SKS Trusts to seek place on SKS Microfinance board

SKS Trusts will be formally asking for a berth on the board of SKS Microfinance Ltd soon as the largest shareholder. “The board has not responded favourably to our earlier request to nominate a board member, despite the fact that there are other nominees from shareholders with a lower percentage than the Trusts. We will request now again,” Biksham Gujja, Director of the Trustee of SKS Trusts, told Business Line on Thursday.On Tuesday, the Trusts, the original promoter of the SKS Microfinance Ltd, had become the largest shareholder in the company...

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Corp Bank to have more branches in Bihar, Jharkhand

Corporation Bank will open 20 new branches in Bihar and Jharkhand, according to Bibhas Kumar Srivastav, Executive Director of the bank.A bank release said here that Srivastav was speaking after inaugurating the branches at Phulwari Sharif and Maner in Patna district of Bihar on Friday.Srivastav said that the bank plans to increase its presence in Bihar and Jharkhand. The bank is planning network expansion in these two States further with 20 new branches slated for opening during the current fiscal. The bank recently opened its new branch at Bhaktiyarpur on August 31 and two new branches at Phulwari Sharif and Maner, he said.Bihar Minister for Law, Planning and Development Narendra Narayan...

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Corp Bank to have more branches in Bihar, Jharkhand

Corporation Bank will open 20 new branches in Bihar and Jharkhand, according to Bibhas Kumar Srivastav, Executive Director of the bank.A bank release said here that Srivastav was speaking after inaugurating the branches at Phulwari Sharif and Maner in Patna district of Bihar on Friday.Srivastav said that the bank plans to increase its presence in Bihar and Jharkhand. The bank is planning network expansion in these two States further with 20 new branches slated for opening during the current fiscal. The bank recently opened its new branch at Bhaktiyarpur on August 31 and two new branches at Phulwari Sharif and Maner, he said.Bihar Minister for Law, Planning and Development Narendra Narayan...

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Corp Bank to have more branches in Bihar, Jharkhand

Corporation Bank will open 20 new branches in Bihar and Jharkhand, according to Bibhas Kumar Srivastav, Executive Director of the bank.A bank release said here that Srivastav was speaking after inaugurating the branches at Phulwari Sharif and Maner in Patna district of Bihar on Friday.Srivastav said that the bank plans to increase its presence in Bihar and Jharkhand. The bank is planning network expansion in these two States further with 20 new branches slated for opening during the current fiscal. The bank recently opened its new branch at...

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Muthoot to set up first ATM next month

The Foreign Investment Promotion Board has cleared gold-loan company Muthoot Finance’s proposal to set up white-label ATMs in the country.Muthoot, which had received the RBI nod for the plan in June, is expected to set up its first batch of ATMs next month in one of the southern States. The company, which has also sought RBI’s permission to set up a bank, has plans to establish 9000 ATMs across the country in the next three years. The first 1000 would be set up in the next one year.A company press note said 65 per cent of the ATMs would be...

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Union Bank ups base rate to 10.25%

To protect its net interest margin, Union Bank of India has increased its base rate to 10.25 per cent from 10 per cent. The new rate is effective from September 6, said the bank in a statement.Base rate is the minimum interest rate below which banks cannot lend. The public sector bank recorded a lower net interest margin of 2.63 per cent in the April-June 2013 quarter against 3.01 per cent in the year-ago period. Source: thehindubusinesslin...

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Moody’s downgrades subdebt, junior subdebt ratings of 11 Indian banks

Global ratings agency Moody’s Investors Service has downgraded the subordinated debt (subdebt) and junior subordinated debt ratings of 11 Indian banks.“Moody’s removed one to two notches of the two to three notches systemic support uplift previously incorporated in the public sector banks’ subdebt and junior subdebt ratings, concluding a review started on June 3, 2013,” Moody’s said in a statement.The 11 banks are State Bank of India, Bank of Baroda, Bank of India, Canara Bank, IDBI Bank, Indian Overseas Bank, Syndicate Bank, Union Bank of...

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ICICI Bank takes banking to remote areas with ‘Branch on Wheels’

ICICI Bank, the country’s largest private sector bank, launched its ‘Branch on Wheels’ to offer basic banking services in remote areas which have so far been devoid of banking facilities.The mobile branch, which also has an ATM, will offer basic banking products and services such as savings accounts, loans, cash deposit/withdrawal, account balance enquiries, statement printing and funds transfer/DD/PO collection, among others, the bank said in a statement.The mobile branch will be operated at a specific time in pre-identified, unbanked villages...

