PROMOTIONS OF SCALE-I TO II AND SCALE-II TO III RELEASED

Central Office has released the list of the candidates who have been found successful in the promotion process held for Scale-I to II and Scale-II to III. We are placing below the list of successful candidates of Hyderabad Zone who have been found successful from Hyderabad Zone and their allotted Zone on promotion.

SL. NO	NAME OF THE CANDIDATE	PRESENT PLACE	ALLOTTED ZONE
SCALE - I TO II - NORMAL CHANNEL
1	G.N. KALLURKAR	BENZ CIRCLE	HYDERABAD
2	B.KUMAR SWAMY	NALGONDA	HYDERABAD
3	SHAIK MOULALI	BHAVANIPURAM	HYDERABAD RURAL
4	C.S. KISHORE BABU	KAKINADA	HYDERABAD
5	MOHD. TAHER	VEMURU	HYDERABAD
6	M.R. BALREDDY	NIZAMABAD	HYDERABAD
7	R. PRABHAKARA RAO	HYDERABAD	HYDERABAD
8	E. DEVADAS	VISAKHAPATNAM	HYDERABAD
9	RAMESH POOJARI	N.M.P.A.	HYDERABAD RURAL
10	V.V. MOHAN RAO	WARANGAL	HYDERABAD RURAL
11	Y.V. RAMBABU	NOORKHAN BAZAR	HYDERABAD RURAL
12	K. VASUDEVAN	MANDYA	HYDERABAD RURAL
13	B.V. MADHUSUDANA RAO	GOWRAMPET	HYDERABAD
14	M.K. NANDA	NARSAPUR	HYDERABAD
15	CH. RAMESH	YADAGIRIGUTTA	HYDERABAD RURAL
16	S. RAGHUNATH RAO	SHIMOGA	HYDERABAD
17	P. YOHAN	MANTADA	HYDERABAD AUDIT
18	N. MOHAN KUMAR	KARWAR	HYDERABAD AUDIT
19	T. PARAMESHWARAIAH	NANDYAL	HYDERABAD AUDIT
20	G.U. JANYA NAIK	MATHIKERE	HYDERABAD RURAL
21	K. RAMALINGAM	KANCHIKACHERLA	HYDERABAD RURAL
22	B. SREENIVASULU	JAYANAGAR EXTN	HYDERABAD RURAL
23	G. SHIVA KUMAR	ABBIGERE	HYDERABAD
24	G.V. RAVEENDRA KUMAR	SURYABAGH	HYDERABAD RURAL
25	K. MANGAPATHI RAO	NARSAMPET	CHENNAI
26	K. VENUGOPAL	CHALLUR	CHENNAI RURAL
27	S.V.B.N. MURTHY	MANIKONDA	HYDERABAD
28	C. MADHU MURTHY	HYDERABAD	CHENNAI
29	K. SAI SRINIVAS	CHATTA BAZAR	CHENNAI
30	Y.S.R.S. VIJAYKUMAR	VINAYNAGAR	CHENNAI RURAL
31	VANDANA T. RAO	MANGO MARKET	CHENNAI RURAL
32	A. RAMESH	VISAKHAPATNAM	CHENNAI RURAL
SCALE - I TO II WRITTEN CHANNEL
1	S. LAKSHMI NARAYANA	DESHMUKHI	HYDERABAD AUDIT
2	CHERUKURI SATYAVANI	ZO, HYDERABAD	HYDERABAD RURAL
SCALE - I TO II FAST TRACK CHANNEL
1	V. KRISHNA MOHAN	MANDAPETA	HYDERABAD RURAL
2	CHANDRE GOWDA	MYSORE	HYDERABAD RURAL
3	KUMAR VIVEK	RO, HUBLI	MUZAFFARPUR RURAL
4	KANAK RAJU	GANDHIGRAM	CHENNAI RURAL
5	K. KRISHNA MURTHY	GACHIBOWLI	HYDERABAD RURAL
6	RANDHIR KUMAR SINGH	BOLARAM	CHENNAI RURAL
SCALE – II TO III NORMAL CHANNEL
1	M. KOTESWARA RAO	MANGO MARKET	HYDERABAD
2	JAMES XAVIER	ZO, HYDERABAD	HYDERABAD
3	K. JAGADISHWARA RAO	VEMURU	HYDERABAD
4	D. NANDA KUMAR	RO, VIJAYAWADA	HYDERABAD
5	B.R. ASHOK	PAKALA	HYDERABAD
6	N. SRINIVASA RAO	NIZAMABAD	HYDERABAD
7	N. RAM MOHAN RAO	ZAHEERABAD	HYDERABAD
8	P.V.S. PRASADA RAO	RO, HYDERABAD	HYDERABAD
9	V.S.R. SARMA	TULASI NAGAR	HYDERABAD
10	P. CHANDRA SEKHARA RAO	THOTAPALEM	HYDERABAD
11	K. MAHADEVAPPA	MILLER ROAD	HYDERABAD
SCALE – II TO III WRITTEN CHANNEL
1	M. SAI KRISHNA	BELLARY	HYDERABAD
2	V. BALARAMAIAH	MANIKONDA	HYDERABAD
3	R. MURALI	VIJAYANAGAR	HYDERABAD
4	KASHINATH S. HATTE	SIRWAR	HYDERABAD

