Accident Insurance Upto Rs.8.00 lakhs for Coop Employees for just Rs.100/- per year

Govt. of Kerala has extended the scheme of Accident Insurance Coverage of upto Rs. 8 lakhs to the employees of Cooperative Institutions of Kerala State.  Please note that the last date for enrolment is 31.12.2010

The Government Order regarding this scheme can be downloaded from the following link: 

 G.O (P) No.616/10/Fin dated 23.11.2010 

HURRY!! Last Date is 31.12.2010

Are you 'Loan Eligible"??

Home loans are the most easily accessible financial supplement to purchase your dream home. To understand how to enhance your eligibility to apply for a home loan, make a simple self-assessment. Here is how banks do it.

Credit Appraisal is the process followed by banks to determine the borrower’s ability to repay his loan as well as his trust worthiness. A prospective borrower has to go thorough the stages of credit appraisal as practiced by different banks.

The main factor banks will consider is “proof” that shows that the borrower is capable of repaying the loan on time. For this, they will look into your income documents, personal credit history, current assets and liabilities, education, experience etc.

Old generation banks and co-operative banks to certain extent rely upon existing relationship or the previous experience with a client. A common pattern they follow is the sanctioning of a loan amount which will be a fixed multiple of the annual income. However, the new generation banks strictly

Loans against gold jewellery gain pace

The business of loans against gold jewellery has become a priority for many financial institutions.
Many have chalked out mega retail spread plans, especially in Tier-III and Tier-IV cities, to ensure more gold loans, especially to farmers. Manappuram General Leasing and Finance and The Muthoot Group, the leading non-banking finance companies in this sector, have announced addition of 500-600 new branches by the next year.
Private sector banks, like the country’s

UCBs ready to take on ICICI or HDFC Banks !

Urban cooperative banks had always been poor cousins of Public sector banks and Private sector banks on account of Core Banking Solution. The traditional way of carrying business is somehow not going with the mood of the times. Core Banking Solution offers to connect banks to the server so that a customer can operate his account from anywhere in the world.

In a major move which will at once make urban cooperative banks

CBI rejects bail of Pen bank chairman

The Special Central Bureau of Investigation (CBI) court, on Tuesday, rejected the bail of the chairman of Pen Co-operative Urban Bank for his alleged involvement in the Rs 480-crore scam. Six persons allegedly exported gold jewellery worth Rs 600 crore to UAE using forged documents in collusion with officials of Metal Scrap Trading Corporations (MSTC) Ltd. Shirish Dharkar, chairman of Pen Co-operative Urban Bank and director of

Nabard inks pact with AP Mahesh bank for refinance

Hyderabad: Nabard has entered into an agreement with the Andhra Pradesh Mahesh Co-operative Urban Bank Ltd for providing refinance for Agricultural and Rural Development activities in the state.

The Andhra Pradesh Mahesh Co-operative Urban Bank Ltd, which has its presence in three states-- Andhra Pradesh, Rajasthan and Maharashtra-- is the first Urban Cooperative bank to enter into such an agreement with National Bank of Agriculture and Rural Development, said a Nabard official release.

Nabard already has such arrangements with major Commercial Banks, Regional

Debts Recovery Tribunal deals blow to Washim coop bank

AKOLA: Washim Urban Co-Operative Bank received a setback in disposing of the property of a mortgagor for not observing due process of law. Presiding officer of Debts Recovery Tribunal, Nagpur Irshad Husain has allowed the securitisation application and directed the bank authorities to hand over peaceful possession of the mortgaged land to applicant Jasmindersing Triloksing Johar of Washim. 

The presiding officer also directed the bank officials to return

5,000 MMCB depositors may lose their cash

More than 5,000 depositors may have to lose their hard-earned money in case the Madhavpura Mercantile Cooperative Bank (MMCB) goes into liquidation.

The depositors have lost their hopes as many other co-operative banks are likely to face the heat. However, the Gujarat Urban Cooperative Banks Federation (GUCBF) seems to be a bit optimistic here as the management plans to educate the banks on handling situations without negatively affecting the

It would be Members’ decision: Eknath Thakur (Interview with Chairman, Saraswat Bank)

Saraswat Cooperative bank has indeed earned a name for itself in urban cooperative banking but imagine it going the private way.

To find out the truth, Indian Cooperative.com contacted Mr Eknath Thakur,the Chairman of the Bank. Here is a brief excerpt of interview with him

Q  Are you going to be a private bank on the lines of ICICI or HDFC?

Thakur: Who am I to decide It is a cooperative bank with a membership of 75,000 individuals. They have

Saraswat Co-op Bank seeks to become a private bank

To overcome the inherent restrictions in the co-operative banking model on raising capital, the country's largest co-operative bank is mulling the option of converting into a private sector bank.

