UCO bank has finally short-listed three foreign partners for its proposed general insurance business.
UCO Bank Chairman and Managing Director Mr S K Goel stated, “We have short-listed 3 foreign player for the proposed venture and awaiting RBI approval for moving in the non-life business”.
In the proposed general insurance business the bank will have the major hold of stakes of 30 per cent whereas the foreign partners will have 26 per cent stake as per the present regulatory structure, he stated. The remaining shares will be taken by 2-3 domestic partners including public sector or private sector banks.
He further added that 7 domestic companies have shown interest to become partners in the venture. UCO Bank will be responsible for promoting and distribution in the business, while foreign and private partners will be responsible for the domain expertise.
Mr Goel said, “as soon as we get RBI approval we will sign Shareholders' Agreement and apply to IRDA for license.” Regarding investment required, Mr Goel said, the paid-up capital of the venture would be about Rs 150 crore. The bank will be investing around Rs 45 crore for the promotion of the proposed general insurance company.
Monday, October 26, 2009
Wednesday, October 7, 2009
Indian Banks venturing into non-life insurance biz
Most of the Indian banks in collaboration with foreign players are planning to make venture in the non-life insurance business. The public sector banks UCO Bank, Union Bank of India and Corporation Bank have announced their plans of setting up non-life insurance companies. According to industry consultants at present this is a trend among the state-controlled as well as private banks to expand their business in this area.
SK Goel, Chairman and Managing Director, UCO Bank stated, “We will hold a 26 per cent stake in a consortium of five players. Six foreign players and four to five domestic banks have evinced an interest in tying up with us. By month end we will finalize the domestic partners and next month call for bidding from the foreign players.”
As per the information given by the sources close to the development, besides other companies Travelers of United States, Liberty Mutual of Boston (which ranks 86th in the Fortune 500 titans list in the US), Berkshire Hathaway (the holding company of legendary investor Warren Buffet), Royal Bank of Scotland and Credit Agricole, might be invited for the bid.
In this business banks are aided by prospects of high valuation whereas the investment is relatively low.
“The order of capital is not as substantial as required in a life insurance business,” informed an industry analyst. He told that ICICI Lombard required only Rs. 300 crore over an eight-year period, while ICICI Prudential Life required Rs. 5,000 crore.
Private sector ICICI Bank, HDFC and Karnataka bank are already ventured in non-life insurance biz, as do public sector State Bank of India and Allahabad Bank.
SK Goel, Chairman and Managing Director, UCO Bank stated, “We will hold a 26 per cent stake in a consortium of five players. Six foreign players and four to five domestic banks have evinced an interest in tying up with us. By month end we will finalize the domestic partners and next month call for bidding from the foreign players.”
As per the information given by the sources close to the development, besides other companies Travelers of United States, Liberty Mutual of Boston (which ranks 86th in the Fortune 500 titans list in the US), Berkshire Hathaway (the holding company of legendary investor Warren Buffet), Royal Bank of Scotland and Credit Agricole, might be invited for the bid.
In this business banks are aided by prospects of high valuation whereas the investment is relatively low.
“The order of capital is not as substantial as required in a life insurance business,” informed an industry analyst. He told that ICICI Lombard required only Rs. 300 crore over an eight-year period, while ICICI Prudential Life required Rs. 5,000 crore.
Private sector ICICI Bank, HDFC and Karnataka bank are already ventured in non-life insurance biz, as do public sector State Bank of India and Allahabad Bank.
Thursday, July 2, 2009
Banks considering slashing interest rates
UCO Bank, Kolkata based lender has plans to reduce deposit rates by up to a 100 basis points (bps) while public sector banks are trying hard to pressurize the finance minister for slash in postal savings rate as a predecessor to lowering deposit rates. While from July Allahabad Bank will be slashing its benchmark prime lending rate (BPLR) by 25 bps to 12%.
On Monday UCO Bank chairman and managing director SK Goel informed, "We are likely to cut deposit rates by 50-100 bps. A final decision to this end will be taken in the first week of July."
