14 Dec 2002

UTI Bank to rope in strategic ally only by March '03
Mumbai: UTI Bank is expected to find a fresh strategic investor only by the end of March '03. This would pave the way for infusion of additional capital into the bank through the preferential route.

SBISA plans strike over job outsourcing in foreign dept
Kolkata: The State Bank of India Staff Association has threatened to go in for agitational programmes which may even boil down to a 24-hour strike over the issue of the outsourcing of a job in the bank's foreign department in Kolkata.

RBI not to cut repo rate as of now, says Dr Jalan
Mumbai: The Reserve Bank of India governor Dr Bimal Jalan on Friday said the apex bank has not been contemplating any cut in the 5.5 per cent repo rate as of now.

Derivative products to be mark-to-market on monthly basis
Mumbai: The Reserve Bank of India has asked all banks to mark-to-market the derivative products at least on a monthly basis according to internal methods of determining the marked to market value of the derivative products.

PSB reduces PLR by 0.5 per cent
New Delhi: Punjab & Sind Bank has decided to reduce prime lending rate by 0.5 per cent to 11.5 per cent along with that for housing and consumer loans from Saturday. PLR would be slashed from 12 per cent to 11.5 per cent, the bank said in a release.

Gujarat bodies' bonds downgraded
Mumbai: CARE has downgraded the ratings assigned to the outstanding bond issues of Sardar Sarovar Narmada Nigam Ltd (aggregate amount: Rs 4,327 crore); Gujarat Electricity Board (Rs 1,750 crore); and Gujarat Industrial Investment Corporation Ltd (Rs 149 Crore0 from CARE A (SO) (structured obligation) to CARE BBB+ (SO). CARE also downgraded the ratings of the outstanding bond issues of Gujarat Sate Road Transport Corporation (Rs 550 crore) to CARE BB (SO)

M&M Financial PTC
Mumbai: Mahindra & Mahindra Financial Services Ltd's Rs 76.16-crore pass-through certificates (PTCs), issued under its securitisation programme, have been assigned the `AAA' rating by Crisil.

Bank, corporate bonds soon in repo market
Mumbai: Binds of public sector banks and corporates are expected to be introduced in the repo market in two-three months.

Indian Bank takes possession of assets of 2 firms
Chennai: Indian Bank on Friday took possession of a large number of vacant plots in two suburbs of Chennai for the recovery of dues from two companies under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance 2002

Corp Bank's Lok Adalat
Mangalore: The Mangalore-based public sector Corporation Bank recently conducted an exclusive `Lok Adalat' at its corporate office here for the settlement of disputes relating to `non-performing assets'.

Corpn Bank, New India `satisfied' with MoU progress
New Delhi: New India Assurance and Corporation Bank have both `expressed satisfaction' on the progress achieved so far in `realising the various terms' of the memorandum of understanding signed between the two.

Dena Bank in pact with Nabard for co-financing
Mumbai: Dena Bank is the second bank to enter into a Memorandum of Understanding (MoU) with National Bank for Agriculture and Rural Development (Nabard) for co-financing.

13 Dec 2002

Big firm proposes to UTI Bank
New Delhi: A large corporate house is understood to have shown interest in making an investment in UTI Bank, which is currently negotiating with a string of investors for an equity placement.

Sidbi may hive off micro credit arm
Mumbai: Small Industries Development Bank of India has proposed to hive off its micro redit arm, Sidbi Foundation for Micro Credit, as a separate entity, according to P B Nimbalkar, chairman Sidbi.

ICICI Bank goes mobile with ATMs
Mumbai: In a first of its kind, ICICI Bank on Thursday launched 'ATM On Wheels'. The mobile ATM will initially be stationed at four specific locations at fixed hours in the western suburbs of Mumbai.

Corporation Bank gets RBI nod for insurance foray
Mangalore: Corpo-ration Bank is set to enter insurance business for which it received the approval of the RBI on Wednesday. Bank chairman and managing director K Cherian Varghese told mediapersons that the bank would soon market LIC products.

Exim Bank to boost trade with Mauritius
Mumbai: Exim Bank and the Board of Investment of Mauritius have joined hands to facilitate and enhance bilateral investment and trade relations between two countries.

Corporation Bank to host home loan fair
Kochi: In a bid to boost its presence in the home loan segment of Kerala significantly, Corporation Bank will be organising a Home Loan Fair in the city on December 20-21.

Loan scheme from Birla Home Finance
Mumbai: Birla Home Finance Ltd, part of the Rs 4,500-crore K.K. Birla group, has launched its `Easy Home Loan Deposit Scheme', linking deposits with loan.

UTI Bank opens ATM in Coimbatore
Coimbatore: The 9th ATM of UTI Bank was activated at Palladam near Coimbatore on Wednesday. According to a release, the bank is planning to double its ATM network across the country from the current 690 during the current fiscal.

