|
13 July 2002 Dividend for Cangilt investors
Mumbai: Canbank Mutual Fund has declared the eleventh tranche of its income distribution in the Cangilt (PGS) scheme under the income plan. Investors under the scheme are now eligible for 3 per cent on the face value of Rs 10.
Kalpatharu Grameena Bank to target non-farm sector - Hopes to post Rs 5-cr profit
Bangalore: The Kalpatharu Grameena Bank plans to wipe out accumulated losses of over Rs 2.75 crore and make a profit of Rs 5 crore this year. To this end, the bank is focussing on the non-farm sector in Bangalore Urban and Bangalore Rural districts
RBI gets tough with banks - Lending rate disclosure to be made mandatory
Mumbai: The Reserve Bank of India has decided to make it mandatory for all commercial banks to disclose their maximum and minimum lending rates, including sub-PLRs, on a fortnightly basis.
RBI directive on return of deposits
Mumbai: Non-banking non-financial companies do not have to submit their return of deposits to the Reserve Bank of India, a press release has said.
Foreign currency a/c norm for SEZ unit relaxed
Mumbai: The Reserve Bank of India has permitted a unit located in a special economic zone (SEZ) to open, hold and maintain a foreign currency account with an authorised dealer in India.
SBI tightens norms for corporates
Mumbai: In the wake of a series of international accounting scandals, the State Bank of India (SBI) has tightened due diligence procedures on corporate borrowers.
Cleaning up process again for revamp - IFCI orders NPA categorisation
Mumbai: Cleaning up work has started at IFCI Ltd. With fresh lending coming to a virtual halt for some time on account to acute liquidity crisis, the focus has clearly shifted towards tackling the crippling burden of past non-performing assets
Securities lose early gains
Mumbai: The RBI on Friday announced an auction of a new 10-year paper worth Rs 3,000 crore on July 17, with a `call and put' option. There is another 8.07 per cent 2017 paper worth Rs 4,000 crore for auction on the same day.
`Ordinance must help recover problem assets'
Mumbai: Fitch Ratings India has said that the ordinance on securitisation may lead to an improvement in the financial position of lenders, especially if its implementation prompts more recoveries of their "problem assets'.
Deposit rate cut likely
Mumbai: While the new Finance Minister, Mr Jaswant Singh, has given some hope to the people with his now-famous `more money in the housewife's purse' remark, banks in the country are thinking of reducing the deposit rates
Rabo India Fin to set up retail bank with agri focus
Mumbai: Rabo India Finance, Indian arm of Dutch co-operative major Rabobank, will set up a separate commercial and retail bank shortly to accelerate giving credit facilities to the agri sector and is also having talks with Nabard for a series of joint activities.
Firm rupee unlikely to hit exports
Mumbai: A stronger rupee is unlikely to hurt Indias exports this year as accelerating global growth could ensure greater demand, while cheaper imports could help a nascent industrial recovery at home.
ADB wants to sell 14% stake in SBI Caps
Mumbai: Asian Development Bank (ADB) is exploring the possibilities of selling its 14-per cent stake in SBI Capital Markets Ltd, the investment-banking arm of State Bank of India (SBI). ADB has informally informed SBI of its intention to exit from SBI Caps. But no final decision has been taken so far. Currently SBI holds 86 per cent of equity in SBI Caps and the remaining 14 per cent is held by ADB, which took the stake at Rs 89 per share a few years ago.
Sources familiar with the development say ADB picked up stake in SBI Caps under the condition that the investment bank would go public after some years of its operations. But even after 16 years since its commencement, the SBI subsidiary has not been able to announce its initial public offering. ADB feels under the current circumstances, SBI Caps will not go public in the near future. Besides, for the past few years, the business volumes of SBI Caps have reduced considerably. The merchant bank had plans for a public issue in 1997, which would have reduced SBIs stake to 51 per cent before this fiscal. However, this was put on the backburner owing to difficult market conditions at that time. ADB, which had shown keen interest in picking up stake in Industrial Finance Corporation of India (IFCI) recently, has put IFCI privatisation as a precondition for picking up stake. The sources say SBI Caps is still globally hunting for a strategic partner, an exercise started around five years back.
