SBI cuts term deposit rates

Easy liquidity has prompted State Bank of India to cut retail term deposit rates by 25 basis points in select maturities.The country’s biggest banker State Bank of India (SBI) has cut the retail term deposit rates for deposits below Rs. 1 crore with effect from Monday, December 8.The bank has revised the rates only for a tenure of one year and above, leaving the short-term deposit rates untouched.In its filings to the stock exchanges, SBI said that the interest rates for deposits of 1 year and above will be reduced by 25 basis points (0.25...

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ICICI Bank sells Russian subsidiary to Sovcombank

The board of country’s largest private sector lender ICICI Bank on Friday approved sale of the bank’s shareholding in its Russian subsidiary ICICI Bank Eurasia, to a third party Sovcombank.“ICICI Bank Ltd has informed BSE that the Board of Directors of the Bank at its meeting held on December 05, 2014, approved a proposal for the sale of ICICI Bank’s shareholding in ICICI Bank Eurasia Limited Liability Company (IBEL), a non-material wholly-owned banking subsidiary in Russia, to Sovcombank, an unrelated third party Russian bank,” ICICI Bank...

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HDFC Bank to cut lending rate by March: Aditya Puri

Having cut its deposit offering by up to 0.50 per cent, the country’s second-largest private sector lender HDFC Bank will be cutting its lending rate by March, a top official said today.“Now I’ve reduced my fixed deposit rates, and you will see by March or so base rate will come down,” the bank’s Managing Director Aditya Puri told PTI after launching a blood donation drive.Puri said the base rate or the minimum rate of lending is computed on the cost of deposits and the bank cannot cut its lending rate unless the deposit rate comes down.Once...

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Federal Bank cover for students

Federal Bank has tied up with Kotak Life Insurance for the launch of a student insurance scheme. Called Vidya Suraksha, the scheme provides life cover for students who have taken education loans. It gives insurance protection to the extent of loan liability of a student in event of death. It is a single-premium policy and the premium will be funded by the bank. Source : Thehindubusinesslin...

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Bank services in Bihar hit due to strike

Banking operations in Bihar was hit today after Public Sector bank employees in the state joined the relay strike call given by United Forum of Bank Unions (UFBU) for early signing of wage accord.According to general secretary of Bihar Bank Employees Federation, J P Dixit, around 7,200 bank branches in the state remained closed and a majority of 4,878 ATMs stopped working after their cash got over.“The strike has been total. It is a mark of unity across the banks and has instilled hope and enthusiasm among the employees that their wage revision...

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Axis Bank raises Rs. 5,700 cr through infra bonds

Country’s third largest private sector lender, Axis Bank raised Rs. 5,705 crore by issuing long term infrastructure bonds for a 10-year period.The senior unsecured redeemable non-convertible debenture issue was priced at 8.85% p.a. (fixed coupon) payable annually maturing on December 05, 2024. The NCD’s are rated AAA by CRISIL & ICRA. The NCDs shall be allotted to eligible investors on December 05, 2014, Axis Bank said in a statement.It’s the highest amount a bank has raised by selling such bonds, which were issued under the new RBI guidelines...

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RBI’s big mobile banking push

Next time when you call your bank, don’t be surprised to hear a recorded voice speak to you about the benefits of mobile banking. Or, when your driver or your maid goes to open a new bank account, tell them to be prepared for a sales pitch from the bank official on the benefits of mobile banking.These are some of the suggestions made by the Reserve Bank of India to banks in order to push mobile banking in a big way.According to the latest notification, the central bank has made suggestions to banks to push mobile banking to the new and the...

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IRDA orders audit of Future Generali Life Insurance

The Insurance Regulatory and Development Authority (IRDA) has ordered an independent audit into some outsourcing transactions and payments made by Future Generali Life Insurance Company.In an order issued here on Tuesday, IRDA Chairman TS Vijayan said the company had violated the guidelines on outsourcing activities issued by the regulator in February 2011.The company had also paid Rs100-200 for a specific period of time to outsourced persons for organising some events.Vijayan said the payments constituted 8-11 per cent of the operating expenses...

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Bank unions on relay strike from tomorrow after talks fail

Banking services are likely to be affected for the next four days as employees of PSU banks plan to go on a zone-wise relay strike beginning with Southern region tomorrow, after wage revision talks failed here on monday.The decision came after talks at a conciliation meeting called by the Deputy Chief Labour Commissioner of Mumbai, the Indian Banking Association (IBA) and the United Forum of Banking Unions (UFBU) failed. The UFBU represents about five workmen unions and four officers' associations.Accordingly, the first phase of the relay strike...

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Kisan Vikas Patra: a re-launch with very few justifications

Despite some criticism and misgivings in certain quarters, the Government has decided to re-introduce the Kisan Vikas Patra (KVP), a savings instrument that was discontinued three years ago. Positioned as a savings instrument in line with other continuing ‘small savings schemes’ such as the Public Provident Fund (PPF) and the National Savings Certificates (NSCs), the new KVP, like its predecessor, has certain advantages as well as disadvantages over these. Most ordinary investors will compare the new KVP with bank deposits and other debt instruments.Broad...

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Bhartiya Mahila Bank eyeing Rs. 1,000-cr deposit base by March-end

Bhartiya Mahila Bank (BMB), the country’s first all-women bank, today said that it is targeting a deposit base of Rs. 1,000 crore and advances of Rs. 800 crore by March-end this fiscal.At present, the bank’s deposit base stands at over Rs. 300 crore and loans at Rs. 500 crore.“As of today, our total business is at Rs. 825 crore. For this year, we are aiming advances of Rs. 800 crore and deposits at Rs. 1,000 crore,” BMB Chairman & Managing Director Usha Ananthasubramanian told reporters today after inaugurating its 35th branch here.The...

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