Speaking on the sidelines of a banking conclave organized by Ficci’s eastern regional council Mr Goel, said bank’s interest rate margins is under pressure at 1.95% for the quarter to June. Since March 2009 bank BPLR has been at 12.5%.
In his speech at the conclave Mr Goel informed, "Banks need to reduce deposit rates before lowering lending rates. But as long as small savings rates with post offices continue to be at 8%, it would be difficult for banks to cut rates significantly. We’ve requested the finance minister to look into this aspect".
However UCO is hoping of 15-20% growth in profitability for the June quarter. Mr Goel said, "We are expecting higher profits based on improved treasury income, non-interest income and recovery of bad loans," and added that the bank registered a treasury income of around Rs 105 crore, as against Rs 60 crore in the corresponding quarter to June 2008. Its net profit for the period between April and June 2008 stood at Rs 133.44 crore.
On Monday UCO Bank chairman and managing director SK Goel informed, "We are likely to cut deposit rates by 50-100 bps. A final decision to this end will be taken in the first week of July."
Speaking on the sidelines of a banking conclave organized by Ficci’s eastern regional council Mr Goel, said bank’s interest rate margins is under pressure at 1.95% for the quarter to June. Since March 2009 bank BPLR has been at 12.5%.
In his speech at the conclave Mr Goel informed, "Banks need to reduce deposit rates before lowering lending rates. But as long as small savings rates with post offices continue to be at 8%, it would be difficult for banks to cut rates significantly. We’ve requested the finance minister to look into this aspect".
However UCO is hoping of 15-20% growth in profitability for the June quarter. Mr Goel said, "We are expecting higher profits based on improved treasury income, non-interest income and recovery of bad loans," and added that the bank registered a treasury income of around Rs 105 crore, as against Rs 60 crore in the corresponding quarter to June 2008. Its net profit for the period between April and June 2008 stood at Rs 133.44 crore.
Wednesday, April 22, 2009
UCO Bank general insurance JV joint venture to get finalized by September
State-run UCO Bank is working on plans to make its venture into general insurance business. According to top official details will be finalized by September, including the selection of partners.
UCO Bank Chairman and Managing Director S K Goel told PTI, "We plan to enter general insurance by launching a joint venture. We hope to finalize the JV structure by September".
Mr. Goel informed, "A final picture about the company will emerge in 2-3 months. We are currently in talks with potential players to set up the joint venture".
He added in addition to the government lender, there will three more partners of JV -- a state-owned bank, a foreign bank and a private general insurance company.
He informed that UCO Bank and the other state-owned lender will hold a joint shareholding of 49 per cent. The official said UCO Bank's shareholding will probably be in the range of 28-30 per cent in the JV.
Whereas the private insurer and foreign bank jointly will have a shareholding of 51 per cent in the subsidiary, Mr. Goel told, without disclosing the identity of players.
However several of the leading state-owned lenders, such as State Bank of India and Union Bank of India, are already having insurance subsidiaries in partnership with global players.
Goel added UCO Bank will be proceeding as a promoter and distribution partner in the business, while it is expecting the domain expertise from its foreign and private partners.
He informed the Kolkata-based lender for the meantime has decided to put on hold its plans to launch a financial services subsidiary seeing the adverse market conditions.
"We had plans to launch a financial services subsidiary. But, with the down turn in financial markets and the fact that credibility of rating have suffered in the recent past, we have decided to put the plan on hold."
Earlier the bank had plans of launching the subsidiary with a view to offer a one-stop-shop for financial services such as sale of insurance and mutual fund products, loan syndication and corporate advisory services.
UCO Bank was planning to launch the financial services unit in association with a foreign partner. In this UCO Bank was to hold a 49 per cent stake in the proposed company and the foreign partner 26 per cent.
UCO Bank Chairman and Managing Director S K Goel told PTI, "We plan to enter general insurance by launching a joint venture. We hope to finalize the JV structure by September".
Mr. Goel informed, "A final picture about the company will emerge in 2-3 months. We are currently in talks with potential players to set up the joint venture".
He added in addition to the government lender, there will three more partners of JV -- a state-owned bank, a foreign bank and a private general insurance company.
