Thursday, February 24, 2011

Kotak Mahindra announces major expansion plans

Kotak Mahindra Bank has recently announced its expansion plans. The bank plans to increase the branch count to 500 from 300 by March 2012.

The Executive Vice-Chairman and Managing Director of the bank Mr. Uday Kotak said “We aspire to be national, including wholesale banking. We also want to see how we can get bigger. Inorganic (route) is something that also interests us. That's something on our radar.”

The bank plans to target wide range of customers apart from the high-worth customers. The bank also plans to expand its network overseas and is in talks with local players in the countries in US and Europe.

Tuesday, February 22, 2011

Kotak Mahindra to raise branch network to 500

Kotak Mahindra Bank has planned major expansion plans for nest 12 months. The bank has set a target to raise the number of branches from 300 to 500 in nest 12 months.

The bank intends to target a wide range of customers apart from its high networth customers. The Vice Chairman and Managing Director of the bank Mr. Uday kotak said "It depends on how you define mass affluent. For us, we define mass affluent as anyone who has an annual household income of Rs 5 lakh compared to Rs 4.5 lakh when we started in 2003."

He also said that there are plans of collaborations with local banks in US and Europe in a bid to expand globally.

Friday, February 18, 2011

Once Indian Banks were deprived of foreign expansion

In the recent times the Indian Banks are constantly expanding their branch network in the foreign countries and are also enjoying very descent profits but the case was very different during the early days of the country, i.e after the independence.

During that time the Indian Banking system was bound by very strict rules and regulations imposed by the central bank that would not allow Indian Banks to expand in overseas market primarily because due to a sense of insecurity that if Indian Banks are allowed to open offices in foreign countries then the foreign bank might also request for the same. It is also known as the principle of ‘Reciprocity’.

During the sixth decade of the previous century leading Indian Banks like Punjab National Bank and Bank of India sought overseas access but The Reserve Bank of India declined the proposal at once because of the chances of the application of the principle of ‘reciprocity’. As at that time it was intolerable to let the foreign banks earn profits within the country.

Friday, February 11, 2011

IOB to raise branch count to 3,000 by March 2013

In a bid to expand the branch network, Indian Overseas Bank announced to take the total number of the branches of the bank to 3000 across the country by March 2013.

Recently the bank celebrated the Platinum jubilee year and on the occasion the bank launced 75 new branches and 75 new ATMS.

Currently the bank comprises of 2,020 branches and 1,000 ATMs across the country and the bank plans to take the number of both branches and ATMs in the country to 3,000 by March 2013.

In the ensuing years the bank plans to develop the branch network in the states that belongs to the central part of the country i.e Rajasthan, Madhya Pradesh, Chattisgarh, Jharkhand and Bihar. The Chairman and Managing Director of the bank Mr. M Narendra said “In these States our branch presence is somewhat on the lower side. We would like to have more presence in these States.”

Wednesday, February 9, 2011

RBI to tighten noose on banks regarding customer services

The Reserve Bank of India might soon revise the guidelines for the customer services provided by the banks. The bank is planning to keep a strict eye on the banks that do not provide proper customer services is also planning to impose strict penalties that includes monetary as well as procedural penalties on such banks.

A committee led by Mr. M Damodaram former Sebi chief said that the existing guidelines by RBI on customer services need to be amended. The panel said that such a move will strengthen the Banking Ombudsman.

The Banking Ombudsman Scheme was launched by the Reserve Bank of India to provide bank customers a platform where they can register complaints on the services provided by the banks. There are 15 offices of Banking Ombudsman across the country to facilitate the bank customers.

The panel has suggested the banks to use advanced technology in order to upgrade their customer service facilities.

Tuesday, February 8, 2011

Support line from Catholic Syrian Bank

Catholic Syrian Bank has come up with anew scheme to facilitate its customers. The bank has launched a support line that will include Doctor on call , organizing events, property transactions, payment of utility bills etc.

During the launch event free solar study lamps were also distributed to the financially weak students.

Friday, February 4, 2011

Islamic Banking System gets legal nod in Kerala

The Kerala High Court has given approval to the non-banking finance company based on the Islamic principles by Kerala State Industrial Development Corporation (KSIDC). Earlier the President of Janata Party Subramanian Swamy and others filed a petition against the company stating that it is an act to promote a particular religion.

However the High Court Bench dismissed the petition when (KSIDC) proposed to carry out operations according to Shariah-complaint manner encompassed with the law of the country.

The Director and Executive Manager of the company Mr Najeeb said “It is a very favorable development and the board of directors will meet to decide on the plan of action.”

He also said The whole idea of the concept is to make use of funds without interest, directly or indirectly, for infrastructure projects in Kerala and reward the investors through profits.”

A few months ago Prime Minister Mr Manmohan Singh said in Kuala Lumpur said that he would propose RBI to survey demand of Islamic banking in India but the Governor of RBI Mr D Subbarao was not in favor of setting up such a system in Kerala, he justified it by saying that such a system can not exist under the provisions of the current Banking Regulations Act.

Tuesday, February 1, 2011

Greater participation of private banks required for FIP: AIBOC

The All India Bank Officers' Confederation (AIBOC) asked the private sector and foreign banks to participate with more enthusiasm and to put more effort in the Financial Inclusion Plan. Such an effort will increase the efficiency of FIP.

General Secretary of AIBOC Mr G.D Nadaf said “Presently, the working hours of bank officers are not regulated. We demand that their duty hours should be specified. Our confederation is opposed to mergers and acquisition in the banking industry and we demand more number of branches of public sector banks and also a commensurate addition in manpower.”

AIBOC also advocated for up-gradation in the pension and the medical facilities of the pensioners, five day working in banking industry and fixed working hours for the bank officials.