The investment bank is still looking at all options, including strategically placing a portion of its equity with a foreign investment bank, to cash in on the increased international activities of the domestic companies and their desire for an increased global presence, the sources add. Currently all leading domestic merchant bankers, except SBI Caps, have tie-ups with foreign investment bankers, and this has helped them in cornering the bulk of the overseas business of Indian companies. Kotak Mahindra has tied up with Goldman Sahchs, JM Financials has a joint venture with Morgan Stanley and DSP has a partnership with Merrill Lynch. BoR takes action against unruly defaulters
Mumbai: Bank of Rajasthan (BoR) has initiated strong actions against all its recalcitrant defaulters, including the Bangur group, for recovery of dues.
The bank management has filed criminal and civil cases in various courts and debt recovery tribunals against the defaulters and has started taking over the management control of the corporate defaulters, on a war footing.
The first victim was Rajasthan Breweries Ltd (RBT). The bank has taken over the management control of RBT and invited tenders to sell or lease out the business of the defaulter. RBT owes around Rs 16 crore to BoR.
BoR chairman Pravin Kumar Tayal says: We have taken over the management control of RBT. We will continue similar kind of action against all our defaulters.
BoRs move is based on the recent powers given by the finance ministry to the banks under a new ordinance called Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002. The ordinance gives banks sweeping powers to tackle defaulters. The banks can now change or take over the management, supersede the board of the company, sell or lease out the business of the defaulting borrowers, and take possessions of the secured assets. BoR has also filed 185 cases against the Bangurs, the former promoters of the bank, in New Delhi, Jaipur and Kolkata for recovery of dues. Currently various other options are being explored by BoR to recover the dues from the Bangur group, including attaching the groups properties and taking possession of assets, such as securities owned by the Bangurs.
Tayal says the Reserve Bank of India (RBI) has asked BoR to check all the legal aspects of the action against the Bangurs. BoR sources say the Bangur group owes around Rs 3 billion to the bank, which were advanced as loans. Taking into account the interest over the last seven years, the Bangurs have to pay over Rs 6 billion. In its communication to BoR, the sources say, the RBI has stressed recovering the amount from the Bangur group. The banks efforts in recovery of non-performing assets (NPAs), in particular from the Bangur group, are far from satisfactory, jeopardising the financial position of the bank, says the RBI.
The RBI has also directed BoR to place the letter before the board of directors for initiating appropriate measures urgently. It demanded that the progress in initiating criminal proceedings, particularly against the Bangur group of companies, be intimated to the central bank periodically.
Tayal says from the financial year 1999-2000 to 2001-02, the bank had recovered Rs 1.5 billion from its major corporate defaulters.
The RBI move did not surprise the banking industry because the central bank was not happy with the way the Bangurs ran BoR. The present management of the Tayals had the RBIs support to take over BoR. For 2001-2002, the bank had set a target of recovering Rs 70 crore in NPAs from corporate borrowers, but was able to recover just Rs 25 crore. Global Trust Bank starts e-banking kiosks
Hyderabad: Global Trust Bank (GTB), one of Indias leading new private sector banks, has launched its e-banking kiosks. The e-banking kiosk is based on innovative technology that enables customers perform all their banking transactions in complete privacy and in a secure manner. To begin with the e-banking kiosks will be deployed at select GTB branches and ATM centres and will be extended shortly to cover all cities in India. GTB has an existing network of 100 branches with over 200 ATMs in 33 cities. The e-banking kiosk in Hyderabad was formally inaugurated by Satyam Computer Services Ltd chairman Ramalinga Raju. GTBs e-banking kiosks offer multiple facilities to its customers. Apart from being able to carry out most of their banking transactions, customers can use the kiosks to make payments against their utility bills, insurance premiums, etc. GTB has already tied up with Life Insurance Corporation, www.rediff.com, www.sify.com, www.fabmart.com, Airtel, Escotel and e-Seva (Andhra Pradesh state governments e-governance project). Thus GTBs e-banking kiosks will become the one-touch point for its customers to conduct banking transactions as well as to effect payments. We realised that lack of easy Internet access was preventing customers from exploiting the very powerful, convenient and cost-effective medium of Internet banking. This led us to introduce e-banking kiosks, which facilitates both banking and payment transactions electronically, and inculcates the habit among customers to use technology that is very friendly yet secure. We believe that customers will see value in transacting online at the e-banking kiosks and migrate increasingly to such self-service modes of banking in the future, says GTB president P C Narayan. The state-of-the-art e-banking kiosks are developed exclusively for GTB by NFK Cyber-Kiosk, a Mumbai-based company.
