Public Sector Banks Share performance 2013

 

Public Sector Bank Shares performance in 2013

Bank	31.12.2013	31.12.2012	Return
Allahabad Bank	95.05	169.90	-44%
Andhra Bank	62.70	117.85	-47%
Bank of Baroda	645.55	866.95	-26%
Bank of India	237.95	342.85	-31%
Bank of Maharashtra	36.00	60.05	-40%
Canara Bank	282.25	495.50	-43%
Central Bank of India	51.15	83.70	-39%
Corporation Bank	260.95	461.80	-43%
Dena Bank	60.80	114.65	-47%
IDBI Bank	66.45	111.40	-40%
Indian Bank	116.15	198.15	-41%
Indian Overseas Bank	51.55	85.65	-40%
Oriental Bank of Commerce	228.85	348.75	-34%
Punjab & Sind Bank	43.90	71.90	-39%
Punjab National Bank	626.45	871.35	-28%
Syndicate Bank	94.60	128.15	-26%
UCO Bank	75.50	78.75	-4%
Union Bank of India	130.40	274.20	-52%
United Bank of India	32.15	80.35	-60%
Vijaya Bank	39.30	62.30	-37%

 

 

IINSS-C date extended

RBI in its notification dtd 30th December 2013 has extended the closing date of Inflation Indexed National Savings Securities, Cumulative 2013  from 31st December 2013 to 31st March 2014.

Union Bank of India new Chairman- Mr. Arun Tiwari

Public sector lender Union Bank of India on Saturday said Arun Tiwari assumed charge as its new chairman and managing director. Tiwari, who has over 30 years of experience, started his career with Bank of Baroda and was an executive director at Allahabad Bank prior to his new job. Tiwari set up the operations of Bank of Baroda in Kuala Lumpur and Singapore and played a key role in the bank's Project Navnirman and Project Sparsh initiatives.

Canara Bank rolls out facility to check status of Aadhaar linkage

Canara Bank has launched a facility to enable customers to do a self-check on whether their Aadhaar numbers have been linked to their account. The bank has also provided a facility for submitting Aadhaar seeding, or mapping, request in the bank’s web site.

Inflation Indexed National Savings Securities‐ Cumulative, 2013

The Government of India will be issuing Inflation Indexed National Savings Securities-Cumulative, 2013. What are these ? Till now the deposits you used to keep with the banks and other financial instituitions will we having fixed rate of interest for a fixed tenure. They were not taking into account the Inflation factor into account. Now the government wants to give returns that is 1.5% above the rate of inflation. So you will be sure that you are beating inflation and getting a better return. Let us get to details of the offer;

1. The issue will be from December 23, 2013 to December 31, 2013. The Government of India reservers the right to close the issue earlier.

2. The issue will be in the form of Bonds.


3. The bonds may be invested by
a) An individual in his individual capacity, on joint basis, on anyone or survivor basis, on behalf of minor as father/mother/legal guardian
b) A HUF (Hindu Undivided Family)
c) “Charitable Institution” to mean a company registered under Section 25 of the Indian Companies Act 1956 OR an institution which has obtained a Certificate of Registration as a charitable institution in accordance with a law in force OR any institution which has obtained a certificate from Income Tax Authority for the purposes of Section 80G of the Income Tax Act, 1961.
d) “University” means a university established or incorporated by a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be an University for the purpose of that act.

4. There is limit on investment. The minimum limit is Rs.5,000/- and maximum limit is Rs.5,00,000/- per applicant per year.

5. The interest on the Bonds will not get any tax benefit and hence is taxable under Income Tax Act, 1961 according to relevant tax status of the bond holders.

6. The bonds will be issued at par. Minimum amount of Rs.5000 (face value) and in multiples thereof.

7. The applications can be made in cash/draft/cheque/online through internet banking. The cheques and drafts should be in favour of the bank (receiving office) and payable at the place where the application is tendered.

8. The date of issue of bonds will be date of receipt of funds/realization of draft/cheque at the receiving office.

9. The bonds will be issued in the form of Bonds Ledger Account (BLA) and held with Reserve Bank of India. A certificate of holding in specified form will be issued to the holder of bonds.

10. The applications for the bonds in the form of Bonds Ledger Account will be received at
a) Branches of State Bank of India, Associate Banks, Nationalised Banks, three private sector banks (i.e. HDFC Bank Ltd., ICICI Bank Ltd., AXIS Bank Ltd.) and SHCIL during their working hours.
b) Any other bank or number of branches of the banks and SHCIL where the applications will be received as specified by the Reserve Bank of India in this behalf from time to time.

11. The nomination facility for the bond holders are available.
a) A sole holder or a sole surviving holder of a Bond(s), being an individual, may nominate in the Form annexed to this notification or as near thereto as may be, one or more persons who shall be entitled to the Bonds and the payment thereon in the event of his/her death.
b) Where any amount is payable to two or more nominees and either or any of them dies before such payment becomes due, the title to the Bonds shall rest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly. In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination.
c) No nomination shall be made in respect of the Bonds issued in the name of a minor.
d) A nomination made by a holder of Bonds may be varied by a fresh nomination as near thereto as may be, or may be cancelled by giving notice in writing to the Receiving Office in the Form annexed to the notification.
e) Every nomination and every cancellation or variation shall be registered at the Reserve Bank of India through the authorised bank and shall be effective from the date of such registration.
f) If the nominee is a minor, the holder of Bonds may appoint any person to receive the Bonds/amount due in the event of his/her death during the minority of the nominee.

