Now, over 98% households have a bank account: Adhia

The Finance Ministry on Friday said the Pradhan Mantri Jan Dhan Yojana has enabled over 98 per cent of the households in the country to have a bank account.

Addressing the media on the sidelines of banking conclave, Gyan Sangam, being held here Hasmukh Adhia, Secretary, Department of Financial Services, said, “This (figure of over 98 per cent) is based on the survey conducted by banks in different areas of the country, which were divided into service area and the wards in villages.”

According to Census 2011, there are about 25 crore households in the country. Of this, Adhia said, the banks have not been able to reach about three crore households in many of the gated townships in the country.

“They do not want to share their bank information and probably they do not also require our help,” he added.

Of the remaining 21.9 crore households, he said, banks have been able to cover over 98 per cent.

For those who are still left out, Adhia said “we are campaigning through advertisements so that they can also reach us for a bank account. The advertisement says that even if people do not have any Know Your Customer documents, they can opt to open a basic savings bank account.”

The advertisement encourages people in the know to recommend people who they know are financially excluded.

Universal financial inclusion is one of the themes of discussions at the two-day banking conclave which started on Friday.


Source : Thehindubusinessline

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Union Bank home loan offer

Union Bank of India has liberalised its home loan scheme whereby it will give additional loan to customers, who wish to shift their housing loan to the bank, for further construction or renovation. Further, since customers, who have constructed/purchased a dwelling unit with a loan from the bank, may incur various miscellaneous expenses while shifting to the new house, Union Bank will make personal loan available with liberalised norms, the bank said in a statement. Further, to promote usage of renewable sources of energy, the public sector bank said it will include the cost of solar power panel in the cost of housing project. Home loan repayment will be considered up to the age of 70 years by including the pension income of the borrower.


Source : Thehindubusinessline

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Andhra Bank’s individual identity will be protected: Officers’ Union

Andhra Bank Officers’ Union has on Thursday said any proposal to merge Andhra Bank with other banks will be contested in all possible ways.

Responding to news on the threat to bank in view of high Non-Performing Assets (NPAs), its General Secretary I. Haranath said when similar situation emerged in 1995-96, bank came back to profits within a span of 30 months.

``Like wise we definitely cross the hurdle. If we get back the debt waiver promises made by the respective State Governments in full, NPAs is not a problem for the bank,’’ he said.

Major NPAs were due to high net worth borrowers from the infrastructure which went bust on account of government policies not because of employees,’’ he added. Andhra Bank was growing fast with a pan India presence of 2,200 branches as on now and planning to open another 200 branches by March end.

``Hence, any hasty decision of GoI/MoF for mergers will be fought and the identity of the bank will be preserved by taking the support of top management, politicians, stakeholders, strong and dedicated 22,000 staff of the bank,’’ he added.

The employees would stand by the decision of the top management for any action programme formulated for recovery of stressed assets in coming months, he added.


Source : Thehindubusinessline

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Allahabad Bank revises interest rates

Kolkata-based Allahabad Bank has revised the interest rates on domestic term deposits below Rs. one crore; and for a period of one year to less then five year.

The interest rate now stands at 8.75 per cent, a downward revision by15 basis point, from the previous 8.90 per cent.

The new interest rates come into effect from January 1, 2015.


Source : Thehindubusinessline

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P Srinivas new MD & CEO of United Bank of India

P Srinivas will be the new Managing Director (MD) & Chief Executive Officer (CEO) of United Bank of India (UBI). He will take over charge from today, December 31.

Prior to assuming charge at the Kolkata-headquartered bank, he was the Executive Director of Bank of Baroda. As the ED, Srinivas had handled major portfolios such as priority sector lending, MSME advances, credit monitoring, risk management and recoveries and investor relations.

His appointment comes nearly 11 months after the then Chairman and Managing Director, Archana Bhargava, stepped down. Bhargava had stepped down in February this year citing health reasons. However, sources maintained that it was the controversy of the bank’s spiralling non-performing assets that led to her resignation.


Source : Thehindubusinessline

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