Tides of 31.05.2011

1. Multilateral lending agency World Bank will extend a USD 350 mn soft loan to accelerate development of road network in Karnataka.The Government of India and the World Bank today signed this loan to accelerate the development of Karnataka. The agreement was signed in the presence of Karnataka Chief Minister B S Yeddyurappa.The project is aimed at upgrading 1,231 km of roads into two-lane highways.
2. RBI has permitted Development Credit Bank (DCB) to open 10 new branches. The bank already has 80 branches spread over 17 states and Union Territories while it is in the process of setting up branches in Surat and Bharuch districts in Gujarat.
3. Vijaya Bank plans to install new counters at branches that would offer additional facilities to its customers round-the-clock. As a pilot study, the Bangalore-headquartered bank would initially offer this service in five branches across the country. These are like offering additional features beyond banking hours -- automated pass book entry, cash drop facility, internet banking".Initially, as a pilot study Bank will try them in five branches ...,". The branches would cater to young customers and office goers.
4. The Board of State Bank of Travancore has approved the draft letter of offer for its planned rights issue. It did not disclose the size of the issue.
5. The Delhi High Court has directed the Punjab National Bank to return securities worth Rs.1,000 crore to DLF Limited and slapped a cost of Rs.20,000 on the bank for illegally withholding it. The securities were withheld by the bank as it wanted the company to pay Rs.20 crore pre-payment charges on a loan.
6. Facing shortage of experienced hand, the government has relaxed the criteria for selection of Chairman and Managing Director of public sector banks, a decision that would make several executive directors eligible for elevation as CMD.Under the new criteria, a bank executive director (ED) with a minimum experience of 6 months would also be eligible to become CMDs.Earlier, an ED had to serve a minimum of one year to become eligible for the bank''s top post.
7. In a bid to achieve global status, Indian public sector bank major Central Bank of India has drawn up plans to open its branches in various foreign countries.At present, the bank has a presence at Mozambique in Africa.As part of its global expansion plans, the bank would soon open outlets in Bhutan, Nairobi, Dubai and also in Sri Lanka.
8. U.S. authorities closed a Washington state bank , bringing the total number of foreclosures in 2011 to 44.
9. In order to encourage Indian companies to expand their global footprint and showcase entrepreneurial skills, the RBI relaxed norms for overseas direct investments.The regulations relating to overseas direct investments, are being liberalised "with a view to providing more operational flexibility to Indian corporates having investments abroad".The modified norms will provide greater freedom to domestic companies like Tatas, Bharti and Reliance to increase their commitments in overseas joint ventures and subsidiaries and also help them repatriate funds without seeking prior approval of the RBI."The move is in recognition of entrepreneurial ability of India Inc by the Reserve Bank.