12. The bonds shall be transferable to nominee (s) on the death of holder (only individual/s)

13. The bonds will bear interest at the rate of 1.5% (fixed rate) per annum + inflation rate calculated with respect to final combined Consumer Price Index [(CPI) Base; 2010 = 100]. Final combined CPI will be used with a lag of three months to calculate incremental inflation rate (i.e. final combined CPI for September would be used as reference CPI for all days of December). Interest will be compounded with half‐yearly rests and will be payable on maturity along with the principal.

14. The bonds are not traded in secondary market. The good point is that the bonds can be kept as collateral with the banks to get loans frombanks, Financial Institutions and Non‐Banking Financial Company (NBFC). The lien to that effect will be marked in the depository (RBI) by the authorised banks.

15. The bonds are repayable on expiration of 10 years from the date of issue. The investor will be advised by the authorised bank one month before maturity regarding the ensuing maturity of Bonds advising them to provide a Letter of Acquaintance, confirming the NEFT/NECS account details, etc. to the authorised bank. If everything is in order, the investor will be paid within maximum five days of the maturity.

16. Premature repayment/redemption before the maturity date is allowed after one year of holding from the date of issue for senior citizens, i.e. 65 and above years of age and for all others, after 3 (three) years of holding, subject to the penalty charges at the rate of 50% of the last coupon payable. Early redemption to be allowed only on coupon date.

Your Credit Card dues and NPA status

The Reserve Bank of India in its notification dated 20th December 2013 has advised that a credit card account will be treated as NPA (Non-Performing Asset) if the minimum amount due as mentioned in the credit card statement for the month is not paid fully within 90 days from the next statement date. It has also clarified that the gap between the two statements should not be more than a month.

Invest in Corporation Bank 1111 deposit

Corporation Bank has introduced a new deposit of 1111 days. This is limited period offer from the bank and the bank is offering 9.11% p.a. for the same. The deposit can be fixed or cumulative. But the Senior Citizen will not be getting additional rate on the same.

Wage Settlement of Bank employees

UBFU on its meeting held on 23rd December 2013 on wage settlement of Bank Employees which is pending for more than one year without any progress  decided to go on 48 hours strike from 20th January 14 to 22nd January 14. Its also to be noted that the employees went on one day strike on 18th December 2013.

Notes with writings

There is rumors that Banks will not accept currency notes with any writings on it from 1st January 2014. Its also seen that many customers are calling their bank to know the matter and many have promptly deposited those currency notes at banks or exchanged them. But banks have not received any communications till date regarding the non-acceptance on currency notes with writings on it. But if implemented it will be good move.

Wage settlement for Bankers - update on meeting dtd 20 Nov 2013

The meeting held on 20th November 2013 by UFBU at Chennai decided to launch agitation programme to early settlement of demands. They decided that One day nationwide strike will be observed on 19th December 2013. The UFBU will meet on 23rd December 2013 to chalk out further action to be taken.

For Wage settlement issues and other banking related matters your can visit below mentioned website;

http://www.allbankingsolutions.com/

Bank of Maharashtra Quarterly result

Bank of Maharashtra reported disappointing results with 90% growth in its Gross NPA at Rs.2450.48 crore (YoY) and 71.78% decrease in its Net Profit at Rs.46.85 crore (YoY). The Non-Interest Income grew 3.31% at Rs.183.07 crore. Net NPA stood at 1.76% compared to 0.88% YoY. The Capital Adequacy Ratio stood at 10.71%.

RBI monetory policy

Mr. Raghuram Rajan, the RBI Governer in his Monetray Policy review announced today REPO rate is hiked by 25 bps to 7.75%, CRR is left unchanged at 4%, Bank rate is reduced to 8.75%

YES Bank Second Quarter Results

Yes Bank announced its second quarter results today. The Net Profit of the bank grew 21.3% to Rs.371.1 crore (YoY). Non Interest Income (NII) grew to Rs.446.1 crore with growth of 61.2% (YoY). The gross NPA of the bank stood at 0.28% while Net NPA stood at 0.04%. The Return on Equity stood at 23.1% and Return on Assets stood at 1.5%.

The Total Advances of the bank stood at Rs. 47717 crore while deposits stood at Rs.67575.1 crore as on 30 September, 2013. Current and Savings Account (CASA) deposits stood at Rs. 13776 crore taking the CASA ratio to 20.4%.

RTGS 2013

RBI has introduced new RTGS system  with effect from 19th October 2013. Know all about the same by clicking and downloading the below link.


RTGS 2013

Wage settlement meeting dtd 11.10.2013

IBA not came out with any proposal in todays meeting as assured. Other issues discussed. UFBU calls for demonstration on 22 Oct 13 for early settlement.

SBI new Chairperson

Arundhati Bhattacharya is the new Chairperson of State Bank of India. 57 years old Arundhati Bhattacharya assumed office today only. She will head the bank for 3 years. She is also the first chairperson of the Big Brother of Indian Banks, State Bank of India. She was working as Manging Director and Chief Financial Officer of the bank prior to elevation.

