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)