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Showing posts with label private sector bank. Show all posts
Showing posts with label private sector bank. Show all posts

Friday, 26 February 2021

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Friday, 12 July 2019

07:55

Bank Reforms to Check Frauds


Bank Reforms to Check Frauds 
Ministry of Finance
Bank Reforms to Check Frauds
Posted On: 09 JUL 2019 8:21PM by PIB Delhi
Occurrence of frauds was enabled by laxity in the financial system, and the underlying causes have been systematically dealt with by the Government through comprehensive steps for reduction in occurrence of frauds, and their proactive checking and timely detection. The steps taken in this regard include, inter-alia,the following:
  1. Government has issued “Framework for timely detection, reporting, investigation etc. relating to large value bank frauds” to Public Sector Banks (PSBs), for systemic and comprehensive checking of legacy stock of their non-performing assets (NPAs), which provides, inter-alia, that—
  2. all accounts exceeding Rs. 50 crore, if classified as NPAs, be examined by banks from the angle of possible fraud, and a report placed before the bank’s Committee for Review of NPAs on the findings of this investigation;
  3. examination be initiated for wilful default immediately upon reporting fraud to RBI; and
  4. report on the borrower be sought from the Central Economic Intelligence Bureau in case an account turns NPA.
  5. Fugitive Economic Offenders Act, 2018 has been enacted to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. The act provides for attachment of property of a fugitive economic offender, confiscation of such offender’s property and disentitlement of the offender from defending any civil claim.
  6. PSBs have been advised to obtain certified copy of the passport of the promoters/directors and other authorised signatories of companies availing loan facilities of more than Rs. 50 crore and, decide on publishing photographs of wilful defaulters, in terms of Reserve Bank of India (RBI)’s instructions and as per their Board-approved policy and to strictly ensure rotational transfer of officials/employees. The heads of PSBs have also been empowered to issue requests for issue of Look Out Circulars.
  7. For enforcement of auditing standards and ensuring the quality of audits, Government has established the National Financial Reporting Authority as an independent regulator.
  8. Instructions/advisories have been issued by Government to PSBs to decide on publishing photographs of wilful defaulters, in terms of RBI’s instructions and as per their Board-approved policy, and to obtain certified copy of the passport of the promoters/directors and other authorised signatories of companies availing loan facilities of more than Rs. 50 crore.
  9. In order to bring transparency and accountability in the larger financial system, bank accounts of 3.38 lakh inoperative companies were frozen over the last two financial years.
The impact of the above steps is reflected in RBI’s Financial Stability Report (FSR) of June 2019. As per FSR, systemic and comprehensive checking of legacy stock of NPAs of PSBs for frauds has helped unearth frauds perpetrated over a number of years, which is getting reflected in increased number of reported incidents of frauds in recent years compared to previous years. The details of frauds of Rs. 1 lakh and above that occurred during the last three financial years (FYs), reported by PSBs to RBI, as per inputs received from RBI, are as under:
FY of occurrence
Number of cases
Amount  involved
(in crore Rs.)
2016-17
1,745
24,291
2017-18
1,545
 6,916
2018-19
  739
 5,149
Bank-wise details are at Annex.
Note: Figures cited above for PSBs include those for IDBI Bank Limited, which was recategorised as a private sector bank by RBI with effect from 21.1.2019.
This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Lok Sabha today.
 Source:PIBNEWS


