BoI cuts fixed deposit rates by 0.25% on select maturities

Bank of India (BoI) slashed interest rate on fixed deposits by 0.25% on select maturities.Interest rate on fixed deposit for maturity between 2-3 years has been reduced by 0.25% to 9%, while 1,111-days term deposit will attract 9.10% as against 9.30%, state-run BoI informed the BSE.With the revision, BoI's interest rate on 3-10 years fixed deposit would come down to 9% from 9.25%.The Mumbai-based bank had last revised the interest rate on fixed deposits on March 22 this year.The new rates are effective from July 2, it said.However, interest...

Read more »

SBI offers incentives to top officers to boost deposits

State Bank of India, India’s largest bank, is introducing performance incentives for its middle and senior management.These variable incentives are being structured in such a way as to provide higher incentives for better performance. DEPOSIT GROWTH The bank had said that it hoped to grow its deposits at 20 per cent and its loans at 16 per cent this fiscal.Last year, its deposits grew 11.75 per cent and advances, 15.78 per cent.Given the slowdown that the economy is facing, it may be a tough ask for the bank to grow its deposits at nearly...

Read more »

SBI launches eFile service for filing I-T returns

State Bank of India (SBI) today launched a new service that will facilitate filing Income Tax returns online. This service is currently available only to the bank's customers, at a discounted price, SBI said in a statement. For salaried individuals the fee starts as low as Rs 150, inclusive of taxes, which can be paid by the customer through SBI internet banking or debit card, it said. "Considering that it is mandatory for individuals earning an annual income in excess of Rs 10 lakh to file their returns online from the current financial...

Read more »

RBI for customer-friendly savings bank deposit rate policies

The Reserve Bank wants larger banks to come out with customer-friendly interest rate policies following the deregulation of savings bank rate like their smaller counterparts in the private sector.Since the deregulation of the rate last year, said RBI Governor D Subbarao yesterday, 7 relatively small private banks have raised it and "expectedly improved their share of this market segment"."The big banks have yet to respond to this...Reserve Bank looks forward to more active play in the Saving Bank segment with banks coming out with some customer...

Read more »

Union Bank slashes interest rate on agricultural loans up to 175 bps

In an effort to boost credit flow to agriculture, Union Bank of India today announced interest rate cut for various categories under agriculture by up to 175 basis points.Union Bank will offer crop loans, investment credit and loans for allied activities by up to Rs 50,000 at base rate only.The interest rate for lending to self help groups (SHGs) has also been reduced by 175 bps, the bank said in a statement here.The revised interest rates are effective from July 1. At present, the base rate of Union Bank of India is 10.50 per cent.For the...

Read more »

ICICI Bank ties up with Chhattisgrah's ITM Varsity

ICICI Bank tied up with Chhattisgarh-based ITM University to train potential candidates and make them ready for banking jobs.The industry-academia partnership is aimed at creating a talent pool to meet growing demand of pre-skilled human capital by the banking industry, the country's second-largest lender said in a statement here.As part of the agreement, a three-month residential certificate course in retail banking and sales management will be held in Raipur under the banner of ICICI Bank Sales Academy. The course will entail one-month of...

Read more »

Axis Bank, UAE Exchange unveils mobile remittance service

Axis Bank and UAE Exchange and Financial Services launched money transfer service for NRIs to transfer money to any registered mobile number in India. The recipient can simply withdraw the money from any of the 10,000 Axis Bank ATMs with the help of codes sent to their registered mobile number. The remittance amount must be in multiples of Rs 100 and is presently capped at Rs 18,000 per remittance transaction. To avail of this service, customer is required to register once at any Axis Bank branch in India. A registered beneficiary...

Read more »

Kotak Life Insurance appoints Sunil Sharma as ‘Appointed Actuary’

Kotak Mahindra Old Mutual Life Insurance (Kotak Life Insurance) announced the appointment of Mr Sunil Sharma as ‘Appointed Actuary’.The appointment is effective from July 1.With an experience of more than 21 years in life insurance and reinsurance practice areas in India, USA, UK and South East Asia, Mr Sharma has worked with companies such as Swiss Re, GE Financial Assurance and others.Mr Sharma is a qualified Actuary and a Fellow of Institute of Actuaries, UK (FIA) and Institute of Actuaries of India (FIAI). He is Chairperson of Advisory...

Read more »

Federal Bank ties up with Saudi Arabia-based bank for remittances

Federal Bank has tied up with Samba, the Saudi Arabia-based bank for disposal of cash remittances.Under the arrangement, remittances received through the Samba bank under ‘SpeedCash Now’ can be encashed by the beneficiaries from any of the Federal Bank branches up to Rs 50,000 per remittance.Federal Bank has a presence in inward remittance from Gulf countries w...

