News

ICICI Bank opens 3 rep offices abroad ICICI bank on tuesday (5th December 2006) opened its representative offices in Thailand ( Bangkok), Indonesia ( Jakarta ) and Malaysia ( Kuala Lumpur), extending its reach to 17 countries. Lakshmi Vilas bank in pact with Western Union Money transfer The Karur based Lakshmi Vilas Bank has tied up with Western Union Financial Services for offering global money transfer facility to its customers. The services would initially be extended to 150 branches located in rural and Semi-urban areas. No Real-time fund transfer for small deals The banking regulator, the Reserve Bank of India has instructed banks that they should not use the instant funds transfer system, known as the Real TIme Gross Settlement (RTGS), for an amount below Rs.1 lakh. The new rule would come into effect from January 1,2007. For small transactions, RBI has asked banks to offer National Electronic Funds Transfer (NEFT) which provided T+0 and T+1 settlement system (depending on the time a customer gives instruction to the bank for tranferring the fund). The key difference between RTGS and NEFT is that while RTGS in on gross settlement basis, NEFT is on net settlement basis. Besides, RTGS facilitates online transfer, while NEFT involves four settlement cycles a day 9.30 am, 10.30 am, 12 pm and 4 pm. Thus if a customer has given instruction to its bank to transfer money through NEFT to another bank in the morning hours, money would be transferrd the same day, but if the instruction is given later during the day, money would be transferred next day. However, RTGS facility is available in over 25000 branches, while NEFT is availabel in 9800 branches. Besides, while all commercial banks have put in place the RTGS facility, only 43 banks have purchased the software required to facilitate NEFT based transaction. RBI has instructed banks that all branches which are RTGS enabled should also provide NEFT by December 2006. Sources said that RBI also had planned to discountinue EFT-Electronic funds Transfer. This is because EFT is availabel only in 15 locations where RBI has its clearing house. As of now, customers can access the RTGS facility only upto 3 pm and inter-bank transactions are possible upto 5 pm.

Bank Stock News

Bank of India to pay 20% interim Bank of India has declared a 20% interim dividend payable on December 20.

Recruitment

Corporation Bank --- Recruitment of specialist officer Assistant General Manager (information Security)---SMG-V---Vacancy---1 Computer officer (Hardware)---MMG--III---Vacancy---4 Computer Officer (Software)---MMG---III---Vacancy---2 Computer Officer (database administrator)---MMG--III---Vacancy---3 Computer Officer (Communication)---MMG---III---Vacancy---3 Security Officer---JMG---I--Vacancy---5 Official Language Officer---JMG---I---Vacancy---5 Law Officer---JMG---I---Vacancy----10 Last date for receipt of application 22.12.2006 Date of written exam ; 18.02.2007 For more information visit www.corpbank.in

News

Banks can open lockers on rent deault According to the draft RBI circular, the locker holder of banks which are categoriesed as "medium risk" and "high risk" according to "know your customer" norms have to open their lockers at least once in three years and one year respectively. If they do not do so they will be given an option to operate or surrender them. If they still do not operate the locker the banks should consider opening the lockers with the help of police after giving due notice to the locker hirer. Other than above banks have the right to break open the lockers of those hirers who do not pay annual rent after giving them due notice. In case of the death of a locker hirer, access to the nominee or the joint hirer can now be given by submission of a death certificate and indentification papers. If there is an 'either or survior' clause and the locker is not to be operated jointly, access may be given only to the survivor in case of the death of one of the hirers. In case of the death of a locker hirer, where there is no nomination but a valid will, access may now be given to the executor. In other cases, access will be given to the legal representative of the deceased. While permitting the removal of the contents of any lockers, by a nominee or a legal heir, banks have been asked to create an inventory of the contents, which is to be signed by the new hirer. Banks cannot, however, open sealed packets left with them for safe custody or found in the locker. The central bank, has told banks that lockers, which do not have nomination clause should obtain the option within a year. PNB's new remittance service Punjab National Bank has launched a new remittance service with Buyindiaonline.com Inc, a wholly owned subsidiary of Xoom Corporation, USA. Under this service, non-resident Indians can send their remittances to India through the website www.xoom.com. A beneficiary can pick up pay order in his favour from any of the over 2000 core banking solutions branches of the bank in India.

News

Catholic Syrian Bank to offer mediclaim policy The bank has tied up with New India Assurance Company to issue mediclaim policy " CSB Health Care Support " to its customers. Syndicate Bank's CBS The bank has implemented the Core Banking Solution (CBS) in the 1001 branches with Flexcube from i-flex Solutions Ltd.

Bank Stock News

L&T picks up 9.99% in City Union Bank L&T got preferential allotment of 26.65 lakh shares at a price of Rs.169 a share costing it Rs.45 crore.

Class Room

Security Alert--------Lebanese Loop “Lebanese Loop” attacks have become common occurrence especially in the western countries. The modus operandi in Lebanese Loop is comparatively simple, using a combination of technical and social engineering / inter personal skills. The technological part of the Lebanese Loop involves inserting clear plastic sleeves into the card slot of the ATM in advance. When an unsuspecting customer inserts his card for operation, the ATM try to read card’s magnetic strip but the exercise would be in vain as the card will be slotted into the sleeve inserted by fraudster. The situation will prompt the system to display messages like “ System Temporarily out of order “ or “Enter PIN number” etc. Whatever the customer does, may not yield the desired result as the system will not be able to read any instructions keyed in as the card will be within the sleeve inserted by the fraudster. It is at this point in time, that one of the individuals involved in the fraudulent racket will turn up and offer to help. The person offering to help may emerge posing as another customer pretending to be also aggravated over the malfunctioning of the ATM or as someone simply offering to help the customer to wriggle out of the woes he is in, quoting their own similar experience. In either case, the objective, basically, of the person offering to help is to get to know the ATM PIN number of the customer. Needless to mention, any means of support by the stranger may not help in enabling the customer to operate the ATM for obvious reasons. On the other hand, the damage is already done as the PIN number would have, in all probability, been compromised with. After several unsuccessful attempts to re-enter the PIN or at retrieving the card, the user will come into terms with the fact that he cannot retrieve the card anymore from the ATM. He may then opt to intimate the bank instead, for retrieving his card from the ATM. Once the unsuspecting customer leaves, the fraudster will remove the sleeve from the ATM and retrieve the card therein. Thereafter the fraudster is entitled to a free run having both the customer’s card and PIN number at his disposal, which enables him to transact from the customer’s account at will. This modus operandi can be used for trapping all types of cards that are used in ATMs viz. the ATM/Debit/Credit card etc. It is important for each of the customers to remember that if they encounter a scenario as mentioned above, the card slot of the ATM may be carefully examined by running the fingers across it to find one or more of the imperceptible “ prongs “ attached to the plastic sleeve that are designed to enable the fraudster to remove it. It is important to understand that if the card is not possible to be retrieved for any reason, it is not always right to assume that the ATM swallowed it. Instead it is prudent to enquire with the concerned branch/any authorized officials of the bank whether any problem exists with the ATMs and communicate about the card being held back by the system. Most of the banks providing ATM services display in the ATM cabin, the contact numbers, in case of emergency. Timely information will facilitate the bank personnel to look into the issue and ensure that a potential Lebanese Loop attempt is not rendered successful. The branch officials shall therefore exercise prudence/presence of mind whenever such instances are reported. The modus operandi invariably necessitates a scenario wherein the fraudster has to first go to an ATM to rig the card slot and fix the sleeve. Needless to mention the fraudster/his accomplices also have to be present in the vicinity of the ATM/ATM cabin to lend the helping hand to a customer who has been victimized. The most important aspect to be borne in mind is that such of these activities relating to Lebanese Loop to happen without any hindrance, the ideal situation has to be an unmanned ATM location. An unmanned ATM location provides the fraudsters the opportunity to spend ample time at the ATM/in the ATM cabin as is required as a pre-cursor to such fraudulent attempts. The Best preventive measure in the case of manned ATMs is that the security guards posted at the ATM sites do have a close watch on the people entering the ATM cabin, fixing any gadgets in the ATM or in the ATM cabin and those who spend unduly long time inside/around the cabin. Lebanese Loop attempts can be definitely thwarted by the security guards and the timely intervention of the branch officials to a considerable extent. The security guards at the ATM sites and the branch officials should be primarily aware and be vigilant on such issues. The need of the hour, therefore, Is to proactively anticipate and foresee motives in any of the activities being attempted in or around the ATM cabin which is not in line with the normal/prescribed set of actions and activities.

Bank Stock News

UBS picks up stake in UTI Bank UBS Securities Asia Ltd has picked up nearly 2.5 per cent stake of UTI Bankfor Rs 344.58 crore in open market transaction. UBS Securities has acquired69.33 lakh equity shares at Rs 497 each, representing 2.47 per cent stake ofthe private bank in a block deal on the Bombay Stock Exchange.