Proton global debit cards from GTB stable
Hyderabad: Global Trust Bank (GTB), Indias leading private sector bank, has launched Visa Electron - an online debit card under the brand name Proton. With Visa Electron, GTB debit cardholders will enjoy unsurpassed global acceptance, convenience and versatility. The debit card is accepted at 10 million merchant outlets and 750,000 ATMs worldwide, including 40,000 Visa Electron merchant outlets and 2,500 Visa ATMs in India. Visa Electron allows consumers direct electronic access to their bank accounts from anywhere in the world. It addresses the growing consumer desire to use electronic payment in place of cash. It is ideal in the current climate, when customers need a payment system that provides security and convenience, as it is protected by the same extensive international risk management systems as Visa credit cards. GTBs Proton International Debit Card was launched by Andhra Pradesh Home Minister T Devendar Goud. Pullela Gopi Chand, the All-England Badminton Champion, was the first recipient of the GTB Proton International debit card. Debit cards are increasingly becoming the preferred payment mode internationally. We propose to offer Proton debit cards free to customers who maintain a pre-specified average quarterly minimum balance. It will also be offered free to our corporate salary account customers, says GTB managing director Sudhakar Gande. Says Visa International country manager (South Asia) Santanu Mukherjee: The potential for debit cards in India is enormous and the consumer base of debit cards will grow much faster than credit cards. First introduced in India in 2000, Visa Electron is ideal for both consumers and merchants here as it offers buyers a new payment alternative while working on the existing infrastructure of sellers. Visa Electron numbers have already crossed the 1.5 million-mark and this partnership with GTB will significantly grow the base of Visa Electron cardholders in India. GTB accountholders will now be able to experience the convenience, flexibility and safety associated with a Visa Electron, says Mukherjee. Proton global debit cards from GTB stable
Hyderabad: Global Trust Bank (GTB), Indias leading private sector bank, has launched Visa Electron - an online debit card under the brand name Proton. With Visa Electron, GTB debit cardholders will enjoy unsurpassed global acceptance, convenience and versatility. The debit card is accepted at 10 million merchant outlets and 750,000 ATMs worldwide, including 40,000 Visa Electron merchant outlets and 2,500 Visa ATMs in India. Visa Electron allows consumers direct electronic access to their bank accounts from anywhere in the world. It addresses the growing consumer desire to use electronic payment in place of cash. It is ideal in the current climate, when customers need a payment system that provides security and convenience, as it is protected by the same extensive international risk management systems as Visa credit cards. GTBs Proton International Debit Card was launched by Andhra Pradesh Home Minister T Devendar Goud. Pullela Gopi Chand, the All-England Badminton Champion, was the first recipient of the GTB Proton International debit card. Debit cards are increasingly becoming the preferred payment mode internationally. We propose to offer Proton debit cards free to customers who maintain a pre-specified average quarterly minimum balance. It will also be offered free to our corporate salary account customers, says GTB managing director Sudhakar Gande. Says Visa International country manager (South Asia) Santanu Mukherjee: The potential for debit cards in India is enormous and the consumer base of debit cards will grow much faster than credit cards. First introduced in India in 2000, Visa Electron is ideal for both consumers and merchants here as it offers buyers a new payment alternative while working on the existing infrastructure of sellers. Visa Electron numbers have already crossed the 1.5 million-mark and this partnership with GTB will significantly grow the base of Visa Electron cardholders in India. GTB accountholders will now be able to experience the convenience, flexibility and safety associated with a Visa Electron, says Mukherjee. 12 July 2002
American Express Bank opens new branch in Bangalore
American Express Bank on Thursday opened its fifth branch in India at Bangalore. The bank has branches in four metros. The Chennai one was the last to come into being in 1992. In Bangalore, the bank is currently present in consumer and corporate cards, travellers cheques, business travel and consumer loans.
HDFC increases stake in Gruh Finance
Housing Development Finance Corp has purchased around 18 lakh shares of GRUH Finance from ACC thereby increasing its stake in Gruh Finance from 54.5% to 61.3%. "ACC wanted to sell its holding and instead of letting the shares be sold in the open market we decided to acquire them. There is nothing more to the deal," said Keki Mistry, managing director, HDFC.
LIC Housing Fin contemplates ADR/GDR Issue
LIC Housing Finance (LICHF) is exploring possibilities of an ADR or GDR issue after one-two years to raise cheaper funds for carrying out its future expansion. "We may have to consider ADR/GDR issue to raise cheaper funds. We are still discussing it. We will take the approval from the LIC board once it is finalised," official sources said.
