Union Bank plans kiosk banking in Kerala

Union Bank of India, the lead bank for Ernakulam and Idukki, has proposed to start kiosk banking in the State. The bank will begin the process in Ernakulam district.

In view of the direct benefit transfer rolled out in 11 districts of Kerala from July 1, the bank is in the process of providing extensive reach of banking services through these kiosks.

The bank has already tied up with Akshaya for making Akshaya kendras as banking kiosks.

Through these kiosks, people can open accounts, make remittances and withdrawals, transfer funds from one account to another etc.

Source: thehindubusinessline

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Sidbi wants Govt to convert debt into equity

Small Industries Development Bank of India, Sidbi, approached Government seeking conversion of the latter’s existing debt exposure into equity, said the organisation’s Chairman & Managing Director, Sushil Muhnot. The proposal seeks the conversion of Government debt exposure of about Rs 2,500 crore in Sidbi into equity, Muhnot said.

If the Government agrees to the conversion, it would enable Sidbi to do more equity financing, he told Business Line here. This is because a higher equity would imply increased net worth. This, in turn, would ensure higher quantum of equity financing to medium, small and micro enterprises, he pointed out.

The paid-up capital of Sidbi, which is a Government-owned entity at present, is Rs 450 crore.

To raise funds

Sidbi also plans to raise Rs 13,500 crore during the current fiscal through a mix of bonds and other instruments to fund its business activities. The financial institution is likely to disburse over Rs 40,000 crore this fiscal.

In fiscal 2012-13, Sidbi had reported a net profit of Rs 837 crore. This reflected a 47.6 per cent increase over the net profit of Rs 567 crore in the previous year.

Sidbi’s total income grew 17.23 per cent in 2012-13 to Rs 5,401 crore (Rs 4,607 crore).

srivats.kr@thehindu.co.in

Source: thehindubusinessline

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BoB employees' contribution

Employees of Bank of Baroda have contributed Rs 5 crore to the Prime Minister’s National Relief Fund. This amount was given for providing assistance to the victims of cloud burst and flash floods in Uttarakhand. It was collected through contribution of one-day salary by the employees.

Source: thehindubusinessline

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Canara Bank cuts base rate to 9.95%

Canara Bank has pared its minimum benchmark lending rate (also known as the base rate) from 10.25 per cent to 9.95 per cent. The public sector bank has also cut deposit rates by up to 50 basis points.

Banks usually give loans at a mark-up to the base rate. All interest rate changes by the bank are effective from July 8.

One basis point is equal to one-hundredth of a percentage point.

On the term deposits (of less than Rs 1 crore) side, the bank has effected a 50-basis points cut in interest on deposits of 270 days to less than one year maturity to eight per cent (from 8.50 per cent), the bank said in a notice to the stock exchange.

The new interest rates on term deposits in the 180 days to 269 days, and one year to less than two years maturity slabs are seven per cent (7.25 per cent earlier) and 8.75 per cent (9 per cent), respectively.

The new interest rate on term deposits in two maturity buckets — two years to less than three years, and three years to less than five years — will be 8.80 per cent (nine per cent).

Interest rates cut

The bank has also cut interest rates on non-resident (external) deposits (of less than Rs 1 crore) by up to 25 basis points.

The new interest rate on NRE term deposits in the one year to less than two years maturity bucket is 8.75 per cent (nine per cent).

The new interest rate on NRE term deposits in two maturity buckets — two years to less than three years, and three years to less than five years — will be 8.80 per cent (nine per cent).

After Union Finance Minister P. Chidambaram urged public sector bank chiefs to cut their lending rates at a meeting on Wednesday, banks have started taking action. Bank of India was the first to get off the block, cutting its base rate to 10 per cent from 10.25 per cent.

Source: thehindubusinessline

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Bank licences for corporates in national interest: RBI

Even as 26 applicants wait with a hope to get a banking licence, Reserve Bank of India (RBI) governor D Subbarao said that the decision to allow corporates to apply for new licences was taken after much debate.


"We debated extensively on the matter and the decision to allow corporates to apply for bank licences was done in the national interest," Subbarao said. "As Indian banks go out and open branches abroad and foreign banks come and set up operations inside the country, there is no way we cannot implement Basel III," the governor said on the need to implement global norms.

The RBI had asked banks to implement Basel III norms from the first of April this year. On the policy front, the focus of the monetary policy of the last three years was one of management post crisis.

"We now have to learn to manage policy in a globalized world. In the last five years, the world has gone through a financial crisis which has hit every country. This has shown the ferocious power of globalization," he said.

He said there is a debate around the world on the accountability and responsibility of central banks. "At RBI, we jealously guard and protect out our autonomy. But we can't demand autonomy unless we are accountable. I have suggested that the RBI governor can render accountability to a select committee from Parliament. And until then, we should render it voluntarily," he said.


Source: TimesOfIndia

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