Kotak Mahindra Bank rejigs corporate, i-banking arm

Post its acquisition of ING's India business, the Kotak Mahindra Group has rejig its top management.

TV Raghunath, who until was in-charge of investment banking will now take up a bigger role and will also oversee corporate banking. From now on he is the head - Corporate and Investment Banking at the bank. TV, as he is fondly called, will report to KVS Manian, President - Corporate, Institutional and Investment Banking, Kotak Mahindra Bank.

"TV will continue to oversee Kotak Mahindra Capital Company (Kotak Investment Banking)," the release said.

S Ramesh, presently the Joint Managing Director of Kotak Investment Banking, will take charge as Managing Director & CEO, Kotak Investment Banking.

Sourav Mallik, currently the Senior Executive Director and Head - M&A at Kotak Investment Banking is being elevated to Joint Managing Director, Kotak Investment Banking. The Equities business will be headed by V. Jayasankar, and Pankaj Kalra will play a significant leadership role in coverage and ideation for corporates in the Corporate Advisory Group of the investment bank.

Chetan Savla, presently Senior Executive Director, Kotak Investment Banking will join TV Raghunath at the Bank to bring focus in covering some of the largest corporates in India in an integrated manner.

KVS Manian, President - Corporate, Institutional and Investment Banking, Kotak Mahindra Bank said, "As I contemplate the future, I am excited about the significant opportunities that exist for us as a group to build a high-quality corporate franchise. Backed by our strengths and unique skills sets in investment banking, combined with a larger banking platform, we have a unique opportunity to provide the best banking solutions in an integrated manner to Corporate India."

"With these organizational changes, I am confident that we are well structured to achieve the next level of growth", Manian added.

Source : Economic Times

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Bank cannot freeze employee's account on employer's request: Consumer forum

A bank cannot freeze the account of an employee on the request of the employer and become a judge of dispute between them, a consumer forum here has said while holding IDBI Bank Ltd guilty of deficiency for doing so.

A bench of New Delhi District Consumer Disputes Redressal Forum, presided by CK Chaturevdi, made the observation while asking IDBI Bank Ltd to pay Rs 20,000 to Delhi resident Om Prakash Sharma, noting that his account was freezed from December 23 to 27, 2010, on his employer's request and without any intimation to him.

"In our considered view, the bank cannot become a judge of dispute between the employer and employee and freeze the account of employee on the request of employer. Such a right belongs to Court or police on investigation can resort to such a request," the forum said, adding the bank did a "negligence act" in freezing Sharma's account.

It asked the bank to pay a compensation of Rs 20,000 for deficiency and litigation charges while holding the bank "guilty of gross deficiency".

Sharma had told the forum that he had some dispute with his employer and was given a cheque of Rs 59,000 towards settlement of dues.

However, Sharma said that he came to know through RTI that his employer had written to his bank to put a debit freeze on his account, alleging that complainant had stolen the said signed cheque and filled in figures and got the money transferred in his account.

In its order, the forum also noted that the employer had not lodged any FIR with police about the theft of cheque by complainant.

Source : Economic Times

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Canara Bank to get Rs 1,500 crore fund infusion from LIC soon

State-owned Canara Bank is likely to get fund infusion of up to Rs 1,500 crore from the country's largest insurance firm Life Insurance Corporation of India (LIC) next month.

"The fund would be raised by issuing 4 crore shares through preferential allotment and the capital raised would be utilised for business growth," a senior Canara Bank official said.

At the current market price, Canara Bank would be able to raise about Rs 1,500 crore by issuing shares on preferential basis.

The bank has fixed March 31 as the relevant date for purpose of determination of pricing of shares at which shares would be issued to the insurer, the official said.

As of December 2014, LIC held 6.4 per cent stake, or 2.95 crore shares, in the bank.

The bank already has got in-principle approval from LIC for subscription of up to 4 crore shares.

As per the approval letter from LIC, the official said, total exposure cannot exceed 15 per cent of post issue capital of the bank at any point of time.

The board of Canara Bank has already given approval for issuance of preference shares. The bank would seek shareholders' nod for the same on April 30.

After approval from the Extraordinary General Meeting, preferential issue in favour of LIC would be done, the official added.

For the third quarter ended December 2014, Canara Bank reported 60.2 per cent increase in net profit at Rs 655.92 crore despite increase in bad loans.

The Bangalore-based lender had posted a net profit of Rs 409.35 crore for the October-December quarter of 2013-14 fiscal.

The bank's total income increased to Rs 12,227.86 crore for the quarter under review from Rs 10,935.29 crore in the year-ago period.

As far as asset quality of the bank is concerned, gross NPAs as a percentage of total advances rose to 3.35 per cent from 2.79 per cent in the same quarter a year ago.

Its net NPAs went up to 2.42 per cent from 2.39 per cent at the end of December 2013.

