1. Dr P.J. Nayak is back at the helm of UTI Bank, rechristened Axis Bank, as whole-time Chairman with full powers. In a strategic move to get round the RBI directive to split the chairman and managing director's post, the UTI Bank board on Monday appointed Dr Nayak as Chairman with none designated as managing director.
2. Karur Vysya Bank has inked an MoU with IDBI Capital Market Services for offering online trading facility and Depository Participation Services. The demat services would be available at KVB from June 1. The bank proposes to initially make this service available through 13 of its major branches and extend it across its 270-plus branch network in a phased manner. The service would be available in 70 to 80 branches in the first year of the roll out. The bank has plans to introduce more such technology-backed products, five to six products were in the pipeline.
3. IDBI Capital Market Services has tied-up with Punjab National Bank, IDBI, Oriental Bank of Commerce and Bank of Rajasthan for offering the online trading facility, but KVB is the first bank in the South with which it has inked the agreement for online trading and Depository Participation Service. "The offer of two products comes as a total solution. Not many banks offer both."
4. SBI Life Insurance Company has announced a 210% growth in new premium income at Rs 2,566.08 crs in the last fiscal.The company, the first among the new life insurance companies to make a profit in 2005-06, will focus on leveraging the brand equity of SBI Group. SBI Life, in which the French company Cardif holds 26% equity, hopes to achieve a 300% growth in new business in the current year.
5. The Dutch multilateral lending agency, FMO, might pick up some equity stake in City Union Bank (CUB). Sources in investment banking circles told Business Line that FMO might invest about Rs 50 crs into the bank. When contacted, officials of the bank refused to confirm or deny this. However, a communication from the bank to the stock exchanges on Monday said that a board meeting is to be convened on Friday to consider "further issue of shares through preferential allotment."
6. Corporation Bank has launched video-conferencing facility between its corporate office and zonal offices. This facility is expected to assist the bank in expediting decision-making process. This will also add to the technology edge of the bank in rendering efficient service.
7. Export Import Bank of India plans to raise about Rs 13,000 crs in 2007-08. Of the total amount, around Rs 6,000 crs will be raised in foreign currency with the rest being in rupees. During 2006-07, the bank had raised Rs 10,621 crs, comprising rupee resources of Rs 6,461 crs and foreign currency resources of $957 mn. Market borrowings as on March 31, 2007 formed 85% of the total resources. The bank's weighted average costs of funds increased to 7.05% in 2006-07 against 6.25% last year.
8. Bank of Baroda plans to have an SME Loan Factory in Coimbatore for centralised processing of SME applications in this region. It would be the bank's 16th SME loan factory in the country.
9. Having recruited 800 persons last year, Union Bank of India is looking at picking up 1,000 this fiscal. The recruitment exercise was aimed at having a mix of people of young people with excellent skill sets. It has also started the `succession plan' exercise. Public sector banks are not practising succession plan in a big way. This bank commenced this exercise a year ago. The bank has, in the first year, deputed 30 youngsters for training at IIM, Bangalore.
10. The OIC (Oriental Bank of Commerce, Indian Bank, Corporation Bank) alliance partners seem to be looking at using the OIC brand for their overseas expansion plans.