The Mumbai-headquartered Saraswat Co-operative Bank has apparently started working towards this end. A bigger play in the banking landscape by seeking the Reserve Bank of India's permission to spread its wings across the country – currently, it has presence in Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Goa and Delhi – and giving

Maharashtra Govt. to amend co-op act to prevent scams

NAGPUR: The Maharashtra government on Tuesday decided to amend the Maharashtra Co-operative Societies Act, 1960, to prevent scams in various cooperative banks and societies which lead them to bankruptcy, costing the common man his heard earned money. This decision was announced by cooperation and parliamentary affairs minister Harshawardhan Patil while replying to a debate in the upper house under

Urban cooperative banks to adopt core banking solutions

Having overcome the turmoil in the cooperative banking sector, urban cooperative banks (UCBs) are all set to adopt the modern technology of core banking solutions (CBS) to expand their reach.

The National Federation of Urban Cooperative Banks and Credit Societies Limited has planned to help relatively weak and smaller UCBs to adopt modern technology and interlinking through the Applications Service Provider (ASP) system which would be economical for such

Officials swindle co-op bank, on the run

BANGALORE: Four officials of a rural cooperative bank swindled the institution of Rs 1.56 crore, by availing of loans through fake Self Help Groups (SHGs). 

The four men, working for the Bangalore Rural and Ramanagaram District Cooperative Bank, took advantage of a microfinance scheme of the government involving a Nabard loan. They formed 32 fake SHGs for this purpose. Only recently, the bank manager realized that they were fabricated by the employees. 

Facing charges of misappropriation of funds, the foursome is now absconding. CCB sleuths, who are probing the case, are on the lookout for the bank's loan section branch manager B K Puttaramaiah, in-charge manager of Kanakapura branch H Krishna, field superintendent K N Swamy Gowda and Chennagiriappa of Agriculture Cooperative Bank of T Hosahalli. 

The fraud comes at a time when the unregulated microfinance industry is facing a crisis by way of high interest rates and low repayment of loans. 

Ignore complaints by loan defaulters: Cooperative to govt

Peeved at registration of a police case against its loan recovery official, Punjab State Cooperative Agricultural Development Bank Limited (PSCADB) has decided to take up the issue with state government. 

"Certainly, we will take up the matter (police case against recovery official) with Registrar of Cooperative Societies, which will in turn raise this issue with the state (Punjab) government," a senior official of the state-run PSCADB said here. 

"We want (state) government should pass instructions to police not to lodge any FIR or entertain complaints against our recovery officials, who are just performing their duties," he said, "otherwise, our staff will get discouraged and demoralised to recover loan money from defaulters." 

Police on November 20 had registered a case against the manager of Pathankot branch of the cooperative bank for abetting a farmer to commit suicide. A 60-year-old farmer was reported to have committed suicide allegedly because of harassment by cooperative bank official for not paying loan. 

Officials of PSCADB can launch recovery process against defaulters under Punjab Cooperative Societies Act and Agriculture Development Banks Act. 

PSCADB, which has extensive reach in rural and far-flung areas of the state, faces outstanding loan payments to the tune of Rs 2,019 crore till September this year with whopping 30 per cent of its borrowers (8.40 lakh) defaulting on loan payment. 

During the current fiscal, the bank has so far been able to recover just Rs 117 crore from defaulters against the targeted recovery of Rs 903 crore.
courtesy : PTI /The Business Standard

RBI cancels licence of Boriavi co-op bank

VADODARA/MUMBAI: The Reserve Bank of India (RBI) on Monday said it has cancelled the licence of Gujarat-based Boriavi People's Co-operative Bank as it has become insolvent and efforts to revive it have failed.

"The RBI has cancelled the licence of the Boriavi People's Co-operative Bank Ltd, Boriavi, in Karia (Kheda) Gujarat. The order of cancellation of the licence was given after the close of business on November 19, 2010," the apex bank said in a statement.

It has requested the registrar of co-operative societies of Gujarat to issue an order for winding up the bank and appoint a liquidator.

"The RBI cancelled the licence as the bank had ceased to be solvent, all efforts to revive it in close consultation with the government of Gujarat had failed and the depositors were being inconvenienced by continued uncertainty," the bank's statement added.

With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of the bank will be set in motion.

"On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions," RBI said.

courtesy : The Times of India

Software launched to link co-op banks

Chennai, Nov. 19: As part of the state government’s ongoing efforts to digitise the government machinery, state cooperative minister Ko.Si. Mani on Friday launched exclusive common application software for all district, central cooperative banks and urban cooperative banks in the state.

The new software would enable facilities like ATM, Internet banking and SMS banking, a feature only private and nationalised banks have, Mr Mani said. It also meets international standards for financial transactions in terms of security and it would be scalable to core banking solution too.

The new software also enables inter-operability between banks besides cutting down cost and optimising efficiency of service to the customer.

The software also deprives the cooperative bank customers of linguistic restrictions since the system could be converted to a language of user’s choice.

To begin with, data porting into the common application software ia being done in 1020 branches and about 930 bank branches are online. The new common application software developed with the support of Electronic Corporation of Tamil Nadu (Elcot) using open source technology could be altered or transferred to any other government body since the complete source code of it would be propriety of the cooperative department.

