SBI may raise rates to grab bonus money

In an effort to grab a share of the hefty Diwali bonus to employees in government and corporate sector, country's largest lender State Bank of India may raise the interest rate on term deposit rates in next few days.
"Bank may revise hike interest rate on term deposits only during festive season to get funds from people who will get bonus money. This is also will time build liquidity to manage rise in credit uptake from the third quarter" senior SBI official said. The asset liability committee would take a decision this week, official said but did not elaborate further. At present, bank has adequate liquidity to manage any immediate rise in demand for resources.The Statutory Liquidity Ratio( SLR) is about three-four per cent over minimum level 25 per cent of deposits prescribed by Reserve Bank of India, he added.(BS 29092010)

Corporation Bank starts branchless banking in W. Bengal

Mr. Pranab Mukherjee, Finance Minister, inaugurated five branchless banking units (Grameen Vikas Kendras), a biometric ATM of Corporation Bank and its 1170th branch at Sagardighi in Murshidabad district of West Bengal on Monday,the bank said in a press release .
Mr. Mukherjee said that the Government, in consultation with the Reserve Bank of India, has decided to provide appropriate banking facilities to habitations having population in excess of 2000 by March 2012.The benefits of welfare programmes such as those provided by the Mahatma Gandhi National Rural Employment Guarantee Act or payment of wages in lieu of work, pension etc. will be routed through the banks directly to the beneficiaries, so that there will be no pilferage through middlemen. Banking services will be provided to everyone within their reach through branch, mobile, internet, business correspondents, he said.( BL 28092010)

Central Bank plans Rs2500 crore rights issue this fiscal

Public Sector Central Bank of India said on Monday that it will come out with a rights issue to raise around Rs 2500 crore in this financial year. The funds will be issued for normal operations said the bank's CMD, Mr.S.Sridhar while attending a conference on " Finance and Investment" organised by CII. He further said that the bank is assessing the market and is taking all the necessary steps. The bank is yet to approach the SEBI. It will be filing its Red Herring Prospectus shortly. The bank has already appointed the merchant bankers for the rights issue.(BL 28092010)

Corporation Bank to expand branchless banking network

Corporation Bank, which uses the branchless banking model for financial inclusion, plans to bring more people under its branchless banking network. Mr. Ramnath Pradeep,CMD,said that the bank has around six lakh no-frills accounts, with an average balance of Rs 475 a customer. The Bank plans to increase the number of no-frills accounts to nine lakh,by the end of the fiscal year, under its financial inclusion plan. He said that opening of no-frills accounts is a stepping stone to enable customers to avail other banking products. The Corporation Bank has 1385 branchless banking units in Karnataka,AndhraPradesh, Goa, TamilNadu, Kerala, Gujarat, Maharashtra, Haryana & Punjab.(BL 24092010)

Toyota, UCO Bank seal car loan deal

Toyota Kirloskar Motor (TKM) Ltd. said on Thursday that it has signed an agreement with UCO Bank earlier this month to extend finance to its prospective customers. The Bank will be one of the preferred financiers for the entire range of vehicles sold by Toyota. The CMD, UCO Bank said that the tie-up will enable the Bank to increase its car loan portfolio substantially.The ED, UCO Bank said that inorder to increase the competitiveness of the Bank's Car Loan Scheme, the product has been modified and interest rate is lowered to make it more attractive in the market place.(BL 24092010)

Syndicate Bank, Vijaya Bank sign MOU for financial literacy

Syndicate Bank and Vijaya Bank have executed a memorandum of understanding (MOU) to form a trust exclusively to establish and run financial literacy and credit counselling centres across various lead districts in Karnataka.These will later be extended to other States in the country. The trust, Jnana Jyothi Financial Literacy and Credit Counselling Trust (JJFLCCT), formed jointly by both the banks according to the Reserve Bank of India guidelines, will oversee the establishing and management of these centres in 10 lead districts in Karnataka, to begin with. Mr.D.T.Pai,former CMD,Syndicate Bank will be the Chairman and Managing Trustee of the trust, and will be assisted by two other trustees. The setting up of these centres in rural, semi-urban,urban and even in metropolitan areas according to the RBI's model scheme is aimed at financial literacy and counselling for farming communities and those engaged in allied activities. In urban areas, the focus will be on activities such as individual debt counselling. The centres will educate the farming community on various banking habits and in agriculture and allied activities.(BL 24092010)

Public sector banks set up financial inclusion drive

Public Sector Banks are planning to go the extra mile with their financial inclusion efforts. While the Government has asked them to provide basic banking services to all unbanked villages with a population of over 2000 by March 2012, the Banks are gearing up to cover even villages with population of between 1000 to 2000. This was indicated by top public sector banks at a meeting held to review the progress made by banks in achieving the financial inclusion plan for 2010-2012 at the Indian Banks' Association on Thursday. Over 73,000 unbanked villages in the country have been allotted to different commercial banks for coverage through the bank's financial inclusion plans. (BL 24092010)