Next round of wage negotiations on 11th October 2013

Almost 11 months have passed since the new wage settlement is due for nearly 10 lakh bank employees but still no headway is reached till date. The only item that UFBU and IBA has agreed till date is on Merger of DA. With the elections fast reaching this tortise walk will only delay the wage talks. Its high time that UFBU and its members take serious view and stern steps to clinch the settlement for its eager members. The next round of wage negotiation is fixed on 11th October 2013.

New CMD of Corporation Bank

Mr. S.R.Bansal assumed charges as CMD of Corporation Bank on 5th October 2013. Previously he was ED at Punjab National Bank

IDBI Bank 10th Foundation Day

Today IDBI Bank is celebrating its 10th Foundation Day. Previously it was an financing body for development of Industries known as Industrial Development Bank of India. Converted to general bank and changed name to IDBI Bank. As the government holds 51% shares of the bank its public sector bank. But it is working as private sector bank only.Fruitful 9 years of dedicated service to the nation has been rendered. We congratulate the bank on its 10th foundation day.

Result Season to start

Result season for the banking sector for half year ending Sept. 2013 will kick off with HDFC Bank and IndusInd Bank declaring their results on 15th October 2013.

Federal Bank - Stock Split

Federal Bank is splitting its shares from face value Rs.10 to Rs.2. The same will be effective from 17.10.2013.

Quarter end result season will start soon

The Half yearly works of the Banks is over by now. Within next few days they will start flashing their business figures and within next 15 days their results season will start. Keeping in view the macro economic data the results will be below the expecations and the NPA is expected to rise. Let us hope that our banks will be in good health so that our money will be safe.

Bank of Baroda Revises interest on retail deposits wef Ist October 2013

Here is the rate of interest applicable on retail deposits at Bank of Baroda with effect from 1st October 2013. (deposits of upto Rs.1 crore)

7 to 45 days 4.5%
46 days to 90 days 6.5%
91 days to 180 days 7.3%
181 days to 270 days 7.75%
271 days to less than 1 year 8.25%
1 year and above till 10 years 9.05%

UCO Bank Festive Offer on Housing and Vehicle loans

UCO Bank is offering 50% concession in processing charges on housing loan during its Grand Festive Offer. The offer period has already started on 20/09/2012. The bank is offering  10.50% on Housing loans. The vehicle loans are offered at 10.75%. Processing charges are fully waived for vehicle loans. If customer avails both housing and vehicle loans during offer period then processing charge is fully waived for both loans.

SBI bumper offer on Savings Bank accounts

State Bank of India has given bumper offer on festive season to those who intend to open Savings Bank account. The main offers are

1. Personal Accident Insurance of Rs.4 lakh for just Rs.100 per year.
2. No minimum Balance.

The second point is not important as most of banks are offering the same. But Rs.4 lakh insurance at a permium of Rs.100 per year is worth considering.

other features of Savings Accounts offered are;

1. Multi-city cheques
2. Net Banking and Mobile Banking
3. Free transfer of funds between accounts in SBI Branches
4. Auto-sweep facility
5. ATM cum Debit card
6. No Charges for pass book
7. Free withdrawal at over 27,000 State Bank Group ATMs

Mr. Pratip Chaudhari - Chairman - State Bank of India

                                       Mr. Pratip Chaudhuri , Chairman , State Bank of India

Banks paying more than 4% on Savings Bank Deposits

The Reserve Bank of India (RBI) has deregulated the interest on Savings Bank (SB) Deposits. Before that RBI used to regulate the rate of interest that is to be paid to SB deposits. Before deregulation the rate of interest mandated by RBI was 4%. The deregulaltion came into effect from 25the October 2011.

If you are aware the RBI also changed the way the banker's used to pay interest on SB deposits wef 1st April 2010. Before that date the bankers' used to pay interest on lowest balance in SB account from 10th to last day of month. From 1st April 2010 the bankers' are paying interest on daily closing balance.

None of Public Sector Banks has changed the rate on SB deposits after deregulation. In private sector banks also except few banks no other banks have changed the rate. The list of banks offering more than 4% on SB deposits is given below;

Interest payable to those customers who maintain balance of upto Rs. 1 lakh.

Indus Ind Bank 5.5%

Yes Bank 6%

Kotak Mahindra Bank 5.5%

Karnataka Bank 5%

Interest payable to those customers who maintain balance of above Rs. 1 lakh

Yes Bank 7%

Indus Ind Bank 6%

Kotak Mahindra Bank 6%

Saraswat Co-op Bank 6%

Kotak Bank is actively promoting the increase through TV commercials and Yes Bank is doing so in News Paper Ads.

Its interesting to see that HDFC Bank, ICICI Bank and Axis Bank has not increased the rates.

　

　

HDFC Bank - Investment opinion

HDFC Bank (Rs 621.9): This bank appears to be operating in another planet. Even as most bank stocks are trading well below their 2008 peaks, this stock trades 72 per cent above this peak. Both medium and short-term trends are up in the stock.

Investors should therefore ride this uptrend with suitable stop-loss to protect their profits. Stop-loss for short-term investors can be at Rs 580 while medium-term investors can hold with deep stop-loss at Rs 520.

 

The third leg of the uptrend from the 2009 low of Rs 156 is currently in motion. This leg has the targets of Rs 615 and then Rs 748.

