BANKS IN NEWS

South Indian bank has launched ‘SIB Mahila’, a savings bank product for women. The product which is linked with recurring deposit provides 10 technological products/services for free including house to house transit insurance for Rs 50,000/- and an accident insurance cover for Rs 1 lakh. The product is available in two variations. The Mahila savings account can be opened with a minimum balance of Rs1,000/- and a recurring deposit account for minimum amount of Rs 100/- for minimum period of 12 months. Under the Mahila Plus savings account the minimum balance specified is Rs 25,000/- and the minimum RD amount is fixed at Rs1,000/-. There are other benefits as well. (BL200609)

Banks should be prepared for serious competition from the Postal department. The department plans to provide the convenience of on site ATMs to its SB account holders at select head Pos across various states. As of March 2009 Pos had 22.89 crore SB accounts and the aggregate amount in these accounts was Rs22,217 crores. The minimum balance to be maintained in a SB account is Rs50/- for non cheque book account and Rs 500/- for cheque book accounts. The maximum balance in individual account is Rs 1 lakh and Rs 2 lakh for joint accounts. Interest earned on savings accounts with post offices is tax free.(BL210609)

SBI has signed MOU with Credit Guarantee Trust for Micro and Small Enterprises CGTMSE to cover micro and small enterprises under portfolio guarantee scheme. Under this agreement the bank can consolidate all eligible loans on a quarterly basis and obtain guarantee cover from the Trust. (BL240609)

Bank of India is cutting interest rates on domestic term deposits by 25 to 75 basis points across various maturities effective from the 27TH June 2009. (BL240609)

Union Bank announced a 25 basis points reduction in its prime lending rates to 11.75 percent wef 1st July 2009. IDBI Bank cut its deposit rates by 25 to 50 basis points in different maturity baskets.(230609)

Indian Bank has opened specialized branches to promote micro finance. The bank has obtained licences for opening 25 specialised branches of which 22 has already been set up. The bank has lent Rs1,500 crores to 2,40,000 self help groups. (BL230609)

SBI reduces its BPLR by 50 basis points to 11.75 percent effective 29-06-09. All loans including home loans which are linked to BPLR will benefit from the latest rate cut. Other public sector banks are also likely to pare their lending rates. (BL250609)

Banks would observe a country wide strike in the subsidiary banks of SBI on 6th July 2009. The strike is to oppose the merger plans of the subsidiary banks with the parent SBI. (BS250609)

BANKS IN NEWS

Leading banks alongwith NABARD and Uttarakhand government are setting up training institutes in all 13 districts of the state to enhance entrepreneur skills and employment opportunities among the youth. A decision to this effect was taken at a meeting of the sub committee of the SLBC on agriculture and rural development. SBI would be setting up training centres in nine districts and the remaining four would be covered by PNB, Bank of Baroda and Uttaranchal Gramin Bank. Unemployed youth would undergo training in dairy development farming, repairs and other traditional skills. (BS200609)

Yes Bank said it would recruit 900 people including 500 specialists in nine months to drive expansion in six key segments. (BS200609)

Bank of Rajasthan has entered into an alliance with Karvy Stock Broking to provide customers access to the online investment platform (l-zone) of Karvy. With this tie up the bank’s customers can open a trading account with Karvy. l-zone would provide a single window interface for investing in secondary markets, IPOs and mutual funds. (BS200609)

UCO Bank is likely to reduce its BPLR by 50 basis points to 12 percent effective from 27th June 2009 subject to ratification by its board. The bank has also planned to cut its deposit rates by 25-50 basis points. (BS200609)

BANKS IN NEWS

SBI will double the number of branches for retail sale of gold coins to 1,100 in the current fiscal to reach out to all important centres of the country. SBI also undertakes supply of customized gold coins to corporates. It is also in the process of setting up a dedicated bullion branch in Mumbai to undertake bullion business in a focused manner. (BS090609)

PNB aims to reach out to the customers in rural areas of the country through banking correspondents and also on the back of technology enabled services like biometric smart cards. PNB has opened its first technology enabled branch on a pilot basis at Daringibadi in Orissa’s Kandhamal district. The customers are issued biometric smart cards with the help of which they can make transactions at their doorsteps without going to the bank’s branch. PNB’s business correspondents are provided with a point of transaction machine. (BS110609)

Bank Unions oppose merger of public sector banks. They are protesting the move of the government. (BL120609)

SBI has announced an across the board 25 basis points cut in deposit rates effective 15th June 2009. This is the third cut in deposit rates this fiscal; rates were cut by 25 basis points and 50 basis points each in April and May. (BL140609)

PERSONAL CREDIT SCORE

With CIBIL and three other credit bureaus maintaining a repository of credit information on individual accounts, banks henceforth would be in a better position to take informed decisions on their lending. Banks would be able to access information about the credit worthiness of a borrower from these credit bureaus and decide about the disposal of a loan application. In fact differential pricing would also be introduced in case of credit cards specially. Each individual having borrowing arrangements including credit cards from banks would be rated with a credit score. This credit score would be in the range of 300-900 points, with a high credit score implying the characteristics of a better borrower as per available track record.( In case of wrong reporting by banks to the credit bureaus the concerned individual has recourse to get the defect amended by intimating the credit bureau the correct facts.) The score would determine the possibility of further loans being available from the banking sector and the cost of such funds, if sanctioned. Essentially it would mean a credit profile of an individual which would impact the availability of other services as well. Obviously individuals with high credit scores would be the focus of preferred attention.

To manage and continuously ensure a good credit score it would be necessary to have credit discipline. How does one achieve it?

Well the fundamental principle is to stay within one’s means. If this is possible then there would be no default in payments, payment of instalments on personal loans and credit cards would be on time, balances in credit card accounts would have to be kept low, building a decent credit history of managing credit cards satisfactorily and trying to manage with fewer personal loans and credit cards. Weightages are given for each of these features in a personal loan or credit card, with scores being given according to the prescribed benchmark best practices. Any negative feature in an account would adversely affect the credit score which is an aggregation of the scores for each of the above parameters. From December 2009 it is proposed to make available the personal credit score to individuals also.