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Thursday, 10 August 2017

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Friday, 14 July 2017

08:39

Yes Bank to Digitize Loan Business using AI Powered Bots

Yes Bank to Digitize Loan Business using AI Powered Bots

Yes Bank to digitize its retail loan business leveraging technology and AI backed bots
Digitization of retail loan business using AI powered bots will improve process automation and bring down cost for Yes Bank
Mumbai: Yes Bank, India’s fourth largest private sector bank is all set to digitize its retail loan business using technology and eliminate paper usage. This will improve process automation and reduce overall cost to the bank.
Traditionally, availing a loan has being a lengthy process involving loan application, credit bureau’s scrutiny and verification of other documents and then loan disbursement to applicant. The entire process from loan application to its disbursement can take around 7-10 days.
But with the digitization, bank aims to complete the entire process in less than 30 minutes over the next six months. Besides, it also plans to improve customer experience by leveraging AI backed chatbot.
The bot will enable a digitized workflow for retail loans, allowing the customers to get instant conditional approval using their mobile device and popular messenger app. Each customer can get customized solutions on products, pricing and eligibility.
Also, the chatbot will help customers by answering their queries in real-time leveraging integration with bank’s core internal systems. This enables bank’s representative to connect with a prospective customer within the shortest possible turnaround time.
The bank claimed to be the only one to offer virtual demos of cars through a chatbot and expects to service a million customers through this bot in FY 2017-18.
The chatbot is completely device, medium, location and channel agnostic and in the near term, it would have the capability to host pre-filled loan agreements and act as a place holder for enabling e-signatures, thereby creating an ecosystem that would ensure an end-to-end digital journey for customers and channel partners alike.
The retail loan customers will be able to respond to pre-approved offerings from the bank and will get to know their eligibility and EMIs, apply for loans online and get instant in-principle approvals.
The automated retail lending products will be made available in a phased manner over a period of one year and is expected to improve user experience substantially for more than 2.5 lakh customers by this fiscal end.
In addition, Yes Bank informs that it will use an industry first sales productivity tool offering completely digitalized field visit reports with Geo-tagging. This transparent sales monitoring process makes it easier for the frontline workforce to plan their day-to-day activities. Bank’s customer facing sales team members will able to save multiple man hours every day through ‘real time call reporting’ and it will be extended to over 20,000 employees working on the backend side.
“These digital interventions are key milestones in transforming Yes Bank into a truly digital bank. In a world where physical and virtual environments are rapidly converging, we constantly strive to make processes simpler for all our customers and digitizing our retail loans is a definitive step in that direction,” said Pralay Mondal, Senior Group President – Retail and Business Banking, Yes Bank.

Source:ETCIO
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Thursday, 9 March 2017

13:55

Government requests SBI, other banks to roll back charges on withdrawal

Government requests SBI, other banks to roll back charges on withdrawal

The government also asked State Bank of India to roll back charges on minimum balance in the account.

New Delhi, March 6: Responding to the charges introduced by private banks and State Bank of India for withdrawing and depositing cash in home branches, the Central Government on Monday requested the banks to roll back charges levied on consumers. Following the path of Private banks, State-run State Bank too introduced charges for the customers for withdrawing and depositing cash in bank branches after three transactions. The move irked many customers who alleged that the move will only hamper government’s initiatives to make India a less cash-dominated economy.
The move irked many customers who alleged that the move will only hamper government’s initiatives to make India a less cash-dominated economy. The government also asked State Bank of India to roll back charges on minimum balance in the account.(HDFC, ICICI, Axis bank to charge Rs 150 after 4 cash transactions a month; public sector banks to follow suit)
In an earlier development, HDFC Bank, Axis Bank and ICICI Bank notified that after four transactions are completed, the customer will be charged Rs 150 per transaction if they are withdrawing or depositing money at the bank counter. The Rs 150 charged by the bank is exclusive of access and a tax will be charged separately, a report said. In a circular, HDFC Bank said that the charges will be levied on savings as well as salary accounts which and will be effective from March 1.
For the customers withdrawing money from the home branch, there is a limit of Rs 2 lakh per month per account, which is also known as an upper limit. Above that, the bank charges Rs 5 per thousand, subject to a minimum of Rs 150 (plus taxes and cess) will be applicable, HDFC Bank said in a statement.

Source:India.com
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Wednesday, 1 March 2017

22:18

Public sector banks to hike charges: HDFC will levy Rs 150 after 4 transactions

Public sector banks to hike charges: HDFC will levy Rs 150 after 4 transactions

India's second largest private sector bank HDFC has released an updated list of charges to be imposed on transactions effective from March 1, 2017.