 

If the stock manages a clean break beyond Rs 650, it can move on to Rs 748 over the long-term.

Long-term investors can stay invested as long as the stock trades above Rs 450.

 

Corrections to this level can also be construed as an opportunity to accumulate this stock by long-term investors.

 

(As appeared in Business Line dtd 07.10.2012)

HDFC Bank increases credit card payment fees through Cash/ATM

If you have HDFC Bank credit card and usually make payment of your card dues by cash at HDFC Bank outlet or ATM then from next time be ready to pay double the charges you are paying now, as HDFC Bank will charge Rs.100 towards each credit card payment received in cash or ATM with effect from November 1, 2012.  The bank at present has credit card customer base of 56 lakh or 32% of overall credit card market size in the country.

New ED for Bank of Baroda

Mr. Ranjan Dhawan has been appointed as  an Executive Director of Bank of Baroda.

Mr. Dhawan, who is now Chief General Manager at Punjab National Bank, is expected to assume charge of his new role on November 1.

 

New Executive Director for Oriental Bank of Commerce

Oriental Bank of Commerce has a new executive director in Bhupinder Nayyar. Nayyar, who was General Manager at Bank of India, assumed charge on Friday. He comes in the place of S.C.Sinha, who superannuated on July 31.

New Executive Director of Andhra Bank

 

Satish Kumar Kalra has been elevated as Executive Director of Andhra Bank from his present assignment as General Manager, Treasury Operations of Allhabad Bank. Mr. Kalra joined the banking industry in 1981 as Probationary Officer in Allahabad Bank and worked in various capacities. 

SBT campaign for MSMEs

State Bank of Travancore (SBT) has launched a special campaign for micro, small and medium enterprises (MSME) from October 1 to January 31, 2013. Those taking loans during the period will get concessions in interest rate and processing charges. MSME meets and entrepreneurial development programmes will be convened at various centres during the period. The bank is targeting a growth of Rs 4,000 Cr under the MSME segment during the year 2012-13.

Federal Bank to decide rate cut

Private sector lender Federal Bank will decide on a cut in interest rates on retail loans next week. The move will be decided after meeting of their ALCO committee. The Kochi-based bank has announced that it will offer home loans at its base rate of 10.45% from October 3 to October 18 as part of the 67th anniversary celebrations. Earlier, the minimum rate of interest on home loans was 10.78%.

New CMD of Allahabad Bank

Shubhalakshmi Panse has taken charge as the Chairperson and Managing Director of Allahabad Bank effective October 1. She earlier served as the Executive Director of Vijaya Bank. Panse was responsible for the administration and business development of Vijaya Bank for a period of two years. Panse, who joined Bank of Maharashtra as probationary officer, has worked in almost all key segments of banking including recovery, credit, fund management, law, accounts, IT and business process re-engineering.

Recruitment - Federal Bank

Federal Bank has invited applications for the post of Probationary Officers. But the applicant must successfully complete one year Post Graduate Diploma in Banking and Finance at Federal Manipal School of Banking. The minimum qualification for joining is Graduation with minimum 60% marks. The maximum age is 26 years.

You have to apply online for joining the course.

Last date for application is 15.10.2012

To apply for the job click here

ICAI urges RBI to appoint Auditors for Private Banks

Institute of Chartered Accountants of India (ICAI) has urged that RBI should appoint Auditors for Private Banks. Now the management of Bank is appointing the Auditors.

Government to sell its stake in Axis Bank

The government is on the way to start selling the stake in Axis Bank. The government holds 23.6% of shares of Axis Bank. The shares are held now by SPV (special purpose vehicle) which inherited this from UTI mutual fund.

Quarterly Results season starts

With the closure of September quarter banks have already announced dates for declaration of quarterly results;

IndusInd Bank on October 10

HDFC Bank on October 12

Karnataka Bank on October 17

Banking Stocks which are trading at 52 week high on 1st October 2012

The following banking stocks are trading at 52 week high

ING Vysya Bank 415.50

IndusInd Bank 364.90

Kotak Mahindra Bank 651.80

Yes Bank 395.00

Dena Bank 109.50

Rakesh Jhunjhunwala's views on Banking Sector

Excerpts from conversation with Punita Kumar Sinha on ET Now;

Q: In the banking sector, which is also indirectly like as domestic consumption story, I notice you have only one bank, Karur Vysya Bank.

A: No, I also have Federal Bank. But in Karur Vysya Bank, maybe, I think , I had invested Rs.50 lakh in 1993, now I think it is Rs.200 crore. I see now it is growing at 18-20%. It has a good management, is rewarding shareholders, has a good yield. I think Rs.400 is the price and Rs.16 is the dividend. So four rupees, a four percent yield. I don't trust the public sector banks. And the second thing is I don't want to invest less than Rs.50-Rs.100 crore in a scrip. firstlly, I don't have that kind of money to invest. Even if I have the money, the liquidity is not there. So, it is difficult to build positions.

Q: So, you have liquidity constraints and you don't like PSUs. But Federal Bank you like as well.

A: Yes. I have substantial investments. Banking will be 7-8% of my portolio.

Honourable Finance Ministers views on RBI rate cut and Bank consolidation

Excerpts from interview with Rohini Singh and Hema Ramakrishnan (ET)

Q: Do you think the RBI should start cutting rates now?

