Showing posts with label Banks. Show all posts
Showing posts with label Banks. Show all posts

preference shares in india


Share capital of a company is categorized into preference and equity shares. It forms part of net-worth. 


Important terms:
Convertible - owner has a right to convert preference shares into equity shares at a later date. Those which don't carry this option is non-convertible preference shares.

Retractable (also Term Preferred Share) – the owner of the preferred shares have a right, at some period of time, to force the company to buy back their preferred shares.

Cumulative preference shares are preference shares on which the unpaid dividend accumulates as arrears.

Non-cumulative preference shares - if a company does not pay annual dividends then the investor does not have the right to claim any forgone dividends in the future.

Redeemable / Callable – company have the right to force the preferred shares to be sold back to the company at a set price or for an equivalent amount of common shares.


   ->  all rights & limitation are applicable to Public company or a private company which is a subsidiary of a public company. A private company can issue any terms to preference share holders through its Articles of Association. But if the private company goes public then those Preference shares issued with higher rights have to be redeemed or restructured.


Preference shares of a public company carry a preferential right to: 

 i) dividend at a fixed rate or amount,

 ii) repayment of capital in case of winding-up of co. 


 Limitation/obligation 
iii) limited voting rights, only in such matters which affects them, (equity shareholder controls the co.). It may acquire voting rights in situations where dividend is not paid.

iv) they have to be redeemed within 20 yrs from their issue.



 Risks:

Insolvency Risk: It may be questionable whether any assets remain after all other creditors have been paid to go to the preferred shareholders.

Credit risk involves any change in the financial strength of the company as to its ability to pay dividends and repay principal on maturity.


Rate of dividend payable to a foreign company on preference shares issued by an Indian company cannot exceed 300 basis points over the prime lending rate of the State Bank of India prevailing as on the date of the board meeting on which issue of preference shares was recommended. (FEMA)


The Banking Regulation (Amendment) Bill, 2005, proposes to permit banks to issue preference shares subject to the condition that preference shareholders will not acquire voting rights if the bank defaults in the payment of dividend.

Allahabad Bank slogan

Allahabad Bank was founded in 1865 at Allahabad, UP. Though it's headquarters are in Kolkata (since 1923).

It was nationalized in 1969. Allahabad Bank is the oldest joint stock bank in India.




Symbol means Triveni Sangam of Ganga,Yamuna and Saraswati at Allahabad.

Slogan/Tagline: A tradition of trust.

Headquarters: Kolkata.


Bank of Baroda symbol


Bank of Baroda was established in 1908 by Maharaja of Baroda, in present day Vadodara, Gujrat. It was nationalized in 1969.




Logo: Baroda Sun - comprises of dual ‘B’ letter forms which hold the rays of the rising sun.

Sun represents what Bank stands for. Single most powerful source of light and energy, which dispels darkness.  Vermillion colour stands for hope and energy.


The Baroda Sun is a universal symbol of dynamism and optimism – it is meaningful and easily decoded by all.



Slogan: India’s international Bank.

BoB has the maximum branches oversees, around 101 offices in 24 countries.

Headquarters: Vadodara, Gujrat.



Vijaya Bank symbol


Vijaya Bank was founded in Manglore, Karnataka.  The bank was merged with 9 smaller banks in 1963-68 & it was subsequently nationalized in 1980.


As it was established on Vijayadashmi Day, hence it was named Vijaya Bank.





Symbol of a polite man in their logo implies ”your partner in progress”.


Tagline:A friend you can bank upon.


Headquarters: Banglore, Karnataka.



Punjab and Sind Bank trivia

Punjab & Sind Bank (P&SB) founded in 1908, its main area of operation is in Punjab. It was nationalized in 1980 (along with 5 others).




Tag line is "Where service is a way of life".

I think it's main vision is to emerge as techno savvy bank, so it's tag line hints at this intention.

It's motto is “Sarva Jana Hitai Sarva Jana Sukhai” which roughly means "For good of all and happiness of all".


Headquaters: New Delhi


Setluj Gramin Bank, a Regional rural bank, is sponsored by P&SB only.


Image courtesy: P&S bank

Oriental bank of Commerce

OBC was established in 1943 at Lahore. After partition it was shifted to India only.




Tagline: Where every individual is committed.

Individual here stands for their employees.


In 2004, Global Trust Bank Limited (GTB), a private sector bank, was amalgamated into OBC.



Headquarter: Gurgaon, in Haryana.


Logo seems preety simple for this bank. Just O, B and C. If there is any meaning I couldn't find it anywhere.



Corporation bank





Started as a 'nidhi' in 1906 at Udipi, Karnataka. In that era nearest modern bank branch was at Manglore. It's agent used to visit Udipi after a fortnight. So it's founder started the bank in Udipi itself to cater to needs of local people. It was nationalised in 1980 (alongwith 5 others).




The Bank's motto - 'Sarve Janah Sukhino Bhavanthu' meaning 'Prosperity for All'.

Tagline: 'Prosperity for All'.




The Bank's logo has various components:



Kamadhenu (denoting wish-fulfillment), Kalpatharu (eternity), Balance (justice for all), Wheel (industrial progress) and Wheat Grains (agricultural prosperity) which stand for universal prosperity and as a wish-fulfilling credo.



Headquarters: Manglore, Karnataka.


Image courtesy: Corpbank

Andhra Bank

Andhra Bank-  a Public sector bank, nationalized in 1980 (alongwith 5 others).

Andhra bank: Tagline/ Punchline.





It's like a way of saying: 'Enter' andhra bank 'for all your needs'.


Great foundation

It's often asked in interviews so remember - a great freedom fighter laid it's foundation.

The bank was founded by Dr. Bhogaraju Pattabhi Sitaramayya in 1923 in Machilipatnam, Andhra Pradesh. He was renowned freedom fighter and political leader.

He even ran for the presidency of Congress against Netaji Subashchandra Bose, and he ran successfully in 1948. He was part of JVP (Jawahar, Vallabhbhai & Pattabhi) committee which rejected idea of states formation on linguistic lines.



Corporate Identity: Togetherness is the Theme


The Symbol of  Infinity denotes a Bank that is prepared to do any thing, to go to any lengths, for the customer

The Blue pointer on the top represents the philosophy of a Bank that is always looking for growth and newer directions.

The Key hole represents Safety and Security

The Chain indicates togetherness

The colours Red and Blue denote dynamism and solidity.


Headquaters: Hyderabad.



Screenshots courtsey Andhra bank