Andhra Bank recovers Rs200-cr bad loans

Andhra Bank has recovered about Rs200 crore non-performing assets (NPAs) in the last three months.“Both recovery and upgradation of stressed assets have been high during the current quarter,” CVR Rajendran, Chairman and Managing Director of Andhra Bank, told BusinessLine here.With this, the total recoveries for the bank stood at Rs2,200 crore. At the end of September 2014, the recovered amount was Rs2,000 crore.Slippages also highHowever, things are not entirely rosy. “Slippages have also been high,” Rajendran said. This is mainly on account...

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RBI expresses concern over restructured assets in banking sector

The extent of restructured assets in the banking sector, especially public sector banks (PSBs), is a cause of serious concern and an end to regulatory forbearance maybe the right step, according to the central bank.“An early end to regulatory forbearance may be the right step. In addition, governance reforms along the lines suggested by the P.J. Nayak Committee will build in inherent checks and balances on the risks and returns of the credit portfolio thereby leading to more informed risk taking,” RBI said in the Financial Stability report...

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PMJDY may be replicated in insurance, pension sector

Prime Minister’s Jan Dhan Yojna (PMJDY) is likely to be replicated in the insurance and pension sector to extend the financial services to the hinterland.“Given the low levels of penetration of insurance and pension, there is a case for subsequently extending or replicating a project on the lines of PMJDY, to include the provision of insurance and pension services for the common man,” RBI said in the Financial Stability Report released on Monday.At present, penetration of the insurance and pension in India is very low. Insurance penetration...

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More transparency needed in audit of big ticket CDR cases: RBI

There is a need for greater transparency to find out the economic impact and audit of big ticket CDR (corporate debt restructuring) cases, according to RBI.“With increased regulatory focus on segregating cases of wilful defaults and ensuring adequate equity participation of promoter(s) in the losses leading to defaults, there is a need for greater transparency in carrying out a net economic value impact assessment and audit of big ticket CDR cases,” RBI said in the Financial Stability Report released on Monday.There is also a need to review...

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Jan Dhan life cover: Banks, LIC told to make claim forms available on website

The Finance Ministry has asked banks and Life Insurance Corporation to make available claim forms on their websites for the Rs. 30,000 life cover promised under the Pradhan Mantri Jan Dhan Yojana (PMJDY).LIC has been asked to settle the claim within 15 days of the receipt of the claim form.This was conveyed to the banks at a video conference meeting held by Joint Secretary Anurag Jain with executive directors of public and private sector banks to review the progress of PMJDY.Till December 22, banks have opened 9.83 crore bank accounts under...

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ING Vysya staff demand job safety post merger, to strike on Jan 7

Employee unions of ING Vysya Bank demanded safeguarding of their interests post-merger with Kotak Bank and threatened to go on strike on January 7 —— the day on which the Bengaluru—headquartered lender will seek shareholders’ nod to approve the Rs. 15,000-crore merger deal.To ensure that interests of all the stakeholders are ’protected’, S A Sridhar from the ING Vysya Bank officers’ association said a “tripartite agreement” between Kotak Mahindra Bank (KMB), ING Vysya Bank, and employees and officers, be signed which will lay out all points...

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Clearly mention conditions, benefits of insurance products: IRDA

To help consumers guard against bogus claims being made by insurers, sector regulator IRDA has said the companies will have to clearly define conditions along with benefits and riders of products to customers.Insurance Regulatory and Development Authority (IRDA), in its revised draft regulations on consumer protection, has also said that insurance companies must place all the product information in public domain. The regulator has also sought comments from the public and all stakeholders on the draft regulations on or before January 19, 2015.“A...

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SLBC confirms 100% Jan Dhan coverage in Dakshina Kannada

The State-level bankers’ committee (SLBC) of Karnataka has permitted the lead bank of Dakshina Kannada district for confirmation of 100 per cent coverage of households under the Prime Minister’s Jan Dhan Yojana (PMJDY).This was revealed at the Dakshina Kannada district-level review committee meeting of bankers in Mangaluru on Tuesday.Amarnath Hegde, Chief Manager of the Lead Bank of the district, informed the meeting that the district-level PMJDY implementation committee in its meeting on November 7 had decided to send a proposal to the SLBC...

