Source:BL Bureau::New Delhi, Aug. 31
Those hoping that the Government will be able to get details of secret bank accounts from Switzerland are in for disappointment.
The latest protocol amending the Double Taxation Avoidance Agreement (DTAA) between India and Switzerland says only prospective information can be shared, not past information. The protocol was signed on Monday. It will come into operation only after the Swiss side completes certain internal processes.
he protocol paves the way for sharing of banking information between the two sides to enable enforcement of domestic tax laws.
Under the existing DTAA, India was not able to obtain banking information from Switzerland.
“There is a specific provision for providing banking and ownership information. The new provision will be applicable only for prospective information and not for past information,” Mr Pranab Mukherjee, Finance Minister, told the Lok Sabha on Tuesday while making a statement on the protocol.
Mr Mukherjee said: “Please remember that this is an agreement between two sovereign countries. They are not subordinate to us. We shall have to agree (to) whatever concession we get.”
The Finance Minister turned down the BJP leader, Mr L.K. Advani's suggestion that the House take up today for discussion the details of the protocol and its implications. Mr Mukherjee, however, offered to discuss the matter in the next session, adding that it was important to have a discussion as this issue will come up before Parliament time and again.
The protocol will amend the Article on Exchange of Information to bring it in line with international standards. Under the new article, the information exchange is to be used only for tax purposes. However, it also provides for use of information for purposes allowed under the laws of both the countries and if the competent authority of the supplying State authorises such use. There is also a specific provision to ensure that information will be exchanged even if there is no domestic interest.
Currently, the income from international shipping is not covered under the DTAA. There will now be residence-based taxation for shipping income from international traffic.
Recognised pension fund or scheme will also be able to get the benefit of India-Swiss DTAA.
krsrivats@thehindu.co.in
Thursday, September 2, 2010
Corporation Bank, United India team up
Source: BL:Mangalore, Sep,2,2010
Corporation Bank has signed a memorandum of understanding (MoU) with United India Insurance Company Ltd to create awareness and to market and distribute micro-insurance products through business correspondents engaged by the bank.
A bank release said here on Wednesday that in addition to basic financial services, Corporation Bank, through this understanding with United India Insurance Company Ltd, intends to provide non-life micro-insurance and health insurance products through smart cards facilitating customers to avail these insurance products from their own villages.
Mr K. Rama Murthy, General Manager, Corporation Bank, and Mr K. Sanath Kumar, General Manager, United India Insurance, signed the MoU in the presence of Mr G. Srinivasan, Chairman and Managing Director, United India Insurance, at Chennai recently, the release said.
Corporation Bank has operationalised over 1,300 ‘Corp Grameena Vikas Kendras' (branchless banking terminals) to provide banking facilities to financially excluded people in rural and urban areas, it added.
Corporation Bank has signed a memorandum of understanding (MoU) with United India Insurance Company Ltd to create awareness and to market and distribute micro-insurance products through business correspondents engaged by the bank.
A bank release said here on Wednesday that in addition to basic financial services, Corporation Bank, through this understanding with United India Insurance Company Ltd, intends to provide non-life micro-insurance and health insurance products through smart cards facilitating customers to avail these insurance products from their own villages.
Mr K. Rama Murthy, General Manager, Corporation Bank, and Mr K. Sanath Kumar, General Manager, United India Insurance, signed the MoU in the presence of Mr G. Srinivasan, Chairman and Managing Director, United India Insurance, at Chennai recently, the release said.
Corporation Bank has operationalised over 1,300 ‘Corp Grameena Vikas Kendras' (branchless banking terminals) to provide banking facilities to financially excluded people in rural and urban areas, it added.
SBI’s Israeli branch breaks even in 2nd year of operation
Source:BL:PTI:Sep02,2010:3.28pm
TEL AVIV: State Bank of India’s branch here has broken even in its just second year of its operations, defying speculations by some analysts who saw it as an unwise move to open a branch at a time when other foreign banks were shutting down their offices in the country.
SBI became the first bank to open a branch at the Israeli diamond exchange in June 2007 to encash on the burgeoning Indo-Israel trade.
Sources at Bank of Israel confirmed SBI’s remarkable progress, and also executives of other Israeli companies working with the Indian bank.