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IRDA may allow savings-linked health plans

You may soon be able to build a savings corpus in your health insurance plan. To enhance the reach of health insurance as well as provide wider product choice to policyholders, the Insurance Regulatory and Development Authority (IRDA) is considering a proposal to allow general insurers to launch savings-linked health insurance products.Currently, savings-linked plans are only offered by life insurance companies in India. The proposed plan is expected to help policyholders choose an integrated product without shopping around the market for building...

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Banks need not get RBI nod for opening branches

The Reserve Bank of India will shortly issue a circular completely freeing bank branching for domestic scheduled commercial banks in every part of the country, according to Raghuram Rajan, Governor. No longer will a well-run scheduled domestic commercial bank have to approach the RBI for permission to open a branch, he said in his maiden press conference after taking charge as Governor.“We will, of course, require banks to fulfil certain inclusion criteria in underserved areas in proportion to their expansion in urban areas, and we will restrain...

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Corp Bank branch in Dadar

Corporation Bank opened its branch on Gokhale Road in Dadar, Mumbai, recently.A press statement by the bank said here that Amar Lal Daultani, Executive Director of the bank, inaugurated the branch.He said that since Dadar is in the heart of Mumbai and Corporation Bank wants to reach out to the hearts of Mumbaikars by giving best service to the customers.B.B. Tejappa, Circle General Manager of the bank, said the Mumbai Zone generates significant business.Paramasivam, General Manager, and Prakash Nayak, Deputy General Manager and Head of Mumbai...

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RBI says profit and loss accounts should exclude failed ATM transaction amounts

The Reserve Bank of India on Tuesday said failed ATM transaction amounts represent unclaimed balances and directed banks not to include them in their profit and loss accounts.The RBI said it was brought to its notice that some banks were transferring credit balances pending reconciliation due to failed cash retraction, sensor failure and technical or hardware errors to their profit and loss accounts.In various cases, such failed transactions represented excess cash in the ATMs, it added."Banks are advised that pending reconciliation or matching...

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LICHFL launches two new home loan schemes

LIC Housing Finance (LICHFL) today launched two new home loan schemes — Bhagyalaxmi Plus and New Fixed 10.Under Bhagyalaxmi Plus scheme, home loans will be given to those women who will be the sole owner or first owner to buy a property, at a fixed rate of interest of 10.35 per cent for loans up to Rs 75 lakh for the first two years, and floating rate thereafter, the company said in a press release.Moreover, borrowers would get a discount of 0.25 per cent throughout the loan term on conversion to floating rates.The ‘New Fixed 10’ scheme comes...

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Link home loans to stages of construction: RBI to banks

The Reserve Bank of India (RBI) today asked banks to link the disbursal of home loans to stages of construction to protect the interests of buyers and contain the fallout of “innovative” housing financing schemes.“In view of the higher risks associated with such lumpsum disbursal of sanctioned housing loans and customer suitability issues, banks are advised that disbursal of housing loans sanctioned to individuals should be closely linked to the stages of construction of the housing project/houses...,” an RBI notification said.Upfront disbursal...

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Karnataka Bank appoints Jairama Hande Senior GM

Karnataka Bank has appointed its General Manager P. Jairama Hande the new Senior General Manager.Hande joined the bank in 1976 and has worked in both the administrative and operational capacities, an official statement from the bank said here on Tuesday.Hande, who is also the Chief Financial Officer of the bank, is a law graduate and a Certified Associate of the Indian Institute of Bankers (CAIIB), the release said. Source: thehindubusinesslin...

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Raghuram Rajan to take over as RBI Governor on Thursday

Raghuram Rajan will take over as the RBI Governor on Thursday. He takes over at a time when the country is battling a rapid fall in the rupee, high inflation, low growth and burgeoning current account deficit.A former chief economist with the International Monetary Fund and economic advisor to the Finance Ministry, 50-year-old Rajan will take over a difficult assignment from Duvvuri Subbarao on his completing five years in Mint Road.Rajan has already said that he has no magic wand to face the challenge before the country but would deal with...

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SEBI chief in 5-man panel to decide new bank licences

The process for setting up a high-level advisory committee to screen the applications of the 26 new bank licence aspirants, such as the Tatas, Anil Ambani’s Reliance Group and India Post, has moved a step forward.RBI Governor D. Subbarao had zeroed in on five names that could form part of this panel, sources said. But, the final call on whether the names recommended by Subbarao will make the cut or not, rests with RBI Governor-designate Raghuram Rajan, who will assume charge on September 5.The five names recommended by Subbarao are SEBI Chairman...

