SKS Microfinance finds jobs for 248 retrenched staffers

SKS Microfinance Ltd has secured jobs for 248 retrenched employees in collaboration with corporate and consulting agencies.

SKS had organised job fairs in Hyderabad, Vijayawada for all displaced employees after providing them with training, reorientation. “An additional 255 candidates have been shortlisted for various positions,’’ SKS said in a release on Monday.

Many organisations including Coromandel International, Genius Consultants, Reliance Life Insurance Company, Smaat Aqua Technologies Pvt Ltd, Tikona Digital Networks, TeamLease Services and TMI Networks had participated in the job fairs.

The Hyderabad-based company had earlier retrenched employees in view of mounting losses it has been facing due to crisis in the sector triggered by AP Microfinance (Regulation of Moneylending) Act 2010.

SKS’s scrip gained 4.19 per cent to end at Rs 68.15 on the Bombay Stock Exchange on Monday.

nagsridhu@thehindu.co.in

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Loans for vocational education to be made easy

Here is good news for those who are interested in doing vocational courses for skill development irrespective of their age.

Banks are now gearing up to cater to the finance requirements of those keen on pursuing vocational education, thanks to the guidelines on a model loan scheme introduced by the Indian Banks’ Association (IBA).

Hitherto, the vocational courses offered by ITIs, ITCs, Polytechnics and other technical institutions are not covered under various educational loan schemes of banks.

“However, a need is felt for providing institutional funding for the students undergoing specialised skill development programmes in recognised institutions,’’ the IBA said in a circular sent to banks.

According to the new guidelines, vocational or skill development courses of duration of two months to three years, preferably leading to a certificate/ having good employability, can be funded by banks.

The loan ranges from Rs 20,000 to Rs 1.50 lakh normally though a bank can use its discretion to lend a higher amount on a case-to-case basis.

There will be no service charges, collateral security or third party guarantee. The interest rate would be at ‘reduced’ rates linked to the base rate of individual banks.

“The scheme is vital as the country would require 10 to 15 million skilled workers every year,” the IBA said.

GEARING UP

Banks are also ‘excited’ about the new scheme due to the small ticket loans and the assured employability angle.

“I want to promote this aggressively at all SBH branches. We will be taking the board’s approval soon,’’ Mr M. Bhagavantha Rao, Managing Director, State Bank of Hyderabad, told Business Line.

Mr B.A. Prabhakar, Chairman and Managing Director, Andhra Bank, said the bank’s board had already approved the scheme. “We have also identified various institutions offering vocational courses,’’ he added.

Canara Bank has also launched the scheme. “This is a big boost to skill development initiatives. We are sensitising the branches for speedy popularisation of these loans,” Ms Archana S. Bhargava , Executive Director, Canara Bank, said.

nagsridhu@thehindu.co.in

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Punjab & Sind Bank launches ‘tatkal’ scheme to sanction loans for corporates

Punjab and Sind Bank has launched a ‘tatkal’ scheme for sanctioning loans above Rs 25 crore for businesses.

“Everybody has a request for quick disposal of their loan applications and there is good demand especially from the corporates in this regard,’’ Mr Divinder Pal Singh, Chairman and Managing Director, Punjab and Sind Bank, told Business Line .

The loan can be applied for at any branch through a SMS with the details of company’s name, gist of proposal and the bank would get back to the customer.

“We will convey the expression of interest within 15 days from the time of first application,” Mr Singh said.

When asked on the nature of demand for loans post–RBI’s policy last week, the CMD said although key rates were not cut, the demand for corporate loans was still there.

Punjab and Sind Bank would also be fast-tracking housing and car loans, he added.

The bank would primarily focus on lending to infrastructure (roads, ports etc), tourism and hospitality industry. “Though there has been some concern, I still think there is some scope for lending even to real estate,’’ Mr Singh said.

EXPANSION

“We have been strong in Delhi and Punjab but see a need to expand in Andhra Pradesh, Tamil Nadu, Karnataka besides Maharashtra and Madhya Pradesh this year,’’ he said.

