RBI announces 50 bps Rate Cut; FM welcomes

The Union Finance Minister Shri Arun Jaitley said that the Government welcomes the Reserve Bank of India (RBI)’s decision to reduce the repo rate to 6.75 percent from 7.25 percent. The Finance Minister was responding to the Monetary Policy announcement made by the Reserve Bank of India today.

The Finance Minister said that constant vigilance is warranted on the inflation front, this action signals that inflationary pressures have moderated significantly and are within the RBI’s comfort zone. He said that the Government is committed to meet its fiscal deficit target to consolidate the gains achieved in reducing the inflation.

The Finance Minister Shri Jaitley further said that this action also signals that the RBI is able to provide policy support to the real economy and help its recovery. He said that the Government looks forward to the transmission of these cuts to the rest of the economy and will work to facilitate this transmission, including by reviewing the framework of small savings. Shri Jaitley said that the rate cut, combined with actions taken and planned by the Government, will help boost confidence and investment, and help realize the economy’s medium-term potential growth rate.

The Finance Minister Shri Jaitley further said that Indian corporates would now be able to raise External Commercial Borrowings (ECB) through rupee denominated offshore bonds with no end use restrictions. He concluded that this would provide additional source of raising resources which would be fully hedged as they are denominated in rupees.

Shri Shaktikanta Das, Secretary, Department of Economic Affairs (DEA), Ministry of Finance said that the Medium Term Framework for FPI investment in Government Securities would bring in predictability for foreign investors. He said that the limits would be increased from existing 3.8% to 5% of the outstanding stock of Government Securities by March 2018 implying increase by about Rs 1,20,000 crore from the existing limit of Rs 1,53,500 crore.

Shri Das said that in the current financial year, Rs.26,000crore would flow in the Government Securities. He said that the increase in FPI limits would bring in greater foreign participation with predictability and would result in higher liquidity in the Indian Government Securities market. He said that for State Development Loans, FPI limits have been fixed for the first time at 2% of the outstanding stock that would amount to about Rs 50,000 crore by March 2018 and Rs.7,000 crore would flow in State Government Securities during the Current Financial Year. This would bring higher liquidity in these State Government bonds.

The Chief Economic Adviser Dr Arvind Subramanian said that the transmission of rate cut is partly by the banks and partly by the market rates coming down. He reiterated that the Government looks forward to the transmission of these cuts to the rest of the economy and will work to facilitate this transmission, including by reviewing the framework of small savings. He said that the Government would review the GDP rate target for the current Financial year after the figures of second quarter are available.

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YES BANK Art Bengaluru 2015

The Collection - UB City and Sublime Galleria in association with the Prestige Group is gearing up for 'YES BANK Art Bengaluru 2015'. One of India's most reputed art festivals, the 6th Edition of 'Art Bengaluru' aims to go beyond the canvas, celebrating art in its myriad forms.

Uzma Irfan - Conceptualizer and Organizer,'Art Bengaluru' said, "The Indian art market currently has both good quality and discerning buyers. Globally, art is also increasingly becoming an alternate investment option. In this year's edition of 'Art Bengaluru', we have attempted to bring together distinguished artists from across the globe, thus giving people an opportunity to experience, under one roof, the multitude of art forms available. This festival is not just for the art aficionados and collectors. We hope to promote the various art forms and create a greater understanding of art in the city with this initiative. We also encourage schools to bring in their students to make the most of this festival."

Sharing his thoughts on this festival, Mr. Rana Kapoor - M.D. & CEO, YES BANK added, "It is extremely encouraging and motivating to be a part of 'Art Bengaluru'; this leading global cultural event will bring together the best talent in modern and contemporary art. Our association with 'Art Bengaluru' is YES BANK's endeavour through its newly-launched YES CULTURE initiative, to further enhance India's stature in the global art landscape, strengthen the vibrant socio-cultural fabric of our nation and celebrate contemporary India's rich culture and heritage on a global scale. The amalgamation of the corporate sector and art fraternity will play a major role in augmenting India's cultural stature globally and provide new professional avenues for our nation's talented and creative youth."

Mr. Suresh Jayaram - Curator, 'YES BANK Art Bengaluru 2015' said, "This event is a confluence of creative energies that will challenge us. The curated section will contextualize the changing dynamics of an accelerated market economy. In the post-capitalist context, the mall is the new art destination for interaction in the urban scenario. It is here, that we wish to locate art amidst luxury. We want the audience to pause and contemplate the creative indulgence of the artist, and their ability to question reality. We wish to create new dynamics with the visual culture of our times. This interaction with art is another attempt to make art accessible and make it become an integral part of our life and public discourse."

Associate Sponsor for the festival, Mr. Satya Bagla - M.D., Exclusive Motors Pvt. Ltd. said, "Luxury and art have always gone hand-in-hand as they have two qualities in common - excellence and aesthetic. UB City is a landmark destination for all things related to Luxury, Art and Culture in Bangalore today. Bentley needs no introduction - it epitomises luxury and is considered an aspirational brand, the world over. As 'Art Bengaluru' enters into its 6th Edition, it was a natural choice for us to associate ourselves with this celebrated Art Festival, as it gives us a great opportunity to make our presence felt in Bangalore, while interacting with Bentley enthusiasts from across South India."

The theme for this year's festival is 'Paradigm Shift'. In keeping with this theme, 'YES BANK Art Bengaluru 2015' hopes to promote a discovery of the arts from a change-inducing standpoint. Traditionally, art was symbolized by paintings, classical sculptures and so on. However, over the years, the very concept of 'Art' has undergone a sea change. With technological advancements, today, we have the opportunity to embrace a whole new set of art forms -interactive and immersive installations, among others. The rich interiors of The Collection, UB City will also be transformed to complement this year's theme. The Bentley Mulsanne will be on display throughout the festival, further increasing the luxury quotient of the venue.

Moreover, unlike in previous years where the focus was on presenting different galleries from across the globe, this year will witness a global festival, celebrating national and international artists. There will be over 35 exhibits showcasing sculptures, installations, paintings and photography. There will also be a curated Video Lounge as well as a Photography Wall.

