UCO Bank hikes term deposit rates

UCO Bank has hiked interest rates by 25-200 basis points on term deposits of various tenures effective August 22. 

The hike will be applicable on deposits up to Rs 5 crore, according to a press release issued by the bank.

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Deutsche Bank staff indicted for stock scam

Seoul: A report says four employees of Deutsche Bank AG and its South Korean brokerage unit have been indicted on charges of manipulating stock prices and unfair trading.

Yonhap news agency reported Sunday that the alleged improper trading triggered a sudden plunge in Seoul's benchmark stock index last November and resulted in illegal profits of about $41 million.

Yonhap says prosecutors indicted three employees with the bank's Hong Kong office and a fourth with Deutsche Securities Korea.

Yonhap cited the German bank as saying its South Korean brokerage unit didn't authorize or condone any violation of market regulations.

Seoul prosecutors said they could not immediately confirm the report.

Source: Financial Express

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Corporation Bank seeks Rs 300-cr loan from govt

State-owned Corporation Bank has sought Rs 300 crore capital support from the government to fund business growth.

"We have requested capital infusion, they [the government] will consider it when they will review banking sector as a whole," said Corporation Bank Chairman and Managing Director Ramanath Pradeep.

"We have made a very small request for about Rs 300 crore...It will be by way of Tier I capital," he said on the sidelines of a PHD event. I don't need to raise capital at this point of time. My capital adequacy ratio is more than 14%," he added.

On the back of robust monitoring mechanism and system, the bank intends to become a zero net NPA bank by the end of the current fiscal.

"Because we have introduced very robust system of monitoring therefore we are confident that we should reach to that level zero net NPA level [by March 2012]," Pradeep said.

Current net Non-Performing Asset level of the bank stood at 0.47% at the end of June 2011.

Talking about the loan growth, Pradeep said, there is a possibility of moderation in credit growth on account of rising interest rate.

"Loan growth is expected to be lower than the original estimate. Our target is 25% on the loan side but probably there is need to revisit it to may be around 22%," Pradeep said.

Deposit growth would be also be lower at 20% against the original target of 22%, he said.

Source: Business Standard

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Muthoot Finance to open 50 branches in West Bengal

KOLKATA: Muthoot Group plans to open 50 branches in West Bengal by March 2012, taking its tally in the state to 100, the company managing director George Alexander Muthoot said.

The Kochi-based gold loan financing company has a good presence in the south and the north and the company is now expanding its operation in eastern India.

The company is going in for a public issue of secured, redeemable, non-convertible debentures (NCDs) to raise up to Rs 1,000 crore. The issue will open on August 23 and closes on September 5. The NCDs will offer interest rates between 11.75% and 12.25% annually.

Mr Muthoot said the company is raising the fund for diversifying its investor base. It has recently raised Rs 900 crore from its initial public offer.

Source: EconomicTimes

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Corporation Bank chief refutes allegations of irregularities

New Delhi: Corporation Bank chief Ramnath Pradeep today said he will clarify his position on allegations of irregularities in loan sanctioning before the authorities and termed the charges as professional hazards.

"We have prepared the report and we are submitting whatever questions have been asked by the Finance Ministry. See, these are professional hazards. We (all) are facing it and I am also facing it. I have nothing to hide," Corporation Bank Chairman and Managing Director said on the sidelines of a seminar organised by the PHD Chamber here.

The Finance Ministry has asked Corporation Bank to submit a detailed report and sought clarifications on allegations levelled against him.

Pradeep is facing charges of sanctioning loans in violation of prudential norms, reportedly to a few companies and he is also said to have extended a big-ticket loan to a tower construction company that had already defaulted on payments to another state-run bank.

"We have prepared (our response) and we are not accepting anything," Pradeep said when asked about his response to Central Vigilance Commission (CVC) indictment.

He also said, "In Air India we have an exposure of Rs 1,300 crore. For me it is not an issue. It is a standard asset."

On the back of robust monitoring mechanism and system, the bank intend to become a zero net NPA bank by the end of the current fiscal.

"Because we have introduced very robust system of monitoring therefore we are confident that we should reach to that level -- our zero net NPA level (by March 2012)," he said.

Current net NPA level of the bank stood at 0.47 per cent at the end of June 2011.

Talking about the loan growth, he said, there is a possibility of moderation in credit growth on account of rising interest rate.

"Loan growth is expected to be lower than the target. Our target is 25 per cent on the loan side but probably there is a need to revisit may be around 22 per cent," he said.

Deposit growth would also be lower at 20 per cent, as against the original target of 22 per cent, he said.

Source: Financial Express

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