Read more »

Oriental Bank to hire over 400 officers

Oriental Bank of Commence is recruiting 425 probationary officers/agricultural officers.There are 325 vacancies of probationary officers and 100 posts of agricultural officers. While any graduate can apply for probationary officer's post, a degree in agriculture/horticulture and other related disciplines is a must for agricultural officers.The candidates should have appeared in the common written examination for officers conducted by the Institute of Banking Personnel Selection in 2011.The last date for online registration of applicaitons is...

Read more »

Indian Bank to recruit 1,200 clerks

Indian Bank is recruiting 1,200 clerks to work in its branches spread across the country.According to a notification, those who passed intermediate with a minimum of 50 per cent marks are eligible to apply. They should have taken the common written examination for clerical cadre conducted by the Institute for Banking Personnel Selection in 2011 and have a valid scorecard.The online registration of applciations will be open up to July 13. Further details can be had from bank's portal.nagsridhu@thehindu.co.in...

Read more »

Ratnakar Bank profit zooms

Ratnakar Bank has posted a 112 per cent increase in net profit, helped by growth in deposits and advances.For the full year ended March 31, 2012, the Kolhapur-based private sector bank reported a net profit of Rs 66 crore. Net advances grew 117 per cent to Rs 4132 crore and total deposits grew 132 per cent to Rs 4739 crore....

Read more »

HDFC Bank cards for doctors

HDFC Bank has launched an exclusive range of credit cards for doctors – Doctor’s Superia and Doctor’s Platinum – on the occasion of National Doctors’ Day.These premium credit cards are designed to cater to the lifestyle, travel and other needs of doctors, said Mr Parag Rao, business head, credit cards and merchant acquiring services, HDFC Bank.Apart from welcome benefits, Doctors Superia members can access more than 600 airport lounges around the world, irrespective of the preferred airlines or class.Members of the doctor’s range of cards will...

Read more »

SBI waives minimum balance criteria for savings bank account

In order to attract new customers, State Bank of India (SBI) has done away with minimum balance criteria for saving banks account.The bank will not levy any charge for breaching minimum balance criteria.The facility is available to existing customers also, SBI said in an advertisement.For the normal SBI savings account with cheque book facility, a customer had to maintain a minimum balance of Rs 1,000 in his or her account failing which it attracted penalty.There are certain saving account products of the bank where the minimum monthly balance...

Read more »

Karnataka Bank beefs up exposure to micro, small units

The Mangalore-based Karnataka Bank wants to earmark one-fourth of its total credit to MSME sector. According to Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer, the bank is eyeing a business turnover of Rs 65,000 crore for 2012-13. This includes deposit of Rs 39,000 crore and advances of Rs 26,000 crore. The bank has plans to take the exposure of 25 per cent of its total credit to micro, small and medium enterprises sector. While sanctioning loans, priority is given for the proposals from the MSME sector. To achieve this,...

Read more »

Corporation Bank aims at Rs 3-lakh cr business

Corporation Bank hopes to achieve a business of Rs 3 lakh crore by March 2013.Speaking at the 30th year celebration of Corporation Bank Officers’ Organisation’s journal Officers’ Voice here on Monday evening, Mr Ajai Kumar, Chairman and Managing Director, said that the bank has set a target of achieving Rs 2.88 lakh crore business by March-end.“However, I wish to achieve a business of Rs 3 lakh crore by the end of the current financial year. We can achieve this, if you have passion for it,” he said.There has been good growth in priority sector...

Read more »

Citibank India’s net up 35% in FY12

Citibank India on Tuesday reported a 35 per cent increase in its net profit for the financial year 2011-12 at Rs 1,922 crore (Rs 1,424 crore).Pre-tax profit for the period grew 37 per cent to Rs 3,297 crore (Rs 2,402 crore), Citibank India said in a statement here.It also said that Citibank India’s total assets grew 15 per cent to Rs 1.28-lakh crore at end-March 2012 from Rs 1.12-lakh crore at the end of previous financial year.In 2011-12, Citibank India’s deposits grew 14 per cent to Rs 64,698 crore and the current account/savings account...

Read more »

Assocham wants RBI to cut policy rates by 100 bps

The Reserve Bank of India should reduce key interest rates by at least 100 basis points to spur economic activity, according to industry body Associated Chambers of Commerce and Industry.Assocham representatives met the RBI Governor, Dr D Subbarao, on Tuesday to put forth their suggestions to reduce both the repo rate (the interest rate at which banks borrow funds from RBI) and the cash reserve ratio (the slice of deposits that banks park with the RBI) by 100 bps to support credit growth and investments.“The market intervention by the RBI to...

