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)