#IOB to give collateral free loans to 100 budding women entrepreneurs

Naturals unisex hair and beauty salon has signed Memorandum of Understanding (MoU) with Indian Overseas Bank(IOB) recently. Through this partnership, IOB will provide collateral free loan to 100 budding women entrepreneurs as an initiative to promote women empowerment and support their aspirations in the field of beauty.

#IOB to give collateral free loans to 100 budding women entrepreneurs pic.twitter.com/ZASoldS7aR
— Press Release Watch (@PrReleaseWatch) December 23, 2014

This partnership with IOB will enable 100 women to avail free loans upto 40 lakhs to open a Naturals salon outlet. This amount can be used for setting up the salon interiors, equipments, products, rental deposits, signage and marketing activities.
Naval Gupta, General Manager – IOB said,” We have extended our partnership with Naturals as we believe that this will help aspiring women showcase their hidden talent and unshackle themselves from the worries of investment.

Indian Overseas Bank opens new branch in #Bengaluru

Indian Overseas Bank opens new branch in #Bengaluru pic.twitter.com/aR2mslaRmf
— Press Release Watch (@PrReleaseWatch) November 22, 2014

Meenakunte Branch of Indian Overseas Bank was inaugurated on 21.11.2014 by Shri. Atul Agarwal, the Executive Director of the Bank. In the presence of Smt. Geetha Chandrappa, Chairman, Chikkajala Village Panchayat. Bank’s Director Shri. Chinnaiah and other Executives of the bank were present.

Celebration of International Women’s Day by Indian Overseas Bank

Indian Overseas Bank, leading Public Sector Bank with a PAN –INDIA presence of over 3250 outlets, with  225 branches in Karnataka is celebrating the year 2013-14 as the year of Women Empowerment with special focus on youth.

In consonance with the above corporate policy Bangalore Region has celebrated the International Women’s Day function in a novel and appealing way.

Bank has a wide gamut of products and services to cater to the needs of all the citizens with special focus on women beneficiaries with a host of value additions for example Indian Overseas Bank is unique in offering Housing Loan to women borrowers at a special concessionary rate of 10.25% irrespective of the quantum of the loan availed. Women Entrepreneurs receive priority in disbursal of MSME and other Employment and Income Generating Activities.
In tune with the women centric focus of the Bank, Bangalore Metro City has 2 exclusive all women branches at Basavanagudi & Nagashettihalli where staff render quality service which has received special acclaim from citizens of the area.

Bank utilized the occasion to honor women achiever’s who have contributed in their own ways to the welfare of the society. Eminent Ophthalmologist from Nethradama Super Speciality Eye Hospital, Dr. Sumana Shree, Dr Padmini Prasad the renowned Gynecologist, Smt. Usha Rani Jamadagni a senior director with M/s Xerox Services a leading US based MNC,  Smt. Laitha Rao Sahib a successful woman entrepreneur in the field of nutricare with well known brand name “UDUPI RUCHI”  and several other women entrepreneurs were felicitated.
Shri C S Vasantha Kumar, General Manager- National Banking spoke about the need for celebrating International Womens Day especially in the present context of increasing atrocities against women and also the prevailing atmosphere of insecurity.
 Shri K Anil, Chief Regional Manager of Bangalore region of the Bank dwelt at length on the various developmental initiatives taken by the Bank especially during the last 3 years under the inspiring leadership of Dr M Narendra, Chairman & Managing Director, who assumed reins of the Bank from 01.11.2010. Bank’s total business mix has more than doubled during the last three years to reach more than Rs. 4 lakh crores at present. He brought out several salient women centric schemes of the Bank like Sagarlakshmi (Scheme for financing fisherwomen), Bhoomishakti (Special Scheme for women farmers), special housing finance scheme for women housing loan borrowers with competitive interest rate of 10.25% irrespective of the quantum etc.
Dr Padmini Prasad the renowed gynecologist spoke for the need to render equal oppurtunities for women in all walks of life and especially appealed to avoid discrimination in favour of male child. Dr Sumana Shree the CEO of Nethradama Super Speciality Eye Hospital has delivered a thought provoking address emphasing the need for women to have their own private space and time amidst all their other commitments.
 Smt. Usha Rani Jamadagni, Senior Director of M/s Xerox Services, the well known US based MNC urged women to excel in their professions and also keep high level of self confidence in all situations.
The programme was concluded with an appealing cultural programme by women staff members of the Bank.