This year, the art is being curated by Suresh Jayaram. An artist, art historian, arts administrator and curator of national repute; he is a well-known name in the art world. There will also be curated walks by Mr. Jayaram, as well as trained art guides, to give visitors an in-depth and holistic understanding of the festival and the artworks on display.

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ICICIdirect launches ‘Insta Account'

Mumbai, India, Aug 20: ICICI Securities, India's largest online investment service provider, today announced the launch of ‘Insta Account’, a completely online and paperless investment account.

A Resident Indian who is KYC compliant as stipulated by SEBI can open an Insta Account on www.icicidirect.com to invest in Indian Mutual Funds. The investor has the freedom to use any of their existing internet banking account.
With the Insta Account, investors also get the opportunity to explore and experience the range of benefits offered by ICICIdirect to its existing customers.

ICICI Securities has made the account opening formalities convenient by streamlining the process with the existing KYC formalities, thus eliminating the inconvenience and lengthy process of filing and submitting paper documents. There are no charges to open an Insta Account on www.icicidirect.com

Launching the new account, Mr. Vineet Arora, Executive Vice President ICICI Securities “Today internet and smartphones have provided customers the convenience of taking decisions instantaneously – from shopping for groceries to selecting a house, everything is done on the go. At ICICIdirect, we want people to take informed investment decisions on the go; safely and conveniently irrespective of their geographic location in India. With an ICICIdirect Insta Account, we have done away with the traditional way of paper documents and we have ensured ease and convenience to investors by leveraging the efficiency of technology. Investors who are already KYC compliant would be able to use any of their existing internet banking account to make an investment and utilize the in-depth research reports for their mutual fund investment.”

Insta Account investors get the following benefits:
a) Access to an in-depth research
b) Decisive Capital-gain status and statements
c) Dividend income information
d) A comprehensive analysis report showing the asset-mix, performance and the underlying information of the mutual fund investments.

KYC compliance is mandatory to transact in the securities market as stipulated by the Securities and Exchange Board of India (SEBI). In case the applicant is not KYC compliant, ICICIdirect team will assist the investor in completing the formalities.

To open an account an investor simply needs to follow three simple steps:
1. Provide the investors Permanent Account Number (PAN) and Date of Birth (DoB)
2. Verify the name and contact details and generate a one-time password (OTP)
3. Authenticate using the OTP and create User-id and password

Post opening an Insta Account, the investor who has an existing ICICI Bank account can start investing instantly. Investors wanting to use any other bank account just need to scan and upload copy of that bank’s cheque. On successful verification the investor can use their internet banking account to make the investment using their ICICIdirect Insta Account.

“We believe that this eco-friendly way of investing will improve the experience of investors wanting to access and benefit from the long term growth of the equity capital market through the mutual fund route. We want to encourage more investors, especially across non-urban Indian areas with fewer access points to opt for the Insta Account route and not put their investments on hold due to lack of time, “added Mr Arora.

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ICICI Bank opens New Branch in Amritsar

ICICI Bank Ltd, India's largest private sector bank, inaugurated its new branch at Mehta Road, near Vallah Mandi in Amritsar. The branch offers the services of a round-the-clock ATM at its premises.

The new branch was inaugurated by Additional District Commissioner-Development, Amritsar, and Mr. Tajinder Pal Singh Sandhu (PCS).

This branch remains open from 9:00 am to 6:00 pm on Monday to Friday and from 9:00 am to 2:00 pm on Saturday.

It will offer a comprehensive range of loans and deposits including saving, current and term deposits, home loans, gold loans, auto loans, personal loans and credit cards along with NRI services.

ICICI Bank has 4052 branches and 12811 ATMs in the country (as on June 30, 2015). It has more than 200 branches and close to 400 ATMs in Punjab.

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Axis Bank Hackathon 2015 - Gamification Challenge

New Delhi, May 20, 2015: Axis Bank, India’s third largest private bank, has announced a virtual hackathon challenge on 30th and31st May, 2015 in partnership with NASSCOM. Rapidly changing digital space and improved technology penetration across various customer segments have transformed the digital banking landscape globally. The bank plans to build a strong Digital Banking capability by continually innovating to become an integral part of a customer’s life.

The bank is looking to engage with innovative companies to build customer focussed solutions which will reinvent consumers’ interaction with the bank’s mobile app. The bank is in search of developers and designers who can gamify the financial technology solutions, using the power of Axis Bank's digital platforms/APIs on the mobile channel. Anyone who has a great idea - whether working alone or in a small/large leading tech company can participate. The bank would allow individuals as well as teams to participate.

Gamification can be meaningfully used to motivate customers and nudge their personal financial behaviour such as goal-based savings and debt reduction on the bank’s mobile app. The Bank will take forward the winning ideas to design an engaging product/service mix and make financial transactions enjoyable for customers.

Mr Amit Sethi, CIO, Axis Bank, said “Mobile technology has transformed not only customers’ daily behaviour but their expectations of us as their financial partner. We are inviting creative minds to collaborate with us in this journey of building next generation customer centric mobile solutions. We want to be a part of customers every day digital lives.”

Mr. Rajesh Rao, Chair, NASSCOM Gaming Forum, said “The hackathon in collaboration with Axis Bank is a progressive step towards leveraging technology to revolutionize the digital banking landscape. NASSCOM is pleased to be a part of this initiative and are optimistic that this will be helpful in enhancing and creating a robust digital banking ecosystem in India.”

Axis Bank will reward the top 3 winners with an overall prize money of Rs. 15 Lakhs. Further, Axis Bank may get into service contracts with one or more of them. Intellectual Property would be retained by Axis Bank.

