Coins worth Rs 11 cr missing from SBI vaults; CBI takes over investigation

 

State Bank of India (SBI) had approached the Rajasthan High Court seeking a CBI probe into the matter as the missing amount was higher than Rs 3 crore, the threshold for seeking a probe by the agency.

The CBI has taken over the probe into the case of coins worth Rs 11 crore going missing from the vaults of the SBI branch in Mehandipur Balaji in Rajasthan, officials said on Monday.

State Bank of India (SBI) had approached the Rajasthan High Court seeking a CBI probe into the matter as the missing amount was higher than Rs 3 crore, the threshold for seeking a probe by the agency.

On the high court's directions, the CBI has taken over the FIR earlier registered by the Rajasthan Police.

The matter came to light after the SBI branch decided to carry out counting of money after a preliminary enquiry indicated discrepancy in the cash reserve at the bank.

Supreme Court to begin hearing SBI’s plea against Anil Ambani today

A banker said Ambani has objected to the SBI invoking personal guarantees under the Corporate Debtors Regulations, 2019

Indian lenders are keenly watching the outcome of a petition filed by State Bank of India (SBI) in the Supreme Court, which invoked the personal guarantees of Anil Ambani. The SC will hear the petition from Thursday. A banker said Ambani has objected to the SBI invoking personal guarantees under the Corporate Debtors Regulations, 2019. Till November, the IBC only covered Indian companies and not promoters. The new rules are applicable against the personal guarantors given to loans above Rs 1,000 crore or more by promoters.

“As Ambani’s will be the first case where personal guarantees have been invoked and is now in SC, it will decide the fate of 40 other top defaulters who were sent to NCLT since IBC law came into effect in 2017,” said a banker. In its petition to the SC, SBI said several promoters have moved the Delhi High Court after their personal guarantees have been invoked. The fate of dues worth Rs 45,000 crore, including to the Chinese banks, will be decided by the NCLT where the matter is still pending, and the personal guarantee matter will be heard by the top court.

On September 7, the SBI also invoked the personal guarantees of Sanjay Singal, promoter of Bhushan Power & Steel, as the company defaulted to loans worth Rs 48,000 crore. The debt resolution of the company is almost ready in the NCLT, with JSW Steel declared the highest bidder with a Rs 19,700-crore offer. The matter is currently pending in the SC after JSW Steel sought its intervention on not holding the firm liable for any criminal acts of the previous promoter. The SC will come out with its verdict on this issue this month.

SBI moots VRS for employees who don’t get promoted; will seek govt nod

Officers protest, say they were kept in dark; lenders say VRS is optional and that it won’t push employees to take it

The country’s largest bank, the State Bank of India, has mooted a voluntary retirement scheme (VRS) that gives an option to employees who do not get promoted beyond a certain level to move out. SBI executives said the framework (scheme) is developed and would be discussed with the government, its majority shareholder.

But they refused to elaborate on details. “This is a pyramid organisation. People who do not get to move beyond a certain level need to have option to move out. A certain respectful exit is required for them. The bank is not going to push employee to take VRS,” official said. After the Covid-19 outbreak, many employees with co-morbidities and other disorder had indicated they would prefer to stay home and avoid venturing out. Some weren’t inclined to move from one city to another. Such employees have expressed desire for such scheme, the official said.

ALSO READ: Old SBI hand Dinesh Khara faces new challenges amid Covid-19 pandemic

The another driver behind such an offer was the plan to reduce the average age of the organisation. That would help in renewal when people move up ladder faster and fresh talent is absorbed, the official said. Meanwhile, the All India State Bank Officer’s Association, in a communication to the chief development officer said the development was sudden and unwarranted, and had come as a shocker to the staff…

YES Bank AT1 bond write-down reflects distinct treatment for private banks

The bailout scheme requires YES Bank to write down about Rs 8,700 crore ($1.2 billion) of outstanding AT1s

Rating agency Standard and Poor’s on Monday said the decision to write-down YES Bank’s additional tier-1 (AT1) bonds highlights the distinction in India in treatment of instruments issued by public sector banks and those from private banks. This would create losses for asset managers and raise capital costs for issuers. A complete write-down would likely raise the risk premium that investors price into Indian hybrids, said S&P Global Ratings credit analyst Deepali Chhabria.

The bailout scheme requires YES Bank to write down about Rs 8,700 crore ($1.2 billion) of outstanding AT1s. AT1 investors have filed a petition in court against the RBI, YES Bank and the government. Media reports indicate that parties are exploring an out-of-court settlement, with AT1 investors clamoring for conversion of AT1s into equity.

