After maintaining number one position in India the State Bank of India is planning to be a leading foreign bank in selective nations, including Mauritius.
A senior SBI official informed, "Plans are in place to be the dominant foreign bank in few identified countries such as Mauritius, Singapore and Nepal".
SBI aims to have a major share in India-related business in high potential markets world wide.
He told working on the same line last fiscal the two of the bank's subsidiaries in Mauritius were merged to form a new entity called SBI (Mauritius) Ltd.
To create a new entity SBI (Mauritius) Ltd the bank's two partly owned subsidiaries in Mauritius namely Indian Ocean International Bank Ltd and SBI International (Mauritius) Ltd were merged.
He informed Bank of Mauritius sanctioned the scheme of merger from April 1, 2008.
He added as a result after the merger the SBI's share in SBI (Mauritius) Ltd has reduced from 98 per cent to 93.40 per cent.
Simultaneously, in the Nepal joint venture also SBI increased its share to 55 per cent from 50 per cent earlier.
SBI acquired 5 per cent stake of Nepal SBI Ltd through a competitive bid process from Agricultural Development Bank.
In the previous fiscal year SBI had funded 21 outbound merger and acquisition deals by Indian companies but in 2008-09, bank provided funds for 22 deals.
Moreover SBI is also planning to increase its presence in countries including the UK and the UAE which are having strong links with India.
He said, "Initiatives (are) under way to strengthen business in countries with a strong India linkage like the US, the UK and the UAE".
At present, SBI is having seven branches in the US and about six in the UK and in United Arab Emirates (UAE) the bank is having exchange services.
He told SBI also has a proposal to become a major bank for Non-Resident Indians (NRIs) for their banking needs and added the process is going on to restructure the international business to enable new business model.
In 2008-09, the SBI international credit portfolio grew up by 54 per cent to Rs 86,267 crore from Rs 56,196 crore in the previous year. He pointed out there is considerable credit growth in spite of the global meltdown.
Also, last year bank along with its subsidiaries and joint ventures abroad opened nine offices, as well as full-fledged retail operations in Singapore, last year.
Thursday, July 2, 2009
Wednesday, July 1, 2009
Andhra Bank launched bank’s new mascot & new corporate slogan
Andhra Bank, a state run lender has introduced a major brand-building plan by promoting a new mascot and also a new corporate slogan with an aim of growing its business to Rs 1.50 lakh crore by September 2010 through its expansion across the country.
Andhra Bank Chairman and Managing Director R S Reddy today launched bank’s new mascot Dolle, a "friendly, intelligent and responsive" dolphin. And 'For all your needs' – with a graphic ‘enter’ key the bank’s new corporate slogan.
At the launch Reddy told reporters, "Our new mascot and the corporate slogan symbolize the value system that Andhra Bank has been known for. We will now spread our wings across the country by opening more branches over the next one year and take the business to Rs 1.50 lakh crore from the present Rs one lakh crore."
Andhra Bank, is having 1,438 branches in India, obtains about 40 per cent of its business from outside Andhra Pradesh. He said, "We already have obtained permission from the Reserve Bank of India for opening 121 new branches and will seek permission for opening 100 more," and added that they have been able to raise Rs 520 crore last week heading towards improvement in capital adequacy to about 13.5 per cent.
Andhra Bank Chairman and Managing Director R S Reddy today launched bank’s new mascot Dolle, a "friendly, intelligent and responsive" dolphin. And 'For all your needs' – with a graphic ‘enter’ key the bank’s new corporate slogan.
At the launch Reddy told reporters, "Our new mascot and the corporate slogan symbolize the value system that Andhra Bank has been known for. We will now spread our wings across the country by opening more branches over the next one year and take the business to Rs 1.50 lakh crore from the present Rs one lakh crore."
Andhra Bank, is having 1,438 branches in India, obtains about 40 per cent of its business from outside Andhra Pradesh. He said, "We already have obtained permission from the Reserve Bank of India for opening 121 new branches and will seek permission for opening 100 more," and added that they have been able to raise Rs 520 crore last week heading towards improvement in capital adequacy to about 13.5 per cent.
Monday, June 22, 2009
Banks take long duration for reimbursement in case of ATMs fault
In case you insert your debit card in an ATM for cash withdrawal but the cash is not dispensed yet the transaction gets debited in your bank account then as per Reserve Bank of India norms, banks should refund such wrongly debited amount within 12 working days. However in reality the process generally takes longer durations if the card has been used at other bank ATM.