The software comprising 33 modules has been designed to cater to branch banking and head office module. While the branch module would meet all the basic banking functions of the district, central and urban cooperative banks, the head office module would cover back office operations such as staff management, payroll, tapal, reconciliation besides treasury operations such as investments and borrowings.

courtesy : Deccaan Chronicle

Stay order on Udhna Coop Bank by SC

Banking regulator, Reserve Bank of India has received stay order from Supreme Court against Udhna Citizens Cooperative Bank. This stay order comes in response to the stay order which was issued by Gujarat high court for a petition registered by the Cooperative bank against RBI for imposing restrictions in its operations as per Sec 35 (A) of Banking Act.

The high court had put a stay order on RBI imposing its restrictions till November 16, 2010.
Setu Madhavan, chairman, Udhna Citizens Cooperative Bank, said, "The RBI wanted to prove that it was above us and hence has obtained a stay. However, the high court is scheduled to hear the case on November 16. We will prove that we have enough liquidity and are in a good shape and that the RBI decision is wrong."
As per the bank, it has liquidity worth Rs 52.23 crore as on 2 November and deposits amount to Rs 95 crore. But RBI data says the NPA level of the bank is touching 76% which is not acceptable.
courtesy : www.rupeetimes.com

RBI imposes Rs 5-lakh penalty on Pune's Cosmos Co-op Bank

MUMBAI: The Reserve Bank of India (RBI) today said it has imposed a penalty of Rs 5-lakh on Pune-based Cosmos Co-operative Bank for violation of instructions/guidelines of the Reserve Bank of India (RBI). 
The bank had violated RBI's directives by sanctioning loans to directors, their relatives and firms in which directors or their relatives are interested, the apex bank said in a statement issued here.
The bank has violated instructions by not publishing the correct amount of loans outstanding in the names of directors/relatives/firms in which they are interested in the 'notes on account' to the balance-sheet in the successive annual reports during 2004 to 2009, the statement said.
Cosmos had not furnished correct information in the quarterly control returns submitted to RBI during the period 2004 to 2009. "None of the 43 loans sanctioned in violation of directives were reflected in the OSS data submitted to Reserve Bank of India," the statement said.
The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the fact of the case and the bank's reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty, the apex bank said.

courtesy : The Economic Times

Slowdown dents margins of urban co-op banks in 2009-10

sify finance says:

Facing the brunt of economic slowdown due to the global financial turmoil, Indian urban cooperative banks reported a drop in the interest margin (NIM) in 2009-10.
NIMs for the sector declined to 2.5 per cent for 2009-10, from 2.9 per cent in 2008-09. Net profits declined in the past two financial years, say Reserve Bank of India data.
The sector reported lower return on assets (RoA) during the past two years as compared with 2007-08. The decline in RoA was mainly due to a decline in NIM and non-interest margin during the past two years.
RoA of the scheduled UCBs sector had witnessed a rising trend during the past decade. The interest income of scheduled UCBs grew at a higher rate than that of non-scheduled UCBs at end-March over the previous year. Despite this, the non-scheduled UCBs were able to post higher net profits because of the deceleration in operating expenses, especially the staff expenses during the same period.
Improving health 
The tally of financially weak urban banks declined (grade III and IV banks) to 330 in 2009-10 from 392 in 2008-09. Due to the consolidation process in the sector, the percentage of banks in grades III and IV witnessed a declining trend during recent years.
There was an improvement in the asset quality of the entire UCB sector in both absolute and percentage terms as at end-March over the previous year. Gross bad loans declined by Rs 135 crore to Rs 12,727 crore.
However, both gross as well as net non-performing loans of the UCB sector continued to be on the higher side, RBI said, in its Trends and Progress report for the banking sector in 2009-10.
Along with a decline in non-performing loans, there was also an increase in the coverage ratio of UCBs as of end-March over the previous year, indicating improvement in financial soundness. The provision coverage ratio improved to 62.9 per cent at the end of 2009-10 from 59.9 a year before.
The financial performance has improved considerably over the decade. The scheduled UCB sector started reporting overall net profits since 2003-04, as compared with net losses prior to it.

Many restrictions on UCBs go

Indian Cooperative says :

The urban cooperative banks finally have a reason to rejoice. The Reserve Bank of India has lifted many restrictions which were earlier posed on the modus operandi of these urban co-ops.

Speaking on this move by RBI, Deputy Governor Usha Thorat who retires now said, “UCBs’ area of operation is different from MFIs. Being community-based entities, UCBs cater to the middle and lower-middle classes.

The current set of policies should be seen as a move to incentivise and provide an enabling framework to the well-managed and strong UCBs.”

“It’s a dramatic, wonderful Diwali gift,” said SK Banerjee, MD of the largest co-operative lender, Saraswat Co-operative Bank.

RBI said that it felt some of the old restrictions coming in the growth track of these banks. “UCBs are also important instrument so far as financial inclusion goes,” Ms Thorat said.

Currently, unsecured lending of UCBs is restricted to Rs 2 lakhs. RBI has decided that housing, real estate and commercial real estate loans of UCBs will be linked to total assets instead of deposits.

Consolidation hits UCB deposits

Mumbai: On account of the consolidation process going on in the Urban Cooperative Banks (UCB) sector, percentage of banks in grades III and IV witnessed a declining trend during recent years.

