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
Oct 2, 2012
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
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.
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.
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.
Oct 1, 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
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
Sep 30, 2012
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.
Sep 29, 2012
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.
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.
Sep 26, 2012
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.
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
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.
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.
Sep 25, 2012
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.
Sep 24, 2012
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.
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
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
Sep 23, 2012
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.
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.
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.
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