1. UTI Bank launched UTI Bank Gift Card, a rupee denominated, non-re-loadable card,based on the VISA platform with a validity of 2 years. The minimum load amount will be Rs 1,000 and in multiples of Rs 100 up to a maximum load amount of Rs 50,000. A customer buying the card has to pay 1% of the amount loaded on the card or Rs 100, whichever is higher. The card can be used in India at over 1,30,000 visa-enabled merchant outlets. It will be sold to the customers as an alternative to cash, gift cheques or gift vouchers. It can also be purchased by outsiders.
2. Vijaya Bank will soon raise capital of about Rs 500 crs to fund business growth. It will be a mix of tier-I and tier-II capital. Under tier-I, debt offering is planned. The bank has enough headroom to raise tier-II capital. After it raises capital of about Rs 500 crs, its capital adequacy ratio is likely to improve from 11.37% to about 12%.
3. To help the banking sector meet the requirement of the fast-growing economy, the Confederation of Indian Industry has stressed on more fiscal reforms in the forthcoming Union budget. The chamber has demanded exemption for the banks from collection of TDS as they face an inconvenience in the form of collecting TDS certificates.
4. TMB will be opening nine more branches before the end of March. Of this, seven will be in Tamil Nadu and one each in Andhra Pradesh and Rajasthan. Additionally, three extension counters are to be upgraded into branches.
5. IOB, BOB and Union Bank have cut interest rates on foreign deposits of various maturities, effective February 1.
6. PNB may directly place equity shares with qualified institutional buyers (QIBs) for raising fresh tier-I equity capital in the next fiscal to fund business growth.
7. Gross bank credit increased by Rs 9,012 crs and stood at Rs 17,66,491 crs for the fortnight ended January 19.
8. UCO Bank is planning to start its representative office in Guang Zhou province of China by the end of February. To start with, all the business mobilised through the Chinese office would be transferred to UCO Bank's Hong Kong office. Currently, it has four overseas branches, two in Singapore and two in Hong Kong.
9. Indian Bank has increased its benchmark prime lending rate (PLR) by 50 bps to 12.5% from Feb 1. The bank had increased deposit rates by 25-50 bps.Its spread will remain the same even after the increase in PLR and deposit rates.