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YES Bank raises $200-mn loan from ADB

YES Bank has raised $200-million unsecured loan from the Asian Development Bank to finance working capital and investment loans for small farm households and rural women in self-help groups.Additionally, ADB will also provide a capacity development technical assistance grant of up to $1 million to YES Bank, the private sector bank said in a statement.The grant will be used by the private sector bank for capacity building, improving the financial literacy of women borrowers, and for leveraging the YES livelihood enhancement action programme,...

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Allahabad Bank gets nod to raise funds via QIP

Allahabad Bank obtained board approval for raising capital from various means including Qualified Institutional Placement (QIP).The board at its meeting held Monday have discussed and approved in principle the raising of capital of the bank through preferential or QIP issue, Allahabad Bank said in a statement.Funds would be raised in such a manner that the equity shareholding of the Government of India will not go below 52 per cent.The government holding in the Kolkata-based banks stood at 58.90 per cent at the end of September 2014.Keeping...

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RBI staff to join banking sector strike on Jan 7

Reserve Bank employees have decided to observe a strike on January 7, 2015, in solidarity with the cause of the United Forum of Bank Unions in the commercial banking sector.The All-India Reserve Bank Employees Association and the All-India Reserve Bank Workers’ Federation have urged the RBI Governor to intervene to bring peace in the banking sector, stating that the RBI cannot remain a mute spectator.The Association and Federation advised units to observe peaceful and organised action in all RBI offices and liaise with units of the United Forum...

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Violation of KYC norms: RBI slaps Rs 50 lakh penalty on ICICI Bank, Rs 25 lakh on Bank of Baroda

The Reserve Bank of India (RBI) on December 17 imposed penalties on ICICI Bank and Bank of Baroda for violating 'Know Your Customer' (KYC) as well as anti money-laundering norms (ALM). The central bank fined ICICI Bank Rs 50 lakh, BoB Rs 25 lakh, and cautioned State Bank of India, Axis Bank and State Bank of Patiala that they should review and comply with KYC norms.In a statement, RBI said, "Failure on the part of these banks (ICICI Bank and BoB) to take timely remedial measures had aggravated the seriousness of the contraventions and their...

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Vijaya Bank event at Pollachi

Vijaya Bank organised the Pradhan Mantri Jan Dhan Yojana programme at Pollachi. KR Shenoy, Executive Director of Vijaya Bank, distributed Rupay Cards and Pass Books to the beneficiaries. The programme was attended by over 200 beneficiaries and large number of people from nearby villages, said a Vijaya Bank statement. Shenoy explained various important features of the scheme to beneficiaries. A short film on Pradhan Mantri Jan Dhan Yojana Scheme in the local language was screened to create awareness. Source : Thehindubusinesslin...

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Diluting government stake is credit positive for banks: Moody’s

The Cabinet decision to allow private capital by diluting government stake in public sector banks is credit positive for undercapitalised banks, according to Moody’s Investor Service.“The ability to raise private capital that dilutes the government’s stake is credit positive for the undercapitalised public sector banks because government resources to recapitalise banks are limited,” Moody’s said in a statement.On December 10, the Cabinet said that it would allow government ownership in public sector banks to fall to 52 per cent as banks raise...

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IRDA slaps Rs. 31 lakh penalty on Canara HSBC Oriental Life Insurance

The Insurance Regulatory and Development Authority (IRDA) has imposed Rs. 31 lakh penalty on Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd for setting policies in favour of master policy holders under non-employee/employer groups.``The practice of issuing claim payments in favour of Master Policy Holders (Self Help Groups in this case) but not in favour of the beneficiary of the group insurance policy has a potential of jeopardising the financial interests of the dependents of the deceased policyholder,’’ the regulator said...

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Syndicate Bank launches new scheme for women entrepreneurs

Syndicate Bank is targeting to reach out to over 20,000 women entrpreneurs across the country through a new scheme 'SyndMahilaShakti', an initiative for women empowerment.The bank is observing 'SyndMahilaShakthi' week currently till December 20 across the country and aims to extend loans to over 20,000 women entrepreneurs to take up various self-employment activities under micro, small and medium enterprises, a press release said.Since December 15, the bank has sanctioned loans worth Rs. 68 crore to about 5,415 women entrepreneurs till Wednesday,...

