IndusInd Bank may raise $300 million from overseas investors

IndusInd Bank, the fourth biggest private sector lender, may raise as much as $300 million from overseas investors, exploiting the Reserve Bank of India's window of attractive swap options.The easing of rates in the dollar market after the Federal Reserve made a U-turn on tapering of bond purchases earlier this month, has made borrowings in overseas market attractive.Furthermore, the flexibility to raise even one-year funds to avail the swap options has made banks believe that the risk is lower as a minimum three-year borrowing as stipulated...

Read more »

Raghuram Rajan awarded Deutsche Bank Prize

The Reserve Bank of India Governor, Raghuram G. Rajan, has been awarded the Fifth Deutsche Bank Prize for Financial Economics 2013, in recognition of his ground-breaking research work which influenced financial and macro-economic policies around the world.The academic prize is sponsored by the Deutsche Bank Donation Fund and carries an endowment of euro 50,000. The Centre for Financial Studies (CFS) awards the prize bi-annually in partnership with Goethe University Frankfurt.Presenting the prize to Rajan, Deutsche Bank co-chairman Juergen Fitschen...

Read more »

Insurers can invest in India Infra debt NCD issue: IRDA

Insurers can invest in the Rs 500-crore non-convertible debenture (NCD) issue of India Infradebt Ltd.The Insurance Regulatory and Development Authority (IRDA) on Thursday said this issue could be reckoned as an investment in the infrastructure sector.The decision of the regulator came after an application by India Infradebt seeking approval of the former to recognise the NCD issue as investment in the infra sector.IRDA, in the amendment to the IRDA (Investment) Regulation, 2000, notified in February this year, stipulated that investments in...

Read more »

Vijaya Bank opens 10 branches in Mandya

As a step to strengthen financial inclusion (FI) in Mandya district, Vijaya Bank has opened 10 FI branches by upgrading the ultra small branches.Vijaya Bank has been active in FI, especially in direct benefit transfer and electronic benefit transfer programmes of the Centre. The bank has so far covered 3,319 villages in the country under the above programmes through 330 rural brick-and-mortar branches and 669 business correspondent and ultra small branches.Speaking at the financial inclusion outreach programme organised by Vijaya Bank in Adichunchanagiri...

Read more »

Ramachandra Rao reappointed MD & CEO of SKS Micro

The board of directors of SKS Microfinance reappointed M. Ramachandra Rao as the Managing Director and Chief Executive Officer for a further period of five years, the company said in a notice to the BSE.The appointment, which is effective from October 4, 2013, is subject to review after three years.The market is agog with speculation that Vikram Akula, the founder and ex-chairman of SKS Microfinance, would stage a comeback with the help of five mutual benefit trusts.In response to SKS Trust Advisors Pvt Ltd and five mutual benefit trusts’ bid...

Read more »

ICICI Bank Doha branch licence upgraded

The licence of ICICI Bank’s Doha branch has been upgraded to Category I by the Qatar Financial Centre Regulatory Authority (QFCRA).With the upgraded licence, the branch, which has been operating since 2007, can now accept deposits and provide credit to business customers as per the QFCRA rules.Treasury and Forex related activities are also permissible under the new licence, the bank said in a statement.The above services are in addition to arranging of deals in investment for private banking clients which is currently offered under the Category...

Read more »

Circular on primary cooperatives was no directive, says Nabard

Decision on primary agricultural cooperatives functioning as business correspondents will be taken by cooperative banks, the State governments, primary societies themselves and stakeholders.Neither a related Reserve Bank ‘permission’ nor a circular from National Bank for Agriculture and Rural Development (Nabard) need be viewed as a ‘directive’ in this context. NEW OPPORTUNITY Cooperative banks and primary societies should instead see the circular as an opportunity, according to latest Nabard circular dated September 6.The circular is clarificatory...

Read more »

IRDA slaps fine on Punjab & Sind Bank

The Insurance Regulatory and Development Authority (IRDA) has imposed Rs 5 lakh penalty on Punjab & Sind Bank for violating the norms for corporate agencies.In an order, the regulator said that the bank has received payments from Aviva Life Insurance Company Ltd as its corporate agent over and above the permissible level of commission in the form of rent for infrastructure and advertisement and publicity expenses, among others.This was in violation of the regulation and hence the penalty was imposed, the order said.naga.gunturi@thehindu.co.in...

Read more »

HDFC Bank raises rate on credit cards amid slump

HDFC Bank will charge 3.25% interest rate on credit cards from October, up from the current 3.05% and 3.15%, besides going slow on sourcing new customers in a tough macroeconomic environment."On certain cards, we were charging lower interest rates than the rest of the industry. Hence we have brought the rates on a par with the industry," said a senior official of HDFC Bank, India's leading issuer of credit cards and the country's second-largest private sector bank.The bank has reduced its monthly sourcing of new customers from a peak of 100,000...

