India

Commenting on the move, bank’s Chairman and Managing Director MV Nair ,in a report in Business Standard, said: “These are difficult times. So, we want to save cost. In addition, though we are hiring, it takes time before the staff is properly trained to be posted at new branches”. The bank’s operating expenses increased to Rs 543 crore ($115.53 million) in June 2009 against Rs 416 crore ($88.51 million) in June 2008 - an increase of 35 per cent year-on-year, mainly due to implementation of project Nav Nirman, a scheme launched by Nair to put Union Bank among the top three public sector banks by 2012.The Mumbai-based bank was one of the few banks in the country which had chalked out major expansion plans. In comparison, other banks such as the State Bank of India, ICICI Bank and IDBI Bank are planning to add more than 500 branches in 2009-10. These three banks will go ahead with their expansion plans.In contrast to the Union Bank’s jeremiads of difficult times, an IDBI Bank executive said “Recruitments are less costly now. In addition, it is a good time to enter into property lease agreements as rates will go up soon”. Between April and December this year, IDBI Bank plans to add 200 new branches and will open the remaining branches in the fourth quarter. At the end of March, the erstwhile development financial institution had 595 branches.

Amid reports that talks with Standard Chartered Bank failed over valuation of the assets, ABN Amro bank’s spokesperson said: “RBS is in ongoing discussions with bidders for the remaining assets it has decided to sell in Asia and will make further announcements, as appropriate, in due course” . ABN Amro Bank, was acquired by RBS in 2007, according to a report in The Statesman.ABN Amro’s dismal $1319 profit per employee figure and NPAs amounting to 2.2 % of its assets in 2008-09 compel RBS to talk to bidders. According to RBI data on comparative performance of banks, ABN Amro did not do well on various parameters as compared to other major foreign banks operating in India. Among the important performance parameters, it witnessed a sharp decline in profit per employee to Rs 0.62 lakh ($1319) in the year of 2008-09 from the Rs 7.66 lakh ($16,298) in the previous year. The business per employee figure is an indicator of the efficiency and productivity in a company. For ABN Amro its amount is significantly below the average of Rs 24.78 lakh ($52,723) recorded by 30 foreign banks operating in the country. Besides, low employee profitability, ABN Amro Bank also witnessed sharp increase in its net non-performing asset (NPA) ratio, suggesting a sharp spurt in bad loans. The net NPAs of the bank rose to 2.2 per cent of its assets in 2008-09 from 0.85 per cent, which is only a shade better than the crisis-ridden Citibank.

Presently a corporate agent of LIC, the public sector lender has now formed a joint venture with UK-based Legal and General Plc Insurance Co and public sector Bank of Baroda (BoB) for the launch of its new life insurance products. In a report in the Business Standard, Andhra Bank Chairman and Managing Director RS Reddy said, “The joint venture is going through formalities. We expect some products to be ready in the first quarter of the next financial year.” The venture will focus on creating new products mainly for the rural markets. “Legal has a long product range,” he said, adding both Andhra Bank and Bank of Baroda have an experience in bancassurance and an established network in rural markets.

Phenomenal growth in its United Arab Emirates operations has left the Bank of Baroda (BoB) eager to expand operations in the area.

Talks between Standard Chartered PLC and Royal Bank of Scotland Group PLC (RBS) for the sale of RBS' assets in India, China and Malaysia seem to have flopped due to disagreements in pricing, according to a report in the Wall Street Journal.

MCB Bank Limited will acquire 99.37 percent of the ordinary share capital in The Royal Bank of Scotland Limited from its major shareholder and sponsor ABN Amro Bank N.V.

Roughly about 80 million seniors in India are being persuaded by banks to avail of customised products.

Wincor Nixdorf executive Ricardos Khoury said State Bank of India plans to install 1,000 more branches and upgrade its services.

In the next two to five years, SocGen is set to add services to existing locations in India and to acquire 37 percent stake in SBI Funds Management.

Part of PNB's expansion overseas includes tapping Kazakhastan market.

Concerns prompted Indian government to look for details of the merger.

ICICI enters a US$80 million joint venture deal with First Data.

The partnership would enable DBS to offer Aviva services to high net worth customers in India.

Zarai Taraqiati Bank made an unprecedented recovery during the previous year with an increase in profit by US$24.14 million from approximately US$6 million in the previous year.

Dhanalakshmi Bank is leveraging technology to spread its footprint across the country with its new Internet banking services.

Personalised service to Sri Lankan overseas workers allowed Seylan Bank to disburse US$110.48 million in remittances in the first semester.