As a step towards fulfilling the year end targets, banks have taken recourse to increasing interest rates on bulk deposits instead of retail deposits.
As a step towards fulfilling the year end targets, banks have taken recourse to increasing interest rates on bulk deposits instead of retail deposits.
State Bank of India (SBI) said it is losing the banking opportunities in the Middle East due to lack of regulations on Islamic banking in India. The Middle East is viewed as a major market for these products, due to high wealth in this area.
The Reserve Bank of India intends to bring in a new set of rules on the Business Correspondent (BC) system as a step ahead in its aim of speeding up financial inclusion in all unbanked parts of India.
The BC system was introduced by the RBI in 2006 in which NBFCs that don’t accept public deposits, [...]
State Bank of India (SBI) is intending to raise about Rs 10,000-20,000 crore by the way of rights issue and is sure that a proposal along these lines might be announced in the budget. OP Bhatt, chairman of SBI told during the next 5 years, SBI will require Rs 40,000-50,000-crore capital, along with tier-II capital [...]
The Asian Development Bank (ADB) will loan $ 300-million to help India grow its micro, small and medium enterprises, the bank said in a statement here. The statement said, “The ADB Board of Directors today approved a sovereign loan of $ 50-million and a partial credit guarantee of up to $ 250-million for the micro, [...]
Leading bankers cheered the Union Budget 2010-11, especially the steps taken on farm loan repayment, capital infusion in PSBs and interest rate funding to underprivileged sections, saying that these would improve the health of the system.
State Bank of India’s chief financial officer, S S Ranjan, said that the budget was geared towards growth and has [...]
Pranab Mukherjee’s decision to allow companies and NBFCs to set up private banks in the country has raised the hopes of many like ADAG and Aditya Birla Nuvo. But RBI has expressed its reluctance to ease its norms. Last time RBI has permitted new private banks was in 2002 to Kotak Mahindra Bank and Rabo [...]
Jyotivardhan Jaipuria, who is MD & head of India research, Bank of America-Merrill Lynch said that he thinks the banking sector will be an outperformer this year. As the sector is dependent on the economy, it will gain from higher growth. The 3 main factors affecting this sector are credit expansion, lower non-performing loans and [...]
Banks will required to lend at least Rs 1,68,000 crore in less than 50 days to reach the 16% increase in credit set by RBI for the present fiscal. As year on year credit expansion up to February 12 is just 9.9% compared to the targeted 16%, it is quite doubtful that banks will achieve [...]
Indicating toughening of interest rates in the industry, India’s biggest private sector lender ICICI Bank on Thursday increased deposit rates in certain tenures by up to 0.50% with immediate effect.
After this, the rate on deposits for 390 days goes up to 6.75% as against 6.5% previously, ICICI Bank spokesperson said. Interest rates on deposits with [...]
Cheques will soon come with more security features such as water marks and hidden logo. This was decided when Reserve Bank of India (RBI) asked banks to adopt extra steps to avert forgeries and frauds.
Over and above the extra security features, the cheques that will be issued by commercial banks as well as rural banks [...]
In order to grow the private banking sector, banks are now aiming at the rich from smaller towns. The growth in these towns is much more since these markets are not so nicely penetrated though bigger cities continue to bring in volumes. During the recent years, banks have been focusing on their private banking business, [...]
Berating the banking sector for its inability to reduce interest rates, the Economic Survey said borrowers are looking at optional and low-cost funding sources while cash-rich banks are keeping their excess money with the Reserve Bank of India.
The pre-Budget statement about India’s financial health said, “The transmission of monetary policy measures (geared towards reviving economic [...]
RBI has recommended that the BPLR system be replaced by a base rate system below which no lending can be done. This recommendation comes in the backdrop of the BPLR system failing to achieve what it was originally intended for - transparency in lending rates charged by banks. The report submitted by the working group [...]
The evolution of the BPLR can be traced back to September 1990 when the first attempt to rationalize the administered lending rate structure was made by removing multiplicity and complexity of interest rates. According to this structure, the advances of scheduled commercial banks were divided into six slabs and progressively higher interest rates were prescribed [...]
All loans given after 01 April 2010 will be calculated as Lending rate = Base rate + X. The variable X will be based on parameters fixed by the banks which could include Operating costs, duration of loan, risks involved etc. This would also include charges relating to specific borrowers.
Unlike the manual clearing of cheques where there is a possibility of many human errors and subsequent delay in clearing, the MICR code on the cheque printed with a unique magnetic ink usually iron oxide has magnetic material present in it and thus makes it machine-readable and almost error proof! Under this method the reading [...]
On Thursday, ICICI Bank said that it foresees the interest rates to go up from the 2ndquarter of the forthcoming financial year, since investment activities will go up from then on.
The branches of banks and their front offices are set to recover their lost glory. A year back, problems in worldwide financial markets and subsequent economic slowdown affected the sector.
Union Bank of India foresees an increase in non-performing assets (NPA) in the forthcoming quarters. In fact, the bank has already seen slippages due to its restructured loans. The bank’s chairman and managing director MV Nair said that till December, the bank has seen a 5% reduction in the restructured loan portfolio worth Rs 4,700-crore. [...]
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