He informed that UCO Bank and the other state-owned lender will hold a joint shareholding of 49 per cent. The official said UCO Bank's shareholding will probably be in the range of 28-30 per cent in the JV.
Whereas the private insurer and foreign bank jointly will have a shareholding of 51 per cent in the subsidiary, Mr. Goel told, without disclosing the identity of players.
However several of the leading state-owned lenders, such as State Bank of India and Union Bank of India, are already having insurance subsidiaries in partnership with global players.
Goel added UCO Bank will be proceeding as a promoter and distribution partner in the business, while it is expecting the domain expertise from its foreign and private partners.
He informed the Kolkata-based lender for the meantime has decided to put on hold its plans to launch a financial services subsidiary seeing the adverse market conditions.
"We had plans to launch a financial services subsidiary. But, with the down turn in financial markets and the fact that credibility of rating have suffered in the recent past, we have decided to put the plan on hold."
Earlier the bank had plans of launching the subsidiary with a view to offer a one-stop-shop for financial services such as sale of insurance and mutual fund products, loan syndication and corporate advisory services.
UCO Bank was planning to launch the financial services unit in association with a foreign partner. In this UCO Bank was to hold a 49 per cent stake in the proposed company and the foreign partner 26 per cent.
Wednesday, March 4, 2009
UCO bank launched unique scheme for defaulting small borrowers
The UCO bank has launched a unique scheme in Orissa. The scheme called a compromise scheme has been launched for the defaulting small borrowers who have outstanding less than Rs 25,000 in Orissa.
The loans which have been declared as non-performing assets (NPAs), under this scheme those can be settled by paying 10 to 50 percent of the outstanding amount.
N Sambasiva Rao, zonal manager (Bhubaneswar zone), UCO Bank told that the compromise amount will be according to the period for which the account was in non-performing stage.
Speaking to the media person he told, UCO Bank is having 184 branches and three zones in the state. From these 68 branches are under the administrative control of Bhubaneswar zone. Around 4013 NPA account holders having a loan outstanding of Rs 3.94 crore will be able to avail the benefit of the scheme. The scheme will continue till the end of March 2009.
He added the zone is having 68 branches out of which 28 branches have already been converted to core banking solutions (CBS) platform. The remaining branches will be converted to the new platform before March 2010. Meanwhile real time gross settlement (RTGS) facility is being provided in 14 branches of the zone, and the process is going on of adding one more branch in Raygada before the end of the current fiscal.
Speaking about the business achievement, Sambasiva Rao told, the total business target for the zone was set to Rs 3672 crore by March 2009 and already it has achieved a business of Rs 3132 crore and sees no intricacy in achieving the target.
In the current fiscal, the zone has provided loans amounting to Rs 1080 crore by February 6 including Rs 108 crore to the small and medium enterprises in the state. The loans given to the agriculture sector were of Rs 360 crore which is about 33.33 percent of the total loans given by the bank during the current fiscal.
Tuesday, February 17, 2009
Banks probably cut interest rates by 200 bps or 2%
In the meeting with acting finance minister Pranab Mukherjee country’s large public sector banks chairman gave an indication that banks might further cut interest rate by up to 200 basis points or 2 percentage points depending up on the situation.
State Bank of India (SBI), Punjab National Bank (PNB), UCO Bank and the Oriental Bank of Commerce (OBC) are few of the banks which see the possibility of a further rate cut, given the cost of funds and inflation come down.
Finance secretary Arum Ramanathan also notified that lending rates might come down further as there has been control in deposit rates.
On the other hand Mr Mukherjee, said that there is a need to ensure encourage growth of labor and growth intensive sectors such as infrastructure and real estate to help the country successfully wade through the present global economic crisis.
"We must support the development of those sections, which will immediately boost growth and throw up employment opportunities. In view of contracting global demand, we have to focus on development of domestic demand by primarily stimulating demand in the rural areas and in highly labor-intensive sectors," he said after his first meeting with the chief executive of public sector banks.
