Karnataka Bank opens financial literacy centre

Mangalore, Nov. 16: Karnataka Bank Ltd, in association with the Manipal-based Jnana Jyothi Financial Literacy and Credit Counselling Trust, opened its first financial literacy and credit counselling centre at B.C. Road town in Bantwal taluk of Dakshina Kannada district on Wednesday.

Speaking at the inauguration of the centre, Mr P. Jayarama Bhat, Managing Director of Karnataka Bank, highlighted the centre's functions and its use especially for the rural public. The centre is meant to serve the interest of customers of all banks, he said.

Inaugurating the centre, Mr A.K. Bhattacharyya, General Manager of Reserve Bank of India, spoke on the initiatives taken by the RBI and the need for financial literacy as well as financial inclusion. By this initiative, the level of knowledge among the general public could increase resulting in availing of more banking services.

The Managing Trustee of Jnana Jyothi Financial Literacy and Credit Counselling Trust, Mr D.T. Pai, laid out the objectives of the trust and the functions of the centre. He said Karnataka Bank is the first private sector bank to sponsor the opening of such a centre at block level, and reiterated the desire of the Trust to open more such centres at taluk and block levels.

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Sebi to revamp IPO process to check price manipulation

Market regulator Sebi today said it is looking at revamping the initial public offering (IPO) norms and putting in place a common KYC regulation for financial sector intermediaries.

"Whenever we find instances of violation (IPO norms), we will take deterrent action. It also calls for a relook at our entire IPO process. So we are doing that as well," Sebi Chairman UK Sinha told reporters on the sidelines of an ANMI event here.

He said very soon a regulation for centralised KYC (Know Your Customer) would be put into place for making the process easy. "We have decided to have a thorough review of our risk management system as the current system is more than 10 years old," Sinha said.

Earlier this year, the Securities and Exchange Board of India (Sebi) had decided to introduce a new short and simple form for IPO investors for increasing retail participation in the stock markets.

In the first half of the current fiscal, 30 companies have raised fund totalling over Rs 5,000 crore through IPOs.

Sources in the know of the move say that the market regulator is considering expediting the clearance of IPO offer documents. Companies have a one-year time to come out with public offers from the date of Sebi clearance.

Sinha further said that Sebi takes quick, effective and non-discriminatory action in case of market manipulation.

Speaking on the occasion, NSE Chairman and MD Ravi Narain said, "We want to have more products. But we are not interested in speculative products. However, any product which manage volatility and eliminate systems risk are welcome."

Sinha said the cost of trading has gone up in the country and that Sebi has taken up the issue with the government.

"It is now time for having a re-look at the Securities Transaction Tax (STT). Sebi has taken it up with government," he said.

The government had introduced STT in 2004 on transactions in different types of securities. The rate presently varies from 0.025% to 0.25% depending upon the type of security traded and transaction ? whether sale or purchase.

Sinha further supported the call for bringing the investments of EPFO and retirement fund to the stock market.

"I would recommend that we engage the labour leader and the trustees of such fund to tell them how the market functions," he said.

Echoing similar view, Narain said, "We should look at new pension scheme (NPS) and Employee Provident Fund to increase participation in the markets."

Source: Business Standard

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SBI opens 3 more branches in Vizag; plans 40 more in AP

Visakhapatnam, Nov. 15: State Bank of India opened three more branches in the city on Monday — one each at Arilova, Venkojipalem and Lawson's Bay Colony. The branches were inaugurated by Mr T.S. Krishnaswamy, General Manager.

At a press meet prior to the inauguration, he said the number of branches in Visakhapatnam district had crossed the hundred mark with three branches and sixty in the city. “We have at present 1,260 branches in Andhra Pradesh, with the business volume being Rs 1,30,000 crore. We have a C:D ratio of 125 per cent and 38 per cent of the credit has gone to the farm sector. We will increase the number of branches in the State to 1,300 by the end of the financial year,” Mr Krishnaswamy said.

He said the three branches opened in the city on Monday would be included in the Super Circle of Excellence region in Visakhapatnam region consisting of 24 branches with a business volume of Rs 1,650 crore, the deposits being Rs 1,000 crore and the rest being advances.

The business volume would rise to Rs 2,000 crore by the end of March in these branches. He said the Super Circle region had been introduced to serve the customers better and to face competition from the private and multinational banks.

He said a scheme called Gruha Gamya had been launched in the main branch here. The details of 30 or so major housing projects in the city would be available there and customers of the bank as well as others could access the data. They can obtain housing loans from the SBI or other banks. “We have launched the scheme two or three months ago. Our bank has got housing loan applications worth Rs 5 crore during the period. Other banks must have also benefited. We have introduced it for the convenience of the public,” he said.

