Additional fund infusion from the Centre lifts PSU banks

Fifteen public sector banks rose 0.08% to 3.21% after the Union Cabinet approved an infusion of Rs. 6000 crore in 10 public sector banks with an objective to raise government holding to a minimum 58% in all state-run banks.

Bank of Maharashtra (up 3.21%), Bank of Baroda (up 2.48%), Indian Overseas Bank (up 2.41%), Andhra Bank (up 2.17%), Vijaya Bank (up 2.08%), Punjab National Bank (up 1.56%), Dena Bank (up 1.29%), IDBI Bank (up 1.24%), Bank of India (up 1.22%), Allahabad Bank (up 1.10%), Union Bank of India (up 1.03%), Canara Bank (up 0.67%), Syndicate Bank (up 0.11%) and State Bank of India (up 0.08%), rose. The exact amount, mode of capitalization and other terms and conditions would be decided in consultations with the banks at the time of the infusion, the government statement said. Banks where government’s equity is less than 58% include Bank of Baroda, Oriental Bank of Commerce, Andhra Bank, Dena Bank, IDBI Bank and Vijaya Bank. The proposed capital infusion would enhance the lending capacity of the public sector banks to meet the credit requirement of the economy in order to maintain and accelerate the economic growth momentum, the government statement said.

Banks body to approach Finmin for hiring Salman, Aamir

 

Matinee idols Salman Khan and Aamir Khan may soon be spreading the message of financial inclusion, if Indian Banks’ Association manages to convince finance ministry mandarins on an ad blitzkrieg that could cost Rs 70-80 crore.
The representative body of 160 lenders in the country feels Aamir and Salman, fresh from the top grossers of the year – 3 Idiots and Dabangg, would be the ideal persons to educate rural masses about the benefits of bank accounts and other financial services.

“There are various proposals that are being considered. Roping in film stars has been suggested by one of the agencies that we are talking to for the campaign,” said a senior IBA official involved in the process. “It is too early to comment. But actors of such stature won’t charge any fee as it is for a social cause. It’s the production and associated cost which we’ll have to take care of,” he said, requesting anonymity.

IBA plans to provide a fillip to the financial inclusion agenda through an 18-month national campaign that will include street plays, puppet shows and advertisement in mass media aimed at wooing the rural folk. The campaign will end on March 2012.

IBA chief executive K Ramakrishnan has already said that the campaign will be a huge, country-wide effort. “We want to create awareness about financial inclusion and the benefits of opening a bank account (to the rural masses),” he had said in September. The government has already asked banks to further the cause of financial inclusion.

Finance minister Pranab Mukherjee had announced in his budget speech for 2010-11 that all unbanked villages with population of above 2,000 will be provided with basic banking services by March 2012.

Accordingly, over 73,000 unbanked villages in the country have been allotted to different commercial banks for coverage through financial inclusion plans. All banks have submitted their plans for the financial Inclusion programme to the Reserve Bank of India .

The finance ministry is also supporting the cause of financial inclusion and is working on a . 800-crore financial inclusion fund, which will compensate banks for costs incurred in providing no-frills accounts in rural areas and other expenses incurred in offering credit in unbanked areas.