Central Bank of India has issued notification for the recruitment of 1000 Probationary Officers into the Bank. We are placing the below the link to download the advertisement.
RBI ASKS BANKS TO SHARE BORROWER'S ACCOUNT INFORMATION WHILE TRANSFERRING IT WITH ANOTHER BANK
The Reserve Bank has asked banks to put in place a board approved policy for take over of accounts from another banks.
In a notification issued to banks on Thursday, India's banking regulator has asked that Banks should put in place a Board approved policy with regard to take-over of accounts from another bank.
"The policy may include norms relating to the nature of the accounts that may be taken over, authority levels for sanction of takeover, reporting of takeover to higher authorities, monitoring mechanism of taken over accounts, credit audit of taken over accounts, examination of staff accountability especially in case of quick mortality of such cases after takeover, periodic review of taken over accounts at Board /Board Committee level, Top Management level, etc." said the RBI notification.
The rationale behind this directive to banks is that the banking regulator has been receiving complaints that critical information on the health of the borrowal accounts being taken over is not being shared by the bank which transfers the loans account or transferor bank with the transferee bank or the bank which takes over the account. This results "in inadequate due diligence at the time of taking over of accounts." the RBI said.
In addition, before taking over an account, the transferee bank should obtain necessary credit information from the transferor bank as per the format prescribed in our circular dated December 8, 2008 on "Lending under Consortium Arrangement/Multiple Banking Arrangements". This would enable the transferee bank to be fully aware of the irregularities, if any, existing in the borrower's account(s) with the transferor bank, the RBI noted. The transferor bank, on receipt of a request from the transferee bank, should share necessary credit information as per the prescribed format at the earliest.
STREAMLINE SENIOR HR RULES, GOVT TELLS PSBS
The Union finance ministry has told all government-owned banks to follow a standardised policy on personnel management at senior levels.
In a recent note to public sector bank chiefs, the ministry said the appraisal system, particularly at the level of general managers and deputy general managers, should be streamlined.
The ministry wants prospective executive directors (EDs) to have experience in all aspects of the banking system, such as retail, field, recovery, corporate lending and treasury.
“A candidate should have worked at least two years in zonal and regional offices before becoming general manager. Also, the ministry has recommended reducing the tenure of scale-1 officers to five years,” said a senior official at a mid-size public sector bank.
Currently, a scale-1 officer takes seven years to elevate to scale-2. The idea behind the move is to increase the tenure of officials at the level of EDs and chairman and managing directors (CMDs), as the ministry wants an individual to have at least eight years of service left when he becomes an ED or a CMD.
“Currently, in the entire public sector banking ecosystem, most officials reach 55-57 years of age by the time one becomes an ED or CMD. In most banks, a CMDs tenure is limited to two-three years, which is not ideal for business continuity and stability,” said an official in a large government bank.
The ministry has also specified that large public sector banks should have 27 general managers (GMs), so that each of them handles only one portfolio. “Generally, GMs have more than two portfolios. The number of Deputy GMs should be three times the number of GMs,” added a senior official at a large public sector bank.
To become a GM, a candidate must have worked as DGM for at least two years. Banks have approached the ministry to relax this criterion to 18 months, so that vacancies could be filled.
The ministry has also asked banks to implement the recommendations (those accepted by the government) of the Anil Khandelwal committee on personnel practices in public sector banks.
Bankers, however, fear the ‘template’ on HR policies as proposed, similar for all banks, would curb innovation and limit their independence to decide on HR issues.
In the recent past, a host of guidelines were issued by the finance ministry, from norms on loan syndication, audit of accounts and asking to review the pricing of loans, after the RBI reduced interest rates.
BANKS OFFERING HIGHER RATES ON SAVINGS DEPOSITS SEE INFLOWS JUMP
The momentum in inflows into savings bank deposits has sustained for the second quarter running for banks that raised interest rates. The inlows into smaller banks have spiked after the Reserve Bank of India deregulated the savings bank rate in October 2011. The savings bank deposit inflows for YES Bank, Kotak Mahindra Bank and IndusInd Bank together grew by 27 per cent in the three-month period ended March 2012.
