BANKS IN NEWS 27-05-2009

RBI will soon up the circulation of bimetallic Rs 10 coins. The coins are already in circulation in Mumbai and Kolkata. The new coins could replace the Rs 10 currency notes. (OLM 030609)

From 2nd May 2009 only cheques above Rs 5 lakhs will be considered ‘high value’. After 1st August 2009, this will go upto Rs 10 lakhs. From 1st November 2009, there will be no high value clearing. (OLM030609)

Credit card business in India expects to grow 8-10% in FY’10 down from 15% in FY’09. Meanwhile default rate in credit card payments was up at 10% in FY’09 from 6% four years back. (OLM030609)

SBI under its Gold Deposit scheme has collected 548 kgs of the precious metal in 2 months. The scheme which started on March 16 aims at bringing the gold into the mainstream from the households. (BS240509)

PNB has signed MOU with Ashok Leyland to extend finance to the latter’s commercial vehicle customers. Financing of vehicles under the MOU through the credit guarantee fund trust for micro and small enterprises would obviate the need for collateral security and third party guarantee. (BS230509)

RBI has suggested that banks should hold once a week banking facility on the lines of ‘weekly bazaar’ in villages with a population of over 2,000. The number of such villages is 1.09 lakhs while number of branches in rural and semi urban areas is 47,000. It will expedite the process of financial inclusion. (BS220509)

PNB is collaborating with US based Money Gram International to increase its business through remittance services. This will be offered from the bank’s 4,600 branches in the country. The agreement is to facilitate transfer of money from abroad within minutes through the partner agents. (BL250509)

Bank of Baroda has cut interest rates on deposits of various maturities between 25 and 75 basis points wef 27th May 2009. The bank had earlier cut deposit rates on 11 th May 2009. (BL260509)

Andhra Bank is launching its gold loan scheme in all branches of its Mumbai zone which covers branches in Maharashtra, Gujarat and Goa. The rate of interest is 14.25% and the amount of loan depends on the amount and carat of the gold and repayment is a one time payment and no monthly instalments after a tenor of 2 years. (BL260509)

PNB plans to launch an international travel card that will limit the risk for customers and protect them against currency fluctuations. The travel card will be prepaid and will depend upon the amount the customer wants with validity upto 3 years. The plan is to have in 3 currencies , the euro, dollar and pound by September 2009. (BL260509)

Banks in News

As many as 20 public sector banks, including Canara Bank, Bank of Baroda and Union Bank, have failed to achieve the annual farm sector lending target till November 2008. Only seven banks could achieve the stipulated target of disbursing 18 percent of net bank credit to the agriculture sector. (HT190509)

Banks and consumer finance companies will now have a new tool to assess the credit worthiness of individual customers. CIBIL and TransUnion have launched a service to provide personal loan score for individuals based on which lenders can take decision to approve loans. (HT150509)

Bank employees and officers around the country are likely to strike work on 12th June as per call given by United Forum of Bank Unions. This is due to failure to arrive at a settlement over their wage revision negotiations.(BL130509)

SBI has cut deposit rates by 25-50 basis points in some maturities wef 18th May 2009. This is the second time in a fortnight that they have cut deposit rates.(BL140509)

Axis Bank cut its benchmark prime lending rate by 50 basis points from 15.25% to 14.75% with immediate effect. This is likely to benefit corporate and SME loan rates.(BL150509)

IDBI Bank has decided to slash interest rates on term deposits by 50 to 100 basis points across the board wef 21st May 2009. A one year fixed deposit will earn 6.75% and the highest interest would be 8.25% in 5-10 years maturity. ICICI Bank has also cut deposit rates by 25-50 basis points across select maturities wef 11th May 2009.(BL160509)

RBI Governor has said at Hyderabad that banks must pass on the cost benefits from technology based products and services to customers. (BL190509)