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HDFC Bank launches rural financial literacy initiative in Gujarat

HDFC Bank Ltd on Monday launched its rural financial literacy initiative in Koteshwar village near here under the aegis of the Reserve Bank of India, becoming the first bank to translate curriculum into Gujarati language.Under the initiative, it will conduct literacy camps at 68 branches across 136 villages, reaching out to both adults and school children in the State. It complements HDFC Bank’s efforts to support inclusive growth and take formal banking services to the remote corners of India.Through this initiative, the bank will conduct...

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Bank of India offloads entire stake in MCX

Bank of India on Monday sold its 1.03 per cent stake in Multi Commodity Exchange of India Ltd (MCX) for over Rs 20 crore through the open market.Bank of India, which held 5.25 lakh shares, or 1.03 per cent, in MCX as of the June quarter, offloaded its entire stake in the commodity exchange, according to information available with the bourses.The shares were sold at an average price of Rs 392.6, valuing the transaction at Rs 20.61 crore, the data showed.MCX shares surged 5 per cent to close at Rs 391.55 on the BSE today.Last week, MCX Chairman...

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SBI acquires 23% more stake in Indonesian bank

State Bank of India has acquired 23 per cent more shares of Bank State Bank of India, Indonesia, (BSBII) in a recent deal with P.T. Ravindo Jaya.In a notice to the BSE, India’s largest bank said following the acquisition, it now has 99 per cent stake in the Indonesian Bank while 1 per cent stake is held by P.T. Ravindo Jaya. SBI, however, did not disclose the acquisition price. As on March-end 2013, SBI’s Indonesian banking subsidiary had 14 branches. Source: thehindubusinesslin...

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LIC on a drive to revive lapsed policies

The Life Insurance Corporation of India has launched a drive to revive 7.5 lakh lapsed policies.“We are also relaxing some of the norms for revival, including waiver of interest up to Rs 2,000,” A. K. Sahoo, Zonal Manager, South Central Zone of LIC, told newspersons here Monday.The drive will continue up to October 31, 2013. “We have sent letters to 7.5 lakh customers and expect them to respond positively,” he added.On the performance of LIC, which completed 57 years of service as on September 1, 2013, Sahoo said, even after competing for 13...

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Muthoot Finance NCD issue opens

Gold loan company Muthoot Finance opened a public issue of non-convertible debentures (NCDs) on Monday.The company plans to mop up Rs 150 crore, with an option to retain oversubscription for another Rs 150 crore, through the issue.The NCDs have a face value of Rs 1,000 each.The minimum application size is 10 NCDs. The issue will close on September 16. The NCDs will be listed on the BSE, a company press note said.There are ten investment options for the secured NCDs and one for the unsecured. They will have an effective yield of up to 12.55...

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Karnataka Bank ups NRE deposit rates

Karnataka Bank has raised interest rates on Non-resident External (Rupee) deposits by 50 basis points of three years to 10 years maturity with effect from September 2. The new rates are 9.50 per cent (9 per cent) for three years to five years maturity, and 9.25 per cent (8.75 per cent) for above five years to 10 years maturity. Source: thehindubusinesslin...

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Falling Re pushes up cost of raising funds: Exim Bank chief

The lack of direction in corporate investment strategies is leading to a rise in bad loans of banks, feels T.C.A. Ranganathan, Chairman and Managing Director, Export Import Bank of India.“There is something wrong, somewhere. It’s time for a complete internal reorientation (for the industry),” Ranganathan said while addressing a seminar on growth opportunities for the Indian banking industry organised by FICCI.According to him, there is a need for increasing production capacity and focussing on investment in research and development. Currently,...

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LIC's loss in PSU stake buy put at Rs 3,000 cr

Salvaging government’s disinvestment programme has cost state-owned LIC dearly as it has incurred notional loss of over Rs 3,000 crore on purchases of PSU equity through the OFS route since March 2012.The shares of the nine PSUs - ONGC, Hindustan Copper Ltd (HCL), NMDC, NTPC, Rashtriya Chemicals and Fertilizers (RCF), Nalco, SAIL, MMTC and National Fertilisers - in which LIC had purchased stake, are trading below their issue prices.While Life Insurance Corporation (LIC) has purchased shares worth about Rs 16,372 crore in the disinvestment programme...

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Melwyn Rego elevated to Deputy MD of IDBI Bank

Melwyn Rego has been appointed by the Government as Deputy Managing Director of IDBI Bank. He took charge on August 30. Prior to his elevation, Rego was Executive Director.With this appointment, IDBI Bank has two DMDs who are whole-time directors on the board.B. K. Batra is the senior-most DMD.According to reports, Batra is expected to be elevated as the chief of either a public sector bank or a financial institution. Source: thehindubusinesslin...

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