The move by the RBI to deregulate rates prompted these banks (including Karnataka Bank, which is yet to declare results) with a small share of savings bank accounts to offer 5-7 per cent compared to the prevailing 4 per cent.
The savings bank deposits of the three banks grew by 60 cent during the six months ended March 2012. What is noteworthy is that this was a period of high term deposit rates too, and yet these banks managed higher inflows into savings bank accounts.
YES Bank saw its savings deposits treble in the six-month period to more than Rs 2,500 crore, and got the most inflows in absolute terms among the three banks. Incidentally, YES Bank offers the best savings bank rate and has aggressively expanded its branch network over the last one year.
However, the jump in savings bank deposits is on a small base and these as a proportion of total deposits continue to be low.
For YES Bank, savings bank deposits accounted for 5.1 per cent of its overall deposits as of March 2012, up from 1.9 per cent in September 2011.
For Kotak Mahindra Bank and IndusInd Bank the proportion of savings bank deposits is 13 per cent and 11 per cent, respectively, as of March 2012.
While these three banks together have around Rs 12,200 crore in their savings bank accounts, PNB and ICICI Bank have Rs 1.05-lakh crore and Rs 76,046-crore respectively.
CENTRAL BANK TO HIRE 1,000 PROBATIONARY OFFICERS
Central Bank of India is recruiting 1,000 probationary officers in the junior management grade (JMG-1) scale.
The bank has specified that candidates with a graduation degree in any discipline and a total weighted standard score of 160 in the common written examination conducted by the Institute of Banking Personnel Selection (IBPS) are eligible to apply.
The minimum age requirement is 20 years while the maximum is 30 years. Applications have been invited online and are open from May 11th. The last date for registeration of online applications is May 25, 2012.
BANKS' INCREMENTAL EQUITY REQUIREMENT ‘MANAGEABLE': ICRA
Banks' incremental equity requirement that has arisen out of the Basel III capital adequacy norms “appears manageable”, says credit rating agency, ICRA.
ICRA has estimated that banks would need between Rs 3.9-lakh crore and Rs 5-lakh crore over the next six years, of which, the ‘common equity' portion would be Rs 1.3-lakh crore to Rs 2-lakh crore.
Additional Tier-I would call for another Rs 1.9-lakh crore and Tier-II, Rs 1-lakh crore.
ICRA estimates that out of the total requirement of public sector banks, the Government's share would be Rs 30,000-80,000 crore “going by the Finance Ministry's current stance of maintaining 58 per cent shareholding in public sector banks.”
“The incremental equity requirement appears manageable considering past trends in capital mobilisation,” it says.
ICRA notes that between 2007-08 and 2011-12, banks raised Rs 1-lakh crore in equity. Half of this was in 2007-08, when the capital market was buoyant.
The other half was raised between 2008-09 and 2011-12. And 60 per cent of this came from the Government and the Life Insurance Corporation, ICRA observes.
‘LOSS ABSORPTION'
The rating agency notes the difficulty in raising additional Tier-I capital given the ‘loss absorption features' introduced by the RBI, which makes the instruments less attractive.
If banks are unable to raise the Rs 1 .9-lakh crore of additional Tier-I capital, the gap would have to be bridged with common equity. In this case, the Government's share could be “a staggering” Rs 1.2 lakh crore and Rs 1.7 lakh crore, ICRA says.
CENTRAL BANK OF INDIA ACCOMPLISHES TOTAL BUSINESS OF Rs. 346898 CRORE BUSINESS IN FY 2011-12
PERFORMANCE HIGHLIGHTS Q4 2011-12 AND FY 2011-12
Ø The Total Business of the Bank increased to Rs. 346898 crore as on March 31, 2012 from Rs 310763 crore as on March 31, 2011 registering a growth of 11.63% (Y-o-Y basis) which includes a Deposit growth of 9.38% and Advances growth of 14.70%.