Inauguration of new rural branch by Indian Overseas Bank

“About 65% of the branches of the bank in rural /semi urban areas focusing on financing rural activities like farming, village cottage industries” said Dr. M. Narendra , Chairman and Managing Director of Indian Overseas Bank ,while inaugurating a rural branch at Ghati Subramanya . IOB has opened 156 branches during the year and propose to open 270 more branches before March 2014 said Dr. M. Narendra.
Mr. K. Anil, Chief Regional Manager of the Bank explained the various schemes of the bank and the excellent customer service of the bank to the rural poor.
Shri Chinnaiah, newly appointed Director of the bank inaugurated the ATM of the bank and appreciated the excellent growth achieved by the bank under the leadership of Dr. M. Narendra.
Loans amounting to Rs.12 crores were distributed to 33 beneficiaries on the occasion. The bank also donated a water cooler to the temple for the benefit of devotees visiting the temple.
Mr. C. S. Vasantha Kumar, NBGM requested the people to provide an opportunity to the bank to improve the financial position of the rural folk.
The meeting ended with the vote of thanks by Ms. Pushpalatha, Manager, IOB.

Chamber of Indian Micro Small & Medium Enterprises (CIMSME) signed MOU with Indian Overseas Bank

Chamber of Indian Micro Small & Medium Enterprises (CIMSME) has signed a Memorandum of Understanding (MOU) with Indian Overseas Bank for faster credit delivery to MSME/Industries at New Delhi.
Under this arrangement, CIMSME will identify the Entrepreneurs, source the proposals, do Due Diligence and forward the proposals to the Bank for their timely decision.
The MOU was signed in the presence of Dr. M Narendra, Chairman and Managing Director, Indian Overseas Bank. The MOU was signed by Sh. Yogaish Chand Jain, General Manager, Indian Overseas Bank and Sh. Mukesh Mohan Gupta, President, CIMSME. The other senior officers of the Bank and the Chamber were also present.

Moody's downgrades 11 banks' subdebt ratings in India on increased bail-in risk

Moody's Investors Service announced today that it has downgraded the subordinated debt (subdebt) and junior subordinated debt ratings of 11 Indian banks. The banks' senior obligation ratings and their stand-alone baseline credit assessments were not affected.

Moody's removed one to two notches of the two to three notches systemic support uplift previously incorporated in the public sector banks' subdebt and junior subdebt ratings, concluding a review started on 3 June 2013. Moody's also removed the one notch support uplift incorporated in the private sector banks' subdebt and junior subdebt ratings.

The 11 banks affected are 8 public sector banks (with a minimum 51% government shareholding) and three private sector banks:

Public Sector Banks

- Bank of Baroda (deposits Baa3 stable, BFSR D/BCA ba2 negative)

- Bank of India (deposits Baa3 stable, BFSR D/BCA ba2 negative)

- Canara Bank (deposits Baa3 stable, BFSR D/BCA ba2 negative)

- IDBI Bank Ltd (deposits Baa3 stable, BFSR D-/BCA ba3 stable)

- Indian Overseas Bank (deposits Baa3 negative, BFSR D-/BCA ba3 negative)

- State Bank of India (deposits Baa2 stable, BFSR D+/BCA ba1 stable)

- Syndicate Bank (deposits Baa3 stable, BFSR D/BCA ba2 negative)

- Union Bank of India (deposits Baa3 stable, BFSR D/BCA ba2 negative)

Private Sector Banks

- Axis Bank Limited (deposits Baa2 stable, BFSR D+/BCA baa3 stable)

- HDFC Bank Limited (deposits Baa2 stable, BFSR D+/BCA baa3 stable)

- ICICI Bank Limited (deposits Baa2 stable, BFSR D+/BCA baa3 stable)

RATINGS RATIONALE

Moody's downgrade reflects the increasing international trend of imposing losses on holders of subdebt securities (creditor "bail-in") as a pre-condition for distressed banks to receive government support. As a consequence, Moody's assumes that Indian government support is less likely to be forthcoming for the holders of such securities.

"The global financial crisis has demonstrated that support can be provided selectively, with the costs being shared with subordinated creditors of a bank, without triggering any contagion, as it was previously feared", says Gene Fang, a Vice President at Moody's.

