Money & Banking
RBI to consider financial restructuring proposals of UCBs

The central bank would consider financial restructuring proposals submitted by UCBs, involving conversion of deposits into equity/IPDI, even if the networth of the bank does not become positive after such conversion of deposits, provided the depositors agree voluntarily for such conversion


Mumbai: The Reserve Bank of India (RBI) said it will consider the financial restructuring proposals of urban co-operative banks (UCBs) for conversion of deposits into equity even if the networth of the bank does not become positive, reports PTI.

 

The RBI considers financial restructuring proposals as an additional option for resolution of banks problem.

 

"...the Reserve Bank would...consider financial restructuring proposals submitted by UCBs, involving conversion of deposits into equity/IPDI, even if the networth of the bank does not become positive after such conversion of deposits, provided the depositors agree voluntarily for such conversion," RBI said in a notification.

 

Earlier, it was required that the proportion of deposits converted into equity/IPDI should be such that the net worth of the bank after reconstruction turns positive.

 

UCBs are required to conform to few norms for financial restructuring, including full protection of the interest of small depositors, conversion of deposits into equity or innovative perpetual debt instruments (IPDI) on depositors consent and non-redemption of shares until the bank achieves risk-weighted assets ratio (CRAR) of 9%, the notification said.

 

Also, post-restructuring, the management of the bank comes in the hands of a board of administrators consisting representatives of individual depositors and professional bankers to ensure proper implementation of reconstruction scheme including recovery of non-performing assets (NPAs).

 

Moreover, such banks have to maintain CRR/SLR on the restructured liabilities.

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Six more coal blocks to be cancelled; seven others to lose guarantee

Bhaskarpara allotted to Grasim Industries and Electrotherm; Dahegaon Markardhokra IV given to IST Steel & Power; North Dhadu allotted to Electrosteel Castings; Choritand Telaiyaallotted to Rungta Mines and Gondkhari block allotted to Maharashtra Seamless were among the blocks whose deallocation was approved


New Delhi: Stepping up action, the Indian government on Wednesday decided to cancel six more coal blocks allocated to private companies and deduct bank guarantees of seven others for failing to develop the mines within the time-frame, reports PTI.

 

"Coal Minister Sriprakash Jaiswal approved the IMG's recommendation to de-allocate six more mines and deduct bank guarantees of seven. Earlier, the government has already announced cancelling licences of seven mines and deducting bank guarantees of seven others," sources told PTI.

 

Bhaskarpara allotted to Grasim Industries and Electrotherm; Dahegaon Markardhokra IV given to IST Steel & Power; North Dhadu allotted to Electrosteel Castings; Choritand Telaiyaallotted to Rungta Mines and Gondkhari block allotted to Maharashtra Seamless were among the blocks whose deallocation was approved today, the sources said.

 

The seven blocks approved for deduction of bank guarantees include Seregarha block given jointly to the world's largest steel producer ArcelorMittal and GVK Power; Moitra block allotted to Jayaswal Neco; Dumri block given to Neelachal Iron & Steel and Durgapur II/ Sariya block allotted to DB Power, the sources said.

 

With this, the government has accepted all the recommendations by an Inter-Ministerial Group (IMG), which had recommended de-allocation of 13 mines and deduction of bank guarantees of 14 allottees after scrutinising 31 coal blocks allotted to private companies.

 

Among the de-allocated blocks, Dahegaon-Makardhokra IV block was given to IST Steel and Power, along with cement firms Gujarat Ambuja and Lafarge India, in June 2009. The block has a total of 48.84 million tonnes (MT) of extractable reserves.

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Central Bank launches slew of credit and debit cards

Central Bank launched three debit cards, two credit cards and a student prepaid card for disbursement of scholarship

Mumbai: Central Bank of India has launched a slew of cards in both debit and credit categories on the MasterCard platform apart from other innovative banking solutions, reports PTI.

 

The city-based state-run lender had introduced credit cards to the country way back in 1980.

 

It yesterday launched three debit cards (international shopping, platinum and a NexGen card for the 10-17 year-olds), two credit cards (world credit card, a co-branded one with the Indian Dental Association) and a student prepaid card for disbursement of scholarship in Chhattisgarh in the presence of Bank Chairman and Managing Director M V Tankasale.

 

The world credit card comes with a bouquet of features like free air ticket, zero surcharge on petrol filling, loyalty points for every Rs 100 spent, airport lounge access, insurance cover and many more offers and value additions.

 

The bank also introduced on-line deposit products for net banking customers. Its debit card customers can now book railway tickets through the IRCTC platform.

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