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Airtel to apply for Payments Bank License

New Delhi, January 29, 2015: Bharti Airtel Limited (“Airtel”) today announced that its wholly owned subsidiary Airtel M Commerce Services Limited (AMSL) is seeking to convert its existing Prepaid Payment Instrument license into a Payments Bank license to be issued by the Reserve Bank of India. It also announced that subject to grant of a Payments Bank license to AMSL by the RBI and all regulatory approvals, Kotak Mahindra Bank Limited (Kotak) will acquire 19.90% stake in AMSL as an investor.

AMSL offers mobile money services under the brand name “Airtel Money”.

Gopal Vittal, MD and CEO (India and South Asia), Bharti Airtel said, “We welcome the Reserve Bank of India’s (RBI) initiative on Payments Bank. The RBI’s vision for differentiated banks represents a significant step in furthering India’s financial inclusion agenda. The RBI guidelines provide an exciting and challenging opportunity for an entity like us to contribute in a meaningful manner to drive financial inclusion”.

On the tie-up with Kotak, Vittal added, “Kotak Mahindra Bank Limited is one of the leading and most respected private sector banks in India. Kotak’s banking expertise coupled with Airtel’s strength in telecom will help deliver financial services to millions of unbanked citizens across the country”.

Airtel is the largest mobile services provider in India with over 215 million subscribers and with 31% revenue market share. Airtel has deep and wide distribution reach especially in rural and remote parts of the country. Its distribution network reaches over 1.4 million retail points across India.

Airtel Money, launched in 2011 was the first mobile based pre-paid payment instrument service in the country and today empowers millions across India to leverage their mobile phones as a secure way for making payments and transferring money.

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Stock Markets This Week: Sensex gains 2.37%

Stock Markets This Week: Sensex gains 2.37%

Stock markets this week  (Dec 26 - January 2, 2015) gained 2.37 per cent on hopes of much-awaited sectoral reforms and encouraging manufacturing output data for December by HSBC Manufacturing Purchasing Managers’ Index (PMI).

The benchmark BSE Sensex settled at a four week high while NSE Nifty surged to near 8,400 points this week.

The political uncertainty in Greece and New Year eve holidays in Asian stock markets moderated the equity market in India two days in this week.


The sentiment of investors was high as speculations were buzzing around for the much awaited banking reforms by the government. As expected, the government came out with some major decisions over the banking.

This week, the government has also announced to replace the 65 year old Planning Commission with NITI Aayog. This said to be major reform indication from the government of India. 

This week, the government appointed CEO & MD for four nationalized banks snapping the tradition as followed earlier. Under this the government has separated the role of Chairman for the banks. And moreover, the government may give autonomous to banks.

The HSBC Manufacturing Purchasing Managers’ Index (PMI) for December provided a major push to stock markets on the last trading day of the week.

The BSE Sensex resumed the week higher at 27,247.78 points on December 26. It moved to 27,395.73 points on December 29, 2014 - 27,403.54 points on December 30 – 27,499.42 points on December 31 – 27,507.54 on January 1, 2015 and on January 2, it surged to 27,887.90 points.

The Sensex gained 646.12 points or 2.37 per cent in the week.

The wide-based 50-issue CNX Nifty of the NSE traded between 8,410and 8,214before ending the week at 8,395.45 points, at net gain of 194.75 points or 2.37 per cent in the week.

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Wells Fargo Commercial Banking Primes for Eastern Expansion

Wells Fargo (NYSE:WFC), No. 1 in lead banking relationships with middle-market companies, said today that New York City will serve as its new Eastern Region hub for Commercial Banking. John P. Manning, a 26-year financial services veteran and Wells Fargo executive vice president, will lead the continued expansion of the company’s Commercial Banking business in the Eastern U.S. and Eastern Canada. He is based at Wells Fargo’s Manhattan office, 150 East 42nd St.

Manning succeeds Carlos Evans, a longtime Wells Fargo Commercial Banking leader in Charlotte, North Carolina, who retired last May. Manning most recently led Wells Fargo’s 14-office Commercial Banking division in Southern California. Before that, he oversaw the Greater Los Angeles division. His teams doubled their loan portfolio between 2009 and 2014.

In the last few years, Wells Fargo Commercial Banking has grown rapidly in the East, with new operations in Maryland, Boston, and Toronto, among others. Manning’s new Eastern territory includes 23 Regional Commercial Banking Offices in 13 states, plus the District of Columbia and Eastern Canada. Wells Fargo has identified more Eastern urban and suburban markets for possible Commercial Banking expansion, including New York boroughs and New England communities where middle-market businesses cluster.

“As middle-market companies are feeling more confident about the economy, they’re seeking opportunities to invest in their operations, their people, and their communities,” Manning said. “Wells Fargo’s top priority throughout this region is putting resources on the ground. That means local teams, local decisions, and local lending authority where our customers live and work.”

A native of New Jersey, Manning earned his bachelor’s degree in finance from Rutgers University. He joined Wells Fargo’s Commercial Banking group in 1994 as a relationship manager in Los Angeles. He progressed through the organization and was promoted to head of the Greater Los Angeles division in 2009. Commercial Banking unified its Southern California offices into one region in 2013 with Manning at the helm.

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Axis Bank Launches Smart Self-Service Terminal

Axis Bank Launches Smart Self-Service Terminal

A self-service terminal that facilitates customers to deposit as well as withdraw cash from the same machine

Axis Bank, India’s third largest private sector bank, announced the launch of a smart self-service terminal that enables customers to deposit as well as withdraw cash from the same machine. Customers can initiate a deposit transaction through the smart self-service terminal even without using a debit card and will receive instant credit for the deposited amount.

There is no cap on the amount of cash deposited by the customer through these terminals, provided his/her PAN details are available with the bank.

The smart self-service terminal will reduce the frequency of loading cash in the machine as well as the cost of idle cash as it allows cash recycling operations by dispensing deposited cash for future withdrawal transactions, thereby improving efficiency of the bank's cash operations.

Speaking on the occasion Mr. Rajiv Anand, Group Executive & Head- Retail Banking, Axis Bank said, “Axis Bank has been a pioneer in launching customer friendly technology initiatives in the banking space. The self-service terminal is another innovative product by the bank which will help customers carry out all financial and non-financial transactions in a convenient and hassle free manner.”