A: That is a call that the Governor has to take. In our view, government and monetary authority must point in the same direction and walk in the same direction. As we take steps on the fiscal side, the RBI should take steps on the monetary side.

Q: Are you in favour of bank consolidation ?

A: The main task is to recapitalise our banks, make them more technology driven, push them into aggressive financial inclusion and make them lend more to the bottom of the pyramid. We would need large-sized banks and, if that can be achieved by consolidation, so be it. The policy is to grant more licences and if required amendments to the Banking Regulation Act.

New IBA Chairman

Mr. K.R.Kamath, CMD of Punjab National Bank has been choosen as Chairman of Indian Bank's Association (IBA) wef 1st October 2012.

Recruitment - State Bank of India - Specialist Cadre

State Bank of India calls for applications from Indian Citizens for SBI Group under Specialist Cadre.

Important Dates:

On-line registration of Application form : 08.10.2012

Last date for on-line application :28.10.2012

Date of Written Test : 02.12.2012

Posts:

Post-Economist, Scale : Assistant General Manager (Scale V), For: SBBJ, Number of Posts : 1,
Maximum Age : 40

Post - Economist, Scale : Manager (Scale III), For : SBI, Number of Posts: 2, Maximum Age :35

Post - Chartered Accountant, Scale : Manager (Scale IV), For : SBBJ, Number of Post : 1,
Maximum age : 35

Post - Chartered Accountant, Scale : Manager (Scale III), For : SBM and SBBJ, Number of Post : 2, Maximum Age: 30

Post - Computer-Hardware, Scale : Manager (Scale III), For : SBH, Number of Post : 2, Maximum Age : 40

Post - Computer-Hardware, Scale : Manager (Scale II), For : SBBJ, SBH and SBP, Number of posts : 16, Maximum age: 35

Post - Computer-Hardwar, Scale : Asst. Manager (Scale I), For : SBP, Number of Posts: 9, Maximum age : 30

Post- Computer-Networking, Scale: Manager (Scale III) , For : SBH, Number of Post: 1, Maximum age : 40

Post - Computer-Networking, Scale: Dy. Manager (Scale II), For : SBH, Number of post : 3, Maximum age : 35

Post - Computer-Systems, Scale : Dy. Manager (Scale II), For : SBBJ,SBP,SBT, Number of Post : 25, Maximum age : 30

Post - Computer-Systemes, Scale : Assistant Manager (Scale I), For : SBBJ, SBH, SBP, SBM, SBT
Number of Post : 232, Maximum age : 30

Post - Computer and Communications, Scale : Asst. Manager (Scale I), For : SBI, Number of post : 5, Maximum age : 30

Post - Civil Engineering, Scale : Dy. Manager (Scale II), For : SBBJ, SBH,SBM,SBT, Number of post: 13, Maximum Age: 35

Post - Civil Engineering, Scale : Asst. manager (Scale I), For : SBI, SBM, SBP, SBT, Number of post : 32, Maximum age : 30

Post - Electrical Engineering, Scale : Dy. Manager (Scale II), For : SBH, SBM, Number of post : 4
Maximum Age : 33

Post- Electrical Engineering, Scale : Asst. Manager (Scale I), For : SBI, SBP, SBT , Number of post : 21, Maximum age : 30

Post - Official Language, Scale : Dy. Manager (Scale II), For : SBM, SBP, Number of post : 8,
Maximum age : 30

Post : Official Language, Scale : Manager (Scale III), For : SBBJ, Number of post : 2, Maximum Age : 35

Post : Official Language, Scale : Asst. Manager (Scale I), For : SBT, Number of post : 1, Maximum age : 30

Post - Law, Scale : Manager (Scale III), For: SBI, Number of post : 42, Maximum age : 35

Post - Law, Scale : Dy. Manager (Scale II), For : SBH, SBP, Number of post : 4, Maximum age : 35

Post - Law, Scale : Asst. Manager (Scale I), For : SBI, SBH, SBT, Number of post : 78, Maximum age : 30

Post - Security, Scale : Dy. Manager (Scale II), For : SBH, SBT, Number of post : 10, Maximum age : 35

Post - Fire & Safety, Scale : Dy. Manager (Scale II), For : SBBJ, Number of post : 1, Maximum age : 35

For more details and to apply online click here

　

Narayana Murthry to retire from HSBC Bank

N.R.Narayana Murthy, Co-founder of IT firm Infosys and the only Indian on board of UK Banking giant HSBC Holdings Plc will retire as its director on 31st December 2012. He had joined the board of the bank in 2008.

HDFC Bank shakes hand with PUNGRAIN

HDFC Bank has joined hands with Punjab Grains Procurement Corporation Ltd (PUNGRAIN) to facilitate payment to its commission agents spread over 350 mandis in Punjab.  For this project, HDFC Bank will install its Point of Sales (POS) machines in over 350 mandis to facilitate the payment to commission agents dealing in agriculture products. It said this initiative will facilitate faster payments to them and in turn will benefit farmers.

