22.03.2007

1. Canara Bank has opened 125 ATMs across the country on a single day. The ATMs have new value-added features like mobile top-up, VISA money transfer, cheque deposit, e-ticketing and easy access to more than 14,000 ATMs of different banks across the country.
2. RBI is on track for implementation of Basel II guidelines by March 2008 for Indian banks with global presence and foreign banks operating in the country. RBI's Deputy Governor Mr V. Leeladhar said, "There are some challenges that needs to be overcome by the banks." Among these, he said, were corporate ratings. All the four credit rating agencies had conveyed that the infrastructure for corporate ratings were in place.Besides, he said, Indian banks needed to have risk management tools in place, instead of relying on RBI's circulars for the purpose. He said that the RBI, as the regulator, had set up a core team for monitoring banking institutions once the guidelines came into effect. Indian banks had made good progress since 1990, when financial sector reforms were initiated. Non-performing loans, despite the shift to the 90-day norm, was less than 3 % compared to 15% in 1990. The average capital-to-risk weighted assets of the banking sector was 12.3% currently as against 1996 figure of 8.7%. Moreover, as on December 2006, there were only 25 banks in the country that were short of the prescribed Rs 300 crs net worth; foreign banks incidentally comprised 17 of them. These banks had submitted a road map for achieving complying with the net worth guidelines.
3. The 475th branch of the South Indian Bank at Ranchi has been opened. It has established a large network of core banking branches in the private sector, next only to ICICI Bank and HDFC Bank. Dr V.A. Joseph, Chairman and CEO of the bank, said during the opening that Jharkhand is the 23rd State that SIB was venturing into. It was poised to achieve Rs 20,000 crs in total business as on March 31 this year.
4. IDBI Capital Market Services Ltd has signed a memorandum of understanding with Oriental Bank of Commerce (OBC) to offer e-trading services through www.IDBIpaisabuilder.in. The portal allows online investment in equities, mutual funds and initial public offerings. Facilities of investing online in equity on the BSE and the NSE, F&O (NSE), mutual funds (including SIP facility), portfolio tracker, two equity trading platform to all customers and custom stock screener are among the features on offer.
5. Canara Bank's business growth target for the current financial year was on track, with credit growing at 20% this year. With the GDP growth in the 9-10% trajectory, loan off take has also grown. Deposits this year was growing at 18% this year and only a small component was bulk deposits. This year, the bank was optimistic of meeting its business target of Rs 2.3 lakh crs. The Bank reiterated its interest in inorganic growth opportunities.The preference was exclusively for banks operating in the western and northern regions.
6. Kotak Mahindra Bank said it plans to raise $45 mn (Rs 200 crs) by issuing bonds to International Finance Corporation, the private sector arm of the World Bank Group. The private sector bank will issue upper tier II subordinated bonds by way of debentures with a final maturity of 15 years. The investment will help the bank augment its capital base and enhance the bank's long term funding resources. It will increase the bank's lending to small and medium enterprises, and for individual housing, said a statement from IFC.
7. A creditor was entitled to proceed against the borrower in accordance with the provisions of the Securitisation and Reconstruction of Finance Assets and Enforcement of Securities Interest (SARFAESI) Act without the withdrawal of the OA (original application) pending before the Debt Recovery Tribunal, the Madras High Court has ruled. Rejecting the contention of the borrower (Kamaldeep Synthetics Ltd, Chennai) that notice for possession of security under Section 13(4) of the Act could be issued by creditor bank (Industrial Development Bank of India, Chennai) only after reasons for non-acceptance of objections were communicated by bank, the First Bench said that the borrower was unable to demonstrate prejudice or loss that was likely to be caused to him by reason of possession notice given.