Read more »

BoM introduces easy loans for traders

Sensing the demand for loans with minimum documentation, Bank of Maharashtra has introduced a trade finance product for traders and micro, small and medium enterprises.By doing so, the public sector bank is trying to attract co-operative bank customers into its fold. Traders and MSME promoters prefer going to small banks as they offer hassle-free loans.Mr C.V. R. Rajendran, Executive Director, Bank of Maharashtra, said traders and MSMEs can get loans up to Rs 5 crore from the bank if they offer collateral which is 140 per cent of the loan amount....

Read more »

Online tracking to speed up Vijaya Bank’s loans disbursal

Public sector Vijaya Bank has introduced online registration of application and tracking to facilitate speedy clearance of projects under micro and small enterprises.“Through this we have achieved faster processing of MSE applications. We are also encouraging anybody approaching us to opt for online filing of their application and also upload certain document for easier and faster transactions,” said Ms Shubhalakshmi Panse, Executive Director, Vijaya Bank. The bank also initiated regular ‘MSME Melas’ to push to get larger share of MSE disbursal...

Read more »

Birla Sun Life deploys IBM solution

Birla Sun Life Insurance has deployed IBM’s Cognos analytics software solution for planning and forecasting its internal business operations.Further, this would help Birla Sun Life integrate operational and financial planning functions, which would give its internal teams flexibility in business functions. This helps in determining resource requirements and forecasting of future business performance.This solution helped in streamlining their spreadsheet-based planning and budgeting process for data coming for more than 600 branches and multiple...

Read more »

Syndicate Bank brings small enterprises under one roof

Syndicate Bank by revisiting its existing micro and small enterprises products now has brought all of them under one umbrella - ‘SyndMSE’.“To popularise ‘SyndMSE’, we have come out with a reduced interest rate, margin and liberalised terms and conditions to micro and small enterprises,” said Mr Gopinath T. Iyer, General Manager-MSME, Syndicate Bank.“Further to encourage micro enterprises, rebate in interest rate for prompt repayment has also been introduced,” he added.The bank’s board has also approved a policy for restructure/rehabilitation...

Read more »

Oriental Bank cuts rates of 1-2 year deposit by 25 bps

Oriental Bank of Commerce on Tuesday cut deposit rates by 25 basis points on term deposits of 1-2 years maturity.With this, OBC will from July 5 offer 9.25 per cent on term deposits of 1-2 years maturity, said Mr S. L. Bansal, Chairman and Managing Director, OBC.Currently, term deposits of 1-2 years maturity earn 9.5 per cent a year.Nearly 70 per cent of OBC’s total deposits portfolio falls in the 1-2 years bucket. The decision to cut deposit rate on this slab came at a meeting of asset liability committee (ALCO) today, Mr Bansal said.This...

Read more »

ICICI Bank sells Rs 430-cr Kingfisher debt to Srei Infra

With the turnaround plans for Kingfisher Airlines yet to take off, ICICI Bank has bailed out, selling its entire Rs 430-crore debt exposure in the airline.The buyer is a debt fund managed by Srei Venture Capital Limited (SVCL), the fund management arm of Kolkata-based Srei Infrastructure Finance Ltd (SIFL).In a statement, ICICI Bank said it has ‘recovered’ the entire debt exposure of Rs 430 crore to Kingfisher Airlines. India’s largest private sector bank, however, owns 2.07 per cent stake in the airline. Adequate collateral Bankers say when...

Read more »

Yes Bank plans to raise $500-m via QIP

Yes Bank is seeking shareholders’ approval to raise $ 500 million (Rs 2,800 crore) to take care of the “growing requirement of funds for expanding business” and to shore up capital to meet the Basel II norms of capital adequacy.The bank proposes to raise the additional capital by way of placement of shares with Qualified Institutional Buyers, issue of American or Global Depository Receipts or a public issue “or any other methods”, says the bank in its notice to the shareholders. The placement of shares may be consummated in one or more...

Read more »

PNB cuts deposit rates of FCNR accounts

Punjab National Bank (PNB)  revised its deposit rates downwards on Foreign Currency Non-Resident (FCNR) accounts with maturity of 2-5 years.The existing rates of FCNR (B) scheme have been reviewed as per the directives of the RBI, the public sector bank said in a statement.”... it has been decided to revise the interest rates on these deposits with effect from July 1, 2012,” the bank said in a statement.In dollar terms, the bank has lowered the deposit rates to 2.55 per cent from 2.63 per cent for deposits of maturity of two years and...

