India plans to open 50 all-women branches

The Bank of India plans to open 50 all-women branches — one in each of its 50 zones — to facilitate the empowerment of women, according to Vijayalakshmi R. Iyer, Chairperson and Managing Director of the bank.She was speaking here on Friday after inaugurating an all-women branch at Seethammadhara in the Visakhapatnam zone.“The idea, of course, behind opening such branches, is to put women at ease and encourage them to transact with the bank. These branches will function like all other branches, but with more emphasis on financing schemes beneficial...

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Moody’s downgrades BoB, Canara Bank, PNB

Slower economic growth, deteriorating asset quality and declining margins have prompted Moody’s Investors Service to downgrade the ratings and credit assessments of three major public sector banks — Bank of Baroda, Canara Bank and Punjab National Bank.The global credit rating agency also changed the financial strength ratings of Union Bank of India to negative.“The downgrades for Bank of Baroda, Canara Bank and Punjab National Bank, and the negative outlook to Union Bank of India primarily reflect the challenges of the current macroeconomic environment, which have been exacerbated by the depreciating rupee and high levels of inflation,” Moody’s said.According to the rating agency, the Reserve...

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SBI suggests setting up bourse for spectrum trading

State Bank of India has mooted the idea of setting up a spectrum exchange where operators will be able to trade radio frequencies.SBI has said that the exchange can also be utilised by the Government for release of additional spectrum as is the case in offers of sale for equity shares.In a communication to the telecom regulator, SBI said, “The Government should consider permitting trading of spectrum that has been granted by way of auction at a market determined price (i.e. liberalised spectrum) on a common trading platform. The trading can...

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Corporation Bank celebrates Independence Day

Corporation Bank celebrated 67th Independence Day at its corporate office in Mangalore on Thursday. B.K. Srivastav, Executive Director of the bank, unfurled the National Flag in the presence of executives and employees of the bank.Speaking on the occasion, he said: “As bankers our effort should be to provide banking and financial services to every section of society, particularly in unbanked and rural areas of the country.” On the occasion, Srivastav also inaugurated a hall — ‘Annapoorna’ — at the corporate office.Source: thehindubusinessl...

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More measures needed to overcome BoP challenges: HSBC

More measures from RBI and Government are needed to overcome the balance of payment challenges and rupee depreciation, says a report by HSBC.To contain the sharp depreciation in the rupee, which has plunged 13 per cent since May, and contain the current account deficit, the Reserve Bank of India resorted to currency stabilisation measures and the Government took steps such as making gold imports costlier.Moreover, a new set of measures focusing on curbing oil, gold and non-essential imports and opening up external fund raising were taken. The...

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IOB on network expansion spree

Indian Overseas Bank is aggressively expanding its network. The bank has added nearly 1,000 branches to its network in the last three years.The 3,000th branch of the bank is to be inaugurated on August 17 at Vaniankudi by Union Finance Minister P. Chidambaram. This is to be followed by another at Kothakottai in Pudukottai District on August 18.IOB, according to its Chairman and Managing Director Narendra, has risen to become the seventh largest bank in the country. Source: thehindubusinesslin...

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United Bank adds more facilities

United Bank of India has inaugurated a number of specialised banking counters and an e-lounge at its headquarters in the city.The specialised banking counters would help in having centralised account opening facilities, payment of taxes and other citizen centric services. It will also have e-lounge facilities that include free Internet for online banking.The facilities were inaugurated by the West Bengal Governor, M.K. Narayanan. Source: thehindubusinesslin...

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LIC Housing Finance Q1 profit up 36% at Rs 310 cr

LIC Housing Finance, a subsidiary of LIC, posted 36 per cent increase in net profit at Rs 310.50 crore for the first quarter ended June 30, 2013.The company had posted net profit of Rs 227.75 crore in the April-June quarter of 2012-13 fiscal, LIC Housing Finance said in a filing on the BSE.The company’s Q1, 2013-14, income from operations rose by 23 per cent to Rs 2,149 crore, from Rs 1,767.3 crore in the year-ago period, it said.The net interest margin of improved to 2.30 per cent, as against 2.18 per cent for the quarter ended June 2012.Gross...

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IDBI, Oriental Bank raise deposit rates

State-run lenders IDBI Bank and Oriental Bank of Commerce (OBC)  hiked deposit rates by up to 1.50 per cent in select maturities on Wednesday.A hike in the deposit rate is generally seen as precursor to upping the lending rate.IDBI Bank, which also modified its maturity offering, will now pay 8.50 per cent for a deposit of 46 days to 200 days, which is higher than the earlier rate of 7 per cent for the 46—90 days basket and 7.25 per cent for the 91 days to less than six months basket, it said in a statement. The bank also hiked its interest...

