Corporation Bank shareholders approve preferential share allotment

The extraordinary general meeting of shareholders of Corporation Bank has approved the preferential allotment of shares to the Government of India.

The bank informed the Bombay Stock Exchange that the meeting on Friday approved the issue of 47,85,137 equity shares of the bank of face value Rs 10 each at a premium of Rs 416.32 per equity share to the Government of India. With this, the issue price of the share stood at Rs 426.32.

The preferential allotment of shares to the Government will help bank raise Rs 203.99 crore.

The bank informed the exchange that the resolution of preferential allotment of shares was passed unanimously.

On Friday, the bank scrip closed at Rs 398.45, down 0.25 per cent, against the previous close of Rs 399.45.

vinayak.aj@thehindu.co.in


Source: thehindubusinessline

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IRDA forms panel to review insurance broker norms

The Insurance Regulatory and Development Authority (IRDA) is set to overhaul the insurance brokerage soon.

It has constituted a committee headed by Suresh Mathur, Senior Joint Director, IRDA, to review the entire insurance brokers’ regulations, 2002.

“`Since a decade is passed after the notification of regulations, it is felt to review the existing practice,’’ T.S. Vijayan, Chairman, IRDA, said in an order.

There is also a need to evolve a standardised process to assess the gravity of violation (of norms) and imposition of appropriate penalties while processing the renewal of insurance broker licences, he added.

As of today, there are 345 insurance brokers who were issued licence by the regulator. The licence is valid for three years from the date of issue.

The committee would submit its report on or before April 30, 2013.

naga.gunturi@thehinduco.in


Source: thehindubusinessline

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ICICI, HDFC Bank, Axis probing money laundering accusations

India's top private sector lenders ICICI Bank Ltd, HDFC Bank Ltd and Axis Bank Ltd said they were investigating allegations of widespread money laundering practices at their branches.

The shares of the banks fell briefly on Thursday after the independent investigative journalist, Aniruddha Bahal, made the accusations in a news conference televised by a local TV station in the morning.

Bahal, founder and editor-in-chief of Indian news and opinion website Cobrapost.com, said he had collected hundreds of hours of video recordings from "dozens and dozens" of bank branches across the country. He did not say when the recordings were compiled.

An article on the website posted on Thursday said an associate editor, using an alias and pretending to work for a fictitious politician who wanted to launder money, sought advice from bank officials on how to do it.

The article said branches across all the three banks suggested laundering methods that were "imaginative in their range and brazen in their approach."

In one case, Bahal said, a video excerpt on his website showed an HDFC Bank official explaining to an undercover reporter for Cobrapost.com different methods to launder money.

It said Cobrapost.com offered to hand over the videos to law enforcement officials or regulators. The article did not say if the recordings were eventually passed on to the authorities.

Market regulator Securities and Exchange Board of India had no comment on the matter, according to a spokesman.

'DEEPLY CONCERNED'

ICICI Bank told Reuters that it was "deeply concerned" about the accusations.

In a statement, it said: "ICICI Group conducts its business with the highest level of compliance to legal and regulatory requirements. All employees of the Group are trained and required to adhere strictly to the Group Code of Conduct... We have demonstrated our commitment to this by following a zero tolerance policy towards any violation."

"We have constituted a high level inquiry committee to investigate into the matter and submit its findings in two weeks."

HDFC Bank was investigating the matter on "top priority."

"Any deviation is viewed very seriously and stringent action is taken both at an organizational and employee level," the bank said in a statement.

Axis Bank also said it would investigate.

"Axis Bank has systems and processes that are robust and fully compliant with extant regulations. We will examine whatever information that is brought to our notice and investigate thoroughly," the bank said in a statement.

Axis Bank shares rose 1.1 percent as of 0728 GMT after earlier dropping as much as 3.5 percent.

ICICI Bank shares gained 2.3 percent after earlier falling over 2 percent, while HDFC Bank was up 1.7 percent, also recovering from earlier declines.

The shares recovered after government data showed core inflation rose less than anticipated, reinforcing expectations that the central bank will deliver an interest rate cut next week to boost the economy.


Source: Economictimes

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Nabard sanctions Rs 30.61 cr for godowns in Haryana

The National Bank for Agriculture and Rural Development (Nabard) has sanctioned a loan of Rs 30.61 crore to the Haryana State Warehousing Corporation for construction of nine foodgrain godowns with a storage capacity of 97,796 tonnes.

These facilities will be set up in Jind, Hisar, Kaithal, Palwal, Karnal and Panipat under the Rural Infrastructure Development Fund (RIDF)-XVIII 2012-13, said K. Sayeed Ali, Chief General Manager, Nabard (Haryana).

“The construction of these godowns will benefit farmers of 24 villages attached to nine mandis of these districts, storing food grains harvested by the farmers in a scientific and hygienic manner,” he said.

The construction of new godowns would reduce post-harvest loss of grains to an extent of about 6 per cent. The implementation of the project by HSWC would also generate about 6.12 lakh man-days of non-recurring employment and around 51 man-days of recurring employment, he said.

With this, Nabard has sanctioned RIDF loans of Rs 348 crore till date during 2012-13.

The total RIDF assistance sanctioned to the State Government and HSWC under RIDF, since inception of the RIDF in 1995-96, has now reached to Rs 3,857 crore and an amount of Rs 2,507 crore has been disbursed.


Source: thehindubusinessline

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Canara Bank plans 10 all-women branches

Canara Bank with a focus on women clientele is planning to open 10 all-women employee branches across the country.

According to R.K. Dubey, chairman and managing director of the bank, processing charges for home and vehicle loans for women will be waived from March 1, 2013, to May 31, 2015.

The bank has also begun new initiatives such as waiver of promoter’s contribution and providing 100 per cent finance for micro and small projects up to Rs 1 lakh for empowerment of women.

“We also plan to waive processing charges and upfront fee for loan up to Rs 5 lakh under micro and small projects. Also we have reduced the interest on loans to women up to Rs 5 lakh to base rate of interest i.e. 10.25 per cent at present,” said Dubey.

In order to encourage entrepreneurship and reward successful women entrepreneurs, Dubey said the bank is launching ‘annual award scheme’ for successful women entrepreneurs financed by the bank with three cash awards of Rs 25,000, Rs 50,000 and Rs 1 lakh.

A.K. Gupta, executive director of the bank, exchanged documents with Dilip Chenoy, the managing director and CEO of NSDC, in New Delhi to mark the formal launch of the project.

The bank has partnered with National Skill Development Corporation (NSDC) for skill development and recruitment of graduate unemployed youth of Jammu & Kashmir State under ‘Udaan’ – a special industry initiative of Ministry of Home Affairs for Jammu & Kashmir.

As a corporate social responsibility (CSR) initiative, Canara Bank is also planning to take up a project for construction of toilets in 130 schools for girls, five each in all 26 lead districts of the State, with a financial outlay of Rs 1 crore.

The bank as a CSR activity donated Rs 5 lakh to SGS Hospital, Mysore, for its expansion programme. Dubey handed over the cheque to Shri Ganapathy Sachchidananda Swamiji.

Recently, Dubey called on Chief Minister Jagadish Shettar and discussed with him various developmental issues connected to the State and assured him cooperation from Canara Bank. The Chief Minister also promised all support to the bank.

anil.u@thehindu.co.in


Source: thehindubusinessline

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