Ø Total Deposits as on March 31, 2012 stood at Rs 196173 crore in comparison to Rs. 179356 crore as on March 31, 2011 showing a growth of 9.38 % over 2010-11.
Ø The share of CASA is marginally reduced to 33.27% v/s 35.17% in previous year.
Ø The Total Advances of the Bank increased from Rs 1,31,407 crore as of March 31, 2011 to Rs. 150725 crore registering a Y-o-Y growth of 14.70 %.
Ø The Credit growth on Direct Agriculture is 20.60%, MSME Sector 22.90% and Retail Sector 39.72%.
Ø The Credit Deposit Ratio has moved from 72.44% to 76.83%.
Ø The Total Income has registered a growth of 24.62%, from Rs. 16486 crore to Rs. 20545 crore on Y-o-Y basis.
Ø Total Interest Income registered a growth of 25.81% from Rs. 15221 crore to Rs. 19150 crore on Y-o-Y basis.
Ø Net Interest Income of the Bank declined marginally from Rs. 5326 crore to Rs. 5169 crore on Y-o-Y basis.
Ø Non Interest Income of the Bank registered a growth of 10.28% from Rs. 1265 crore to Rs. 1395 crore on Y-o-Y basis.
Ø The NIM for the quarter is 2.59%, as against 1.81% for the quarter of 2010-11. However, the NIM stood at 2.78% for the year 2011-12 v/s 3.31% for FY 2010-11.
Ø The cost to Income Ratio has improved from 60.68% to 57.11%.
Ø Operating Profit of the Bank was up by 8.65% and stood at Rs. 2815 crore as on March 31, 2012 as compared to Rs. 2591 crore as on March 31, 2011 on Y-o-Y basis.
Ø Bank recorded Net Profit of Rs. 533 crore for the year ended 2011-12 as compared to Rs.1252 crore for the year 2010-11.
Ø Gross NPA to Gross Advances increased from 1.82 % to 4.83 % as on March 31, 2012.
Ø Net NPA increased from 0.65% to as on 31.03.2011 to 3.09% in the backdrop of slippages, due to adverse market scenario and Bank implementing reporting of 100% of its Advances through system. Bank achieved 100% CBS in December 2011.
Ø Investments of the Bank registered a growth of 8.62% from Rs. 54847 crore to Rs. 59577 crore on Y-o-Y basis.
Ø The Bank got the capital of Rs. 1000 crore from Govt. of India and LIC in the last week of March 2012 and the CRAR for March 2012 is 12.40 % under Basel II and 11.96% under Basel I.
NEW INITIATIVES
Ø Being the Centenary Year, Bank created a strong visibility across the country and improved the Brand Recognition.
Ø Bank opened 283 branches during the year.
Ø ATM network increased from 1006 as on 31.3.2011 to 1682 as on 31.03.2012.
Ø Bank introduced Centsahayog, a hassle free loan product for MSME sectors.
Ø Bank introduced Cent Param Vayushakti for Airforce and Cent Param Jalshakti for Navy. These products provide defence personnel with host of most competitive bank products. Bank is in final stage of making such arrangement with Armed Forces also.
Ø Completion of 100% System driven NPA alongwith Data Cleansing.
Ø The Bank has exhibited strong marketing skills in promoting third party products like life and non-life Insurance, Mutual Funds, Government Business and registered a robust growth on Fee-based Income on these Income streams. The Bank has achievedd 100% BIMA Zones, 66 BIMA Regions and over 704 BIMA branches under Bancassurance scheme of L.I.C.
FINANCIAL INCLUSION
Ø Under Financial Inclusion plan all allotted 3725 villages having population more than 2000, have been covered well within the stipulated time.