It is therefore essential to judiciously manage the personal loans and credit cards by an individual to have access to bank funds in times of need.

EDUCATIONAL LOANS

With emphasis on improving the education prospects of students, educational loans are extremely handy for enabling the students to achieve their aspirations. Banks in India are providing the necessary funding for pursuing quality higher education in India and abroad. Public sector banks are particularly active in promoting educational loans on customer friendly terms.

Graduation, post graduation and professional courses offered by educational institutes approved by the state and central government are eligible for educational loans from these banks. Courses pursued abroad in Universities recognized by the local governments are also considered for funding facility. Generally for study in India, the amount of educational loan available is Rs 7.50 lakhs while for studies abroad it could be upto a maximum of Rs 20 lakhs. Collateral security is not insisted upon for loans upto Rs 4 lakhs but third party guarantee is required for loans between Rs 4 lakhs and Rs 7.50 lakhs. In case of loan amount being higher than Rs 7.50 lakhs then collateral security becomes essential. The applicable interest rate is linked to the loan amount sanctioned and repayment starts after six months to one year from completion of the course study for which loan was granted. The repayment period is usually between 5 to 7 years. Girl students get benefit in interest rate between 0.5 to 1 percent.

The eligibility is a good academic track record with proof of admission obtained from the recognized University for the approved course. One of the parents who can provide stable income proof with Income tax returns has to be the co applicant with the eligible student. Expenses allowed for loan are tuition fees, books and study material, stay etc. Certain banks fund travel cost in case of study abroad.

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)

Standard Chartered Bank announced launch of ‘India

Standard Chartered Bank announced launch of ‘India Consortium Project’ to provide preventive eye care to the rural poor. Under the project the bank will open 40 vision centres across 6 states over three years. These are UP, Haryana, Uttaranchal, Tamil Nadu,Delhi and MP. It has already benefited nearly 2 million people in India through curative eye care since 2003.(BL090409)

From 1st April 2010 the balance in savings bank

From 1st April 2010 the balance in savings bank accounts will earn interest on a daily basis following RBI’s decision to implement new interest calculation methods for such accounts. At present banks calculate interest on SB accounts on the minimum balances held during the period from the tenth day to the last day of the month. This change is likely to benefit the average salaried class and pensioners. (BL220409)

RBI has done away with the requirement

RBI has done away with the requirement of prior regulatory approval for setting up offsite ATMs. It is felt that the move would allow banks to expand their ATM networks more easily and thereby their reach of banking. (BL220409)

RBI has cut the repo rate and reverse

RBI has cut the repo rate and reverse repo rates by 25 basis points. The reverse repo rate is now 3.25% and the repo rate is 4.75%. RBI has indicated that the concept of BPLR has lost its relevance as a reference rate and would review the present system to make credit pricing more transparent. (BL220409)

According to National Housing Bank sources

According to National Housing Bank sources barely 2,800 accounts amounting to Rs 550 crores had been sanctioned during the 2 years till December 2008 under the reverse mortgage loan scheme for senior citizens.(BT020409)

Bank of India is planning to double the number of

Bank of India is planning to double the number of its ATMs across India during the current fiscal. The bank which has around 500 ATMs will add 500 more during 2009-10 according to a senior official of the bank. (TOI120409)

State Bank of Hyderabad will recruit over 2,000

State Bank of Hyderabad will recruit over 2,000 clerical and supervisory staff soon to support its expansion plans. The bank will add 170 new branches shortly to its present strength. (BL110409)

SBI has extended till 30th September 2009

SBI has extended till 30th September 2009 the facility whereby its existing SME customers can avail themselves of term loans as well as 20% additional working capital at 8% concessional rate of interest. For new SME customers with loan requirements upto Rs 5 lacs the new rate is 8% and for those whose requirements are above Rs 5 lacs but less than Rs 25 lacs the rate offered is 10%. However the loan should be guaranteed under the Credit Guarantee Trust Fund for Micro and Small Enterprises. (BL120409)

Bank of India is planning

Bank of India is planning to implement the branchless banking model in 48 districts in the country after Raigad district in Maharashtra. More than 46,000 households have been provided with biometric smart cards in Raigad where business correspondents visit the households of rural customers to provide bankng services. The bank has opened more than 17 lac savings bank no frills account. (BL130409)

Banks Loans and Advances

Banks Loans and Advances

Banks are providing credit facilities in multiple ways according to the purpose of the loan and the security that is offered by the customer. The end use of the loan is important as banks funds are meant to be productively employed in order that the borrower is able to repay the amount of loan with interest. For this to happen the borrower should either generate surplus funds by utilizing the loan for profitable purpose or he should have sufficient repaying capacity as in case of personal loans,consumer loans, travel loans, credit card usage etc. It must be remembered that loans need to repaid as only then can the funds be recycled for further use or else the bank loans which are its assets would not be able to pay its liabilities which are the bank deposits. If such a situation arises and persists then the failure /collapse of the bank is inevitable.

Bank loans and advances can be of the following types—
Overdrafts /loans against Fixed deposits, Recurring deposits, Post office National Savings Certificates, LIC policies, Stocks of reputed listed companies: a fixed percentage of the face value/ surrender value of the security is allowed as overdraft which can be a revolving facility or loan to be repaid before maturity of the security in question subject to execution of documents as prescribed by the bank. The security has to be pledged to the bank for availing the loan. For loans against deposits the interest charged on the loan is linked to the deposit rate whereas in case of others the overdraft rate is generally applicable.

Personal loans, Consumer loans, Travel loans etc are part of retail loans promoted by banks to customers who have the repaying capacity based on their monthly income. The interest rates for such loans are comparatively higher as it is generally unsecured. Unsecured loans are those where the bank does not have any security for the loan given. In the event of non payment by the borrower the prospects of recovery become that much difficult.