Under the Basel III framework, AT1 instruments are designed to be loss-absorbing tool. The holders of the debt might not get repaid in the event of financial stress. Indian regulations state that such instruments should absorb losses while the bank remains a going concern. RBI’s decision to permanently write down YES Bank’s AT1s was in line with the agency’s view that these instruments will absorb losses at private sector banks, not public sector banks, rating agency said. Indian banks’ AT1s categorically provide that any capital infusion by the government of India into the issuer as the promoter in the normal course of business may not be construed as a point of non-viability trigger. The thinking goes that, since the government owns the bank, it has the right to inject capital into the lender…

Read More On YES Bank

YES Bank bondholders say will withdraw court plea if RBI accepts offer

Overall, more than Rs 8,000 crore of investments are exposed to YES Bank’s AT-1 bonds

Investors in YES Bank’s additional tier-1 (AT-1) bonds have written to Reserve Bank of India (RBI) that will accept the regulator’s offer where they can recover at least 20 per cent of investments and will subsequently withdraw petition from Bombay High Court (HC). The bondholders, in a letter sent through Axis Trustee Services, proposed that they be allotted a minimum 1,700 million shares in proportion to their current exposures.

As a result, the imputed value will work out to Rs 10 per share, which would approximately amount to Rs 1,700 crore. This will lead to “salvaging near-about 20 per cent of the principal outstanding,” the note said. Further, the bondholders have requested that the lock-in features, if any should be restricted upto 36 months in-line with the proposed new equity issuance of issuing bank. The trustee also pointed out that if the above terms are acceptable, the majority bondholders of AT-1 bonds — for which Axis Trustee is acting — shall not purse any further legal recourse and will instruct to withdraw the current petition. Axis Trustee has filed a petition at Bombay HC on behalf of the bondholders, seeking relief on RBI’s proposal for full writedown of YES Bank‘s AT-1 Bonds.

However, legal arguments are yet to begin in the court, with the matter still in pre-admission stage. Meanwhile, L&T and L&T Officers and Supervisory Staff Provident Fund also moved HC on Wednesday, seeking relief against RBI’s move. Overall, more than Rs 8,000 crore of investments are exposed to YES Bank’s AT-1 bonds.

Yes Bank depositors rush to ATMs but most unable to withdraw cash

In the residential area of suburban Chembur, one ATM was dispensing cash but had a long queue of anxious depositors

Harried Yes Bank depositors rushed to ATMs to withdraw cash but faced multitude of problems including closed down machines and long queues, after the RBI placed the bank under a moratorium, capping maximum withdrawals at Rs 50,000 per account for a month. Aggravating the problems of depositors were difficulties accessing the internet banking channel, which ensured that they can’t transfer the funds online as well.

At an ATM in south Mumbai’s Horniman Circle, with the RBI headquarters overlooking it, the shutters were pulled down. The guard on duty said the machine was non-operational before he reported to work late in the evening and he was ordered to shut it after 2200 hrs.

In the residential area of suburban Chembur, one ATM was dispensing cash but had a long queue ofanxious depositors. One man said it was still possible to withdraw up to Rs 50,000 in multiple transactions from the machine. However, another machine nearby had run dry within minutes of the RBI announcement, a woman said. The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender. For the next month, Yes Bank will led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.

Keep Reading: Yes Bank News

SBI account holder? Know new ATM withdrawal, loan rules kicking in today

SBI will use repo rate as the external benchmark to price all new floating-rate loans for MSMEs, housing and retail loans and credit for medium-sized enterprises from today

Starting today (October 1), State Bank of India has revised its service charges and also adopted the repo rate as the external benchmark for its floating-rate loans. Here are some of the most important changes that you must know about if you are an SBI customer:

New ATM withdrawal rules: According to new rules, SBI will allow 8-10 free ATM transactions in a month for its customers with average monthly balance (AMB) of up to Rs 25,000 in their savings accounts. For customers with AMB above Rs 25,000, State Bank of India will allow unlimited transactions at its own ATMs. The free limit at other banks’ ATMs would remain the same for all customers — three transactions in metro cities and 5 transactions at ATMs in other cities and towns.

Customers who exceed the number of free transactions will have to pay a fee ranging from Rs 5 plus GST to Rs 20 plus GST. Cardless cash withdrawals at ATMs will be charged at Rs 22 plus GST. SBI salary account holders will continue to enjoy unlimited free transations at all ATMs.

Cash withdrawal: SBI account holders with AMB of up to Rs 25,000 are allowed two free cash withdrawals at bank branches. Those with AMB between Rs 25,000 and Rs 50,000 will get 10 free cash withdrawals...

Jet Airways stares at shutdown, board meets today as lenders refuse funds

Lenders fail to infuse emergency fund after a crucial meeting on Monday

Companies News: India’s first private aircraft Jet Airways is going towards an all out establishing and a choice could be taken as right on time as Tuesday after a gathering of its top managerial staff. Left with no money, a seven-plane armada and fuel to run tasks just till Tuesday evening, the end is unavoidable, said sources near the improvement. “Fly can’t be spared now. It’s on the ground,” another source aware of everything said.