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Corporation Bank to open 9 loan centres for SMEs

Corporation Bank will open nine more SME (small and medium enterprise) loan centres by the end of the current financial year.B. K. Srivastav, Executive Director of the bank, said the bank currently has 16 SME loan centres across the country. The aim, he said, is to take the total number of such centres to 25 by March 2014.The bank is expecting not less than 30 per cent growth from these SME loan centres during the fiscal, he added.V.S. Kartikeyan, General Manager, said that the bank is expecting Rs 250 crore of business from the MSME sector...

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Publishing photographs of defaulters in newspapers illegal: Kerala High Court

The Kerala High Court has held as arbitrary and illegal the decision of the State Bank of India to publish the photographs of loan defaulters in newspapers.Allowing writ petitions filed by two defaulters against the SBI notice, the court on Tuesday observed that the threat held out by banks to publish the photographs of defaulters in newspapers lacked legislative sanction.Justice V. Chitambaresh said: “The practice of exhibiting a photograph of a person and shamming him in public for the sin of being in an impecunious condition cannot be encouraged...

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Need for SLR, CRR to come down further: RBI

There was 'perhaps' need for further reduction in reserves set aside by banks through cash reserve ratio or statutory liquidity ratio, said the Reserve Bank of India Governor, Duvvuri Subbarao, said at a banking conference organised by FICCI in Mumbai.The cash reserve ratio, or the slice of bank deposits parked with the RBI, stands at a record low of 4 per cent. Meanwhile, SLR, which includes securities such as government bonds, stands at 23 per cent.Last month, the RBI tightened monetary conditions by raising short-term interest rates and...

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ICICI Bank to sell Mumbai's Prabhadevi property for 100 crore

ICICI Bank is set to sell one of its residential buildings in central Mumbai's Prabhadevi for about 100 crore, in line with the strategy of India's second-largest bank to offer its executives compensation for rent instead of accommodation as part of their annual package.The bank has already identified a prospective buyer and the deal is likely to be concluded within two weeks, persons familiar with the matter told ET.The six-storey building, known as ICICI Apartments, is spread over nearly half an acre on Cadell Road, barely 100 metres from...

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Muthoot Finance files draft paper for Rs 300 cr NCDs

Muthoot Finance has filed the draft prospectus with market regulator SEBI for public issuance of secured non—convertible debentures (NCDs) of up to Rs 300 crore.The NCD issue aims at aggregating up to Rs 150 crore with an option to retain over—subscription of up to Rs 150 crore, as per draft prospectus filed with SEBI showed.“Public issue by our company of NCDs aggregates up to Rs 1,500 million with an option to retain over—subscription up to Rs 1,500 million for issuance of additional NCDs aggregating to a total of up to Rs 3,000 million,”...

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Kotak Bank ups base rate by 25 bps to 10%

Kotak Mahindra Bank increased its base rate or the minimum lending rate by 25 basis points to 10 per cent. This revision will be effective from August 13, 2013.All categories of loans (other than exceptions permitted by RBI) will henceforth be priced with reference to the revised base rate, the bank informed the Bombay Stock Exchange.After Yes bank and HDFC Bank, Kotak is the third bank to hike its lending rates after the Reserve Bank of India announced liquidity tightening measures last month.In July end, indicating a likely hike in the base...

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ICICI Bank opens 140 rural branches

ICICI Bank today announced the launch of 140 branches in the last one week as part of its financial inclusion plan to provide banking services in unbanked villages.Open six days a week, these banks will offer basic banking services such as farmer finance through Kisan Credit Card (KCC) and Agri-term Loan (ATL) for the cultivation and development of agricultural land, working capital and term loan requirements of business entities in rural and semi- urban areas, overdraft against fixed deposits.The branches are opened across the state of Punjab,...

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United Bank Q1 net skids 74%

United Bank of India net profit dropped 74 per cent to Rs 44.73 crore in the first quarter of 2013-14 from Rs 173.89 crore in the corresponding year-ago quarter.The total income stood at Rs 2,869 crore (Rs 2,499 crore), up 14.79 per cent year-on-year.Net interest margin was down to 2.28 per cent (3.05 per cent). The bank’s capital adequacy ratio dropped to 10.82 per cent (12.5 per cent).The bank on Monday said income from loans and advances grew to Rs 2463.74 crore from Rs 2283.81 crore in Q1 of FY13. Non-interest income moved up 88 per cent...

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Manappuram Finance net down 66.5%

Manappuram Finance Ltd recorded a net profit of Rs 52.87 crore in the first quarter of the current fiscal, down 66.5% from the Rs 157.77-crore profit posted in the corresponding period of the previous fiscal.V.P. Nandakumar, Managing Director and CEO, said this was a significant improvement over the Rs 141.43-crore loss incurred in the fourth quarter of FY2013.He said the performance during the quarter signals a return to normalcy after the turbulence of the past year. Going forward, the company intends to continue its thrust on consolidation...