Automobile loans, Home loans are given to acquire two/three wheelers, cars and residential property respectively. These are secured loans as the automobile is hypothecated to the bank and the property is mortgaged. They are released only when the respective loan account is adjusted in full with interest. The respective interest rates are reasonable in view of the security and also the fact that the industry/economy needs to be pushed. While auto loans can stretch upto seven years, home loans can be availed in certain cases upto 30 years also. There is considerable competition among banks for providing loans in this category and hence it is essential that the customer chooses the bank which provides the best rates over the entire tenure of the loan including a check of other charges/fees and exit routes if necessary. There is also the concept of floating and fixed interest rates which the customer should carefully examine for the overall interest cost during the period of the loan.

Educational loans are being encouraged by banks for higher studies in India and abroad. Each bank has its own rules but usually there are different monetary limits for availment which determine the nature of security to be provided. For educational loans it is necessary for one of the parents to be a coapplicant with the candidate who is to pursue the study. These are generally loans for seven years with reasonable interest rates and repayment starts after the study is over.

All loans are subject to the discretion of the bank and fulfillment of the stipulated criteria for being eligible. However banks are covered by Fair Practices Code for Lenders and customers have the right to be adequately informed in case they are aggrieved. It is also critical to have a satisfactory credit history of borrowing as customers of dubious reputation and doubtful integrity are rejected.. Credit Information Bureau India Ltd is maintaining the credit profile of each individual customer for reference of banks while taking lending decisions.

Credit card use is also a form of availing bank funds which come at very high cost as they are totally unsecured with a revolving facility over an extended tenure till non renewal or cancellation.

Fair Practices Code for Lenders

Fair Practices Code for Lenders

This code has been adopted by banks for setting out the fair practices expected during lending by banks. The code applies to the following areas---
# application for loan and their processing

it gives the time schedule for acceptance and disposal of the loan application. Reasons for rejection are required to be intimated to the applicant. The borrower is also informed about the fees/charges that are levied according to the nature of loan.
# loan appraisal and terms and conditions

the terms and conditions under which the loan is granted is suitably informed along with copies of documents executed by the borrower, on request, is given. Any changes in interest rates during the loan period is also to be intimated by the bank.
# post disbursement handling


# list of recovery agents.

The detailed information from the above perspective is available to the borrower customer so that there is complete understanding of the loaning process of banks. The borrower also has a responsibility in strictly complying with the terms and conditions in order that the bank’s funds are appropriately utilized for the purpose it is meant. The end use of funds is a critical component of bank lending and is required to be strictly adhered

Banker’s Code of Commitment to Customers

Banker’s Code of Commitment to Customers

It is a voluntary code signed by banks, which lays down standards of fair banking practices to be followed by banks while dealing with individual customers. It is a ready reckoner for customers to know what they can expect from banks in their dealings with them in the following areas---

Current, savings and all deposit accounts,
Pension, PPF accounts,
Collection and remittance facilities
Loans and overdrafts
Foreign exchange services
Currency exchange facilities
Card products

Third party products offered through bank’s networks

The signatory banks have pledged to act fairly and reasonably in all dealings with the customer; to help customers understand the nature of financial products and services being offered and to deal quickly and with care all cases of wrongdoing.

It is a significant tool empowering the customers to get the best possible services from banks in a transparent and satisfactory manner. The banks are committed to publicize this code by making available copies thereof to their customers. All areas of possible conflicts and doubts are covered by this code for the customer to make an informed and considered decision while dealing with banks.

The banks are committed to share with the customers the details of their fees and charges for the different services that are available, the normal time taken for cash receipts and payments, the cheque collection facility and the options available and the procedure to be followed in case of grievance redressal of the customer.

The customer additionally has the right to approach the Banking Codes and Standards Board of India, which is the monitoring agency approved by RBI and participating banks, in case they feel that the bank is falling short of the commitments enumerated in the subject code.

Banks in News

Axis Bank has cut its benchmark prime lending rates by 50 basis points to 15.25% wef 1st April 2009. The bank has also cut home loan rates which are now 9.25% for loans upto Rs 30 lacs and above Rs 30 lacs it is 10.25%. (BL040409)

State Bank of India has recruited 30,000 recently despite the depressed economic conditions. During the last 2 years the bank has opened around 2,000 branches in the country taking the total number of branches to 11,500.(FE290309)

Corporation Bank has associated with LIC in launching LIC credit cards. Two variants of the LIC card, Gold and Classic were launched. They can be used for payment of premium by the policy holders.(HINDU310309)

Fresh Social Measures adopted by Banks

Fresh Social Measures adopted by Banks

PNB and Guruvayoor Dewaswom have entered into an agreement to provide online VAZHIPADU booking through its internet banking services. Through this facility, a devotee can make offerings from anywhere by logging on to www.guruvyurdewaswom.org. Nineteen offerings that can be booked online are listed on it

Corporation Bank has opened the Alagappa University- Corporation Bank Public Library at Karaikudi in December 2008 even though the bank has no presence there.

Corporation Bank has also announced an yearly awarding of ‘Corp Bank Scholar’ gold medal for best outgoing student of Alagappa University every session.

State Bank of Travancore has activated an internet banking facility for online payment of donation to Guruvayoor Temple.

PNB has offered convenient schemes for rickshaw pullers by providing a means of self employment to the poor and deprived rickshaw pullers community. Under this scheme started at Varanasi rickshaw pullers can become owners of the vehicle after 3 years. Health and medical insurance cover is also provided. They are required to open a no frills account with PNB.
Under yet another scheme at Patna, rickshaws are given free of cost to the pullers while they pay a maintenance cost of Rs 10/- per day. They also sell water, soft drinks and other merchandise to the riders, profits from which are shared equally between the rickshaw pullers and a NGO. They are also given insurance cover, uniforms etc.

The TRAM campaign of Canara Bank involves contribution of Rs 10/- a month from all staff members which is meant to be distributed among the disabled and the sick. Every year around Rs 6 lacs is given to the needy people.

