PNB hikes FCNR rates on select maturities
New Delhi: Punjab National Bank (PNB) has revised interest rates on the Foreign Currency Non-Resident (Banks) scheme for dollar (US), pound (GBP) and the euro with effect from 22 August. The rate of interest on dollar deposits have been revised from 1.15 per cent to 1.14 per cent for less than one year to less than 2 years, from 1.69 per cent to 1.85 per cent for 2 years to less than 3 years and from 2.30 to 2.54 per cent for maturities of three years only.

The rate for pound has been revised from 3.55 per cent to 3.58 per cent for one year to less than 2 years, from 3.83 per cent to 3.91 per cent for 2 years to less than 3 years and from 4.01 to 4.11 per cent for maturities of three years only. The interest rate for euro deposit has been revised from 2 per cent to 2.03 per cent for maturity of 1 year to less than 2 years, from 2.42 per cent to 2.47 per cent for maturity of 2 years to less than 3 years and from 2.77 per cent to 2.83 per cent for maturity of 3 years only.
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Federal Bank tier-II issue fully subscribed
Kochi: Federal Bank has successfully raised Rs 75 crore through private placement issue of unsecured redeemable non-convertible subordinated bonds. The issue of Rs 75 crore, including the green shoe option of Rs 25 crore, opened on August 11 and closed on Thursday.

Though the closing date was 25 August, the issue closed early as the issue including the green shoe option got fully subscribed. The bank's earlier Tier II issue of Rs 150 crore was made in February, and was also fully subscribed. With these two recent issues, the bank's capital adequacy level is expected to be above 12 per cent in March 2004.
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IndusInd, UTI Bank to share ATMs
Mumbai: IndusInd Bank has concluded a memorandum of understanding with UTI Bank for sharing of ATMs, both existing and proposed. Dr P J Nayak, chairman and managing director of UTI Bank, and Bhaskar Ghose, managing director of IndusInd Bank, signed an agreement to this effect.

Nayak said shared networks will be the future of the banking industry, as this will minimise "geographical overlap of ATMs and provide better coverage to customers." Also, network sharing helps the banks to sharpen the economies of scale and minimise the cost of servicing their customers, he felt. UTI Bank has a network of 206 branches and extension counters and 950 ATMs spread across 90 cities and towns.
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Cholamandalam may buy asset management firm
Chennai: The Murugappa group is all set to acquire an asset management company (AMC). "We are considering one," said M Anandan, managing director of Cholamandalam Investment and Finance Company, a group company which has a AMC subsidiary. Anandan, however, did not want to reveal the name of the company under consideration, pending finalisation of the deal. "We are not going to pay Rs 100 crore for acquiring an AMC."

He said that the acquisition will be only for the asset portfolio, rather than for something like a brand name. He said the "balance-sheet size" of Cholamandalam Investment this year will be around Rs 1,300 crore. On the liability side, about Rs 700 crore will come from debentures and short-term papers placed with various mutual funds. About Rs 250 crore will come from securitisation of the company's assets. The rest would come from CP/FCNR (B) loans from banks.
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Bharat Co-op Bank installs core banking solution
Mumbai: Bharat Co-operative Bank, an urban cooperative bank with about 30 branches, has said it has implemented OMNIEnterprise, an enterprise-wide core banking solution of InfraSoft Technologies Ltd. The bank said that it is the first cooperative bank in India to implement a core banking solution.
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IOB to price issue at Rs 14 premium
Chennai: Indian Overseas Bank's public issue will be at a premium of Rs 14 per share, it was decided at the bank's board meeting on Thursday. The bank expects to raise Rs 240 crore through the issue, of which Rs 140 crore will go towards the share premium account. The issue will hit the market on 5 September, says the bank's chairman and managing director, SC Gupta.
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