OM Kotak targets Rs 65-crore premium income
OM Kotak Mahindra Life Insurance Company Ltd, the 74:26 joint venture between Kotak Mahindra and Old Mutual, is targeting Rs 1,300 crore of sum assured and Rs 65 crore of premium income. Mr Shivaji Dam, Managing Director, stated this at a press conference to mark the launching of Kotak Child Advantage Plan. Mr Hasan Askari, Director of OM Kotak Mahindra Life Insurance and an advisor of Old Mutual Plc for emerging markets, was also present at the meeting.
Jaswant Singh on IMF board
The Finance Minister, Mr Jaswant Singh, has been appointed India's Governor to the International Monetary Fund (IMF). The Finance Minister is the ex-officio Governor on the board of Governors of the IMF. The appointment of Mr Singh follows the recent Cabinet reshuffe.
ABN-AMRO launches 2 credit cards
ABN-AMRO Bank (India) has launched two globally valid credit cards in association with Mastercard, called `Smart' Gold Card and `Freedom' Silver Card.
Bajaj Allianz launches mediclaim with cashless claim facility
Bajaj Allianz General Insurance has launched its first mediclaim policy with a cashless claim settlement facility. An insured under this policy can avail of cashless treatment from 41 hospitals across the country to the extent of sum insured and for ailments that are covered.
11 July 2002 SBI chief faces contempt of court charges
Bangalore: A division bench of the Karnataka High Court has directed the State Bank of India chairman and 10 other officers to stand trial on contempt of court charges for producing "fabricated" documents in a voluntary retirement scheme (VRS) case. Justices M F Saldhana and N K Patil have taken a serious view of production of "totally fabricated" and two false affidavits by the bank in an extremely serious litigation. The two judges have issued contempt notices and refused to drop the proceedings despite elaborate arguments put forth by Additional Solicitor General of India A R Rohtagi, who appeared for the bank. The case had originally come up before a single bench, in which one of the officers had questioned the eligibility of certain officers for the VRS. The single judge directed SBI to re-examine all the applications and take a fresh decision on 30 March 2001. SBI, however, went on an appeal against the order and one of the officers took out contempt proceedings on the ground that the bank had failed to comply with the court directions. Jaswant to review asset recovery ordinance
Bangalore: Finance Minister Jaswant Singh says the government is planning to modify the ordinance on non-performing assets to incorporate safeguards for borrowers. Singh says the ordinance is already part of the legislative process, but while conversion of the ordinance into a bill is being done, there is a great deal that could be done to improve it. Confederation of Indian Industry president Ashok Soota says the terms of the ordinance need to be reviewed as it as "veered too much in favour of lenders." FICCI president R S Lodha says the clauses asking defaulters to deposit 75 per cent of their dues before being allowed to appeal and the absence of demarcation between wilful and non-wilful defaulters need to be rectified. Finance ministry officials say they are contemplating clauses to separate wilful defaulters by allowing stringent recovery procedures against them. UTI Bank Q1 net increases 42% to 36 crore
Mumbai: UTI Bank has reported a 42-per cent increase in net profit for the first quarter ended 30 June 2002 at Rs 35.98 crore as compared to Rs 25.36 crore in the corresponding quarter of the preceding fiscal. The banks net interest income improved 117 per cent to Rs 59.88 crore (Rs 27.61 crore), while its fee-based income rose by 48 per cent to Rs 33.77 crore (Rs 22.88 crore). The trading income, however, was down by 68 per cent to Rs 25.10 crore (Rs 78.02 crore). Says UTI Bank chairman and managing director P J Nayak: "The bank has reduced its cost of deposits substantially by focusing on savings-account deposits. A combination of increasing spreads and rising assets-base has seen growth in interest income. The bank has a retail customer base of 1.17 million and is adding 40,000 savings accounts every month." The advances of the bank grew by 58 per cent to Rs 6,335 crore (Rs 4,019 crore). On the deposits front, the banks savings-account deposits rose by 51 per cent to Rs 972 crore (Rs 644 crore), while current-account deposits increased by 22 per cent to Rs 873 crore (Rs 713 crore). The capital adequacy ratio of the bank was at 9.29 per cent as on 30 June 2002, compared with 10.65 per cent as on 31 March 2002. LICs Bima Nivesh plan to have risk cover
