Failure of Private Banks in recent years:

1. Bank of Cochin Ltd., merged with State Bank of India 2. Lakshmi Commercial Bank Ltd., merged with Canara Bank 3. Bank of Bihar Ltd., merged with State Bank of India 4. Hindustan Commercial Bank Ltd., merged with Punjab National Bank 5. Miraj State Bank Ltd., merged with Union Bank of India 6. Traders Bank Ltd., merged with Bank of Baroda 7. Bank of Credit & Commerce International merged with State Bank of India 8.Bank of Tamilnadu Ltd., merged with Indian Overseas Bank 9. Bank of Thanjavur Ltd., merged with Indian Overseas Bank 10. Parur Central Bank Ltd., merged with Bank of Inda 11. United Industrial Bank ltd., merged with Allahabad Bank 12. Purbanchal Bank Ltd., merged with Central Bank of India 13. Bank of Karad Ltd., merged with Bank of India 14. Bareilly Banking Corporation Ltd., merged with Bankof Baroda 15. Sikkim Bank Ltd., merged with Union Bank of India 16. Benares State Bank Ltd., merged with Bank of Baroda 17.Nedungadi Bank Ltd., merged with Punjab National Bank 18. Global Trust Bank merged with Oriental Bank of Commerce 19. Ganesh Bank merged with Federal Bank 20. United Western Bank Ltd., now proposed to be merged with IDBI Bank

CANARA BANK TIES WITH AGRI. BANK OF CHINA

Canara Bank has tied up with Agricultural Bank of China . Both banks have agreed to extend cooperation in areas like transformation of rural poor, credit linking of SHG, credit administration, NPA management and Agricultural lending.

KOTAK MAHINDRA BANK SELLS GOLD BARS

24 Carat Swiss gold bars under brand name "Gold Eternity" will be sold. Gold bars will be available in lots of 50 and 100 grams. Availabe in 42 branches of the bank.

INDIAN OVERSEAS BANK-LIABILITY INSURANCE

IOB OFFERS 'LIABILITY INSURANCE' COVER, AS A VALUE ADDITION ON HOME LOANS AND OTHER RETAIL LOANS AS WELL. THE EFFORT IS AIMED AT INSULATING THE DEPENDENTS FROM ANY UNEXPECTED CONTINGENCY. THE BORROWER HAS THE FLEXIBILITY OF OPTING TO LOAD THE PREMIUM ON TO THE LOAN AMOUNT, WHICH IS RECOVERED BY THE BANK OVER THE LOAN DURATION AS PART OF EMI OR PAY IT SEPARATELY. TAX BENEFIT CAN ALSO BE AVAILED ON PREMIUM PAID.

Recruitment

UCO Bank calls for Clerks in ST category: LAST DATE FOR RECEIPT OF APPLICATION 16.10.2006 DATE OF EXAMINATION 17.12.2006 Total Vacancies -10 (ST category only) State wise break up Punjab -6 Haryana -4 FOR MORE INFORMATION EMPLOYMENT NEWS DATED 23-29 SEPTEMBER-2006

Recruitment

State Bank of India calls for Probationery Officers for its Associate Banks: LAST DATE FOR RECEIPT OF APPLICATION 24.10.2006 DATE OF WRITTEN EXAMINATION 07.01.2007 Total vacancies -846 Bank wise break up SBBJ-200, SBH-30, SBIn-72, SBM-121, SBP-269, SBS-57, SBT-97 Categorywise break up SC-131, ST-86, OBC-212, GEN-417 FOR MORE INFORMATION EMPLOYMENT NEWS DATED 23-29 SEPTEMBER-2006 www.sbi.co.in

Recruitment

State Bank of India calls for contractual appointments for various categories: 1. Marketing & Recovery Officer-Farm Sector (for SBI) Vacancies-650 Break up- Gen-353, SC-118, ST-66, OBC-113 2. Marketing & Recovery Officer-Farm Sector(for associate banks) Vacancies-224 Break up- SBBJ 25 vacancies - SC-4, ST-2, OBC-2, GEN-17 SBH 20 SC-3,ST-1,OBC-5,GEN-11 SBIn 12 SC-3,OBC-3,GEN-6 SBM 8 SC-2,OBC-2,GEN-4 SBP 141 SC-23,ST-11,OBC-41,GEN-66 SBS 16 SC-1,ST-2,OBC-4,GEN-9 SBT 2 ST-2 3. Technical Officer-Farm Sector(for associate banks) Vacancies-18 Break up- SBIn 9 vacancies -SC-2,ST-1,OBC-2,GEN-4 SBM 5 OBC-1,GEN-4 SBS -4 SC-1,ST-1,OBC-2 LAST DATE FOR RECEIPT OF APPLICATION 14.10.2006 FOR MORE INFORMATION EMPLOYMENT NEWS DATED 23-29 SEPTEMBER 2006 www.sbi.co.in

