The Reserve Bank of India has imposed a penalty of Rs 41.8 lakh on Canara Bank for non-compliance with KYC norms and incorrect account classification, and Rs 3.1 lakh on Puran Associates Pvt Ltd for asset classification violations.
A significant fraud involving the theft of gold ornaments and their replacement with fake jewellery has been discovered at a Canara Bank branch in Jalna district, Maharashtra. The alleged fraud amounts to Rs 7.31 crore.
The Canara Bank on Thursday informed the Bombay high court that it has withdrawn its order classifying as "fraudulent" the loan account of a firm linked to industrialist Anil Ambani. After the bank's disclosure, a bench of Justices Revati Mohite Dere and Neela Gokhale disposed of the petition filed by Ambani challenging the bank's order, saying nothing survives in it.
Canara Bank proved a strong mover, surging 7.4% to Rs 63.15 in morning trades on Tuesday, after the bank said net profit jumped 83% for the third quarter ended 31 December 2002.
'Afterwards, some improvement is expected.'
The National Company Law Tribunal (NCLT) has approved media baron Subhash Chandra's personal insolvency resolution plan, which proposes to pay Rs 6.5 crore against admitted creditor claims of approximately Rs 22,006.57 crore, despite allegations from dissenting lenders that five family-linked entities controlled 61.78 per cent of the voting share.
And will sell its 50 per cent stake to State Bank of India in Russia as part of rationalisation of overseas branch network.
Subhash Chandra hoped that the lenders would discuss the matter with the borrowers, reconcile the outstanding accounts, and get paid by the borrowers.
Both Allahabad Bank and Canara Bank are in the race to acquire United Western Bank, UWB. C Mahajan, CMD of Allahabad Bank and MBN Rao, CMD of Canara Bank extrapolate on the benefits of taking over UWB. \n\n
'Resolution plan with this much haircut is totally unviable.'
Indian banks anticipate a reduction of up to 50 basis points in their funding costs due to a surge in liquidity from robust Foreign Currency Non-Resident (Bank), or FCNR (B), flows, lessening their reliance on more expensive certificates of deposit (CDs).
Aiming at about Rs 1,60,000 crore business this fiscal, Canara Bank will soon upgrade its Hong Kong subsidiary into a branch and open representative offices in China and Dubai.
Canara Bank on Wednesday announced 0.5-0.75 per cent cut in housing loans rates to 8.5-9.25 per cent with monthly installment payments coming down to Rs 911 per lakh for 20-year loan from February.
Canara Bank, India's second largest public sector bank, is all set for an aggressive play in the venture capital business.
Sources clarify that the NCLT's approval of a repayment plan for Essel Group founder Subhash Chandra does not signify a 99.97 per cent write-off of Rs 22,000 crore in bank loans, as the figure represents claims against him as a personal guarantor, not debt personally borrowed.
Following the footsteps of State Bank of India and ICICI Bank, Canara Bank has classified its loan to Dabhol Power Company as a non-performing asset.
Canara Bank on Thursday indicated a 0.25 per cent cut in home loans taken from the bank for a period upto 10 years, showing that the home loan rates might not have bottomed out yet.
Canara Bank is expected to list its shares in major bourses on a positive note this week as the bank's Rs 385 crore initial public offer was overscribed by 1.9 times.
Canara Bank on Wednesday reported a net profit of Rs 1,338 crore (Rs 13.38 billion) during 2003-04, up by 31.31 per cent over Rs 1,019 crore (Rs 10.19 billion) in the previous fiscal.
Canara Bank entered into an agreement with AVIVA Life Insurance Co Pvt Ltd to act as corporate agent for selling AVIVA life insurance products without risk participation.
Essel Group Chairman Subhash Chandra has challenged the National Company Law Tribunal's (NCLT) decision to form a five-member bench to hear his personal insolvency case, arguing that the tribunal lacks the power to constitute such a bench. This comes after a split verdict and a subsequent stay on an order allowing him to settle claims.
A special five-member NCLT bench has issued notices to all parties in Subhash Chandra's personal insolvency case and directed the Essel Group Chairman not to alienate his properties, either directly or indirectly, following a split verdict on a repayment plan.
Canara Bank may look to divest another 22 per cent of government stake during the next round of capital restructuring that is likely to take place by the end of the current year, its Chairman and Managing Director R V Shastri said on Monday.
"Canara Bank is the lead banker of lenders' consortium to DCH and the bank is conducting forensic audit of DCH," Financial Services Secretary D K Mittal told reporters.
Sources close to the development said the chairmen of both banks would meet shortly, after which the matter would be taken up by the respective boards and employees would be consulted.
Canara Bank has put on hold its plan to sell non-performing assets with realisation value of around Rs 250 crore (Rs 2.5 billion) after lukewarm response from asset reconstruction companies (ARCs).
Canara Bank has reduced the floating and fixed home loan interest rates, as also rates of auto loans and other personal loan products, with effect from Wednesday.
State-run Canara Bank on Monday reported its fourth-quarter net profit rose 12 per cent from a year earlier, driving its shares higher in a subdued market.
Canara Bank said it received government approval to raise Rs 5000 million towards tier II capital.
In the draft norms issued last month, the RBI said that the ultimate responsibility for the bank's performance, conduct and control rests with the Board
Honouring a cheque bearing forged signature would amount to deficiency in service of a bank, which would have to pay compensation to account holder for the monetary loss, a consumer court said.
Sixteen people, including two gold appraisers, have been booked for allegedly securing loans worth lakhs of rupees against counterfeit gold from a bank in Prayagraj.
After a gap of about five years, a public sector bank (PSB) has decided to rope in a cricketer to boost its brand.
The CBSE revaluation portal experienced a cyber attack, affecting the payment system and leading to unauthorised access for approximately 50 students. The incident caused fee display abnormalities, prompting investigations and system enhancements.
Gujarat's Gir Somnath police have busted a massive cyber fraud racket involving over Rs 310 crore in suspicious transactions through mule bank accounts, arresting five individuals. This operation, part of the state-wide "Operation Mule Hunt 2.0," is considered the district's largest cybercrime case to date, aiming to recover victims' money and curb illegal account rentals.
Indian stock markets are expected to remain highly sensitive to geopolitical developments, particularly the US-Iran situation, and crude oil prices this week, with analysts also highlighting the influence of the rupee-dollar trend, foreign investor activity, and upcoming inflation data.
Led by the country's biggest lender State Bank of India (SBI), public sector banks logged a record cumulative profit of Rs 52,603 crore in the third quarter of the current fiscal, reflecting an 18 per cent year-on-year growth.
The Uttar Pradesh Police have filed an FIR against a former additional district magistrate, company representatives, and bank officials in connection with an alleged land scam worth around Rs 400 crore in Kanpur Dehat district.
A special court in Mumbai has denied bail to Pune businessman Amit Thepade in a Rs 117-crore money laundering case, citing the serious threat economic offences pose to the country's financial health. The court highlighted substantial evidence linking Thepade to the crime under the Prevention of Money Laundering Act (PMLA).