Mumbai: Life Insurance Corporation of Indias (LIC) single-premium investment plan, Bima Nivesh, will now feature an add-on risk cover. The benefit is in the form of a triple-risk cover built into the policy. The new Bima Nivesh will be available only for a 10-year period with a triple cover attached. There are also some changes in the age limits and terms. While the minimum age of entry continues to remain 18 years, the maximum age of entry has now been brought down to 50 years from the earlier 70. Contributions towards Bima Nivesh enjoy tax rebate under section 88. Also, the maturity proceeds and guaranteed additions paid on maturity are tax-free under section 10D of the IT Act. This section states that all the payments received from insurance, except annuity, will be tax-free in the hands of an individual. The minimum amount that can be invested for a 10-year policy is approximately Rs 24,025 for Rs 25,000 sum assured. There is also a high-premium rebate equal to 1 per cent of the basic premium on premium in excess of Rs 25,000; 1.5 per cent of the basic premium on premium in excess of Rs 50,000; and 2 per cent of the basic premium on premium in excess of Rs 2 lakh. No loan is provided by LIC to the policyholder under this plan. However, there will be a provision for assignment in order that the policyholder may draw a loan from other financial institutions. To cite an example, the premium on a Bima Nivesh policy of Rs 50,000 for 10 years will work out to Rs 47,820. The life cover will be Rs 1.5 lakh, while the amount payable on maturity will be Rs 98,497 (6.48 per cent yield), which will be tax-free. Likewise, for a Bima Nivesh policy of Rs 1 lakh, the premium will be Rs 95,159. The life cover will be Rs 3 lakh, while the amount payable on maturity will be Rs 1,79,085 (6.53per cent yield). Besides, Bima Nivesh is also the only instrument, which offers the section 88 benefits with a minimum lock-in-period of two years. The best part is that the facility of premature withdrawal comes with not a very harsh penalty. The policy can be surrendered for cash at any time after one year at a special surrender value and there are no deductions if the policy is surrendered any time after three years. But if it is surrendered within two years of its commencement the section 88 relief on contributions paid will not apply as per the current income tax rules. To cite an example, for the above 10-year policy for Rs 50,000, the surrender value after two years will be Rs 46,629; at the end of three years it will be Rs 50,618; and at the end of five years it will be Rs 59,551. This facility of premature encashment after one year is not available in other instruments, like PPF and other LIC policies or even National Savings Certificate. 10 July 2002 HDFC Securities launches Dial a Share service
Mumbai: HDFC Securities on Tuesday launched the Dial a Share service, which enables a customer to call a toll-free number and place his order for buying or selling a share. This service is available to registered customers.
More UTI schemes to come under SEBI ambit
Mumbai: More schemes managed by Unit Trust of India are expected to come under the purview of the Securities and Exchange Board of India, initially on a voluntary basis. Already, 12 UTI schemes have such an arrangement.
Investor awareness of MFs must be raised
Mumbai: Working within the strict regulatory environment and conforming to the standards that match global requirements, the Indian mutual fund industry is poised for a sustained growth in the coming years, A P Kurian, chairman, Association of Mutual Funds of India, said.
Sebi asks AMFI to prepare report on real estate MFs
Mumbai: The Securities and Exchange Board of India has proposed to the Association of Mutual Funds of India to prepare a report on the introduction of real estate mutual funds, Sebi Chairman G N Bajpai said.
Surveyors want IRDA cap on business eased
New Delhi: IRDA has stipulated that a surveyor can undertake work in a maximum of three departments out of the various segments. These include fire, engineering, motor, miscellaneous, marine cargo, marine hull and loss of profit.
Foreign firms, NRIs allowed to open term deposit A/Cs
Mumbai: The Reserve bank of India has permitted authorised dealers to open term deposit accounts in favour of foreign firms with branches or offices in India and also for non-resident Indians for a period of six months.
NPAs continue to haunt banks
Mumbai: The bugbear of non-performing assets continue to haunt public sector banks. In fiscal 2001-02, 24 public sector banks added Rs 11,180 crore of gross non-performing loans. That was almost twice the profits of Rs 5,675 crore.
CDR: All bark, no bite
Mumbai: Corporate debt restructuring, prompted by the Reserve Bank of India in 2001, never passed the stage of official circulars. Now the central bank has set up a high-level group under Vepa Kamesam, deputy governor, RBI, "to review the operations of the CDR."
