Indian Banks

Industrial houses and companies seeking banking licences will have their work cut out, as the Reserve Bank of India (RBI) has mandated new banks to open a fourth of their branches in unbanked rural centres.

While a recent circular issued by the central bank directed existing banks to open 25 per cent of their new branches in rural areas, industry analysts said the task would be more challenging for the new entrants and the time taken for them to turn profitable may be extended.

“Generating business from branches in unbanked areas may be a challenge for new banks. They would have to work out cost-effective ways to open branches in rural areas,” said a senior official of a large Mumbai-based public sector bank.

The new banks may opt to offer basic banking services in rural areas, at least in the initial period, to keep their costs low, even as they have to provide full-banking services in metros and urban centres because of competition, he said.

In its draft guidelines on new bank licensing, RBI said business models for new banks must include their financial inclusion plans. The models should be “realistic and viable” and any deviation from the stated plan after securing the licence would attract penalties like restriction in the banks’ expansion programmes or a change in management.

According to the draft norms, new banks would have to open 25 per cent of their branches in unbanked areas with a population of up to 9,999, according to the 2001 census. This would avoid over-concentration of their branches in cities, which already have adequate banking presence.

“The proposal to set up 25 per cent of branches in rural centres appears challenging. But if we look at other emerging markets and African countries, this model has been implemented through product innovation and the use of technology. So, even if it looks difficult, it is not impossible. If it is done properly, it would supplement the balance sheet strength of new banks,” said Viren H Mehta, director, Ernst & Young.

The new banks have to invest in ensuring connectivity between the urban and rural branches, since they have to operate on the core banking solution (CBS) platform from the beginning. Bankers said existing lenders currently use CBS or VSAT in areas where there are connectivity concerns. RBI also said the new banks should comply with priority sector lending targets and sub-targets that are applicable to existing domestic banks.

(BS)

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Phone Banking Officers – Domestic and International Process

Description: The incumbent is responsible for managing customer queries / complaints in voice process (inbound & outbound).

Location: Thane, Hyderabad

Key Deliverables:

1. Handle and resolve customer complaints/ queries over phone.
2. Provide customers with relevant product and service information.
3. Cross sell new product and service opportunities to customers over phone.
4. Provide feedback to the team leaders about product / process.

Click here to apply

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Central Bank of India, a leading Public Sector Bank, with Pan India Branch Network of more than 3800 branches, with total business of more than 3,11,000 Crores and driven by talented workforce of 34000 + employees, is looking for retired bank officers in scale III and above, having experience of working in any public sector bank/SBI (i.e. our Bank/any other Public Sector Bank/State Bank of India)   and with relevant expertise, for recruitment on contract as In-charges for its RSETIs and FLCCs already opened and to be opened. The list of RSETIs and FLCCs is attached.

Eligible candidates have to submit their applications in the given format (Annexure A).

Last date for receipt of application is 10th Sept 2011. No applications shall be entertained beyond the stipulated date. Incomplete applications will be rejected.

Address the application, Superscribing “Application for the post of Recruitment as Incharge of RSETI/FLCC on contract” to

Zonal Manager, Central Bank of India,

Oriental Building,2nd Floor,

Kamptee Road,

Nagpur – 440 001

For detailed information click here:

https://www.centralbankofindia.co.in/upload/Ann%20II_Nagpur.pdf

Popularity: 1% [?]

Central Bank of India (CBI), a leading Public Sector Bank is looking for retired bank officers in scale III and above, having experience of working in any public sector bank/SBI (i.e. our Bank/any other Public Sector Bank/State Bank of India) and with relevant expertise, for recruitment on contract as Incharges for its RSETIs and FLCCs already opened and to be opened.

How to Apply: Eligible candidates have to submit their applications in the prescribed format. Last date for receipt of application is 03.09.2011. No applications shall be entertained beyond the stipulated date.

Address the application, super scribing “Application for the post of Recruitment as In charge of RSETI/FLCC on contract” to “Zonal Manager, Central Bank of India, Pawapuri Vihar Bhagwanpur Chowk Muzaffarpur PIN- 842001.”

For Detailed Information:  https://www.centralbankofindia.co.in/upload/RECRUITMENT_ZOMUZ.pdf

Popularity: 1% [?]

After implementing the move to split the posts of chairmen and chief executive officers (CEOs) in private banks in 2007, the Reserve Bank of India (RBI) is now considering the same step for public sector banks.

At a banking seminar organised by the Federation of Indian Chambers of Commerce and Industry and the Indian Banks’ Association here on Tuesday, RBI Governor D Subbarao, said the central bank would discuss the issue with the government. However, as the government has a majority stake in public sector banks, Subbarao said it was important for the central bank to know to what extent it could enforce the “strict eligibility criteria” for the positions of chairmen of the boards of state-owned banks.