GOPALAN CALLS FOR BANKING REGULATION ACT AMENDMENT

The government today said there was a need to amend the Banking Regulation Act which will enable the Reserve Bank of India (RBI) effectively regulate the banking sector.

“There is a need to amend the Banking Regulation Act to enable RBI to obtain information from other entities — whoever is getting a licence — so they (RBI) are in a position to regulate the banking sector institutions appropriately,” R. Gopalan, secretary in the department of economic affairs of the finance ministry, said on the sidelines of the Skoch Summit here.

RBI, which is forming draft guidelines for the entry of fresh players in the sector, had sought more powers from the government to regulate banks. For example, existing regulations does not allow RBI to supersede the board of a bank, which the regulator now wants.

The draft legislation proposes to give powers to RBI to supersede the board of directors of a bank for a period of up to one year and appoint an administrator.

The Banking Laws (Amendment) Bill of 2011, introduced in the Lok Sabha during the Budget Session, seeks to give voting rights to investors commensurate with their shareholding in private sector banks.

Gopalan said RBI was expected to come out with draft guidelines on new bank licences soon.

“RBI has given it (recommendations) to the finance ministry and is also consulting other stakeholders. Based on this, they will come out with draft guidelines (on new bank licences) soon and put it in the public domain for consultation,” he said.

Last year, RBI circulated a discussion paper on new bank licences which examined the pros and cons of allowing industry houses and non-banking finance companies in the sector.

On the timeline of the issuance of new bank licences, Gopalan said it could be done once amendments to the Banking Regulation Act were cleared by Parliament.

“I have a feeling that once the draft guidelines are out, the amendment to Banking Regulations Act will be passed. I think this will be the right setting for licences to be issued,” he said.

On the country’s economic growth in the current financial year, Gopalan said, “It should be between 8 and 8.5 per cent depending upon how long the prices continue to remain at elevated levels. That we do not know at this point of time as we are just two months into the new financial year.”

India’s economy grew by just 7.8 per cent in the fourth quarter ending March 31, mainly due to the poor performance of the manufacturing sector, as against 9.4 per cent in the same three-month period of the previous financial year.

However, economic growth, as measured by the gross domestic product, improved to 8.5 per cent in 2010-11 from 8 per cent in 2009-10, due to better farm output, construction activities and financial services performance.

SOURCE: http://www.business-standard.com/india/news/gopalan-calls-for-banking-regulation-act-amendment/437715/

BANKS TO COVER 350,000 VILLAGES BY 2013: RBI

Around 350,000 villages across India would secure access to financial services offered by banks in the next two financial years, according to a plan banks have given to the Reserve Bank of India (RBI). RBI has asked banks to ensure that 223,473 villages have access to basic financial services by March 2012.

“Banks are still engaged in ecosystem development. Once that is done, banks said they would be able to scale up,” said K C Chakrabarty, deputy governor, RBI. Banks have been asked to include their financial inclusion performance when they evaluate the performances of their field staff, he added.

