Andhra Bank to hire over 1,000

Andhra Bank will recruit over 1,000 personnel in supervisory and clerical positions. This includes 100 marketing staff on contract, Mr R.S. Reddy, Chairman and Managing Director, Andhra Bank, told. Last year, the bank had recruited over 900 officers and clerks. “The hiring will be done at the earliest as we will be opening 110 new branches before June this year. We are also lining up some important product launches. For all, manpower is vital,” Mr Reddy said. The bank, which has crossed the Rs 1-lakh crore business mark last week, six months ahead of the target, aims to cross Rs 1.50-lakh crore business by September 2010. The credit offtake is healthy and Rs 23,000 crore has been sanctioned to the corporate sector last year. “Out of this, Rs 10,000 crore is yet to be disbursed. The infrastructure projects are doing well while the real estate is dull,” he said. While the yield on advances for the bank is over 11 per cent, the cost of deposits is lower than 7 per cent with over three per cent interest margins. To achieve greater operational efficiency, the organisational structure of the bank has been revamped. Five new zones have been created in addition to the existing 17 zones, he said.

Cautious banks want FD to issue Credit Cards

Stung by rising non-performing assets (15 per cent in some cases), several banks have now started issuing cards linked to fixed deposits (FDs). ICICI Bank, the biggest credit card issuer, has made it conditional for some of the credit card applicants, who do not meet the bank’s eligibility criteria, to open FDs under a scheme called Fixed Deposit Instant Credit Card. Axis Bank has also launched such a scheme Other banks said this product was a part of their offering, but they were not pushing it aggressively. In this scheme, banks ask applicants to open an FD account with an auto-renewal facility. The minimum amount is Rs 20,000 and the maximum Rs 3 lakh. The credit limit on the card is pegged at 85 per cent of the FD amount. If the cardholder fails to pay the outstanding amount on the credit card within 90 days from the date of the statement, the bank has the right to liquidate the FD and set off the credit card charges against it.

IOB eyes Rs 10,000 cr biz from Pune with Suvarna Bank in fold

The Indian Overseas Bank is targeting a business of Rs 10,000 crore from Pune alone during the current fiscal with the acquisition of the assets and liabilities of the Pune-based Shree Suvarna Sahakari Bank Ltd (SSSB). All 12 branches of the SSSB will begin operating as IOB branches with effect from April 16. A majority of the existing staff of 340 have opted to continue to work and will be employed as fresh recruits, with no seniority, Mr S.A. Bhat, Chairman and Managing Director, IOB, has said. However, none of the charge-sheeted employees will be absorbed, he added. “The Reserve Bank of India has not given permission to take over Suvarna Bank’s branches, so 10 branches in Pune and two in Mumbai will be among the 93 branch licences given to IOB during 2008-09,” Mr Bhat said. The IOB programme to achieve 100 per cent core banking by April-end will be extended to these as well. IOB’s existing 10 branches in the city have a customer base of 40,000 and did business of Rs 3,000 crore during the last fiscal. Suvarna Bank has a deposit base of Rs 700 crore, advances of Rs 400 crore and 3 lakh customers. According to the current assessment, SSSB has gross NPAs of Rs 320 crore. With provision of Rs 240 crore, the net NPAs stand at Rs 70-80 crore

PNB’s second branch in Hong Kong

Punjab National Bank (PNB) has opened its second branch in Hong Kong. The new branch is in the Kowloon area and will focus on retail banking operations.The formal inaugural function was presided over by the PNB Chairman and Managing Director, Dr K.C. Chakrabarty, and the Consul General of India, Mr L.D. Ralte. PNB had opened its first branch in Hong Kong in December 2007. This branch, located in the main Hong Kong island, is focusing on wholesale banking. The business of this branch crossed $1 billion in the first year of its operations itself. PNB has also started the process to upgrade its Shanghai representative office into a full-fledged commercial banking branch.