Cashless transactions only way to curb black money: Modi

Cashless transactions are the only way to deal with black money problems, according to Prime Minister Narendra Modi. “Banks should compete on promoting cashless transactions as this will address issues related to black money,” he said at an event organised by ICICI Bank here on Friday.Modi also urged the banks to look at creating financing schemes to encourage entrepreneurs in the area of cleanliness.“The banking sector should look at a new area of creating 1 lakh swachchtha entrepreneurs. There is immense scope in solid waste management and...

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Corporation Bank to issue non-convertible bonds

Corporation Bank has proposed to issue bonds. The bank’s website posted invitations of bid for its proposal to issue unsecured non-convertible (Basel-III compliant) additional tier-1 perpetual bonds in the nature of debentures.It said the bank proposes to mobilise Rs. 500 crore with a Green Shoe option to retain over-subscription up to Rs. 500 crore, aggregating to Rs. 1,000 crore through issue of unsecured, non-convertible (Basel-III compliant) additional tier-I perpetual bonds 2014-15 (Series I) on private placement basis.The bank said the...

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RBI directs payment firms to display company name in products

The Reserve Bank of India (RBI) has directed entities offering services such as e—wallets, smart cards and White Label ATMs (WLAs) to prominently display their company name in products to ensure transparency.“All the information available to the public regarding the product, whether as advertisements, on website, application form, etc. should prominently carry the name of the entity/company authorised by RBI,” the Reserve Bank said in a notification.The RBI said it came to its notice that many authorised entities using specific brand names...

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Now, over 98% households have a bank account: Adhia

The Finance Ministry on Friday said the Pradhan Mantri Jan Dhan Yojana has enabled over 98 per cent of the households in the country to have a bank account.Addressing the media on the sidelines of banking conclave, Gyan Sangam, being held here Hasmukh Adhia, Secretary, Department of Financial Services, said, “This (figure of over 98 per cent) is based on the survey conducted by banks in different areas of the country, which were divided into service area and the wards in villages.”According to Census 2011, there are about 25 crore households...

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Union Bank home loan offer

Union Bank of India has liberalised its home loan scheme whereby it will give additional loan to customers, who wish to shift their housing loan to the bank, for further construction or renovation. Further, since customers, who have constructed/purchased a dwelling unit with a loan from the bank, may incur various miscellaneous expenses while shifting to the new house, Union Bank will make personal loan available with liberalised norms, the bank said in a statement. Further, to promote usage of renewable sources of energy, the public sector...

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Andhra Bank’s individual identity will be protected: Officers’ Union

Andhra Bank Officers’ Union has on Thursday said any proposal to merge Andhra Bank with other banks will be contested in all possible ways.Responding to news on the threat to bank in view of high Non-Performing Assets (NPAs), its General Secretary I. Haranath said when similar situation emerged in 1995-96, bank came back to profits within a span of 30 months.``Like wise we definitely cross the hurdle. If we get back the debt waiver promises made by the respective State Governments in full, NPAs is not a problem for the bank,’’ he said.Major...

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Allahabad Bank revises interest rates

Kolkata-based Allahabad Bank has revised the interest rates on domestic term deposits below Rs. one crore; and for a period of one year to less then five year.The interest rate now stands at 8.75 per cent, a downward revision by15 basis point, from the previous 8.90 per cent.The new interest rates come into effect from January 1, 2015. Source : Thehindubusinesslin...

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P Srinivas new MD & CEO of United Bank of India

P Srinivas will be the new Managing Director (MD) & Chief Executive Officer (CEO) of United Bank of India (UBI). He will take over charge from today, December 31.Prior to assuming charge at the Kolkata-headquartered bank, he was the Executive Director of Bank of Baroda. As the ED, Srinivas had handled major portfolios such as priority sector lending, MSME advances, credit monitoring, risk management and recoveries and investor relations.His appointment comes nearly 11 months after the then Chairman and Managing Director, Archana Bhargava,...

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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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