BoB to operationalise 15 mid-corporate branches this fiscal

Bank of Baroda is planning to operationalise 15 mid-corporate branches before the close of the current fiscal.

These branches would service clients whose annual turnover ranges between Rs 150 crore and Rs 500 crore. Mid-corporate, as the name suggests, is sandwiched between the SME (small and medium enterprises, with a turnover not exceeding Rs 150 crore) and the Corporateclients, with a turnover of more than Rs 500 crore.

More branches

The bank has already opened around eight branches across the country.

Of the four such mid-corporate branches proposed for the South zone, comprising Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Puducherry, three have already been opened, one each at Bangalore, Hyderabad and Coimbatore.

The last branch that is slated to be opened in the South zone is being inaugurated at Chennai on February 22, said BoB's General Manager (South Zone), Mr S. Kalyanaraman.

The branch would be able to guide customers in forex transactions and cash dealings too, he added.

Biz volume

The bank is targeting to achieve a business volume of Rs 7 lakh crore by the close of this fiscal.

lnr@thehindu.co.in

Read more »

Central Bank of India cuts interest rates on home loans

Central Bank of India has cut interest rates on home loans by between 25 and 50 basis points for a period of one month from February 20 to March 31. The bank has also waived off the processing fees on home loans, said a press release.

The bank has reduced interest rates on housing loans up to Rs 30 lakh having maturity of 10 years to 25 years to 10.75 per cent (11 per cent).

Similarly, interest rates on housing loans of Rs 30 lakh and above and up to Rs 75 lakh having maturity of 10 to 25 years have been reduced to 11 per cent (11.5 per cent).

Interest rates on housing loans of Rs 75 lakh and above having maturity up to 10 years have been reduced to 11.25 per cent (11.5 per cent). For loans of the same amount having maturity of 10 years and above and up to 25 years, the rate has been reduced to 11.25 per cent (11.75 per cent).

Banks are trying to shore up their loan portfolios as the financial year draws to a close. According to the Reserve Bank of India's fortnightly credit report, as on Jan 27, the total bank credit was at Rs 43,51,329.85 crore, lower than Rs 43,54,477.44 crore in the previous fortnight.

On Friday, Bank of Maharashtra had cut the Base Rate by 10 basis points, with effect from February 21, and waived off processing charges for loans up to Rs 25 lakh.

Read more »

RBI buys bonds worth Rs 9,857.42 cr through OMO

As part of its programme to infuse liquidity, the Reserve Bank has bought bonds worth Rs 9,857.42 crore through open market operations (OMO) against a target of Rs 10,000 crore.

Four securities were on offer for OMO conducted yesterday and RBI subscribed to all of them, the central bank said in a statement.

While government securities (G—Sec) maturing in 2017 with a coupon rate of 8.07 per cent garnered Rs 1,525 crore, the 9.15 per cent G—Secs maturing in 2024 garnered Rs over 3,951.35 crore.

Furthermore, 8.28 per cent G—Secs maturing in 2027 mopped up Rs 2,897.55 crore and 8.97 per cent G—Secs maturing in 2030 garnered 1,483.51 crore.

With this, the central bank has infused nearly Rs 92,000 crore into the financial system in ten tranches in the last two months.

Read more »

Bank of Maharashtra cuts base rate

In a bid to push credit in the run-up to the close of the financial year, Bank of Maharashtra has decided to pare its base rate by 10 basis points to 10.60 per cent with effect from February 21.

The public sector bank has also said it will offer housing loans up to Rs 30 lakh at the Base Rate for a repayment period of five years under the floating rate option.

Home loans above Rs 30 lakh and less than Rs 75 lakh, and Rs 75 lakh and above will be charged 11.10 per cent (Base Rate + 0.50 per cent) and 11.35 per cent (Base Rate + 0.75 per cent) interest respectively for repayment period of five years under floating rate option.

The bank has waived processing charges, which range from Rs 4,000 to Rs 12,500, for housing loans up to Rs 25 lakh.

Read more »

Karnataka Bank crosses Rs 50,000 cr biz

Karnataka Bank Ltd has surpassed a business turnover of Rs 50,000 crore during the current financial year, according to Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank. Quoting Mr Bhat, a bank release said here on Thursday that the bank plans to cross a business turnover of Rs 54,000 crore by the end of the current financial year.

Read more »