Corporation Bank has got into a tie-up with Maruti Suzuki India to finance the latter’s vehicles on an all India basis.
Bank released a statement in which it stated the Maruti Suzuki India has nominated the bank as its preferred financier. It further stated the combination of the expertise and the reach brought to the table by the two institutions will offer the customer much easier and quicker credit facilities.
Wednesday, February 18, 2009
Tuesday, February 17, 2009
Banks file petition in Supreme Court on issue of debts
The Gujarat High Court had banned trading in debts, the three private banks- ICICI Bank, Kotak Mahindra Bank and Standard Chartered Bank- have challenged this verdict of the court and have filed a petition in the Supreme Court.
On February the apex court will be hearing the case on buying and selling debts by the banks. The banking industry, which has comprehended its debts by assigning a value, stated that the practice is being followed in the international market.
However on January 12 the High Court in its verdict said that assigning debts by banks was not permissible under the Banking Regulation Act, 1949. The High Court pointed out the accomplished contracts of assigning debts were illegal and the assignee banks are not entitled to be replace for original lenders (assignor bank) in proceedings related to sick companies pending before courts.
But banks have alleged that the High Court order has undone the practical efforts of the RBI to permit the banking sector to deal with the negative fallout of increasing non-performing assets by opening a regulated secondary market for NPAs under the guidelines issued by the apex bank in 2005. Banks pointed out that they had identified sick loans (NPAs) and assign them for understanding at a value and this form of recovery is commonly practiced in the international market. They argued that they have been permitted by the RBI to sell debts with underlying securities.
On February the apex court will be hearing the case on buying and selling debts by the banks. The banking industry, which has comprehended its debts by assigning a value, stated that the practice is being followed in the international market.
However on January 12 the High Court in its verdict said that assigning debts by banks was not permissible under the Banking Regulation Act, 1949. The High Court pointed out the accomplished contracts of assigning debts were illegal and the assignee banks are not entitled to be replace for original lenders (assignor bank) in proceedings related to sick companies pending before courts.
But banks have alleged that the High Court order has undone the practical efforts of the RBI to permit the banking sector to deal with the negative fallout of increasing non-performing assets by opening a regulated secondary market for NPAs under the guidelines issued by the apex bank in 2005. Banks pointed out that they had identified sick loans (NPAs) and assign them for understanding at a value and this form of recovery is commonly practiced in the international market. They argued that they have been permitted by the RBI to sell debts with underlying securities.
IOB in joint venture with BOB, Andhra Bank to enter Malaysia
Indian Overseas Bank (IOB), a Chennai-based public sector bank will be joining hands with Bank of Baroda and Andhra Bank to open its branch offices in Malyasia. It is expected the new joint venture will starts its operations by end of 2009.
S A Bhatt, chairman and managing director, IOB notified that bank is entering into joint venture as part of its overseas expansion plan and bank want to enter Malaysia. But according to the Malaysian government norms, a bank must have a minimum capital of $100 million. However for any individual bank this is quite a big amount. Therefore a decision of getting into a partnership with other banks was taken which are exploring to start its operations in Malaysia.
Bhatt pointed out as per new joint venture IOB will have 30 per cent stake while Bank of Baroda and Andhra Bank will have 40 and 30 per cent respectively. The bank is also looking forward to open branches in New Zealand; temporarily it is putting off its plan to start operations in Australia and US.
Bhatt informed during the third quarter operating profit from the overseas branches during the quarter ended December 31, 2008 bank gained Rs 53 crore as compared to Rs 34 crore, a year ago.
He pointed out deposits from overseas operations have increased to Rs 3,590 crore as compared to Rs 2,700 crore, while growth in advances have been to Rs 5,225 crore from Rs 3,517 crore, a year ago.
S A Bhatt, chairman and managing director, IOB notified that bank is entering into joint venture as part of its overseas expansion plan and bank want to enter Malaysia. But according to the Malaysian government norms, a bank must have a minimum capital of $100 million. However for any individual bank this is quite a big amount. Therefore a decision of getting into a partnership with other banks was taken which are exploring to start its operations in Malaysia.
Bhatt pointed out as per new joint venture IOB will have 30 per cent stake while Bank of Baroda and Andhra Bank will have 40 and 30 per cent respectively. The bank is also looking forward to open branches in New Zealand; temporarily it is putting off its plan to start operations in Australia and US.
Bhatt informed during the third quarter operating profit from the overseas branches during the quarter ended December 31, 2008 bank gained Rs 53 crore as compared to Rs 34 crore, a year ago.
He pointed out deposits from overseas operations have increased to Rs 3,590 crore as compared to Rs 2,700 crore, while growth in advances have been to Rs 5,225 crore from Rs 3,517 crore, a year ago.
Tuesday, February 10, 2009
SBI Vizag aim to achieve target in low-cost deposits
State Bank of
DSRK Saibaba, assistant general manager, SBI, informed media persons, “Though we have mobilized Rs 874 crore up to December, we are way behind our targets in issuing advances. Without giving more advances, collecting more deposits by paying higher interest rates is meaningless; hence we are putting more emphasis on low-cost and no-cost deposits.”
However last fiscal low-cost deposits amounted to 40 per cent of the total deposits. This year the bank is looking at 45 per cent.
RBI puts restrictions on Memon Co-op banking operations
Memon Co-operative Bank headquartered at Mumbai banking operations have been put under restriction by the Reserve Bank of India (RBI). There were some rumors about the closure of the bank due to this on Monday the bank faced a substantial withdrawal of money by its customers. Seeing this RBI has put some restrictions on premature withdrawal of fixed deposits while all the customers of the bank will be allowed to operate their savings and current accounts, this was notified by a senior RBI official to TOI.
The RBI official remarked, "The bank is quite liquid. But there were some under-statement of financial data in the balance sheet and its net worth is not fully reflected. So we have put in some operating directions''.
Over the weekend, there were rumors that the bank was facing problems thus on Monday when bank opened for business the customers queued up at its branches to withdraw money. While confirming this Memon Co-operative Bank chairman Imran Furniturewala told to TOI that there were long queues at the bank's branches. He informed that with the help from RBI, the problem of excessive withdrawal of funds was tackled effectively and all customers were paid off.
A newswire report quoted a bank official who stated that the RBI had imposed some restrictions on banking operations which has raised rumors of a closure and the depositors began withdrawing cash.
According to a top bank official the withdrawals were provoked because its major customer base is concentrated in the lower income group with average deposit size of about Rs 8,000. Approximately 45% of the bank's deposits were in current accounts and savings accounts. The bank is carrying out its operations through 19 branches spread over Maharashtra and
Official informed on Monday during the day about Rs 17 crore in cash was sent to its branches to meet the emergency liquidity requirements; it received about Rs 9 crore as inward clearance.
Andhra Bank launched two schemes in Orissa
Andhra Bank a public sector bank has launched two schemes in Orissa. The two schemes are corporate salary account scheme and another current account deposit plan. Bank sources said AB Privilege Corporate salary scheme will be extended to corporates, public sector undertakings, public sector enterprises and State and Central Government departments.
The enterprises where there are more than 25 employees and each employee pay is not less than 15,000 per month will be eligible for the zero balance accounts.
Bank has a branch network of 105 spanning 26 districts has also announced the sale of gold coins from February 2. The sale of gold coins will be done from nine centers at
Prasad further notified that plans are being processed to expand the branch and ATM network across the State. At present the bank is having 23 ATMs and around four extension counters.
Subscribe to:
Posts (Atom)