National Bank for Agriculture and Rural Development (NABARD) will assist four district central cooperative banks in Karnataka to adopt Core Banking Services (CBS). The banks situated in Kodagu, Kanara, Chikmagalur and Bijapur districts have inked an agreement with Tata Consultancy Services (TCS).

New appointment has been made at the public sector lender, State Bank of Travancore (SBT). SBT is a subsidiary bank of the largest lender in the country, State Bank of India.

The Managing Director and Chief Executive of Dhanlaxmi Bank, Mr. Amitabh Chaturvedi has resigned from the position.

She also said, "There is no substance to this. He has resigned on his own and a formal announcement will be made after the board meeting."

The deterioration of asset quality, in the recent Financial Stability Report by the Reserve Bank of India has been identified as a major risk for the banks. Considering the scenario, the apex bank has asked the lenders to make sure that the guarantor for a loan is close relative of the borrower.

This step has been taken by the RBI to avoid complication that may arise. There have been cases in which when the guarantee is...

In order to boost the leading to the Small and Medium Enterprises (SMEs), State Bank of India has waived guarantees and service charges on such loans. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) which is appointed by the Government, acts as guarantor for loans upto Rs. 1 crore.

The Managing Director (National Banking) at SBI, Mr. A. Krishna Kumar said, "The fees are basically a kind of insurance premium. To help...

Leading public sector lender, Corporation Bank has got a new Executive Director as Mr. Amar Lal Daultani.

Prior to his recent appointment he was serving at Allahabad Bank in the capacity of Field General Manager. During his stay at Allahabad Bank he also headed the Kanpur, Ahmedabad, Chinsurah and Hyderabad zones.

He has assumed the post of responsibility from February 3rd.

In an attempt to make available the banking facilities at the door-step of the customers, State Bank of India has launched ‘Bank on Wheels' project in Nagaland. The scheme will facilitate the population in the remote areas of the state which lack backing facilities and forms a part of the financial inclusion plan of the bank.

Majority of the bank's branches in state are concentrated in a three districts that leaves the remaining eight districts...

The Golden Peacock Award is awarded to the bank that comes up with some innovative product or service. The award this time has been bagged by the Central Bank of India for its retail product Cent Sahayog.

Cent Sahayog is aimed at fast credit delivery to the micro and small manufacturers and service providers (MSE). The product was launched by the bank in October 2011.

The well-trusted Indian Postal Department is now willing to set landmarks in the banking sector. In a bid to foray in the sector, it has applied for banking license at the Reserve Bank of India.

The Communications Minister, Mr. Kapil Sibal said, "A national postal policy targeting expansion and modernisation of the postal network would be announced during this year. The Government does not intend to issue licences to courier service companies, but would make it...

A new loan scheme has been launched by Andhra Bank primarily aimed for the self-employed professionals. The scheme has been christened as AB Professional Loan.

The Chairman and Managing Director of the bank, Mr. B. A. Prabhakar said "The service sector is growing and many professionals are in need of capital. The idea is to promote self-employed professionals."

"We have a target of Rs 150 crore business before end of March 2012 under this product,"...

The largest lender in the country State Bank of India is planning to expand its banking services in the Gulf region. Pursuing the plan, the bank recently opened two new branches in the region - one being in Saudi Arabia and the other in Qatar.

The Managing Director of SBI, Mr. Hemant Contractor said, "We are there in a big way, but Kuwait is the only GCC country where we don't have a branch."

At present...

The Reserve Bank of India has set guidelines on electronic security. The apex bank has decided October 2012 as the time limit for the lenders to implement the guidelines. RBI will act against the banks that will be unable to do so before the allotted time period.

The guidelines have been suggested by a working group under the Chairmanship of the Executive Director of Reserve Bank of India, Mr. G. Gopalakrishna. The measures have been suggested...

The de-classification of the farm credit by the Reserve Bank of India in July last year is likely to create hindrance for Bank of India. The apex bank has mandated all the lenders to lend 20% to the priority sector. The target seems unlikely for the bank to achieve.

The Executive Director of Bank of Baroda, Mr. N. Seshadri said, "There is pressure on meeting priority sector targets and we have informed the regulators about this."

A...

Leading private sector lender in the country, Kotak Mahindra Bank has expressed its keenness on local acquisitions. The bank is rapidly growing and has been constantly adding facilities among its gamut of services.

Kotak Mahindra chief, Mr. Uday Kotak said, "We are also seriously looking at opportunities for acquisitions within India and if (we) get something appropriate, it would be top of our priority and this is something we are currently focusing on."

He also said,...

Leading public sector lender, Bank of Baroda has announced major recruitment plans. The bank will soon recruit around 4,000 candidates on the post of officers and clerks.

Like most of the other public sector lenders, Bank of Baroda is also encountering the problem of retiring staff. Apart from that the bank has further plans to open another 500 branches in next one year. To meet the required demand for the man power the bank will...

To promote paperless banking, leading public sector lender, State Bank of Travancore has come up with Green Channel Counter (GCC).

Using this facility customer won't require filling up forms for cash deposit, withdrawal or transfer upto a limit of Rs. 40,000. To validate the transactions a receipt will be given to the customers.

The facility is extended through a specially designed device in which a customer can swipe his ATM debit card and then can make...

Reporting discord over the vacant positions of clerks and messengers in the Kerala Circle, the State Banks' Staff Union (SBSU) has demanded quick reaction in the matter.

Since the inception of Kerala Circle in year 2000, the branch network has grown from 233 to 387. The General Secretary of SBSU, Mr. A. Jayakumar said that there has not been any recruitment in the clerical staff after 2010.

He was concerned about the fact that the shortage of...

Leading public sector lender, State Bank of Hyderabad is looking to further explore in the agriculture domain. The bank, for the third consecutive occasion has attained the task of mandatory priority sector lending.

The Managing Director of State Bank of Hyderabad, Mr. M. Bhagavantha Rao said, "There is good business potential in agricultural sector. We are looking at important sub-segments like dairy."

He also said, "We are in talks with National Bank for Agriculture and Rural...

The Reserve Bank of India has decided to provide the liberty to the banks to tap repo window. The apex bank took this step in order to minimize the risk of instantaneous fluctuations in the interest rates.

From 10th February, 2012 onwards, the banks will be allowed to borrow from RBI on reporting Friday's from 4.30 P.M. to 5.00 P.M.

"Overnight money market rates become volatile on reporting Friday's", said Mr E. Srinivasa Reddy, Dealer, Andhra Bank.

He...

Post the Reserve Bank of India reducing the Cash Reserve Ratio (CRR) by 50 basis points, speculations about lowering of lending rates were being made. The move from RBI is expected to ease liquidity as well the inflation in the markets.

However, the Managing Director and Chairman of Corporation Bank, Mr. Ajai Kumar has rejected the possibility of any such move.

"The cost of fund has not gone down," said Mr. Ajai Kumar.

"The previous rate hike has...