Union Bank of India has launched its special housing loan scheme with a combination of fixed and floating rates of interest. During the tenure of the loan 8% fixed rate of interest will be applicable for the first year. The floating rate will become applicable from the second year till loan is fully repaid. The bank will offer loan for a maximum period of 20 years and the maximum amount of loan will be Rs 50 lacs. The scheme is available till 30th September 2009. (BL200509)

BANKS IN NEWS

PNB has proposed to set up a Farmers’ Training Centre in South Orissa’s Ganjam district. The FTC would provide training to the farmers on different aspects linked to their profession. Initially 40 farmers would be given training with free lodging and boarding. The proposed FTC would be the 9th in the country. (BS080509)

Banks are considering partially modifying the repayment terms of education loans to help the borrowers because of the economic slowdown which is impacting the job market. The proposal is to increase the moratorium period from one to two years and the repayment period from 5-7 years to 7-10 years. (BL110509)

Under Corp compassion scheme, Corporation Bank has donated Rs 1 lakh to Ramakrishna Mission Seva Pratishthan, a hospital run by Ramakrishna Mission. (BL110509)

Public sector banks have major plans of broadening their ATM network this financial year. With RBI doing away with licensing for opening offsite ATMs, PSBs have geared themselves to expand their reach through ATMs. ATMs help in reducing costs and simultaneously promotes brand building. (BL080509)

Corporation Bank has reduced interest rates on their housing, vehicle, education and personal loans w.e.f.04.05.2009. (BL060509)

Corporation Bank has signed MOU with Karnataka State Organic Farming Mission for promotion of organic farming. Corporation Bank will be nominated as the preferred bank by the Mission for financing farmers and other entities in taking up organic farming. (BL070509)
Updated, 6th May 2009

BANKS IN NEWS

State Bank of Travancore has revised domestic deposit interest rates effective 1st May 2009. The major rates are 7% for 180 days to less than 1 year, 8% for 1 year to less than 2 years, 8% for 2 years to less than 999 days, and 8.50% for periods above 5 years. Senior citizens will get 0.5% additional interest on deposits of Rs 5,000/- and above for periods of 1 year and more (BL020509)

Citi Bank has reduced its prime lending rate by 25 basis points to 14.75% from 1st May 2009. (BL020509)

IDBI Bank has decided to cut interest rates on fixed deposits in seven maturity buckets by 25 basis points and simultaneously hiked the interest rate on long term deposit(over 5 years to 10 years duration) by 50 basis points. The revised rates are effective 4th May 2009. Now a 1 year fixed deposit would fetch 7.25%. The maximum interest rate is 8.75% for 5 to 10 years. (BL010509)

HDFC Bank has signed an agreement with Guruvayoor Devaswom for offering e-collection through HDFC Bank Payment Gateway. The website offers a variety of payment options including direct debit to their account with HDFC Bank or payment by a debit or credit card of any bank. HDFC Bank has designed a special product for religious institutes to make the donation process simple for devotees across the world. (BL010509)

PNB has announced a reduction in its BPLR by 50 basis points to 11% effective 1st May 2009. The bank has also revised the floating interest rate on housing loans by 25 basis points. It would now range from 8.75 to 10% depending on the tenors and amounts. PNB has also reduced interest rates on term deposits. The peak rate now is 7.50% for 3 years to 5 years as against 8% earlier. (BL010509).

BANKS IN NEWS

Canara Bank has launched SME Sulabh a new business model for increasing credit flow to the MSME sector. These centralized processing centres are established initially at seven places in Ahmedabad, Bangalore, Chennai, Coimbatore, Delhi, Hyderabad and Mumbai. The centre will aim at fast processing and quick delivery of credit to MSMEs. (BL050509)

SBI has decided to cut interest rates on fixed deposits by 25 basis points across the board w.e.f 4th May 2009. As per revised rates,1 year FDs will fetch 6.75% and 1,000 days deposit will earn 8%. (BL030509)

Bank of Baroda has pipped Canara Bank in terms of net profit and total business for FY 09 to become the third largest public sector bank after SBI and PNB. (BS040509)