News

Corpn Bank ties up with India Post In tune with intensifying its efforts to serve the rural community moreeffectively, Corporation Bank has initiated a process to sell its loanproducts in villages with the help of India Post. Corporation Bank, inassociation with India Post, has launched 'Corp Gram Mitra Yojana' asecurity-free consumption loan scheme for rural beneficiaries. To beginwith, the scheme has been introduced on a pilot basis in Goa. This tie-upbrings benefits to all stakeholders post office by way of fee income,borrowers by way of credit on easy terms, and the bank by way of newbusiness. The maximum amount of loan will be Rs 20,000, repayable along withinterest within two years in the form of monthly instalments. Applicationand documentation of loans will be done through the designated post officesin the respective places. Ms Noorjehan, Principal Chief Postmaster General,Maharashtra Circle, formally launched 'Corp Gram Mitra Yojana', at Nagoa inGoa. Mr K.L. Gopalakrishna, Executive Director of the bank, presided. Bank of Rajasthan plans insurance foray Private sector Bank of Rajasthan plans to get into life and generalinsurance businesses, after shoring up its net worth to Rs 1,000 crore in 18months, Director Mr Pravin Kumar Tayal said. The bank, he said, would set upseparate subsidiaries for the new ventures, joining many other banks vyingfor the country's fast growing but underserved life insurance market. Bankof Rajasthan now has a net worth of Rs 450 crore. BoJ rate hike 'any time now' The Bank of Japan Governor, Mr Toshihiko Fukui, reiterated that an interestrate hike could come at any time amid a strong economic recovery. The Bankof Japan's Policy Board voted unanimously to keep interest rates at 0.25 percent on November 16. The market is braced for a rate hike next month or inearly 2007. New norms to boost foreign bank lending Barclays Bank's total lending in India is just over Rs 4 crore, but itsoff-balance sheet liabilities are over Rs 2,50,000 crore. If the RBI goesahead and implements its revised priority sector lending guidelines fromApril 1, 2007, then the British bank will have to lend over Rs 1,200 croreto priority sectors. That's because the draft guidelines propose to useeither the net bank credit or credit equivalent of off-balance sheetexposure as the base for calculating bank's priority sector lendingobligations. The average credit equivalent of OBS for the entire bankingsystem about 1.9 per cent of the total contingent liabilities. The number ofbanks which are actively involved in these activities in India are only 15,most of which are foreign banks. The combined share of these 15 banks intotal off-balance sheet exposures steadily increased from 73.8 per cent inMarch 2002 to 82.3 per cent in March 2006. The growth in OBS exposures inIndia has been fuelled by the phenomenal increase in derivatives segment.

News

66 Union Bank ATMs at rly stations Union Bank of India has tied up with Indian Railways to provide a host ofservices to the commuters, including Internet ticketing. The bank has signeda memorandum of understanding with Indian Railways for opening of 66 ATMs atvarious railway stations throughout the country. It would also set up aseparate kiosk to provide Internet ticketing service to passengers. Also,the ATMs would provide cash withdrawals, balance enquiries, fund transfer inown account and also prepaid mobile top ups, the bank said in a releasehere. The bank has a network of 611 ATMs and aims to install 1,000 ATMsthroughout the country by March 2007. YES Bank plans to raise $90 m YES Bank Ltd, a two-year-old Indian bank partly owned by Rabobank Group ofthe Netherlands, plans to raise $90 million selling shares and bonds byMarch to fund expansion, said the Chief Executive, Mr Rana Kapoor. TheMumbai-based bank plans to have 60 branches by June, Mr Kapoor toldpresspersons in New Delhi on Sunday. YES Bank said it planned to raise atotal of $150 million for expansion. YES Bank is also raising Rs 180 crore($40 million) selling debt maturing in nine years and six months payinginvestors a coupon of 9.1 per cent, Mr Kapoor said American Dream for SBI, ICICI Bank State Bank of India and ICICI Bank, India's two largest banks, will spreadtheir operations in the US. According to senior government officials,following the government's talks with the US authorities, India's twoleading lenders may well be granted approval for fresh branch licences inthe next six months. Part of the problem can be traced to the fact that SBIwas fined $7.5 million in 2001 by the US regulators for what was seen as thebank's failure to put in place anti-money laundering safeguards. The banksubsequently agreed to pay the fine imposed both by the US treasury and theNew York State Banking Department. SBI has operations in New York, Chicago,Los Angels and Washington, while ICICI is seeking an entry into the US aftermaking some inroads into the UK and Canadian markets. The government and RBIhave said that they have been liberal in approving branch licensingproposals from foreign banks way above the annual cap of 12. Bajaj Allianz, Centurion Bank headed for a long legal battle The dissolution of the erstwhile partnership between Bajaj Allianz LifeInsurance and Centurion Bank of Punjab is embroiled in a major feud and thetwo parties may end up in arbitration. A couple of months after the mergerof Bank of Punjab and Centurion Bank in June last year, the merged CenturionBank of Punjab (CBoP) had called for fresh bids from insurers since eachbank had different partners. Existing regulations do not allow a bank tosell policies of more than one life insurers. The bank had indicated it hadchosen Aviva because the geographies in which the firm was present matchedbank's requirement. It had also said it would continue to service customersto whom it had sold Bajaj Allianz policies, and would not try to convertthem into becoming Aviva's policy holders. Another reason for the change wasthat Bajaj Allianz was pursuing a strategy of growing its agency force andCBoP saw this as an area of potential conflict. However, the decision to gowith Aviva didn't go well with Bajaj Allianz.

Bank Stock News

Vijaya Bank -------- Buy Healthy business growth, improving asset quality, a relatively de-risked bond book, and undemanding valuation lend credibility to the Vijaya Bank stock. Investors can consider fresh exposure to the stock at theits current price of Rs 53 with one/two-year perspective. Insipid performance of the bank until last year is one of the reasons for the poor valuation of athe stock. While net interest income has remained under pressure, bad loans piled up. However, things are gradually changing now. Through a sharper focus on recoveries and stricter credit monitoring, Vijaya Bank has been able to bring down the level of net non-performing assets (NPAs) to 0.6 per cent in September 2006 against 1 per cent a year ago. Further, the bad loan coverage ratio has also improved from 68.1 per cent a year ago to 78.5 per cent now. This, coupled with excess floating provisions of Rs 30 crore (or 30 per cent of the net NPAs), is likely to provide cushion to the bank in case of loan delinquencies. This is also likely to keep provisioning charges lower over the next few quarters. Business outlook For the September quarter, the bank recorded a healthy 24 per cent growth in business volumes. Its business reached Rs 50,000 crore six months ahead of the target date, and the bank has set a goal of Rs 60,000 crore to be achieved by FY-07. While its loan book has grown by about 25 per cent, pressure on margins still persists. The bank's cost of funds rose by about 30 basis points in the September quarter, affecting its net interest margins (NIMs). Though yields on advances have improved, rising deposit costs along with a marginal fall in low-cost deposit base have resulted in NIMs declining by about 22 basis points. At 3.12 per cent, NIMs are still healthy and on a par with industry average. Containing costs is likely to be a key element in determining earnings growth and, thus, holds greater significance. For Vijaya Bank, various technology-based initiatives are likely to help bring down the operating cost. The bank also has the leeway to re-deploy its excess investments in SLR in its loan book; this is expected to improve its margins over the medium term. With the bank's credit at 61 per cent of deposits, there is still headroom to increase its loan book. If this happens, margins and profitability are likely to improve. Investment portfolio The bank's investment portfolio appears largely insulated from interest rate risk. This is because over 70 per cent of its holdings in government securities are under the held-to-maturity (HTM) category. The continuing decline in bond yields this quarter is likely to have a positive effect on its bond book in the coming quarter or two. At its current price, the stock quotes at a price-to-book multiple of 1.3 times against 1.5-1.6 times for most other public sector banks. The return on shareholder funds has improved sharply to 20 per cent. The bank is likely to generate and sustain return on shareholders' funds in the 15-18 per cent range over the next year or two. This appears healthy and is enough to support the valuation of the stock and provide a cushion on the downside.

Bank Stock News

FIIs' investment in Yes Bank FIIs, NRIs and persons of Indian origin can now purchase equity shares andconvertible debentures of Yes Bank under the portfolio investment scheme upto 49 per cent of its paid-up capital, according to an RBI circular

News

PNB credit cards foray by March Punjab National Bank (PNB) plans to come up with its own credit card byMarch next year. It would soon invite ex-pression of interest (EOI) for ajoint venture partner in the proposed credit card venture. Currently, PNBhas a co-branding tie-up with HSBC in which latter is the card issuer andplays the dominant role. Indications are that PNB would withdraw from thistie-up as soon as the joint venture company takes off. "We have alreadyroped in Ernst & Young, who will help us identify joint venture partner",said Mr K. Raghuraman, Executive Director, PNB. Oriental Bank ties up with IL&FS Investsmart for online trading Oriental Bank of Commerce (OBC) would soon offer online share tradingfacility to its demat account holders. For this purpose, the bank has signeda memorandum of understanding with IL&FS Investsmart on Wednesday.Initially, the online share trading facility would be available on a pilotbasis at Mumbai. Currently, OBC has more than 1 lakh demat accounts spreadover 111 branches. The MoU, also provides for the bank's customers toundertake share trading at designated branches. "Our customers walking intodesignated branches could trade shares and IL&FS Investsmart personnel atthese branches would provide support for share trading," an OBC officialsaid. ICICI Bank pact with Canadian agency ICICI Bank has signed a memorandum of understanding with Export DevelopmentCanada (EDC), a Canadian export credit agency, for financing support toIndian buyers of capital goods and professional services from Canada. "ICICIBank will leverage its international presence to provide holistic support toIndian corporates in their global aspirations," said Ms. Chanda Kochhar,Deputy Managing Director, ICICI Bank. The bank has a subsidiary in Canada(ICICI Bank Canada) with five branches. 4 insurers wooing Union Bank Union Bank of India is being chased by four new life insurance companies tomake the Mumbai-based bank a shareholder in their ventures. Italy's largestinsurer Generali, Japan's Dai-Ichi Mutual Life Insurance, which has tied upwith Bank of India, Germany's second largest primary insurer The ErgoInsurance Group, and interestingly, Bharti Axa life insurance company, whichcommenced operations in August, have already made presentations to UnionBank. Experts say that roping in a bank makes more sense for Bharti Axa asit will help get a committed partner with a wide reach for selling theproducts. Union Bank officials confirmed that they have been approached bythese insurers and said the public sector bank was interested in having23-26 per cent equity stake in a life insurance company. IDBI, BoR ink deal on e-trading services IDBI Capital Market Services Ltd inked an agreement with the Bank ofRajasthan to offer advanced e-trading services throughwww.IDBIpaisabuilder.in to the customers of the bank. United Bank to move govt with capital rejig plan again United Bank of India (UBI) will once again ask the Centre to consider itscapital restructuring proposal. Earlier, the government had rejected theproposal and had asked the Kolkata-based bank to submit a fresh formula. Thebank, however, has decided against any modification and will place the sameplan yet again. The UBI board has approved the move on November 21. Themanagement felt that this was in the best interest of the bank, sourcessaid. However, UBI chairman and managing director PK Gupta refused tocomment. The government had rejected UBI's original proposal, following anote from the Reserve Bank of India (RBI) which is reportedly againstallowing more than 40% of bank's Tier-1 capital into preference shares. ButUBI's plan to restructure Rs 1,200 crore of equity capital intonon-convertible preference shares from the Tier-1 capital of Rs 1,600 croredoes not conform with RBI's thinking. It had proposed two other variationsof the restructuring plan. In both the cases, the conversion was in excessof 40% of the Tier 1 capital.