This pursues Monday’s no-agreement crisis meeting of the loan specialists’ consortium, driven by State Bank of India, to settle on implantation of Rs 1,000 crore right away. Before long, the suspension of the global tasks was stretched out till in any event April 18. As banks neglected to inject the required assets, the Jet administration will illuminate the board on Tuesday morning about the “basic improvements” before a call is assumed the eventual fate of the carrier, as indicated by Chief Executive Officer (CEO) Vinay Dube.

SBI, which has been at the front line of the goals plan, said late on Monday evening that the declarations of enthusiasm for purchasing stake in Jet were being confirmed by a lawful group and imminent bidders would be shortlisted by SBI Caps soon. “The proposed value change by banks, assuming any, will be embraced as a temporary system to encourage the offering cum deal process,” the SBI said. 

In a harm control work out, the bank said that important help to encourage the procedure was being reached out by the loan specialists in the consortium. “Participation by and support from the various partners will be the way to the achievement of the procedure,” it said. On the off chance that Jet goes down, it will be the second dish Indian administrator to go tummy up. Kingfisher Airlines was grounded in 2013…

SBI lowers ATM cash withdrawal limit to Rs 20,000 ahead of festive season

The restriction comes weeks before the festive season.

Business Standard : The State Bank of India (SBI) has lowered the ATM cash withdrawal limit to Rs 20,000 a day, from Rs 40,000. According to a report, the lower limit will be effective from October 31, in view of spurt in fraudulent transactions at ATMs and to encourage digital and cashless transactions. “In view of the increase in the number of complaints received by banks around fraudulent transactions at ATMs and to encourage digital and cashless transactions, it has been decided to decrease the cash withdrawal limits of debit cards issued or being issued on ‘Classic’ and ‘Maestro’ platforms,” said SBI official told Economics Times.

The restriction comes weeks before the festive season.

SBI managing director PK Gupta told ET, “Our internal analysis shows most actual withdrawals are of smaller amounts. So, Rs 20,000 should be adequate for most customers. We are trying to see whether smaller withdrawals could minimise frauds.” He said customers with a requirement for more can ask for card variants that offer higher withdrawal limits. Such cards are issued to those keeping a higher minimum balance in their bank accounts.|BS

As of May 2018, banks have distributed a total of 37.5 million credit cards and 861 million debit cards.

Daily Cash Withdrawal & Transaction Limit
State Bank Classic Debit Card		Domestic
Daily Cash Limit at ATMs	Minimum	Rs 100
	Maximum	Rs 20,000

Measures taken by govt to prevent ATM fraud

In August, the Home Ministry notified that no AYM would be replenished wish cash after 9 pm in cities and 6 pm in rural areas from next year even as two armed guards will accompany crisp notes in transit.

SBI ATM Cash Withdrawal Limit

Rs 2,000 problem: Govt set to notify new rules for exchanging torn notes

Banks claim RBI hasn't told them whether to exchange new denomination notes which are torn and mutilated

 

While the problem of banks handing out torn and mutilated currency to depositors has hogged the limelight off late, the bank customers' woes may be far from over. Many banks are refusing to exchange old and torn notes of the Rs 2,000 denomination with many saying that the Reserve Bank of India (RBI) does not have any rules in place that require banks to exchange torn Rs 2,000 notes carried by a depositor. Bank officials manning cash counters are turning away customers saying that they should "hold on to their torn Rs 2,000 notes till RBI comes out with a policy to exchange such notes."

When certain officials at some bank branches were reminded that the RBI has rules for replacement of all torn currency, they said that the old rules do not apply to the new denomination of Rs 2,000 and Rs 200. So why are banks refusing to exchange soiled Rs 2,000 notes by throwing the rule book at customers?

ALSO READ: Letter to BS: The purpose of introducing Rs 2000 notes has gone astray

The RBI has robust rules in place for exchange of soiled currency but banks seem to be interpreting them in a way to exclude those with Rs 2,000 denomination from the exchange process. The Reserve Bank of India (Note Refund) Rules 2009 clearly lay down rules for all mutilated notes above the denomination of Rs 50. The rules regarding mutilated notes states, "if the area of the single largest undivided piece of the mutilated note of rupees fifty, rupees one hundred, rupees five hundred and rupees one thousand note presented is at least 70, 75, 80 and 84 square centimeters, respectively, the same may be paid for full value.” The rules further state if the mutilated notes presented to banks is less than these specifications, banks need to pay only half the value on the same.