Chakrabarty said the number of ‘no frills’ accounts rose to 74 million from 50 million in a year in March, while the growth in no frills accounts with overdraft facilities has been sluggish. According to RBI, a ‘no frills’ account is one for which no minimum balance is insisted upon, and for which there are no charges levied if the balance is lower than the minimum balance permitted. Chakrabarty said opening no frills accounts was not enough to bring about financial inclusion. He said banks needed to strike a balance between opening branches and appointing business correspondents. “You cannot cover all services only through banking correspondents. You need to have brick-and-mortar branches, and that is why we have now made it mandatory that 25 per cent of the new branches have to be in unbanked villages,” he said. RBI had, in its annual policy, mandated banks to allocate at least 25 per cent of the total number of branches to be opened in a year to unbanked, rural centres.

In March, 99,840 villages were covered by banks, of which, 76,801 were covered through business correspondents.

SOURCE: http://www.business-standard.com/india/news/banks-to-cover-350000-villages-by-2013-rbi/437695/

AIBOC CIRCULAR NO. 57 DATED 01.06.2011

AIBOC issued its circular No. 57 dated 01.06.2011 on TA/DA payable to serving/retired employees of bank while attending departmental enquiries as defence representatives and defence witness. We are reproducing the same here for our readers.

CIRCULAR NO.57                                              01.06.2011

TO ALL AFFILIATES/MEMBERS:

TA/DA PAYABLE TO SERVING/RETIRED EMPLOYEES OF BANK: ATTENDING DEPARTMENTAL ENQUIRIES AS DEFENCE REPRESENTATIVES AND DEFENSE WITNESS

The IBA, in a recent communication issued to the Chief Executives of Public Sector Banks have advised that the Retired Employees attending enquiries as Defense Representatives or as Defence witness, are not eligible for TA/DA.  This is a measure, which is totally against the principles of natural justice.

Hence, we have addressed a letter to the Chairman, IBA to modify the communication issued by them and urging them to extend TA/DA to the Officer employees extending defence assistance to retired officer employees who are issued with charge sheet and also to officer employees attending enquiries as Defence witness.  We have stressed that this is a necessary ingredient of fairplay.

We have annexed a copy of the letter addressing to the IBA.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1452/231/11                                     01.06.2011

To,

Shri M.D.Mallya,

Chairman,

The Indian Banks’ Association,

World Trade Centre Complex,

Centre 1, 6th Floor, Cuffe Parade,

MUMBAI – 400 005.

Dear Sir,

TA/DA PAYABLE TO SERVING/RETIRED EMPLOYEES OF BANK: ATTENDING DEPARTMENTAL ENQUIRIES AS DEFENSE REPRESENTATIVES AND DEFENSE WITNESS

We invite your kind attention to your Circular No.CIR/HR&IR/665/E-10/2010-11/2004 dated 25.04.2011, wherein you have advised the Public Sector Banks the provisions for reimbursement of TA/DA to serving employees/ex-employees (including retired, dismissed) of the Bank, in case they have to attend the proceedings before a Court of Law/Tribunal/Inquiring Authority, so as to depose as a prosecution or as a Management witness.

From the Annexure to the above Circular we observe that the TA/DA facility is denied to the retired employees if they are attending the enquiry as Defence Representatives or as Defense Witnesses. We wish to bring to your kind notice the fact that many retired officer employees who are facing disciplinary proceedings are being defended by retired officers as per the wish of the charge sheeted officer. Such of the retired officer employees extending defence assistance to the retired, charge-sheeted officer employees, were hitherto entitled for TA/DA commensurate with his grade/scale. Managements of different banks have been permitting this facility and the abrupt withdrawal of the facility to the retired officers acting as Defence Representatives, with specific permission from the competent authority, has come as a rude shock to us, as this tantamounts to denial of principles of natural justice.

Similarly, the facility is denied to employees attending the enquiries as Defence witness and these amounts to putting the interests of the charge sheeted officer to jeopardy, as he will be denied the opportunity to defend himself effectively. This is against the principles of natural justice.

Hence, we strongly feel that TA/DA facility should be paid to the retired officer employees who are extending defense assistance to charge-sheeted officers and also the officer employees attending as defence witnesses, to uphold the principles of natural justice and fair play.

Please keep us informed of your response in the matter.