News

'Reserve train tickets at ATMs' The Railways would soon enable buying of reserved train tickets from ATMs, which are being set up at railway stations. The ATMs would have Internet access facility, using which passengers can book e-tickets. After entering into an agreement with the State Bank of India to set up 682 ATMs at railway stations, Indian Railways entered into an agreement with six nationalised banks to set up another 711 ATMs at railway stations for passengers to withdraw cash. Out of the 711 ATMs, 473 will have e-ticketing facilities. The banks include Canara Bank, Bank of Baroda, Dena Bank, Union Bank of India, Indian Bank and Punjab National Bank. Currently, 86 ATMs have been installed at various stations and by the end of 2006-07, 250 ATMs are expected to be operational. The Railways aims to set up 4,000 ATMs at various stations. PNB offers online share trading Punjab National Bank (PNB) has launched online share trading services for its customers. It has tied-up with IDBI Capital Market Services to enable the bank's customers to accesswww.IDBIpaisabuilder.in, a Web-based portal, for investing in equity, mutual funds and initial public offerings. This alliance with IDBI Capital Market Services would help the bank to offer online trading in shares and, thereby, enlarge the number of demat accounts. With this tie-up, a PNB customer can get an integrated 3-in-1 online account that includes bank, investment and demat accounts. One can even link existing savings and demat accounts. PNB is now serving about 3.8 crore customers through its 4,500 branches. At present, the bank has about 35,000 demat accounts spread across 165 branches in 55 cities. It expects to add another 25,000 demat accounts by Mar'07. Bank of India's e-share trading Bank of India is launching online share trading jointly with broking firm Asit C Mehta Investment Intermediates Ltd. The broking firm would provide the online trading facility while the bank would offer banking facilities like demat and savings bank accounts. SBI too joins e-trading brigade, strikes pact The country's largest bank, State Bank of India (SBI), is slated to enter into a strategic alliance with the Mumbai-based brokerage Motilal Oswal Securities to provide integrated e-trading platform to their customers. This will possibly be the first entry by a large PSU bank in the online trading arena. At present such services are provided by broking firms in partnership with private banks. Players like ICICI Bank and HDFC Bank offer seamless trading with their subsidiaries ICICIdirect.com and HDFC Securities, respectively. This will broaden the scope of trading since the less-savvy IT customers, who have always been banking with a PSU bank, will now have an access to online trading facilities with the tie-up.

Class Room

IIBF to launch diploma in banking & finance Indian Institute for Banking and Finance (IIBF), a premier training body promoted by public sector banks, is all set to launch a three-paper online diploma course in banking and finance. The institute is expected to offer it in the next academic session starting May-June 2007. "Even as there are a number of courses offered in banking for mid-career or junior executives, this will help in preparing a fresher with principles and practices of banking before they join a bank, said R Bhaskaran, CEO, IIBF. The institute will be soon introducing certificate courses in asset liability management, retail banking and risk management for working bank executives.

News

PNB add-on debit card Punjab National Bank (PNB) on Tuesday announced that all the core banking solution (CBS) branch customers with PNB debit card could now have two add-on-debit cards for his/her family members, who may be spouse and dependent children not below 18 years. The bank said that the add-on-card holders are also covered under the accident death insurance of Rs 1 lakh. The debit card is issued free-of-cost to the primary cardholders as well as to the add-on-card holders. Insurance cover of Rs 1 lakh is also> available free-of-cost. No curbs on Sangli Bank Sangli Bank has clarified that the RBI has not imposed any restriction on it, including expansion of its advances. Responding to a report published in Business Standard on November 16 (RBI clamps down on Sangli Bank), the clarification points out that the RBI has not stopped the bank management from going in for large deposits and from increasing its lending exposure. Nor has any restriction been imposed on it to open new branches. PSBs to ink MoU with Rlys for ATMs Six nationalized banks, including Punjab National Bank, Bank of Baroda and Indian Bank, will sign a MoU with Indian Railways on Wednesday to set up 711 ATMs at railway stations across the country. This is the second biggest MoU for Railways after SBI signed an agreement with it in August to install ATMs at 681 stations across the country, with e-ticketing facility at 383 major stations in association with the Indian Railway Catering and Tourism Corp.

News

Canara Bank raises $1.3 billion The bank has received a record $1.3 billion worth of subscription against the offering of $250 million for raising Tier-II capital. The issue, priced at par, has a coupon rate of 1.29% over the London Inter-bank Offered Rate (LIBOR). the tenure of the bond issue is 15 years. the bank can exercise a call option at the end of tenth year. After this issue bank will have Capital Adequacy Ratio of over 13%. Dena Bank scheme to double investment Dena bank has launched a new scheme, Dena Double Deposit Scheme, which gives an opportunity to the investor to double their investment in a maturity period of eight years nine months. The scheme will remain operational from Monday till March 31, 2007. The bank provides 8% interest per annum to the general public and 8.55% to senior citizens.

The Bank Page: Bank Stock News

The Bank Page: Bank Stock News

Bank Stock News

Andhra Bank --- BUY Business Line (19.11.2006) An investment may be considered in the stock of Andhra Bank with a one-year perspective. The bank's increasing focus on high-yielding loan segments, buoyancy in fee income and ability to mop up low-cost funds augur well for its growth over the medium term. For the September quarter, the bank has turned in a good set of numbers. Its strategy of adopting a controlled credit growth without unduly stretching its balance sheet appears to have paid off. Unlike many other banks, which have grown their loan book by about 40 per cent, Andhra Bank has recorded a modest 23 per cent growth in advances. By restricting its deposits growth to nine per cent against the industry average of 20 per cent, and staying away from bulk deposits to a large extent, the bank has managed to expand its net interest margins by about 10 basis points to 3.82 per cent on a sequential basis. The growth in low-cost deposits has also helped the bank in containing costs. Low-cost deposits, which grew by 21 per cent YoY, now accounts for close to 40 per cent of its total deposits. Non-fund based activities that remained relatively dull during FY 06 are now beginning to pick up sharply. The fee income has risen by 35 per cent in second quarter on the back of 12 per cent increase in first quarter. The momentum in the fee income is likely to remain high on the back of its initiatives in third-party distribution and credit cards business. The deliberate change in loan-mix with higher focus on high-yielding segments such as retail, agriculture and SMEs also augur well. The growth in retail assets has been highest at 36 per cent. Andhra Bank sports one of the cleanest balance sheets with bad loans constituting 0.1of net advances. Higher provisioning coverage (93.5 per cent) coupled with faster recoveries also offers a great deal of comfort on the asset quality. The bank's ability to sustain its return on networth of 18 per cent post-equity expansion is a strong positive. Even with a modest profit growth of 10-12 per cent, the bank is likely to sustain its return on equity. The stock is quoting at a P/BV of 1.3 times its trailing 12 months earnings and appears attractively valued.

Recruitment

State Bank of India and subsidaries call for Specialist Officers/Executives Last date for sending application : 09.12.2006 For details kindly visit www.statebankofinida.com www.employmentnews.gov.in or see employment news dated 18-24 November2006

Recruitment

IDBI Bank ltd: Post : Assistant Manager (Grade A) Number of posts : 550 Last date for receipt of application : 05-12-2006 (from far flung areas-15-12-2006) Reservation : As per government rules Eligibility Criteria: 1. Graduate in any discipline from a recognized university 2. The candidate should have minimum 3 years banking experience including clerical/executive experience or 1 year banking experience as an officer. Contractual experience will not be considered. Core banking experience will be desirable. Age (as on November 1,2006) Not more than 28 years. SC/ST/OBC/PH/Ex-servicemen will be eligible for relaxation as per government rules. Pay and Other benefits: 1. The starting basic pay would be Rs.11,250/- per month. The gross monthly emoluments at the start of scale would be Rs.15,600/- 2.In addition to pay and allowances, the selected candidate will be eligible for benefits like pension, gratuity, leave fare concession, reimbursement of medical expenses, vehicle maintenance allowance, vehicle loan, housing loan etc. as per banks rules. Bank accommodation will be provided subject to availability. Selection Process: Selection process will comprise of Written Test followed by Personal interview for those who qualify in written test. The written test will comprise of a) Test of Reasoning b) Test of English Language c) Test of quantitative Aptitude d) Test of General and Financial Awareness Test Centers: 1. Mumbai 2. Delhi 3.Kolkata 4. Chennai 5.Guwahati For more information and application form: www.idbibank.com www.employmentnews.gov.in or employment news dated 18-24 November 2006

News

Capital market exposure of Banks may go up If the modified Reserve Bank of India guidelines come into force from January 2007, the aggregated capital market exposure of banks can go up to 40% of their networth on both solo and consolidated basis. However, banks' direct capital market exposure will be limited to 20 percent of their individual net worth. Currently, banks' capital market exposure is restricted at 5 percent of their total outstanding advances. Within the overall new ceiling of 40 percent, banks' direct investment in shares, convertible bonds, debentures, units of equity oriented mutual funds and all exposure to venture capital funds should not exceed 20 percent of their net worth.