Further, the absolute amount of deposits as well as advances with UCBs in grades III and IV also witnessed a decline in end-March 2010 as compared with the previous year. Accordingly, the percentage of banks in grades I and II as also their share in total deposits and advances of the sector exhibited a rising trend during the recent years. This implies a shift in the concentration of banking business in favour of financially sound UCBs

Out of a total of 103 no-objection certificate (NOCs) for merger issued by the Reserve Bank, 91 were in respect of weak banks. Of these 91, 71 mergers have so far been notified by the RCS of the respective States.

All major items of the profit and loss account of the UCB sector witnessed deceleration as at end-March 2010 over the previous year. However, the deceleration was more on the income side than on the expenditure side leading to lower overall operating profits as compared with the previous year. Though there was a decline in provisions and contingencies, it could not compensate for the decline in operating profits. Net profits, therefore, witnessed a decline at end-March 2010 as compared with the previous year. Accordingly, there was a decline in the return on assets (RoA) as well as net interest margin (NIM) of the sector as at end-March 2010 over end-March 2009. The non-interest margin continued to be negative at end-March 2010 as in the previous year. The non-interest income registered an absolute decline at end-March 2010 over the previous year.

The overall financial position of rural cooperative credit institutions improved as at end-March 2009 over the previous year. As at end-March 2009, half of the total rural cooperative credit institutions reported profits. Profits reported by the sector mainly emanated from DCCBs. While StCBs, DCCBs and State Cooperative Agriculture and Rural Development Banks (SCARDBs) reported overall net profits at end-March 2009, ground level institutions, viz., Primary Agricultural Credit Societies (PACS), and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) reported overall net losses.

courtesy : The Financial Express

Nabard launches subsidy scheme to promote solar energy

The National Bank for Agriculture & Rural Development in association with the Union ministry of new and renewable energy, has firmed up plans to promote solar energy penetration through a multi agency approach.

Nabard, run by the central government, has launched a capital subsidy cum refinance scheme for installation of solar off grid (photovoltaic and thermal) applications. This is to enable cooperative banks and regional rural banks to extend capital subsidy and loans at subsidised rates to people opting to install solar applications such as home lighting, water heaters and irrigation pumps.

ആദ്യത്തെ എ.ടി.എം: പീപ്പിള്‍സ് അര്‍ബന്‍ ബാങ്കിന് ചരിത്ര നേട്ടം.

തൃപ്പൂണിത്തുറ: സംസ്ഥാനത്തെ അര്‍ബന്‍ സഹകരണ ബാങ്കുകളുടെ കൂട്ടത്തില്‍  ആദ്യത്തെ എ.ടി.എം സ്ഥാപിച്ചു കൊണ്ട് തൃപ്പൂണിത്തുറ ആസ്ഥാനമായുള്ള പീപ്പിള്‍സ് അര്‍ബന്‍ സഹകരണ ബാങ്ക് ചരിത്രത്തില്‍ സ്ഥാനം സ്വന്തമാക്കി.  2010 സെപ്റ്റംബര്‍ 25 നു തൃപ്പൂണിത്തുറയില്‍ നടന്ന ചടങ്ങില്‍ റിസര്‍വ് ബാങ്കിന്‍റെ തിരുവനന്തപുരം റീജിയണല്‍ ഓഫീസിലെ അസിസ്ടന്റ്റ് ജനറല്‍ മാനേജര്‍ ശ്രീ. പി.എന്‍.നന്ദകുമാര്‍ എ.ടി.എമ്മിന്‍റെ ഉത്ഘാടനം നിര്‍വഹിച്ചു.

ബാങ്ക് ചെയര്‍മാന്‍ ശ്രീ. എം.സി.സുരേന്ദ്രന്‍, ബാങ്ക് ജനറല്‍ മാനേജര്‍ ശ്രീ. ഇ.പി.ശ്രീകുമാര്‍ എന്നിവരെ കൂടാതെ ബാങ്ക് ഡയറക്ടര്‍മാരും നിരവധി ഇടപാടുകാരും ജീവനക്കാരും  തദവസരത്തില്‍ സന്നിഹിതരായിരുന്നു.  പുതിയ കോര്‍ ബാങ്കിംഗ് സംവിധാനം നിലവില്‍ വന്നതിനെ തുടര്‍ന്ന് പുതുതായി നിലവില്‍ വന്ന എസ്.എം.എസ്.ബാങ്കിങ്ങിന്റെ ഉത്ഘാടനവും ശ്രീ. നന്ദകുമാര്‍ നിര്‍വഹിച്ചു.  ഈ സംവിധാനം നിലവില്‍ വന്ന, സംസ്ഥാനത്തെ ആദ്യ അര്‍ബന്‍ ബാങ്കും കൂടെയാണ് പീപ്പിള്‍സ് അര്‍ബന്‍ സഹകരണ ബാങ്ക്.    ദേശ സാല്‍കൃത ബാങ്കുകളുടെ എ.ടി.എമ്മുകളില്‍ ലഭ്യമായ ഒട്ടുമിക്ക സൌകര്യങ്ങളും പുതുതായി ഉത്ഘാടനം നിര്‍വഹിച്ച എ.ടി.എമ്മില്‍ ലഭ്യമാണ്.