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

RBI DIRECTS PVT, FOREIGN BANKS TO SET UP VIGILANCE SYSTEMS

The Reserve Bank today asked private and foreign lenders to put in place a system of internal vigilance machinery and appoint a Chief of Internal Vigilance (CIV) by August to check frauds and malpractices.

The directive aims at bringing in such banks in line with the practices followed by state-owned banks to check frauds.

"In an endeavour to align the vigilance function in private sector and foreign banks to that of the public sector banks the existing vigilance functions of a few private sector and foreign banks were mapped with the existing guidelines in the matter and it was observed that the practices vary widely among the banks," RBI said in a notification.

"It has therefore been decided to lay down detailed guidelines for private sector and foreign banks on similar lines so that all issues arising out of lapses in the functioning of the private sector and foreign banks especially relating to corruption, malpractices, frauds etc can be addressed uniformly by the banks for timely and appropriate action," it said.

A compliance report to this effect may be submitted to RBI on or before August 31, 2011, it said.

In a separate notification, RBI asked all the banks and financial institutions to streamline procedure for detection of fraud and recovery of misappropriated fund.

The matter assumes significance in the light of Rs 460 crore fraud in Citibank's Gurgaon branch discovered last year.

The Central Vigilance Commission has issued guidelines to public sector banks on the appointment of Chief Vigilance Officer (CVO).

The purpose of having such system in place is to ensure that all the internal vigilance functions in the public sector banks are addressed through a set of pre-determined and structured procedures to ensure comprehensive treatment and transparency.

As per the guideline, the designated officer similar to CVO in case of public sector banks acts as a special assistant or advisor to the CEO of the concerned bank in the discharge of these functions.

An officer of suitable seniority is required to be designated as Chief of Internal Vigilance (CIV) who will head the Internal Vigilance Division of the bank, it said.

The normal tenure of a CIV would be 3 years extendable up to a further period of two years, it said, adding, but if the officer has to shift from one bank to another without completing the approved tenure in the previous bank, the principle of overall tenure of 6 years will apply.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/rbi-directs-pvt-foreign-banks-to-set-up-vigilance-systems/articleshow/8699354.cms

PLACEMENT OF SCALE-III TO IV PROMOTEES RELEASED - DATE OF REPORTING 06.06.2011

Central Office has released the placements of Scale-III to IV promotees with date of reporting as 06.06.2011. We are placing below the placements of the promotees working in A.P.

Sri T. Vinodkumar                           Pimpri, Pune
Sri V. Sudhakara Rao                      Colaba, Mumbai
Sri Ch. Yesudas                               Coimbatore
Sri D.N. Rajendra Kumar                Mount Road, Chennai
Sri CH.V.S.N. Murthy                    Sunder Nagar, Mumbai
Sri M.V.S.S. Durga Prasad             Central Office, Mumbai

We are also placing the list of the Scale-III to IV promotees, who have been posted to the state of Andhra Pradesh.

Sri P.S.R. Murthy                           CCPC, Vijayawada
Sri A.K. Tomar                              Nizamabad
Sri Artratran Mishra                       Patancheru
Sri A. Lawrence Peter                   ZO, Hyderabad
Sri R. Regupathy                           ZAO, Hyderabad
Sri K.V. Kunhikannan                   Secunderabad
Sri M. Devanathan                        CFB, Hyderabad
Sri Babukutty Zacharia                  ZO, Hyderabad

PRIVATE BANKING: EASY BANKING FOR HIGH NET WORTH INDIVIDUALS

Private banking is personalised financial and banking services offered to a bank's high net worth individuals (HNIs). In India, it is offered by foreign banks and a few private sector banks. Banks like Citibank , Standard Chartered , HSBC , HDFC , ICICI and the likes offer such services.

The main advantage of private banking is that a dedicated relationship manager is assigned to the customer who takes care of all his/her banking and financial needs. Be it a simple thing like wanting cash delivered at your doorstep, or complex financial planning for your kids, or your retirement, drafting a will, investing short-term surplus money, or buying a complex structured product - all of it is taken care of by the private banker.

Private banking is offered to high net worth customers. Depending on the perception of your financial wealth, the bank would offer you these services.

Different banks have different norms for customers eligible for such services. Some banks offer private banking to clients with 30 lakh investible surplus, while some others give them to those with 1 crore and above.

Your wealth would include things like fixed deposits, your investments in mutual funds, the balance in your savings account and so on.