Canara Bank also has welfare activities for students. Every year around Rs 10 lacs is spent for primary education by giving note books, scholarships, uniforms and other educational aids to the poor meritorious students of government schools.

There would be heritage galleries at historical branches of State Bank of India shortly . These galleries would exhibit old furniture, letters and currency notes of earlier times including the accounts of Annie Besant, Motilal Nehru and others.

State Bank of Hyderabad has recently donated a pick up van as part of bank’s community service campaign, to Centre for Social Service. The van would be used for transport needs of girls for sending them to schools.

Fair Practices Code for Lenders

This code has been adopted by banks for setting out the fair practices expected during lending by banks. The code applies to the following areas---
# application for loan and their processing

it gives the time schedule for acceptance and disposal of the loan application. Reasons for rejection are required to be intimated to the applicant. The borrower is also informed about the fees/charges that are levied according to the nature of loan.
# loan appraisal and terms and conditions

the terms and conditions under which the loan is granted is suitably informed along with copies of documents executed by the borrower, on request, is given. Any changes in interest rates during the loan period is also to be intimated by the bank.
# post disbursement handling


# list of recovery agents.

The detailed information from the above perspective is available to the borrower customer so that there is complete understanding of the loaning process of banks. The borrower also has a responsibility in strictly complying with the terms and conditions in order that the bank’s funds are appropriately utilized for the purpose it is meant. The end use of funds is a critical component of bank lending and is required to be strictly adhered

Banker’s Code of Commitment to Customers

Banker’s Code of Commitment to Customers

It is a voluntary code signed by banks, which lays down standards of fair banking practices to be followed by banks while dealing with individual customers. It is a ready reckoner for customers to know what they can expect from banks in their dealings with them in the following areas---

Current, savings and all deposit accounts,
Pension, PPF accounts,
Collection and remittance facilities
Loans and overdrafts
Foreign exchange services
Currency exchange facilities
Card products
Third party products offered through bank’s networks

The signatory banks have pledged to act fairly and reasonably in all dealings with the customer; to help customers understand the nature of financial products and services being offered and to deal quickly and with care all cases of wrongdoing.
It is a significant tool empowering the customers to get the best possible services from banks in a transparent and satisfactory manner. The banks are committed to publicize this code by making available copies thereof to their customers. All areas of possible conflicts and doubts are covered by this code for the customer to make an informed and considered decision while dealing with banks.
The banks are committed to share with the customers the details of their fees and charges for the different services that are available, the normal time taken for cash receipts and payments, the cheque collection facility and the options available and the procedure to be followed in case of grievance redressal of the customer.
The customer additionally has the right to approach the Banking Codes and Standards Board of India, which is the monitoring agency approved by RBI and participating banks, in case they feel that the bank is falling short of the commitments enumerated in the subject code.

KNOW YOUR CUSTOMER KYC NORMS

Banks are required to comply with KYC norms for allowing customers to operate their accounts. Also the formalities are required to be complied with at the time of opening of accounts for identification of depositors with the objective to prevent banks from being used in any fraudulent or anti social manner.

Customers are expected to cooperate with the banks for submission of all papers/ documents in respect of their identity and residential proof. They should not allow their account to be used for any fraudulent or anti social activity which is on the increase. PAN details are required to be given in respect of transactions above a specified limit. Cash transactions are also not permitted beyond a threshold limit. RBI is insisting on strict adherence of these requirements to prevent money laundering through bank accounts. KYC norms are meant to identify the depositor and his source of funds.

INSURANCE OF BANK DEPOSITS

To protect the interest of depositors there is provision of insurance of bank deposits upto Rs 1 lakh in deposit accounts with banks. The Deposit Insurance and Credit Guarantee Corporation of India insures the deposits with insured banks upto the extent of Rs 1 lakh in each account.

The deposits in different branches of the same bank of an individual depositor are taken together for computing the total value of Rs 1 lakh. However where the depositor has deposits with more than one bank the insurance cover is applied separately for each deposit in different banks. The insurance cover is available for all deposit accounts like savings, current, recurring, fixed deposits etc.

NOMINATION FACILITY

While opening deposit accounts with banks the facility of nomination is provided to minimize scope for harassment at a later date. Settlement of deceased accounts had become a major problem for banks as the legal heirs were complicating the issue. Moreover the rightful owner of the funds in the deceased deposit account was being needlessly harassed for want of clarity in the matter. Nomination in deposit accounts of individuals has therefore become mandatory to mitigate the problems in settlement of deceased accounts.

The depositor may nominate a person to whom the bank may make the payment of the balance in the deposit account in the event of his death. The nomination confers the right upon the nominee to receive the amount in the account of the deceased from the bank. The right of any other person against the nominee is not affected by such payment.
Separate nominations for each deposit account can be made and nominations can be changed any time during the period of deposit. In case of joint accounts all the account holders have to jointly nominate an individual.

Gujarat High Court has criticized the practice of government

Gujarat High Court has criticized the practice of government nominating members of political parties as non official directors on boards of Public Sector banks, saying it sends a wrong signal. Non official directors are usually appointed to represent the interests of depositors. They are required to possess special knowledge or practical experience in various fields.(BL250209)

ICICI Prudential Life Insurance and PNB

ICICI Prudential Life Insurance and PNB have entered into an arrangement to enable policy holders to make payment of premium through the branches of PNB. In the first phase the facility would be available in Punjab,UP,Uttaranchal, Haryana and WB.(BL270309)

Several private banks have reduced the credit limits

Several private banks have reduced the credit limits of card holders and it appears that many customers are yet to be informed. The banks in question are HSBC, ICICI, HDFC and Standard Chartered.(BL270309)

RBI will for the first time

RBI will for the first time put into circulation two new coins of Rs 10 each issued by the government. Each coin will weigh 7.71 gms and the outside diameter will measure 27 mm.(BS270309)

From 1st April 2009 use of third party ATMs would be free.