Class Room

Innovative instruments to raise banking capital Sunil Gidwani & Robin Roy (Business Line 18.11.2006) In an age where risk determined performance management is increasingly getting into board level agendas and where moves towards capital convergence are the order of the day, banks are compelled to look at innovative ways of continuously shoring up their capital base. Over the years since Basel I, banks have been providing for expected credit losses on credit portfolios, based on their historical defaults. Banks are currently required to provide for adequate capital for both credit and market risks on their banking and investment portfolios respectively. Under Basel II, banks can expect to put aside capital according to the "riskiness" of their credit portfolios and are now requird to have a capital cover for operational risks. Though Basel II is not a legal document, to synchronise with global trends and expectations of all stakeholders, banks are planning to adopt these guidelines as per local regulatory directives. In India, the transition to the new capital adequacy framework in accordance with Basel II norms (originally scheduled for March 2007 but recently extended), would require banks to raise additional capital, particularly for some of their credit portfolios and operational risk. Till now banks have not had many options to raise capital. It is here that the recent RBI guidelines, which allow banks to raise capital by issue of Innovative Perpetual Debt Instruments (IPDI) and Debt Capital, open the doors for looking at "innovative instruments" to raise further capital. Lets's take a look at the salient features of these instruments and the minimum qualifying requirements: Innovative Perpetual Debt Instruments are eligible to be issued as Tier I capital. It can be issued in rupees or with prior approval in foreign currency. Maximum amount that can be raised is 15 % of Tier I capital reduced by intangible asset. As the name suggest, the maturity period is perpetual. The instruments can be issued at fixed or floating rate referenced to a market determined rupee interest benchmark rate. As regards trading in options, investors are not allowed to exercise put options. Call options are exercisable only after 10 years and with RBI approval. Step option can be exercised in conjunction with the call option, and the step-up not nore than 100 bps. If the capital adequacy ratio is not met, then there can be lock-in period for the interest payment. In case of losses, RBI approval is required for payment of interest. Debt capital instruments are eligible to be issued as Upper Tier II capital. Maximum amount that can be raised should not exceed Tier I capital reduced by intangible assets. The maturity period is minimum of 15 years. The instruments can be issued at fixed or floating rate referenced to a market determined rupee interest benchmark rate. As regards trading in options, investors are not allowed to exercise put options. Call options are exercisable only after 10 years and with RBI approval. From the aforesaid features one can note that these instruments can be termed as what are globally known as hybrid intruments, that is, those having characteristics of both equity and debt capital which exhibit all the benefits of debt but can be treated as equity, creating a powerful proposition. This enables spacing out of maturity profiles of instruments.

Class Room

Gold based deposit scheme - proposal Bankers are trying to moot a gold-based scheme to raise the long term deposits. The scheme will be designed to induce people to invest in the yellow metal while simultaneously offering banks a new source of funds. The 'Gold Accumulation Scheme' as it is being referred to, was discussed by bankers at a meeting convened by Indian Banks' Association on Thursday. The proposed scheme will work like this; A customer can buy gold by depositing the market price of the metal with the bank. The bank will provide the customer a receipt for physical deposit of gold. The customer can either get the gold in physical form or its value at the prevailing market price anytime after a specified period, say five or 10 years. A customer can keep on depositing funds ( in other words, buying gold ) at intervals of his convenience and accumulate it for 5-10 years. Interest at a nominal rate will be paid on the deposit. For the customer, it will work like a Systematic Investment Plan. On the other part, banks will buy gold futures to hedge against price variations.

News

'Bank boards must check for compliance' The board of directors of banks will be responsible for ensuring that an appropriate compliance policy is in place to effectively manage compliance risk faced by banks, said the Reserve Bank of India in a notification issued. Compliance includes strict observance of all statutory provisions contained in various legislations and also following the guidelines issued by organisations such as Indian Banks' Association, Foreign Exchange Dealers' Association of India, Fixed Income Money Market and Derivatives Association of India and so on, it said. The board may set up a separate board or committee for this purpose, which should review compliance function on a quarterly basis. A compliance department should be set up at the head office of the bank or in the case of foreign banks, it should be at the banks' principal office in India. The chief compliance officer should be the nodal point of contact between the bank and regulator. No lock-in period for NRIs' sale proceeds The RBI has dispensed with the lock-in period for remittance of sale proceeds of immovable property of NRIs or Persons of Indian Origin from their Non-Resident Ordinary (NRO) accounts in India. The remittance of such sale proceeds was subject to a lock-in period of 10 years. Karnataka Bank offers new facility Karnataka Bank Ltd has enabled its real time gross settlement (RTGS) facility MoneyQuick under Internet banking. Customers using the bank's Internet banking facility would be able to transfer funds from their account to their or third party accounts at RTGS-enabled branches of other banks across the country Banks want registry to check asset stripping In India, banks have been at the receiving end of borrowers who after defaulting on their payments dispose off assets which are charged to lenders. In many cases, legal action has followed well after the assets have been stripped totally. The problem could have been obviated if policy makers had moved on a few initiatives like the setting up a central registry for registering both immovable and movable assets. The Asian Development Bank has sounded out the government about its willingness to provide technical and financial assistance in setting up an electronic operated central registry. It will enable banks to have access to data and information on defaulters among borrowers as well as properties that are already pledged with other lenders. A central registry could help curtail asset stripping and minimise frauds among borrowers.

News

Tarapore warns against SBI ownership transfer The former Deputy Governor of the Reserve Bank of India and Chairman of the Committee on Fuller Capital Account Convertibility, Mr S.S. Tarapore, has cautioned against the impending transfer of ownership of State Bank of India from the RBI to the Government. Mr Tarapore felt that this transfer would aggravate the problem of capital strengthening of public sector banks, as the Government is already finding it difficult to infuse more capital in these banks. PNB launches health insurance product Punjab National Bank (PNB) launched PNB Arogya Shree to provide health insurance for its 35 million customers. The new offering is a product of Reliance General that has been tailor-made for PNB customers. Our large customer base has helped us in getting the premium amount lowered. It will have additional features and would be marketed through our branches," Mr K. Raghuraman, Executive Director, told. The scheme would initially be available on a pilot basis at 64 select core banking solution (CBS) branches in Delhi, Mumbai and Lucknow with effect from today. This pilot would run until December 31. From January 2007, the product would be available at about 450 CBS branches across the country. Union Bank launches new service Union Bank of India has launched Union Mitr, a financial education counselling service, available at 51 centres across the country. This service will offer information on products, services, and provide guidance on opening a bank account, information on managing savings, as well as on management of existing debt. The bank plans to use village knowledge centres, which are attached to rural branches, for this purpose. HSBC to charge for current accounts HSBC Holdings has become the first major British bank to say it will start charging for a current account, raising the prospect that other lenders will follow suit and end free current-account banking. HSBC's online banking arm First Direct is to charge £19 per month for customers who do not deposit £1,500 per month or maintain an average balance of £1,500. Sources at several banks told in April that free account current banking could end as banks sought recoup money lost as regulators clamped down on fees in other areas. HSBC and Barclays introduced free banking about 20 years ago and Britain remains one of only a handful of countries not to charge customers who remain in credit RBI clamps down on Sangli Bank The Reserve Bank of India (RBI) has imposed some restrictions on the ailing Sangli Bank, including expansion of advances, as the small-size private sector bank's capital adequacy has fallen to 1.84 per cent. The financial health of the bank, having presence in the sugar belt of south-western Maharashtra, turned precarious in 2005-06 as its capital adequacy ratio (CAR) nosedived to 1.64 per cent from 9.30 per cent in March 2005. The banking sector regulator has asked the bank management not to go in for large deposits and not to increase the lending exposure.There are restrictions on opening new branches as well. In 2005-06, Sangli Bank had posted a loss of Rs 29.27 crore for the second year in a row. Sangli Bank is among a few other private banks - Ratnakar Bank, Dhanalakshmi Bank, Catholic Syrian Bank and Citi Union Bank - which are way behind in meeting the banking regulator's norm of a minimum net worth of Rs 300 crore. No mobiles in Bihar banks Alarmed by rise in the incidents of bank robbery in Bihar, the state police has warned of penal action if its directive to switch off the mobile phones while entering banks in the state capital is not being strictly adhered to. A decision to ban the use of the mobile phones was taken at a meeting of senior police officials with representatives of various nationalised and private banks yesterday. Now closed-circuit cameras would be installed at the main entrance of the banks besides at the cash counters and the strong rooms.

Class Room

Security Alert--------Phishing Phishing is a recent form of cyber attack in which the fraudsters induce internet users to divulge sensitive, confidential information relating to bank accounts. the technique uses email to "fish" the internet hoping to " hook" users into supplying them the login-IDs, passwords, PINs, credit card information etc. In a typical phishing attack, a user receives an email purported to be sent by a financial institution. The email will carry the spoofed ( spoofing: creating a look alike/shadow/mirror copy) image or logo of the financial institution and will attempt to convince the user to provide / part with personal, account details by directing him to visit a web link (hyperlink) given in the email message. when the user clicks the hyperlink, he will be led to a fictitious web page, which will be a look alike / exact replica of the website of the financial institution but hosted by the fraudsters. An unsuspecting user, unaware of such a malicious activity will be requested to provide his personal / account details in the fraudulent website in the pretext of some exigencies like updating bank's database, for cross-verification etc. The fraudsters then use the information for fraudulent transactions causing huge financial losses to the individuals and financial institutions. Phishing attacks involve thousands of users. In a single phishing attack, a fraudulent email message is sent to thousands of users with the hope that at least a small percentage of users will respond. The trends show that on an average, 5-10% users respond to such e-mails. Successful phishing counter measures involve educating the users to be careful while handling emails even though they appear to be emanating from legitimate sources. What needs to be remembered is that banks will not request customers for such sensitive information in the first instance, leave alone through relatively unreliable modes like internet / email etc. This necessitates an user to pay close attention to the contents of any email that seek any personal information. The basic approach for an effective anti-phishing effort includes detection, prevention and awareness. The phishing menace cannot be handled solely by the end-users, financial institutions nor stringent industry standards but the solution lies in taking counter measures at all levels. All users in the bank should exercise caution while disclosing personal information on the internet / e-mail.