After fulfilling all obligations and paying desirable taxes to the authorities concerned, the Indian bank still seems to have made an incredible progress by registering some profits during its early years of operations.
“It has set an example for other foreign banks to follow,” a senior executive of a leading Israeli company doing business with India, said.
The outgoing CEO of SBI, Ms V. Sashikala, while speaking to PTI did not comment on this but said that “the bank has managed to successfully prepare its client base across various sectors and as per its strategy made sure that there is no overwhelming rel iance on one particular sector.’’
Indo-Israel trade has been diversifying over the years and even though trade in diamond still constitutes some 50 per cent of the bilateral trade, other sectors have picked up in a big way. The bilateral trade between the two countries continues to incre ase registering $4 billion in 2008 and is projected to reach $5 billion this year.
“None of the sectors can claim a share of more than 20 per cent in our portfolio,” Ms Sashikala said.
TEL AVIV: State Bank of India’s branch here has broken even in its just second year of its operations, defying speculations by some analysts who saw it as an unwise move to open a branch at a time when other foreign banks were shutting down their offices in the country.
SBI became the first bank to open a branch at the Israeli diamond exchange in June 2007 to encash on the burgeoning Indo-Israel trade.
Sources at Bank of Israel confirmed SBI’s remarkable progress, and also executives of other Israeli companies working with the Indian bank.
After fulfilling all obligations and paying desirable taxes to the authorities concerned, the Indian bank still seems to have made an incredible progress by registering some profits during its early years of operations.
“It has set an example for other foreign banks to follow,” a senior executive of a leading Israeli company doing business with India, said.
The outgoing CEO of SBI, Ms V. Sashikala, while speaking to PTI did not comment on this but said that “the bank has managed to successfully prepare its client base across various sectors and as per its strategy made sure that there is no overwhelming rel iance on one particular sector.’’
Indo-Israel trade has been diversifying over the years and even though trade in diamond still constitutes some 50 per cent of the bilateral trade, other sectors have picked up in a big way. The bilateral trade between the two countries continues to incre ase registering $4 billion in 2008 and is projected to reach $5 billion this year.
“None of the sectors can claim a share of more than 20 per cent in our portfolio,” Ms Sashikala said.
IDBI Bank waives service charges on current and savings accounts
IDBI Bank waives service charges on current and savings accounts
Source:Business Line Bureau:Mumbai: Sep 2,2010
IDBI Bank has waived all charges on a host of services for its current account and savings bank account (CASA) customers in a bid to grow low-cost deposits, retain customers and attract new ones.
The waivers are for ATM interchange fee and charges related to average balance, cheque book, demand draft, electronic funds transfer, electronic clearing service, account statement and others.
The public sector bank expects this waiver strategy to help boost its low-cost CASA deposit base to around 20 per cent of the total deposits in the next six months, from 13 per cent now.
One of the highlights of the service-charge waiver is that the bank's customers will be able to access ATMs of other banks any number of time without having to pay a fee.
The other charges that have been removed for CASA customers relate to new card fee, new card issue, cash service, pay order, stop payment, account closure, demand draft issue and cancellation, and standing instruction.
Mr R.M. Malla, CMD, said the fee ceded due to waiver of service charges on CASA accounts will be recouped through gains in business volumes.
“We would rather earn fees on the assets side of the balance sheet by syndicating a Rs 5,000-crore loan and earn Rs 50 crore fees than go after small charges on the liabilities side. Large corporates, mid-corporates and SMEs know us very well. We want to be known as a universal bank that caters to the financial needs of the common man,” said Mr Malla.
Meanwhile, IDBI Bank is considering tapping the equity market in 12-18 months. The bank now has the headroom to tap the market as it recently received capital injection of Rs 3,011 crore from the Government.
Source:Business Line Bureau:Mumbai: Sep 2,2010
IDBI Bank has waived all charges on a host of services for its current account and savings bank account (CASA) customers in a bid to grow low-cost deposits, retain customers and attract new ones.
The waivers are for ATM interchange fee and charges related to average balance, cheque book, demand draft, electronic funds transfer, electronic clearing service, account statement and others.