ബാങ്കിന്‍റെ ശാഖാ വികസന പരിപാടിയുടെ ഭാഗമായി ബാങ്കിന്‍റെ പതിനാലാമത് ശാഖ ഏറണാകുളം ജില്ലയിലെ കാഞ്ഞിരമറ്റത്തു ഉടനെ ഉത്ഘാടനം ചെയ്യപ്പെടും.  സംസ്ഥാന തല നിക്ഷേപ സമാഹരണത്തില്‍ ഒന്നാം സ്ഥാനത്തിനു അര്‍ഹമായ പീപ്പിള്‍സ് അര്‍ബന്‍ സഹകരണ ബാങ്കിന് ഒക്ടോബര്‍ 30  നു ആലപ്പുഴയില്‍ വെച്ചു നടന്ന ചടങ്ങില്‍ വെച്ച് സഹകരണ വകുപ്പ് മന്ത്രി അവാര്‍ഡ്‌ വിതരണം നടത്തുകയുണ്ടായി.  ബാങ്കിന് വേണ്ടി വൈസ് ചെയര്‍മാന്‍ ശ്രീ. പി.പി.അപ്പു അവാര്‍ഡ്‌ ഏറ്റുവാങ്ങി.  

സംസ്ഥാന ഗവണ്മെന്റും റിസേര്‍വ് ബാങ്കും തമ്മില്‍ ധാരണാ പത്രം ഒപ്പിട്ടതിനെ തുടര്‍ന്ന് ശാഖാ വികസനം, എ.ടി.എം സ്ഥാപനം തുടങ്ങിയവയില്‍ റിസേര്‍വ് ബാങ്ക് മുന്‍പ്  ഏര്‍പ്പെടുത്തിയിരുന്ന നിരോധനം നീക്കിയിരുന്നു.  അതിനെ തുടര്‍ന്ന് സംസ്ഥാനത്ത് മുഴുവന്‍ അര്‍ബന്‍ സഹകരണ ബാങ്കുകളുടെ നിരവധി ശാഖകള്‍ ചുരുങ്ങിയ കാലം കൊണ്ട് തന്നെ ആരംഭിക്കുകയുണ്ടായി.

UCBs get more to expand business

Mumbai: In a bid to facilitate the growth of well-managed and financially-sound urban cooperative banks (UCBs), the RBI has decided to withdraw the existing restrictions on granting multi-state status and extension of area of operation beyond the state of registration for such UCBs having a minimum net worth of Rs 50 crore. The central bank has also allowed such UCBs, which have acquired weak banks in other state(s), to extend the area of operation to the entire state of registration of the target bank provided they have minimum net worth of Rs 50 crore;

Further, the Tier-II UCBs

Urban co-operative banks get a policy boost

In an effort to ensure growth of well-managed and financially-sound urban cooperative banks (UCBs), the Reserve Bank of India (RBI) has proposed withdrawing restrictions on grant of multi-state status for those having a minimum net worth of Rs 50 crore.

UCBs (with a minimum net worth of Rs 50 crore) that have acquired weak banks in other states will be allowed to extend their area of operation to the entire state of registration of the target bank.

Urban co-operative banks on a high as RBI lifts curbs

MUMBAI: For years, urban co-operative banks, which have funded thousands to buy auto rickshaws and set up shops, suffered as rogue brokers tried to rob them, and many customers moved to high-street banks. The string of events that followed the 2001 market collapse also gave them a stigma that many have been trying to shake off. 

Today, they are on a high. The Reserve Bank of India has offered urban co-operative banks or UCBs more freedom to operate by removing some of the restrictions, which were put in place five years ago to clean up the system. 

When asked whether it was an attempt to position

Two held in Rs 1cr car loans scam

THANE: Two fraudsters who cheated three cooperative banks of more than Rs 1 crore by submitting fake documents of sale and purchase of cars, including a high-end Mercedes Benz, were arrested by the Thane crime branch on Saturday.

Thaikal Matthew Aipe ( 38), mastermind behind the scam, along with his accomplice Umesh Shrikanthak Gowda (35) successfully obtained car loans up to Rs 1.07 crore from three Thane-based banks-City Cooperative Bank, Pune People's Cooperative Bank (both, in Naupada) and Mahanagar Bank-by presenting fake registration certificates and insurance documents of vehicles.

"Matthew was familiar with bank loan formalities as he had ealier worked with several automobile showrooms in Mumbai and Thane. In 2008, he started his own car agency, Alpha Motors, at Kaler in Bhiwandi, which has till date executed 51 sales. "Our inquiries revealed that 18 of these deals were fraudulent and loans were secured on submitting fake RC books,'' said CV Joshi, senior inspector, Thane crime branch.

The modus operandi was simple. "He would develop a fine rapport with the banks and their management by his sweet talks and being regular in making EMI payments. The initial car sales, on which he obtained loans from the banks, were genuine. However, greed got over him and he then manufactured fake RC books showing purchase of high-end cars. The banks would issue a cheque in the account of Alpha Motors for the sale which never was,'' Joshi told TOI.

