Vijaya Bank to focus more on branch expansion

With the Govt. directive to drive up CASA levels ,Vijaya Bank wants to place more emphasis on opening new branches.In 2010, the Bank plans to open about 100 branches,which it believes would give a boost to its CASA (current account savings account) ratio.According to the Executive Director,Vijaya Bank,with more technology driven products such as RTGS,NEFT and speed clearing in the payment and settlement arena, the float funds historically available to banks will continue to get reduced. However, with the daily interest regime ,customers are now comfortable keeping funds in savings account,which also meant easy liquidity and help Bank maintain its CASA level. The Bank's current CASA stands at 24.24%, and it targets a 25% CASA level this year.(BL 30082010)

PNB's online remittance facility

Punjab National Bank has launched PNB NRI Remit- India, an online remittance facility and PNB World Travel Card. The remittance facility is an online cross-border remittance solution to send money from the US to India and has been launched in association with the Bank of New York Mellon, said a release issued by the Bank. The World Travel Card is designed as a prepaid wallet for persons travelling abroad that can be used outside India. It is in association with Master Card and is available in dollar,euro and pound.(BL 30082010)

IDBI Federal Life Insurance

IDBI Fortis Life Insurance Co.Ltd. a joint venture company floated by IDBI Bank, Federal Bank and Fortis Insurance International , has changed its name to IDBI Federal Life Insurance Company Ltd. w.e.f.August 24. The company has obtained the approval of the Registrar of Companies and Insurance Regulatory and Development Authority after completing all legal formalities.There is no change in the shareholding pattern of the company.(BL 28082010)

PSU Banks to woo customers with cheaper loans this festive season

Due to intense competition in the consumer banking, banks are planning to woo individuals with cheaper loans even as interest rates are on the rise. Consumer loans,car loans could be now available at lower rate, even some bank may relax the margin requirements for the customers,it is learnt.Mr. Kamath,CMD, PNB says the bank is planning to lend at lower rates to small borrowers.Car loans, home loans at a fixed rate would be cheaper. However, private banks are not in a mood to bring down the loan rates.(ET 28082010)

KMB launches non-resident credit card

Kotak Mahindra Bank has launched a credit card specially designed for the bank's non-resident Indian customers. The NRI credit card is available against term deposit of Rs 1 lakh and above and the credit limit is upto 80% of the deposit.The card carried features such as four times reward points on international spends, fuel surcharge waiver, choice on redemption of reward points and no-charge equated monthly instalments for 3 months.The card also provides the customers the freedom to purchase and pay in rupee while travelling in India.(BL 28082010)

StanChart Bank to focus on unsecured loans again

Encouraged by the fall in loan losses, Standard Chartered Bank once again plans to focus on unsecured consumer loans. Bank's regional head, consumer banking, stated that Bank has nearly 2.50 million customers and as such may start pushing unsecured loans business. The Bank is looking at its credit card and personal loan business but will not lend at the lower end. Unsecured loans currently account for less than a third of the Bank's Indian consumer assets.(FE 28082010)

Moody's assigns 'C' to SBI

Moody's has assigned a bank financial strength rating (BFSR) of 'C' - to State Bank of India (SBI). This rating reflects the bank's dominant franchise as the largest commercial bank in India,and SBI's sound financial position. SBI is present in all financial sectors through its non-banking subsidiary companies, which we believe provides huge potential for the group to cross-sell it's products,the global credit rating agency said in a report.(BL 28082010)

New India Assurance seeks to use banking correspondents

The RBI with a view to giving a leg-up to financial inclusion,recently permitted banks to appoint banking correspondents (BCs) in areas -typically villages- where opening a branch may not be viable. The BCs could be small businesses, such as kirana shop owners,or even influential individuals. These people provide basic banking services to the local populace on behalf of the bank that has appointed them.New India Assurance has now suggested to the Insurance Regulatory and Development Authority(IRDA) that the company - and all insurance companies- be allowed to use banking correspondents to service the insurance sector also.At present, according to IRDA's regulations, micro insurance can be sold only directly by the insurance company or through non-governmental organisations or self help groups.The IRDA is considering the idea as said by Mr. Ramadoss,CMD,New India Assurance.(BL 27082010)

ICICI allots shares to BOR shareholders

ICICI Bank on thursday said it had allotted its shares to the shareholders of Bank of Rajasthan (BOR) following the amalgation of the two private lenders.As much as 25 shares of ICICI Bank were allotted for 118 shares of BOR, ICICI informed the Bombay Stock Exchange. ICICI's shares have been allotted to those shareholders of the erstwhile BOR whose names appeared in the register of depositories as on the record date of Aug 25,it said.(BS 27082010)

Open no-frills a/cs for minorities but adhere to KYC norms

The Reserve Bank of India (RBI) has asked banks that while they should ensure opening of no-frill accounts by members of the minority communities,know-your-customer (KYC) norms should also be properly followed.The RBI has advised the banks to ensure opening of no-frills accounts or other accounts for students from minority communities or other disadvantaged groups.However, while opening such accounts, KYC norms, as appropriate may be followed,RBI said.(BS27082010)

Stan Chart's facility

Standard Chartered Bank has launched 'Preferred Banking' facility for the emerging affluent segment.The facility offers a combination of savings, borrowing protection and investments with a rewards programme.(BL27082010)