The private banker helps you in all your banking and wealth management needs. To start with, the banker has to understanding the customer. So a private banker has initial meetings with the client to understand his/her risk profile, cash flows, needs and wants.

Based on the details obtained from such meetings, he develops an asset-allocation ratio for the client.

Using this model, he allocates the client's wealth into various assets that he feels opportune, such as equities, debt or real estate.

Within each category, he offers various products. Once a portfolio is restructured and built, it is monitored on a monthly or quarterly basis. The private banker comes up with appropriate strategies to enhance returns from the portfolio.

A private banker's role is to anticipate and understand client needs and to help achieve his immediate and long-term wealth goals. So whether you run a business, or are employed or a professional, a private banker should be able to help you.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/private-banking-easy-banking-for-high-net-worth-individuals/articleshow/8686736.cms

DEPOSIT & LOAN SURGE BELIES SLUMP FEARS

Banking activity remained brisk even amid talk of slowing investments as outstanding deposits and loans in the banking system surged in the fortnight ended May 20, from a year earlier.

Deposits on a year-on-year basis grew by 17.3% from May 2010 while credit rose by 22.27% from the same period a year earlier, data from the Reserve bank of India show.

Deposits mobilised by all commercial banks rose just 0.6% or 3,246 crore, to Rs 53,19,225 crore for the forthnight ended May 6 from the preceding fortnight, data from the Reserve Bank of India show. Total loans dipped Rs 5,270.6 crore to Rs 39,52,113.5 crore during the same period.

Most economists and bank analysts believe that demand for credit may slow in the coming months as higher interest rates could deter borrowing.

In fact, the country's largest bank, the State Bank of India , raised its lending rates - both prime lending rate and base rate - by 100 basis points to 14% and 9.25% in two phases in the month of April and May this year. Similarly, all PSU banks and private banks raised their lending rates in May by at least 50 basis points.

Even the data released by the government on Tuesday show that the economy grew 7.8% in the fourth quarter - a 21-month low as corporates preferred to go slow on their expansion plans.

Bankers, however, feel that slowdown could not be only on account of raising interest rates. But they are optimistic that they would be able to achieve 20-25% credit growth in this financial year.

Sensing poor deposits mobilisation, a number of banks, including Bank of India and Lakshmi Vilas Bank , have raised their deposit rates early this week. Bank of India raised deposit rates by 150 basis points in short tenure.

However, Bank of Baroda CMD MD Mallya and Union Bank of India CMD MV Nair told ET on Tuesday that they do not feel the need to raise lending or deposit rates in the immediate future.

The low demand for loans has led to some banks parking money in central government securities. This is reflected in the rise in investment portfolio. During the same fortnight, the investment book of banks rose Rs 16,739 crore to Rs 15,69,843 crore.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/deposit-loan-surge-belies-slump-fears/articleshow/8686860.cms

BANK CREDIT UP 22.5%, DEPOSITS RISE 16.9% IN 12 MONTHS

Credit offtake from banks grew by 22.5 per cent to over Rs 40 lakh crore during the one-year period ended May 20, 2011, indicating an upswing in industrial activity.

According to the latest RBI data, credit offtake during the period stood at Rs 40.73 lakh crore, as against Rs 33.26 lakh crore in the same period of the previous year.

Meanwhile, deposits went up to over Rs 54.68 lakh crore from Rs 46.76 lakh crore as on May 21, 2010. This is a rise of over 16.9 per cent on an annual basis.

In the annual monetary policy 2011-12 announced last month, the RBI had said that credit is likely to rise at a faster pace because of the economy's growth momentum.

During 2010-11, bank credit increased by 21.5 per cent, while deposits grew by only 15.5 per cent. In the monetary policy for 2010-11, the RBI had estimated credit growth at 20 per cent, while deposit growth was pegged at 17 per cent.

However, in December, 2010, the apex bank expressed concern over the widening ratio between the credit and deposit rates of banks. Toward the end of the last fiscal, however, the gap in the credit-deposit ratio stood reduced.

This time, the central bank has not made any projections for growth in credit or deposits for 2011-12 in its annual policy.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/bank-credit-up-225-deposits-rise-169-in-12-months/articleshow/8680035.cms