Matthew is said to have teamed up with two or three unidentified persons who lent their names for the fraud deal. "The arrangement was the money from the bank would be split between Mattew and the person under whose name the car loan was obtained,'' the police official said.

A Mercedes Benz, four Xylo, six Swift, one Logan cars were among the 18 fraudulent deals transacted by Matteew. "The initial 2-3 EMI payments towards the car loans would be done on time so as not to arouse suspicion in the bank. Also it was the only way to ensure that future loans are disbursed on time,'' Joshi said.

Police suspect the role of the bank officals and are inquiring. Meanwhile, the management of Pune People's cooperative bank have suspended its manager one Khobragade for alleged role in the scam.

courtesy : Times of India

Former co-op bank officials booked for Rs 70 lakh graft

VADODARA: Former senior officials of Alavi Cooperative Bank in the city have been booked for misappropriation of funds by the sub-auditor of the district cooperatives registrar. The officials have been accused of misappropriating an amount of Rs 70 lakh between November 2007 and March 2009. 

The case filed in this regard with Kishwanwadi police station names Akbari Charniwala, former managing director (MD) and currently the joint MD, former chairman Abedin Baldiwala and 10 managing committee members during the time of graft as the accused in the case. 

The accused had allegedly misappropriated funds in connection with deal of a land plot belonging to the bank and construction of a branch coming up in the city. The accused allegedly sold off a plot in the Sardar Estate on Ajwa Road for Rs 6.67 lakh when its market value was Rs 18 lakh. The plot was purchased by the bank way back in 1992 for Rs 1.8 lakh. The sub-auditor, H R Sodawala, has stated that the bank was duped of Rs 11.33 lakh in the deal. It has also come to light that the plot was sold to relatives of Charniwala. 

The case also alleges that the bank had started construction of another branch on Ajwa Road and an estimate of Rs 30 lakh was cleared for the purpose. However, without any formal clearances from the committee, an expense of Rs 88.93 lakh was incurred on construction. It also came to light that material for the construction of the branch was supplied by Baldiwala's shop in Dabhoi. 

Another allegation made in the case is that Charniwala had taken Rs 50,000 for getting the plans of the branch cleared from the municipal corporation on November 23, 2007, even when this was not needed. He repaid the amount on March 28, 2003, when some objections were raised, but did not pay any interest on the amount to the bank. 

courtesy : times of india

Bank ordered to pay widow FD maturity amount

VADODARA: A 28-year-long struggle of a widow to get her fixed deposit (FD) amount back from a cooperative bank ended on Tuesday. The bank was ordered to pay the amount to her with interest by Vadodara District Consumer Dispute Redressal Forum. 

Kamla Gupta, wife of late Shriram Gupta, who made and sold the famous snack Shriram Tamtam in the city, had made a FD of Rs 4,800 in Shramjivi Nagarik Sahakari Bank. When the FD matured after a year and she approached the bank with her husband, they were asked to wait for some more days and were assured that compound interest for the remaining days would also be paid on the FD. 

However, this did not happen and the bank kept dilly-dallying with payment of the maturity amount for some reason or the other. "They even said that my late grandfather had withdrawn the money, but could not produce any evidence," said Kamla's grandson Hitesh Gupta, who is also a lawyer. 

Eventually, Kamla moved the consumer forum in the year 2007. While neither the complainant nor the bank remained present for hearings, the consumer forum gave an order on the basis of the evidence provided by the complainant. The court has ordered the bank to pay the complainant an interest of 10 per cent from April 4, 1983, when the FD was made. It also ordered the bank to pay Rs 1,000 for causing mental agony and a similar amount as cost. 

courtesy : times of india

Urban co-op banks flex muscle, want sops from politicians, RBI

Urban cooperative banks in the state are banding together to form a strong lobby and use their clout to get sops from the Centre and state. In this, they are getting political support from the Nationalist Congress Party (NCP) that is hoping to consolidate its rural power base by building inroads in towns and large urban areas.

At a two-day state-level conference of 551 banks organised at Nashik in November — to be attended by political bigwigs such as Union Finance Minister Pranab Mukherjee, Union Agriculture Minister and NCP chief Sharad Pawar and Chief Minister Ashok Chavan — the banks are expected to press for several concessions from the Reserve Bank of India (RBI), state government and the Centre.

“We want relaxation of out-of-date regulatory mechanisms and income-tax exemption on our profits,” said Vishwas Thakur, the conference’s convenor and president of Nashik Urban Cooperative Bank.

The banks also want sanction for loans to directors and their relatives, sharing of profits with their boards of directors, an increase in the insurance cover offered by the the RBI on bank deposits and raising of the slab of tax deduction on interest from Rs 10,000 to Rs 25,000.

Though many of these banks have been mismanaged, there was substantial growth in their deposits even during the global slowdown. With rapid urbanisation in the state, the banks’ clout has only increased.

This is an opportunity for the NCP, which has been forced by rapid urbanisation to look beyond the rural areas.