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Dhanlaxmi Bank push to recover bad loans showing results: MD

Dhanlaxmi Bank, named in the Rajya Sabha as having the highest NPA (non-performing assets) ratio among private sector banks (at 7.27 per cent), has taken strong measures to tackle the problem.These include identifying wilful defaulters, enforcing the SARFAESI Act (which allows banks to auction properties of loan defaulters), one-time settlements, sale of assets to Asset Reconstruction Companies and filing cases with the Police and Services Fraud and Investigation Department of India. Seeking helpPG Jayakumar, Managing Director and CEO, told...

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HDFC Bank launches mobile branch in Varanasi

In Prime Minister Narendra Modi's Lok Sabha constituency, country's second-largest private lender, HDFC Bank today launched mobile banking initiative to offer round-the-clock banking facility."Part of the bank's digital banking offering... 'Bank Aap Ki Muththi Mein' is technology agnostic and runs on all mobile devices popular technology platforms support," said Nitin Chugh, Head-Digital Banking, HDFC Bank.'Bank Aap Ki Muththi Mein' works on both smartphones as well as the basic phones that support Internet browsing.It is another offering from...

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Axis bank opens all women branch, focuses digital

Axis Bank, India’s third largest private sector Bank, has opened its first All Women Branch in Patna, Bihar.“Women play an important role in managing household savings and we believe that this all Women Branch will help increase the participation of this segment in the banking industry,” said Rajiv Anand, Group Executive – Retail Banking, Axis Bank.Axis Bank also offers its mobile app ‘Axis Mobile 2.0’ with high level of personalisation, allowing users to customise their mobile banking experience, depending on the user segment (Youth, Premium&...

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DCB Bank plans doubling business in three years

The private sector lender, DCB Bank is planning to double its business in the next three years by focusing on retail advances. The bank aims to increase its lending to the self-employed persons at tier-2 to tier-6 towns (having population less than 5000)."Retail is our main focus area. Our balancesheet size is Rs. 13,000 crore at present and we are aiming to double the same in the next 3-3.5 years. We will open about 250 branches in the next three years and 50 per cent of that will come in tier-2 to 6 towns," said Murali M. Natrajan, Managing...

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HDFC Bank launches branch banking on mobile

HDFC Bank launched its mobile banking facility that offers to turn a mobile phone into a bank branch.“With over 75 transactions -- all a touch away - ‘Bank Aap Ki Muththi Mein’ offers the customer the widest range of transactions conceivable. These are both financial and non-financial transactions that he needs in his daily life for which he would have to visit a branch, or an ATM,” HDFC Bank said in a statement.Besides essential transactions such as booking fixed- and recurring deposits, bill and tax payments, buying insurance and mutual funds,...

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Harihar Mishra appointed as additional director of Dhanlaxmi Bank

The Reserve Bank of India (RBI) has appointed Harihar Mishra, General Manager, RBI, Bengaluru, as Additional Director of Dhanlaxmi Bank Ltd.In a notice to the BSE, the South-based old generation private sector bank said Mishra comes in the place of Raja Selvaraj, General Manager, Reserve Bank of India, Chennai.Mishra's appointment is for a period of two years with effect from December 9, 2014 to December 8, 2016 or till further orders, whichever is earlier. Source : Thehindubusinesslin...

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Axis Bank, Tigerair offer on Singapore flights

Axis Bank, India’s third largest private sector bank in association with Singapore’s no-frill airline Tigerair, announced a special offer ‘Fly out to Singapore for free on round trip’ for Axis Bank’s esteemed Credit and Debit cardholders.“From 17 December 2014 till 04 January 2015, Axis Bank customers who book a round trip to visit Singapore will only have to pay for their return ticket. Their flight to Singapore will be complimentary (airport taxes and add-on charges will still apply),” Axis Bank said in a statement.The ‘Fly to Singapore for...

