PSBs SMELL MONEY IN MF,INSURANCE SALE

As per the report appearing in The Economic Times, Public Sector Banks are sensing an opprotunity to pocket additional fee income from selling financial products, mainly Mutual Funds. In the last couple of months, PSU Banks such as State Bank of India, Canara Bank and Bank of Baroda have beefed up their sales teams to focus on selling investment products. These banks are diverting some of their direct recruitees towards selling investment products so as to garner higher income.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/PSBs-smell-money-in-MF-insurance-sale/articleshow/5241422.cms

BANKS SIT ON PILE OF SANCTIONED LOANS

As per the report appearing in The Economic Times, banks are sitting on pile of sanctioned loans although their actual disbursement in the last one and half months is far less, whether short term working capital or long term loans. This is because, borrowers with working capital requirements have found alternate sources of funding like Commercial Paper (C.P.) and therefore not using their sanctioned bank limits fully.
In case of terms loans, banks are facing a longer gestation for loan disbursal, since the bulk of their sanctioned loans are for long term infrastructure projects, unlike in the past. As a result, banks have ended up lending Rs.29000 crores in October this year, against Rs.100000 crores in the corresponding month of October 2008.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Banks-sitting-on-pile-of-sanctioned-loans/articleshow/5242896.cms

STATISTICAL TABLES RELATING TO BANKS IN INDIA 2008-09

Reserve Bank of India published statistical tables relating to banks in India 2008-09, which provides key information on Banks. It covers bank-wise and bank group-wise information on major items such as liabilities and assets, income and expenses, non-performing assets, financial ratios, spatial distribution of offices, number of employees and details of priority sector advances. It also provides bank group-wise monthly data on some of the major items such as aggregate deposits, liabilities to the banking system, assets with the banking system, investments, bank credit, and, sector-wise and industry-wise gross bank credit.
The analysis shows the profitability of all scheduled commercial banks at aggregate level improved in 2008-09. At bank group level, while return on assets of “SBI & its Associates” and “Nationalised Banks” improved, for “Other Scheduled Commercial Banks” and “Foreign Banks” it declined in 2008-09. Net Non-Performing Assets (NPA) ratio of “Nationalised Banks” at bank group level declined in 2008-09. There has been an increase in the number of employees in the banking sector during 2008-09 over 2007-08. At bank group level, number of employees of “SBI & its Associates” and “Other Scheduled Commercial Banks” increased, while number of employees of “Nationalised Banks” and “Foreign Banks” declined in 2008-09.
We are providing herewith the link for the statistical tables published by Reserve Bank of India.
Link: http://rbi.org.in/scripts/AnnualPublications.aspx?head=Statistical%20Tables%20Relating%20to%20Banks%20of%20India&fromdate=11/17/2009&todate=11/19/2009

SRI S.SRIDHAR, CMD, CENTRAL BANK OF INDIA WRITES A LETTER TO CUSTOMERS

Sri S. Sridhar, Chairman and Managing Director, Central Bank of India has written a letter to the customers of the bank. We are reproducing here below for the beneift of our readers.
Dear Central Bank Customer,
It is customary for incoming Chief Executives of organisations to write to customers immediately after joining, assuring the customers of their best attention and outlining their plans for the future of the organization. I did not deliberately follow conventional wisdom as I wanted to write to you after our own strategic thinking had crystallized. I also thought that it would be nice to write to the customers after we have some achievements. That time has now come.
Our Bank recently announced its half-yearly financial results for the six month period ended September 30, 2009. During this half year both, in terms of Deposits as well as Advances, we have outperformed the market. Our total business as of September 30, 2009 stands at Rs.2,43,718 crore. What is most satisfying is that the Bank’s Net Profit for the last half year was Rs.581 crore which is the highest in its history and higher than the full year’s profit of last year i.e. 2008-09 of Rs.571 crore. It is also higher than the Net Profit for the full year for the last ten years with the exception of 2003-04 (Rs.618 crore).
Apart from these impressive financial results, the Bank has introduced a number of new products. These include various loan products for corporate customers, Cent Gold Kisan Credit Card for farmers, retail products such as SMS alert facility, Pre-generated ATM Cards, Debit Cards, Prepaid Cards (Gift cards), retail sale of gold coins, special package for housing loans, special loan package for doctors, etc.
The important aspect of the Bank’s functioning on which I am laying considerable stress is customer service. I am aware, that many of you have complaints and have experienced levels of service which are not and should not be accepted in performing organizations. I have tried to respond as quickly as possible to customers who have written to me about their problems. Customers’ letters receive the highest priority in my office. I have asked my colleagues, particularly the field functionaries at Zonal, Regional, Branch levels to display the same spirit. Customer Service Committees have already been constituted at the Central Office, Zonal Offices, Regional Offices and selected branches. I would request you to join these initiatives as constructive critics.
Central Bank will be celebrating its Centenary year from December 2010 onwards. It is a momentous occasion for us, Centralites. The Bank which was founded by Sir Sorabji Pochkhanawalla as a Swadeshi Bank has over the years evolved into a Pan India large Commercial Bank contributing to the growth of our country. It is the vision of this management to evolve the Bank into a financial service conglomerate. We have launched on April 2009, ‘Operation Navchetana’ signaling our determination to rejuvenate ourselves in the service of our customers. ‘Operation Navchetana’ will cover our people, our business processes, our branches and offices. Technology is being accorded the highest importance. We now have one-third of our branches accounting for 80% of our total business on Core Banking Solution. We are introducing rapidly a number of technology based financial products, particularly for retail customers. We are also leveraging technology for achieving breakthroughs in financing the poor. Internet Banking has already been launched and Mobile Banking will follow shortly.
On behalf of all Centralites, I assure you of our total commitment to the “Maximum Bank” viz., your Bank, the Central Bank of India.
I will, from now on, write to you monthly, sharing with you our wins, both big and small, our failures and the issues that we face.
I thank you for your continued support and interest in Central Bank of India.
With best regards.
Yours faithfully,
S. SRIDHAR

