Man decamps with Rs 66,000

In an incident involving ingenious criminal intent, a man was robbed of Rs 66,000 near the UCO Bank premises under Paltan Bazar police station today.
Lal Mohan Singh had taken out an amount of Rs 66,000 from the bank and was about to move away on his bicycle parked nearby when a person told him that there were some currency notes on the ground which could belong to him.

Thinking it could be so, Singh’s attention was diverted from his cycle where he had kept the cash. But during those moments the unknown person picked up Singh’s cash and disappeared from the scene. Investigation is on.

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Man decamps with Rs 66,000

In an incident involving ingenious criminal intent, a man was robbed of Rs 66,000 near the UCO Bank premises under Paltan Bazar police station today.
Lal Mohan Singh had taken out an amount of Rs 66,000 from the bank and was about to move away on his bicycle parked nearby when a person told him that there were some currency notes on the ground which could belong to him.

Thinking it could be so, Singh’s attention was diverted from his cycle where he had kept the cash. But during those moments the unknown person picked up Singh’s cash and disappeared from the scene. Investigation is on.

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UCO Bank gets extension to meet provision coverage ratio

After ICICI Bank and SBI, UCO Bank has got some leeway from the Reserve Bank of India (RBI). CNBC-TV18 learns that the RBI has given the public sector lender a six-month extension, up to March 31, for achieving the 70% provision coverage ratio, reports CNBC-TV18’s Vidhi Godiawala.

Certainly good news coming in there for UCO Bank, what we are picking up from our sources in the regulator and RBI is that they have been given a six months extension to reach the 70% provision coverage ratio by March 2011, instead of September 2010.

What is provision coverage ratio? It’s the amount of money a bank keeps aside for its bad loans or its non-performing assets.

Now, UCO Bank has been given the extension till March 31, 2011 to reach this, so now they have to provide only Rs 400 crore to reach 70%. Currently, as on first quarter of FY11, their provision coverage ratio was 58.64% and their gross NPA stood at about Rs 1,929 crore. They had sought extension for one year till September 2011, but that has come in only for six months is what our sources are telling us.

Also, the bank says that more NPAs could come up through the course of the year and that Rs 400 crore could actually increase, but that will come only through the course of the year as the bad loans increase. However, the bank says that they have not received any intimation from RBI as yet on the extension provided to them.

Now let me take you back SBI has got one year extension till September 2011 and ICICI Bank has got an extension by six months till March 2011 and Laxmi Vilas Bank, which is another bank has sought extension from the RBI, but there has been no intimation. This extension for UCO Bank will only help them provide in a more systematic manner and it will be less strain on the balance sheet since these provisions come directly from the profits of the bank

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UCO Bank gets extension to meet provision coverage ratio

After ICICI Bank and SBI, UCO Bank has got some leeway from the Reserve Bank of India (RBI). CNBC-TV18 learns that the RBI has given the public sector lender a six-month extension, up to March 31, for achieving the 70% provision coverage ratio, reports CNBC-TV18’s Vidhi Godiawala.

Certainly good news coming in there for UCO Bank, what we are picking up from our sources in the regulator and RBI is that they have been given a six months extension to reach the 70% provision coverage ratio by March 2011, instead of September 2010.

What is provision coverage ratio? It’s the amount of money a bank keeps aside for its bad loans or its non-performing assets.

Now, UCO Bank has been given the extension till March 31, 2011 to reach this, so now they have to provide only Rs 400 crore to reach 70%. Currently, as on first quarter of FY11, their provision coverage ratio was 58.64% and their gross NPA stood at about Rs 1,929 crore. They had sought extension for one year till September 2011, but that has come in only for six months is what our sources are telling us.

Also, the bank says that more NPAs could come up through the course of the year and that Rs 400 crore could actually increase, but that will come only through the course of the year as the bad loans increase. However, the bank says that they have not received any intimation from RBI as yet on the extension provided to them.

Now let me take you back SBI has got one year extension till September 2011 and ICICI Bank has got an extension by six months till March 2011 and Laxmi Vilas Bank, which is another bank has sought extension from the RBI, but there has been no intimation. This extension for UCO Bank will only help them provide in a more systematic manner and it will be less strain on the balance sheet since these provisions come directly from the profits of the bank

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Fraud & fictitious offers increase in 2 years: RBI

KOLKATA: Reserve Bank of India on Friday said fraudulent and fictitious offers though e-mails, mobile phones and SMSs had increased significantly in the last two years despite public awareness by RBI.

"Such fictitious offers had increased in the last two years," RBI general manager C L Nag said here today while addressing media on steps of the central bank in this regard.

He did not give the number of complaints against such fictitious offers it has received, saying most of these were informal.

Nag said several circulars since 2000 had been issued by RBI on such offers and urged people not to be lured by them in which money is asked upfront terming as processing fee, transaction fee, tax clearance and others.

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RBI asks banks to give reasons for returning cheques

Keeping in view the larger interests of customers, the Reserve Bank of India (RBI) today asked banks to inform account holders on the reasons for a cheque being returned or dishonoured.

Banks are advised to indicate the date of return in the 'Cheque Return Memo' without fail, the RBI said in a statement.


The memo that should accompany a cheque dishonoured or returned for any reason is a critical document, more so in case recourse to legal action is necessitated, it said.

Instruments returned unpaid should have a signed objection slip on which a definite and valid reason for refusing payment must be stated, it said.

Certain instances of banks not mentioning the date of return on the cheque return memo have been brought to RBI's notice, it said.

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RBI asks banks to give reasons for returning cheques

Keeping in view the larger interests of customers, the Reserve Bank of India (RBI) today asked banks to inform account holders on the reasons for a cheque being returned or dishonoured.

Banks are advised to indicate the date of return in the 'Cheque Return Memo' without fail, the RBI said in a statement.


The memo that should accompany a cheque dishonoured or returned for any reason is a critical document, more so in case recourse to legal action is necessitated, it said.

Instruments returned unpaid should have a signed objection slip on which a definite and valid reason for refusing payment must be stated, it said.

Certain instances of banks not mentioning the date of return on the cheque return memo have been brought to RBI's notice, it said.

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Asia's oldest co-operative bank closes

The Reserve Bank of India has finally cancelled the licence of Asia's oldest co-operative bank, Vadodara-based Anyonya Co-operative Bank Limited (ACBL), after examining all options for its revival.

RBI sources here said the bank had been ordered to stop all its transactions under Section 35A of the Banking Regulation Act, on September 14, 2007, and the bank downed its shutters in March, 2008. Its annual general meeting in September, 2008 formed a committee to find ways to re-open the bank.

The fate of the bank had been uncertain ever since the RBI clamped restrictions on it for failing to reduce its non-performing assets (NPAs). Revival, merger and liquidation were all discussed for the bank, but nothing worked.

Due to liquidity problems and high NPAs, the bank was placed under directions under Section 35A of the Banking Regulation Act 1949, placing a ceiling on repayment of deposits per depositor.

In a desperate bid to make the bank survive, Vadodara mayor and MP Balkrishna Shukla, along with ACBL chairman Dilip Kelkar and director Vrushal Revadandekar had met Prime Minister Manmohan Singh in March, 2010. Singh had said that he would take up the matter with the RBI. Shukla had also raised the issue in Parliament on March 4 and said that the institute should be granted a heritage status.

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