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SBI to increase branch network in Karnataka

State Bank of India (SBI) is planning to close the financial year of 2014-15 with a branch network of 750 in Karnataka.In an informal chat with presspersons on the sidelines of the inauguration of an e-corner of the bank at Mangaluru main branch on Tuesday, Rajni Mishra, Chief General Manager of SBI, Bengaluru circle, said that the bank has a dominant presence in the State with 690 branches.The bank is planning to add another 60 branches in Karnataka by the end of the current financial year.“We are planning to open more branches in the remotest...

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IDBI Bank launches electronic insurance account

IDBI Bank in association with NSDL Database Management Ltd (NDML) has launched 'Electronic-Insurance Account (e-IA)’.e-IA is the portfolio of insurance policies of a policy holder held in electronic form with an insurance repository.Under this facility, customers can buy and keep insurance policies in electronic form, rather than as a paper document.Existing policies in physical mode too can be dematerialised and held in e-IA.This facility will not only provide policy holders a facility to keep insurance policies in electronic form but also...

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RBI advances timing for RTGS business hours

Now, get more time to make your online fund transfer through RTGS as in another boost to online banking, the Reserve Bank of India has decided to advance the working hours starting from 8 am to 8 pm. “It has hence been decided to advance RTGS business hours to 8:00 hours from 9.00 hours and extend closing time of RTGS to 20.00 hours on week days. RTGS business window will be open from 8.00 hours to 15.30 hours on Saturdays,” RBI said in a notification.The new working hours will be with effect from December 29, 2014.Currently, the RTGS...

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Lack of ATMs could derail Jan Dhan Yojana

Despite the rising need for more ATM machines across the country, the government’s financial inclusion scheme Pradhan Mantri Jan Dhan Yojana (PMJDY) is yet to see an uptake in ATM deployments.Banks and ATM operators say that low interchange fee and cap on the number of free ATM transactions are making it an unviable proposition. Slack deploymentCATMi (Confederation of ATM Industry), an association of companies that deploy ATMs for banks, has warned that accounts being opened under the PMJDY would end up being dormant if there are not enough...

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Vijaya Bank’s equity capital mop-up plan on track: CMD

Vijaya Bank is confident of raising core equity capital of Rs600 crore before the end of the current fiscal, its Chairman and Managing Director V Kannan said.There is no plan to enhance this capital mop-up during this fiscal although the Centre was open to bring down its stake in public sector banks to 52 per cent.“As planned earlier, we will only go in for a qualified institutional placement issue so as to mop up about Rs600 crore before end March,” Kannan told BusinessLine. This could bring down the Centre’s stake to 68 per cent from the...

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Falling bank rates make corporate fixed deposits attractive

With banks slashing deposit rates, savers could take comfort from the higher rates offered by companies such as HDFC, Shriram Transport, Mahindra Finance and Dewan Housing. The average spread, or gap, between bank and corporate deposits has widened about 90-100 basis points compared with the usual 50-70 bps. A depositor with slightly higher risk appetite can now earn interest rates of up to 10.50% with three-year maturity."Investors with a higher risk appetite can invest in fixed deposits issued by companies," said Sandeep Nayak, executive...

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United Bank signs pact with Bajaj Allianz

United Bank of India has signed a memorandum of understanding (MoU) with Bajaj Allianz Life Insurance, wherein Bajaj Allianz will act as a channel partner for loan protection of the bank’s borrowers.The MoU was entered into on December 9.The MoU was signed in the presence of Ramchandra Pandit, Senior Vice-President, Bajaj Allianz Life Insurance Company Ltd, Sanjay Arya, Executive Director of the bank, and other senior executives.Interestingly, the Kolkata-based lender will be the sixth public sector bank with which the private insurer has tied-up...

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SBI chief: Leave it to banks to decide on mergers

The Centre must leave it to the public sector banks themselves to decide on the consolidation candidates, SBI Chairperson Arundhati Bhattacharya has said.“It is important to start conversations among banks as to who should merge with whom," she said at the Delhi Economics Conclave 2014 here on Thursday.There is need for India to work towards 3-4 large banks through consolidation, she added.This remark is in line with the earlier UPA regime’s policy stance of allowing banks on their own to come up with proposals for consolidation among themselves.As...