News

Canara Banks Children Deposit Scheme Canara Bank is launching a deposit scheme for children upto 12 years on Children's Day. Called 'SB Canchamp Deposit Scheme' it allows children to start a deposit with a minimum amount of Rs.100. On opening the account, the deposit holder will get a savings box and a personal photo folder-cum-memoir. The child will also get an education loan eligibility card. Using the card, the child can avail educational loan as per the prevailing bank scheme once he or she completes HSC of plus two. ICICI banks NRI deposit scheme ICICI bank has introduced a new product ' NRI SmartSave Deposit', a fixed deposit scheme for non-resident Indians. Under this scheme, a customer who has a fixed deposit in any bank's overseas branch can get the amount transferred to ICICI bank in India on maturity. The bank will settle all the paper work. Even after the amount is transferred to India, the deposit will continue to remain in NRE/NRO savings account. The bank is also offering free international credit card insurance and free personal accident insurance with the scheme. RBI clarification on Duplicate Draft ( Financial Express 14.10.06) The RBI said in case of delay in issue of duplicate demand draft beyond a fortnight, banks have to pay interest at the rate applicable for fixed deposit of corresponding maturity only to the purchaser or beneficiary of the draft and not a third party. RBI said the period of a fortnight for issue of duplicate demand draft would apply only in cases where the request has been made by the purchaser or the beneficiary. This would not be applicable in case of third pary endorsements, RBI said in a release.

News

Banks propose fee for pass books Banks have appealed to the RBI to relax its recent stipulation making issue of passbooks compulsory and free of cost to savings bank account holders. Some banks, particularly large private and foreign banks, are of the view that this adds to their cost. 6000 SBI officers opt for early exit Over 6000 officers of SBI have sought early separation (retirement) for reasons ranging from bleak future career prospects to difficulty in adjusting with information technology and intensive work environment. At present the total officers strength of the bank is 55000. The scheme which was thrown open in April 2005 was closed by October end this year. SBI faces regulatory resistance overseas SBI which has a presence in 30 countries, has faced regulatory resistance in three countries -- US, Singapore and Australia -- in its foray into full fledged banking operations. Even the Singapore Monetory Authority has asked SBI to furnish a sovereign guarantee to allow upgradation of its offshore banking operation to undertake retail banking. However, the bank, on its part, has refused to agree to Singapore financial regulator's diktat. Even, ICICI Bank is facing stiff resistance in the US and Singapore in its expansion efforts. The latest to deny SBI a full license to undertake comprehensive banking activities is Australia. The Australian banking regulator has given a much restricted license to SBI to upgrade the bank's rep office in Sydney, while the bank has applied for a full license to enter all aspects of banking including local banking, trade finance, treasury operations and even investment banking. The bank has not been allowed to accept public deposits and can only accept deposits from corporates.

Bank Stock News

DCB to consider raising FII limit Development credit Bank Ltd board is meeting on November 24 to discuss options to raise capital and increase the cap of FII investment. Lakshmi Vilas bank to issue bonus, rights The bank has fixed November 24 as the record date to determine the shareholders eligible for bonus and rights issue. The bonus shares will be issued in the ratio of 1:2 ( one share for every two held). The rights issue will be in the ratio of 1:1 (one share for one share held) at a price of Rs.50 per share (Rs.10 face value plus Rs.40 premium), however the bonus shares would be excluded while determining the rights shares entitlement.

News

Capital rejig -- to look attractive Public sector banks hoping to go public have to clean up their books and reduce their bloated equity base. The likes of Indian Bank, Central Bank of India, United Bank of India and Punjab & Sind Bank are in the process of doing just that. They do this in two stages. In the first stage, they ask the Government to write off the accumulated losses against the capital infused by the Government. In the second stage, a portion of the remaining equity (afte the write-off) is converted into preference capital that will carry an interest rate of about 8%, subject to government approval. Indian Bank, for instance, set off accumulated losses of about Rs.3,800 crore against its capital base of Rs.4,574 crore. It further got the Government to convert about Rs.400 crore of equity into preference capital. Following there steps, the bank's earnings per share improves from a little over Rs.1 per share to nearly Rs.7 (before conversion to preference) and about Rs.14 per share after conversion based on March 2006 earnings. HDFC Bank gets notice on credit card promises The Monopolies and Restrictive Trade Practices Commission (MRTPC) issues a notice of inquiry to HDFC Bank for not preventing direct selling agents from making false promises to its credit card customers. The report alleged that the customers were not told the terms and conditions when they signed the documents given by direct selling agents (DSAs) and the card holders come to know about the terms only after receiving the plastic money. The report also said the customers are not revealed schedule of charges to be levied by the bank, the method of calculating interest rates and penal charges. HDFC Bank has outsourced credit card selling business to 11 companies in the National Capital Region. These companies appoint DSAs to sell the credit cards. Customers are not informed that DSAs are not employees of HDFC Bank, the report said. Tax Deduction at Source (TDS) --- Senior Citizens The RBI has told several commercial banks not to deduct interest tax payable on fixed deposits of senior citizens. Senior citizens are eligible for tax exemption on the interest earned on fixed deposits for which they have to submit Form 15 H and Form 15 G to their respective banks. The Finance ministry is receiveing complaints that several banks are deducting tax even after senior citizens submit the forms. Most of the banks to whom notices have gone are in public sector, ICICI Bank is the only private bank. DCB to consider raising FII limit Development credit Bank Ltd board is meeting on November 24 to discuss options to raise capital and increase the cap of FII investment.

Bank Stock News

Corporation Bank- Reinventing itself Dalal Street Journal (Oct-30 to Nov-12,2006) Corporation bank, one of the premier PSU banks, has recently completed 100 years of its eventful existence. Very recently, it was in the news for forging a strategic alliance with Oriental Bank of Commerce and Indian Bank. If this alliance succeeds, it will become a role model for other public sector banks and small private sector banks to leverage each other's strengths. Under the 'Memorandum of Intent' of this strategic alliance, the three banks will collaborate in building e-payment system share IT and treasury resources, among other things. In fact, eight areas have been identified for this collaboration, with provision for further expansion into other areas of cooperation as they move along. This alliance is expected to give these banks fillip to their business and, at the same time, control their costs. The concept of this alliance has been borrowed from the US aviation business. Even though only a memorandum of intent has been signed presently, it has alrealdy created enough excitement among other banks and academicians. If this alliance becomes successful, it will become a case study in the B-schools. The best part about this alliance is that it has been initiated independently by the Chairmen of the three banks and has not been done at the behest of the central government. This shows that public sector banks are thinking on their own to take on the competition from foreign banks which would become real after 2009. The second best part about the alliance is that the Chairmen of these banks have been able to get the second tier of their respective banks involved (upto the General Managers' level ) in this alliance which would ensure that this alliance will last even if any of the Chairman of these banks gets transferred or retires. " We have been able to percolate it down to the second tier," declares B. Sambamurthy, Chairman, Corporation Bank. Further, Oriental Bank of Commerce is very strong in north India while Corporation Bank is very strog in south India, and hence there is not much of overlapping of their business. This would ensure that this alliance works on the larger scale. But Corporation Bank is not doing this alone. Despite being 100 year old, it is still nimble when it comes to formulating its business strategy. It is now reinventing itself, says Sambamurthy. The bank, which was once very strong on cash management with almost monopoly situation, has seen stiff competition emerging from other banks. This has affected the bank's business. Corporation Bank also had good revenues from primary dealership, but recent competition in this business has made survival tough. As if this was not enough, the bank was concentrating more on the bottomline rather than expanding the size of its business. All there had adverse impact on the bank's financials. The bank's topline hardly improved from Rs.2520 crore in March 2003 to Rs.2824 crore in March 2006. On the other hand, Andhra Bank which has similar income improved in a much faster way, In fact, in 2002, Corporation Bank has 50 % higher net profit than Andhra Bank, but today the situation is that Corporation Bank has lesser amount of profit as compared to Andhra Bank despite having similar revenues. "We need to reinvent ourselves and hence we are investing substantially on technology" informs Sambamurthy. But that is the only one part of the story. The bank is also looking at expanding the size of its business as this will give it new business dimensions. "We want to grow" emphasizes Sambamurthy. The bank has adopted double-pronged strategy for growth. On the one hand, it wants to acquire new customers while, on the other hand, it wants to cross-sell not only its own banking products but also third party products. Today, the bank boasts of 70 lakh customers, out of which near about 50 lakh customers have savings bank accounts. The bank will be tapping these 50 lakh customers for cross-selling . Just to cite an example, the bank can sell products like housing loans or automobile loans to existing SB customers. One of the greatest advantage of cross-selling is that the bank already knows the creditworthiness of its customers due to its past banking operations. This not only reduces the possibility of NPAs but also makes processing of the loans faster. For acquiring new customers, the bank has identified 4-5 strategic categories like software professionals, doctors, NRIs and so on. The bank would be designing unique solutions for each of these categories so that the products of the bank become appropriate for each category. The bank has already initiated the process and a couple of pilot projects are already on. In fact, LIC has 26.32 % stake in the bank and Corporation Bank sells LIC products. There are many people buying LIC policy through Corporation Bank although they are not the bank's customers. Corporation Bank will try to rope them in as its customers for the SB accounts. Further, the bank is also focussing on three Ps: Product, People and Process. Under 'Process', the bank is standardizing documents and reengineering process so that productivity per employee goes up further. Not many would be aware, but even today, Corporation Bank has one of the best productivity per employee (business per employee). For the year ended March 2005, the bank had business per employee of Rs.4.47 crore as against the industry average of Rs.3.47 crore. The ratio further went up to Rs.5.27 crore in the year FY06. Further, the bank also boasts of the one of the lowest NPAs in the country (amongst the public sector banks) with a NPA ratio of 0.64 % as on March 2006. In fact, it was the first public sector bank to publish its result under the US GAAP since 1998-99. On the financial front, the bank reported income of Rs.2,824 crore with net profit of Rs.444.46 crore. The bank's business stood at Rs.56,839 crore. In the first half of the current year, the bank has seen smart improvement in both topline as well as bottomline. While its topline improved from Rs.1,244 crore to Rs.1,562 crore, its bottomline improved from Rs.229 crore to Rs.271 crore. The bank has set an overall business target of Rs.70,000 crore for the year March 2007 and wants to take it up to Rs.1,00,000 crore by March 2009. The current market price of Corporation bank is Rs.402 and we are expecting the bank to report a net profit of Rs.520 crore for the full year, which would be highest since inception. The bank has an equity capital of Rs.143.44 crore, giving an EPS of Rs.36.25. The bank has been a consistent dividend paying company and paid Rs.7 per share as dividend. With negligible floating stock of its shares, it is likely that Corporation Bank will outperform its peers on the bourses.