A senior banking ombudsman official informed, "Sticking to the 12-day deadline become difficult because there are two banks involved here. Reimbursement may take up to three weeks.'' Most important the official said the amount does not get automatically reaccredited; the customer has to first log a complaint.
Since April the customers has been allowed to use the automated teller machines freely to draw cash from all ATMs across banks without paying any extra charge. After this two problems have risen. One is delay in the reimbursement of wrongly debited amounts and the second is rejection of a card at the ATM of another bank because its software fails to recognize the `foreign' card.
However a senior Mumbai banker, assured, "Initial glitches would be smoothened out once banks change their software (to meet the new requirements)”.
Sanjeev Talwar, banking advisor at the Delhi-headquartered National Consumer Helpline pointed out the problem was severe during April when customers were allowed to use all ATMs across the banks free of charge. Whereas the senior bankers in Mumbai and Delhi informed now the problems aren't as severe anymore, though they have not been eliminated.
In February a consumer-friendly circular on reimbursement from RBI, which pre-dates freeing of ATMs in April, says, "...we have been receiving a number of complaints from bank customers, regarding debit of accounts even though the ATMs have not disbursed cash for various reasons. More importantly, banks take considerable time in reimbursing the amounts involved in such failed transactions to card holders. In many cases, the time taken is as much as 50 days.''
The ombudsman official stated to meet RBI-mandated deadline, "We have asked nodal officers of each bank to work in close cooperation with others to allow for quicker reimbursement.''
Bankers informed faulty ATM transactions can involve connectivity problems. The ombudsman official explained, "When a card is physically present in the ATM, the churn of printing roll is generated, and when there is any transaction, it hits a switch centre and reconciliation of the transaction takes place. If these two proofs are produced, it shows the transaction actually took place.'' But in cases where money is not dispensed, the official added, "We rely on the cash reconciliation statement. Every day or two, the cash which has been put inside the ATM is tallied with what has been actually dispensed. If cash doesn't come out, surplus money would be found in the statement. We take a decision (in a dispute) based on these three things.''
The customers who have to wait longer than 12 days are directed to speak to RBI's customer care department with their complaint.
A senior banking ombudsman official informed, "Sticking to the 12-day deadline become difficult because there are two banks involved here. Reimbursement may take up to three weeks.'' Most important the official said the amount does not get automatically reaccredited; the customer has to first log a complaint.
Since April the customers has been allowed to use the automated teller machines freely to draw cash from all ATMs across banks without paying any extra charge. After this two problems have risen. One is delay in the reimbursement of wrongly debited amounts and the second is rejection of a card at the ATM of another bank because its software fails to recognize the `foreign' card.
However a senior Mumbai banker, assured, "Initial glitches would be smoothened out once banks change their software (to meet the new requirements)”.
Sanjeev Talwar, banking advisor at the Delhi-headquartered National Consumer Helpline pointed out the problem was severe during April when customers were allowed to use all ATMs across the banks free of charge. Whereas the senior bankers in Mumbai and Delhi informed now the problems aren't as severe anymore, though they have not been eliminated.
In February a consumer-friendly circular on reimbursement from RBI, which pre-dates freeing of ATMs in April, says, "...we have been receiving a number of complaints from bank customers, regarding debit of accounts even though the ATMs have not disbursed cash for various reasons. More importantly, banks take considerable time in reimbursing the amounts involved in such failed transactions to card holders. In many cases, the time taken is as much as 50 days.''
The ombudsman official stated to meet RBI-mandated deadline, "We have asked nodal officers of each bank to work in close cooperation with others to allow for quicker reimbursement.''
Bankers informed faulty ATM transactions can involve connectivity problems. The ombudsman official explained, "When a card is physically present in the ATM, the churn of printing roll is generated, and when there is any transaction, it hits a switch centre and reconciliation of the transaction takes place. If these two proofs are produced, it shows the transaction actually took place.'' But in cases where money is not dispensed, the official added, "We rely on the cash reconciliation statement. Every day or two, the cash which has been put inside the ATM is tallied with what has been actually dispensed. If cash doesn't come out, surplus money would be found in the statement. We take a decision (in a dispute) based on these three things.''
The customers who have to wait longer than 12 days are directed to speak to RBI's customer care department with their complaint.
