Banking Current Affairs 2015

IndusInd Bank acquires RBS’ bullion financing business for Rs 4,100 crore

IndusInd Bank has acquired the diamond and jewellery (bullion) financing business and related deposit portfolio of Royal Bank of Scotland (RBS) for 4,100 crore rupees on 28 July 2015.

Britain’s largest public bank Royal Bank of Scotland (RBS) was in talks with IndusInd Bank to sell off its bullion financing business and had signed a non-binding agreement in April 2015.

According to the agreement RBS’s employees within the diamond and jewellery clients in India would be transferred to IndusInd Bank.

RBS in 2008, had acquired ABN AMRO Bank the oldest banks in diamond and jewellery financing and started dealing in bullion financing in India through RBS Mumbai branch.

The reason behind this sell-off comes on the back of RBS’s decision in 2013 to exit its banking operations from India and to consolidate its business in UK and Western Europe.

However, it has decided to retain its back-office operations in India and has moved over 60 back-offices roles from the UK to India that has workforce of 12,000 people.

Prior to RBS’s decision it had shut down its 23 out of 31 branches in India and had also sold off its credit card business, commercial banking portfolios and mortgage business  to Ratnakar Bank Ltd (RBL) Bank in 2013.

Note: The partnership agreement with ABN AMRO and RBS’ global knowledge and its ready bullion financing loan book of 4,500 crore rupees will help IndusInd to engage with the customers in the industry globally.

Tags:

CSC and HCL forms joint venture to provide technology services, solutions to banks

Computer Science Corporation (CSC) and Hindustan Computer Limited (HCL) to big IT companies have signed an agreement to form a new company to provide technology services and solutions to the banking industry.

In the joint statement the partners said that their main focus will be on platform modernisation, product functionality enhancement and to capitalise their capabilities in addressing global core banking software market.

According to the agreement CSC that serves in 15 countries with 100 premier banking and financial services clients, will provide its core banking expertise for software and product development.

Whereas, HCL will provide funds, it’s banking sales and client engagement expertise and also its experience in product engineering and application implementation services in order to modernise the banking industries.

The two entities have agreed to work in accordance to meet the increasing demands for data analytics services, regulatory compliance and multi-channel deployments from the banking industries.

About CSC:

Computer Science Corporation (CSC) founded in 1959 is an American MNC having presence in 70 countries that provides information technology (IT) services and professional services.

It has consistently maintained its presence in Fortune 500 company list since 1995 and has bagged 185th rank in 2014 list.

About HCL:

Hindustan Computer Limited incorporated in 1991 by Shiv Nadar and Arjun Malhotra is an Indian global IT services company that provides services across 31 countries in software consultation, as an independent software vendor, remote infrastructure management, Life science and Health care, logistics and many other service sectors.

It is among Forbes Asia’s Fab 100 companies and is also among the India’s Top 20 largest publicly traded companies.

Tags:

IDFC gets banking licence from RBI

Infrastructure Development Financing Company (IDFC). Ltd became second lender to enter the banking sector since 2004, as the Reserve Bank of India granted Banking licence on 24 July 2015.

It was Yes Bank that got banking licence in 2004. However, IDFC and Microfinance Company Bandhan Financial Services Pvt Ltd were granted preliminary bank permits by RBI in April 2014 and Bandhan got Banking licence from RBI in June 2015 and plans to start its operations from August 2015, whereas IDFC plans to start operations from 1 October 2015.

IDFC will start its operations with 20 branches and with initial loan book of 55,000 crore rupees.

About IDFC

IDFC is a leading public limited infrastructure finance company that provides end to end infrastructure financing and project implementation services. It was incorporated in 1997 with main motive to provide finance for infrastructure projects and advisory services for asset management and investment banking. Its independent director is ex- Comptroller and Auditor General (CAG) of India Mr. Vinod Rai.

Tags:

Advertisement