StanChart adds more glitter to Gold Card
Mumbai: Standard Chartered Bank has introduced a series of benefits and services on its Gold Card for all its new and existing card members. Standard Chartered and Standard Chartered and Grindlays Gold card members can now avail themselves of the new card.
Banks wait to step into call market
Mumbai: Banks are vying for a share of the Rs 450 crore pie that is going to be up for grabs as and when financial institutions move out of the call money market.
Nabard links refinance for DCCBs, RRBs to NPAs
Mumbai: Nabard has linked its quantum of refinance for district central cooperative banks and regional rural banks to their non-performing assets from this current fiscal.
State Bank of Bikaner and Jaipur announces 40% dividend
Jaipur: State Bank of Bikaner and Jaipur on Tuesday announced a 40-per cent dividend on an all-time high net profit of Rs 165 crore during the year 2001-02.
Bank lawsuits weaken monetary policy
Mumbai: Frustrated at a failure to convince Argentine depositors to swap savings for government bonds, economy minister Roberto Lavagna lashed out on Monday against lawsuits bleeding the financial system.
State Bank of Mysore to open more branches
Chennai: At a time when several nationalised banks are closing their unviable branches, State Bank of Mysore is opening new ones. After opening two new branches in recent times in Tamil Nadu, the bank now plans to open one each in Mumbai and Kolkata. We will soon become a national bank with more focus on the southern part of India, says State Bank of Mysore chief general manager Niranjan Bardalai. Currently the bank has 606 branches.
With competition for corporate business being fierce, resulting in wafer-thin spreads for banks, State Bank of Mysore has decided to lend aggressively to the retail segment. Our strategy is to reduce our dependence on the corporate sector and increase our retail advances. We have been neglecting the trading community and this will be corrected, says Bardalai.
He says his bank will soon launch loan products for traders, educational loans for students and housing loans. At the end of the last fiscal the banks total advances portfolio stood at Rs 5,173.97 crore, while the total deposits were Rs 8,207.24 crore. Our cost of fund is 7.61 per cent and we get a spread of 3.13 per cent, he adds.
About the banks non-performing assets (NPA) Bardalai says the bad performance of coffee and coconut industries impacted the banks recoveries and consequently the NPA levels a bit. The gross NPA declined to 12.07 per cent from 12.83 per cent and the net NPA to 7.36 per cent from 7.65 per cent.
Like all other nationalised banks, State Bank of Mysore, too, had a bumper treasury revenue of Rs 72 crore last year. Trading profits will come from volatility in the securities market. Now we have a set of officials to monitor the market, he says.
The banks net profit in the last financial year shot up to Rs 65.89 crore from the Rs 25.72 crore registered during 2000-01. For the current fiscal the bank has fixed a profit target of Rs 130 crore. About the chances of achieving the same, as lending rates are coming down and the possibility of earning bumper profits from treasury operations being remote, Bardalai says: Our advances are set to go up. Further, lending to the retail segment gives us higher spreads, which in turn will help to achieve the targeted profit.
9 July 2002
IDBI-Principal investing in foreign securities
Mumbai: IDBI-Principal Asset Management Company has joined the growing club of Indian mutual funds that are taking advantage of the recent policy decision allowing mutual funds to invest in rated foreign securities.
Three companies shortlisted for financial district project in Karnataka
Bangalore: Among Karnataka's dream is a plan is to set up an exclusive financial district in the city - on the lines of Mumbai's Bandra Kurla zone - which will be abuzz with financial institutions, banks, insurance companies and venture capitalists.
PNB Housing reduces interest rates
Mumbai: PNB Housing Finance Ltd has reduced interest rates on home loans for resident and non-resident Indians by 25 basis points for different slabs. For the seven-year fixed rate loan, the interest would now be 10.25 per cent per annum.
IDBI walks away from Tata Home
Mumbai: While IDBI was willing to acquire Tata Home Finance after due diligence, the Tatas' bid to include the scandal-ridden holding company, Tata Finance, as well drove IDBI away from the deal.
Bajaj Allianz named lead insurer for RTPS 4th unit
Mumbai: With this latest award, BAGICL has revised its premium income target for the current financial year. It has now raised its target to Rs 300 crore, up by Rs 100 crore.
Focus on rural healthcare insurance
Bhopal: The need to implement the managed care mode of rural healthcare insurance was emphasised at the workshop on Community Health Insurance Scheme of the government of Madhya Pradesh.