Wednesday, June 17, 2009
OBC, Canara to reduce lending rates shortly
Soon Bangalore-based Canara Bank and Delhi-based Oriental Bank of Commerce (OBC) will be reducing lending rates. By the end of this month Canara Bank will be reviewing the present lending rates and OBC will be deciding early next month.
While speaking on the sidelines of a news conference in the New Delhi Canara Bank chairman and managing director A C Mahajan told reporters, “Interest rates are moving southwards and likely to come down further. Our asset liability committee (Alco) is meeting at the end of this month and we would be taking a call on further rate cut thereafter”.
Alok Mishra, chairman and managing director of OBC agreed with Mahajan’s views. Mishra stated, “Rates are definitely moving downwards. Our Alco would be meeting in the first week of next month and rates may soften after the meeting”.
But both A C Mahajan and Alok Mishra remained reserved regarding the possible quantum of revision in the interest rates, while admitting that cost of funds is still a cause of concern. Mahajan added, “Cost of funds are still high and it remains the biggest hurdle in the way of reducing interest rates”.
Currently the prime lending rates (PLR) of both Canara Bank and OBC are 12 per cent.
In the recent meeting with chiefs of all the public sector banks finance minister Pranab Mukerjee had suggested them to avail the benefit of various monetary measures taken by RBI and should pass them on to customers.
After the meeting with the finance minister, most banks have given indications that they will think of revising interest rates. Banks have also indicated that to reduce the lending rates, deposits rates have to be reduced.
Meanwhile the State Bank of India, the country’s largest commercial bank, has already reduced deposits rates by 25 basis points on all maturities.
On the other hand Canara Bank is ready to acquire a bank in India in order to increase its size and presence. Mahajan stated, “Consolidation is the only way to grow and we are willing to takeover (a bank). If there is any good opportunity, we would grab it with both hands”.
The statement supposes to be significant as finance minister Pranab Mukherjee in a meeting with senior bankers had said, that the government would support consolidation provided the banks have to take the initiative. Apart from SBI, no major bank has shown any liking for consolidation in the banking industry.
Last year State Bank of Saurashtra had merged with SBI and a process for the remaining six subsidiaries would be finalized by July-end.
The newly-appointed deputy governor of RBI, K C Chakrabarty, had firmly pointed out that time is not over for consolidation in the banking industry. “Banks can grow on their own for the time being and the right time for moving towards consolidation would come only after 3-4 years.”
While speaking on the sidelines of a news conference in the New Delhi Canara Bank chairman and managing director A C Mahajan told reporters, “Interest rates are moving southwards and likely to come down further. Our asset liability committee (Alco) is meeting at the end of this month and we would be taking a call on further rate cut thereafter”.
Alok Mishra, chairman and managing director of OBC agreed with Mahajan’s views. Mishra stated, “Rates are definitely moving downwards. Our Alco would be meeting in the first week of next month and rates may soften after the meeting”.
But both A C Mahajan and Alok Mishra remained reserved regarding the possible quantum of revision in the interest rates, while admitting that cost of funds is still a cause of concern. Mahajan added, “Cost of funds are still high and it remains the biggest hurdle in the way of reducing interest rates”.
Currently the prime lending rates (PLR) of both Canara Bank and OBC are 12 per cent.
In the recent meeting with chiefs of all the public sector banks finance minister Pranab Mukerjee had suggested them to avail the benefit of various monetary measures taken by RBI and should pass them on to customers.
After the meeting with the finance minister, most banks have given indications that they will think of revising interest rates. Banks have also indicated that to reduce the lending rates, deposits rates have to be reduced.
Meanwhile the State Bank of India, the country’s largest commercial bank, has already reduced deposits rates by 25 basis points on all maturities.
On the other hand Canara Bank is ready to acquire a bank in India in order to increase its size and presence. Mahajan stated, “Consolidation is the only way to grow and we are willing to takeover (a bank). If there is any good opportunity, we would grab it with both hands”.
The statement supposes to be significant as finance minister Pranab Mukherjee in a meeting with senior bankers had said, that the government would support consolidation provided the banks have to take the initiative. Apart from SBI, no major bank has shown any liking for consolidation in the banking industry.
Last year State Bank of Saurashtra had merged with SBI and a process for the remaining six subsidiaries would be finalized by July-end.
