Kotak Mahindra Bank opens Thrissur branch

Kotak Mahindra Bank (KMB) has strengthened its presence in Kerala with the formal inauguration of its first branch in Thrissur. This is KMB's 5th branch in Kerala, the other branches being in Kochi, Kottayam, Thiruvananthapuram and Kozhikode.

Mr Virat Diwanji, Executive Vice-President and Head – Branch Banking, Kotak Mahindra Bank, and Mr Kalyana Raman, Chairman and Managing Director, Kalyan Jewellers and Kalyan Developers, formally inaugurated the branch.

Through its network of branches, KMBL offers savings accounts, corporate salary accounts, current accounts, term deposits and investment products amongst other offerings.

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SBT launches ‘Green Channel'

The State Bank of Travancore (SBT) has introduced the Green Channel Counter (GCC), an innovative step towards paperless banking.

The Managing Director, Mr P. Nanda Kumaran, launched the facility at the Kowdiar branch here in the presence of Mr S. Balachandran, Chief General Manager. GCC aims at reducing transaction time and does away with pay-in-slips, cheques and challans. Cash deposit, withdrawal and funds transfer are made now available a transaction limit of Rs 40,000. The customer need not fill up forms nor get tokens or stand in queue. A printed receipt will be given to validate the transaction.

The GCC facility can be accessed through a specially designed transaction processing device by swiping the ATM debit card and entering the PIN. SBT intends to extend GCC to other branches in a phased manner.

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Sebi to come out with IPP guideline

Capital market regulator Sebi has said it would issue guidelines next week for private placement of shares through auction route to institutional investors by promoters.

"IPP (Institutional Placement Programme) guideline would come in next 3-4 days. Work has been done with regard to changes in regulation. Those changes would be done in next 3-4 days," Sebi Chairman U K Sinha said.

IPP would allow promoters to sell up to 10 per cent of their capital through auction to institutional investors.

Opening of this additional route would facilitate the disinvestment programme of the government in current market conditions.

The government is running against time to meet its ambitious disinvestment target of Rs 40,000 crore for the current fiscal.

"This method can be used only for the purpose of complying with minimum public shareholding requirements under Securities Contract Regulation (Rules) or SCRR, either by way of fresh issue of capital or dilution by the promoters through an offer for sale," Sebi had said earlier this month after its board approved a new IPP route.

Using this method, public shareholding can be increased by 10 per cent or lesser percentage as is required to comply with the minimum public shareholding requirement, it had said.

As per government norms, at least 10 per cent of the shareholding in all listed state-owned companies should be with the public, while in the case of private sector companies, the minimum public shareholding should be 25 per cent.

Sebi had said under the IPP mode, companies would be required to simultaneously file a red herring prospectus/prospectus with SEBI, the Registrar of Companies and stock exchanges.

Under the new mechanism, the offer would be restricted to Qualified Institutional Buyers (QIBs), it said. A minimum of 25 per cent of the offer would be reserved for mutual funds and insurance companies.

The company or promoter would announce an indicative floor price or price band at least one day prior to the opening of the offer, it had said.

Issuers shall endeavour to maximise the number of allottees in order to ensure wider distribution of shares, it had said, adding that there shall be at least 10 allottees in every IPP issuance. Furthermore, no single investor shall receive allotment for more than 25 per cent of the offer size.

The regulator also allowed the stock exchange to offer a separate window for the purpose of such sales. The duration of this window would co-exist with the normal trading hours, it had said.

Allotment would be done either on price priority or a clearing price basis proportionately and would be overseen by the exchanges, it added.

Source: Financial Express

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No overseas borrowing plan as of now: Bank of India

Bank of India will raise foreign currency loan under its medium term note (MTN) programme as soon as the global economic situation improves, a top executive has said.

“We will enter the market for raising foreign currency loan as soon as the situation improves on the global economic front. However, there is no such plan as of now,” a top bank official, who wished not to be named, told PTI here.

The state-run lender, which had a MTN programme of raising around $5 billion in 2005, has raised $1.475 billion till now.

Referring to amount likely to be raised, the official said it was difficult to peg a specific quantity as it would depend on the prevailing economic situation.

“We may look at other currencies also, except dollar, to raise money through MTN programme.”

Earlier, State Bank of India had said the country’s largest lender would revive its international borrowing plans in next three to four months with the improvement of European situation.

SBI Managing Director Hemant Contractor has reportedly said the bank could raise above $500 million through its international borrowing plan.

Recently, another Government lender, Union Bank of India, filed an updated prospectus with the Singapore Stock Exchange for its $2 billion MTN programme, out of which the bank had already raised $565 million.

Last year, several banks deferred their plans of international borrowing due to risk aversion approach of European institutions towards emerging economies.

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SBI may return to overseas markets

State Bank of India (SBI), the country’s biggest lender, said it could revive international fundraising plans in three-four months, a sign it believed the euro zone crisis might be easing.

The bank, which is involved with about a quarter of all bank loans and deposits in the country, said it would launch the fundraising once it had seen international markets stabilise.

“We would like to come in as early as maybe in three or four months time,” Hemant Contractor, a managing director at the bank, told reporters during a press conference at the bank’s office in the Belgian city of Antwerp.

“Because of the slight instability in the capital markets, we have deferred our plans, so once there is some stability, we will tap the markets,” he said.

In November, he had said the bank would hold off on its fundraising plans because of conditions in the international markets, which have been under pressure because of worries over highly indebted European nations.

Contractor said the plans would be finalised after the bank’s quarterly results next month.

Lat year, SBI had said it could raise up to $10 billion abroad, as it sought cash to lend to companies on the subcontinent to help fuel their explosive growth.

“There is a demand for funds from our customers, and it’s because of that that we are thinking of tapping the markets now,” Contractor said.

Even though India saw its slowest growth in national output for over two years in the quarter ended September, that was still an increase of almost seven per cent.

The bank could raise upwards of $500 million, likely in US dollars, he said.

“Depending on how the markets play out, we will decide on the currency ... but in all likelihood, it will be US dollars.”

Source: Business Standard

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