The public sector bank expects this waiver strategy to help boost its low-cost CASA deposit base to around 20 per cent of the total deposits in the next six months, from 13 per cent now.
One of the highlights of the service-charge waiver is that the bank's customers will be able to access ATMs of other banks any number of time without having to pay a fee.
The other charges that have been removed for CASA customers relate to new card fee, new card issue, cash service, pay order, stop payment, account closure, demand draft issue and cancellation, and standing instruction.
Mr R.M. Malla, CMD, said the fee ceded due to waiver of service charges on CASA accounts will be recouped through gains in business volumes.
“We would rather earn fees on the assets side of the balance sheet by syndicating a Rs 5,000-crore loan and earn Rs 50 crore fees than go after small charges on the liabilities side. Large corporates, mid-corporates and SMEs know us very well. We want to be known as a universal bank that caters to the financial needs of the common man,” said Mr Malla.
Meanwhile, IDBI Bank is considering tapping the equity market in 12-18 months. The bank now has the headroom to tap the market as it recently received capital injection of Rs 3,011 crore from the Government.
Appointments of 8 CMDs of PSU banks get cleared
SOURCE :Prabhakar Sinha, TNN, Sep 2, 2010, 01.03am IST
NEW DELHI: After sitting on the files for the last six months, the finance ministry on Wednesday cleared the appointments of eight CMDs and 12 executive directors of government-owned banks.
Banking secretary cleared the names of eight CMDs. Out of this, four took charge on Wednesday itself. The rest will take charge as and when the posts become vacant.
Arun Kaul, who was the executive director Central Bank, joined as CMD of UCO Bank.
S Raman has joined as CMD of Canara Bank. Prior to this, he was executive director of Union Bank of India. R Pradeep took charge of Corporation Bank as CMD. He was working as executive director of Central Bank.
The fourth banker who took charge on Wednesday is R Ramachandran, who joined Andhra Bank as CMD from Syndicate Bank.
Besides them, the government has also cleared the name of HSU Kamath, who will join Vijaya Bank as chairman on April 1, 2011, when the incumbent chairman will retire. Nagesh Pyadh, who is presently working as executive director of Punjab National Bank will join Oriental Bank of Commerce as CMD on January 1, 2011 after the retirement of the present CMD.
M Narendra will take the top position of Indian Overseas Bank on November 1, 2010. A S Bhattacharya has become CMD of Bank of Maharashtra.
NEW DELHI: After sitting on the files for the last six months, the finance ministry on Wednesday cleared the appointments of eight CMDs and 12 executive directors of government-owned banks.
Banking secretary cleared the names of eight CMDs. Out of this, four took charge on Wednesday itself. The rest will take charge as and when the posts become vacant.
Arun Kaul, who was the executive director Central Bank, joined as CMD of UCO Bank.
S Raman has joined as CMD of Canara Bank. Prior to this, he was executive director of Union Bank of India. R Pradeep took charge of Corporation Bank as CMD. He was working as executive director of Central Bank.
The fourth banker who took charge on Wednesday is R Ramachandran, who joined Andhra Bank as CMD from Syndicate Bank.
Besides them, the government has also cleared the name of HSU Kamath, who will join Vijaya Bank as chairman on April 1, 2011, when the incumbent chairman will retire. Nagesh Pyadh, who is presently working as executive director of Punjab National Bank will join Oriental Bank of Commerce as CMD on January 1, 2011 after the retirement of the present CMD.
M Narendra will take the top position of Indian Overseas Bank on November 1, 2010. A S Bhattacharya has become CMD of Bank of Maharashtra.
Premji's son is Wipro's chief strategy officer
Source :TNN, Sep 2, 2010, 08.35am IST
BANGALORE: It's son-rise at the country's third largest tech firm Wipro Technologies. Despite chairman Azim Premji's constant denials that his elder son Rishad is in line for the top job at the company and will eventually succeed him, Rishad Premji, 34, has been quietly and quickly climbing the corporate ladder. Wednesday's announcement that Premji Jr has been appointed as chief strategy officer ( CSO) for IT services elevates him into the senior management echelon at Wipro with immediate effect.
