Invest in SBT Navavarsha Deposit

State Bank of Travancore (SBT) has launched ‘Navavarsha,’ a new deposit scheme offering 9.10% for a period of one year but less than two years. This rate is applicable for all domestic term deposits and NRO under all segments but not for NRE rupee deposit. An additional 0.30% is offered to senior citizens (9.40%) for a minimum deposit of Rs 5,000.

 

 

Court order puts spoke in banks’ loan recovery process in non-metros

Non-performing assets are mounting but our hands are tied, say bankers in non-metropolitan cities, pointing to a recent observation made by the Madurai Bench of the Madras High Court. A Bench observed that secured creditors in metropolitan areas could approach either the Chief Metropolitan Magistrate or District Magistrate for relief under the SARFAESI Act.

 

Before proceeding further on this, here is a look at how the NPAs in banks are handled. Often, banks try to settle NPA cases out of court. If that doesn’t work, the banker issues a possession notice in newspapers that is mandated under Section 13 (4) of the Act, in order to initiate recovery proceedings. Then the banker has to wait for 30 days for the party to come to settle the dues. If there is no response, the bank can initiate legal possession under Section 14 (this Section deals with persons who are eligible to take security possessions). The crux of the observation lies here.

 

‘Banks can keep loan security for other liabilities’

The Kerala High Court has ruled that a bank is entitled to retain security, including gold ornaments deposited for taking a loan, even after clearing the same, if the borrower is yet to repay another loan. Justice V. Chithambaresh ruled that a bank had a general lien over all forms of security, including gold ornaments deposited by the borrower, for the entire outstanding balance amount due to the bank. The court made the ruling while disposing of a writ petition filed by Nakulan of Kollam seeking a directive to Canara Bank to release the gold ornaments pledged as he had already cleared the loan. According to him, when took a personal loan in January 2012 from the bank, no security had been given. The petitioner later took another loan by pledging his gold ornaments. He said that though he repaid the gold loan, the bank was retaining it as security for his personal loan. The bank took the stand that the gold ornaments could be released only after the petitioner cleared his entire liability.

‘Banks can keep loan security for other liabilities’

The Kerala High Court has ruled that a bank is entitled to retain security, including gold ornaments deposited for taking a loan, even after clearing the same, if the borrower is yet to repay another loan. Justice V. Chithambaresh ruled that a bank had a general lien over all forms of security, including gold ornaments deposited by the borrower, for the entire outstanding balance amount due to the bank. The court made the ruling while disposing of a writ petition filed by Nakulan of Kollam seeking a directive to Canara Bank to release the gold ornaments pledged as he had already cleared the loan. According to him, when took a personal loan in January 2012 from the bank, no security had been given. The petitioner later took another loan by pledging his gold ornaments. He said that though he repaid the gold loan, the bank was retaining it as security for his personal loan. The bank took the stand that the gold ornaments could be released only after the petitioner cleared his entire liability.

‘Banks can keep loan security for other liabilities’

The Kerala High Court has ruled that a bank is entitled to retain security, including gold ornaments deposited for taking a loan, even after clearing the same, if the borrower is yet to repay another loan. Justice V. Chithambaresh ruled that a bank had a general lien over all forms of security, including gold ornaments deposited by the borrower, for the entire outstanding balance amount due to the bank. The court made the ruling while disposing of a writ petition filed by Nakulan of Kollam seeking a directive to Canara Bank to release the gold ornaments pledged as he had already cleared the loan. According to him, when took a personal loan in January 2012 from the bank, no security had been given. The petitioner later took another loan by pledging his gold ornaments. He said that though he repaid the gold loan, the bank was retaining it as security for his personal loan. The bank took the stand that the gold ornaments could be released only after the petitioner cleared his entire liability.

‘Banks can keep loan security for other liabilities’

The Kerala High Court has ruled that a bank is entitled to retain security, including gold ornaments deposited for taking a loan, even after clearing the same, if the borrower is yet to repay another loan. Justice V. Chithambaresh ruled that a bank had a general lien over all forms of security, including gold ornaments deposited by the borrower, for the entire outstanding balance amount due to the bank. The court made the ruling while disposing of a writ petition filed by Nakulan of Kollam seeking a directive to Canara Bank to release the gold ornaments pledged as he had already cleared the loan. According to him, when took a personal loan in January 2012 from the bank, no security had been given. The petitioner later took another loan by pledging his gold ornaments. He said that though he repaid the gold loan, the bank was retaining it as security for his personal loan. The bank took the stand that the gold ornaments could be released only after the petitioner cleared his entire liability.

‘Banks can keep loan security for other liabilities’

The Kerala High Court has ruled that a bank is entitled to retain security, including gold ornaments deposited for taking a loan, even after clearing the same, if the borrower is yet to repay another loan. Justice V. Chithambaresh ruled that a bank had a general lien over all forms of security, including gold ornaments deposited by the borrower, for the entire outstanding balance amount due to the bank. The court made the ruling while disposing of a writ petition filed by Nakulan of Kollam seeking a directive to Canara Bank to release the gold ornaments pledged as he had already cleared the loan. According to him, when took a personal loan in January 2012 from the bank, no security had been given. The petitioner later took another loan by pledging his gold ornaments. He said that though he repaid the gold loan, the bank was retaining it as security for his personal loan. The bank took the stand that the gold ornaments could be released only after the petitioner cleared his entire liability.

Open for talks with unions, says IBA chief

With the two-day strike by the United Forum of Bank Unions hardly a fortnight away, the chief executive of the Indian Banks’ Association, Mohan V. Tanksale, has said the bank managements are open for negotiations. “The IBA is open for negotiations with the unions on their demands,” Tanksale told. “We have invited them for discussions for January 29.” He said the IBA, which represents the managements of nationalised, private and foreign banks in the country, had already offered a 5% hike in salary. He also pointed out that the Chief Labour Commissioner had called the bank unions and the IBA for reconciliation on January 13, ahead of the proposed strike by UFBU on January 20-21. UFBU, a collective of ten major unions of bank employees and officers, is planning to go on a nation-wide strike starting from the morning of January 20 to press for its demand for wage revision.

Open for talks with unions, says IBA chief

With the two-day strike by the United Forum of Bank Unions hardly a fortnight away, the chief executive of the Indian Banks’ Association, Mohan V. Tanksale, has said the bank managements are open for negotiations. “The IBA is open for negotiations with the unions on their demands,” Tanksale told. “We have invited them for discussions for January 29.” He said the IBA, which represents the managements of nationalised, private and foreign banks in the country, had already offered a 5% hike in salary. He also pointed out that the Chief Labour Commissioner had called the bank unions and the IBA for reconciliation on January 13, ahead of the proposed strike by UFBU on January 20-21. UFBU, a collective of ten major unions of bank employees and officers, is planning to go on a nation-wide strike starting from the morning of January 20 to press for its demand for wage revision.

SBI offers 2-year sabbatical to women staff

 

 

 

 

Women employees of SBI can now take two-year sabbatical leave from work for purposes like children’s education. SBI is likely to extend this facility to single male parents as well. “We have brought in a two-year sabbatical for our women staff in case they want to take it for any purposes like education of their children, taking care of the elderly parents/in-laws,” Arundhati Bhattacharya, the first woman to head SBI, told.