News

Banking Statistics: Bank Rate 6% (wef 29.04.2003) IDBI Medium Term Lending Rate 10.25% (wef 30.01.2004) Saving Bank Interest 3.5% (wef 01.03.2003) Cash Reserve Ratio 5% (wef 02.10.2004) Statutory Liquidity Ratio 25% (wef 22.10.1997)

News

Help me to make this blog more useful, kindly send yoursuggestions at prathi_tth@rediffmail.com You can also mail important news/schemes etc at abovemail address.

News

Dasara Diwali Loan Utsav from State Bank of Mysore Special rate of interest Housing Loan (floating) up to 5 years --- 8% 5 to 15 years --- 8.75% above 15 years --- 9.25% Housing Loan (fixed) up to 5 years --- 8.50% 5 to 15 years --- 9.25% Car Loan (new car) 8.50% to 9.50% Car Loan (used car) 10.00% to 10.50% Personal Loans 12.50 to 13.00% for details contact 080-22353467

News

Foreign Bank's profits: (B.L.23.09.2006) Standard Chartered Bank 782 crore Citi Bank 706 crore HSBC 602 crore ABN Amro 252 crore Bank of America 146 crore Deutsche Bank 126 crore American Express Bank 53 crore BNP Paribas 19 crore (figures for 2006)

News

UBI, Tata AIG launch scheme for education loan borrowers United Bank of India and Tata AIG Life Insurance Co Ltd have announced the launch of 'United Shiksha Suraksha Scheme", a group insurance plan for the education-loan borrowers of the bank. The scheme, to be available at all branches of UBI, will offer insurance cover at a low cost to students above 18. The premium can be a part of the education loan. It will be available to the existing education loan accounts (nearly 12,000) totalling Rs176 crore as also to new education loans. In case of death of the co-borrower during the study period, the entire sum insured will be paid to the student.

News

JBIC signs pact with SBI (BL 22.09.06) Japan Bank for International Cooperation (JBIC) have signed an agreement with State Bank of India for setting up a credit line of up to Rs 325 crore. As per the agreement, the credit line to SBI would be used to finance Indian corporates to import machinery and equipment from Japanese exporters.

News

Syndicate Bank online facility (BL 21.09.06) Syndicate Bank has introduced the facility of electronic payment of central excise and service taxes for its customers to facilitate faster and more secure mode of payment. The facility would be available to its customers who have registered with the Commissionerates in Bangalore, Belgaum, Chennai, Delhi, Mangalore and Mysore. Assesses could use any of the CBS branches of Syndicate Bank. The facility would be available on 24X7 basis. There was no ceiling on the amount of payment and no charge would be levied on the services rendered by the bank.

News

Dena Bank to sell Rs 600 crore NPAs (BS, FE 21.09.06) Mid-sized public sector bank Dena Bank is taking steps to clean its balance sheet of non-performing assets (NPAs). It is in the process of selling a large chunk of its NPAs. The Mumbai-based bank, having a larger presence in the western region, plans to sell Rs 600 crore of NPAs in two phases - in the third and fourth quarters of 2006-07. Dena Bank recently appointed consulting firm PricewaterhouseCoopers to advise it on the proposed sale of Rs 600 crore NPAs. It expects to bring down its gross NPAs to below 4 per cent from 6.4 per cent at the end of June 2006 and net NPAs to 1.5 per cent from 3.24 per cent.

New Product

Tax Saver Term Deposit: 1. In terms of central government notification No.203/2006 dtd 28.07.2006 bank term deposits are kept at par with NSC, PPF and assessee can invest the amount in bank term deposits and avail tax benefits under section 80C of income tax act 1961. 2. Many banks have already started to issuing the above. 3. PAN number is compulsory for opening the deposit. 4. The minimum amount varies from bank to bank. 5. The maximum amount is capped at Rs.100000/- per year. 6. The deposit certificate to bear PAN number and Signature of assessee in addition to normal features. 7. The maturity period is fixed at 5 years. 8. No loan can be availed by assessee. 9. Most banks are offering 8% interest on the deposit. 10. Premature withdrawal of deposit is not allowed. (for other information kindly contact any branch of nearby bank)

News

Corporation Bank selling gold coins: . 24 carat fine gold of 999.9 purity . available in 2gm/5gm/8gm gold coins and 50gm/100gm minted bars . high quality product of PAMP S.A. Switzerland . in case of bulk purchases, the shape and emblem/symbol can be customized as per customers request

News

Union Bank of India has entered into an agreement with Director General of Foreign Trade (DGFT) and electronic payment facility has been made available by DGFT for payment of application fees for licensing schemes. Union Bank is one of the few banks offering e-payment facility for licence fees.