The new profile takes Harvard educated Rishad into Wipro's 32-strong management team, which includes joint CEOs, vertical business units heads, service lines heads, geography heads and function heads.
Prior to this, he was a general manager treasury and investor relations at the company . He joined Wipro in June 2007 as a business manager and spent a couple of years helping the M&A team.
Rishad Premji had a stint with a global consultancy in Europe before joining Wipro. Having graduated from Wesleyan University in the US, Rishad worked briefly with General Electric before getting himself a management degree from Harvard and joining the consulting firm of Bain & Co in London.
K.R. Lakshminarayana (LAN) has been heading strategy and mergers & acquisition initiatives of the company. With the new reshuffle, the portfolio is cut into two: the strategy (IT services) part will he headed by Rishad while Sridhar Srinivasan, currently general manager (M&A ), will be the interim head of M&A. "We are looking for a new leader for M&A , mostly internally," said Saurabh Govil, sr vice president, Wipro Technologies. LAN will move into a new role in Azim Premji Foundation as chief endowment officer, mostly focusing on funds and financials, from January 2011. " The next four months will be a transition period," added Govil.
Rishad has helped the company evolve its financial services practice by leading two acquisitions and also spearheading Wipro's operating margin improvement initiative. Rishad played a significant role in the acquisition and integration of Citi Technology Services. He has championed some of the company's major non-linear initiatives including acquisition of Gallagher Financial Systems and alliance with Cenlar Financial.
His earlier role involved handling investor relations and maintaining dialogue with Wipro's financial investors and key stakeholders , besides managing the company's treasury.
The move is being seen as a signal of eventual succession plans at Wipro. Though he was brought to Wipro as a normal employee, ever since Rishad joined Wipro, there's been speculation about him being groomed to lead Wipro.
Tariq Premji, Rishad's younger brother, continues to work with the Premji Foundation, which is focussed on providing quality education across primary schools.
BANGALORE: It's son-rise at the country's third largest tech firm Wipro Technologies. Despite chairman Azim Premji's constant denials that his elder son Rishad is in line for the top job at the company and will eventually succeed him, Rishad Premji, 34, has been quietly and quickly climbing the corporate ladder. Wednesday's announcement that Premji Jr has been appointed as chief strategy officer ( CSO) for IT services elevates him into the senior management echelon at Wipro with immediate effect.
The new profile takes Harvard educated Rishad into Wipro's 32-strong management team, which includes joint CEOs, vertical business units heads, service lines heads, geography heads and function heads.
Prior to this, he was a general manager treasury and investor relations at the company . He joined Wipro in June 2007 as a business manager and spent a couple of years helping the M&A team.
Rishad Premji had a stint with a global consultancy in Europe before joining Wipro. Having graduated from Wesleyan University in the US, Rishad worked briefly with General Electric before getting himself a management degree from Harvard and joining the consulting firm of Bain & Co in London.
K.R. Lakshminarayana (LAN) has been heading strategy and mergers & acquisition initiatives of the company. With the new reshuffle, the portfolio is cut into two: the strategy (IT services) part will he headed by Rishad while Sridhar Srinivasan, currently general manager (M&A ), will be the interim head of M&A. "We are looking for a new leader for M&A , mostly internally," said Saurabh Govil, sr vice president, Wipro Technologies. LAN will move into a new role in Azim Premji Foundation as chief endowment officer, mostly focusing on funds and financials, from January 2011. " The next four months will be a transition period," added Govil.
Rishad has helped the company evolve its financial services practice by leading two acquisitions and also spearheading Wipro's operating margin improvement initiative. Rishad played a significant role in the acquisition and integration of Citi Technology Services. He has championed some of the company's major non-linear initiatives including acquisition of Gallagher Financial Systems and alliance with Cenlar Financial.
His earlier role involved handling investor relations and maintaining dialogue with Wipro's financial investors and key stakeholders , besides managing the company's treasury.
The move is being seen as a signal of eventual succession plans at Wipro. Though he was brought to Wipro as a normal employee, ever since Rishad joined Wipro, there's been speculation about him being groomed to lead Wipro.
Tariq Premji, Rishad's younger brother, continues to work with the Premji Foundation, which is focussed on providing quality education across primary schools.
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