Mr Mukherjee held the meeting with the bankers in the background of the third quarter review of the annual monetary policy of the country's central bank -the Reserve Bank of India (RBI). The RBI, in its third quarter review, had stated that there is further scope of rate cuts by the commercial banks as the central bank had taken enough steps to bring down the rates and banks are not passing on the entire benefit to the customers.
After the RBI's suggestion country's second largest bank PNB had announced cut in the prime lending rates by 50 basis points bringing it down to 11.5% -the lowest among all banks. While SBI, announced that it would offer housing loan to 8% and freeze it for one year.
State Bank of India (SBI) chairman O P Bhatt said that the bank is looking towards the possibility of a further rate cut. "There is thinking (on the rate cut)," he said before the meeting with the finance minister. However he did not revealed on how much the rate cut could be.
Earlier SBI had reduced the benchmark PLR by 75 basis points to 12.25 per cent with effect from January 1. Mr Bhatt also said that the large and medium corporate could add up to the non performing assets (NPA) and the bank was keeping a close eye on that.
PNB chairman K C Chakrabarty notified that the bank is open to reduce the lending rates provided the cost of funds comes down further. He, however, said that in the meeting discussion on interest rate was held between FM and the bankers.
UCO Bank chairman S K Goel said that there is possibility for 100 to 200 basis points reduction in interest rates.
State Bank of India (SBI), Punjab National Bank (PNB), UCO Bank and the Oriental Bank of Commerce (OBC) are few of the banks which see the possibility of a further rate cut, given the cost of funds and inflation come down.
Finance secretary Arum Ramanathan also notified that lending rates might come down further as there has been control in deposit rates.
On the other hand Mr Mukherjee, said that there is a need to ensure encourage growth of labor and growth intensive sectors such as infrastructure and real estate to help the country successfully wade through the present global economic crisis.
"We must support the development of those sections, which will immediately boost growth and throw up employment opportunities. In view of contracting global demand, we have to focus on development of domestic demand by primarily stimulating demand in the rural areas and in highly labor-intensive sectors," he said after his first meeting with the chief executive of public sector banks.
Mr Mukherjee held the meeting with the bankers in the background of the third quarter review of the annual monetary policy of the country's central bank -the Reserve Bank of India (RBI). The RBI, in its third quarter review, had stated that there is further scope of rate cuts by the commercial banks as the central bank had taken enough steps to bring down the rates and banks are not passing on the entire benefit to the customers.
After the RBI's suggestion country's second largest bank PNB had announced cut in the prime lending rates by 50 basis points bringing it down to 11.5% -the lowest among all banks. While SBI, announced that it would offer housing loan to 8% and freeze it for one year.
State Bank of India (SBI) chairman O P Bhatt said that the bank is looking towards the possibility of a further rate cut. "There is thinking (on the rate cut)," he said before the meeting with the finance minister. However he did not revealed on how much the rate cut could be.
Earlier SBI had reduced the benchmark PLR by 75 basis points to 12.25 per cent with effect from January 1. Mr Bhatt also said that the large and medium corporate could add up to the non performing assets (NPA) and the bank was keeping a close eye on that.
PNB chairman K C Chakrabarty notified that the bank is open to reduce the lending rates provided the cost of funds comes down further. He, however, said that in the meeting discussion on interest rate was held between FM and the bankers.
UCO Bank chairman S K Goel said that there is possibility for 100 to 200 basis points reduction in interest rates.
Thursday, January 22, 2009
J&K two new branches opened
The Jammu & Kashmir Bank expanded its branch network by opening two branches in
President, Jammu Central Zone Madan Gupta inaugurated both the branches. Speaking at the occasion Vice President, Jammu Central Zone said in quest of the bank’s objective of ‘serving to empower’ they will be offering a bunch of world class banking products and services to the masses at both the locations which will soon be brought under CBS system where facilities like online banking, RTGS, NEFT, Internet Banking, mobile banking and e-banking will be offered.
He said that the bank’s aim will not only strict to providing financial solutions to the peoples problems, but also to revolutionize the lot of the masses, to bring economic development to the state and to assist in the process of employment generation. He stated to the gathering that with the opening up of these two branches, the total number of bank’s branches has increased to 573.
Subscribe to:
Posts (Atom)