NCP MP Supriya Sule, Pawar’s daughter, backed the conference in an attempt to get a foothold in the cooperative sector.

“The conference is an opportunity to discuss banks’ problems with policy makers. The idea is not to protect poorly managed banks, but to encourage those that are doing well,” said Sule.

courtesy : hindustan times

Rs.60 lakh looted from bank car in Maharashtra

Beed (Maharashtra), Oct 12 (IANS) In a daring operation, two people robbed Rs.60 lakh from a car transporting a bank's money in Maharashtra Tuesday evening, police said.

The cash, belonging to the Beed District Central Co-Operative Bank, was being taken from Beed to Shirur in a car by three bank officials.

They had withdrawn the cash from the State Bank of Hyderabad, according to Sudam G. Kuchekar of Beed Rural Police.

Around 5.30 p.m., when they were speeding along the Beed-Shirur highway, around 25 km from here, they were waylaid by two people on a motorcycle. As the vehicle was forced to stop, two people threw red chilli powder, blinded the bank officials and decamped with the cash.

The bank officials informed the local and district police authorities about the highway robbery even as top officials rushed to the scene of the crime.

The police have sealed off all entry-exist points in a bid to nab the culprits.

Beed is around 425 km to the northeast of Mumbai.

courtesy : sify news

UID data on bank account holders may help prevent money laundering

Indicating its seriousness in utilising the Unique Identity (UID) as a key to financial inclusion, the government is mulling amendments to the Prevention of Money Laundering Act (PMLA) to include UID as proof of identity for mandatory Know-Your-Customer (KYC) norms by reporting entities such as banks.

The Unique Identity Authority of India (UIDAI) is in talks with the finance ministry to make necessary amendments to the PMLA, sources told The Indian Express. UIDAI officials are expected to meet finance ministry officials this week regarding the amendments. “The PMLA requires banks and other reporting entities to maintain a KYC record of all its customers. The amendment of PMLA is essential to make UID as a KYC detail,” the sources said.

According to the current practice under the PMLA, reporting entities — including banking company, financial institution, co-operative banks, housing finance institutions and non-banking financial companies — have to maintain client identification details. While an individual requires to furnish identification documents issued by government authorities — like a PAN, passport, voter’s ID, driving licence, defence ID card or photo ration card — for non-individual accounts of companies, various other documents are required.

courtesy : shruti sreevastava & www.indianexpress.com

RBI sets up expert group for granting new UCB licences

The Reserve Bank of India (RBI) today set up an expert group to study granting of licences to new Urban Co-operative Banks (UCBs), a move that comes a few months after the central bank invited comments on entry of new banks.

The committee under the chairmanship of financial sector expert Y H Malegam would review the regulatory policy on setting up of new UCBs and lay down entry point norms for new UCBs.

As per the terms of reference, the seven-member expert panel would examine whether licensing could be restricted only to financially sound and well managed cooperative credit societies through conversion route.

"It was announced in the Annual Policy Statement 2010-11 to set up a committee comprising all stakeholders for studying the advisability of granting new urban co-operative banking licences under Section 22 of the Banking Regulation Act, 1949," the RBI said in a statement.

It would also make recommendations relating to the legal and regulatory structure to facilitate the growth of sound UCBs especially in the matter of raising capital consistent with cooperative principles, it said.

Besides, it would examine other issues incidental to licensing of UCBs and make appropriate recommendations, it said.

The other members of the high level expert group include National Bank of Agriculture and Rural Development (Nabard) Chairman U C Sarangi, Principal Secretary Co-operation (Maharashtra) S K Goel, National Federation of Co-operative Urban Banks President H K Patil and Indira Gandhi National Open University Director K Elumalai.

Besides, professionals with expertise and experience in co-operative sector will also be drafted in the committee as special invitees, it said.

The panel would review the need for organization of new UCBs in the context of the existing legal framework for UCBs, the thrust on financial inclusion in the economic policy and proposed entry of new commercial banks into the banking space.

In August, RBI announced discussion paper on new banking licences and regulations for the same to foster greater competition.

"The Reserve Bank is considering providing licences to a limited number of new banks. A larger number of banks would foster greater competition, and thereby reduce costs and improve the quality of service," the central bank had said in the discussion paper.
courtesy : The Business Standard

Ahmedabad co-operative bank’s account manager arrested for fraud

After the director of Siddhi Cooperative Bank, the Kalupur police on Friday arrested the account manager of the bank in connection with a fraud involving bogus bank accounts worth Rs40 lakh.

Sources said the bogus accounts were opened to facilitate illegal transaction some of which also involved trading in the stock market.

According to Kalupur police, HM Goswami, a sub-inspector with Kathlal police station lodged a complaint that his brother's account was showing inflated amount, which was later withdrawn. They got to know of this when they received an account statement from Siddhi Cooperative Bank Ltd, Kalupur.

Saraswat Co-op Bank seeks nod for shares with premium

To ensure that its organic and inorganic growth plans are not hamstrung by the limitations of raising core capital that urban cooperative banks face, the Mumbai-headquartered Saraswat Co-operative Bank has moved the Central Government and the Reserve Bank of India for permission to issue shares at a premium to new members.

