Page 9 - Banking Finance July 2017

BANK UPDATE

New Trading platform Bank of Maharashtra under RBI watch for high level
launched by the Federal of bad loans
Bank The Reserve Bank of India has placed restrictions on the Pune-headquartered
Bank of Maharashtra by placing it under a Prompt
Federal Bank launches "Selfie" a trad-
Corrective Action (PCA) scheme. With this, the to-
ing platformfor tal number of banks placed under RBI's watch has
its customers, gone up to six.
in association
with Geojit. Bank of Maharashtra on Saturday informed the
The platform is to provide its users stock exchanges that it has been told by RBI that
absolute control over their invest- it has been placed under PCA in view of high level of bad loans. According to the
ments with timely research inputs to bank, the RBI action will not have any material impact on the performance of
make sound investment decisions. the bank and will contribute towards improving internal controls. Others include
The tablet edition of Selfie for An- Central Bank of India, Dena Bank, IDBI Bank, Indian Overseas Bank and UCO
droid and IOS users is available in app Bank under PCA in view of their mounting non-performing assets (NPAs).
stores for download.
SBI cuts Home Loan rates
It enables users to trade directly from
charts, among others. The live port- State Bank of India (SBI) has cut interest rates on
folio of investments helps users to home loans above Rs 75 lakh by 10 basis points
arrive at quick decisions. (100bps = 1 percentage point) to 8.55% for sala-
ried women borrowers and 8.60% per annum for
PSBs plan to raise funds others. "Taking a cue from the recent RBI reduc-
through equity dilution tion in risk weightage on home loans, SBI is passing on the benefit to its custom-
ers," said Rajnish Kumar, MD, SBI.
Public Sector Banks (PSBs), including
SBI, Bank of Lockers' burglary at PNB, Modinagar
Baroda and
IDBI Bank, plan Punjab National Bank's Modinagar branch fell prey to burglars who had drilled a
to raise Rs 2 ft. hole in the strongroom wall and entered
58,000 crores through the opening they had made. 30 lockers
through equity dilution during the were emptied. Nobody really knows the exact value
of what they stole, but it could easily run into
current fiscal to meet Basel-III norms
and clean up their balance sheets. crores.
Leading the pack, SBI plans to raise The burglary was discovered around 9:45am on Monday when a bank staffer,
Rs 15,000 crore through share sale Anil Bhargav, and the head cashier, Ajay Kumar, opened the strongroom which
and expects this to complete by the has two security doors. The steel door of the strongroom can be opened with a
year-end, probably through a quali- set of two keys, kept in the custody of these officials, only when they are in-
fied institutional placement (QIP). serted together into the keyholes.
Besides, Bank of Baroda and Central "After opening the steel door, the officials were about to open the next door
Bank of India plans to raise Rs 6,000 which is an iron grille like those found in prisons. However, they noticed through
crores and Rs 65,000 crores from the grille that things had been scattered inside the strongroom. They also no-
capital markets, respectively. Orien- ticed that several lockers seemed to have been bro ken. They immediately called
tal Bank of Commerce and IDBI Bank up the police control room," assistant general manager S K Pancholi told.
have taken board's approval for rais-
ing Rs 5,000 crores each through Provisioning of Rs. 25K crores by Banks in this fiscal
equity dilution, while Mumbai-based Banks, especially PSBs, face cumulative provisioning of at least Rs 25,000 crore
Union Bank of India plans to Rs 4,950 this fiscal as they prepare to write down value of assets following RBI directing
crores during the current fiscal. them to take the top 12 bad loan accounts to bankruptcy courts.

BANKING FINANCE | JULY | 2017 | 9

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