From 1st April 2009 use of third party ATMs would be free. (BS270309)

In case you are planning to buy a house

In case you are planning to buy a house with a loan from SBI in an environment friendly residential project which has been rated by the Indian Green Building Council, then the bank is willing to provide benefits like reduced margins, softer interest rates and zero processing fees.(BL270309)

Borrowers from the IT sector

Borrowers from the IT sector who have taken housing loans and have been laid off can have their loans restructured, meaning they would be given additional time for adjustment of their loans according to spokesperson of Indian Overseas Bank.(BL280309)

OBC has also decided to reduce its PLR from 12.50% to 12.25%. (BL280309)

OBC has also decided to reduce its PLR from 12.50% to 12.25%. (BL280309)

Three Kolkata based banks

Three Kolkata based banks have reduced their prime lending rates effective 1st April 2009. While UCO Bank has reduced its PLR by 50 basis points to 12%, United Bank and Allahabad bank have cut their rates by 25 basis points to 12.25%.

HDFC reduces its prime lending

HDFC reduces its prime lending rate by 50 basis points to 14% wef 25-03-09. The cut in rates will accrue to all existing floating rate customers over the next 3 months. (BL250309)

RBI is planning to expand cheque

RBI is planning to expand cheque truncation system to 6-7 centres in the country after the success in NCR. At present 70% of the cheques by volume in NCR are cleared through CTS. Cheque truncation system would be next in Chennai. (BL240309)

BANKS IN NEWS
In 2007-08, the 15 banking ombudsmen received around 55,000 complaints of which 49,100 i.e. 81 percent were cleared. Out of the total number of cases 36 percent complaints were rejected and 53 percent cases disposed of through mutual settlement or an award. The main reason for rejection was that complainants had approached the ombudsman before asking the bank concerned to address the grievance. Thus 40 percent of the cases rejected fell in this category, while another 16 percent cases were made without sufficient cause. (BS 230209)
Banks are looking towards micro finance as part of direct lending. Yes Bank is doing direct lending to individuals while banks like SBI and Union Bank of India are lending to self help groups. Yes Bank has 3 micro finance branches in Mumbai’s Chembur, Thane and Worli areas. It has so far covered around 2,500 borrowers and has given loans upto Rs 50,000 to be repaid in one year. (BS 230209)
SBI announced a limited period offer to disburse auto loans for which interest rates would be frozen at 10 percent for one year. The scheme applies to all auto loans disbursed upto May 31 and interest rates will revert to the applicable rate after June 1 next year. The bank would offer loans for a seven year period with interest calculated on daily outstanding balance. (BS 210209)
ICICI Bank lost more than Rs 11 crore due to over 8,000 cases of credit card frauds last year. A total of 12,959 such cases were reported during last year in which banks lost Rs 36.54 crores. No cases were reported by IDBI Bank, Canara Bank and Indian Overseas Bank related to credit card frauds last year.(BS 180209)
Standard Chartered Bank has joined National Financial Switch NFS shared ATM network which will allow its customers to access funds from over 30,000 ATMs across the country. The NFS aims to connect all banks to a common switch thus allowing sharing of ATMs by banks. (BL 210209)
SBI has been appointed as the sole booking agent for sale of Tata’s Nano car as per SBI’s spokesperson. (FE 200209)

TELL ME MORE

--Market for card based point of sales is currently valued around Rs 32 crores and is expected to grow at a compounded annual growth rate of 18% to touch about Rs 48 crores by 2012. In 2002, the card based POS terminal penetration stood at 0.3%( i.e for every 311 retail shops there was one card based POS terminal). This penetration is expected to increase to about 4.6% by 2012. This means that Indian retail would have as many as 126,000 card based terminals by then , which is now about 65,000.

--Parliament enacted the Payment and Settlement Systems Act in 2007 to regulate the payment and settlement systems as there are many unregulated and unauthorized payment systems.

--Passive gold funds are exchange traded funds that passively track gold prices. Active gold funds invest in shares of companies that are involved in gold mining. Gold funds provide investors an opportunity to diversify from equity or debt asset class.

--Companies will have to pay a penalty for offences such as misstatement of facts in the prospectus or fraudulent luring of investors at the time of IPOs according to the new companies bill.

--7 Indian micro finance companies have been ranked among world’s top 50 for 2008.

BANKS IN NEWS

Banks across the country have lost Rs 6.57 crores to internet frauds in 233 incidents of cyber crime during the last fiscal. (BS 170209)

Indian Overseas Bank has introduced a new product-Commercial Cash Credit against Jewellery. The product is aimed at meeting the financial needs of small business, professionals and self employed who can utilize their gold jewellery of 20 ct and 22 ct. to get cash credit facility upto Rs 10 lakh and minimum of Rs 50,000/-. The rate of interest will be 12.75% fixed for cash credit. (BS 170209)

SBI has introduced a point of sale POS machine comprising biometric details of account holders which would go to villages where the bank customers can withdraw or deposit funds under the finger print based method. This replaces the smart cards which have a magnetic strip that is used for swiping at the POS machine before any transaction. (BS170209)

SBT has launched special loan scheme for micro, small and medium enterprises at an interest rate of 8 percent. The concessional rate of interest will be available for existing units with limits upto Rs 10 crores. Term loan repayable within 5 years is provided for purchase of equipments, tools and generator sets. Working capital demand loans upto 20 percent of the limits enjoyed by MSME units is also available. Both the facilities are available at 8% for the first 12 months after which normal rates as per activity and industry would be charged. (BL 090209)

Syndicate Bank collects Rs 6 crores everyday under their Pigmy Deposit Scheme for which 4,500 agents work. The scheme was relaunched in 2007 under which the bank also extends small loans upto Rs 2 lakhs. As part of its financial literacy programme the bank has 8 financial literacy centres in various parts of the country. It has opened 32 lakh no frills account of which nearly 4.5 lakh accounts have zero balance.(BL100209)

BANKS IN NEWS

Complaints regarding debit of accounts even though the ATMs have not disbursed cash for various reasons have attracted the attention of RBI. RBI has concluded that delay in settlement of complaints is not justified and moreover it would discourage customers from using ATMs. It was decided that banks shall reimburse to the customers amounts wrongly debited within a maximum period of 12 days from the date of receipt of customer complaint.