Gross NPAs in absolute terms rose to Rs 10,573.57 crore as compared to Rs 8,073.92 crore at the end of December 2013.

Source : Economic Times

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Nominee change in life policies to cost Rs 100 now

Cancellation or change in nomination in insurance policies now comes at a cost as regulator IRDAI has allowed life insurers to charge up to Rs 100 for any such modification.

For policies obtained online, the fee is up to Rs 50.

The IRDAI guidelines for ‘Registering Cancellation or Change of Nomination’ have come into effect from April 1, 2015.

The Insurance Act allows the holder of a life policy to nominate, on his own, a person or persons to whom the money shall be paid in the event of his death while effecting the policy or any time before it matures.

“In respect of those policies that are issued in electronic form... the fee collected shall not exceed Rs 50.

In respect of policies other than those, the fee collected shall not exceed Rs 100,” the Insurance Regulatory and Development Authority of India (IRDAI) said in an order.

“No fee other than what has been prescribed shall be collected for registering a nomination either at the time of effecting a policy of life insurance or at any time thereafter or towards any other services relating to nomination,” the regulator added.


Source : Thehindubusinessline

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SBI wants more women directors on its board

Pitching for greater gender diversity on its board, SBI’s Chairperson Arundhati Bhattacharya today said the bank wants some more women directors and has already suggested a few names to the government.

This comes in sharp contrast to an overall reluctance shown by the listed companies across the board in run-up to a regulatory deadline, which expired, for appointing at least one woman director.

SBI was already in compliance with the requirement with its chairperson itself being a woman.

“Right now, with me, the bank is compliant with the Companies Act (and SEBI norms). But we want some more women directors on board,” Bhattacharya told reporters on thurday.

“We have initiated the process and have also suggested some names to the government,” she added.

To ensure gender diversity in corporate board rooms, all listed companies are required to have at least one woman director as per capital markets regulator SEBI’s guidelines and under the provisions of the new Companies Act.

A number of companies are believed to have failed to meet the deadline and they may soon face penal action by Sebi, as also by the Corporate Affairs Ministry.

While the norms were announced more than a year ago and a six-month extension was also given in September 2014, hundreds of companies finally appointed women directors in the last few days.


Source : Thehindubusinessline

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Modi asks Reserve Bank to prepare 20-year financial inclusion roadmap

Prime Minister Narendra Modi on Thursday asked the Reserve Bank of India to prepare a 20-year roadmap for deepening financial inclusion in the country.

Speaking at a function to commemorate the completion of 80 years of the RBI, Modi said that the financial inclusion programme should be rolled out in phases with the first target to be met by 2019, when the country will celebrate the 150th anniversary of Mahatma Gandhi.

“So, a roadmap on how the Indian banking system will reach the doorstep of the poor will have to be readied,” the Prime Minister said, even as he lauded the RBI’s contribution to the economy.

Modi emphasised that banks should zero in on target groups and achieve the financial inclusion goals.

“Cooperative banks, microfinance institutions, nationalised banks as well as the RBI should think in one direction (financial inclusion). This is possible,” he said.

Financial inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of society, in general, and vulnerable groups, such as weaker sections and low-income categories, in particular, at an affordable cost and in a fair and transparent manner.

No small achievement

The Prime Minister pointed out that it was no small achievement that banks were able to open 14 crore bank accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) since August 2014, with 41 per cent of the accounts collectively having a balance of Rs14,000 crore.

Modi said though the facility allowed the poor to open zero-balance accounts, they actually deposited money.

“Bankers must have seen the poverty of the rich many times. They must have come across the rich who don’t pay their dues on time. Bank managers must be troubled when March approaches and these borrowers don’t pay up. “So, you have seen the poverty of the rich. But PMJDY has given you the opportunity to see the richness of the poor,” the Prime Minister said.

In line with the ‘Make in India’ campaign, Modi urged the RBI to turn ‘Swadeshi’ by ensuring that the security paper as well the ink used for printing currency notes are manufactured domestically. The Prime Minister also asked banks and industrial houses, along with their employees, to give up their LPG subsidies to benefit one crore poor families.


Source : Thehindubusinessline

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Karur Vysya Bank to build 200 toilets in Gujarat

Karur Vysya Bank informed that the bank has contributed Rs 25 lakh for construction of 200 toilets in Dhandhuka Taluka of Gujarat towards Mukyamantri Svachchta Nidhi as part of the Clean India mission. Bank's assistant general manager and Divisional Head of Ahmedabad division, R Ganesan handed over the cheque to Chief Minister Anandiben Patel in Gandhinagar. The announcement for the same was made on February 13, 2015 during the 98th Founder’s Day celebration of the bank by the Board members and CMD of the bank K Venkatraman at the function held in Ahmedabad.


Source : Thehindubusinessline

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