Ø Out of 3725 villages covered, 3629 villages are covered through Business Correspondents and 96 villages are covered through Brick & Morter Branches.
Ø Bank has opened 50 Financial Literacy and Counceling Centres and 46 RUDSETIs as on 31.03.2012.
Ø No. of No Frill Accounts stood at 6521689 with Smart Cards activated 30.92 lacs as on 31.03.2012.
AWARDS /RECOGNITION
Bank won various Awards and accolades for its various HR initiatives and practices, Product Innovation on SME, Financial Inclusion and Brand creation.
Ø Bank has been ranked 4th Best Public Sector Bank in India under “Brand Equity – Top 100 Most Trusted Brands 2011” and ranked at 16th position in 2011 under “India’s Most Trusted Service Brands” category as per survey conducted by Economic Times.
Ø Bank has received the prestigious “Golden Peacock Award 2011” instituted by Institute of Directors (IODs) under innovative product/service category for retail product “Cent Sahyog”.
Ø Shri M V Tanksale, Chairman & Managing Director of Central Bank of India has been conferred the title of the PERSON OF THE YEAR by SKOCH Foundation for his contribution in the area of Financial Inclusion.
Ø Shri R K Dubey, Executive Director of our Bank has been conferred with the Best Banker Award 2012 by Shri K C Chakrabarty, Dy. Governor, Reserve Bank of India. The Award was presented during SME Banking Conclave 2012 on “Ensuring Growth of SMEs for Better Future”, organized by Small & Medium Business Development Chamber of India.
Ø The Banker’ has published on 1st February 2012 the list of “top 500 BANKING BRANDS 2012”. We are pleased to inform that our Bank’s brand has moved up by 61 i.e. from 390 in 2011 to 329 in 2012.
CBOA--AP CIRCULAR NO. 019 DATED 07.05.2012
CBOA-AP issued its circular No.
019 dated 07.05.2012 reproducing the circular issued by AICBOF on Promotion
Policy and the relaxations allowed by the Govt. of India. We are placing the
same here for our readers.
CIRCULAR NO.: GS: 2012: 019 Date: 07.05.2012
TO ALL OFFICERS PLEASE CIRCULATE
Dear Friends,
We reproduce hereunder the
Circular No. CIRCULAR/GS/2012/17 dated 05.05.2012 received from our Federation
for your information.
With best regards
Yours sincerely
Sd/-
(C.A. MALLIKARJUNA RAO)
GENERAL SECRETARY
……………………….............................................................................
“PROMOTION POLICY-RELAXATIONS ALLOWED BY THE GOVERNMENT OF INDIA
All of you are aware that AIBOC
had taken up the relaxation for the requirement of Rural /Semi urban postings,
APAR marks etc , which are the road block in the promotion process, with the
Government of India. The common guidelines for promotion issued by Government
of India, resulted in non availability of candidates in all scales and our Bank
Management also took up the issue with the Government.
We are pleased to inform that
some more relaxations are permitted by the Government due to our relentless
efforts and this should meet the hopes and aspirations of the officers. We
reproduce here below the revised guidelines, for your information.
The Zone of considerations for
promotion should be generally 3 times the number of anticipated vacancies.
However, incase these many officers are not available; the zone of
consideration shall be atleast two times the number of likely vacancies. For
this purpose, the Board of Directors of the Bank may further relax minimum
eligibility in length of service by up to six months over and above one year
already provided in the guidelines dated 14.03.2012. The relaxation beyond one
year in eligibility shall be granted only to the extent that officers at two
times the number of vacancies become eligible.
Vacant positions must be filled
subject to the suitability of officers within the zone of consideration as per
the Guidelines.
All officers who are eligible on
the cut-off date of experience requirement would be included in the zone of
consideration.
The officers against whom
disciplinary proceedings are in process would be considered in addition to the
requirement of zone of consideration as mentioned at (i) above and the
recommendations in respect of such officers shall be kept in a sealed cover.