Read more »

ICICI Bank to get $30 m export credit line from JBIC

The Japan Bank for International Co-operation (JBIC) will extend an export credit line of $30 million to ICICI Bank for financing renewable energy projects.This will be co-financed with $50 million from Japanese private financial institutions, taking the overall loan assistance to ICICI Bank at $80 million (Rs 439 crore).The credit line will support the export of renewable energy-related equipment by Japanese firms to India.As demand for electric power has been increasing, the Indian Government has been making efforts to promote broader utilisation...

Read more »

HDFC Bank aims 1 mn new credit cards in 2012-13

Private lender HDFC Bank rolled out credit cards for doctors to cater to medical fraternity's specific needs, as part of its plans to launch total one million credit cards in current fiscal to deepen its presence in credit cards space.The credit cards for doctors--Superia and Platinum have been designed to cater to the lifestyle, travel and other needs of doctors.The doctors with new exclusive range of credit cards members will be able to access more than 600 airports lounges around the world, irrespective of preferred airlines or class and...

Read more »

SBI eyes 20% growth in loans to mid-corporate segment

State Bank of India eyes 20 per cent loan growth in the mid-corporate segment this fiscal, Mr R. Venkatachalam, Deputy Managing Director and Group Executive-Mid Corporate, has said. This is much more than the 8 per cent growth recorded last fiscal. SBI, which is the country’s largest commercial bank, classifies companies with turnover over Rs 50 crore and less than Rs 1,000 crore as mid-corporate segment."Last year was a difficult year and our growth was only 8 per cent. Normally, we grow at 20 per cent levels. That is why we are now aiming...

Read more »

NABARD to provide Rs 400 cr for various projects in Uttarakhand

National Agricultural Bank for Rural Development (NABARD) will provide funds of Rs 400 crore to Uttarakhand in the current financial year for various projects of PWD, and the irrigation and the power sectors.Chairing a meeting with the NABARD last week, Uttarakhand Chief Secretary, Mr Alok Kumar Jain, approved projects worth Rs 300 crore for PWD, Rs 150 crore projects for the irrigation department and Rs 127 crore projects for the power department, official sources said.During the meeting, Mr Jain directed officials to prepare Detailed Project...

Read more »

Vijaya Bank declares dividend

The 12th Annual General Meeting of Vijaya Bank was held at its Head Office here on Friday. The Board of Directors recommended a dividend of Rs 2.50 per share and fixed 9.50 per cent per annum on perpetual non-cumulative preference share of the Bank payable to Government of India for the financial year 2011-12.  The shareholders approved recommendations of the Board of Directors and adopted accounts and payment of dividend. The AGM was attended by about 500 shareholders. Mr Upendra Kamath, CMD, addressed the shareholders and briefed...

Read more »

SBI Kerala Circle observes Bank Day

The Kerala circle of State Bank of India (SBI) observed ‘Bank Day’ on Sunday. This commemorates the transformation of erstwhile Imperial Bank to State Bank of India on July 1, 1955. Social welfare and environmental awareness programmes were held in all branches on Sunday.The day also saw employees and family members take part in cultural programmes and contests at the P. Subrahmaniam Hall here. Mr V. Murali, deputy managing director, State Bank of India, presided over the programme. Mr K. M. Chandrasekhar, deputy chairman, State Planning Board,...

Read more »

RBI launches online platform for G-secs trading

The Reserve Bank has introduced Internet-based platform for trading in secondary market of government securities for gilt account holders.The web-based NDS-OM (Negotiated Dealing System-Order Matching) system module will facilitate buying and selling of government bonds or securities online to the gilt account holders (GAH).The RBI had introduced the NDS-OM system in August 2005.The NDS-OM is an electronic, screen based, anonymous, order driven trading system for dealing in government securities.RBI said the web-based “module permits internet-based...

Read more »

SBI to pay more for 3-5 year deposits

State Bank of India has upped the interest rate on deposits in the three-to-five year maturity slab to 9 per cent.The 25 basis points increase in the interest rate (from 8.75 to 9 per cent) suggests that India’s biggest lender is eyeing stable, long-term deposits.In a statement, SBI said the interest rate hike is effective July 1, 2012. It has, however, left interest rates on all other maturity slabs unchanged.In late April, the bank had reduced retail term deposit rates by 25-100 basis points across the board. Earlier this month, it pared...

Read more »