Crop loan interest subvention for 2012-13

The Honourable Finance Minister has announced in budget for 2012-13 that Interest subvention for short term crop loans of 2% will be continued this year and additional 3% subvention will be made available to prompt repayers of loan. In pursuance of this announcement, Government of India will provide interest subvention of 2 % p.a. to Public Sector Banks in respect of short-term production credit up to Rs.3 lakh during the year 2012-13. This amount of subvention will be calculated on the crop loan amount from the date of its disbursement/drawal up to the datae of acutal repaymnet of the crop loan by farmer or up to the due date of the loan fixed by the bank for repayment of loan, whichever is earlier, subject to a maximum period of one year. This subvention will be available to Public Sector Banks on the condition that they make available short-term production credit up to Rs. 3 lakh at ground level at 7% p.a.

Besides, Government of India will also provide additional interest subvention of 3% p.a. to Public Sector Banks in respect of those prompt paying farmers who repay their short-term production credit within one year of disbursement/drawal of such loans. This subvention will be available to such farmers on a maximum amount of Rs.3 lakh availed of by them during the year, from the date of disbursement/drawal of the crop loan up to the actual date of repayment by farmers or up to the due date fixed by the bank for repayment of crop loan, whichever is earlier, subject to a maximum period of one year from the date of disbursement. This additional subvention will be available to Public Sector Banks on the condition that the effective rate of interest on short-term production credit up to Rs. 3 lakh for such farmers will now be 4 % p.a. This benefit would not accrue to those farmers who repay after one year of availing such loans.

In respect of 2 % interest subvention, banks are required to submit their claims on a half-yearly basis as at September 30, 2012 and March 31, 2013, of which, the latter needs to be accompanied by a Statutory Auditor’s certificate certifying the claims for subvention for the entire year ended March 31, 2013 as true and correct.

In respect of the 3% additional subvention, banks may submit their one-time consolidated claims pertaining to the disbursements made during the entire year 2012-13 latest by April 30, 2014, duly audited by Statutory Auditors certifying the correctness.

In case of RRBs and co-operatives, a separate circular will be issued by NABARD.

ATM will not suck your cash anymore

Many a times you may have noticed that when using ATM for cash withdrawal, when ATM dispenses cash if you do not take it out within 10-15 seconds it goes back to machine. This is a safety measure adopted by the banks so that if anyone forgets to take the cash it should not go to wrong hands.

But this has created many problems for the banks as well as customers. Customers are in dilema as they will think that the money is already debited to account but cash not received, then from where to claim it. (ATM normally automatically redeposits the amount to the account of customer but requires some time) Some times as the money is already deducted they may not have sufficient balance in account to make next withdrawal. The banks are flooded with request for claims for the amount.

The RBI has also noticed some fraud. The modus operandi is as follows; The customer withdraws cash. When cash has come out take some cash only. Then after sometime the remaining cash goes in. As the machine does not have mechanism to recount the cash it sucked, it reimburses full amount to the account of customer.

As the operation and usage of the ATM has been stabilized. The RBI has asked the banks to stop the mechanism of Cash Sucking by ATMs if not taken within time. Now the customers has to be alert not to forget to take cash or else it may hand in wrong hands.

Recruitment - Punjab National Bank

Punjab National Bank (PNB) invites online applications for following Clerical post from Indian citizens who have taken the Common Written Examination (CWE) for recruitment in Clerical cadre conducted by IBPS in Nov-Dec 2011:

Single Window Operator A (Clerk) : 2985 posts in various states

(UR-1611 ,SC-695, ST-166, OBC-513) (PH-90, Ex.SM-420),

Pay Scale : Rs.7200-19300/-,

Age : 20-25 years,, relaxation in age as per rules.

Application Fee : Rs.100/- (Rs.20/- for SC/ST/PC/EXSM candidates) to be deposited any Branch of PNB through a voucher challan which is available on PNB website.

How to Apply : Apply Online only at Punjab National Bank website from 26/09/2012 to 10/10/2012.

Kindly click link below for more details and to apply online:

Apply online here

Kingfisher and consortium bank's meeting tomorrow

The consortium of 17 banks that have funded debt-laden Kingfisher Airlines Ltd (KFA) will meet in Bangalore on Thursday. The meeting assumes significance, as this would be the first one after the Government revised foreign direct investment norms in aviation and allowed foreign carriers to pick up to 49% stake in domestic scheduled airlines. There are indications that Kingfisher promoter, Vijay Mallya, will make a presentation to the bankers’ on the turnaround strategy for the ailing private carrier. Banks are hoping that Mallya would come up with proposals that would lead to equity infusion into the airline.

Banks have total exposure of nearly Rs.7000 to the airlines and the SBI has exposure of nearly Rs.1500 crore. The loans have turned bad (NPA) during january itself.

The RBI has disallowed the banks to use Kingfisher brand name as security. Hence the exposure has turned unsecured and banks are required to make 25% provision on the same.

Earlier the banks have also expressed displeasure due to absence of Mr. Mallya during the consortium meeting although advance intimation was available.

Happy time expected for HDFC bank loan customers

HDFC Bank has informed that it is looking at possibility of rate cut on loans during the Asset Liability Management Committee (ALCO) meeting to be held by this week end. So The loan customers can expect some relief in EMI amount.