News

Central Bank of India's capital revamp plan gets nod The Union Cabinet on Thursday approved an equity capital restructuring plan of Central Bank of India to strengthen its balance sheet and help raise capital at a competitive cost. Under the plan, the bank would convert Rs.800 crore of its equity capital of Rs.1,124 crore into Perpetual Non-Cumulative Preference Share capital at an annual floating coupon of 8 percent (benchmarked to repo rate plus spread of 100 basis points). The coupon rate would be readjusted annually based on the prevailing repo rate on the relevant date. New non-life insurance joint venture Allahabad bank, Indian Overseas Bank, Karnataka Bank ltd., Dabur Investment Corporation and Sompo Japan Insurance Inc have come together to form a non-life insurance company. The proposed company shall be called Universal Sompo General Insurance Company Ltd. The shareholding pattern will be Sompo Japan 26%, Allahabad Bank 30%, Dabur Investment 10%, Karnataka Bank 15% and Indian Overseas Bank 19%.

Recruitment

Career opportunity at an emerging new generation bank YES Bank, for more information visit www.yesbank.in sub link Human Capital sub link Carrers OR http://www.yesbank.in/careers_sme.html

Recruitment

The Dhanalakshmi Bank Limited A leading profit making private sector bank with an all india network of 181 branches and business of around Rs.4500 crores requires for its expansion plans, officers in the Senior/Middle Management cadres for the following positions for its offices across the country. Designation Scale Chief Financial Officer --V/VI Zonal/Dept Head --V/VI Cost accountant -- III/IV Marketing officers -- I/II/III/IV Branch Heads -- II/III/IV Credit Officers -- II/III IS Audit Officers --II/III For more details kindly visit www.dhanbank.com

Bank Stock News

Lakshmi Vilas Bank-interview with CEO Mr.R.M.Nayak Business Line (08.11.2006) Karur headquartered Lakshmi Vilas Bank (LVB) has entered its 81st year of existence on November 3. The bank, as its chairman and CEO, Mr. R.M.Nayak, recalls has risen in strength and stature from a humble beginning with a modest capital of Rs.70,000 in 1926 to a 'vibrant' private sector bank with a network of 232 branches across 10 states and one Union Territory. "Our strategy has been two pronged, to broaden our reach in retail business by gaining a footprint in emerging geographies and deepening our existing relationship by bundling and cross-selling financial and insurance products under one roof. Our future plans are aimed at achieving volume led growth, improving operational efficiency and strengthening risk management efforts. We ultimately intend to have a tight business focus, enhance our brand image, have a strong customer orientation and achieve operational efficiency through the power of technology," he said. Excerpts from the interview; What have you envisioned for the bank as it crossed this milestone ? We aim to emerge as one of the top old generation private sector banks with strong fundamentals, be a proactive, socially responsible and professionally managed organisation with customer orientation and deliver services on the powr of technology. To commemorate this occasion, a month long customer-contact programme and new product launches are being organised. We have been taking strategic initiatives to strengthen the operational efficiencies across the organisation. The HR initiatives include promotions and recruitment, and skill enhancements through lateral induction in specialised areas of operation. Policy initiatives are oriented towards serving our customers effectively and efficiently. Our technology initiatives include launch of Core Banking Solution at five select branches on a pilot basis before end-November and extension of the same across 150 branches in about a year's time. In the second phase, all the remaining branches will be brought under CBs. How do you propose to strenghten your brand image ? To spread the message that the bank is changing with the times and as a part of branch building and image makeover exercise, we have adopted a new logo, which represents deep cultural values of the bank, an image of solidarity and strong convictions, even as it stands on the threshold of change. In our bid to project the bank's philosophy of 'wealth to every one associated with LVB', we have unveiled the new logo. The red-coloured base symbolises stability and goodness. The image of goddess Lakshmi embossed on a circle of ochre gold represents riches on the foundation of trusted values together with modernity and an ever-evolving change. The graphical rendition of gold coins reflects prosperity in a modern form. At this juncture, smaller banks are the picks for the bigger players to grow in size quickly and easily. How do you propose to combat this threat and establish a niche in the market place ? Though size is one of the factors that provide competitive edge, the fact that on the face of competition from financial conglomerates, small sized banks continue to operate profitably underscores the point that size does not matter at all times. This apart, expanding market and growing income levels have increased the niche market size and portend an active and more prominent role for the bank to play in the future.

News

Corporation Bank hikes NRE and FCNR(B) rates The changed rates are effective from 01.11.2006 Rates on NRE deposits: Deposit for one year to less than two year-----6.34% Deposit for two year to less than three year------6.17% Deposit for three year to 10 years---------6.11% Rates on FCNR(B) deposits: Deposit currency Dollar Deposit for one year to less than two year----5.34% Deposit for two year to less than three year----5.17% Deposit for three year to less than four year-----5.11% Deposit for four to less than five years--------5.11% Deposit for five years-----5.12% Lakshmi Vilas Bank, South Indian Bank and Central Bank of India have also revised their rates on the same lines.

News

Two more co-operative banks under moratorium The Reserve Bank of India has placed two more UCBs ( Urban Co-operative Banks ) , Parivartan Cooperative Bank and Miraj Urban Cooperative Bank, under moratorium following run on deposits. Parivarthan Cooperative Bank is a Mumbai based UCB, while Miraj Urban Cooperative Bank is in Miraj near Kolhapur. Depositors of these two banks will be allowed a one-time withdrawal of Rs.1000. A bank has also been imposed on lending. Development Credit Bank raises deposit rates The bank has raised interest rates on term deposits of below Rs.15 lakhs. The rates on 46-87 days have been revised to 6% per anum ( 4.75%) and on deposits for 88 to 177 days it has gone up to 7% per anum ( 6% ). For deposits of 178 to 237 days, the rates have been revised to 8.08% pen anum ( 6.50% ).

Recruitment

Andhra Bank invites application for the post of Clerks Last date for receipt of application : 18.11.2006 Tentetive date for exam : 21.01.2007 Vacancies : 128 Statewise vacancies: Delhi-6, Uttar Pradesh-3, Madhya Pradesh-5, Goa-4, Gujarat-6, Kerala-4, Orissa-25, Uttaranchal-4, Punjab-5, Rajasthan-6, Andhra Pradesh-60. Reservation: Unreserved-69, SC-16, ST-14, OBC-29 ( Visually Handicap-3, Hearing Impairment-1, Ex-servicemen-18) Qualification: Pass in (10+2) examination or its equivalent Age: Min 18 years / Max 28 years Written test pattern: a) Objective type tests 1. English Language 2. Test of Numerical Ability 3. Test of Reasoning 4. Test of Clerical Aptitude b) Descriptive Test Written Test Centre: New Delhi,Lucknow,Bhopal, Panaji, Ahmedabad, Ernakulam, Bhubaneswar, Dehradun, Chandigarh, Jaipur, Hyderabad, Vishakapatnam, Vijaywada, Tirupathi, Nizamabad, Karimnagar, Rajamundry, Kurnool. For more information: www.andhrabank-india.com Employment News dated 28 Oct to 3 Nov 2006

