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)