Axis Bank has focussed on introducing innovative products and services and has always promoted the convenient and hassle free self-service environment through ATMs, Cash Deposit Machines (CDM) and Cheque Deposit Kiosks. The smart self-service terminal is another step by the bank towards offering a one stop solution to its customers for carrying out all their financial and non-financial transactions. The bank will convert its existing CDMs to smart self-service terminals in a phase wise manner.

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State Bank of India Enhances Customer Experience with Datacard® Instant Issuance Debit Card Solution

State Bank of India Enhances Customer Experience with Datacard® Instant Issuance Debit Card Solution

First Integrated Kiosk Solution in South Asia that Offers Self-Service Capabilities for Instant Issuance of Debit Cards

Mumbai, Maharashtra, India and Minnetonka, United States

EntrustDatacard today announced that it has launched the first integrated instant issuance kiosk solution in South Asia with State Bank of India (SBI). This is also the first instant EMV chip card personalization application in Asia – which follows the Reserve Bank of India’s (RBI) regulation.

State Bank of India opened its first set of seven outlets immersed with digital capabilities in prime business districts and shopping malls in Mumbai, New Delhi, Bengaluru, Chennai, Kolkata and Ahmedabad. The sbiINTOUCH outlets appeal to India’s burgeoning millennial population. The technology-savvy customers are attracted to the efficient, self-service nature of these outlets, in which they will manage the majority of their business on their own while SBI staff focuses on more value-added advisory transactions.

“India is in the midst of a major demographic transition and we recognize that our customers increasingly expect digital services to help them manage their financial needs,” said Arundhati Bhattacharya, the chairman of State Bank of India. “Today, more than half of India's population is under the age of 25. By 2020, India's average age will be just 29 years – this is a digital demographic: one that expects businesses to provide solutions immediately. At the same time, the mass affluent – no matter what their age have similar expectations. Indian banks need to provide a strong response to these new demands. These branches are a first step in the journey to offering full digital services across the nation.”

“INTOUCH is the start of SBI’s digital journey,” said S K Mishra, deputy managing director, State Bank of India. “This is our attempt to put our brand SBI in touch with the dreams of the aspirational customer. It is a deep rooted transformation that has three aspects: a transformation of the customer experience we deliver; introduction of device centric technology that is at the forefront of our global peers; and transformation of the behavioral model of our staff-base to be even more customer centric.”

From their compact size to their self-service orientation, SBI’s digital outlets are designed for efficiency. Using self-service kiosks, customers can open accounts and access online banking accounts. The customers can also make use of instant debit card issuance kiosks which enable a secure and real time issuance of a fully personalised debit card.

State Bank of India, the largest public sector bank in India is recognized for innovative banking technology. With the vision of “Next Generation Banking with a difference” SBI has decided to implement instant issuance of personalised debit cards in sbiINTOUCH outlets. Entrust Datacard is one of the partners in enabling this unique branch model for the customers to experience instant issuance of personalised debit cards.

“Banking models are evolving and transitioning to meet the needs and requirements of our younger generations,” said Rajiv Singh, managing director of Entrust Datacard, South Asia. “The Datacard® instant issuance kiosk solution will allow SBI to evolve with the market demands of the massive card growth in India, as well as differentiate themselves by providing a powerful new way to drive revenue and engage customers.”

Entrust Datacard currently has over 20,000 instant issuance branch installations worldwide, and millions of cards are issued on their solutions every year. In addition, the Datacard® portfolio has been combined with the Entrust® software authentication platforms that strengthen security in a wide range of identity and transaction ecosystems. Financial organizations can now rely on this bundled offering to include the physical issuance and personalization technology of card programs; and the logical and digital security features for cardholder data and transaction-based applications.

About Entrust Datacard

Consumers, citizens and employees increasingly expect anywhere-anytime experiences — whether they are making purchases, crossing borders, accessing e-gov services or logging onto corporate networks. Entrust Datacard offers the trusted identity and secure transaction technologies that make those experiences reliable and secure. Our solutions range from the physical world of financial cards, passports and ID cards to the digital realm of authentication, certificates and secure communications. More than 2,000 Entrust Datacard employees serve customers in 150 countries worldwide. For more information, visit www.entrustdatacard.com.

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FM to Relaunch Kisan Vikas Patra

FM to Relaunch Kisan Vikas Patra (KVP); Available to the Investors in the Denomination of Rs. 1000, 5000, 10,000 and 50,000, with no Upper Ceiling on Investment; Investment made in the KVP will Double in 100 Months

The Union Finance Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) here tomorrow in the presence of Shri Ravi Shankar Prasad, Union Minister of Communication and IT and Shri Jayant Sinha, Minister of State for Finance among others. Increasing savings rate in the economy was one of the priorities of the new Government on assuming charge. In view of the popular demand and to revitalize Small Savings, the Finance Minister in para 27 of his Budget Speech announced that “Kisan Vikas Patra (KVP) a very popular instrument among small savers will be reintroduced The instrument will encourage people, who may have banked and unbanked savings to invest”. Accordingly, it is decided to reintroduce Kisan Vikas Patras (KVPs). KYC norms regarding all National Savings Schemes (NSS) are now applicable in post offices and banks w.e.f. January, 2012.

The re-launched Kisan Vikas Patra (KVP) will be available to the investors in the denomination of Rs. 1000, 5000, 10,000 and 50,000, with no upper ceiling on investment. The certificates can be issued in single or joint names and can be transferred from one person to any other person / persons, multiple times. The facility of transfer from one post office to another anywhere in India and of nomination will be available. The certificate can also be pledged as security to avail loans from the banks and in other case where security is required to be deposited. Initially the certificates will be sold through post offices, but the same will soon be made available to the investing public through designated branches of nationalised banks.

Kisan Vikas Patras have unique liquidity feature, where an investor can, if he so desires, encash his certificates after the lock-in period of 2 years and 6 months and thereafter in any block of six months on pre-determined maturity value. The investment made in the certificate will double in 100 months.