News

Karnataka Bank Ltd has launched a new fixed deposit scheme for 365 days, with effect from September15. The scheme offers a highly competitive simple interest rate of 8.25 percent. The period of deposit is fixed as 365 days and interest is payable on maturity date. Nomination facility is available to the depositor under the scheme. The scheme is open for limited period only.

News

Oriental Bank of Commerce, Indian Bank and Corporation Bank signed an allieace to share business. The Memorandum of Intent will cover e-payment system, sharing of IT infrastructure, training, ATMs, treasury resources, loan syndication, capital market and international forays.

News

A unique union (BS 14.09.06) In more ways than one, the IDBI-United Western Bank deal is unique. First, the Reserve Bank of India (RBI) took 10 days to decide on who would be the right suitor for the troubled Satara-based old private sector bank. In the mergers of Global Trust Bank and Ganesh Bank of Kurundwad the suitor was chosen within 48 hours of the imposition of moratorium. Second, for the first time, the interest of shareholders has been taken care of by the prospective acquirer. Finally, the winner itself - IDBI- was a big surprise. The RBI conducted an informal bidding process for the troubled bank which has a positive net worth of around Rs 70 crore. The prospective acquirers were expected to meet certain key conditions. First among them was the protection of all depositors without any help from DICGC. Second, the regulator wanted an expeditious resolution to restore the confidence of the depositors and the lenders of United Western Bank. On this count, two foreign banks - Citi and Standard Chartered - failed as they cannot go ahead with an acquisition without conducting due diligence. Third, the RBI preferred to choose those who would not seek any forbearance in terms of statutory requirement like CRR and SLR. Fourth, the central bank also wanted an assurance on the fate of the 3,000-odd employees of the bank. Finally, it gauged the prospective acquirer’s commitment to protect the interest of United Western Bank’s shareholders. IDBI scored over others on this count by offering Rs 28 per share against a book value of around Rs 13. To this extent, United Western Bank has been awarded to the highest bidder in a well laid-out, transparent process.

News

Three state-owned banks to hunt in pack (BS 14.09.06) Three public sector banks are set to form an unprecedented strategic alliance. The three banks are Corporation Bank, Indian Bank and Oriental Bank of Commerce. The alliance will allow the banks to collectively build loan assets as well as fee-based businesses. They will leverage the combined strengths of their balance sheets, though the pact does not envisage any equity participation. The combined asset base of the three banks is Rs 1,47,079 crore, higher than that of Punjab National Bank, the country’s largest nationalised bank. The plan includes sharing branches, automated teller machines (ATMs) and even employees. One bank's employee can work in another bank on deputation. Similarly, all three banks will discuss expansion plans for branches and ATMs before setting them up to exploit geographical and locational synergy, a source in Delhi said. The boards of Corporation Bank and Indian Bank have already cleared the proposal. The Oriental Bank board will take up the issue on Friday. Next, the banks will sign a memorandum of understanding on the strategic alliance covering business, infrastructure and people. Corporation Bank Chairman B Shambamurthy and Indian Bank CMD KC Chakrabarty declined to comment on the development. However, they did not deny it.

News

IOB takes BhOB reins (ET, BL 12.09.06) The Chennai-based government bank, Indian Overseas Bank (IOB) has finally taken control of Bharat Overseas Bank (BhOB), an unlisted private bank. This is the first instance of a public sector bank taking over a strong private sector bank without resorting to the moratorium route. IOB has virtually bought out other BhOB shareholders who now have a token stake left in the bank. BhOB was promoted by seven banks, with IOB being the largest shareholder with a 30% stake, while other shareholders were Bank of Rajasthan (16%), ING Vysya Bank (14.66%), Federal Bank (10.67%) Karur Vysya Bank (KVB) and South Indian Bank (10%) and Karnataka Bank (8.67%). All these banks, however, still hold a token of one share of BhOB.BhOB has a branch network of 102 branches while IOB has over 1,500 branches.