Bank of Baroda Flexi RD account

A recurring deposit account with flexibility of having varying monthly instalments. The core monthly instalment to be minimum Rs 100/- which can be increased in multiples of Rs 100/- to a maximum of three times the core amount. The maximum monthly instalment can be Rs 10,000/- only. The term of the deposit account can be 12 months to maximum of 36 months. Loan upto 95 percent of the total deposit is allowed.

UCO Bank money back RD account

Long term recurring deposit account with intermediate withdrawal facility. Maturity after 120 months with first withdrawal after 60 months or withdrawal after 36months and 72 months and balance after 120 months.

HDFC Family Savings Group

This account enables 4 individual savings accounts of the same family to be linked together under family savings group. The minimum average quarterly balance for the group is applicable instead of individual accounts. Family member with NRI status is eligible to be part of the group. 5 free cash withdrawals allowed from SBI ATMs and upto 2 free demand drafts on HDFC account per month upto a maximum of Rs 25,000/ per instrument. International debit card with free bill payment facility with internet banking and mobile banking. Cash delivery facility at home on payment of Rs 50/- per delivery and free passbook delivery. Additional facility of 25 percent discount on locker rent charges, free demat account for the first year and Gold debit card on one time payment of Rs 250/-.

HDFC Bank Multi deposit account

Savings or current account linked to multiple fixed deposit accounts with facility of transfer of amount from fixed deposit accounts in units of Rs 1/- so that interest loss is minimum on fixed deposits Free international debit card and free cheque book facility is also available.

UCO Bank Flexi deposit

Fixed deposit account with part withdrawal facility allowed in multiples of Rs 5,000/-

United Bank- United Anand Deposit scheme

Fixed deposit for 12 to 60 months with minimum deposit of Rs 10,000/- and in multiples of Rs 1,000/- with additional deposit of Rs 5,000/- being minimum. Current account to be opened simultaneously with zero balance through which 90 percent of the deposit can be availed as overdraft. Specially designed pass book is issued instead of deposit receipt.

HDFC Bank Super Saver facility

Savings or current account linked to fixed deposit account with overdraft facility upto 75 percent of the fixed deposit. Flexibility in deciding period of deposit, maturity, principal amount before the fixed deposit matures.

Axis Bank Encash 24 ( Flexi Deposit)

Savings bank account linked with fixed deposit account. Balance in excess of Rs 25,000/- in savings account gets transferred to fixed deposit account in multiples of Rs 10,000/- for fixed deposits of 181 days maturity. The fixed deposits have auto renewal facility after 181 days. The minimum average quarterly balance in the account to be Rs 10,000/-. Withdrawals against cheques/ATMs by transfer of Rs 5,000/-, if necessary, from fixed deposit account to savings account.

Citi Bank Protect and Grow Deposit

Safety of a fixed deposit and the growth potential of a mutual fund in one investment. Deposit of minimum Rs 15 lacs for at least one year with option to decide the percentage of the investment in any mutual fund. The minimum amount of investment in any fund to be not less than Rs 5,000/-.

India expects US dollar 3 billion from World Bank

India expects US dollar 3 billion from World Bank to help recapitalize 17-18 state run banks by end of March 2010. Funds are needed to meet the central bank’s capital adequacy rules. ( FE 190109)

ICICI Bank has bagged

ICICI Bank has bagged ‘Best Rural Marketing Initiative’ award for its unique campaign on rural marketing ‘Kamdhenu.’ ( FE 190109)

HDFC Bank would now disburse floating home loans

HDFC Bank would now disburse floating home loans upto Rs 30 lacs at 9.75 percent and at 10.75 percent for amounts above Rs 30 lacs to new borrowers Average loan size of HDFC Bank is about Rs 15 lacs. State Bank of India offers loans above Rs 20 lacs at 10.25 percent and ICICI Bank at 12.50 percent. (BS 170109)

HDFC Bank has decided to lower interest rates

HDFC Bank has decided to lower interest rates on retail loans by 200 basis points while interest rates on lending to corporates will be reduced by 100 to 150 basis points. The rates for retail loans will be effective from 19-01-2009, while rate change for corporates would be done in a phased manner. (BS 190109)

Urban cooperative banks have been asked by RBI

Urban cooperative banks have been asked by RBI to explore faster methods of collection of dollar denominated cheques and to pay interest at savings bank rate for the period of delay between receiving payment in their account and ultimate credit to the account holder.( BS 190109)

National Insurance Company in association with Bank of Baroda

National Insurance Company in association with Bank of Baroda has launched the Baroda Health Mediclaim Insurance scheme exclusively for account holders of Bank of Baroda. The scheme provides for reimbursement of hospitalization expenses of policy holders and their family members. It is extended to the account holder, the spouse and two dependent children under 25 years of age and can be claimed under a single policy. ( BL170109)

Standard Chartered Bank has decided to wind up

Standard Chartered Bank has decided to wind up the consumer finance business of its wholly owned subsidiary due to rising defaults. Consumer finance business was carried out by Standard Chartered Investments and Loans India Ltd., under the brand name ‘Prime Credit’. It has an unsecured personal loan portfolio of around Rs 200 crores. ( Bl 180109)

National Housing Bank, a subsidiary of RBI

National Housing Bank, a subsidiary of RBI has entered the retail sector with launch of two deposit schemes—NHB Sunidhi deposit scheme and NHB Suvriddhi (tax savings) term deposit scheme.
Interest rate on Sunidhi scheme is 9.25 percent for 12/24 months and 9 percent for 36/60 months, while interest on Suvriddhi is 8.75 percent compounded quarterly. The minimum deposit under Suvriddhi scheme is Rs 10,000/ and maximum of Rs 1 lac with lock-in period of 60 months as it is a tax savings scheme.( source BL 160109)