“An important criterion for deciding this would be to what extent we would be able to frame and enforce strict eligibility criteria for the position of the chairman of the board of a public sector bank,” Subbarao said, adding RBI’s experience in the case of private sector banks was positive.

“Given our own positive experience, as well as the global endorsement for this position, the question is whether we should extend the principle of separation of the posts of chairman of the board and the CEO to public sector banks as well,” he said.

Following the recommendations by the Ganguly committee, RBI had implemented the splitting of the posts of chairmen and managing directors, a move aimed at ensuring more focus and vision in the functioning of banks’ senior management and providing banks with effective checks and balances.

The Basel Committee on Banking Supervision had also included the Ganguly panel’s recommendations in its document titled ‘Principles for Enhancing Corporate Governance’, published last year.

“In terms of splitting the posts of chairman and CEO, it needs more contemplation on the appointment of a chairman. As of now, the government selects the CEO and if shareholders select the chairman, even then the government is the majority shareholder,” said State Bank of India Chairman Pratip Chaudhuri, when asked about what he felt about RBI’s plan.

Bankers said in order for the strategy to be successful, there was a need to clearly define the roles of the two posts. “The separation in roles has worked fairly well in many cases. I’ve seen that happening in a couple of boards in which I’m a member. I think the separation would work only if the roles are clearly defined,” said Naina Lal Kidwai, country head (India) and director (Asia Pacific), HSBC.

(BS)

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Dena Bank, A Premier Nationalized Bank (A Government of IndiaEnterprise) invites application for the post of Deputy General Managers and Assistant General Managers.

Application Fee: Rs.50/-(Only Postal Charges) for SC/ST/PWD Candidates, Rs.400/- for all other candidates  (including OBC/Ex-Servicemen).

How To Apply: Candidates are required to apply on-line through website www.denabank.com. No other means/mode of application will be accepted. Application link on website will be open from 12.08.2011 to 29.08.2011.

For Detailed Information:  http://www.denabank.com//uploads/files/1313126746947-Recruitment%20Ad.pdf

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Andhra Bank, Hyderabad invites applications from talented Sportspersons for their Men’s Team in Cricket & Kabaddi for appointment in Officer / Clerical / Sub-staff Cadre.  Only Indian Citizens are eligible for appointment under this Scheme.

Number of Vacancies:

Post Names:

Application Fee: Officers – Rs.400/-, Clerks – Rs.300/-, SC/ST Candidates only postage  charges of Rs.  50 must be paid along with the application.

How To Apply: Application should be submitted only in the prescribed pro-forma. Completed application with all particulars regarding educational qualification and Sports Achievements supported by relevant Certificates  and be sent in a separate cover superscribed “RECRUITMENT OF SPORTSPERSONS” to be following address so as to reach on or before 27th August, 2011.

Deputy General Manager(HR)
Human Resources  Department
Andhra Bank, Head Office
Dr Pattabhi Bhavan, Saifabad
Hyderabad – 500 004 (AP).

For Detailed Advertisement:  http://andhrabank.in/UserFiles/File/SportsAdvt2011.pdf

Popularity: 1% [?]

The growth in bank advances continued to decline, owing to a rise in lending rates. Along with corporate credit, bankers say there is a slowdown in retail credit as well.

According to recent data from the Reserve Bank of India (RBI), credit growth declined to 18.5 per cent on an annual basis as on July 29, compared with 19.33 per cent a fortnight before. Bank advances fell by Rs 9,000 crore over the fortnight ended July 29.

“The slowdown is seen in both retail and corporate credit demand. Normally, by this time, there is some pick-up in demand after a slow first quarter. But this year, the pick-up has not happened,” said P Sitaram, chief financial officer, IDBI Bank. He added other than high interest rates, companies are apprehensive about capital investments because of uncertainties in global economies. He expects the sluggish credit demand to persist in the second quarter as well.

Most banks have raised lending rates by 25-75 basis points in response to the policy rate rise of 50 basis points by RBI last month. To fight inflation, the central bank has raised policy rates by 11 times in the last 16 months. The base rates of banks currently range between 9.5 per cent and 10.75 per cent. Bank deposits continue to attract funds, owing to the high interest rates. RBI data shows bank deposits rose by Rs 64,000 crore in the fortnight ended July 29. However, on an annual basis, deposits rose 17.25 per cent, marginally lower than 17.85 per cent a fortnight ago.

According to data, demand deposits fell 8.8 per cent, compared to the last year, while time deposits showed a robust growth of 21 per cent in the same period. “There is pressure on current account and savings account growth, as the gap between interest rates on fixed deposits and savings rate increased. So, people are shifting their savings to higher yielding fixed deposits,” said Ashok Dutt, executive director, Dena Bank.

The interest on savings bank accounts currently stands at four per cent, while fixed deposits rates range between seven and eight per cent for six months and around 9.25 per cent for a year.

(BS)

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