United Bank Of India Report, United Bank. ‘United Bank of India announced reduction in interest on ‘Car Loans’ by one percent on the card rates up to December 31, 2009, and to add to the toppings, it also announced waiver of processing fees on car loans during the period,’ the release added.
Rs 15,000 crore capital boost
If 2009 witnessed private sector lenders tapping the equity market for capital, 2010 will see a host of government-owned banks boosting their equity capital to cater to the growing economy’s credit requirement and adhere to global norms. The government is expected to pump in around Rs 15,000 crore with the help of multilateral loans.
Additional capital is being provided to help banks grow faster since there is a cap on government holding falling below 51 per cent. Already, State Bank of India, Uco Bank, Central Bank of India and Vijaya Bank have got a capital booster. Next year may witness equity infusion by the government, which will result in an increase in the Centre’s holding in Bank of Baroda, Oriental Bank of Commerce and Dena Bank, among others. In addition, the remaining unlisted public sector banks — United Bank of India and Punjab & Sind Bank — will tap the capital market with initial public offers.
At least two mergers are expected to be completed next year. State Bank of India is expected to merge State Bank of Indore with itself in early part of the year. Next up will be the Federal Bank-Catholic Syrian Bank merger. The government is also likely to move on consolidation of public sector banks.