Falling bank rates make corporate fixed deposits attractive

With banks slashing deposit rates, savers could take comfort from the higher rates offered by companies such as HDFC, Shriram Transport, Mahindra Finance and Dewan Housing. The average spread, or gap, between bank and corporate deposits has widened about 90-100 basis points compared with the usual 50-70 bps. A depositor with slightly higher risk appetite can now earn interest rates of up to 10.50% with three-year maturity."Investors with a higher risk appetite can invest in fixed deposits issued by companies," said Sandeep Nayak, executive...

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United Bank signs pact with Bajaj Allianz

United Bank of India has signed a memorandum of understanding (MoU) with Bajaj Allianz Life Insurance, wherein Bajaj Allianz will act as a channel partner for loan protection of the bank’s borrowers.The MoU was entered into on December 9.The MoU was signed in the presence of Ramchandra Pandit, Senior Vice-President, Bajaj Allianz Life Insurance Company Ltd, Sanjay Arya, Executive Director of the bank, and other senior executives.Interestingly, the Kolkata-based lender will be the sixth public sector bank with which the private insurer has tied-up...

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SBI chief: Leave it to banks to decide on mergers

The Centre must leave it to the public sector banks themselves to decide on the consolidation candidates, SBI Chairperson Arundhati Bhattacharya has said.“It is important to start conversations among banks as to who should merge with whom," she said at the Delhi Economics Conclave 2014 here on Thursday.There is need for India to work towards 3-4 large banks through consolidation, she added.This remark is in line with the earlier UPA regime’s policy stance of allowing banks on their own to come up with proposals for consolidation among themselves.As...

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Bank of Maharashtra cuts minimum lending rate to 10.25%

State—run Bank of Maharashtra today announced a cut of 0.15 percentage point in its minimum lending rate or base rate to 10.25 per cent, a move which will make its housing and auto loans cheaper.“The bank has decided to revise the bank’s base rate from 10.40 per cent per annum to 10.25 per cent per annum with effect from December 15, 2014,” Bank of Maharashtra (BoM) said in a filing to the BSE.BoM is the first bank that has lowered lending rates after RBI Governor Raghuram Rajan made a case for lowering lending rates by banks earlier this month.“Some...

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RBI to review priority sector lending norms for foreign banks

The Reserve Bank of India (RBI) will soon be reviewing the priority sector lending norms for foreign banks; after which it will nudge them convert their Indian branches into wholly-owned subsidiaries, the Governor, Raghuram Rajan said here on Thursday.Rajan was in the city to attend RBI board meeting.According to him, the foreign banks have expressed (to the central bank) their concerns and the obligations they will have if they have to convert their branches into wholly-owned subsidiaries.The primary concerns raised by these foreign banks...

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Bharatiya Mahila Bank opens Coimbatore branch

Bharatiya Mahila Bank plans to close the current fiscal with a network of 80 branches.The year-old bank, according to its Chairperson Usha Anathasubramanian, has started to take baby-steps.Launched by the UPA Government on November 19, 2013, this 100 per cent Government-owned bank, started its operations with seven branches, added two more to take it to nine before March 31, 2014.“This is the 36th branch of the bank and the second in the state of Tamil Nadu,” she said, inaugurating the Coimbatore branch at Ramnagar.New branchesMahila Bank plans...

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RBI Deputy Governor Khan proposes novel PPP model to drive financial inclusion agenda

India should adopt the model of "PPP (square)" for driving its financial inclusion agenda, the RBI Deputy Governor, H R Khan, has said.Financial inclusion efforts should be tested against the 'Plan, Pursue and Pause' framework to ensure better outcomes, Khan said at the 'Inclusive Finance India Summit 2014' in the Capital on Monday.There is need to "plan'' well, pursue what has been planned and ensure there is a "pause'' to see if it is working well.An iteration of this "PPP'' could result in better results, Khan said.This PPP model is different...

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ICICI Bank caps free transactions at own ATMs at five

The country’s largest private sector lender ICICI Bank has announced a hike in its ATM charges for savings account holders from January 1.Under the new method, the number of free transactions in a month is fixed at five using own ATMs, while it has been capped at three for other banks’ machines.Customers can enjoy only five free transactions, including financial and non-financial, at the bank’s own automated teller machines (ATM), it said in a post on its website.After exceeding the free transaction limits, customers will have to pay Rs. 20...

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Kotak Mahindra launches savings account of older customers

Kotak Mahindra Bank launched a savings account product for older customers aged over 55 years to offer priority service with discounted offerings.Grand is a unique savings bank account, tailored exclusively for customers 55 years and above. Grand has been designed keeping in mind their need for hassle-free banking, financial independence and personal attention, the bank said in a statement.“Grand offers priority service and first aid card which provides essential customer information and emergency contacts details. It also offers queue privileges...

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‘Uber complying with RBI norms for payment system’

The Reserve Bank of India today said that the US-based controversial cab operator Uber is complying with the central bank norms with regard to payment systems.“My understanding is that they are complying (with the norms),” RBI Deputy Governor H R Khan said when asked whether Uber’s payment system is fully compliant with the Indian norms.The company has been in the news as its taxi driver is facing rape charges and is currently in police custody. Police has also issued notice to the Indian functionaries of Uber to join investigation in the case.The...

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LIC agents to stage dharna in Mumbai on Wed

The LIC Agents’ Organisation of India will hold a massive dharna at Azad Maidan in Mumbai on Wednesday to present a charter of demands to the LIC management.Agents have not agitated for a raise in their commission since 1956, PG Dileep, General-Secretary of the organisation, told BusinessLine.RETAIN COMMISSIONThis is despite the price of essential commodities and petroleum products having shot up many times over during this period.“Even now we are not asking for a raise in the commission rate. Our main demand is that the existing commission...

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