News

BoB gets nod for full-fledged branch in Hong Kong (BL 29.08.06) Bank of Baroda has received licence from the Hong Kong Monetary Authority for conversion of its existing operations into full-fledged banking operations. As a branch, the new entity is permitted to accept retail deposits and grant loans to retail and small and medium enterprises segments, besides foreign currency term loans, syndicated loans, foreign currency convertible bonds and trade finance to corporates. Bank of Baroda now has a presence across 20 countries. The bank will roll out its Singapore operations through an offshore banking unit in Singapore in September 2006.

News

Karnataka Bank new ATM (BL 29.08.06) Karnataka Bank Ltd has opened an ATM at Bangalore City Civil Court. A bank release said that with this, the total number of the bank's own ATMs went up to 77.

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No takers yet for troubled Rupee Co-op Bank (ET 29.08.06) The troubled Rupee Co-operative Bank, which will complete five years under an administrator in February ’07, has not found any takers. The fate of the bank’’s customers hangs in the balance as the RBI has now made it clear that elections cannot be held till inquiries are completed on its former directors. The RBI missive has put the state government in a bind because a cooperative bank - whose board has been superseded - can be managed by an administrator for a maximum period of five years. The board of directors of Rupee Co-operative Bank was superseded in February ’02, after they were charged of financial irregularities.

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No takers yet for troubled Rupee Co-op Bank (ET 29.08.06) The troubled Rupee Co-operative Bank, which will complete five years under an administrator in February ’07, has not found any takers. The fate of the bank’’s customers hangs in the balance as the RBI has now made it clear that elections cannot be held till inquiries are completed on its former directors. The RBI missive has put the state government in a bind because a cooperative bank - whose board has been superseded - can be managed by an administrator for a maximum period of five years. The board of directors of Rupee Co-operative Bank was superseded in February ’02, after they were charged of financial irregularities.

News

Borrowed for 20 years? Pay for 38 (FE 29.08.06) Welcome back to the pocket-pinching era of high interest rates. You may not have realised it by now, but in the last 18 months, your home-loan rate has gone up 2 to 2.5%, depending upon your housing finance company. And if home loans statements are difficult to decipher, do take a closer look at your current statement, comparing it with the one 18 months ago. Chances are, you will shudder in horror. Your 15-year loan, at current EMI, has already got extended to 20 years. That is, if the interest rate is up only 2% from 7% to 9%. If the rate is up 2.5%, you will have to pay for 22 years and 6 months. If you took the loan at a little higher rate of 7.5% and it’s now 9.5%, your tenure is now 23 years. There’s worse news for those who have 20-year loans. If you borrowed at 7.5% for 20 years, your latest tenure at 9.5% is 43, yes, 43 years. Hypothetically, if you are okay paying the same EMI amount despite the rate hike, and your finance company does not mind risking the loan amount beyond your working life, you could pay that loan for perpetuity. Such a situation is called ‘negative amortisation’.

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Report on fair bank charges soon (FE 29.08.06) A Reserve Bank working group, set up to formulate reasonable bank charges, is likely to submit its report in next 10 days. "The report is nearing completion and is likely to be submitted in the next 10 days", said member secretary of the working group Kaza Sudhakar, Concerned over the unreasonable levy of service charges by banks, RBI constituted a five- member working group in May

News

Unclaimed bank deposit of scheduled commercial banks stood at 930 crores in 2005 as against 880 crores in 2004 and 742 crores in 2003. (F.E. 28.08.06)

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Employees of Lord Krishna Bank will observe September 12 as "protest day" to intensify their agitation against proposed merger of their bank with Centurion Bank of Punjab.

Rate of Interest on Deposits

State Bank of Mysore has revised interest on Deposits w.e.f 28.08.2006

1. 7 days to 14 days 4.25%
2. 15 days to 45 days 4.50%
3. 46 days to 90 days 5.00%
4. 91 days to 179 days 5.25%
5. 180 days to less than 1 year 6.25%
6. 1 year to less than 2 years 7.00%
7. 2 years to less than 3 years 7.00%
8. 3 years to less than 5 years 7.25%
9. 5 years and above 8.00%

Senior Citizens are offered 0.75% over the above rates

Do you know this !

ATM is abbreviation of Automated Teller Machine

Strike

The United Forum of Bank Unions (UFBU) has called for an all India bank strike on October 27. The strike is being called to press their demands for a new pension scheme, implementation of the campassionate appointment scheme, stopping of outsourcing and commencing recruitment to fill shortage of employees and officers, opposition to merger and acquisition of public sector banks and protest the dilution in the ceiling of voting rights in the Banking Regulation Act. (B.L. 26.08.06)

Recruitment

City Union Bank is recruiting clerical staff. Last date for sending application 02.09.2006. For more information visit www.cityunionbank.com.

News

The SBI board which met on 24.08.06 ratified the hike in PLR by 25 basis points from 10.75 per cent to 11 per cent. The hike will not be applicable to home loans up to Rs.15 lakh.(B.L.25.08.06)

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Punjab National Bank to raise Rs.1000 crore worth capital through upper and lower tier II bonds this fiscal to augment its capital base-Mr.s.c.Gupta, CMD, PNB.

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Foreign institutional investors can now purchase equity shares of UTI Bank Ltd, under Portfolio Investment Scheme, through primary markets and stock exchanges in India upto 49 per cent of its paid-up capital.(B.L.25.08.06)

Recruitment

Andhra Bank is recruiting 300 probationery officers for more information see Employment News dated 19.08.2006 to 26.08.2006.