SBI
plans two schemes for NRIs
Mumbai: State Bank of India will be launching two
new deposit schemes for non-resident Indians Pravasi
Vaibhav and Pravasi Samriddh on 24 September for
a limited period. Pravasi Vaibhav is a deposit scheme
denominated in rupees with payment of maturity proceeds
in US dollars. The foreign currency amount received from
the customer will be converted into rupees by the bank,
to issue an NRE special term deposit receipt (NRE-STDR)
for one year. The yield on Pravasi Vaibhav will depend
upon the interest rates on NRE deposits and cost of forward
cover prevailing on the date of issue. At present, SBI
offers 3.90 per cent on NRE deposits with a maturity of
up to one year to less than two years.
The
stipulated minimum amount for deposits is $10,000 or equivalent.
The tenure is one year and the maturity proceeds will
be paid in US dollars. The Pravasi Samriddhi deposit,
which will be booked at the bank's off-shore banking units
(OBUs) at Bahrain, Nassau and SEEPZ (Mumbai), offers NRIs
opportunity for investment on floating or fixed rates
of interest, on cumulative and non-cumulative basis. This
deposit will be denominated in US dollars and Euro. The
stipulated minimum amount is $5,000 and the tenure of
deposit will be 1, 2, 3 and 5 years.
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ING
Vysya Bank to raise Rs 200 crore via bonds
Bangalore: ING-Vysya Bank has placed its tier-II
capital bonds in the markets at 6.25 per cent amounting
to Rs 200 crore. Banking sources were quoted as saying
that the bonds, rated 'AA plus' by both Fitch and Crisil,
have a 10-year maturity profile without any early exit
options. Banks with comfortable tier-I capital situation
have opted for tier-II bond issues to increase the risk-weighted
assets.
Under
current guidelines banks are permitted to have up to 45
per cent of their capital in the form of tier-II. ING
had total capital funds equivalent to Rs 779.5 crore or
equivalent of 9.86 per cent of the capital to risk-weighted
assets. Of this, tier-I capital alone was in the region
of about 7 per cent. This allowed it substantial flexibility
to raise low cost tier-II capital, the sources said. The
pricing for ING Vysya bond issue is under 100 basis points
above the 10-year sovereign rate. Besides, the ING offering
for 10 years was also uncommon, the sources said.
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Oriental
Insurance, Malda Bank join hands
Kolkata: Oriental Insurance Company Ltd has signed
an agreement with the Malda-based Gaur Gramin Malda Bank
for marketing of general insurance products on Friday.
The agreement will help the company reach out to the rural
market.
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Centurion
Bank gets court approval for Sabre rejig plan
Mumbai: The Bombay High Court (Goa Bench) on Friday
approved the recapitalisation and restructuring of Centurion
Bank. The bank said the court's final hearing approved
the scheme of arrangement submitted by Sabre Capital.
The Reserve Bank of India's (RBI) permission had also
been sought for the same, said a senior official of Centurion
Bank, which has its registered office in Goa. In April
2003, Sabre Capital Worldwide submitted the proposal to
revive the private sector bank.
The
proposal was approved by the bank's board of directors
and subsequently by its shareholders and creditors. The
scheme consists of three major proposals: restructuring
of capital by reducing the face value of the bank's share
from Rs 10 to Re 1, infusion of fresh capital of Rs 319
crore in two phases and takeover of management control
by Sabre Capital and merger of Bank Muscat with Centurion
Bank.
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Five
PSBs to share online ATM network
Mumbai: Five public sector banks have come together
for a new ATM sharing arrangement. Canara Bank, Central
Bank of India, Indian Overseas Bank, UCO Bank and Union
Bank of India, on Friday co-branded their ATM network
tie-up as "Cash Online". The dismantling of
the Swadhan ATM network effective from December 2003,
has led banks, both in the public and private sector to
enter into consortium tie-ups to form co-branded networks
such as Cashnet, Cashtree, and Mitr.
CashOnline,
the shared ATM network, has been launched with a view
to exploiting the sectoral strengths of the banks to the
mutual advantage of their vast clientele, said top officials
with the five banks while addressing a press conference
here on Friday. The current combined ATM strength of the
banks at 600 will be increased to 1,500 by March 2004
and 2,700 by March 2005, officials said.
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Kakinada
co-op bank net at Rs 2.14 crore
Kakinada: The Kakinada Cooperative Town Bank earned
a net profit of Rs 2.14 crore during 2002-03. M V V Satyanarayana,
chairman, said the bank has been given the Grade A audit
certificate. It had 11 branches and one more would be
shortly opened at Rajahmundry. He said the bank would
declare a dividend of 18 per cent to shareholders after
the general body meeting on September 27.
The
bank had lent Rs 50.67 crore and the non-performing assets
(NPAs) amounted to 6 per cent. All efforts would be made
to reduce the NPAs and during the past four months Rs
75 lakh had been recovered.
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