INDIA STILL AMONG MOST CORRUPT COUNTRIES IN THE WORLD: TRANSPARENCY INTERNATIONAL

Transparency International, the International Watchdog, has ranked India 84th in the list of 180 countries in terms of Public Sector corruption, which is perceived to be highly corrupt. Developing countries like Serbia, Burkina Faso, Peru and Ghana fared better than India by claiming 83, 79, 75 and 69 spots respectively.
It has also reported that the bottom five nations in the list were Somalia, Afghanistan, Myanmar, Sudan and Iraq, whereas the cleanest countries with ranking close to 10 were New Zealand, Denmark and Singapore.
Source: http://economictimes.indiatimes.com/articleshow/5240053.cms

RBI TO ISSUE CIRCULAR ON NPA PROVISIONING SOON

Ms. Usha Thorat, Dy. Governor, RBI told to reporters that the RBI will be issuing circular on provisioning norms soon. This is as a sequel to the announcement made by Mr. D. Subba Rao, Governor, RBI, in the second quarterly review of the monetary policy in October 2009, when he said that there was need to increasing provisioing against bad assets to less than 70 per cent by September 2010.
Source: http://www.business-standard.com/india/news/rbi-to-issue-circularnpa-provisioning-soon/78448/on

BANKS NEED 12 LAC BUSINESS CORRESPONDENTS FOR RURAL AREA

As per the report appearing in Business Standard, Mr. Krishna Mohan, Regional Director, Reserve Bank of India, has said that the Indian Banking Sector needs at least 12 lac business correspondents to work in rural areas to bring six lac villages of the country into banking area. He said that existing 76000 branches of Scheduled Banks are catering only to 6% of the total villages in the country and only nine branches are available for one lac population.
Reserve Bank of India has recently relaxed norms for appointment of business correspondents, who act as an intermediary for banks and perform functions of a bank in an area where the bank does not have a presence.
Source: http://www.business-standard.com/india/news/banks-need-12-lakh-biz-correspondents-for-rural-area/78450/on

BANKS SHOULD CUT LENDING RATES BY 2% - ASSOCHAM

As per the report appearing in The Economic Times, Assocham has demanded the Government to direct the commercial banks to reduce their lending rates by at least 2% to  boost the credit off-take, which was at 9% for the period from April to October 2009. The increase in deposits during the same period was 22%.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Banks-should-cut-lending-rates-by-2-pc-Assocham/articleshow/5237133.cms

RBI ASKS BANKS TO DISCLOSE COMMISSION FROM MFs, INSURERS

As per the report appearing in The Economic Times, Reserve Bank of India, to lend transparency, directed the banks to disclose the commission received by them from Mutual Funds and Insurers for referring their products to customers.It is reported that these directions would come into force with immediate effect.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/RBI-asks-banks-to-disclose-commission-from-MF-insurers/articleshow/5237149.cms

AIBOC CIRCULAR NO. 84 DATED NOVEMBER 14TH 2009

AIBOC has issued its circular No. 84 on gruesome killing of officers and employees of United Bank of India, Karimpur Branch, Nadia, West Bengal.
The incident once again demonstrates the pitiable working conditions of the bank staff particularly the officers. Everybody knows that bank officers work late hours to complete the work without any secuirty. Lack of security is a concern to all and the managements immediately should initiate measures to rectify the same.
While condemning the attack, we reproduce hereunder the circular issued by the AIBOC.
CIRCULAR NO:84           14th November, 2009
TO ALL AFFILIATES/MEMBERS
GRUESOME KILLING OF OFFICERS AND EMPLOYEES OF UNITED BANK OF INDIA, KARIMPUR BRANCH, NADIA, WEST BENGAL
Yet, again there are reports from our West Bengal Affiliate about a dacoity at gun-point on 11.11.2009 at Phulbari Branch of United Bank of India, in Jalapiguri District and cold blooded murder of two Bank Officers, one part time sweeper and a generator operator at United Bank of India, Karimpur Branch, Nadia on 12/11/09. These unfortunate incidents have sent shock waves among all the bank officers, shattering their morale and motivation. The officers, who by compulsion, have to sit late in the night to complete the routine work, take care of customer’s service, lending under government sponsored schemes, to priority sectors including agriculture. As a sequel to these incidents, the officers have been suffering from lack of security and fears of personal annihilation.
2. We have addressed letters to the Hon’ble Chief Minister of West Bengal urging him to ensure congenial law and order situation in the far flung areas and also to the Hon’ble Finance Minister, Government of India, urging him to offer employment on compassionate grounds to the legal heirs of the deceased families. We have also addressed a letter to the Chairman, United Bank of India to beef up security arrangements at all the vulnerable centres and have urged upon him to adequately compensate the bereaved families and offer the legal heirs employment on compassionate grounds.
3. AIBOC State Unit of West Bengal will observe protest day against the gruesome events on Monday, the 16th November, 2009 and we request all our affiliates to extend their fraternal support.
With greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY