The government today approved restructuring of state-owned United Bank of India's capital, which includes reduction in paid-up equity by over 80 per cent to improve its financial parameters.

Cabinet approves cap restructuring of United Bank, infuses Rs 800 cr

Press Trust of India

The banking institutions issuing loans to the corporate professionals and students pursuing professional courses have received a setback due to the massive lay offs and declining placements. These &lsquo;professionals&rsquo; have emerged as the prime defaulter in the view of ongoing slowdown during the last six months.

Slowdown blues: Professionals top list of defaulters

Business Standard

Mangalore-headquartered public sector lender Corporation Bank is proposing to raise Rs 400 crore by issuing lower Tier-II bonds on private placement basis with greenshoe option of Rs 100 crore. The bonds will be in the form unsecured redeemable non-convertible subordinated in the nature of promissory notes.

Corporation Bank to raise Rs 400 cr via bond issue

The Indian rupee today plunged by 60 paise to end below 51 to the greenback after a gap of six trading days, at 51.18/19, following a sharp decline in equity markets amid month-end dollar demand.

Re plunges 60 paise to end at 51.18/19 vs dollar

Kolkata-based Allahabad Bank has entered into an agreement with UAE Exchange &amp; Financial Services for inward money transfer services.

Allahabad Bank partners with UAE firm for remittance facility

Public sector lender Oriental Bank of Commerce may cut interest rates for deposits of one year by 50 basis points tomorrow.

OBC likely to cut deposit rates by 50 bps

The country's second largest private life insurer, SBI Life Insurance, today projected its new premium growth to be around 30 per cent in FY 09-10, a little higher than the current fiscal.

SBI Life eyes 30% growth in new premium next fiscal

The Export-Import Bank of China (China Exim) and ICICI Bank, have signed a loan agreement for USD 98-million under the two-step buyer-credit (export credit) arrangement.

China Exim provides $98 mn buyers credit loan to ICICI Bank

While Union Bank has cut its PLR from 12.50 per cent to 12 per cent, Dena Bank has slashed its rate from 12.75 per cent to 12.50 per cent, the banks said in separate statements here.

UBI, Dena Bank slash lending rates

Bank of America Corp plans to increase some investment bankers&rsquo; salaries by as much as 70 per cent following the takeover earlier this year of Merrill Lynch &amp; Co, people familiar with the proposal said.

BofA may increase  investment banker salaries by 70%

In an effort to encourage entry of foreign institutional investors (FIIs) in India, the Reserve Bank of India (RBI) Committee on Financial Sector Assessment (CFSA) today said that since FIIs maintain identity records of the entity they issue participatory notes (PNs) to and capital market regulator Securities and Exchange Board of India (Sebi) can obtain this information from them, there should not be any cause for concern from the &lsquo;Know Your Customer (KYC)&rsquo; angle raised by regulators in the recent past.

Easier PN norms, more independence for Sebi

Volatility in exchange rates and heightened risk of defaults have forced Indian banks to start charging margins for booking forward contracts in the over-the-counter (OTC) currency derivatives market.

Banks levy margin on OTC market forward contracts

Despite the negative impact of the downturn on the growth of credit, the public sector Oriental Bank of Commerce, is targeting to achieve a total business of Rs 2000 crore in Orissa during 2009-10. This includes deposits of Rs 1200 crore and advances of Rs 800 crore.

Oriental Bank of Commerce targets Rs2000cr

The Visakhapatnam Cooperative Bank is planning to open a couple of more branches in the state during the next financial year including in Hyderabad. The bank currently has 16 branches in Visakhapatnam, Vizianagaram, Srikakualam and East Godavari districts.

Vizag co-op bank to open more branches

Report also suggests gradual foreign investment in the sector.

'Govt should lower bank stakes below 51%'

Report of the committee on financial sector assessment.

No stress on banks, but exposure on off-balance risks a concern

The financial sector assessment report, prepared by the Reserve Bank of India (RBI) and the Central Government, has favoured the merger of public sector banks (PSBs) having a government holding bordering on 51 per cent with those having a much higher state-holding to ensure that their business growth does not suffer due to capital constraints.

Mergers of public sector banks favoured

The committee on financial sector assessment has proposed the setting up of one or two government-sponsored secondary mortgage vehicles (with private management and ownership participation) such as Fannie Mae and Freddie Mac in the US to develop a healthy mortgage market.

Govt mortgage vehicles on anvil

The committee on financial sector assessment (CFSA), headed by Reserve Bank of India (RBI) Deputy Governor Rakesh Mohan, has favoured a process of gradual opening up of the sector to for foreign banks.

Gradual opening up of sector to foreign banks

The Indian rupee appreciated by 18 paise against the US currency in early trade today on expectations of fresh capital inflows by foreign funds as domestic bourses may open in positive zone.

Rupee recovers, rises 18 paise vs $

SBI Mutual Funds, the joint venture between State Bank of India and Societe General AMC (France), plans to launch sectoral-specific funds in the near future, a company official said.

SBI MF to launch sectoral-specific funds

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