Pru ICICI to launch foreign debt fund by September
Mumbai: Prudential ICICI Mutual Fund plans to launch a new fund that provides investors an opportunity to invest in the foreign debt market by September-end 2002. The asset management company is expected to file the draft offer document soon.
Bharat Overseas goes for IT upgradation
Mumbai: The private sector Bharat Overseas Bank Ltd has embarked on a major IT upgradation by computerising its branches to introduce a centralised banking solution with a database apart from offering various services to its customers.
Union Bank cash management services launched
Mumbai: Union Bank of India has launched its cash management services at 35 centres in India. Through the CMS, the bank is targeting volumes of Rs 2,000-3,000 crore in the current year and plans to increase the number of clients covered.
SBM to focus on services sector
Mumbai: State Bank of Mysore is looking at advances to traders -- including the service sector -- and the retail segment as a focus area and looking to improving quality of service through technology infusion and human resource skill management.
SBI launches SmartGold with IOC
Mumbai: State Bank of India jointly with Indian Oil Corporation has launched SmartGold, a double benefit card that can be used both as an ATM and pre-paid card. The card can be used for purchase of petrol, diesel and servo engine oils at 48 IOC centres.
25% wage hike sought for clerks
Mumbai: In its charter of demands on wage revision submitted to the Indian Banks' Association, the National Organisation of Bank Workers has demanded a 25-per cent increase in wages for the clerical staff.
HDFC Bank kicks off loan shops project
Mumbai: In a bid to take credit to the customers door step, HDFC Bank is setting up loan shops through its direct selling agents and has piloted the project in Chennai.
NPAs are a major cause or concern: Reddy
Mumbai: Non-performing assets are one of the emerging issues that affect economic activities. They are a major cause for concern, said Dr Y V Reddy, deputy governor, Reserve Bank of India, and to-be executive director of the International Monetary Fund.
ICRA assigns highest safety to NTPC bonds
Mumbai: The credit rating agency ICRA has assigned the highest safety rating of LAAA to the NTPC's Rs 300-crore bond issue even as it said the capacity expansion of the corporation was likely to be adversely affected.
Review rate cut, PHDCCI tells LIC
Mumbai: Demanding a review of LICs decision to cut interest rates on pension schemes, PHDCCI has said the existing policy-holders should be provided exit options with benefits.
PNB Housing cuts interest rates on loans
New Delhi: PNB Housing Finance Ltd has reduced the interest rates on home loans for resident and non-resident Indians by 25 basis points for different slabs. For the seven-year fixed rate loan, the interest will now be 10.25 per cent per annum as against the earlier 10.50 per cent. The interest rate has been reduced from 11.50 per cent to 11.25 per cent for the 15-year loan up to Rs 25 lakh. For flexi-loan (a combination of fixed and floating-rate schemes), the rate of interest has been reduced from 11 per cent to 10.75 per cent for the three-year interest option period. For the one-year interest option period, the rate has been fixed at 11 per cent, and for five years it has been set at 11.25 per cent. The reduction of interest rates has been considered consequent to the reduction in refinance rate effected by the National Housing Board. Bharat Overseas Banks Rs 20-cr IT plan
Kochi: Bharat Overseas Bank Ltd is planning to computerise its branches and introduce a centralised banking solution with a database, apart from offering various services to its customers. The bank has earmarked an investment of Rs 20 crore for network upgradation, which will be completed by 31 March 2003, says Bharat Overseas Bank chairman G Krishna Murthy. Murthy, who is here in connection with the inauguration of the renovated premises and computerised operations of the bank, says Tata Consultancy Services has been appointed as the consultant and project manager for implementing total IT solutions. The bank is planning to adopt a state-of-the-art technology for interconnectivity, resulting in anywhere, anytime banking in course of time. As a first step towards this, the bank has launched its website to provide information on various products and services, and network of branches. It has also become a member of the Society for Worldwide Inter-Bank Financial Telecommunication, thereby enabling to offer services to its exporter or importer clientele and non-resident Indian customers, says Murthy. The bank is also in the process of expanding its branches to 100 from the present 78 by the end of 2004. The branch expansion process will start only after the completion of IT upgradation, Murthy adds. Jaswant to meet bank chiefs this month
New Delhi: Finance Minister Jaswant Singh is planning to meet public sector bank chiefs towards the end of July 2002. The regular midyear meeting between the finance minister and the Indian Banks Association is now quite overdue. Yashwant Sinha, the finance minister till recently, had fixed 19 June 2002 for a meeting, but had to rush off to Bangkok, and the meeting was postponed to 29 June 2002. But that too failed to materialise because of the strong speculation about Sinhas continuance in the ministry after the cabinet reshuffle. With Singh now replacing Sinha in North Block, ankers feel that their first interface with the new minister may actually turn the review meeting into a brainstorming session on the state of the financial sector per se. 8 July 2002 ICICI Bank to enter into merchant acquiring
Mumbai: Having issued 6 lakh debit cards and an equal number of credit cards, ICICI Bank Ltd, the largest private sector bank, has now decided to go in for merchant acquiring in a big way.