Reintroduction of Kisan Vikas Patra (KVP) is a welcome step not only in the direction of providing safe and secure investment avenues to the small investors but will also help in augmenting the savings rate in the country. The scheme will also safeguard small investors from fraudulent schemes. With a maturity period of 8 years 4 months, the collections under the scheme will be available with the Govt. for a fairly long period to be utilized in financing developmental plans of the Centre and State Governments and will also help in enhancing domestic household financial savings in the country.

Kisan Vikas Patra (KVP) – a certificate savings scheme was launched by the Government on 1st April, 1988. The scheme provided facility of unlimited investment by way of purchase of certificates from post offices in various denominations. The maturity period of the scheme when launched was 5 ½ years and the money invested doubled on maturity. The scheme was very popular among the investors and the percentage share of gross collections secured in KVP was in the range of 9 % to 29 % against the total collections received under all National Savings Schemes in the country. Gross collections under the scheme in the year 2010-11 were Rs. 21631.16 crores which was 9 % of the total gross collections during the year. In the year of its closure, the scheme secured gross collections of Rs. 7575.95 crores (April 2011 to November 2011).

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50K vacancies to be filled up in PSU banks - P. Chidambaram

Indian Finance Minister P. Chidambaram had a meeting with PSU (Public Sector Undertaking) banks' heads on Wednesday and after the meeting he addressed the press. While talking to the press he said that in this fiscal 50,000 vacancies are to be filled up in the PSU banks of India.

Talking to reporters he said, PSU banks are expected to open 10,000 branches all over India, including 2000 Regional Rural banks. Adding more he also said, as the new branches needs human resources, PSU banks are expected to hire close to 50,000 people in this fiscal.

As on March 31, 2012 - PSU banks had a sanctioned strength of 8 Lakh employees and in the last fiscal recruitment for 63,000 vacancies has been done. Among the PSU banks, State Bank of India (SBI) has recruited the highest, 20-22,000 people, in the last fiscal.

As per the statement of Finance minister, this fiscal bank would follow the same trend and recruit higher number of personnel for around 50,000 jobs.

Entities like Institute of Banking Personnel Selection (IBPS) has been conducting exams all over India to choose the best personnel for banking sector, since few years - including urban and Regional Rural banks (RRBs). Recently IBPS has announced the exams for RRBs.

Apart from that P. Chidambaram also said about stalled projects and he had given importance to re-initiate these projects while talking with the banks' heads.

Above all, this is a good news for students preparing for banking sectors, as this fiscal the recruitment will be high and there chances to get into a bank is more.

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Names of 26 Applicants for new bank licenses in the private sector

On Monday Reserve Bank of India released the names of applicants for the new banking licenses in the private sector. Among the major names are Tata Sons, Aditya Birla and Bajaj Finserv, whoi have applied for the new banking licenses.

There are also government entities like Department of Posts, LIC Housing Finance, IFCI and Tourism Finance Corporation of India, who have applied for the same. Here is the full list –

1. Aditya Birla Nuvo Ltd., Mumbai.
2. Bajaj Finserv Ltd., Pune.
3. Bandhan Financial Services Pvt. Ltd., Kolkata.
4. Department of Posts, New Delhi.
5. Edelweiss Financial Services Limited, Mumbai.
6. IDFC Limited, Mumbai.
7. IFCI Limited, New Delhi.
8. Indiabulls Housing Finance Limited, New Delhi.
9. India Infoline Ltd., Mumbai.
10. INMACS Management Services Limited, Gurgaon.
11. Janalakshmi Financial Services Pvt. Ltd., Bangalore.
12. J M Financial Limited, Mumbai.
13. LIC Housing Finance Ltd., Mumbai.
14. L & T Finance Holdings Limited, Mumbai.
15. Magma Fincorp Limited, Kolkata.
16. Muthoot Finance Limited, Kochi.
17. Reliance Capital Limited, Mumbai.
18. Religare Enterprises Limited, New Delhi.
19. Shriram Capital Limited, Chennai.
20. Smart Global Ventures Pvt. Ltd., Noida.
21. SREI Infrastructure Finance Limited, Kolkata.
22. Suryamani Financing Company Limited, Kolkata.
23. TATA Sons Limited, Mumbai.
24. Tourism Finance Corporation of India Limited, New Delhi.
25. UAE Exchange & Financial Services Ltd., Kochi.
26. Value Industries Limited, Aurangabad.

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Big Business in Banking?

In a significant development in issuing new banking licenses, the Reserve Bank of India has allowed all private and public sector companies to apply for the banking licenses, as promised in the Union Budget 2010-11.

The last date to apply for get the bank licenses is July 1, 2013. Now the companies those can afford Rs 500 crore for the minimum paid-up capital for setting up a bank can apply for banking licence.

This is a give move by the RBI to strengthen the banking system in India. With the entry of big business houses into the banking system would not only boost the banking system, but also help proved a milestone.

Last time the RBI had issued banking licence to Yes Bank in 2004.

The big business houses like Tata, Mahindra and Mahindra, Aditya Birla Group, L&T, ADAG and Reliance could apply for the banking licence in India.

There will be more private banks in India, once the licences have been issued to the companies, like given to Yes Bank in 2004.

There 26 public sector banks and 22 private sector banks in India. Soon the number private sector banks would go up, after the licencing process is completed.

However, there are some strict guidelines in the new banking lincences system, which need to be followed by the companies those would apply for it.

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Bank Branches to start in Villages in Koraput

The district administration of Koraput, Odisha in association with nationalized banks to open 46 Ultra Small Branches (USB) of banks in villages with over 2000 population.

These branches will provide banking services in the village having more than 2000 population in the district of Koraput in Odisha.

After these branches set up, the village can do their money transaction with the nationalized bank USB branches and also get their wages payment for MGNREGS.

Out of 46 proposed branches for the villages in the district, Utkal Grameen Bank will open 33 branches, State Bank of India (6), Andhra Bank (4) and UCO Bank, Union Bank of India and Indian Overseas Bank will open each branch, according to media reports.

The district administration will provide space in existing government buildings to set up the banking branches and spent Rs 1.46 lakh from Integrated Action Plan fund on each USB bank branches proposed in the district villages.

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HDFC's Financial Results for the Quarter Ended June 30, 2012

Press Release

Mumbai, Maharashtra, India, Wednesday, July 11, 2012 -- (Business Wire India) -- The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its results for the first quarter of the financial year 2011-12, following its meeting on Wednesday, July 11, 2012 in Mumbai. The accounts have been subject to limited review by the Corporation's statutory auditors in line with regulatory guidelines.

FINANCIAL RESULTS

For the quarter ended June 30, 2012, HDFC reported a profit after tax of ` 1,001.91 crores as compared to ` 844.53 crores in the corresponding quarter of the previous year - an increase of 19%.

TOTAL ASSETS

As at June 30, 2012, the total assets of HDFC stood at ` 1,74,676 crores as against ` 148,831 crores as at June 30, 2011 - an increase of 17%.

LENDING OPERATIONS

As at June 30, 2012, the loan book stood at ` 1,48,262 crores as against ` 1,24,168 crores as at June 30, 2011. Individual loans sold during the preceding 12 months amounted to ` 4,978 crores. The growth in the individual loan book, including loans sold is 29% (23% net of loans sold) whereas the non individual loan book grew by 14%. The growth in the total loan book inclusive of loans sold is 23% (19% net of loans sold).

During the quarter ended June 30, 2012 the loan book grew by ` 7,387.74 crores of which ` 6,635.07 crores - representing 90% of the increase was on account of the increase in the individual loan book.

For the quarter ended June 30, 2012, loan approvals grew by 17% and loan disbursements grew by 20% as compared to the corresponding quarter in the previous year.

Spread and Net Interest Margins

The spread on loans over the cost of borrowings for the quarter ended June 30, 2012 stood at 2.27%. Net Interest Margin for the quarter ended June 30, 2012 was 4%.

Investments

As at June 30, 2012, the unrealised gains on HDFC's listed investments amounted to ` 27,001 crores (previous year ` 23,206 crores). This excludes the appreciation in the value of unlisted investments.

Non-Performing Loans

Gross non-performing loans as at June 30, 2012 amounted to ` 1,190 crores. This is equivalent to 0.79% of the loan portfolio (previous year - 0.83%) This is the thirtieth consecutive quarter end at which the percentage of non-performing loans have been lower than the corresponding quarter in the previous year.

Based on a six months overdue basis, the non-performing loans as at June 30, 2012 stood at 0.49% of the loan portfolio as against 0.55% in the previous year.

The balance in the provision for contingencies account as at June 30, 2012 stood at ` 1,711 crores, of which only ` 344 crores is on account of regulatory provisioning for non-performing loans and the balance ` 1,367 crores mainly comprises general provisioning on standard loans, including Dual Rate Home Loans.

As against non-performing loans of ` 1,190 crores, the balance in the provision for contingencies account as at June 30, 2012 stood at ` 1,711 crores (inclusive of non-performing loans). This is equivalent to 1.14% of the portfolio.

CAPITAL ADEQUACY RATIO

HDFC's capital adequacy ratio stood at 14.6% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital was 11.8% against a minimum requirement of 6%.

DISTRIBUTION NETWORK

HDFC's distribution network spans 318 outlets that include 77 offices of HDFC's distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 90 locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and other third party direct selling associates.

To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia - Al Khobar, Jeddah and Riyadh.

WARRANTS

In August 2009, the Corporation had issued 5,47,68,530 Warrants with a right exercisable by the Warrant holder to exchange each Warrant with one equity share of face value of ` 2 per share on or before August 24, 2012 at a Warrant exercise price of ` 600 per equity share. As at June 30, 2012, 16% of the Warrants have been exchanged for equity shares of the Corporation.

CONSOLIDATED ACCOUNTS

The Corporation intends to disclose the unaudited consolidated financial results on a quarterly basis. The consolidated financial results for the quarter ended June 30, 2012 will be disclosed shortly.

CONTACT DETAILS
Mahesh Shah, Housing Development Finance Corporation Limited, +91(22) 66316410, maheshs@hdfc.com

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HDFC Bank Wins 2012 Celent Model Bank Award

Press Release

Mumbai, Maharashtra, India and North Carolina, United States, Wednesday, July 04, 2012 -- (Business Wire India) -- HDFC Bank (NYSE:HDB; NSE:HDFCBANK) wins the 2012 Celent Model Bank Award in the "Customer Service Initiative" category for delivering great customer experience across channels including branch, phone banking, contact centers etc.

HDFC Bank does not believe in designing a product/process and look for customers. Instead it always puts the customer at the center while designing various products/process to meet customer needs. The key difference lies in "Customer Centric approach" versus "Product centric approach". Bank focuses towards identifying customer niches to design specific products to meet their requirements and emphasis is on "acquiring through bricks" and "serve through clicks".

HDFC Bank always believed in "One Bank" vision and had invested in the right technology since inception. It is one of the few Indian Banks to have put in place a dedicated "Service Quality and Lean Sigma Team" which imbibes the power of Lean Sigma to transform processes and abreast technology to provide continuously improving customer experience across channels. With a view to ensure consistent experience across channels and to enhance 360 degree view of customers, it partnered with CRMnext in 2007. The bank realized that in today's environment only unparallel customer experience could provide a sustained edge much needed to maintain profitable growth while increasing number of customers, transactions and resultant balance sheet size.

"The idea was to completely transform the customer experience by creating a single common platform across the bank for strategy execution. Driving improvement in Service Quality needed adequate focus on process reengineering, behaviour change as well as technology support. We needed a CRM system with scalability given the large data volumes, 55,000+ user base, workflow complexities, integration, synchronization and incremental updates was a big challenge. Our CRMNext solution added value to execute our vision without any compromise." said Ratan Kesh, Senior Vice President and Head Service Quality, HDFC Bank.

CRM at HDFC Bank allows creation of a unified customer view by interfacing with various sources including the data warehouse thereby providing a comprehensive 360° view of customers across various channels like branch, phone banking, etc. Today HDFC Bank has more than 25,000 on CRMnext who have a comprehensive and relevant 360° customer view which has multiplied cross-sell and up-sell capabilities at all customer touch points.

CRMnext also enables system driven contact strategies based on customer bands to ensure aligned actions and quality interactions across all customer touch-points. Various systems integrated to provide event based triggering such as large deposits, channel usage, etc. Marketing team continuously generates cross-sell offers and next best products to be sold. This has resulted in HDFC bank having one of the highest product holding ratios per customer in the industry.

"At CRMnext, our focus has been to deliver high impact transformational CRM solutions. We enable our customers to execute their strategy, holistically on a single platform, thereby creating sustainable competitive advantages for them. We feel proud to be a part of the entire customer experience transformation initiative at HDFC bank." Nishant Singh, Director, CRMnext.

Thanks to bank's focussed Service Quality drive and CRM initiative, Bank's customer base has witnessed a huge increase alongwith significant increase in the leads, higher conversion ratio and reduction in TAT. First pass rate has gone up and Bank's Service Quality Rating improved leading to many-fold reduction in customer complaints.

About CRMnext

CRMnext is a specialist Customer Relationship Management product company with focus on ultra-scalable installations. CRMnext team has proven track record of delivering High-Impact CRM solutions in their key practice vertical of Banking, Insurance, Media, and Telecom. Unlike commodity CRM, CRMnext has been widely recognized as a proponent of strategy driven implementations. For more details visit www.crmnext.com

About HDFC BANK

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its 25 million* customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments.The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 17 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.As of March 31, 2012, the Bank had a distribution network with 2,544 branches and 8,913 ATMs in 1,399 localities.

For the quarter ended March 31, 2012, the Bank's total income was INR 88.8 billion (`8,880 crore) as against INR 67.243 billion (`6,724.3 crore) for the quarter ended March 31, 2011. Net revenues (net interest income plus other income) were INR 48.803 billion (`4,880.3 crore) for the quarter ended March 31, 2012, as against INR 40.952 billion (`4,095.2 crore) for the corresponding quarter of the previous year. Net Profit for the quarter ended March 31, 2012, was INR 14.531 billion (`1,453.1 crore), up by 30.4% over the corresponding quarter ended March 31, 2011.

The Bank's total balance sheet size increased by 21.8% to INR 3,379.09 billion (`337,909 crore) as of March 31, 2012. Total deposits were INR 2,467.06 billion (`246,706 crore) as of March 31, 2012.Total income for the year ended March 31, 2012, was INR 325.3004 billion (`32,530.04 crore).Leading Indian and international publications have recognized the bank for its performance and quality.

For more information please log on to: www.hdfcbank.com

About Celent

Celent is a research and a consulting firm offering unbiased analysis of the current industry trends, market sizes and competitors in the market to assist financial institutions, vendors, and consulting firms formulate comprehensive business and technology strategies. With extensively experienced in-house analysts, Celent publishes research reports identifying trends and best practices in financial services technology. A member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC], Celent offers strategic advice and market insights on a global basis.



CONTACT DETAILS
Rahul Sheth, +91 (22) 42688270, rahul.r.sheth@crmnext.com

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Citi India Reports Earnings for the Year Ended March 31, 2012

Press Release

Mumbai, Maharashtra, India, Tuesday, July 03, 2012 -- (Business Wire India) -- Citi India reported a strong financial performance for the year ended March 31, 2012. During the period, Profit Before Tax for Citibank N.A. India rose 37% to Rs.3,297 crore in financial year 2011-12 from Rs.2,402 crore in financial year 2010-11. Profit After Tax rose 35% to Rs.1,922 crore from Rs.1,424 crore during the same period. Total assets for Citibank India grew 15% to Rs. 128,428 crore at March 31, 2012 from Rs.111,586 crore at March 31, 2011, driven by growth in the commercial banking segment, higher trade assets for global banking customers and growth in the mortgage business. The Bank's deposits grew 14% during the financial year 2011-12 to Rs.64,698 crore and the CASA ratio stood at 55%. At March 31, 2012, the Bank's net non-performing loans were lower at 0.9%from 1.2% in the previous year, and its capital adequacy stood at a healthy 16.03%.

Overall, Citi India's total assets including credit extended to Indian institutional and non-resident Indian clients from offshore branches stood at Rs.182,256 crore at March 31, 2012, representing a 18% increase over the previous year.

Business Highlights - 2011-12

-- Continuing the growth of the Consumer Banking business, Citibank India launched 'Citibanking', a differentiated value proposition for the emerging affluent segment, during this period. Citibank now serves consumers across every income segment in India - from salaried (Citi@work), emerging affluent (Citibanking), affluent (Citigold), high net worth (Citigold Select) to the non-resident Indian (NRI) community in India and globally. It has also strengthened its focus on Citi Wealth Advisors, for customers focused on investing in equity markets.

-- Citibank India maintained its leading position in spend per card - at double the industry average, a 21% market share in cards spend, and a 30% share in e-Commerce spend. It also advanced the offering of PremierMiles, India's first airline agnostic travel card, to offer customers the choice of earning and redeeming miles across 100 airlines.

-- With its continued leadership in digital banking, Citibank launched several features to help bring direct client benefits in the online and mobile banking space. It now offers more than 100 transactions on its online banking platform, Citibank Online. It launched the Citimobile, mobile banking application, which has unique features like location based services for locating merchants that have Citibank offers, finding the nearest branches and ATM locations and 'Click-to-Call' through which the customers can leave a request and receive a callback from the bank.

-- Citibank further expanded the number of ATMs to more than 700 and it has a network of 42 branches in 30 cities.

-- Revolutionizing the payments market, Citi was the first foreign bank to introduce the 'Cash-to-Mobile' receivables solution to address the needs of corporate and institutional clients. This solution allows suppliers and shopkeepers to make payments around the clock through a mobile phone network.

-- Citi remained integrally connected to the trade and capital flows in the region, touching 13.7% of corporate nationwide foreign exchange flows and 8.84% of corporate trade flows.

-- Citi helped Indian clients raise close to US$16 billion from equity and debt capital market transactions and advised on M&A transactions worth US$12 billion of announced deal value. Citi also played a leading role in kick starting the Government's FY'13 disinvestment program with the Offer for Sale of ONGC.

Citi 200th Anniversary

Citi marks its 200th anniversary in 2012. Founded in 1812 in New York, the mission of the organization has been to support and be an enabler of economic progress. Citi has financed some of the world's most transformative projects, such as the Panama Canal, the Transatlantic Cable and the jumbo jet. In India, from its inception in 1902, Citi's growth has been closely entwined with that of the country - its milestones in India, among many, included the financing of the first Boeing aircraft in 1971, the launch of retail banking in 1985, the issuance of the first credit card in 1990 and the launch of internet banking in 1999. Citi celebrated its 200th birthday on June 16, 2012 with its biggest ever Global Community Day, during which 5,000 people comprising employees, family, friends, clients and alumni from Citi and three partner organizations, took part in a range of community related activities across the country.

Employer of Choice

Citi remained committed to nurturing and investing in talent, grooming tomorrow's leaders, and made 146 new hires for its Associate Programme from among the best B-schools in India and globally.

Corporate Citizenship

In its continuing effort to support Economic Inclusion by way of enterprise development, youth education and livelihoods, financial capability and asset building and microfinance, Citi's Corporate Citizenship program made grants totaling Rs. 9.5 crore during the financial year 2011-12, which are expected to make a difference in the lives of more than 6.5 lakh people.

About Citi:

Committed to India for over 110 years, Citi takes pride in being a premier locally-embedded financial institution backed by an unmatched international network. Citi's presence in India spans 42 Citibank branches across 30 cities and over 700 ATMs. With capital invested of around US$4 billion, Citi is the single largest foreign direct investor in the financial services industry in India and offers consumers and institutions a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi is an employer of choice to approximately 7200 employees in India. Citi's franchise in India includes businesses such as equity brokerage, equities distribution, private banking (Citi Private Bank) and alternate investments and private equity (CVCI). In line with our commitment to make a positive difference in the communities where we work, Citi India's citizenship programme targets its strategic efforts in the priority focus areas of Financial Capability & Asset Building, Microfinance, Enterprise Development, and Youth, Education & Livelihoods. Additional information may be found at http://www.online.citibank.co.in/press-room/citi-in-india.htm



CONTACT DETAILS
Jane Ong, Citi, +91 (22) 40015050, jane.g.ong@citi.com
Debasis Ghosh, Citi, +91 (22) 40015009, debasis.ghosh@citi.com

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Dr. R. Seetharaman Conferred with Honorary Doctorate by European University

Press Release
Dubai, United Arab Emirates, Tuesday, July 03, 2012 -- (Business Wire India) -- The European University, one of the world's top business schools, has conferred 'Doctorate of Honoris Causa' on Dr. R. Seetharaman, Group Chief Executive Officer, Doha Bank. Dr. Seetharaman received the honorary doctorate recently in Geneva, Switzerland at the Graduation Ceremony of the students of European University. The honour has been bestowed on Dr. Seetharaman for his unique and valuable contributions to global governance and social responsibility.

Dr. Seetharaman received an honorary doctorate from the Washington College in United States on May 20, 2012.

Commenting on the 'Doctorate of Honoris Causa' received from the European University, Dr. Seetharaman said, "I'm extremely humbled to receive this honour and consider it as a huge privilege. It gives me great pride to be a part of this esteemed family and join my fellow honoraries. I would like to thank the European University management for considering me deserving enough for the doctorate title."

At the event, Dr. Seetharaman further provided insights on sustainable development and the aim towards it being undertaking issues such as poverty eradication, environmental sustainability, and sustainable consumption and production. The various dimensions towards sustainable development are: social foundation, low carbon economy, environmental sustainability and gender equality. The main key challenges of Sustainable development would be climatic change, energy security, increase in natural and manmade disasters and rising unemployment.

Dr. Seetharaman said that sustainable development is now in the hands of the current generation, and they are the ones who will lead the world to a brighter future.

As one of the world's top business schools, European University is internationally accredited and recognized for the excellence of its students and faculty. Established in 1973, European University has developed a business education model that delivers high-quality instruction, a competitive learning environment and a network of international campuses. European University brings the American business education model to Europe by applying classroom theory to professional skills.

About Doha Bank

Doha Bank is the largest private commercial bank in the State of Qatar. It was incorporated in 1978 and commenced its banking business (including its International Banking services) in Doha, Qatar on March 15, 1979.

As one of Qatar's leading financial services company, Doha Bank is committed to making banking work for customers and clients like it never has before. Through innovative technologies and the ingenuity of its people, Doha Bank provides individuals and commercial, corporate and institutional clients across Qatar and even internationally, new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever, wherever and however they choose through an extensive network, and multiple access channels.

The Dubai branch of Doha Bank was opened in 2008.




CONTACT DETAILS
Ms. Priyanka Geriya, priyanka@watermelonme.com

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Banking Shares Plunged by 2.6%

The banking shares index - BSE Banking slided 2.6 per cent on Wednesday, a major set back for the investors those have been feeling the banking shares safe. The major bank of India -State Bank of India registered 7 per cent down on Wednesday.

Many other commercial bank share were also plunged on Wednesday during the trading hours. The shares of Axis Bank Ltd and ICICI bank slipped 2.4 per cent and 2.1 per cent respectively.

The bank shares fell due following the credit rating agency Moody downgrading the Indian bank sector from 'stable' to 'negative'.

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