The requirement of minimum 75%
marks in APAR in each of the year under consideration would be relaxed to the
extent of 60% marks APAR in each year for only those scales where passing of an
examination by IBPS is mandatory for promotion.
The condition of not granting the
benefit of relaxation in minimum experience at two successive levels of
promotions in Scale – III and above, as prescribed at Para 5 (iv) of the
guidelines dated 14.04.2012 stands withdrawn.
The provisions regarding
reservations/concessions, etc., in respect of promotion of SC/ST employees and
any other category of employees be followed as per the extant Guidelines in the
matter.”
Friends, we are happy that your
Confederation / Federation has once again proved that we are always at the
forefront in taking up the problems of the officers and in mitigating the hardships
faced by them on various issues from time to time.
With greetings,
Sd/-
(A.R. SAIFULLAH)
GENERAL SECRETARY
RBI ALLOWS NRIS TO TRANSFER FUNDS FROM NRO TO NRE ACCOUNT
The
Reserve Bank allowed non-resident Indians (NRIs) to transfer funds from
non-resident ordinary (NRO) account to Non-Resident External (NRE) account
subject to a ceiling of $1 million in a financial year.
"On a review, it has been decided that henceforth NRI... shall be eligible to transfer funds from NRO account to NRE account from within the overall ceiling of $1 million per financial year subject to payment of tax," RBI said in a notification.
The decision came after K J Udeshi committee recommendation to facilitate persons under Foreign Exchange Management Act (FEMA), 1999, it said.
As per the existing regulation, fund transfer from NRE account to NRO was allowed, but not the other way round.
"At present transfer of funds from NRO to NRE account is not permissible," the RBI notification said.
While, an NRE account is for depositing income from abroad, NRO account is mainly for putting Indian incomes.
In case of NRE account, only NRIs can become joint account holders but for NRO account both resident and non-resident can become joint account holders.
The decision was taken based on recommendations of K J Udeshi Committee which reviewed the facilities for persons under Foreign Exchange Management Act, 1999.
INDIAN BANKS' STRICTER BASEL III STANDARDS CREDIT POSITIVE: MOODY'S
Ratings
agency Moody's said stricter Basel III standards set for Indian
banks by RBI are credit positive as they focus on strengthening Tier-I capital.
Last week, RBI released final Basel III capitalisation standards for Indian banks that are more conservative than those outlined by the Bank for International Settlements (BIS), Moody's said in a study.
"These stricter standards are credit positive for Indian banks as they focus on strengthening Tier 1 capital and attach a higher value to core equity within Tier 1 capital," it said.
RBI's finalised standards specify that minimum Tier-I capital ratios are 1 percentage point higher than Basel III standards, and require that Tier 1 capital is of higher quality than the BIS mandates, it said.
In addition, it said, India's Basel III standards mandate a capital conservation buffer of 2.5 per cent of risk weighted assets built from core equity over a four-year period, and that banks achieve these stricter requirements nearly two years earlier than Basel III's schedule.
Last week, Moody's Indian subsidiary ICRA had said banks in the country will require between Rs 3.9-5 lakh crore as capital to comply with Basel III norms.
"Banks will need Rs 3.9-5 trillion capital over the next six years, out of which common equity requirements will be Rs 1.3-2 trillion; Rs 1.9 trillion for additional Tier-I; and Rs 1 trillion for Tier-II," it said.
This is achievable, "so long as banks can find investors for the riskier additional Tier-I capital," it said.
The Reserve Bank issued final guidelines for Basel III beginning January 1, 2013, and to be implemented by March 31, 2018.
The new norms ask banks to maintain a minimum 5.5 per cent in common equity by March 31, 2015 against 3.6 per cent now, apart from creating a capital conservation buffer consisting of common equity of 2.5 per cent by March 31, 2018.
It also hiked the minimum overall capital adequacy to 11.5 per cent by March 31, 2018 against 9 per cent now.