Read more »

Citi raises 2014 Brent price outlook on supply worries

Citi Research raised its 2014 Brent price forecast to $108 per barrel from $99, citing the geopolitical turmoil in the Middle East and North Africa.The research division of Citigroup said the geopolitics of the region will always matter for oil as the region is the source of 40 per cent of global oil supplies."Despite the bearishness of new crude capacity coming online and continued US supply growth, Citi expects the deteriorating state of much of the Middle East and the persistence of current supply disruptions to keep prices supported," Citi...

Read more »

RBI: Will take action including OMOs to ensure liquidity

The Reserve Bank of India on Wednesday assured the markets that it will take actions, including open market operations, to ensure adequate liquidity support in the system.The central bank's assurance follows hardening of yields on government securities after governor Raghuram Rajan increased the repo rate, or the rate at which banks borrow from the RBI, by 25 basis points on Friday."Liquidity conditions have been tightening as reflected in the hardening of yields in the government securities market due to uncertainties around the government...

Read more »

Lakshmi Vilas Bank hikes deposit rates by 50 bps

Lakshmi Vilas Bank has increased interest rates on retail term deposits in four maturity slabs by up to 50 basis points.The old generation private sector bank has upped the interest rate on 1 year deposits by 50 basis points to 10 per cent from 9.50 per cent earlier. One basis point is equal to one-hundredth of a percentage point.Deposits above one year but less than two years will earn 9.50 per cent interest against 9.25 per cent earlier, the bank said in a statement.The new interest rate on deposits in the two years to less than three years...

Read more »

SBI eyes 22% growth in home loans in Bangalore

State Bank of India (SBI) Bangalore Circle plans to grow its home loan portfolio by about 22 per cent to Rs 2,200 crore this fiscal.“Looking at the potential, we have taken a slew of initiatives in the housing sector, which continues to attract lot of interest in Bangalore. The city is next to Mumbai and Delhi’s NCR region in terms of volume,” said Ashwini Mehra, Chief General Manager of SBI Bangalore Circle.To achieve the Rs 2,200-crore target, the bank has strengthened its processing centre and is planning to add a few more in Bangalore.“After...

Read more »

Muthoot NCDs oversubscribed; gets offers worth Rs 325 cr

Leading gold finance company Muthoot Finance said its non-convertible debenture (NCD) issue has been oversubscribed by 1.084 times.The issue has received total subscription of Rs 325.20 crore, Muthoot Finance said in a statement.The company came out with NCD issue earlier this month worth Rs 150 crore with an option to retain over-subscription up to Rs 150 crore, aggregating to Rs 300 crore.It said the funds raised through this issue will be utilised by for various financing activities including lending and investments, to repay existing loans...

Read more »

Oriental Bank hikes rates of select NRE deposits

Oriental Bank of Commerce (OBC) has hiked the interest rate on certain non-resident external (NRE) deposits with effect from Monday.Term deposits of less than Rs 1 crore with maturity of 3-5 years will now earn 9.25 per cent per annum — 50 basis points higher than the earlier 8.75 per cent.OBC is offering higher interest rate in the 3-5 year bucket to attract long-term funds from NRIs, V. Kannan, Executive Director, OBC, told Business Line.The Reserve Bank of India had allowed banks to offer differential interest rates to NRIs and also at...

Read more »

ICICI Bank launches new Facebook app Pockets

ICICI Bank has launched a new Facebook app that will enable its customers to transact directly from the social networking site.Primarily targeted at young customers, the new app 'Pockets' will enable customers of the bank to transfer money, recharge mobile phones and book movie tickets from their Facebook pages.There will be no additional charge for using the application, the bank said.The "split and share" app on the platform will allow customers to split and track group expenses and share them with friends on Facebook. The app also gives...

Read more »

RBI now against 0% EMIs for consumer goods, banks withdraw finance schemes; festive sales likely to be hit

Planning to buy a phone or a television during the upcoming festive season? Don't bet on paying off the bill in interest-free instalments. These schemes are being withdrawn as the Reserve Bank has frowned on the practice of banks tempting consumers to make big-ticket purchases by offering to break up credit card payments into EMIs.RBI feels consumers have been fooled by zero per cent or discounted interest rate schemes into believing that bank funding comes for free, and wants them stopped. Consumer durable manufacturers offer the zero per...

