SBI and Geojit BNP Paribas sign an agreement to extend PIS to NRIs

Geojit BNP Paribas Financial Services Ltd. and State Bank of India have inked an agreement to extend portfolio investment services (PIS) to NRIs, mainly from the Gulf region.

Using the SBI PIS account, NRIs can purchase and sell shares and convertible debentures through stock exchanges, subject to limits prescribed by the RBI. The investments can be on repatriable or non-repatriable basis.

NRIs can visit an SBI branch in the Middle East to open a NRE PIS account for repatriable and NRO PIS account for non-repatriable investments to commence investing in the stock market.

Following the opening of the PIS account, NRIs who wish to trade, can open a trading and DP account with Geojit BNP Paribas Financial Services Ltd through the offices of joint ventures in the Middle East at Dubai, Abu Dhabi, Sharjah, Ras al-Khaimah, Al Ain, Riyadh, Muscat, Damam and Jeddah.

V. Murali, deputy managing director of SBI said the joint initiative is a major step taken by SBI in providing PIS service to a large number of NRIs in the Gulf particularly from Kerala. C. J. George, MD of Geojit BNP Paribas said the partnership will help NRIs to look beyond bank deposits and traditional investments in physical assets.


Source: EconomicTimes

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Housing and Urban Development Corporation plans to raise Rs 10,000 crore through tax-free bonds

State-owned housing and urban infrastructure developer Housing and Urban Development Corporation (Hudco) today said it plans to raise about Rs 10,000 crore through tax-free bonds and other instruments this fiscal to fund business expansion.

"We are planning to raise about Rs 10,000 crore in 2012-13," Hudco Chairman and Managing Director V P Baligar said after announcing financial results of the company here.

Of the total resource mobilisation target for the current fiscal, he said, Rs 5,000 crore would come from tax-free bonds.

Besides, some amount would be raised from non-tax free bonds, he said, adding, the company is also talking to National Housing Bank for loans worth Rs 500 crore at a competitive interest rate for its social housing operations in rural areas.

The company will also mobilise about Rs 400 crore from its public deposit scheme, he added.

During 2011-12, the company mobilised a total of Rs 10,395.95 crore. Of this, it raised Rs 5,000 crore of tax-free bonds.

In addition, Hudco also mobilised an amount of Rs 667.40 crore via taxable bonds.

Talking about the financial performance of the Hudco during 2011-12, Baligar said, the company recorded a 14 per cent rise in net profit at Rs 629.18 crore, which is also the highest ever.

The net profit of the company was Rs 550.03 crore in the previous year.

The company registered a growth rate of 35 per cent in disbursement with releases of Rs 6,906 crore as compared to Rs 5,105 crore in 2010-11.

"We have sanctioned a total loan of Rs 20,511 crore, in 2011-12, which is the highest so far," he added.

During the year 2011-12, he said, Hudco sanctioned a total amount of Rs 14,204 crore for urban infrastructure projects. A substantial focus has been laid during the year on core infrastructure projects, which affect the quality of life of citizens, he added.

Of the total sanctions for infrastructure projects, about 56.10 per cent constituted for core infrastructure projects (Rs 7969 crore) covering water supply, sewerage, drainage, solid waste, roads/transport sector and social infrastructure projects, he added.

With regard to the asset quality, Baligar said, the gross non-performing asset (NPA) of the company stood at 6 per cent while the net NPA was 1.35 per cent at the end of March 2012.

Loans of about Rs 300 crore given to Maheshwar Hydel Power Corporation, Konaseema EPS Oakwell Power Ltd have turned NPA, he said.

The company will be making efforts to bring down its non-performing assets during the financial year by focussing more on recovery.



Source: EconomicTimes

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Syndicate Bank launches ‘mega gold loan' campaign in AP

Syndicate Bank has launched a ‘Mega Gold Loan' campaign across all its branches in Anantapur, Kurnool and Kadapa districts.

“The campaign, coinciding with crop loan season, is expected to serve the farming community and supplement the need of crop finance,'' Syndicate Bank said in a release.

Under the scheme, Rs 1,900 per gram of gold of 75 per cent of net value of told would be given as loan if the tenure of is less than 12 months.

For loans with a tenure of 12-24 months, Rs 800 per gram or 75 per cent of net value will be offered at 11.75 per cent interest.

The main aim of the campaign is to mobilise an incremental business of Rs 100 crore under the jewel loan portfolio by September 30, 2012, the release added.

nagsridhu@thehindu.co.in

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T. V. Raghunath is new MD of Kotak Mahindra Capital

Kotak Mahindra Capital Company (KMCC) has appointed Mr T. V. Raghunath as MD and CEO with effect from July 1. He is currently serving as Head-Group Strategy at Kotak Mahindra Bank. He will report to Ms Shanti Ekambaram, Director, KMCC, and Group President, Corporate & Investment Banking.

In addition, Mr S. Ramesh, the present Chief Operating Officer (KMCC) will take over as Joint Managing Director and Board Member from July 1.

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Postal dept to set up 1,000 ATMs by 2014

The Department of Posts will be setting up about 1,000 ATMs in different parts of country by 2014, according to Ms Manjula Prasher, Secretary, Department of Posts, Government of India.

Speaking at an award-presentation ceremony of the department here on Tuesday, Ms Prasher said the department had taken up a technology-induction programme to improve the services.

The work on providing online connectivity between various post-offices and circles was currently under way. The Postal Department was also participating in the ‘Aadhaar' project by despatching cards to about 60 crore persons, she added.

Later, she also gave away ‘Dak Seva' and postal life insurance awards to the staff.

In 2011-12, Andhra Pradesh Postal Circle secured Rs 863 crore business in postal life insurance and Rs 886 crore business under rural postal life insurance segment. In terms of the number of policies, it ranked the second in the country with over 3.46 lakh policies.

The total number of lives insured as on March 31, 2012 was about 40.52 lakh and 4.29 lakh in rural postal life insurance and postal life insurance respectively.

nagsridhu@thehindu.co.in

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