A possible move to push India's journey to a cashless economy, public sector banks have taken a major step towards transactions and charges imposed on them. As of March 1, 2017, public sector banks will impose transaction charges on cash withdrawals and transactions in the bank.
India's second largest private sector bank, HDFC released an updated list of rules for its consumers.
According to HDFC bank's new rule, consumers will only be able to transact cash (both withdrawal and deposit) four times a month. From the fifth transaction, consumers will have to pay Rs 150 as transaction charge. On top of that, there will be cess and ta additional.
While a transaction of Rs 25,000 from a non-home branch won't cost you a penny, anything above Rs 25,000 will be charged Rs 5 per thousand or a minimal amount of Rs 150 once and for all. The tax and cess will be applicable on this amount as well.
At a home branch, if the cumulative cash (deposit and withdrawal) exceed Rs 2 lakh, a transaction charge of Rs 5 per thousand rupees or Rs 150 (plus tax and cess) will be levied.
According to HDFC, there will be no charge or tax for minors and senior citizens up to an amount of Rs 25,000 per day.
Third party transactions above Rs 25,000 won't be allowed. Only a transaction up to Rs 25,000 with Rs 150 charge will be accepted.
However, the cash handling charges imposed after the note ban have been removed completely.

Source:IndiaToday

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Sunday, 13 November 2016

19:00

Bank Officials and ATM Managers across the country work Round-the-Clock

Bank Officials and ATM Managers across the country work Round-the-Clock

Leaves cancelled, 7 am to 1 pm shifts: Bank officials rise up to the challenge

Rahul Patil, a State Bank of Patiala assistant manager, was to attend his best friend’s wedding this weekend. Call of duty forced him to announce his inability to attend the ceremony.
He was not the only one working on Sunday, a holiday. Bank officials and ATM managers across the country are working round-the-clock to help anxious people get new notes after the government scrapped the 500- and 1,000-rupee bills from November 9.
Bank officials’ leaves were cancelled and they were told to work on this Saturday and Sunday for a smooth transition from the old notes to the new, though people’s panic and rush have made the switch hardly “the little inconvenience” that it was supposed to be.
Rituraj Sinha, president of Cash Logistics Association of India and co-chairman at FICCI Private Security, said he made an emotional appeal to 35,000 staff members, “asking them to come to work with extra clothes and toothbrushes to do their duty towards the nation”.

The officials gave a spirited response to the call. They are trying their best, handling myriad teething problems and frayed tempers of people standing in long queues for hours.
“I leave home at 5am from Thane every day to reach office at 7am. I leave office well past midnight,” Siddesh Hardikar, cluster branch manager at ICICI bank’s Borivali East branch in Mumbai, described his routine after the government’s midweek demonetisation announcement.
“We have opened additional counters and separate queues for our own customers … they are more agitated,” he said.
Security guards and office staff are pitching in with water and biscuits for people in the queues.
A Punjab National Bank zonal manager in Mumbai said they are trying to explain to customers the urgency of the situation.
“It is difficult sometimes to handle an aggrieved customer. We have extra counters, separate for senior citizens and women,” he said.
State Bank of India chairman Arundhati Bhattacharya on Friday announced separate counters for those opening new bank accounts. “There is no need to panic. There is time till December 30,” she said.

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Monday, 24 October 2016

08:44

State Bank Of India advises customers to use own ATMs

State Bank Of India advises customers to use own ATMs

NK Bank, Kolkata, Oct 21 : Following a cyber security breach in the country's banking system, India's largest bank, the State Bank of India (SBI), has advised customers to use its own automatic teller machines (ATMs) for safe transactions and is looking to replace within ten days around six lakh debit cards which were blocked by it as a preventive measure, a senior SBI official said on Friday."We have set an internal target of seven to ten days for issuing the new debit cards to the customers whose cards have been blocked," said SBI Chief General Manager (Kolkata Circle) Partha Pratim Sengupta.

"We advise our customers to use SBI ATMs only at the moment for safe transactions," he said.

The lender on Wednesday said card network companies NPCI, Mastercard and Visa had informed various banks about a potential risk to some cards owing to a data breach.

"Accordingly, SBI has taken precautionary measures and blocked cards of certain customers identified by the networks. This is a proactive measure to protect our customers from any potential fraud once we came to know of some data breach outside our Bank," the bank said in a statement, adding that it was in the process of issuing new cards.

The malware-related security breach was reportedly detected in the non-SBI ATM network, following which the public sector lender blocked around six lakh debit cards.