Recruitment

Andhra Bank invites applications for the Specialist Officer posts in MMGS-III, MMGS-II and JMGS-I Last date for receipt of application : 18.11.2006 Late date for receipt of application from far flung areas : 24.11.2006 Tentetive date for examination JMGS-I : 28.01.2007 01. Post :Financial Analyst Grade: MMGS-III Scale of Pay : Rs.18240-22280 Vacancies : 15 Age : min 21 years/ max 35 years Reservation : Unreserved-9, SC-2, ST-1, OBC-3, Visually Handicap-1 Qualification: MBA(finance) / PGDBM(finance) / ICWA / ACS / CA / CFA or any other equivalent degree Experience: Minimum of 5 years experience in credit department of a commercial bank in officer cadre. 02. Post : Law Officers Grade : MMGS-II Scale of Pay : Rs.13820-19920 Vacancies : 15 Age : min 21 years / max 35 years Reservation : Unreserved-7, SC-2, ST-2, OBC-4, Visually Handicap-2, Orthopaedically Handicap-1 Qualification: Graduate Degree in Law (3 year or 5 year integrated course) with minimum 50% marks from a recognised University Post Graduate Degree in Law will be preferred ( In case of SC/ST and Persons with disability they should have a minimum of 40% marks) Experience: a) Active practice at the Bar for 5 years or as Law Officer in legal department in a commercial bank / financial institution with a minimum of 5 years, of which a minimum of 2 years should be as an Active Practicing Advocate. b) The Active practice should be with special reference to Banking. c) The candidate should also have exposure in Documentation, Title Scrutiny, Debt Recovery, Securitisation, Reconstruction of Financail Assets, Arbitration and work related therefor. 03. Post : Information Technology Officer Grade : MMGS-III Scale of Pay : Rs.18240-22280 Vacancies : 15 Age : min 21 years / max 35 years Reservation : Unreserved-7, SC-2, ST-1, OBC-5, Visually Handicap-1 Qualification : BE / BTech / ME / MTech / (Computer Science/IT) / MCA / MSc (Computer Science/IT) Experience : Minimum of 5 years experience as officers in IT environment in Banks/Financial Institutions & Working knowledge in Core Banking implementation, Oracle, Networking, Web based systems, Mail messaging, Systems Security is desirable. 04. Post : Information Technology Officer Grade : MMGS-II Scale of Pay : Rs.13820-19920 Vacancies : 25 Age : min 21 years / max 35 years Reservation : Unreserved-15, SC-3, ST-1, OBC-6, Visually Handicap-2, Orthopaedically Handicap-1 Qualification : BE / BTech / ME / MTech / (Computer Science/IT) / MCA / MSc (Computer Science/IT) Experience: Minimum of 2 years experience as officers in IT environment in Banks / Financial institutions & working knowledge in Core Banking implementation, Oracle, Net Working, Web based systems, Mail messaging, Systems security is desirable. 05. Post : Information Technology Officer Grade : JMGS -I Scale of Pay : Rs.10000-18240 Vacancies : 35 Age : min 21 years / max 30 years Reservation: Unreserved-18, SC-8, ST-3, OBC-9, Visually Handicap-2, Orthopaedically Handicap-1 Qualification : BE / BTech / ME / MTech / (Computer Science/IT) / MCA / MSc (Computer Science/IT) Experience: Not essential Selection Procedure: a) Information Technology Officer (JMGS-I) The selection will be made on the basis of performance in written test and/or group discussion and/or interview. b) Financial Analyst (MMGS-III), IT Officer (MMGS-III), IT Officer (MMGS-II), Law Officer (MMGS-II) The selection will be made on the basis of group discussion and/or interview. Written test pattern for IT officer (JMGS-I) a) Objective Type Test 1. Test of General Awareness 2. English Language 3. Quantitative Aptitude 4. Test of Reasoning 5. Subject Knowledge (area of specialisation) b) Descriptive Test in the area of specialisation. Test Centres: for IT Officer (JMGS-I) New Delhi, Kolkata, Mumbai, Chennai, Hyderabad, Bangalore, Bhubaneswar, Ernakulam, Vishakapatnam, Vijaywada. For more information www.andhrabank-india.com Employment News dated 28 Oct - 3 Nov

Result Update

Karur Vysya Bank The bank has reported 54.76% jump in net profit for the quarter ended September 2006 at Rs.42.56 crore ( Rs.27.50 crore). While the deposits grew by 27.47% advances grew by 25.77%. The capital adequacy ratio of the bank stood at 14.51%. The net NPA stood at 0.49%. UCO Bank The bank has shown flat net profit at Rs.100.69 crore for the quarter ended September 2006 as against Rs.97.88 crore for same period last year. While the gross NPA stood at 3.36% the net NPA stood at 2.02%. The capital adequacy ratio stood at 12.89%. Total business stood at Rs.97,565 crore. Deposits stood at Rs.56,800 crore and Advances stood at Rs.40,765 crore.

Important Events

Mid-term review of Monetory Policy 2006-07 No change in bank rate, CRR and Reverse Repo rate. Repo rate (the rate at which RBI lends money to banks) increased to 7.25% from 7%. Resident individuals would be free to remit upto US$50,000 per financial year as against the earlier limit of US$25,000. The present facility of $10,000 per year for private travel will continue on a self-declaration basis. All Foreign exchange earners may retain upto 100% of their foreign exchange earnings in their Exchange Earners' Foreign Currency Accounts (EEFC). GDP growth forecast at around 8% during 2006-07. Inflation to be contained within 5 to 5.5% during 2006-07 Banks can borrow from their overseas branches and correspondent banks upto 50% of their unimpaired Tier-I capital or $10 million, whichever is higher, as against the earlier limit of 25% . This includes borrowings for financing export credit, ECBs and overdrafts from their head office or nostro accounts. The earlier limit of 25% was excluding borrowing for export credit now this has also been caped. Corporates can raise an extra $250 million in external commercial borrowings (ECB) over the existing limit of $500 million under the automatic route, in a financial year Prepayment of ECBs upto $300 million (earlier cap of $250 million) without reference to the central bank has also been okayed. To help indian companies move abroad, the RBI has lifted the limit on credit and non-credit facilities extended by banks from 10% to 20% of their unimpaired capital. Mutual funds can now invest $3 billion (earlier $2 billion) overseas.

Result Update

State Bank of India The net profit of State Bank of India has fallen marginally by 2.53 % to Rs.1,184.49 crore for the second quarter ended September 30 compared to Rs.1,215.36 crore for same period last year. The decline in profit is attributed to higher tax provision and also the bank did not enjoy the benefit of interest on income-tax refund at Rs.712 crore, available last year. The deposits increased by 10.77% to Rs.3,92,615 crore and advances increased by 21.18% to Rs.2,88,840 crore. The capital adequacy ratio stood at 12.63%. The ratio of net NPA to total asset stood at 1.67%. Bank of Baroda

The net profit of Bank of Baroda increased 11.31% to RS.288.36 crore for the second quarter ended September 30 compared to Rs.259.07 crore for the same period last year. The Net NPA of the bank stood at 0.77% while gross NPA stood at 3.44%. Capital adequacy ratio of the bank stood at 12.93%. Total business has grown 32% (yoy), Advances has grown 45%(yoy).

Under international operations the bank is having 60 offices in 21 countries. The international operations account to 18% of total bank's business and 36% of bank's net profit. The internatioanl operations deposits has grown 60%, advances 51% year on year .

Karnataka Bank

The bank has recorded a net profit of Rs.59.61 crore for the second quarter of current financial year registering a growth of 42.57 % compared to profit of Rs.41.81 crore for same period last year. The net NPA of the bank stood at 1.48% compared to 1.73% last year. The capital adequacy ratio stood at 12.25%..

Indian Bank

The bank has reported a 60% rise in net profit at Rs.169.19 crore (Rs.105.57 crore) for the quarter ended September 30. The Total Business grew 21.06% to Rs.70,317 crore. Total Deposits grew 16.4% to Rs.44,124 crore (Rs.37,907 crore) and Advances grew 29.81 % to Rs.26,193 crore (Rs.20,177 crore). The net NPA have declined to 0.45%. The capital adequacy ratio stands at 12.02%.

The bank is planning to enter capital market and issue its shares to public at hefty premium during November this year.

YES Bank

This bank has reported 50.8 % growth in net profit for the second quarter ending September at Rs.21.49 Crore (Rs.14.25 crore). The capital adequacy ratio of the bank stood at 11.98%. The bank is having 0% NPAs.

Oriental Bank of Commerce

The bank has reported a net profit of Rs.310.75 crore for the quarter ended September 30, up 37.2% over the corresponding figure of Rs.226.51 crore for the previous fiscal.

After writing-off Rs.61.24 crore against liabilities on account of the amalgamation with Global Trust Bank, OBC's net profit for second quarter stood at Rs.249.51 crore , 51% more than Rs.165.27 crore for same period last year. The increased overall profit has come mainly from good cash recovery in NPA assets. The gross NPA has been reduced from 7.9% to 4.8% at Rs.1,848.62 crore. The net NPA has been reduced from 0.8% to 0.5% at Rs.171.01 crore. The capital adequacy ratio stood at 13.34%. The total business of the bank grew 24% to Rs.98,432 crore.

Indian Overseas Bank

The bank reported a net profit of Rs.249.98 crore for the quarter ended September 30, up 25% compared to Rs.198.49 crore for same quarter previous fiscal. Total deposits increased by 20.31% to Rs.57,018 crore and advances increased by 40.28% to Rs.41,141 crore. The low cost deposits (current and savings bank) accounts for 37.66 % of total deposits. While the gross NPA stood at 2.96%, net NPAs stood at 0.57%. Capital adequacy ratio stood at 14.66 %.

Syndicate Bank

The bank reported a net profit of Rs.205 crore for the quarter ended September 2006, up 17% compared to Rs.175 crore for same period last fiscal. Total deposits grew by 51% to Rs.71,065 crore (Rs.47,144 crore). Total advances grew by 48% to Rs.46,168 crore (Rs.31,149 crore). While gross NPA stood at 3.67%, net NPA stood at 0.89%. The capital adequacy ratio stood at 11.74%.

Punjab National Bank

The bank's net profit has risen 19.7% to Rs.505 crore for the quarter ended September 2006, as against Rs.422 crore for the corresponding quarter of last fiscal. The total business of the bank stood at Rs.2,10,755 crore. The deposits grew 17.4% to Rs.1,28,415 crore and advances grew 28.9% to Rs.82,340 crores. The low cost deposits (Current and savings bank) accounts for 48.7% of total deposits. The net NPAs stood at 0.18%.

