Fitch Ratings: Centurion Bank CoD is `fair'
Mumbai: Fitch Ratings India has placed the Certificate of Deposit programme of Centurion Bank on `F3(ind)' grade, indicating fair credit quality. `F3(ind)' ratings indicate that the capacity for timely payment of financial commitments is adequate; however, near-term adverse changes could result in a reduction to non-investment grade.

Fitch said in a press release, "This follows the approval of the restructuring and recapitalisation programme of Centurion Bank and successful completion of the first phase of equity infusion under the new management."
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RBI: Urges vigilance against fake relief bonds
Mumbai: The Reserve Bank of India has asked urban co-operative banks (UCBs) to exercise caution while granting advances against the security of relief bonds as it has detected fake bonds in circulation. In a circular to UCBs, the apex bank said, a few instances of fake bonds and certificates have come to its notice. ``We have come across a case where a person, reporting himself to be an agent of the bondholder, had submitted a colour xerox copy of the bond for signature verification. Such practices, intentionally or unintentionally, may lead to frauds. There is an urgent need to introduce a control mechanism to ensure that sanction of loans from different banks against the same bond is prevented,'' the circular said.

The RBI has said many banks have not got these bonds and certificates transferred in their own names before disbursal of loans. They refer the matter to the Public Debt Office of the Reserve Bank of India and specified branches of agency banks after a lapse of 2-3 years from the date of sanction of loan or after the bond has matured for repayment. Some banks have also reported that the bonds pledged with them, but not transferred in their name, have been lost.
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