Read more »

Moody’s lowers SBI’s debt rating

Moody’s Investors Service has downgraded the senior unsecured debt and local currency deposit ratings of State Bank of India (SBI).According to Moody’s, SBI’s new rating for both the debt as well as deposit is ‘Baa3’ against ‘Baa2’ earlier. The new ratings are on a par with the Government of India’s foreign currency bond rating. Senior unsecured debt means these securities have priority ahead of all other unsecured debt if a bank/company goes out of business.Moody’s decision to lower SBI’s senior unsecured debt rating is a reflection of the...

Read more »

Vijaya Bank FI Outreach

Dr K. C. Chakrabarty, Deputy Governor of Reserve Bank of India (RBI), will inaugurate Vijaya Bank’s Financial Inclusion Outreach Programme at 10 a.m. on September 24 at Adichunchanagiri in Mandya district.His Holiness Sri Nirmalanandanatha Swamiji, Mathadhipathi of Adichunchanagiri Mahasamsthana Math, will be the chief guest. Source: thehindubusinesslin...

Read more »

Canara Bank rolls out new home loan schemes for NRIs, HNIs

Canara Bank has launched two housing loan schemes targeting Non-Resident Indians and high net worth individuals (HNIs) in the country.R. K. Dubey, Chairman and Managing Director of the bank, launched the two schemes here on Monday.Dubey said demand for dwelling units from NRIs is on the rise and depreciation of the rupee vis-à-vis the US dollar has prompted them to invest more in the housing sector.Also, demand from HNIs for large housing loans has increased, he added.For NRIs, Canara Bank will offer home loans of up to Rs 30 lakh at the base...

Read more »

SKS Micro ropes in Jack Trout for re-branding exercise

Encouraged by the turnaround in the last three quarters, SKS Microfinance Ltd has decided on a brand makeover. For this, the Hyderabad-based microfinance major has signed up global marketing strategist Jack Trout, president of Trout & Partners, to help in re-branding and repositioning its operations.Jack Trout is not only the originator of important concepts in marketing strategy but also the author/co-author of many best-sellers such as Positioning: The Battle for Your Mind and Repositioning: Marketing In an Era of Competition, Change...

Read more »

IDBI Bank on bad loan recovery drive

IDBI Bank wants its managers — at the zonal, regional and branch levels — to focus their energies on making recoveries from the top 20 bad loan accounts in their jurisdiction.What this means is that the bank does not want its officials to spread themselves too thin by seeking to make recovery from all bad loan accounts at the same time.To clean up its books, the public sector bank has launched a special ‘Own Your NPA’ (non-performing asset) campaign so that officials give it all they’ve got for faster resolution of bad debts.According to IDBI...

Read more »

Bank of Baroda to grow by 18 per cent: CMD Mundra

Bank of Baroda, India's second largest lender, is expected to grow in the current year by 17 to 18 per cent as against the industry standard of 14 to 15 per cent, its top official said here today.S S Mundra, Chairman and Managing Director of the bank said the growth of banks depends on the GDP growth rate, told PTI at the Bank of Baroda's branch in Park Avenue, Manhattan, New York.The growth story will be different if the GDP is at eight to nine per cent than the present five per cent.However, Bank of Baroda has been growing steadily at two to...

Read more »

SEBI sets terms for public offer exemption for NBFCs

Non-banking financial companies will be exempt from making a public offer (leading to a listing on the exchanges) only if they prove that that the securities offered to over 50 entities are subscribed to only by the entities, SEBI has ruled.This is to ensure that the public does not subscribe to the offer. The order also applies to public finance institutions.The Companies Act specifies that any offer of securities made to over 50 persons automatically triggers a public offer and listing.SEBI passed an ex-parte interim order against Alchemist...

Read more »

SBI opens branch in Moghalpura

State Bank of India has opened a new branch at Moghalpura today. It aims to cater to the growing banking and financial needs of retail customers and SME units in the old city of Hyderabad. The branch was inaugurated by C. R. Sasikumar, Chief General Manager. Speaking on the occasion, he said the branch will provide services and products to clientele in personal and SME segments.  It will offer loan products at cheaper interest rates like car, housing and education. He emphasised that the branch would also provide ‘one stop’ investment/retirement/payment...

Read more »

Canara Bank not to hike rates for now

Canara Bank is not looking to increase its lending or deposit rates for now. The RBI had hiked its repo rate — rate at which RBI lends to commercial banks — by 25 basis points on Friday.“There is no proposal to hike the base rate”, R. K. Dubey, Chairman and Managing Director, Canara Bank told Business Line here on Saturday. Base rate is the rate below which a bank cannot lend. Canara Bank’s base rate is currently at 9.95 per cent. It was brought down from 10.25 per cent to 9.95 per cent in July.Dubey was in the capital for the inauguration...

Read more »