News

Suvarna may merge with Cosmos Co-operative (BS 12.09.06) In what appears to be a move to pre-empt moratorium and other restrictions from the Reserve Bank of India (RBI), the city-based Shree Suvarna Sahakari Bank (Shree Suvarna) has proposed a merger with Cosmos Co-operative Bank, another Pune-based bank, which is on an aggressive takeover spree over the last couple of years in its attempt to increase its branch network. Currently, Shree Suvarna has 12 branches with a deposit base of Rs 810 crore and advances of Rs 650 crore. Its NPAs total Rs 125 crore, 13 per cent as against seven per cent maximum allowable under the RBI norms.

News

Federal takes over 32 branches of Ganesh bank (BS 12.09.06) It is good times again for the beleaguered depositors of the erstwhile Ganesh Bank of Kurundawad (GBK), thanks to the bank’’s merger with Federal Bank. Over one-and-a-half lakh depositors can now enjoy a number of customer-centric products of the Kerala-based Federal Bank. Federal Bank recently took over over 32 branches of the 85-year-old GBK spread across Maharashtra and Karnataka with deposits of Rs 250 crore and loans of Rs 105 crore. GBK’s loss of Rs 7.5 crore triggered the merger process and even after RBI’s order for the merger, the matter was pending in the Supreme Court. The depositors were agitating for a quick merger and had even sent pleas to the apex court to expedite the merger.

News

SIB gets award for excellence in banking tech (BS 11.09.06) The South Indian Bank (SIB) has won a special award for excellence in banking technology from the Institute of Development and Research in Banking Technology (IDRBT). The institute, which is the technical arm of the Reserve Bank of India (RBI), has presented the award to the bank in recognition of the excellent contribution made in the area of information systems policies and practices. SIB was the only old generation private sector bank to receive this prestigious award.

News

SyndBank adds 1 mn customers in 2 months (BS 11.09.06) The Manipal-headquartered public sector Syndicate Bank added one million new customers over the last two months - from July 10 to September 9. Bank’s Chairman and Managing Director C P Swarnkar had launched a door-to-door campaign two months ago as part of the bank’s programme to bring banking within the reach of the underprivileged sections of the society. During the campaign, all 2,100 branches of the bank, spread over 35 regions in the country added at least 500 new account holders. Swarnkar had led the field staff from the front in bringing the customers who were so far not able to open account in banks. The bank introduced a new ‘No Frills Account’ called “SyndSamanya” to enable the underprivileged persons to reap the benefits of banking by accepting their accounts even with a zero balance.

News

`Payroll' card to draw salary from ATMs of SBI (BL 09.09.06) `The trend is just catching up. You can see such people draw cash from the ATM in the early hours of the day, when you probably come out to buy paper from the stall opposite or take a morning walk. They use the card with ease,' a Karur Vysya Bank official told. With banks targeting the un-banked (particularly in the rural pockets) under the financial inclusion project and the extension of the banking service to all sections of the populace, the proliferation of such services is no surprise. To minimise cash handling, State Bank of India has come up with a novel idea of the `payroll' card. The employer, who incidentally is also a customer of SBI, prepares the wage-sheet (with staff details) and hands the soft-copy to the bank. The bank uploads the details and within minutes, the system enables the said employee to draw cash from any of the ATMs of SBI. The customer's account is automatically debited. The customer (who is the employer in this case) has to bear the `upload charge,' which is said to be minimal. SBI sources said the concept was well-received in Chennai.

News

Shamrao Vithal acquires Mahavir Co-op Bank (BL 08.09.06) Shamrao Vithal Co-operative Bank (SVC) has acquired Kolhapur-based Mahavir Co-operative Bank for Rs 13 crore. The process was complete on September 3, said Mr S. Hemmady, Chairman, SVC. "The acquisition of Mahavir will give us entry into the agricultural sector where we have no exposure and no experience, at present," he said. Mahavir has four branches in Kolhapur and one each in Sangli and Jaisinghpur. It also has five rural branches in Maharashtra's sugar belt. Though the staff strength of Mahavir is only 86, SVC has decided to offer a voluntary retirement scheme at the insistence of Mahavir's employees. About 55-60 employees are likely to accept the VRS, Mr Hemmady said.

News

SBH eyes Rs 1,000 cr additional deposits (BS 08.09.06) State Bank of Hyderabad (SBH) is conducting a deposit mobilisation fortnight from September 11 to September 26, at all of its 946 branches spread over the country. During the fortnight, the bank would offer 0.50 per cent extra interest on all-time deposits invested for a period of one year and above. As a value-added service, the bank would also offer personal accident insurance cover to the depositors of Rs 1 lakh and above, free of cost. The bank is confident of mobilising one lakh new accounts contributing to Rs 1,000 crore additional deposits during the deposit mobilisation fortnight.

