Corporation Bank inks deals on tractor funding
Mangalore: Corporation Bank has signed memoranda of understanding with International Tractors Ltd and L&T-John Deere Pvt Ltd for financing tractors to farmers. A Mohan Rao, general manager of the bank, Y R Nakra, general manager (commercial), International Tractors Ltd, and J P Banerjee, chief marketing executive, L&T-John Deere Pvt Ltd, signed agreements on behalf of their organisations at the corporate office of the bank here on Monday.
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SBI seeks lifting cap on investors' stake in associate banks
Mumbai: State Bank of India (SBI) has approached the finance ministry for lifting the ceiling on the equity holding of investors in its associate banks. Currently, the equity holding for both the individual investor and corporates in these associates is capped at 200 shares per investor. As per the existing legislation, these shares cannot even be converted to the demat form, said a stockbroker.

The country's largest bank had written to the government requesting a change in this legislation, especially in the context of the proposed amendments to the SBI Act, which is currently under review. SBI has seven associate banks of which three - State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore - are listed on the stock exchanges. In fact, it is understood, that some of the bank's unlisted associates are also thinking of tapping the primary market shortly.
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PNB posts higher net under US GAAP
New Delhi: Punjab National Bank has said that its net profit for the year 2002-03 as per the US GAAP stood at Rs 1,139.77 crore compared to the net profit of Rs 939.57 crore as per the Indian GAAP. The US GAAP figure is 21 per cent more than the Indian GAAP. The equity (capital and reserves), excluding revaluation reserves, has also improved by 45.06 per cent to Rs 5,895.51 crore against Rs 4,064.20 crore.

The increase in equity as on March 31is after accounting for unamortised VRS expenses of Rs 225.78 crore, according to a bank release. The bank's restatement of its financial performance as per US GAAP is seen as an important move forward towards greater transparency and additional disclosures,'' it added.
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SBI Life gets approval for group cover
Mumbai: SBI Life Insurance Company has received approval from the central provident fund commissioner to offer group life cover to factory and other establishment workers in lieu of the government’s mandatory ‘Employees’ Deposit Linked Insurance Scheme of 1976 (EDLI)’. The EDLI scheme requires every employer to offer life insurance protection linked to the average balance to the credit of the employees provident fund, subject to a maximum insurance benefit.

An employer who opts for SBI Life’s group insurance scheme for its employees, will be entitled to an exemption from the EDLI Scheme and the benefits provided under the SBI Life’s Scheme are better than those provided under the EDLI Scheme. SBI Life’s scheme has a minimum life cover of Rs 65,000 and a maximum cover of Rs one lakh along with an optional accidental risk cover, which provides double the sum assured in case of death of the employee due to an accident.
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United Bank of India H1 net profit up 18%
Kolkata: United Bank of India (UBI) posted a net profit of Rs 155 crore during the six-month period to September 30, 2003, a 18 per cent rise over the figure of Rs 131 crore recorded during the corresponding half of the previous fiscal.

Announcing the half-yearly results of the bank here on Monday, UBI chairman & managing director Madhukar said that during the period under review, the bank’s interest income declined to Rs 1,028 crore from Rs 1,053 crore. "The other income, however, increased to Rs 191 crore from Rs 131 crore," he said. During the six-month period to September 30, 2003, UBI’s pre-tax net profit increased to Rs 238 crore from Rs 148 crore recorded during the corresponding half of the previous fiscal. The operating profit increased to Rs 276 crore from Rs 192 crore.
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Indian Bank taps MNCs, local firms to fund contract farming
Chennai: Indian Bank is planning to tie up with global processed food majors and domestic companies to improve its lending under contract farming. Last year, on experimental basis, the bank had financed two contract farming projects in Tamil Nadu.

S R Shivaswamy, general manager (priority sector), Indian Bank, said the management has decided to be more aggressive on contract farming as it offers a lot of business opportunities. "We are in talks with both multinational and Indian companies for extending more finance under this category. These companies will identify the market, understand the demand for the crop, identify the area where the crop is being cultivated, bring the farmers together and motivate them to cultivate. We, as bankers, will finance the project at competitive rates of interest. The companies will also assist the farmers by providing necessary inputs for growing crops like seeds, fertilisers and other technical information," he said.
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