LATERAL TRANSFERS OF SENIOR EXECUTIVES IN SCALE IV, V & VI
Some
of the senior executives in Scale-IV, V and VI have been transferred by Central
Office on 05th May 2012. Their reporting date at their new places of
posting is on or before 14th May 2012. We are placing the list here
for our readers.
|
SL. NO.
|
NAME OF THE EXECUTIVE
|
PRESENT PLACE OF WORKING
|
TRANSFERRED TO
|
|
DY. GENERAL MANAGERS
|
|||
|
1.
|
Mr.
C. LAXMI PRASAD
|
ZO,
BHOPAL
|
RECOVERY
& LEGAL, C.O.
|
|
ASST. GENERAL MANAGERS
|
|||
|
1.
|
MR.
S.B. PRASAD
|
Z
O, PATNA
|
RO,
RANCHI
|
|
2.
|
MR.
B.D. JHA
|
DELHI
-SOUTH
|
DELHI
NORTH
|
|
3.
|
MR.
DEVI DAS AGARWAL
|
MCB,
FARIDABAD
|
DELHI
SOUTH
|
|
4.
|
MR.
M.P. NAYAK
|
GANGTOK
|
JANPATH,
DELHI
|
|
5.
|
MR.
S.S. PAI
|
CA
& ID, C.O.
|
RETAIL
BANKING, C.O.
|
|
6.
|
MR.
A.K.DHAWAN
|
CA
& ID,C.O.
|
GAD,
C.O.
|
|
7.
|
MR.
C.K.SHARMA
|
JANPATH,
DELHI
|
SEHANI
|
|
8.
|
MS.
SANTOSH BUDHIRAJA
|
SEHANI
|
PRESS
AREA,DELHI
|
|
9.
|
MR.
O.P. KHOKHER
|
PRESS
AREA, DELHI
|
ZO,
AGRA
|
|
10.
|
MR.
DEV KARAN
|
ZO,
MUZAFARPUR
|
ZO,
LUCKNOW
|
|
11.
|
MR.
H.R. KANOJIYA
|
ZO,
LUCKNOW
|
ZO,
MUZAFARPUR
|
|
12.
|
MR.
P.C.BAIRWA
|
PARK
STREET, KOLKATA
|
GANGTOK
|
|
13.
|
MR.
J.S. BHATTI
|
R
O (S),DELHI
|
NBO,DELHI
|
|
14.
|
MR.
HARDAYAL SHARMA
|
ARERA
HILLS, BHOPAL
|
SEC
17 B, CHANDIGARH
|
|
CHIEF MANAGERS
|
|||
|
1.
|
MR.
A.K.TOMAR
|
SEC
17 B, CHANDIGARH
|
GHAZIABAD
|
|
2.
|
MR.
S.P.SHARMA
|
RO,
COIMBATORE
|
ARERA
HILLS, BHOPAL
|
|
3.
|
MR.
BABUKUTTY ZACHARIA
|
RO,
HUBLI
|
RO,
COIMBATORE
|
|
4.
|
MR.
G VENUGOPAL REDDY
|
GOVERDHANPURA
CIRCLE, DELHI
|
TREASURY,
C.O.
|
|
5.
|
MR.
U.K.MAHESHWARI
|
TREASURY,
C.O.
|
H.R.D.,
C.O.
|
|
6.
|
MR.
A.K.BHALEKAR
|
SME
VERNA , PANJI
|
RO,
THANE
|
|
7.
|
MR.
M.C.SONI
|
ARM,
THANE
|
MMZO
|
|
8.
|
MR.
R.K. GUPTA
|
RWA,
NOIDA
|
DELHI
( S)
|
|
9.
|
MR.
R.K.KAUSHAL
|
BAWANA
|
SHAHDARA
|
|
10.
|
MR.
D.K. JAIN
|
OKHALA
|
KALKAJI
|
CBOA-
AP wishes all of them a successful tenure at their new places of functioning.
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