An estimated 30,00,000-plus debit cards issued by various public or private banks are said to have been exposed to a potential risk of data breach.

The bank remains bullish in achieving a high growth in retail lending in Kolkata Circle during this festive season (October to December). "Our retail loan target during the festive season is Rs 1,000 crore. Last year the loan amount was around Rs 700 crore," Sengupta said.

The bank has been offering lower interest rates and zero processing fees on some of its retail products -- home loans, car loans, personal loans and education loans -- under its special financing scheme 'Hope Loans' during the festive season.

"For every loan sanctioned during this period, the bank will contribute a sum to selected NGOs working in the field of education, health, environment and shelter which will help a disadvantaged person's dreams come true," a statement said.

Sengupta said the bank has yet to decide what percentage of the loan amount would be donated to the NGOs.

Source:NewKerala 
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Thursday, 5 May 2016

08:24

Yes Bank cuts MCLR by 10 bps

Yes Bank cuts MCLR by 10 bps

Mid-sized private sector lender Yes Bank today cut its marginal cost of funds based lending rate (MCLR) by 0.10 per cent across tenors, reacting to similar moves by competition.

The city-headquartered lender's one year MCLR will now be 9.5 per cent as against the earlier 9.6 per cent, it said in a statement.

The rate cut across tenors has been 0.10 per cent, it added.

Its overnight rates -- generally the lowest -- were not immediately available.

The move comes a day after the country's largest lender SBI cut its MCLR by 0.05 per cent, under which its lowest offering came down to 9.15 per cent.

Other lenders, including Yes Bank's private sector rivals, have been regularly revising rates in order to keep up with competition since the introduction of the new system last month.

Yes Bank had last week guided toward an expansion of up to 0.20 per cent in margins during the fiscal despite the introduction of MCLR.

 Source:Banking Updates


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Friday, 8 January 2016

22:25

PSU bank strike: Operations hit partially

PSU bank strike: Operations hit partially 

NEW DELHI: Banking operations including cash transactions and cheque clearing were partially impacted today as a section of public sector bank employees went on a day- long nationwide strike to protest against the violation of bilateral settlement agreement by associate entities of SBI. 

The strike call was given by All India Bank Employees' Association (AIBEA), leading to a strong impact on the banks with its presence. Officers were not part of the strike. 

However, employees at private sector banks as also two state-owned SBI and IOB were not part of the strike. Staff at five associates of State Bank of India however participated in the strike. 

As precautionary measures, most of the banks had issued advisory to their customers saying they will take all steps necessary for smooth functioning at branches on the day of strike. 

The strike call was given on December 28 to protest violation of the bilateral settlement by five associate banks of the SBI and their attempt to force unilateral service conditions on the employees, AIBEA general secretary C H Venkatachalam had said. 

Five subsidiaries of SBI are State Bank of Travancore, State Bank of Mysore, State Bank of Patiala, State Bank of Hyderabad and State Bank of Bikaner and Jaipur. 


"Strike was trust upon about 3.50 lakh employees as the management did not yield to our request. It has resulted in inconvenience to customers," the AIBEA claimed. 

"We hope that the government and Indian Banks' Association will understand the genuine reasons behind our strike and intervene in the issue effectively to ensure adherence to legally binding bilateral settlement and resolve the demands of the employees," Venkatachalam said. 


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Friday, 2 October 2015

19:46

India’s third largest private sector bank, Axis bank, has revised its base rate to 9.50 per cent from 9.85 per cent p.a.

Axis Bank cuts base rate to 9.50%; Oriental Bank of Commerce cuts base rate by 20 basis points to 9.7%

India’s third largest private sector bank, Aix bank, has revised its base rate to 9.50 per cent from 9.85 per cent p.a.

The new rate will be with effect from October 5, 2015. Accordingly, the effective rate applicable to various fund based credit and credit limits which are linked to the Bank’s Base Rate will reduce by 35 basis points (bps),” Axis Bank said in a statement.

After RBI cut key policy rate by an unexpected 50 basis points (bps) on Wednesday, State Bank of India (by 40 bps to 9.30 per cent), Bank of India (25 bps to 9.70 per cent), Andhra Bank (by 25 bps to 9.75 per cent) and State Bank of Travancore (by 20 bps to 9.95 per cent) cut their base rates.