SBI Express

He said a mobile publicity van christened SBI Express had been flagged off on Monday with all the publicity material. It would move around the city for two weeks or so and the marketing staff of the bank would explain to the public in different areas about the services and products of the bank.

They would take applications for loans and opening new accounts. But, he clarified, it was not a mobile bank and prospective customers would have to transact their business through one of the branches. “It is intended only to spread awareness about the bank,” he said.

In response to a question on mobile ATMs, he said one such ATM had been introduced in Goa, but it was not found workable, as there was a satellite connectivity problem. Besides, he said, there were so many ATMs of SBI in different areas that the customer would experience no difficulty.

He said the bank would open a Kohinoor branch of SBI in the city by January or so for high net-worth individuals. There was one such branch in Hyderabad and the next one would be set up here. As a prelude to opening the branch, a Kohinoor club would be set up here with such individuals.

Mr Krishnaswamy said the SBI, the lead bank in the district, was planning to set up a credit counselling centre in the rural area of the district for the benefit of the public, but the district administration should provide the site.

Mr Vidya Sagar, Regional Manager, and Mr D.S Purohit, in-charge of the branches in the three north-coastal districts, also spoke.

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Under fire, Deutsche Bank CEO may step down early

Berlin, Nov 15:The Deutsche Bank CEO, Mr Josef Ackermann’s, surprise decision to scuttle plans for becoming the supervisory board chairman and the opening of a probe against him by the Munich prosecutor has fuelled speculation that he may make way for his designated successor Anshu Jain earlier than expected.

Mr Ackermann’s term expires next year, but it will be untenable for him to continue at the helm of Germany’s largest bank if charges that he made fraudulent statements before a court are substantiated, according to financial market analysts in Frankfurt.

His image as Germany’s top banker has already been tarnished by a police raid on his office last week as well as by the opening of a new investigation against him in connection with the ongoing court case about the compensation claims of the Munich-based Kirch Media company, which went bankrupt about 10 years ago, they said.

Deutsche Bank’s supervisory board had on July 26 named India-born Anshu Jain as co-CEO together with his management board colleague Mr Juergen Fitschen to succeed Mr Ackermann when he leaves office in May next year.

The bank’s leadership had also agreed that Mr Ackermann will replace present supervisory board chairman Mr Clemens Boersig, who will retire in May, one year ahead of his term expiring.

However, Deutsche Bank announced unexpectedly on Monday evening that he will not become a member of the supervisory board.

Mr Ackermann, 63, has informed the supervisory board that he will no longer be available as a candidate for the supervisory board when he leaves the management board, Deutsche Bank said in a press statement.

He told the supervisory board that the extremely challenging conditions in international financial markets and in the political-regulatory environment demanded his full attention as chairman of the management board.

This will not give him enough time for dialogue with individual shareholders, the statement said.

Subsequently, Mr Paul Achleitner, the management board member of Allianz, was nominated as chairman of the supervisory board to succeed Mr Boersig, the statement said.

It made no mention of the investigation against Mr Ackermann or the police raid on his office.

However, media reports said a team of investigators searched the offices of Mr Ackermann and other management board members and the bank’s legal department in Frankfurt between Tuesday and Friday.

They also raided the private residence of former Deutsche Bank CEO Rolf Breuer.

These investigations will be continued, the reports said.

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Karnataka Bank's branch network may cross 500 this fiscal

Mangalore, Nov. 15: Karnataka Bank Ltd is targeting a total branch network of 550 branches by March 2013, according to Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank.

Speaking on the sidelines of the inauguration of the new premises of the Hampankatta branch of the bank in Mangalore on Tuesday, Mr Bhat said that the bank has 486 branches in the country.

RBI licence

The bank is planning to approach the RBI for licences to open 60 more branches.

“We want to cross a branch network of 500 by March 2012, and 550 by March 2013,” he said.

Launching the CASA (current account savings account) mobilisation campaign of the bank on the occasion, he said that the bank wants to open 5.25 lakh accounts during the campaign period.

The campaign, which started on Tuesday, will be in force till February 29.

SB interest

Asked if the bank is increasing interest rates for savings bank (SB) accounts following its de-regulation by RBI, he said the bank will wait and watch before taking any decision on this matter.

Speaking at the inauguration of the new premises of the branch, Mr Jairama Hande, General Manager of the bank, said that the bank expects business to touch Rs 55,000 crore during the current financial year. Several new schemes have been introduced for the benefit of customers, he added.

The Hampankatta branch, which was shifted to its new premises on Tuesday, is one of the oldest branches of the bank in Mangalore, he added.

Mr N. Yogish Bhat, Deputy Speaker of Karnataka Legislative Assembly, inaugurated the new premises of the branch and the 300th ATM of the bank on the occasion.

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