Federal Bank plans own premises in Kozhikode
Kochi: The Aluva-based Federal Bank plans to construct its own multi-storied building in Mavoor Road, Kozhikode.

RBI asks lenders to take ownership rights of defaulting corporates
Hyderabad: The Reserve Bank of India (RBI) has advised banks and financial institutions, as a part of better management of non-performing assets (NPAs), to retain ownership rights over the errant corporate entities by way of getting control over the shareholdings of promoters.

Delhi HC rejects Mardia Chem plea to block lenders
New Delhi: The Delhi High Court has rejected a writ petition of Mardia Chemicals attempting to block lenders from taking over its assets. A two-judge Division Bench of the court also imposed a penalty of Rs 25,000 on the company.

12 Dec 2002

PNB looks at BoB's HR integration model for Nedungadi
New Delhi: Punjab National Bank (PNB), which has been asked by the Reserve Bank of India (RBI) to amalgamate Nedungadi Bank with itself, is exploring the option of adopting Bank of Baroda's HR integration model to absorb Nedungadi's employees.

Exim Bank to create $100-million corpus to boost trade with Eastern Europe
Mumbai: Export Import bank plans to create a corpus of $100 million for providing lines of credit on soft terms to Central and East Europe and the Commonwealth of Independent States to augment exports to these countries.

SBI cracks down on Lubrichem Industries
Mumbai: In its third seizure for recovering outstandings of Rs 8.22 crore, State Bank of India has taken over a chemical plant in Mumbai's outskirts under the securitisation law.

Australian bank seeks nod for NBFC
New Delhi: Australia-based South East Asia Bank has sought permission from the Foreign Investment Promotion Board (FIPB) to establish a wholly-owned non-banking finance company (NBFC) in India.

Vijaya Bank cuts home loan rates
Hyderabad: Vijaya Bank has slashed its interest rates on housing loans for both its short and long tenure varying from 100 basis points to 200 basis points and claims to offer the lowest interest rate.

Kerala Govt ties up with SBI for home loans to staff
Thiruvananthapuram: The State Government has entered into an arrangement with the State Bank of India (SBI) for making available home loans to Government employees. An official spokesman said that the Government has been talking to a number of banks and financial for striking up an agreement to this effect after it stopped advancing housing loans to the staff as part of the general belt-tightening exercise implemented since January.

ICICI Info to roll out insurance products
Mumbai: ICICI Infotech Ltd, an information technology company promoted by ICICI Bank, plans to roll out its insurance product for Oriental Insurance Company in April.

ING-Vysya structures $30-m interest corridor for pvt airline
Mumbai: The private sector ING-Vysya Bank has structured a $30 million interest rate corridor for the largest private sector airline company in the country. This is the second major deal being structured by the bank.

IFC lines up 10 cos for funding
New Delhi: International Finance Corporation (IFC), the private sector lending arm of the World Bank group, is in discussions with about 10 domestic companies for financing their projects in the country.

Securities lacklustre
Mumbai: BOND prices moved in a ten paise range in an otherwise lacklustre government securities market on Wednesday.

Call money: Second stage of prudential limit from Saturday
Mumbai: The second stage of the prudential limits on the exposure of commercial banks in call/notice money market will commence on December 14. This is intended to reduce the dependence of players in the inter-bank call money market.

Banks told to make NRE rupee deposits unattractive
Mumbai: The Reserve Bank of India is understood to have `informally' asked the public sector banks to cut interest rates on non-resident external (NRE) rupee deposits, to make it unattractive for NRI customers.

Vijaya Bank eyes northern peers
Bangalore: The Chairman of the Bank, M.S. Kapur, while confirming the intention of looking at acquisition of a bank from the Northern region, declined to disclose the banks eyed. Punjab & Sind Bank, Bank of Punjab and Bank of Rajasthan are candidates for a possible acquisition, according to banking circles.

Nedungadi merger: PNB won't take loss above Rs 35 cr
New Delhi: The board of directors of Punjab National Bank has decided that the bank would take no more than a loss of Rs 35 crore, arising out of the takeover Nedungadi Bank.

Plea on pension option
Kochi: The General Insurance Officers All India Association (GIOAIA) has urged the Government to allow employees in the public sector general insurance companies one more opportunity to opt for pension before the VRS scheme is implemented.

CII seminar on insurance
Kochi: Confederation of Indian Industry (CII), Kerala is organising a seminar on `Insurance: the Secure Morrow' on December 17.

Federal Bank launches mobile alert
Kochi: The Aluva-based Federal Bank has announced the launch of a comprehensive mobile alert services for all its bank customers.

Stanchart CEO to head OTC derivatives panel
Mumbai: The Reserve Bank of India (RBI) has set up a high profile working group on over-the-counter (OTC) derivatives. The Central Bank, in October's mid-term Monetary and Credit Review, has said it intended to set up a working group, which would review the guidelines for OTC rupee derivatives in the country and suggest further developments in this market.