Private sector banks want RBI

Private sector banks want RBI to increase the deposit insurance coverage from Rs 1 lac to allow for a level playing field between public and private banks. (source BL 170109)

Personal accident insurance product introduced by State Bank

Personal accident insurance product introduced by State Bank of Travancore-SBT UNI Suraksha-is now available at all 719 branches of the bank. It is offered in association with United India Insurance Company for benefit of SBT account holders. It has an insurance cover of Rs 5 lacs at a subsidized yearly premium of Rs 50/-. All savings bank account holders including non-residents in the age group of 10 to 79 years of age are eligible to join the scheme. (source BL 180109)

Applications supported by blocked accounts ASBA

Applications supported by blocked accounts ASBA for subscribing to IPOs have been started by few more banks like PNB, YES Bank, CITI Bank, Bank of India, HSBC, State Bank of Hyderabad.
( source BL 060109)

Banks are taking up the scheme for taking over loans

Banks are taking up the scheme for taking over loans of farmers from money lenders. Banks are extending this scheme mostly to existing crop borrowers with interest rate linked to the PLR. Syndicate Bank allows loans upto Rs 2 lacs under small credit scheme by using Pygmy agents who are also used for promoting Pygmy deposit scheme. Under its two debt swap scheme SYND JAI KISAN and SYND SMALL CREDIT the bank has given out loans worth Rs 214 crores and Rs 70 crores respectively. UCO Bank has started from July 2008 debt swap scheme under which loans for Rs 25,000 are given and they have already disbursed Rs 7.50 cr. (BS 120109)

According to estimates 25-30 percent

According to estimates 25-30 percent of the 27 million credit card users in India make cash payments to settle payments. ICICI and HDFC Bank are levying fee on such payments. ICICI charges Rs 100 for every transaction while HDFC charges Rs 50. ( source BS130109)

Business hours at ICICI BANK branches

Business hours at ICICI BANK branches on Saturdays cut down to 5 hours from 9am to 2pm w.e.f 07-02-2009. Currently business hours on Saturdays are similar to other week days. (source BS 130109)

Banks are using mobile ATMs in places like Dilli Haat.

Banks are using mobile ATMs in places like Dilli Haat. Baroda Fair, and Pushkar cattle fair for the convenience of the customers. Diebold which manufactures and manages ATMs for banks has deployed 11 mobile ATMs in India by State Bank of Patiala, OBC, PNB, Bank of India, J&K Bank. A mobile ATM costs Rs 30 lacs while a stationary ATM costs Rs 5 lacs. ( source BL 050109)

Federal Bank launched its online trading

Federal Bank launched its online trading product-Fed-e-trade- in association with Geojit Financial Services. Retail clients will now have access to online trading in equities, derivatives, IPOs and mutual funds through Geojit’s online tracking platform. 3-in-1 integrated account will comprise of savings account, demat account with bank and online trading account with Geojit. ( source BL 070109)

South Indian Bank has launched a product

South Indian Bank has launched a product ‘SIB-Eighty Plus’ offering 11 per cent rate of interest to the general public and 11.25 percent to senior citizens. Because of bank’s 80 years of existence the scheme is launched which would be open only upto 31-3-2009. The minimum deposit is Rs 50,000 with no upper ceiling. (source BL 130109)

United Bank basic SB account

United Bank basic SB account For rural/ urban areas covering industrial/ agricultural labourers and non pensionary senior citizens. Account can be opened with minimum Rs 10/- with zero balance with 5 withdrawals per month. For cheque book facility minimum balance is Rs 250/-

OBC CASA Deposit Scheme

OBC CASA Deposit Scheme Minimum balance Rs 500/- with free ATM and debit card and free accidental insurance upto Rs 50,000/- for first year.

OBC Jeevan Sarathi

OBC Jeevan Sarathi For physically challenged people to open savings account. The certifying authority to be CMO of any government hospital. Zero minimum balance with no charges. Issue of demand drafts at par (excepting against cash). Free ATM card with internet banking and accidental insurance upto Rs 1 lac

SBBJ Suraksha SB Account

SBBJ Suraksha SB Account Minimum average quarterly balance Rs50,000/- with free mediclaim policy upto Rs 1 lac for one year

State Bank of Bikaner & Jaipur Silver Savings Account

State Bank of Bikaner & Jaipur Silver Savings Account Minimum average quarterly balance of Rs 5,000/- with free accidental insurance upto Rs 1 lac for first year. 25 cheque leaves free with multi city cheque book and facility of utility payment through ATM.

Syndicate bank Multi city SB for HNIs

Syndicate bank Multi city SB for HNIs Minimum average balance of Rs 25,000/- with facility to encash self cheques upto Rs 50,000/- in one day at all CBS branches.

Bank of Baroda’s new savings account

Bank of Baroda’s new savings account—Nagrik Bachat Khata Open account with initial amount of Rs 50 with no charges if balance of Rs 50 is not maintained. No. of withdrawals not to exceed three in a month through withdrawal slip with pass book. Cheque book of 10 leaves will be issued free for one year.

Axis Bank Zero Balance SB Account

Axis Bank Zero Balance SB Account No average quarterly balance with free debit card and accidental insurance cover upto Rs 2 lacs. Free mobile banking with at par cheque facility with clearing limit of Rs 50,000 and free quarterly statement with tele and internet banking.

SAVINGS BANK ACOOUNTS

Axis Bank Easy Access Savings Account Min. quarterly average balance to be maintained is Rs 5,000 in urban and metro centres and Rs 2500 in semi-urban areas. The account would provide at par cheque facility with ATM, tele banking, mobile banking facility. The interest would be payable on quarterly basis.

Banking Products and Services

Banking Products and Services Trust banking is committed to providing information to the common users of banking services for a hassle free and enriching experience. We shall be regularly trying to give a wide cross section of information for the benefit of the average user. The effort is to eliminate information asymmetry that exists so that banking choices and decisions are made after comparative study and thorough consideration.

