Axis Bank cuts base rate by 10 bps to 9.85%

Axis Bank, India’s third largest private sector bank, has revised its lending rate or base rate from 9.95 per cent p.a. to 9.85 per cent per annum.

The new rates will be effective June 30, 2015.

“Accordingly, the effective rate applicable to various fund-based credit and credit limits, which are linked to the bank’s base rate, will reduce by 10 basis points,” Axis Bank said in a statement.

Currently, the country’s largest lender State Bank of India, largest private lender ICICI Bank and second largest private lender HDFC Bank have the lowest base rate at 9.70 per cent.

The Reserve Bank of India’s 75 bps repo rate cut since January this year has been passed on partially to the borrowers by most big banks. The RBI Governor, Raghuram Rajan, has been nudging banks to pass on the benefits of the repo rate cut to the end customers.


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ICICI Bank cuts lending rate to 9.7%

The country's largest private lender, ICICI Bank, has reduced its minimum lending rate or base rate by 0.05 per cent to 9.7 per cent.

After all major big banks, ICICI Bank has slashed its base rate to match the largest lender State Bank of India and its private peer HDFC Bank.

ICICI Bank's new base rate will be effective June 26.

"From July 1, 2015, interest rates on new loans and advances, will be determined with reference to I-rates (base rates)," ICICI Bank said in a statement.

Base rate is the minimum lending rate offered by banks to borrowers and all loan rates are linked to it.

RBI rate cut

This is the second base rate cut by the bank in the last three months after the April monetary policy by RBI. The central bank had cut the key policy rate earlier this month by 25 bps.

Following this, earlier this month, HDFC Bank and SBI had reduced their base rate by 15 basis points (bps) each to 9.70 per cent.

Since January, RBI had cut the repo rate by 75 bps. Most banks have reduced the base rate by 25-30 bps in response to RBI's rate cut of 75 bps.


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RBI permits banks to borrow from global institutions

With a view to providing greater flexibility in seeking access to overseas funds, the RBI on Thursday permitted banks, which are authorised to deal in foreign exchange, to borrow from international /multilateral financial institutions without approaching it for case-by-case approval.
Conditions

These international/ multilateral financial bodies will include institutions of which the Government of India is a shareholding member, institutions that have been established by more than one government, or those that have shareholding by more than one government and other international organisations.
For general banking

Such borrowings, according to a Reserve Bank of India notification, should be for the purpose of general banking business and not for capital augmentation.

According to extant regulations, Authorised Dealer (AD) category of international banks can borrow funds from their Head Office, overseas branches, correspondents outside India, or any other entity as permitted by the RBI, up to a limit of 100 per cent of their unimpaired Tier-I capital as at the close of the previous quarter or $10 million (or its equivalent), whichever is higher.


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South Indian Bank launches new mobile app

South Indian Bank has rolled out SIB Mirror, an innovative mobile application with shake to transfer funds and shake to know your balance features which are unprecedented in the banking industry.

V.G Mathew, MD & CEO launched the application at the Christ University Campus, Bangalore.

SIB Mirror, developed in-house is a one stop solution for many banking needs. The application acts as a virtual branch that offers different menus for transferring funds, tracking daily transactions, calculating interest, applying for deposits and loans and much more.

The unique features like gesture support for menu access, click to share account info and menu navigation using voice recognition make the application even more user-friendly. SIB Mirror is a free app and available in Android, i0S, Windows and Blackberry platforms, a press release said.


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Dena Bank, MUDRA Bank ink pact

Government-owned Dena Bank and MUDRA Bank signed a general refinance agreement to finance new entrepreneurs and small businesses. To promote very small businesses, the Centre aims to facilitate credit of up to Rs1 lakh crore under the MUDRA (Micro Units Development and Refinance Agency) scheme during the current financial year. Dena Bank Chairman and MD Ashwani Kumar said the bank has already sensitised its field functionaries towards extending finance under the scheme.


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Axis Bank launches `Secure+' debit card with enhanced security features

Axis Bank, India’s third largest private sector bank launched Secure+ debit card with security features that allow customers to modify limits and switch off card usage when not required.

An EMV chip based debit card, Secure + safeguards customer’s wallet by blocking Axis Bank cards as well as other bank cards held by the customers in her/his wallet with a single phone call.

In line with government’s initiative to promote cashless transactions, the card offers emergency assistance and covers hotel and flight expenses in case of loss of tickets and wallet. The facility is available for customers within the country and also while travelling abroad. The card also offers an enhanced personal accident insurance limit of Rs. 5 Lakh, the bank said in a statement.

The Bank has also launched ‘Total Control’, a unique platform that empowers debit card customers to self-manage and customise their card features that allows customers to modify limits, choose between domestic or international usage, switch on or off card and even replace the card through a mobile application or internet or phone banking facility.

