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)