Moody's analysis observes that India has a modern and progressive approach to bank regulation. There is no explicit legal power allowing Indian regulators to selectively impose losses on subdebt holders outside of a liquidation process. However, as a member of the G20 and Financial Stability Board (FSB), India could move towards adopting a bank resolution framework which imposes losses on subordinated debt holders.

On balance, Moody's assumes that Indian government support will be less likely in the future. Nevertheless, we believe for public sector banks a high probability of support is still justified, resulting in a one notch subdebt rating uplift. This is an exception to the general assumption in our methodology that support should be removed from subordinated debt ratings. In contrast, we assume that the probability of support for private sector banks is now low-to-moderate from high before, which is no longer sufficient to result in a rating uplift at their current baseline credit assessments.

This rating action relates only to Moody's view on the potential for systemic support for the banks' junior securities. It does not reflect any change in the banks' intrinsic credit quality or in the support assumptions for issuer or senior debt ratings.

BACKGROUND

In recent years, losses have been imposed on the holders of junior securities during the resolution of troubled banks in crisis-hit countries. In the majority of cases, investors have suffered losses as a result of distressed exchanges, which do not necessarily require a developed resolution framework to be in place. Furthermore, experience has shown that such a framework can be developed quickly at times of stress.

As a consequence, Moody's approach globally is now to assume, as a starting point, that no government support would be extended to the subordinated debt holders of a distressed bank, except where particular circumstances justify.

In the case of Indian banks, Moody's concluded that the unique role of public sector banks in implementing Indian government policy, as well as recent government capital provided to the banks, merited a continued level of support, though at a lower level than previously assumed. In parallel, we also lowered the support assumption for private sector banks to moderate. At the lower level of support and current baseline credit assessments (BCA) of Indian private sector banks, the subordinated and junior subordinated debt ratings would not receive additional government support. Therefore, the subordinated and junior subordinated debt ratings are lowered to reflect the new methodology.

A detailed rationale explaining our decision can be found in our upcoming special comment entitled "The World Has Changed: the Support Probability for Bank Subordinated Debt in Asia-Pacific Has Significantly Diminished".

RATINGS AFFECTED

Axis Bank Limited, DIFC Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

Axis Bank Limited, Hong Kong Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

Axis Bank Limited, Singapore Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt rating downgraded to Ba2 (hyb) from Ba1 (hyb). The outlook on the new rating is stable.

Bank of Baroda, London Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency subordinated debt rating downgraded to Ba2 from Ba1. The outlook on the new rating is negative.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba3 from (P)Ba2.

Bank of India:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

Bank of India, London Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency subordinated debt rating downgraded to Ba2 from Ba1. The outlook on the new rating is negative.

Bank of India, Jersey Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba3 from (P)Ba2.

Canara Bank, London Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba3 from (P)Ba2.

-- Long-term foreign currency junior subordinated debt rating downgraded to Ba3 (hyb) from Ba2 (hyb). The outlook on the new rating is negative.

HDFC Bank Limited:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

HDFC Bank Limited, Bahrain Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

HDFC Bank Limited, Hong Kong Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

ICICI Bank Limited:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

ICICI Bank Limited, New York Branch:

-- Long-term local currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term local currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

ICICI Bank Limited, Bahrain Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt rating downgraded to Ba2 (hyb) from Ba1 (hyb). The outlook on the new rating is stable.

ICICI Bank Limited, Dubai Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

ICICI Bank Limited, Hong Kong Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

ICICI Bank Limited, Singapore Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

IDBI Bank Ltd:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba3 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)B1 from (P)Ba2.

IDBI Bank Ltd, DIFC Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba3 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)B1 from (P)Ba2.

Indian Overseas Bank:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba3 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)B1 from (P)Ba2.

Indian Overseas Bank, Hong Kong Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba3 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)B1 from (P)Ba2.

State Bank of India:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

State Bank of India, Hong Kong Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

State Bank of India, London Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

State Bank of India, Nassau Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba1 from (P)Baa3.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

Syndicate Bank:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba3 from (P)Ba2.

Syndicate Bank, London Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba3 from (P)Ba2.

Union Bank of India:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba3 from (P)Ba2.

Union Bank of India, Hong Kong Branch:

-- Long-term foreign currency subordinated debt program rating downgraded to (P)Ba2 from (P)Ba1.

-- Long-term foreign currency junior subordinated debt program rating downgraded to (P)Ba3 from (P)Ba2.

The principal methodology used in these ratings was Global Banks published in May 2013.