Currently, co-operative banks can strengthen their core (Tier-I) capital by issuing shares at face value, ranging from Rs 10 to Rs 100, and through plough-back of profits. The capital market is off-limits for them.

Now, the largest multi-state urban co-operative bank (UCB), which has 203 branches spread across Maharashtra, Karnataka, Goa, Gujarat, Madhya Pradesh and Delhi, the bank wants to be able to issue shares at a premium instead of just at face value to substantially augment its capital base.

To be able to double its business to Rs 50,000 crore by March 2016 and also acquire co-operative banks (the bank has zeroed in on five acquisition targets), Saraswat Bank needs growth capital, which is currently a constraining factor, according to Mr Eknath K Thakur, Chairman of the bank.

"Though our book value far exceeds the face value, we cannot raise capital funds through the capital market through initial public offers. We also cannot charge a premium based on book value to new members subscribing to our share capital. Our bank, like most of the UCBs, has become capital starved. We have brought this to the notice of the Central Government as well as the RBI," he said.

To issue shares at a premium, Mr Thakur said, some regulations and laws will need to be urgently amended so that UCBs' growth is not hampered due to capital constraints.

On acquisitions, Mr Thakur said though RBI recently cancelled the licence of Vadodara-based Anyonya Co-operative Bank, Saraswat Bank was still interested in acquiring it as the former sowed the seeds for the co-operative movement in India way back in 1889. He pointed out that while shareholders of India's oldest co-operative bank and the Gujarat Government were for the amalgamation, the employees were opposed to it. Another bank which is on its acquisition radar is the Ichalkaranji UCB.

Between 2006 and 2009, Saraswat Cooperative Bank acquired seven UCBs. These banks had cumulative business of Rs 1,895 crore.

Courtesy : The Hindu Business Line 

Mumbai, Sept. 17

Nilambur Co-operative Urban Bank signs Intellect Core Banking Solution for Cooperative Banks from Polaris

Laser Soft Infosystems has announced that Nilambur Co-operative Urban Bank (NCUB) has signed Intellect Core Banking Solution (CBS) for Cooperative Banks, a comprehensive J2EE & SOA based real time, efficient and integrated core banking system from Polaris. The solution when implemented will enable NCUB customers to avail ATM, Net Banking, Mobile Banking and Remittance services.

The company made this announcement during the trading hours today, 16 September 2010.

courtesy : india infoline limited

No Longer Utopian, Co-op Movement Grows

Worker-owned cooperatives are growing as an alternative business model that puts the people who do the work in control. And they are getting a lot more organized than in the recent past, turning local networks into regional and national organizations.

With the Bay Area still grappling with high unemployment rates and a weak economy, co-op advocates say they have a solution that is gaining momentum.

Membership in the United States Federation of Worker Cooperatives has grown 25 percent per year for the past two years, said Melissa Hoover, executive director of the San Francisco-based group, which recently hosted a national conference for co-op businesses in Berkeley.

She said the majority of growth is in worker cooperatives developed to meet social, economic and community needs, and that the dire nature of the economy and limited government intervention available to help distressed workers have left people looking for grass-roots solutions.

Whereas the co-op movement of the 1960s and 1970s had a more utopian, separatist bent, Hoover said, increasingly what she sees are workers excited about cooperatives as a way to be a part of the economy on their own terms. “People are really open to new ideas,” Hoover said, “and they’re looking for hope.”

Small but growing

Dave Karoly, an organizer with the Network of Bay Area Worker Cooperatives, said the group is trying to compile statistics to

BoB to takeover Memon Cooperative Bank of Mumbai

MUMBAI: Bank of Baroda on Tuesday said it has decided to takeover some asset and liabilities of the city-based Memon Cooperative Bank. 

Approval of government and Reserve Bank of India has been received for the purpose, Bank of Baroda informed the Bombay Stock Exchange. 

The bank will formulate a scheme for the take over which will be subject to further approvals of the appropriate competent authorities, it said. 

Memon Cooperative Bank has 18 branches across Maharashtra and Gujarat. 

RBI, the banking sector regulator, had suspended the operations of the cooperative bank in May last year owing to poor financial health. 

RBI allows takeover of urban co-operative banks in consultation with the state government, as they are jointly regulated by the central bank and the registrar of cooperatives. 

For the year ended March 2010, Bank of Baroda posted a net profit of Rs 3,058.33 crore registering an increase of 37.32 per cent over the previous fiscal. 

Total income rose to Rs 5,120.7 crore for the quarter ended March 31, 2010, from Rs 4,992.4 crore in the same period last fiscal. 

On a year-on-year basis, total business of the bank increased by 24 per cent to Rs 4,16,080 crore. While total deposits increased by 25.2 per cent to Rs 2,41,044 crore, total advances increased by 22.2 per cent to Rs 1,75,035 crore in FY10. 

Gross NPAs of the bank have increased by Rs 558 crore to Rs 2,400.69 crore as on March 2010 from Rs 1,842.92 crore in the previous year, reflecting a slow adjustment of Indian industry.

Courtesy : The Economic Times