Barclays Bank plans to shut 3 Indian branches

The British Bank, Barclays which is having 9 branches in India plans to shut 3 offices situated in Rajamundry, Ahmednagar and Junagadh. The Bank will also reduce the workforce due to the closure of the branches. The bank has taken the decision to sharpen focus in India on corporate and investment banking and wealth management and to reduce over time their retail banking presence to a core network of branches serving the high net worth individuals segment. The foreign bank is not able to make a presence in already heated banking market.

Cosortium Banks allow Hotel Leela Debt Restructuring

The debt-laden hospitality major Hotel Leela venture Ltd has got a breather. The restructured repayment plan of the company has finally been accepted by the lenders. It has received a 24-month moratorium for the outstanding principal amount of Rs 3,000 Cr it borrowed from a consortium of 17 banks. It applied for corporate debt restructuring (CDR) in February 2012. At the September 12 CDR meeting held with the banks, Leelaventure was told to repay all its outstanding principal amount in eight years from January 2014.

Higher interest draws more SB deposits in Kotak Mahindra Bank

Deregulation of the savings bank interest rate has led to a sharp spike in the savings bank deposits of Kotak Mahindra Bank (KMB) in Tamil Nadu. The bank, which has 19 branches in the State, will open three more branches over the next six months. The bank said the high interest rates offered by the bank on SB deposits clicked with the customers since it matched the post-tax yield of term deposits of ‘short to medium tenure’. That the interest earned in the savings bank account up to Rs 10,000 per year was tax free also weighed in with the customers. KMB said that after the new liberalised interest regime for SB deposits was announced by the RBI in October last year, KMB has witnessed a surge in SB deposits in Tamil Nadu. The SB deposit amount has grown by 45%, from Rs 181 Cr to more than Rs 263 Cr in Tamil Nadu region. The bank had, at the all-India level, seen a huge spurt of 68% in the savings bank deposit over a one-year period ending June 30, 2012 — from Rs 3,307 Cr on June 30, 2011 to Rs 5540 Cr on June 30 this year.

Zoom Developers - Fraud Case - Rs.3000 crores

While the CVC is on the verge of recommending action against officials of 25 banks, which together provided Rs 2,650 crore to Zoom Developers, declared a non-performing account, very little is known about the people running the show at the Mumbai-based company.

Zoom Developers set up in 1991, it is the flagship of the Zoom Group. The company is managed by Vijay Choudhary and father-in-law B L Kejriwal. The company website describes Choudhary as group chief executive.

Zoom Developers' business interests span engineering and project management services, development of industrial and infrastructure projects, information technology, telecom and business process outsourcing.

The shareholding of the undated company website shows the company is controlled by five holding companies. Zoom Developers started as an engineering sub-contractor for MNCs and later, established itself as an independent project executer with expertise in project development. The company website claims Zoom has a presence in China, India, Middle East, Europe, North and South America.

A consortium of nearly 25 state owned banks has given Rs.2600 crore loans mostly in the form of bank guarantee to the firm. The loan had turned bad in 2009 itself. Banks say global financial turmoil of 2008 had adversely affected companys cash flows and projects, which is why 26 Indian banks have taken Zoom Developers nearly Rs 2600 crore of debt to the corporate restructuring cell. Its also alleged that promoters has flouted FEMA guidelines.

Majority of the public sector banks have classified the exposure it had in Zoom Developers as non-performing loans or substandard or bad loans in the first quarter of FY11.

Major exposures:
Punjab National Bank
Indian Bank
Central Bank of India
Union Bank of India
UCO Bank
United Bank of India
Dena Bank
Bank of Baroda
Federal Bank

The amount has bulged to Rs.3000 crore and the banks are trying hard to recover their dues. Recently United Bank of India, member of consortium took possession of 3.4 acre land belonging to guarantors Magnificient Constructions.

Various investigating agencies like CBI are also investigating the matter and Central Vigilance Commission is close to finalise disciplinary action against officials of 25 banks that provided loans worth Rs.2650 crore to developers.

Who draws highest pay in India Inc.

These are the highest pay takers in Indian listed companies during 2011-12

1. Mr. Naveen Jindal,Jindal Steel and Power, Rs.73.42 crore
2. Mr. Kalanithi Maran, Sun TV network, Rs.57.01 crore
3. Mrs. Kaveri Maran, Sun TV network, Rs.57.01 crore
4. Mr. Pawan Munjal, Hero Motocorp, Rs. 34.47 crore
5. Mr. BrijMohan Lal Munjal, Hero Motocorp, Rs.34.44 crore
6. Mr. P.R.R.Rahja, Madras Cements, Rs.29.34 crore
7. Mr. Shinzo Nakanishi, Maruti Suzuki, Rs.28.14 crore
8. Mr. B.G. Raghupati, BGR Energy, Rs.25.98 crore
9. Mr. Karl Peter Forster, Tata Motors, Rs.23.97 crore
10. Mr. Murali K.Divi, Divi's Lab, Rs.23.15 crore

Interest Subvention on housing loan upto Rs.15 lakhs

The Government of India is extending Interest Subvention of Rs.1% on below conditions;

1. The loan availed to be maximum Rs.15 lakhs.

2. The cost of project to be maximum Rs.25 lakhs.

3. The loan to be availed by Scheduled Commercial Banks, Regional Rural Banks or Housing Finance Companies.

The Government has made Budgetary allocation of Rs.400 crore for 2012-13 for implementing the scheme.

The National Housing Bank is the authority to implement the scheme.