While these rules pertained to the pre-demonetisation era, the Rs 1,000 note was declared illegal and replaced by the Rs 2,000 note on November 8, 2016. Banks seem to be reluctant to apply the rules that pertained to the Rs 1,000 note to the new Rs 2,000 note. The last time RBI amended its note exchange rules was on July 3, 2017. These new rules states, "In order to facilitate quicker exchange facilities, the definition of soiled note has been expanded. A 'soiled note' means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing. These notes should be accepted over bank counters in payment of Government dues and for credit to accounts of the public maintained with banks.”

Read More : Demonetisation

Rajnish Kumar to be new SBI chairman

Kumar is at present one of the four managing directors at SBI, looking after the National Banking Group

economy news : Rajnish Kumar become on Wednesday named the new chairman of countrybank of India (SBI), the country’s biggest lender. He would take over from modern-day Chairman Arundhati Bhattacharya, who will complete her 4–yr time period on Friday.


Rajnish Kumar, 59, is at introduce one of the four overseeing chiefs at SBI, caring for the National Banking Group — which covers the retail, SME and horticulture business verticals. He had joined the bank in 1980. The Appointments Committee of the Cabinet affirmed his arrangement as the SBI director for a time of three years from the date of assuming control over the charge on or after October 7, a request issued by the Department of Personnel and Training (DoPT) said.

Handling the issue of progressing determination of terrible advances and HR to guarantee smooth working of operations after the merger of partner banks will be the two best needs all through his innings. Supporting development through expanded loaning would likewise figure unmistakably on motivation, SBI aggregate officials said.

He is considered more to be a practitioner with an emphasis on activity, said a center level SBI official. | Readmore…

Axis Bank cuts savings bank deposits rate to 3.5% on deposits below Rs 50 lakh

Bank to continue to pay 4% interest on deposits of above Rs 50 lakh

economy policy: Private sector lender Axis Bank has reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh.

However, the bank will continue to pay four per cent interest on deposits of above Rs 50 lakh. The new interest rates will be effective from August 8, Axis Bank said in its filing with the BSE.

Axis Bank’s action follows the decision by State Bank of India (SBI) and Bank of Baroda to reduce rates on savings deposits. SBI was the first bank to cut the savings deposit rate by 50 basis points to 3.5 per cent for deposits up to Rs 1 crore. Bank of Baroda had cut the rate to 3.5 per cent on deposits of up to Rs 50 lakh.

While Kotak Mahindra Bank retained the existing rates of five per cent on savings deposits up to Rs 1 lakh and 6 per cent on deposits between Rs 1 lakh and Rs 1 crore, it reduced the rate on savings deposits of amounts above Rs 1 crore and up to Rs 5 crore from six per cent to 5.5 per cent. The interest rate on deposits of over Rs 5 crores was retained at 5.5 per cent. Karnataka Bank, too, had tweaked the interest rate on savings deposits.

SBI Managing Director Rajnish Kumar had said that it was a choice between increasing MCLR (marginal cost of funds-based lending rate) or reduce the savings bank rates.

A hike in lending rates would have meant an increase in equated monthly instalments (EMIs) for retail, small and medium enterprises, and farm loans. SBI opted to cut savings rate, helping to maintain MCLR at the existing level, he said.

Upcoming bank and government exams in 2017

The candidate should be careful while filling out the application

More than 1.5 crores candidates took up the bank exams of IBPS (Institute of Banking Personnel Selection) in the last three years and vacancies in the Indian banks equaling 68000 were occupied.

When it comes to making a career choice that promises security and financial stability, bank jobs in India have always been roped in first. Public sector banks are getting a tough competition from private banks. As a result, they are reaching out to rural and semi-urban areas. Despite the rise of Information Technology, millions of people still prefer bank jobs and apply for various positions in public sector banks.

Here’s the list of upcoming bank exams and jobs in 2017. It also features other government exams.

Listed are the important details regarding the bank exams and jobs for the year 2017-18: | Read More

Yogi Adityanath's farm loan waiver: SBI, PNB, Allahabad Bank top exposure

The state government has formed an eight-member committee to implement the decision

 

#LATEST| State Bank of India, Punjab National Bank and Allahabad Bank lead the pack of commercial banks with exposure to the agriculture sector in Uttar Pradesh, where the state government has decided to pay all crop loans owed by small and marginal farmers. 

As of December 2016, nine banks (also including Union Bank of India, Bank of India and Bank of Baroda) had extended loans worth Rs 70,046 crore to the agriculture sector in the state. Of this, crop loans were Rs 49,811 crore.

 The state government has formed an eight-member committee under Chief Secretary Rahul Bhatnagar to implement the decision. Sources said the committee would formalise the loan waiver with the banks by April 21. It will also try to find ways for making payment to the banks by May 15, so that farmers will be in a position to avail of crop loans this year. There are 700,000 farmers in the state whose combined Rs 5,630-crore debt has been declared non-performing by the banks; they cannot get new loans.(READ MORE)