The changes that are taking place are so wide spread and fast that it becomes difficult to procure data from so many multiple sources at any given time. Trust banking is endeavouring to collate the maximum information about the different Bkg Prod and Ser. that are available in the banking domain for presenting it to its readers to take their pick. Through this new section we shall be highlighting the schemes of different banks for a better understanding of the available products and services. ( For confirmation the respective banks may be consulted)

PNB and Sambalpur based Bharat Integrated Social Welfare Agency

PNB and Sambalpur based Bharat Integrated Social Welfare Agency BISWA launched a technology based financial inclusion project in Orissa. The first project started in Kandhamal district with the self help groups SHGs promoted by BISWA are using smart cards. ( source BS 231208)

An internal audit undertaken by the Finance Ministry

An internal audit undertaken by the Finance Ministry has revealed that officers entrusted to recover debt as per orders of Debt Recovery Tribunals often settled cases at a low amount, leading to a loss of Rs 1036 crores. Interestingly these officers do not have the power to reduce the amount stated in the order issued by the presiding officer. At present there are 30 DRTs and 5 debt recovery appellate tribunals. DRTs take up cases of Rs 10 lacs and above. ( source BS 311208)

Andhra Bank will be selling gold coins

Andhra Bank will be selling gold coins through 162 branches initially in 4gm, 8gm, and 10gm denominations competitively priced and cheaper by Rs 1000 compared with those sold by some private banks. The gold coins imported from Switzerland would carry an Assay certificate guaranteeing purity on par with international standards. ( source BL 020109)

Bank held responsible by banking

Bank held responsible by banking ombudsman for delivering debit card and PIN to unauthorized persons at the mailing address of the card holder. ( source 301208)

High interest rates and the economic slowdown

High interest rates and the economic slowdown have forced banks especially the private and foreign players, to scale down loan growth to check defaults. As a result Direct Selling Agents DSAs who were responsible for originating over 30 per cent of retail loans have been badly hit. ( source BE 291208)

SBI is planning to set up 383 internet kiosks at atm centres

SBI is planning to set up 383 internet kiosks at atm centres located at railway stations across the country within the next couple of months. In addition to ticket reservation facility, other internet banking facilities would be available. The bank is also planning to open 300 more atms over the next few weeks taking the total no. Of atms to 10,000 (source bs281208)

Certain credit card issuers are reducing the benefits

Certain credit card issuers are reducing the benefits available to customers. While certain banks are withdrawing the basic cash withdrawal facility or lowering them, others are contracting the rewards programme to keep a check on unsecured loans. ( source BS 311208)

Rbi cuts repo rate by 100 basis points

Rbi cuts repo rate by 100 basis points to 5.5 per cent and the reverse rate to 4 per cent with immediate effect.Cash reserve ratio crr also cut by 50 basis points to 5 per cent From 17th january 2009. (source bs 030109)

Public sector banks have brought down interest rates in housing loans

Public sector banks have brought down interest rates in housing loans to stimulate demand in the housing sector. Loans upto Rs 20 lakhs will be available at interest rates between 8.5-9.25 per cent a year for tenures upto 20 years for the first five years. Offer would be valid for new loans upto 30-06-2009. Margin would be 10 to 15 per cent with no processing charges and no prepayment penalty. There would also be free life insurance cover for the outstanding amount. ( source BL 161208)

Corporation Bank has opened the ALAGAPPA

Corporation Bank has opened the ALAGAPPA UNIVERSITY-CORPORATION BANK PUBLIC LIBRARY at Karaikudi on 28-12-2008 even though they have no presence there. Corporation bank also announced CORP BANK SCHOLAR gold medal for best outgoing student of Alagappa University from the current session. ( source BL 311208)

PNB announced a 50 basis point cut in its benchmark

PNB announced a 50 basis point cut in its benchmark prime lending rate from 12.5 per cent to 12 percent from 01-01-2009. Also there will be cut in deposit rate from 9.5 per cent to 8.5 percent for deposits of 1 year to less than 3 years. ( source BL 301208)

IDBI Bank is introducing a new deposit scheme

IDBI Bank is introducing a new deposit scheme from 01-01-2009 of maturity period of 1100 days with interest rate at 9.5 percent for normal depositors and 10 per cent for senior citizens. ( source 301208)

PNB and Guruvayoor Dewasom have entered

PNB and Guruvayoor Dewasom have entered into an agreement to provide online VAZHIPADU booking through its internet banking services. Through this facility, a devotee can make offering from anywhere by logging on to www.guruvyurdevaswom.org. Nineteen offerings that can be booked are listed on it. ( source BL 291208)

Banks are offering schemes that provide customers coverage

Banks are offering schemes that provide customers coverage of fraudulent transactions in case of loss or theft of credit and debit cards. Two banks – Citi bank and Kotak bank jointly with CPP Assistance Services Pvt Ltd., a UK based company are providing this facility. Card Protection Programme is one that assists customers by blocking all debit and credit cards in case of theft or loss seven days before and after reporting. ( source BL 281208)

Private banks are offering personal loans through ATMs.

Private banks are offering personal loans through ATMs. Pre approved loans are being marketed through ATMs to select clients after a due diligence of their track record. ( source BL 261208)

Banking Ombudsman received 47887 complaints in the financial year 2007-08,

Banking Ombudsman received 47887 complaints in the financial year 2007-08, an increase of 24 per cent from the previous year. Out of them 29 percent are against private sector banks, 29 per cent against State Bank group, 26 percent against other nationalized banks and 13 per cent against foreign banks. Majority of the complaints 21 per cent relate to credit cards. ( source BL 251208)

State Bank of Travancore has launched an innovative SMS service

State Bank of Travancore has launched an innovative SMS service called ‘ SBT Care’ as part of its efforts to improve customer relations. SBT Care can be invoked by sending an SMS to 9847198471. Each SMS sender is called back to gather details about the complaint. ( source BL 171208)