“The platform will act as a control pad for customers to manage card features and strengthen the level of security while transacting through various banking channels. The Total Control platform, along with Secure+ debit card offers customers both proactive as well as reactive control over the security of their cards,” the bank said.

“Less than 10 per cent of customers use debit cards for purchases. The top reason they stay away is concern around security. It combines chip security, wallet security, fraud protection and travel assistance - all in one card. Managing the security concerns will go a long way in enhancing the attractiveness of cashless electronic transactions in the country” said Jairam Sridharan, President & Head – Retail Lending & Payments, Axis Bank.


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HDFC Bank launches mobile app for trade finance transactions

HDFC Bank will provide trade finance transactions on the mobile phone for wholesale banking clients. The country’s second largest private sector bank hopes to push its wholesale business growth in sync with the economy and has launched the ‘Trade Finance on Mobile’ application.

The app provides end-to-end digitisation of trade finance transactions, including the last mile authorisation of these transactions.

“The on-the-go executives and senior officials, who are largely on-field and travelling, can authorise as and where they are present. In 2014, we started offering payment products such as RTGS, NEFT and fund transfer on the mobile for the wholesale banking clients. This is the first time in the industry that trade finance has moved on mobile,” said Bhavesh Zaveri, Country head – Operations, Cash management products, HDFC Bank.

The product offering involves facilitating mobile authorisation of letter of credit, bill processing, bank guarantees, buyer’s credit and pre-and post shipment transactions, which are online and real time.

“It is a unique offering that gives the ability to navigate and provide flexibility to the executives to validate it and get the process going on a real-time basis. So, it reduces the time from half a day or so to an hour or so…We expect the mobile transactions to jump into thousands in the next three-six,” Zaveri added. Broadly, the bank’s wholesale segment includes funding, trade financing (including LC, ECB, buyer’s credit) and domestic cash management.

At present, the ratio of the customer revenue mix from wholesale to retail is at 42:58. The wholesale banking business has been growing at an average of about 12 per cent per annum.

In the month of March 2015, HDFC Bank recorded transactions worth Rs6,031 crore on the mobile banking platform, while for the entire banking system the transaction value stood at Rs16,914 crore, according to the RBI data.

Currently, the number of transactions a year through trade finance is about 2 million and the average wholesale banking business has been growing at about 10-12 per cent.


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Karnataka Bank to extend finance to farmers against warehouse receipts

Karnataka Bank Ltd on Tuesday signed a memorandum of understanding with Edelweiss Integrated Commodity Management Ltd (EICML) for extending storage facilities to farmers and to finance against warehouse receipts.

A press release by the bank said here that finance to farmers will be extended under ‘Krishik Bhandar’ scheme of the bank. EICML has nominated Karnataka Bank as preferred financier for extending finance to farmers against the warehouse receipts.

Quoting Mahabaleshwara MS, Chief General Manager of the bank, it said that this initiative will help farmers to store their agriculture produce by avoiding distress sale, earn better price and simultaneously take loan for farm operation.

Meera LB Aranha, General Manager of the bank, and Shekar Subhramanyam, Vice-President of EICML, were present on the occasion, the release said.


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Federal Bank revamps mobile app, announces cash back offer

Federal Bank has announced the launch of revamped version of its mobile application FedMobile with added services and a cash back offer on first transaction of the customer.

“As a launch offer, the bank has announced a cash back of Rs. 50 for customers who initiate a transaction worth Rs. 100 or above as their first transaction using the new version of FedMobile. The cash back amount will be credited to the customer’s account within 24 hours of the transaction. This offer is valid up to July 31, 2015,” the Kerala-based private sector bank said in a statement.

Apart from transfer of funds to accounts within the bank, FedMobile facilitates funds transfer to other bank accounts as well which can be done through NEFT and IMPS modes.

Using FedMobile, one can also avail value-added services like top up/recharge of mobile phones, payment of utility bills, payment of school fees etc. FedMobile is integrated with the bank’s e-passbook App, FedBook, thus facilitating the access of FedBook through FedMobile, the statement said.

The new version is currently available in smart phones with Android Version 4 upwards, and will soon be made available in iOS, Windows and Blackberry-based phones, it said.

K A Babu, Head – Retail Business, said: “Federal Bank has made its mark in the digital space with game changing innovations like FedBook, Scan N Pay etc. The bank has ambitious plans and programmes for giving a unique digital experience to customers. We have already introduced the state-of-the-art payment solution, Scan N Pay, which is equally good for person to person payment and person to merchant payment. The bank is in the process of onboarding large aggregators to this QR-based payment solution…. We expect at least one million customers to avail FedMobile before the close of this fiscal.”


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