Oriental Bank of Commerce (OBC) has reduced its base rate to 9.7 per cent from 9.9 per cent. This revised rate comes into effect from today. Kolkata-based lender, UCO Bank, has said it will reduce the base rate by 25 basis points.

The base rate, which will come into effect from October 5, will be at 9.70 per cent, according to a notification to the bourses. Other banks are likely to follow suit.

In early September, HDFC Bank, second largest private lender, had already cut its base rate by 35 bps to 9.35 per cent. At present, SBI has the lowest base rate of 9.30 per cent. ICICI Bank, the largest private bank, has a base rate of 9.7 per cent.

Base rate or the minimum lending rate is the benchmark lending rate to which all loans are linked.

A reduction in base rate leads to shrinking of margins for banks. However, in the past few months, deposit rates have come down by 75-100 bps. And therefore, since the cost of funds for banks have fallen, the impact on margins due to a reduction of base rate will be limited, analysts point out.

For SBI, the impact on margins is likely to be in the tune of 10-12 bps.
Since January this year, the banking regulator has lowered its repo rate by 125 basis points. The RBI has been constantly nudging banks to pass on the rate reduction to loan borrowers.

Bankers held a view that an increase in bad loans had been putting pressure on their margins with increasingly the interest-earning assets slipping into non-performing assets. This, in turn, has deterred banks from cutting lending rates.

 Source :BankingUpdates
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Friday, 25 September 2015

09:20

IDFC Bank targets 15 million customers in five years

IDFC Bank targets 15 million customers in five years

New private sector lender IDFC Bank will flag off its operations on October 1, with 23 branches for corporate and rural customers. Starting with a predominant share of corporate banking business, IDFC's banking subsidiary expects to grow the business of Bharat banking, a rural banking unit, to Rs 15,000 crore in five years.

Its personal and business banking unit focusing on retail, small and medium enterprises (SMEs) and self-employed professionals, will start operations, in January 2016. Rajiv Lall, the bank's executive vice-chairman and managing director, said the aim is to grow the client base from the current 400 corporate customers to 15 million in the next five years, a bulk of whom will come from business and personal banking and Bharat banking. Bandhan Bank, which got a banking licence around the same time as IDFC, started operations in August.

IDFC Bank is aiming at 10-15 per cent net profit growth and will rely on technology for customer acquisition rather than open branches across India. IDFC Ltd posted a net profit of Rs 240.88 crore for the June quarter this year.

Lall said the economy was coming out of a very difficult period after the global financial crisis and amid stress on bank balance sheets. Over the last year, the economic environment in India has seen steady improvement and the bank would like to gain from this momentum.

The bank will have a balance sheet of Rs 75,000-80,000 crore initially. Out of this the loan book, mostly infrastructure advances, will be in the region of Rs 55,000 crore and the balance will comprise bonds, corporate bonds and investments. It will be compliant with the statutory liquidity ratio and cash reserve ratio norms from day one, he added.

Commercial and wholesale banking, headed by Ajay Mahajan, will have an overbearing share in the loan book as well as bottom-line contribution. "We were offering term loans till date as infra lender. Now as a bank, we will be in position to give working capital, guarantees and letters of credit. Five years down the line, the bank expects the corporate segment to have two-thirds share in the loan book," Lall said.

The business will have three clusters - corporate, treasury services and government business. It expects the government business to ensure a steady flow of fee income and float money.

Bharat banking, backed by strong technology as well as brick and mortar banking, will start with 15 branches in Madhya Pradesh. Though this is a thrust area, its share in loan book is expected to be small. The emphasis would be on reaching the maximum number of customers with less investment on physical infrastructure.

Personal and business banking will be the last to start operations as the bank will first like to fine-tune its technical and service backbone. This business will start from January 2016 and would aggressively reach out to self-employed middle class professionals like architects, wedding planners and caterers. They generally create the maximum job opportunities, Lall said.

Lall said feedback surveys done by the bank in the run-up to the launch showed "no one likes bankers as there is a widespread perception that bankers are product pushers and less of solution providers". This is where IDFC Bank will like to stand out in services and offering, Lall said.

 Source :Business Standard.
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