The banks normally extend the benefit to housing loan customer within one month of release of loan and inturn claim the amount from National Housing Bank on monthly basis. The subvention amount will be credited to housing loan of borrower which will effect in reducing the principle amount of loan.

If you are planning to raise loan from bank, ensure that you get the benefit mentioned above.

White label ATMs

Till now the ATMs in our country are installed and managed by the Banks itself. Although there are over 90000 ATMs in our country, most are located at Tier I and II centres. There is need to install more and more ATMs in Tier III and Tier VI cities. In this direction Reserve Bank of India has formulated guidelines which allow non-banking companies to install and manage ATMs in our country. Such ATMs are called White Label ATMs. And the operators of such ATMs are called White Label ATM Operators (WLAO).

The RBI wants to allow non-banking companies who have Net Worth of at least Rs.100 crores to operate WLAs. Its Memorandum/Articles must allow it to provide such services. If any FDI is involved then necessary permissions from concerned to be held.
There are three schemes formualted by RBI for WLAOs;


Scheme-A

Install minimum 1000 ATMs in Ist year of operation
Install minimum 2 times ATMs installed in Ist year in 2nd year of operation
Install minimum 3 times ATMs installed in 2nd year in 3rd year of operation

The ratio of installation will be 3:1. For every 3 ATMs intalled in Tier 3 to 6 cities they can install 1 ATM at Tier 1 and 2 cities.

Scheme-B

Install minimum 5000 ATMs in each 3 years of operation

The ratio of installation will be 2:1. For every 2 ATMs installed in Tier 3 to 6 cities they can install 1 ATM in Tier 1 and 2 cities.

Scheme-C

Install minimum 25000 ATMs in 1st year of operation and another 25000 in next 2 years of operation.

The ratio of installation will be 1:1. For every 1 ATM installed in Tier 3 to 6 cities they can install 1 ATM in Tier 1 and 2 cities.

The WALO has to inter into agreement with sponsor bank. The WALO can enter agreement with more than one sponsor bank.

The WALO cannot charge anything from the users of ATMs.

The Cash has to be provided by sponsor bank.

The WALO can advertise in ATMs which are approved by Advertising Council of India and RBI.

The WALO is responsible for settlement of accounts/failed transactions etc.

Only cards issued by banks can be used at WALs.

Acceptance of deposits is not permitted at WALs.

WALO can offer value added services as per guidelines of RBI.

WALO can receive fee from card issuer bank for using its ATM resources.

With the start of this we expect tier 3 to 6 cities to have good number of ATMs and participate in growth of banking in India.

Comply with KYC formalities

Now a days you must be receiving calls/letters from your banks saying that you have to comply with KYC formalities as per RBI guidelines. What is KYC and what is its importance.

KYC stands for Know Your Customer. RBI or the Government wants the banks to know the customer whose account its having. Knowing stands for below points:

Name
Father's name
Present residential address
Permanent address
Date of birth
PAN number
Contact number
Email/website
Income Source
Present income
Family details
Loans if any etc

While filling your account opening form you must have noticed all these.

Banks normally take followind documents of each account holder;

Photo
ID proof (PAN Card, Election Card, Passport, Driving Licence etc.)
Address proof (Ration Card, Tel. bill, Ele. bill, Bank pass book etc.)
Introduction from existing account holder

Now with crores of money being routed through bank accounts, RBI/Govt. wants to get assurance that they are legitimate transactions and no money laundering/hawala/terrorists are involved in it.

Hence RBI has mandated all banks to update its customers KYC afresh by obtaining latest photo, ID proof and Address proof. As its applicable to all types of account holders and banks have lot of non operative accounts such updation is a herculean task for the banks. Hence banks are sending notices to all customers giving them certain time to submit the documents or else the accounts of customers will be freezed.

Hence kindly submit the KYC documents to your bankers early.

Rajiv Gandhi Equity Savings Scheme

Our honourable prime minister Mr. Manmohan Singh has put red carpet for attracting new investors to financial markets. The scheme is Rajiv Gandhi Equity Savings Scheme. For investment up to maximum of Rs.50000/- , the investors can get 50% tax rebate. This is one time sop for first time investor only. It is available to those with taxable income of upto Rs.10 lakh. But some riders are attached to it.

1. The investment must be in Top 100 shares of BSE or NSE.

2. The investment made in PSU companies can also get tax brake.

3. If the investment is made in Mutual Funds and ETFs then the scheme in which funds are invested must comply with above conditions.

4. The investments have lock-in period of 3 years.

5. But the investors can trade after one year but must maintain the level of investment and also keep points 1 to 3 in mind while reinvesting.

Supreme Court opines that Wrong legal advice is no crime

Banker's beware, take full legal lessons before granting loans on legal opinion given by your advocates as highest court of law in India, Supreme court has said giving wrong legal advice is not crime if there is no link between them and perpetrators of fraud or offence. And from this we may easily draw our opinion that its ultimately Branch Managers who have sanctioned loans are liable for the frauds etc even if there is no link between them and perpetrators of fraud. The utmost penalty that bank panel advocate may get is depanelment that too from that bank only.

But the court also said the advocate's opinion must be bonafide as all legal practioners owe an unremitting loyalty to the interests of a client and it is the lawyer's responsibility to act in a manner that would best advance the client's interest.