Vysya Bank sheds staff by 15%
Mumbai: Vysya Bank has managed to shed its employee strength by around 15%, ahead of the Dutch financial services group ING acquiring management control of the private bank.
Creit Agricole cuts 30% Indian operations staff
Mumbai: Credit Agricole Indosuez, the international wholesale banking and capital markets arm of Credit Agricole, has cut staff at its Indian operations by over 30 per cent. The French bank recently concluded a voluntary retirement scheme, which found 28 takers. It now has only 59 employees on its rolls. The VRS was offered through two schemes.
Banks urged to consider ESOP
New Delhi: A fresh round of reform initiatives in human resources management in public sector banks appears to be on its way, with the central government asking the banks to examine the feasibility of implementing fresh changes.
Bonds placement falls short of target
Mumbai: Despite the increase in liquidity, the Reserve Bank of India did not find it easy to make placements. The floating rate security devolved partially since there was a wide margin in spread expectation between the markets. Consequently, only Rs 2,800 crore could be placed instead of the targeted Rs 3,000 crore.
Banks begin homework to sell NPAs post-ordinance
Mumbai: Public sector banks have begun segregating their accounts under various heads in anticipation of Reserve Bank of India guidelines under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002.
IRDA to share its funds with public accounts
New Delhi: The deadlock over custody of funds accruing to the Insurance Regulatory and Development Authority has finally been ended.
SBI long-term home loans at lower rates
Mumbai: State Bank of India (SBI) will offer long-term home loans at rates as low as 10-to-10.5 per cent for group borrowers as against its regular individual loan rate of 11 per cent for floating rate loans and 11.25 per cent for fixed rate loans. SBI is also offering short-term housing loans at a new low rate of 10 per cent for floating rate loans for five years as against the earlier rate of 10.5 per cent. Fixed loans for the same period will be available at 10.25 per cent as against the earlier 10.75 per cent. The bank has decided to offer discounted rates to borrowers who come in a group for a single property and pass on the savings that the bank will achieve in administrative expenditure. In cases where the borrowing group consists of employees of a single organisation, SBI will tie up with the employer for direct remittance of instalments deducted through the salaries of the employees. ICICI Bank to push agricultural lending
Mumbai: ICICI Bank has joined hands with corporates like Hindustan Levers Ltd (HLL) and Rallis to push its agricultural lending. The bank plans to offer credit of around Rs 2,000 crore to Rs 2,500 crore to the agriculture sector in this fiscal through these tie-ups. ICICI Bank had, on an experimental basis in Indore, worked with Rallis and HLL. ICICI Bank chief general manager P H Ravi Kumar says: "Rallis provided seeds, pesticides, fertilisers and other inputs, while HLL took over the wheat produce. The experiment, which had started off in 250 acres two years back, is now spread over 7,000 acres in one location itself." From 5 per cent of the wheat produce for its total requirement, which HLL outsourced from these farms some years back, the outsourcing has now grown to 12 per cent. Also, 30 per cent of its rice requirement will be outsourced to these farms by the corporates. The limit sanctioned by the bank for only wheat and rice farming this season was at around Rs 35 crore. The bank is also getting into collaboration with companies to produce cotton. The total area of contract farming is spread over six to eight locations across India. "The bank is planning to finance contract farming across the country so that the systemic risks of being only in a particular area and a single crop are mitigated. The bank is tapping both corporates and non-government organisations for this contract-farming model. The opportunities are identified first and then the bank works backwards with them," says Kumar. ICICI Bank is also looking at lending to plantation, dairy and seed companies among others through the contract-farming model to help it achieve the Rs 2,000 crore to 2,500 crore of credit off-take this fiscal.
|
