Recently, RBI Governor, D Subbarao has indicated that RBI is in favor of deregulating the savings bank interest rate, which is currently fixed at 3.5% p.a. for deposits up to Rs. 2 lakh. Deposits over Rs. 2 lakh are currently deregulated allowing banks to fix their own rate.
Interest on savings bank account is the only [...]
Unlike most countries, multi-layers of loan securitisation, derivatives trading using deposit holder’s money, and lending to known sub-prime quality borrowers are not allowed in India. RBI has also been strict in monitoring the health of the banks using several measures and reports.
Public sector bank, Bank of Baroda intends to open 12 foreign branches this fiscal.
M D Mallya, CMD of the bank said, “By June, we will have a branch in Auckland and we will open our tenth branch in the United Kingdom. This fiscal, we also plan to expand in the African subcontinent and would open [...]
The banking sector is anticipated to come back to normalcy in this result season according to the analyst estimates. The leading 7 Indian banks are anticipated to increase their net profit by an average estimated 13% year-on-year (y-o-y) in March 2010 quarter. Except Bank of India (BoI), the rest of 6 banks may post a [...]
HDFC and ICICI Bank are facing hard time with the new FDI norms that declares them foreign banks. Now the RBI is expected to bail out these banks.
It is possible that the central bank would shortly be sending out a directive which would categorize these banks as “foreign-owned Indian banks”. This move by RBI would [...]
The 2nd biggest public sector bank in India, Punjab National Bank has started a huge financial inclusion scheme with an intention to have 1, 00, 000 touch points till the year 2013.
30 touch points have already begun functioning in parts of Bulandshahr in Uttar Pradesh, Rohtak in Haryana and Gaya in Bihar. With this, the [...]
Despite anticipations of an increase in interest rates, Public sector bank, Bank of India (BoI) has reduced rates by up to 75 basis points on fixed deposits of Rs 1 crore and more.
A statement released by the bank says, “The revised interest rates on Domestic Rupee Term Deposits of Rs 1 crore and above will [...]
There has been a spurt in the share of loans offered by housing finance companies (HFCs) to non individuals. This trend can lead to higher non performing assets (NPAs) according to CARE.
As per a research report by HDFC Securities there has been a reduction in the asset quality of foreign banks functioning in India despite an increase in their loan books, including personal loans. The loan books of these banks have posted profits.
Nokia- a leading mobile producer and supplier intends to commence its mobile banking service in India. The service would be called as Nokia Money, as per a Nokia official.
Earlier, any deposit in the account between the 10th and the end of the month, would not earn the account holder any interest as it is not part of the interest rate calculation. Any withdrawal between the same period, would result in lower interest income as the lowest balance would be taken into account [...]
Interest on savings accounts would be computed on a daily basis from 1st April 2010. while the savings account holders are happy, the banks are not happy. This is because the banks’ margins are set to be impacted with the introduction of this new system.
SBI has started a strategic training unit (STU), to bring the bank’s complete training system under a single command, led by a chief general manager. This was done with the aim of improving expertise, especially among the 25,000 extra recruitment that the bank is scheduling for the present financial year.
Crisil has said the cost of deposits for banks will increase by 10-20 basis points as they start computing interest on savings account balances on an everyday basis. The effect will be maximum for banks which have a major portion of salary accounts with highly variable balances.
The country’s biggest lender State Bank of India has said it will not increase its lending rates right away but will wait for additional signs from the Reserve Bank’s impending annual monetary policy.
With quality Indian education becoming beyond the reach of the average Indian students, finance is the first thing many of them think about an educational loan. This is where banks have stepped in with novel education loans.
After personal loans, banks are now targeting educational loans as the next big market. To capitalize on this segment [...]
ICICI Bank and HDFC Bank, two of India’s biggest banks in which foreing investors hold over 51% equity, will now be treated as ‘foreign’ banks.
The government’s decision will affect the prospective investment plans of these banks in associates or in segments which have a ceiling on foreign investment.
DLF, India’s biggest real estate company, has selected Goldman Sachs as an advisor as it tries to find buyers for Aman Resorts, a luxury hotel chain it had purchased in November 2007 for $400 million.
As a bid to restrict the misuse of legal methods for spreading rebellion in the country, the Govt. has frozen 18 bank accounts held by terror suspects under the Unlawful Activities (Prevention) Act.
The bank accounts were maintained in high alert areas such as Pune, Guwahati and West Bengal and have been frozen as per section [...]
State Bank of India has hiked its interest rates on foreign currency non-resident bank deposits and non-resident external rupee term deposits with immediate effect.
FCNR(B) deposits in US Dollar with maturity period of one year to below 2 years will now carry a rate of 1.92% (1.84%) while deposits for 2 years to below 3 years [...]
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