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Bank of Maharashtra cuts minimum lending rate to 10.25%

State—run Bank of Maharashtra today announced a cut of 0.15 percentage point in its minimum lending rate or base rate to 10.25 per cent, a move which will make its housing and auto loans cheaper.“The bank has decided to revise the bank’s base rate from 10.40 per cent per annum to 10.25 per cent per annum with effect from December 15, 2014,” Bank of Maharashtra (BoM) said in a filing to the BSE.BoM is the first bank that has lowered lending rates after RBI Governor Raghuram Rajan made a case for lowering lending rates by banks earlier this month.“Some...

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RBI to review priority sector lending norms for foreign banks

The Reserve Bank of India (RBI) will soon be reviewing the priority sector lending norms for foreign banks; after which it will nudge them convert their Indian branches into wholly-owned subsidiaries, the Governor, Raghuram Rajan said here on Thursday.Rajan was in the city to attend RBI board meeting.According to him, the foreign banks have expressed (to the central bank) their concerns and the obligations they will have if they have to convert their branches into wholly-owned subsidiaries.The primary concerns raised by these foreign banks...

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Bharatiya Mahila Bank opens Coimbatore branch

Bharatiya Mahila Bank plans to close the current fiscal with a network of 80 branches.The year-old bank, according to its Chairperson Usha Anathasubramanian, has started to take baby-steps.Launched by the UPA Government on November 19, 2013, this 100 per cent Government-owned bank, started its operations with seven branches, added two more to take it to nine before March 31, 2014.“This is the 36th branch of the bank and the second in the state of Tamil Nadu,” she said, inaugurating the Coimbatore branch at Ramnagar.New branchesMahila Bank plans...

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RBI Deputy Governor Khan proposes novel PPP model to drive financial inclusion agenda

India should adopt the model of "PPP (square)" for driving its financial inclusion agenda, the RBI Deputy Governor, H R Khan, has said.Financial inclusion efforts should be tested against the 'Plan, Pursue and Pause' framework to ensure better outcomes, Khan said at the 'Inclusive Finance India Summit 2014' in the Capital on Monday.There is need to "plan'' well, pursue what has been planned and ensure there is a "pause'' to see if it is working well.An iteration of this "PPP'' could result in better results, Khan said.This PPP model is different...

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ICICI Bank caps free transactions at own ATMs at five

The country’s largest private sector lender ICICI Bank has announced a hike in its ATM charges for savings account holders from January 1.Under the new method, the number of free transactions in a month is fixed at five using own ATMs, while it has been capped at three for other banks’ machines.Customers can enjoy only five free transactions, including financial and non-financial, at the bank’s own automated teller machines (ATM), it said in a post on its website.After exceeding the free transaction limits, customers will have to pay Rs. 20...

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Kotak Mahindra launches savings account of older customers

Kotak Mahindra Bank launched a savings account product for older customers aged over 55 years to offer priority service with discounted offerings.Grand is a unique savings bank account, tailored exclusively for customers 55 years and above. Grand has been designed keeping in mind their need for hassle-free banking, financial independence and personal attention, the bank said in a statement.“Grand offers priority service and first aid card which provides essential customer information and emergency contacts details. It also offers queue privileges...

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‘Uber complying with RBI norms for payment system’

The Reserve Bank of India today said that the US-based controversial cab operator Uber is complying with the central bank norms with regard to payment systems.“My understanding is that they are complying (with the norms),” RBI Deputy Governor H R Khan said when asked whether Uber’s payment system is fully compliant with the Indian norms.The company has been in the news as its taxi driver is facing rape charges and is currently in police custody. Police has also issued notice to the Indian functionaries of Uber to join investigation in the case.The...

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LIC agents to stage dharna in Mumbai on Wed

The LIC Agents’ Organisation of India will hold a massive dharna at Azad Maidan in Mumbai on Wednesday to present a charter of demands to the LIC management.Agents have not agitated for a raise in their commission since 1956, PG Dileep, General-Secretary of the organisation, told BusinessLine.RETAIN COMMISSIONThis is despite the price of essential commodities and petroleum products having shot up many times over during this period.“Even now we are not asking for a raise in the commission rate. Our main demand is that the existing commission...

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