About 300 branches will be added to the existing network of over 1,000 branches. The recruitment of 1,000 probationary officers would also be taken up, he added.

“We are targeting at 25 per cent growth in the total business this year. The net interest margin might reach 3 per cent by end of December quarter,’’ Mr Singh said.

As of of March 31, 2012, the bank had a net interest margin of 2 per cent.

nagsridhu@thehindu.co.in

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Union Bank’s London arm to start operations by March

The London subsidiary of Union Bank of India is expected to be operational by March next year.

The wholly owned subsidiary of Union Bank of India, UBI UK Ltd, has already received the Reserve Bank of India’s approval and was waiting for the local regulator’s approval, according to Mr D. Sarkar, Chairman and Managing Director.

“We have registered the company. The local authority is conducting its due diligence and is going through our risk management and credit management policies. We are hopeful of receiving their approval soon and we hope to commence operations by March 2013,” he told Business Line. The bank currently has a representative office in London. While banks usually prefer upgrading their representative offices into full-fledged branches, the regulatory authority in London prefers the subsidiary channel over the branch route, he said.

“They (local monetary authority) prefer the subsidiary channel as the capital requirement is higher. Branches, they feel, can shut shops anytime, however, subsidiary companies might not do so because of the huge capital involved,” Mr Sarkar pointed out.

The bank might have to pump in $200 million (approximately Rs 1,140 crore at the current exchange rate) in phases. “The total capital requirement is close to $200 million but we can pump that in 2-3 phases as and when the business starts growing,” he said. Apart from the capital, the bank will also have to induct a local board in the company.

Union Bank has one branch in Hong Kong at present. The branch registered a total business of $2.04 billion (Rs 10,388 crore as of March). As on March 31, the deposits of the branch stood at Rs 1,207 crore (Rs 570 crore) and advances stood at Rs 9,181 crore (Rs 5,941 crore).

The branch recorded a net profit of Rs 102 crore for the year ended March 31, as against Rs 50 crore in the previous financial year.

The bank also has five representative offices in Beijing and Shanghai, Sydney, Abu Dhabi and London.

Union Bank also plans to open a branch in DIFC, Dubai, for providing offshore banking facilities to its customers. The bank is also mulling setting up a branch in Belgium.

shobha@thehindu.co.in

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Non-banking entities may open 80,000 ATMs in next 8 months

Non-banking entities, which have been allowed by RBI to operate ATMs on behalf of banks, are expected to open 60,000-80,000 automated teller machines in the next eight months.

“We expect 60,000-80,000 white label ATMs roll-out in the next 6 to 8 months,” a Finance Ministry official said.

This will help in spreading financial inclusion in unbanked areas, the official said.

At present, there are about 90,000 ATMs spread across the country. Of this, nearly one-third are owned by SBI Group.

So far, only banks are allowed to set up and operate ATMs in the country.

Recently, RBI permitted non-banking entities with a minimum networth of Rs 100 crore to set up, own and operate ATMs on behalf of banks.

The RBI in a notification said the automated teller machines (ATMs) operated by non-banking entities will be known as ‘White Label ATMs’ (WLAs).

Each of these new ATM operator will have a bank sponsoring them, RBI had said.

All services offered by regular ATMs will be available at white label dispensers as well with existing debit or credit cards issued by banks. Customers of all banks can use the new ATM network.

Non-bank entities intending to set up WLAs under these guidelines may approach RBI for seeking specific authorisation within four months from the date of issuance of these guidelines, RBI had said.

Although there has been nearly 23-25 per cent annual growth in the number of ATMs, their deployment has been predominantly in tier I and II cities.

In spite of the banks’ pioneering efforts in this direction, much needs to be done, it said, adding, there is a need to expand the reach of ATMs in Tier III to VI cities.

The RBI final guidelines had said non-bank entities proposing to set up WLAs have to apply to RBI for seeking authorisation under the Payment and Settlement Systems Act, 2007.

Five free transactions in a month as applicable to bank customers for using other bank ATMs would be inclusive of the transactions effected at the WLAs, it had said.

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