After IOB, RBI may pull up Allahabad Bank, Central Bank of India and Andhra Bank

The Reserve Bank of India may now turn its focus on Allahabad Bank, Central Bank of India and Andhra Bank as their dodgy loans and provision for loan losses are getting precariously close to that of Indian Overseas Bank's -the bank on which the central bank has imposed restrictions on branch expansion.On Monday, the Chennai-based Indian Overseas Bank had informed the Bombay Stock Exchange that the RBI has initiated a Prompt Corrective Action (PCA) on the bank, which is triggered if bad loans rise above 10 per cent, capital adequacy ratio slips...

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ICICI Bank launches in-store mobile-based payments with ‘mVisa’

ICICI Bank, India’s largest private sector bank, launched a service to enable customers to make electronic payments from their smartphones at physical stores, e-commerce and other deliveries at home, radio taxis, and utility billers, among others.This service is based on ‘mVisa’, a new mobile payment solution from Visa. ICICI Bank claims to be the first bank globally to launch a mobile app-based ‘mVisa’ solution for consumers and merchants.With this service, users of ‘Pockets’, ICICI Bank's app, can make cashless payments from their smartphones...

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Banks can sanction 90% loan for property upto Rs 30 lac: RBI

Banks can now provide home loans up to 90 per cent for properties that cost Rs. 30 lakh or below, RBI said today.Earlier, the facility was available only in cases where the cost was up to Rs. 20 lakh.This will benefit those home seekers who plan to buy properties in the range of Rs. 20-30 lakh.The RBI’s decision comes in the wake of all major banks reducing interest rate on home loans.The Reserve Bank, through a circular, said that in the case of ‘individual housing loans’ falling under the loan category of up to Rs. 30 lakh, the LTV (Loan...

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Bajaj Allianz Life ties-up with Dhanlaxmi Bank for distribution of products

Bajaj Allianz Life Insurance and Dhanlaxmi Bank have signed long-term agreement for a bancassurance partnership. As part of the agreement, the bank will continue to be a Corporate Agent for nine years and sell life insurance products of Bajaj Allianz Life Insurance.Dhanlaxmi Bank has been a partner of Bajaj Allianz Life Insurance since 2009 and has done business worth nearly Rs. 400 crore. The relationship between Bajaj Allianz Life Insurance and Dhanlaxmi Bank started off with customised insurance solutions for the bank's customers.Bajaj Allianz...

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Axis Bank realigns home loan rates; introduces new slab

Country’s third largest private lender Axis Bank, on Tuesday, introduced a new slab for its home loan borrowers with offers starting at 9.60 per cent onward.The newly introduced slab is for loans up to Rs. 28 lakh, an official spokesperson of the bank said.For salaried borrowers, home loans up to Rs. 28 lakh will come at 9.60 per cent, which is only 0.10 per cent over its revised base rate of 9.50 per cent, he said.While the loans above Rs. 28 lakh will attract 9.65 per cent interest, he added.The rates compare with rival ICICI Bank and HDFC’s...

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J&K Bank slashes base rate by 35 bps to 9.5%

J&K Bank on Wednesday said that it has reduced its base rate by 35 basis points, making its loans cheaper for new as well as existing customers in Jammu & Kashmir and across the country.The base rate of the bank stands reduced to 9.50 per cent from 9.85 per cent with immediate effect.Maushtaq Ahmed, Chairman & CEO, J&K Bank announced this decision after the bank's Asset Liability Committee meeting at its Corporate Headquarters in Srinagar.     srivats.kr@thehindu.co.in Source : Thehindubusinesslin...

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IRDAI chairman stresses on insuring all assets

There is a need to insure all assets of the country, according to T S Vijayan, Chairman of Insurance Regulatory and Development Authority of India (IRDAI).He was speaking at a function organised by ICICI Lombard to mark the sale of one lakh long-term two-wheeler insurance policies here on Wednesday."'In the US, 80 per cent of assets are insured, while in India this is only at 7 per cent," he said.Saying that there were 54 life and general insurance companies in the country, Vijayan said there is huge scope for increasing insurance penetration...

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BoB, Andhra Bank, Legal & General infuse Rs. 150 cr in IndiaFirst Life

Bank of Baroda, Andhra Bank and Legal & General have together infused an additional Rs. 150 crore in their life insurance venture — IndiaFirst Life Insurance — taking the total share capital to Rs. 625 crore.The equity infusion is proportionate to the shareholding pattern of the three entities, a statement from IndiaFirst Life said. Bank of Baroda holds 44 per cent, Andhra Bank 30 per cent, while Legal & General holds the remaining 26 per cent in IndiaFirst.R.M. Vishakha, MD and CEO, IndiaFirst Life Insurance said, “This demonstrates...

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Indian Overseas Bank shares skid 3% on RBI move

Shares of Indian Overseas Bank fell by nearly 3 per cent following the RBI announcing restrictions on the firm and taking “prompt corrective action” with the view to improve internal processes to deal with mounting non— performing assets.The stock lost 2.27 per cent to Rs. 36.50 on BSE.At NSE, shares of the company declined by 2.93 per cent to Rs. 36.35.“The RBI has initiated a prompt corrective action on the bank and that this action will not have any material impact on the growth prospects or performance of the bank,” IOB had said in a regulatory...