SBI to discuss merger of 5 associate banks with govt.,says Bhatt

After completing the amalgamation of State Bank of Saurashtra and State Bank of Indore with itself, State Bank of India (SBI) plans to discuss the issue of merging the remaining 5 associate banks with the government .SBI Chairman O.P.Bhatt said the Bank would discuss with the govt. whether it should go ahead with the consolidation of some more associates. There would be consultation with the 5 associate banks as well to make the process relatively faster and easier.(BS 26082010)

SBI not to hike rates for now

State Bank of India is not planning to raise lending or deposit rates before the end of the current quarter, said Mr. O.P.Bhatt,its Chairman. The Bank raised deposit rates by 25-50 basis points and its benchmark prime lending rate by 50 basis points last week. But it is not looking to raise its Base Rate for now, Mr. Bhatt said.He further said although liquidity is not as much as it used to be,funds are avilable. But after September,there could be pressure on liquidity due to advance tax payments.(BL 26082010)

Govt tells 4 banks to increase Casa Deposits

IDBI,UCO Bank,OBC & VIJAYA Bank get the directive from the Govt. to increase their low-cost deposits,commonly known as the current account savings account , or Casa.The directive is to lift their Casa to more than 30% of the total deposits as it has a direct bearing on their profitability and net interest margins.The share of low cost deposits of these banks was below 25% as at the end of March 2010.IDBI Bank with 14.59%, OBC with 24.97%, UCO Bank with 23.56% & VIJAYA Bank with 24.6% were below the government's comfort level.(BS 25082010)

Dena Bank to foray into syndication

State-run Dena Bank plans to enter the syndication business.For this ,the bank has set up a team in Mumbai and fixed a revenue target of Rs 25 crore for 2010-2011.Besides,the bank has appointed an agency to identify the potential countries and business model for its overseas foray. The Bank is expected to start its operations from Mumbai by December 2010 and will expand it to other parts of the country in a phased manner.(BS 25082010)

State Bank of Indore branches to operate as SBI's

All branches of State Bank of Indore will function as branches of State Bank of India from friday,said the Reserve Bank of India,in a press release issued on Tuesday.Customers ,including depositors of State Bank of Indore will be able to operate their accounts as customers of State Bank of India with effect from the said date.(BL25082010)

Credit bureaus rush in sensing growing opportunity

Banks will soon have greater choice in selecting their source of information as more credit bureaus seek a share of the growing number of financial product users in India, the world's second -fastest growing major economy,after China.While new bureaus would get an opportunity to tap the large economy,some analysts say the competition could force some of the bureaus to focus on niche,besides constantly improving products and operating on thinner margins.The first and currently the most dominant ,Credit Information Bureau(India)Ltd. or Cibil,may soon be jostled by at least three others entering the Indian market,including ExperianPic.,Equifax Inc.and High Mark Credit Information Services.(BS23082010)

Banks alarmed at rising defaults in study loans

With a rising proportion of non-performing assets (NPAs) in educational loans ,banks have approached the government seeking protection in the form of a credit guarantee fund of at least Rs 2500 crore.According to estimates given by bankers to the Union Finance Ministry,NPAs had risen above 2%of the educational loan portfolio as on March 31 from an insignificant figure before 2004-05 when a set of more liberal rules gave such loans a boost.In the educational loan scheme ,it is possible to borrow up to Rs 10 lakh for domestic education and Rs 20 lakh for studying in foreign colleges.Borrowers need not pay during the tenure of the course plus one year after.The repayment period is 5-7 years.In addition ,for loans upto Rs 4 lakh, banks cannot ask for any collateral security which is thought by bankers to have made loans more prone to turn sour.(BS 23082010)

Allahabad Bank, Ashok Leyland tie up

With a view to boost its commercial vehicle finance portfolio,Allahabad Bank has entered into a tie-up with Ashok Leyland Ltd. The Bank signed a memorandum of understanding with the company recently according to a press statement issued by the Bank. Under the tie-up , the Bank will become an accredited financier of the vehicles manufactured by Ashok Leyland and will offer quick and hastle-free financing facilities to its customers on easy terms, the release said.(BL20082010)

Banks working on customised portals for easy access on mobiles

Soon banks will start offering customised portals for customers which will make accessing the site through mobile phones easier. When a customer visits a bank's Web site using mobiles, it gets disproportionately aligned in the mobile screen. Icons that customers would normally like to see on the screen are often hidden and have to be searched for.To encourage more customers to use the mobile banking medium ,leading private and public sector banks are in talks with software providers to offer customised portals for mobile Web users.The mobile must have a GPRS connection for this.(BL19082010)

SBI LIFE tops global ranking for 2010

SBI LIFE INSURANCE has been ranked No. 1 life insurer across the globe for the year 2010,by the Million Dollar Round Table (MRDT) members.MRDT is an association of the world's best life insurance sales professionals.This is the second consecutive year in which the Bank has topped MRDT.In 2010 ,SBI Life has 2904 MRDT members ,up from 2677 in 2009.SBI Life is followed by the US New York Life and Korea's Samsung Life Insurance in the rankings.The Life Insurance Corporation of India is ranked 4th with 1218 members (BL19 08 2010)

SBI to launch floating rate term deposit product

SBI has decided to launch a floating rate term deposit product with returns linked to base rate.The floating rate term deposit is being launched to correct interest rate mismatches arising from floating rate assets being financed with fixed rate liabilities, said Mr.S.S.Ranjan,DMD,SBI.
The scheme will be introduced from September 6, a 1 year floating rate deposit will earn interest which is 50 basis points below the base rate(7.50%)ie, 7%.A 3 year deposit will fetch a return of 7.25% and a 5 year deposit will carry interest of 7.50% (BL17082010)