Class Room

Compensation for delayed payment to VRS optees In an interesting judgement in the legal history, District Consumer Forum, Chennai North, has directed Indian Bank to pay a compensation of Rs.15,000/- each to 144 VRS optees for the delayed payment of pension commutation. The forum has passed the order armed with a directive from a division bench of Madras High Court to adjudicate the issue based on merits and on the points raised before the forum including the question relating to jurisdiction. The ex-employees of the bank opted for the VRS 2000 scheme and retired from service and were relieved on different dates. Their main complaint was that after lapse of few months, the commutation of pension amount was given to them, for which the bank had not paid any interest. The disbursement of reduced pension after few months had caused mental agony and sufferings. Initially, when they moved the forum, it was resisted by the bank arguing it had no jurisdiction since it was a dispute between an employer and employee. The forum also closed the complaints after a single judge of Madras High Court held that it has issued notice without jurisdiction. Later, a division bench of the High Court directed the forum to decide all cases on merit. By complying with the direction and taking into consideratin all factors, the forum came to the justifiable conclusion that it got jurisdiction to adjudicate the dispute. After hearing the points advanced by the parties, it held that the complainants are consumers as contemplated in the consumer protection act 1986 and the dispute raised by them falls under the definition of "consuemer dispute". The Economic Times (26.10.2006)

Classroom

Payment by cards ? Exercise Caution !!!!!!!!!!!!!!! There are many technologically innovative products, services and delivery channels being launched and widely made use of in the banking domain. One of these options being marketed extensively is the various multi-utility branded cards which includes the credit and the debit cards. These co-branded cards apart from being used in the ATMs are also used at POS terminals (point of sale). The next time you decide to use your credit card on a shopping trip, think again. There was a news item that appeared in the Times News Network recently titled " 4 held for siphoning off plastic cash". The Mumbai police have busted a hi-tech credit card fraud which could be the crime of the future. Four gadget savvy youngsters, two of them software engineers, got together to earn some quick bucks and ended up siphoning over Rs.3 lakh. According to the police, the mastermind of the gang was a 19 year old who realised that if credit cards were swiped though a portable magnetic card reader, the personal data of the customer stored on it could be accessed. He then teamed with another 19 year old, and ordered the card reader from USA, through the internet, since the same was not available in India. These boys befriended a waiter at a hotel to take their plan ahead, Every time someone paid by credit card for food in that hotel, the waiter would discreetly swipe it through the magnetic card reader, which is no more than 6-inches long and can be stored in the pocket. Once the job is done, the waiter would hand over the device to the fellow fraudsters who would download the data from the cards onto a personal computer. The duo would then feed the data into blank cards, available in the grey market making them ready for use in shopping malls or to withdraw money from ATMs. Portable magnetic card reader can store data from about a dozen cards which are swiped through it. What care do the ordinary card users need to take in this regard? The best thing that could be done is to ensure that the cards are swiped in the cardholder's presence. This can be ensured in most of the POS payments like shopping malls, automobile fuel stations etc. However, it could be difficult in the payment of hotel food bills where the practice generally followed is that the cards are handed over for swiping to the waiters along with the bills and received back along with the payment slip for signature. Probably the best thing to do in this case is to exercise prudence and hand over the cards for payment only at the cash counter/card swiping activity is visible. Yet another check would be that since most of the credit card liabilities statements are availabel online in the repective websites, periodic checks on the transactions posted would give an assurance that no unauthorized transactions are raised in the accounts. Needless to mention, the purpose of this article is not to instill any undue fear in the usage of the cards but to convey to you to exercise caution and prudence while transacting with cards.

News

IndusInd Bank launches "Indus Gold Debit Card" IndusInd Bank has launched "Indus GOLD Debit card " in association with VISA at an annual fee of Rs.350 plus service tax. The card has a daily withdrawal limit upto Rs.50,000 from the ATMs, said a press release from the bank. It has a daily POS (point of sale) limit of Rs.1 lakh, personal accident insurance of Rs.1 lakh and lost card liability up to Rs.1 lakh. The customers will receive free transactions on any VISA ATMs in India and mobile alerts on every transaction.

Result Update

Bank of India The bank has reported 61% jump in its net profit to Rs.212.13 crore for the quarter ended September 2006 as against Rs.132.18 crore for same period last fiscal. The net NPA is brought down to 1.07% from 2.25%. The total deposits moved up 20% to Rs.1,03,293 crore from Rs.85,856 crore. Advances grew 24% to Rs.75,097 crore from Rs.60,614 crore. The low cost deposits (Current and Savings) constitute 40.4% of aggregate deposits. The capital adequacy ratio stands at 11.85%.

Bank Stock News

Development Credit Bank (DCB) lists with bang The bank which came out with IPO recently got listed on Friday. Although most brokerage houses and papers gave "avoid" rating to IPO, it listed with a bang. The stock, which was issued at a price of Rs.26, quickly climbed up after the opening bell to an intraday high of Rs.48.7 and eventually closed the day at Rs.47.5, a gain of 82.5%. The stock raked up a first day trading turnover of Rs.368 crore and a total of 8.19 crore shares changed hands.

Result Update

Andhra Bank The bank has reported a net profit of Rs.146.44 crore for the quarter ended September 2006, a growth of 10.19% compared to Rs.132.89 crore for same period last year. The gross NPA is reduced to 1.76% from 2.27%. The Net NPA is reduced to 0.10% from 0.26%. The total Business stood a Rs.56,113 crore registering a growth of 14.47% from Rs.49,021 crore in the corresponding quarter of previous fiscal. The advances improved by 23.22% to Rs.23,600 crore while deposits improved by 8.85% to Rs.32,513 crore. Explaining the slowdown in deposits growth, the bank said it has discouraged bulk deposits and focussed more on retail deposits to reduce cost of deposits and improve net interest margin. Corporation Bank The bank reported a net profit of Rs.127.01 crore for the second quarter of this fiscal reporting a growth of 20% compared to Rs.105.6 crore over same quarter of last fiscal. While the gross NPA stood at 2.16% the net NPA stood at 0.48% at the quarter end. The capital adequacy ratio stood at 13.32%. The total business rose to Rs.66,022 crore registering a growth of 32% compared to same quarter last fiscal. While deposits increased 27.74% to Rs.38,017 crore advances increased 38.46% to Rs.28,004 crore. The share of low cost deposits (Current and Savings Bank) account for 32% of total deposits.

Result Update

Federal Bank The net profit of Federal Bank has grown by 28 % to Rs.69.46 crore for the second quarter of current year as against Rs.54.16 crore for same period last year. While gross NPA is down to 4.13% as against 5.97%, Net NPA is down to 0.67% as against 1.60%. The capital adequacy ratio stands at 12.80%. The total business grew by 21.71% to Rs.31,002 crore. Deposits grew 14.5% to Rs.18,288 crore and advances grew to Rs.12,714 crore. The above results does not include the results of Ganesh Bank of kurundwad which Federal Bank took over recently. ICICI Bank The bank has reported a 30% rise in net profit at Rs.755.01 crore in second quarter against Rs.580.05 crore in the same period last year. The advances stood at Rs.1,55,403 crore at September 2006 as against Rs.1,07,070 as at September 2005. The deposits stood at Rs.1,89,499 crore at September 2006 as against Rs.1,20,452 as at September 2005. In the second quarter, the bank raised hybrid Tier I capital worth $340 million from international markets and Rs.800 crore from the domestic markets. It also picked up Rs.1,200 crore through issue of upper Tier II bonds in the local market. The average interest cost of the domestic Tier I capital is about 10% and that of upper Tier II capital is 9.25%. The Capital Adequacy ration of the bank is 14.34%.

News

UCO Bank to sell Reliance General Insurance Products Reliance General Insurance Company Ltd, a part of the Anil Dhirubhai Ambani Group, has entered into a tie-up with UCO Bank for selling personal accident insurance products through the bank's network across the country. Under the arrangement, UCO bank depositors would be covered under the personal accident insurance scheme at a one-shot premium of Rs.6.99 for rupees one lakh. The sum assured may go in multiple of rupees one lakh upto a maximum of rupees five lakh. Stan Chart 2-in-1 account The bank has relaunched its 2-in-1 accounts by offering an 8% per annum interest for 188 days, the best rate in the market in that tenure. This account comes with four free-cash withdrawal transactions at any visa ATM across India. The minimum value for the term deposit is Rs.1 lakh and an initial cheque of Rs.10,000 is required to fund the linked savings account. this special offer is open to customers only during the campaign period (September 18 to December 31) Indian Bank As part of bank's ongoing Centenary year celebrations, it has introduced Premium Current Account and the SB Platinum Account with Sweep facility. This revolutionary offer ensures that surplus amounts in your above account get invested in short term deposits, fixed deposits or reinvestment schemes to earn interest like any other term deposit. ¯ Auto sweep at Daily intervals;¯ In multiples of customers’ choice;¯ Choice of tenure upto One year Sweep facility is available in all the CBS branches across the country. Along with the Sweep facility, the customer will also get a host of free add-ons as under PREMIUM CURRENT ACCOUNT FREE ** ð Internet, Mobile & Phone Banking ð ATM-cum-Global Debit Card as eligible ð DDs/BPOs AT PAR upto Rs.3 lakhs ð Stop payment & attestations carriedout ð IndBank Bill Pay (Utility Bill payment)* SB PLATINUM FREE ** ð Life Insurance cover for Rs.1 lakh from LIC ð Personal Accident Insurance cover - Rs.1 lakh ð Internet, Mobile & Phone Banking ð ATM-cum-Global Debit Card ð DDs/BPOs AT PAR upto Rs.25000/- ð IndBank Bill Pay (Utility Bill payment)* ð Personalised Cheque Book * in select cities ** conditions apply. for further details you can contact nearby branch of the bank.