Many in the banking industry feel the Kolkata-based United Bank of India cannot survive on its own and must be merged with another bank. Some are even reliving the Indian Bank experience in United Bank’s current state of affairs. But barring the fact that both were part of the first set of 14 banks that were nationalized on 19 July, 1969, they are as different as chalk and cheese.
An increasing number of foreign investors have started believing that Indian financial sector is suffering from schizophrenia. Things are pretty good in Asia’s third largest economy and they are even getting better, but the banking community remains a depressed lot on piling of bad assets and tardy credit pick-up. Indeed, the banking sector is not in pink of health and almost every lender is showing a rise in bad and restructured assets, but one should not press the alarm bell as once the growth momentum is back to the economy, things will definitely look up, they say.
Nobody in the banking industry knows the answer—not even the employees of United Bank of India where she was the chairperson and managing director. Archana Bhargava has sought voluntary retirement, citing health reasons. She joined the Kolkata-based bank in April 2013 and her tenure would have ended in March 2015.
United Bank of India will not be able to expand its loan book till fresh capital is infused as its capital adequacy ratio has dropped to about 9%, the floor level. The Reserve Bank of India (RBI) had ordered a forensic audit of the state-run bank’s books a few months ago and restrained its management from giving loans of over Rs.10 crore after the Kolkata-based lender announced a Rs.
Do you have too many currency notes stuffed in your mattress that were issued before 2005 and would not like to reveal your identity while exchanging them with new notes? Head towards Ahmedabad. If bankers are to be believed, a discount market is running in Gujarat’s main city, where you can exchange your high-value notes at a discount of around 6%. This is expected to rise in coming months.
Mumbai: The finance ministry is negotiating with the Reserve Bank of India (RBI) for an interim payment or transfer of surplus of the Indian central bank’s income ahead of the end of its accounting year in an attempt to bridge the country’s fiscal deficit and stick to the estimated deficit target of 4.8% of gross domestic product (GDP) for fiscal year 2014 that ends in March. Finance minister P.
Mumbai: Retail inflation in January slowed to a two-year low of 8.79%, sharply down from 9.87% in December and 11.
State-run United Bank of India on Friday reported a Rs.1,238.08 crore net loss in the December quarter after setting aside Rs.