Banker to wealthy Indians, too

Customers can meet in the Sapphire conference room, keep their valuables in the Topaz locker room and freshen up in the Opal dressing room. This is State Bank of India's(SBI) 'by invitation" 4000 sq.ft. branch called "Kohinoor Banjara", which will cater to Hyderabad's swish set.Minimum opening balance :Rs 1 crore. The country's largest lender is carrying out a curious experiment on the assorted group of people that make up wealthy India. This crorepati branch in the tony Hyderabad neighbourhood of Banjara Hills will offer frills that include personalised relationship managers, a round-the-clock locker facility, doorstep pick-up and drops. However, wealth management, advisory and related services-considered derigueur for private banking-will be provided only at the branch. The Bank has set itself an ambitious target as far as clientele is concerned, from prosperous Hyderabad businessmen to Tollywood film stars. It acquired 25-30 clients within four days of operations,a SBI executive said. Predictably, SBI's crorepati branch has created a buzz within banking circles.(BS 21092010)

Indian Bank to disburse Rs 100 crore through SHGs

Indian Bank plans to sharpen its focus on financing through self-help groups(SHGs) targeting disbursement of Rs 100 crore this fiscal. The Bank has since disbursed Rs 335 crore to about 33000 SHGs across the country, with focus on the Southern States in the last 3 years as advised by Mr.V.Ramagopal, the Executive Director. The Bank, which has a network of 27 special branches handling this category of financing, plans to open 7 more such branches this year. SHG members are utilising the loan amount for various income generating activities such as tailoring, pickle making and small scale textile business. The members also organise exhibition-cum-sale as part of their marketing initiative.(BL 21092010)

Core-Banking software developed for small banks

Perfect Software Solutions Pvt. Ltd., a venture by a group of IT technicians based in Kozhikode, has developed a core-banking software that can be used even by small banking institutions such as cooperative banks at a minimal cost. The software, styled"Score" can be operated on windows and linux platforms, according to Mr. K.C.Biju,Managing Director of Perfect Software Solutions. He said that small co-operative banks could not adopt core-banking software solutions developed by companies outside the state and avilable in the market because of the exorbitant expenses involved. The software developed by the company will make avilable all the details of the customers of every branch of the bank on a single platform. This will enable customers carry out transactions from any of the branches and the details of the transactions would reach their mobile phones through SMS.(BL 20092010)

PM reviews financial inclusion efforts

The Prime Minister,Dr. Manmohan Singh, on Friday reviewed the progress made on the financial inclusion front by the Bankers in the country.
He was briefed on the efforts being taken to reach banking services to the 73,000 rural habitations, having population of over 2,000 people (according to the 2001 census) by March, 2012. The efforts include use of technology- based models,as well as banking intermediaries such as business correspondents. Besides the Reserve Bank of India Governor, Dr.D. Subbaro,the others present on the occasion include,Mr. R.Gopalan, Secretary(Financial Services),Ms.Usha Thorat,RBI Deputy Governor and Dr. K. C. Chakrabarty,RBI Deputy Governor.(BL 18092010)

Deposit, lending rates set to rise, but not before Oct.

Lending and deposit rates are set to rise following the hike in repo and reverse repo rates by 25 basis points and 50 basis points respectively by the Reserve Bank of India.But the hikes may not be effected before October as credit growth is yet to pick-up, say bankers. It is also likely that deposit rates may go up before lending rates as there is a need to improve the sluggish deposit growth. According to the CMD of Union Bank of India, deposit rates will have to go up in order to incentivise savers. "Deposit growth is lower than the RBI's projection. If it continues to be low, it cannot support the credit growth, which will pick up in the busy season. So the priority at this point of time has to be deposit growth",he said. The same view has also been shared by some other bankers.(BL 17092010)

Finance Ministry gets SBI's formal proposal for raising capital

The Finance Ministry has received a formal proposal from State Bank of India for its capital raising plans during 2010-11, a senior official has said. Mr. R.Gopalan, Secretary(Financial Services) told that they had formally received a proposal. The actual instrument has not yet been decided. There will be discussions between the Finance Ministry and SBI. After that only the capital raising route will be finalised. The SBI Chairman,Mr. O.P. Bhatt had earlier said that the Bank was looking to raise capital to the tune of about Rs 20,000 crore through a right issues before the end of the current fiscal.(BL 20092010)

Oriental Bank raises Rs 500 crore capital

Oriental Bank of Commerce (OBC) has raised capital of Rs 500 crore to fund business growth and strengthen its capital adequacy.This is the first time in the current fiscal that the Bank has mobilised capital.Of the Rs 500 crore capital raised, the Tier-I capital component stood at Rs 300 crore and the Tier-II capital was Rs 200 crore.For Tier-I capital raising, perpetual debt instruments with annual coupon of 9.05% was issued. For Tier-II capital raising, bonds with annual coupon of 8.68% was issued,a bank official said.(BL 20092010)