The newly-appointed deputy governor of RBI, K C Chakrabarty, had firmly pointed out that time is not over for consolidation in the banking industry. “Banks can grow on their own for the time being and the right time for moving towards consolidation would come only after 3-4 years.”
Banks likely to reduce rates over the next few weeks
After the finance minister Pranab Mukherjee direction to the banks to cut interest rates they are likely to cut interest rates by 100-150 basis points over the next few weeks to boost credit growth. However the finance minister had already directed public sector banks to cut lending rates further. Although the Reserve Bank of India had reduced its benchmark rates, Mukherjee said this is not being reflected in loans.
While according to most bankers, including RBI deputy governor K.C. Chakrabarty, there will be no drastic reduction in interest rates in the long term, although in the short term they will remain benevolent.
Alok K. Misra, chairman and managing director of the Oriental Bank of Commerce told The Telegraph, “Interest rates are doing a downward spiral. We will take a call on the quantum of rate cut by the end of June when the asset liability committee meets.”
Most of the PSU banks are lending at 11.75-12.25 per cent but Delhi-based Punjab National Bank is lending at the lowest rate of 11 per cent, while the private banks such as ICICI Bank, HDFC Bank and Axis Bank is lending at 12.75-16 per cent.
Rana Kapoor, managing director of Yes Bank informed that his bank will reduce its benchmark lending rate by 50 basis points from July. Largely banks might reduce rates by 1-1.5 per cent over the next few weeks.
Last week after the meeting of bank chiefs and finance minister the State Bank of India said there is scope for a 25-basis point cut.
According to senior bankers the softening of interest rates can help in reviving the drooping demand in credit growth.
Canara Bank will be announcing a cut in its prime lending rates by June end has reworked its loan growth target to around 21-22 per cent during the current fiscal as compared with 29 per cent in the last fiscal. Canara Bank chairman A.C. Mahajan pointed out, “While there is sufficient liquidity in the system, the credit off take has not been very high”.
While according to most bankers, including RBI deputy governor K.C. Chakrabarty, there will be no drastic reduction in interest rates in the long term, although in the short term they will remain benevolent.
Alok K. Misra, chairman and managing director of the Oriental Bank of Commerce told The Telegraph, “Interest rates are doing a downward spiral. We will take a call on the quantum of rate cut by the end of June when the asset liability committee meets.”
Most of the PSU banks are lending at 11.75-12.25 per cent but Delhi-based Punjab National Bank is lending at the lowest rate of 11 per cent, while the private banks such as ICICI Bank, HDFC Bank and Axis Bank is lending at 12.75-16 per cent.
Rana Kapoor, managing director of Yes Bank informed that his bank will reduce its benchmark lending rate by 50 basis points from July. Largely banks might reduce rates by 1-1.5 per cent over the next few weeks.
Last week after the meeting of bank chiefs and finance minister the State Bank of India said there is scope for a 25-basis point cut.
According to senior bankers the softening of interest rates can help in reviving the drooping demand in credit growth.
Canara Bank will be announcing a cut in its prime lending rates by June end has reworked its loan growth target to around 21-22 per cent during the current fiscal as compared with 29 per cent in the last fiscal. Canara Bank chairman A.C. Mahajan pointed out, “While there is sufficient liquidity in the system, the credit off take has not been very high”.
Wednesday, May 13, 2009
Banks increasing their portfolios to achieve big
The micro-finance sector is growing fast in the country therefore leading private and foreign banks are ready to make big investments to increase their MFI operations in the country.
The banks besides offering funds to the famished microfinance institutions (MFIs), they are also launching schemes and providing training in management skills to support the growth of tiny units.
Foreign lender Royal Bank of Scotland (RBS) has made a plan to increase its microfinance portfolio. At present it amounts to Rs 300 crore and it is has planned to increase it to Rs 450 crore by the end of this fiscal.
At present the UK-based lender is giving direct funds to around 30 MFIs across the country and has tied-up with another 41 MFI units in order to provide them training to build up the administrative skills and strong business model.
RBS Vice-President Moumita Sen Sarma informed, "Despite the financial crisis, MFIs have been the least affected as they have managed to maintain the quality of the business. RBS will continue to expand its MFI portfolio and expects to grow the size to Rs 450 crore by the fiscal-end".
She stated that the lender did not expect any deterioration in the asset quality of MFI units in 2009-10.
