Syndicate Bank - Give a missed call to know your bank balance

Syndicate Bank has introduced such a facility for its customers. Shri T.K. Srivastava, ED, said that the bank launched the facility of missed-call to its customers a month ago. After giving a missed call to a dedicated number, the customer will get his/her balance amount in the account as an SMS, he said. The customer will not be charged for the facility. To a query on the reason for starting this service, Srivastava said a majority of the calls to the call centres are made to know the balance amount. Sometimes the call is put on hold for a few minutes. This leads to waste of money and time of the customer. Considering this, the bank came up with the idea of introducing the missed-call service, he said adding that the customers will have to follow the procedures related to SMS banking.

IndusInd Bank Q3 Result

The first banking result of Q3 is out with IndusInd Bank reporting a 30% increase in 3^rd quarter net profit at Rs 347 Cr against Rs 267 Cr in the corresponding quarter of the previous year. Despite an increase in bad loans, profit rose on account of robust growth in loans and fee income. The private sector bank logged 26% growth in net interest income at Rs 730 Cr. Other income grew 35% to Rs 480 Cr (from Rs 356 Cr) on account of growth in fee income (up 30%) and forex income (58%). 

Corporation Bank signs pact with Geojit for integrated account

 

 

 

Corporation Bank has signed an MoU with Geojit BNP Paribas to offer bank’s customers with the facility to seamlessly open 3-in-1 integrated accounts. This comprises a bank account, a demat account and a trading account with Geojit BNP Paribas. The agreement was inked in keeping with the company’s policy of building reach through partnerships with reputed banks. The MoU was signed by B.N. Shenoy, General Manager, Corporation Bank, and Satish Menon, ED of Geojit BNP Paribas. With this agreement, Corporation Bank’s retail clients will now have access to an uninterrupted, hassle-free online trading platform for equities, derivatives, IPOs and mutual funds. According to Shenoy, the signing of the MoU is an important step to have a seamless integration of wealth management products on offer to its over 1.8 Cr customers. He said the coming together of a 108-year-old bank and a reputed stock broking firm such as Geojit BNP Paribas would enable its customers to enjoy money market as well as capital market experience with delight.

Development Credit Bank is DCB Bank Ltd

 The name of "Development Credit Bank Limited" has been changed to "DCB Bank Limited" in the Second Schedule to the Reserve Bank of India Act, 1934 w.e.f. October 24, 2013 vide Notification DBOD.PSBD No. 10131/16.01.132/2013-14 dated November 25, 2013 and published in the Gazette of India (Part III Section 4) dated December 28, 2013.

NRIs as joint holders in Resident Bank Accounts

Reserve Bank of India vide its publication dated 9th January 2014 has liberalised facility to add NRI (Non-Resident Indian) close relative to be joint holder on "either or suvivor basis" in respect of all types of Resident Bank accounts (like SB / FD etc) . The guidlines are as follows:

Reserve Bank has received representations that for operational convenience the Non-Resident Indians (NRIs), as defined in Regulation 2(vi) of FEMA Notification No.5 dated May 3, 2000, may be permitted to operate such accounts on "Either or Survivor" basis. Accordingly, on a review, it has been decided that AD banks may include an NRI close relative (relatives as defined in Section 6 of the Companies Act, 1956) in existing / new resident bank accounts as joint holder with the resident account holder on "Either or Survivor" basis subject to the following conditions:

a) Such account will be treated as resident bank account for all purposes and all regulations applicable to a resident bank account shall be applicable.

b) Cheques, instruments, remittances, cash, card or any other proceeds belonging to the NRI close relative shall not be eligible for credit to this account.

c) The NRI close relative shall operate such account only for and on behalf of the resident for domestic payment and not for creating any beneficial interest for himself.

d) Where the NRI close relative becomes a joint holder with more than one resident in such account, such NRI close relative should be the close relative of all the resident bank account holders.

 

CERSAI to expand the scope of cover

Banks and lending institutions may soon be required to file with a central registry all information on loans sanctioned for gold jewellery, plant and machinery, corporate brands and logos. A legal working group set up by CERSAI and International Finance Corporation, under the chairmanship of M. R. Umarji, Chief Legal Advisor, Indian Banks’ Association, has recommended that the scope of CERSAI be expanded to cover movable assets, tangibles and intangibles. CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India), a state-owned entity, currently operates a central registry with which information on all equitable mortgages is filed by lending institutions.

Shikar Dhawan to be Brand Ambassador for Canara Bank

Canara Bank has roped in Mr. Shikar Dhawan, Cricketer to be its Brand Ambassador. The tenure of the deal is one or two years and the size of deal is expected to be Rs.1.25 cr.

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.

DCB bank offers 10.97% p.a. on fixed deposits !!!!!!!!!!!!!!!!

Don't be misled by the advertisement the bank is giving in the newspaper and its website. There is small catch * T & C apply. Now a days banks are also offering misleading advertisements to get the attention of customers. See the above advertisement bank is actually paying 9.60% p.a. for the fixed deposits of less than one crore for the period 24 months to 36 months. Then wherecome 10.97% ??. The bank is using 'effective yield'  as the tool. The effective yield works out to be 10.97% for the above period. But the bank's should not use such misleading ads for attracting customers.

The DCB Bank is offering 9.6% for deposits of less than one crore for the period 24 months to 36 months and the senior citizens will get 0.5% above this rate for the same tenure.

IBA offer of 5% rise in payslip bill inadequate: Unions

While bank managements, under the aegis of the Indian Banks Association, are ready to bear the burden of a 5% increase in the payslip component of the total wage bill, trade unions in the banking sector say the increase in not adequate if one takes into account the rising inflation. Mohan V. Tanksale, Chief Executive, IBA, said the offer of 5% increase in the pay slip bill was not acceptable to the unions.

ATM usage charges may rise

Banks are likely to start charging customers for transacting more than five times a month at any bank ATM, including their own bank. Banks have mooted the charge on ATM transactions to pay for the increased security costs at ATMs, put in place by many State Governments, following the grievous attack on a woman inside an ATM kiosk in Bangalore last November. Currently, there is no cap on the number of transactions that a customer can undertake at his own banks ATM. However, the number of free transactions at other banks ATMs has been capped at five a month. Banks may also down the shutters of some ATMs at night, especially at locations where footfalls are low. Banks have requested the RBI to allow them to increase the ATM interchange fees (the fees paid by the card-issuing bank to the acquiring bank) to Rs 18 from Rs 15 a transaction now. Further, they want to pass on the costs arising from the interchange fee and switching fee to customers from the sixth transaction onwards.