News

United Western Bank: A failure well flagged (BL 07.09.06) The failure of United Western Bank (UWB) does not come as a surprise to those in the know of the affairs of the bank, because, at least since 1998 the Reserve Bank of India has been regularly flagging failure symptoms, warning and penalising the bank for various irregularities. On May 30, 1998, the RBI imposed penalty of Rs 10 lakh in respect of irregular transactions in respect of Makharia Group of companies. In 1999, the RBI again asked the bank to pay a fine of Rs 5 lakh because it had allowed Gujarat Telephone Cables Ltd, to use cash credit facility for subscribing to the capital issue of GTCL Mobilecom. In 2001, the RBI again had reasons to fine United Western Bank. The bank had obtained the RBI's permission to give an interest-free loan of Rs 6 crore to the UWB Employees Equity Trust, but actually gave the Trust a loan of Rs 20 crore. The SEBI has also warned the bank and the employees' unions for various irregularities.

News

PNB to launch credit cards (BL 07.09.06) Pinjab National Bank(PNB) said, it will launch its own credit cards within six months and would soon float gobal tenders for this purpose. The bank has appointed Ernst and Young as consultant for the credit card business and would float global tenders soon

News

SBBJ offers reduced rentals for lockers (BL 07.09.06) State Bank of Bikaner and Jaipur (SBBJ) has launched a special festival bonanza offer that provides safe deposit lockers at reduced rentals. This offer is open for four months from September 1. The reduced rentals would be applicable for the current year only for those persons hiring the new locker during the festival bonanza period. In metros/urban area, the small-size lockers rent has been reduced from Rs 1,000 to Rs 750. In semi-urban areas, the rent has been reduced from Rs 750 to Rs 650. For rural areas, the rate has been reduced from Rs 750 to Rs 600.

News

Pandyan Grama Bank deposit scheme (BL 07.09.06) Pandyan Grama Bank (PGB) has introduced a new deposit scheme `PGB Double" that doubles in 102 months with a special offer of quarterly compounding interest rate of 8.25 per cent. Senior citizens are offered 0.50 per cent more with the deposits doubling in 96 months. The bank which is observing September as Deposit Mobilisation Month, offers an interest rate of 8 per cent per annum for new term deposits of one year period and above. While senior citizens are offered 0.50 per cent more, higher rates are offered for deposits of Rs 15 lakhs and above depending upon the period

News

LKB on strike against merger with Centurion (BS, FE 07.09.06) The employees of Lord Krishna Bank (LKB) began an indefinite strike demanding the intervention of the Reserve Bank of India (RBI) and the ministry of finance to block the merger of the Kerala-based bank with Mumbai-based Centurion Bank of Punjab (CboP).

News

Federal Bank comes up with VRS package (FE 07.09.06) The Federal Bank has for the first time announced a voluntary retirement scheme (VRS) package for its staff. A top bank official said the offer, open up to September 30, was likely to get good response. The VRS package with a limit of Rs 10 lakh was for those above 50 years of age. As the bank had never undertaken such a scheme earlier like other public and private sector banks, there were a good number of employees in the over-50> category. At the officer-level, there would over 50% of the around 2,500> staff falling in the above-50 category.

Know this

PMRY is Prime Minister's Rojgar Yojana

Know this

DD = Demand Draft TT = Telegraphic Transfer MT = Mail Transfer

Rate of Interest

Karnataka Bank Ltd has revised NRE deposits wef 01.09.2006 Deposits for one year to less than 2 years ---- 6.41% Deposits for 2 years to less than 3 years ---- 6.24% Deposits for 3 years to 5 years ---- 6.18%

News

The Tarapore Committee on Fuller Capital Account Convertibility has recommended allowing industrial houses to set up banks. The policy could also allow non-banking finance companies to convert into banks. The committee also suggested that the share of Government or RBI in public sector banks should be reduced to 33 percent.

News

Bank of Rajastan has tied up with State Bank of India for ATM sharing. Bank of Rajastan customers can now access over 5500 SBI ATM's.

News

United Bank of India has sought to bundle insurance with its tax saving term deposit scheme. The bank's new initiative to mobilise deposits comes with fre accident insurance for depositors who intend to make use of section 80 C of Income Tax Act.

News

The Andhra Bank board which met on 30.08.06 has ' in principle' decided to foray into life insurance business as a joint venture with the Japanese life insurance major Dai Ichi Mutual Life Insurance Company and Bank of India.

News

The board of directors of Corporation Bank, which met in chennai has decided to increase the Prime Lending Rate (PLR) by 0.25% points wef 01.09.2006. With this the bank's benchmark PLR will go up from 11.25 to 11.50%.