ICICI Bank, India's largest private-sector lender, is also planning to considerably increase its operations in the sector in the current fiscal. According to the data available over the last one year, ICICI Bank has almost doubled its MFI portfolio to Rs 2,600 crore and is expecting the growth by at least 20 per cent in 2009-10.
ICICI Bank General Manager (Agri, Rural and Micro Banking) Kumar Ashish pointed out, "We could nearly double our MFI portfolio over the last year. We have been working closely with 30 top MFIs to finance their projects and look forward for more such tie-ups in the future."
Ashish added the bank is also providing training to various other MFIs through its sister organization ICICI Foundation.
He further added bank will take precaution while lending in view of the downturn and related risks in the economy but it has no plans to cut down on its MFI portfolio.
HSBC another foreign banking major also has plans to increase its MFI portfolio. The lender is currently having tie-ups with 21 MFIs across the country.
HSBC Group General Manager and CEO Naina Lal Kidwai informed, "We are shortly launching a project in rural Maharashtra with a leading MFI... HSBC assists the MFIs to build up a strong business model in a number ways".
The banks besides offering funds to the famished microfinance institutions (MFIs), they are also launching schemes and providing training in management skills to support the growth of tiny units.
Foreign lender Royal Bank of Scotland (RBS) has made a plan to increase its microfinance portfolio. At present it amounts to Rs 300 crore and it is has planned to increase it to Rs 450 crore by the end of this fiscal.
At present the UK-based lender is giving direct funds to around 30 MFIs across the country and has tied-up with another 41 MFI units in order to provide them training to build up the administrative skills and strong business model.
RBS Vice-President Moumita Sen Sarma informed, "Despite the financial crisis, MFIs have been the least affected as they have managed to maintain the quality of the business. RBS will continue to expand its MFI portfolio and expects to grow the size to Rs 450 crore by the fiscal-end".
She stated that the lender did not expect any deterioration in the asset quality of MFI units in 2009-10.
ICICI Bank, India's largest private-sector lender, is also planning to considerably increase its operations in the sector in the current fiscal. According to the data available over the last one year, ICICI Bank has almost doubled its MFI portfolio to Rs 2,600 crore and is expecting the growth by at least 20 per cent in 2009-10.
ICICI Bank General Manager (Agri, Rural and Micro Banking) Kumar Ashish pointed out, "We could nearly double our MFI portfolio over the last year. We have been working closely with 30 top MFIs to finance their projects and look forward for more such tie-ups in the future."
Ashish added the bank is also providing training to various other MFIs through its sister organization ICICI Foundation.
He further added bank will take precaution while lending in view of the downturn and related risks in the economy but it has no plans to cut down on its MFI portfolio.
HSBC another foreign banking major also has plans to increase its MFI portfolio. The lender is currently having tie-ups with 21 MFIs across the country.
HSBC Group General Manager and CEO Naina Lal Kidwai informed, "We are shortly launching a project in rural Maharashtra with a leading MFI... HSBC assists the MFIs to build up a strong business model in a number ways".
StanChart launched pre-paid card ‘SmartTravel FX card’
Standard Chartered Bank has launched a gold pre-paid travel card ‘SmartTravel FX card’. The card has been loaded with a unique feature; using card the payments can be made in three international currencies – US dollar, Euro and Sterling Pound.
In a release issued by the bank stated there is no limit on pre-loaded amount but should be within prescribed limits of the Reserve Bank for international travel.
Moreover the transactions done by using this card will be treated as local transactions as the billing will be done in the base currency therefore it will not incur additional cross-currency charges levied on all international and credit cards.
Standard Chartered’s General Manager, Consumer Transaction Banking, Sai Narain, stated, "the new SmartTravel FX card combines extraordinary convenience with safety. The currencies in which the card is denominated are universally accepted, which makes the card valid across most countries Indians travel to."
In a release issued by the bank stated there is no limit on pre-loaded amount but should be within prescribed limits of the Reserve Bank for international travel.
Moreover the transactions done by using this card will be treated as local transactions as the billing will be done in the base currency therefore it will not incur additional cross-currency charges levied on all international and credit cards.
Standard Chartered’s General Manager, Consumer Transaction Banking, Sai Narain, stated, "the new SmartTravel FX card combines extraordinary convenience with safety. The currencies in which the card is denominated are universally accepted, which makes the card valid across most countries Indians travel to."
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