PRESS RELEASES

RBI  has announced reduction in interest rates by reducing the repo rate and reverse repo rates by 100 basis points each.  The repo rate is now 6.50% the lowest since JAN 2006  and the reverse repo rate drops from 6 to 5% , the lowest in 3 years.  Reliefs were also announced for housing finance companies , exporters , SMEs. ( source 081208)              

Bank advances have grown by 29.9 %

Bank advances have grown by 29.9 % on a year on year basis while bank deposits grew by 23.6 % on a y-o-y basis. Bulk of this growth has been in fixed deposits of maturities of more than 1 year. ( source BS 141208)

SBT has entered into a tie up

SBT has entered into a tie up with united india insurance co to provide personal accident insurance cover to its savings account holders. The insurancecover is of rs 5 lacs at a subsidised premium of rs 50 per annum per account holder. By jan 2009 the scheme is to be available at 715 branches across the country ( source bl 101208 )

RBI has cancelled the licences

RBI has cancelled the licences of two cooperative banks-Bhavnagar Mercantile Coop Bank Ltd and Siddhpur Commercial Coop Bank Ltd. They could not be revived even with the help of Gujarat government. ( source BL 121208)

Kotak Bank is looking

Kotak Bank is looking at launching a corporate credit card product by April 2009.( source BL 131208)

Interest rates in the banking sector

Interest rates in the banking sector are set to drop in the next 2-3 weeks. This would help the borrowers taking loans for home , auto and education . The rate cut is likely to steeper as per Mr K V Kamath of ICICI Bank. ( source BL 141208)

SBT has opened an extension counter

SBT has opened an extension counter with core banking facility a Sabarimala Temple. The bank has also provided an ATM to withdraw cash. ( source BL 021208)