J&K Bank to launch apple insurance scheme

In a significant step to promote horticulture sector, Jammu & Kashmir Bank has decided to launch a first-of-its-kind apple insurance scheme in the state next week. Bank chairman Haseeb Drabu said J&K Bank has made an investment of Rs 800 crore in horticulture, which needs to be enhanced keeping in view the vast potential of the sector. Drabu also suggested minimising risk factors in the horticulture sector to prompt financial institutions to make greater investments in the sector. He said apple, cumin seed and saffron are ideal products for profitable investments.

Loan recovery may lose muscle

Failed wrestlers and goons are an integral part of the country’s sophisticated financial sector. They are used in large numbers to recover dues from customers. Not averse to using some muscle power on the customer, they invariably get the job done. If the Reserve Bank of India (RBI) has its way, these tough-talking, muscle-flexing men could soon find themselves without a job. The RBI is working on a comprehensive set of guidelines that will make banks responsible for ensuring that their recovery agencies do not recruit individuals with a criminal background. The RBI move follows a sharp rise in complaints from credit-card holders against the recovery methods used by some banks. Recently, the Supreme Court had also expressed its strong reservations against banks recruiting goons for recovering loan dues. This does not mean that defaulters will be protected against the banks. Banking sources said once the new guidelines were in place, all banks would have to ensure that recovery agencies did a thorough background check of their employees, including police verification. The proposed RBI guidelines will also require each bank to publish the names of its recovery agencies, including on its website. Collection agents would be barred from making calls from any other number.

Banks cannot ignore weak spots: S&P

The banking sector in India is highly fragmented, with 53 domestic banks accounting for about 93 per cent of the system’s assets. The top 10 banks together account for 66 per cent of the system (as of March 31, 2006), with the remaining 27 per cent market shared between 43 banks. The banking business benefits from scale, especially with the increasing role of marketing- and technology-based systems. With about three-fourths of the banking systems’ assets in the hands of 29 public sector banks, a meaningful consolidation is not possible until this segment is included in the process. Hence, it is the government that determines the extent and speed of consolidation in the Indian banking system.

SBI`s sale of gold coins

State Bank of India (SBI) on Tuesday launched its scheme of retail sale of gold coins/ingots to the public at 15 branches in Andhra Pradesh. Coins of 2 gm and 5 gm and ingots of 10 gm will be initially sold at these branches. TS Bhattacharya, MD, said the scheme assumed importance as the corporates have started gifting gold coins to their employees as part of their reward and recognition initiative besides growing importance of gold at social functions.

ICICI sells 5.3% stake in Andhra Cement

ICICI Bank Ltd has sold its 5.30 per cent stake in Andhra Cement Ltd thereby reducing its holding in the company to 0.35 per cent from 5.65 per cent. It sold 62,10,997 shares, according to the data available on the BSE.

ICRA to rate IOB loans, exposures

Credit rating agency ICRA said it has signed a MOU with Indian Overseas Bank (IOB) for assigning ratings to the latter's loans and other exposures. The ratings would be done under the standardized approach of the RBI's New Capital Adequacy Framework for Basel-II, the rating firm said in a filing to the Bombay Stock Exchange.