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HDFC mobilises Rs. 10,400 cr; NCDs, warrants list at big premium

In two highly successful offerings, mortgage giant HDFC Ltd has raised Rs. 5,000 crore from low— cost non convertible debentures (NCDs) and a further amount of about Rs. 5,400 crore would come in from warrants, both of which got listed with a huge premium today.“Total amount we have received is Rs. 5,051 crore, including Rs. 5,000 crore from the NCD and Rs. 51 crore is the face value of the warrants, which on conversion will get us an additional Rs. 5,384 crore,” HDFC Vice Chairman and CEO Keki Mistry told reporters here.Mistry said money raised...

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Bank of Maharashtra to raise Rs. 394 cr via pref shares to Govt

Bank of Maharashtra today said it has received shareholders’ approval to raise Rs. 394 crore by issuing 10.51 crore equity shares on preferential basis to the government.“We have obtained the approval of shareholders for raising equity capital of the bank through preferential issue of 10,51,50,787 equity shares of the face value of Rs. 10 each at an issue price of Rs. 37.47 per share, including premium of Rs. 27.47 per share to the government aggregating to Rs. 394 crore,” the bank said in a statement.The approval was given at the extraordinary...

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Bank of Baroda investigating Rs 350-crore bill discounting fraud

India's second largest lender Bank of Baroda is investigating a bill discounting fraud running into Rs 350 crore.The listed bank, which has suspended a senior official after it stumbled upon the irregularities in its Ahmedabad operations, will soon have to decide whether to provide the amount in the September-end earnings number.A senior official of the government-owned institution told ET that the matter has been reported to the Reserve Bank of India. "There is a suspected fraud. An internal probe is on. If the money cannot be recovered, the...

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RBI starts prompt corrective action on IOB to deal with NPAs

RBI has taken "prompt corrective action" on state-run Indian Overseas Bank (IOB) with the view to improve internal processes to deal with mounting non-performing assets."The RBI has initiated a prompt corrective action on the bank and that this action will not have any material impact on the growth prospects or performance of the bank," IOB said in a filing on BSE.The RBI has specified certain regulatory trigger points, as a part of prompt corrective action (PCA) framework, in terms of three parameters -- capital to risk weighted assets ratio...

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HDFC cuts home loan rates to 9.65%

After big banks cutting base rate, housing finance company HDFC (Housing Development Finance Corporation) has cut its retail prime lending rate by 25 basis points with the effective home loan rate at 9.65 per cent.The effective home loan rates for new customers would be 9.65 per cent pa and for women will be 5 basis points lower at 9.60% pa, HDFC said in a statement.Effective from October 06, this reduction would benefit all customers, it added.At present, SBI stands at the lowest base rate of 9.30 per cent. However, effective home loan rates...

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More banks cut lending rate

United Bank of India has said that it has decided to reduce its base lending rate from 9.90 per cent to 9.65 pre cent from October 12.It said various term deposit rates have also been moderated downwards depending on periodicity and quantum of deposits. The deposit rate for 5-year and above period (up to Rs. 1 crore) has been revised down to 6.75 per cent from the existing 7.25 per cent.Corporation Bank has announced the reduction of base rate for lending by 20 basis points. The bank informed the NSE on Monday that it has reduced the base rate...

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Union Bank to buy KBC Asset Management’s 49% stake in MF jt venture

Union Bank of India and KBC Asset Management NV have reached an agreement on the sale of KBC Asset Management’s 49 per cent stake in Union KBC Asset Management Co Pvt Ltd to the bank.The public sector bank, however, did not disclose the deal size.The joint venture was established between both companies in 2009.In the July-September 2015 quarter, Union KBC Asset Management had average assets under management aggregating Rs. 2,672 crore.Union Bank, in a statement, said the transaction, which is subject to regulatory approval, will have no impact...

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Vijaya Bank cuts base rate to 9.65%

Vijaya Bank has announced a reduction in its base rate by 20 basis points with effect from October 8 pursuant to the cut in repo rate announced by RBI last week. Accordingly, the revised base rate will be 9.65 per cent per annum as against the existing rate of 9.85 per cent, the Bengaluru-headquartered public sector bank said in a statement on Saturday.  Since June 2015, the Bank has so far effected 60 bps reduction in its base rate. With the latest reduction in base rate, it is expected that the sluggishness in credit offtake shall...

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Mobile banking largely an urban phenomenon, says RBI arm

Mobile banking has finally arrived in urban and semi-urban areas. About 90 per cent of the users of mobile banking are from these regions, according to findings of a study conducted by the Institute for Development and Research in Banking Technology (IDRBT), an arm of the Reserve Bank of India.Mobile banking is now seen as tool for convenience by many. While only 50 per cent have used mobile banking to transfer money, 95 per cent of users have used it just to check balance in their accounts, says the sample study.The findings are based on responses...

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SBI to charge up to 10% for home loans

SBI may have cut its base lending rate by 40 basis points to 9.3 per cent following RBI’s latest policy rate cut, but home loan customers of the top lender will have to pay up to 0.7 per cent above the base rate, and interest of as much as 10 per cent for their loans.Accordingly, the actual reduction in home loan rate will be a maximum of only 20 basis points, while a higher margin above the base rate will mean that customers will have to pay the same rate of interest for home loans above Rs. 1 crore.Maxgain home loansThe rate for Maxgain home...

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