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IRDA move to allow banks as insurance brokers hailed

Reliance Life Insurance Company has welcomed IRDA’s new regulations allowing banks to become licensed insurance brokers and sell products of multiple life insurance companies.This is an extremely progressive step taken by the Insurance Regulatory & Development Authority (IRDA) in the best interests of hundreds of millions of consumers across all strata of society, Anup Rao, CEO, RLIC, said in a statement today.These new regulations will lead to an open bancassurance architecture and will drive banks to align their interest with their customers...

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SBI net dips 14% as bad loans, provisioning rise

A jump in bad loans, provisioning for pension liabilities and a fall in the value of international investments pulled down State Bank of India’s profitability in the April-June quarter.India’s largest bank reported a 14 per cent drop in net profit to Rs 3,241 crore from Rs 3,752 crore in the year-ago period.In the reporting quarter, the bank saw a net incremental growth in bad loans (after taking into account cash recoveries, upgradation of loan and write-offs) of Rs 9,702 crore (Rs 7,480 crore in the year-ago period).Bad loans came mainly...

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Yes Bank case: Madhu Kapur to continue legal battle

Madhu Kapur, co-promoter in Yes Bank, will continue to pursue the legal battle against the bank seeking participatory rights in the nomination of directors on the bank’s board.Lawyers of Madhu Kapur, widow of Yes Bank co-founder Ashok Kapur, today replied to the Bombay High Court on the possibility of an out-of-court settlement of the over two-month-old legal family dispute.Madhu Kapur’s sister, Bindu Kapoor, is married to Yes Bank’s current CEO and Managing Director, Rana Kapoor.Madhu Kapur moved court in June seeking rights to nominate directors...

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Deutsche Bank aims to double India income

German lender Deutsche Bank plans to double its revenue from India operations by scaling up its transaction and retail banking business in the country. The bank had reported a 25% rise in yearly profits from India operations, helped by increased lending in its retail and wholesale businesses. Its net profit for the year ended March rose to Rs 1,033 crore, driven largely by a 78% growth in loans. During the year, Deutsche Bank increased its capital in India by over Rs 1,060 crore, the sixth infusion since 2007."We will significantly scale up...

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Syndicate Bank to open 100 branches in AP

Syndicate Bank will open hundred branches in the State by the end of this year including 10 in the twin cities, according to its Chairman and Managing Director Sudhir Kumar Jain.Speaking to newspersons here, Jain has said that his bank had 431 branches and 134 ATMs besides 251 ultra small branches in the State.“We have an ambitious plan of reaching a business of Rs 40,000 crore in this State from Rs 31,613 crore. We are also pioneers in linking of Aadhar numbers with bank accounts,’’ he said.Out of about 1.08 lakh beneficiaries, 97,816 accounts...

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Telangana formation hits SBI’s merger plans

The proposed creation of Telangana State has thrown a spanner in State Bank of India’s plans for merger of its largest associate, State Bank of Hyderabad, with itself.SBI Chairman Pratip Chaudhury had earlier indicated that a decision on merging one of its associate banks would be taken after July.“An internal committee to evaluate the possible candidate for merger has been appointed and it is expected to submit its report anytime now,” a top executive of SBI told Business Line.Top performerThe merger of State Bank of Hyderabad (SBH), which...

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Syndicate Bank eyes 16% credit growth this fiscal

Syndicate Bank is expecting credit to grow at 15-16 per cent this fiscal, and a net interest margin of about 2.80 per cent.“The credit growth situation is not very optimistic for banks. But we will be able to maintain this level of growth,” Sudhir Kumar Jain, Chairman and Managing Director, Syndicate Bank, told newspersons here.As there has been no demand from corporate sector for loans, the focus would be on the priority sector, micro, small and medium enterprises, and the mid-corporate and retail segments, he added.To improve the asset quality...

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Bank licence: RBI to set up panel for screening of applications

The Reserve Bank will soon set up a high-level panel of eminent experts from the banking and financial sector to screen applications of 26 aspirants for new banking licences.The High Level Advisory Committee (HLAC) will not have any members from the RBI but will comprise of eminent persons with experience in banking, financial sector and other relevant areas, sources said.It is expected that the member of this panel would be drawn from the other financial regulators like IIRDA, SEBI, PFRDA. Besides, some top officials from the government may...

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HSBC India profit dips in first half; customer accounts see over $500 m plunge

UK-based global banking giant HSBC has seen its first-half profit from India business falling to $ 414 million in 2013, amid a decline of over $ 500 million in customer accounts since the beginning of this year.According to the bank’s interim financial report, its customer accounts balance in India fell to $9.85 billion as on June 30, from $10.41 billion at the beginning of 2013.While the bank did not specify any reason for the decline in customer accounts, it said that the profits from India fell to $414 million in the first half of 2013,...

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