News

SBI Set To Publish Photographs Of Willful Defaulters

rupeetalk-news — Sat, 04 Feb 2012 07:16:47 +0000

The State Bank of India (SBI) will soon start publishing photographs and names of willful defaulters in leading publications as a last resort to encourage them towards paying their dues. As stated by a senior bank official, “The idea is to discourage the public from making default in loan repayment. We have decided to send them notices before going ahead with such measures.” According to the Reserve Bank of India’s (RBI) guidelines, a ‘willful default’ would be the person who has defaulted in meeting of payment or repayment obligations to the lender even when he/she has the capacity to honor the obligations.

Banks Not To Include Stamp Duty And Registration Fees In Home Loans, Says RBI

rupeetalk-news — Sat, 04 Feb 2012 07:15:24 +0000

The Reserve Bank of India (RBI) has told banks not to include stamp duty and registration fees in home loans. It means buyers will now have to make arrangement for money for these two heads over and above the 20 per cent of the asset value which they are already expected to shell out. In its new notification, the RBI has directed all commercial banks to stick to their value of the property alone and not to include stamp duty, registration charges and other charges while giving housing loans. The RBI said, “It has been found out that banks are adopting different practices for ascertaining the total value of the house property while offering housing loans. Some banks are including stamp duty, registration and other documentation charges in the total cost of the housing property.”

SBI May Cut Rate Of Interest To Boost Credit

rupeetalk-news — Sat, 04 Feb 2012 07:07:32 +0000

The State Bank of India (SBI) is interested in curtailing interest rates in order to boost credit expansion. As said by Mr. Diwakar Gupta, Chief Financial Officer, SBI, “We are keen towards cutting the interest.” Earlier, the Reserve Bank of India (RBI) had curtailed the Cash Reserve Ratio (CRR) to 5.5 per cent from 6 per cent. With the cut in CRR, the SBI will be able to earn up to Rs 500 crore over the year.

Housing Finance May Bring Weaker Section Under Priority Lending

rupeetalk-news — Thu, 02 Feb 2012 07:26:54 +0000

The Reserve Bank of India (RBI) is planning to categorize home finance to the weaker sections under priority lending. A committee, headed by Mr. M. V. Nair, CMD, Union Bank of India, has been set up by the RBI to review various issues pertaining to priority sector lending. As stated by Mr. H. R. Khan, Deputy Governor, RBI, “We are thinking to bring housing finance for weaker section under the head of priority sector. The committee has been established to look into it.”

HSBC And MakeMyTrip Launches Co Branded Credit Card

rupeetalk-news — Thu, 02 Feb 2012 07:25:55 +0000

The HSBC in collaboration with MakeMyTrip, leading travel portal, has declared the launch of HSBC- MakeMyTrip Credit Card, a unique offering that does not limit customers to only air travel bookings with a particular airline but also gives a gamut of travel and shopping offerings with the facility of convenience and pay backs. Available in signature and platinum variants, the HSBC- MakeMyTrip credit card offers customers a generous reward program with exciting gifts. Some of the other important features of the card are domestic air ticket vouchers or MakeMyTrip vouchers worth Rs 8,500 on registering for signature credit card, 2 domestic air ticket vouchers or MakeMyTrip vouchers worth Rs 5,500 if you will register for platinum credit card, reward points on doing purchasing at MakeMyTrip portal or shopping at selected merchants across India.

As stated by Mr. Manish Sinha, Head Consumer Assets HSBC India said, “HSBC always works towards providing dynamic product offerings and unique banking solutions to its customers. Our HSBC- MakeMyTrip Credit Card is an initiative that offers customers exciting rewards program and freedom of choice.” Further added by Mr. Rajesh Magow, Chief Financial Officer, MakeMyTrip, “Travel has emerged as one of the fastest growing sectors in India and with increasing popularity of online transactions and utility associated with plastic money, there appears to be a latent opportunity to enter into a strategic alliance with HSBC, which can be characterized as one of the major banking players in India. With HSBC- MakeMyTrip card, you will get a chance to avail of exclusive travel deals, shopping offers incentives on every transaction which you will make.”

Slow Housing Loans Pick Up Pace In Current Quarter

rupeetalk-news — Wed, 01 Feb 2012 10:08:38 +0000

The slowdown in the home loan segment is continued in the quarter ended December 2011, however, lending institutions are expecting to see revival in the demand for housing loans in the current quarter and in the quarter ending June 2012. As stated by Mr. V.K Sharma, Director & Chief Executive, LIC Housing Finance (LICHF), “The slowdown in housing loan demand is continued in December quarter, too. However, we are witnessing some signs of revival in the current quarter. Even if we will not see the full revival in this quarter, we are hoping to see it in the next quarter.”

Kotak Mahindra Bank Buys Barclays Non Performing Credit Card Portfolio

rupeetalk-news — Wed, 01 Feb 2012 10:05:48 +0000

Kotak Mahindra Bank has bought the non-performing credit card portfolio of Barclays Bank. The deal is expected to give a momentum to the sale of stressed loan market in India which has been facing a dry run following strict regulatory norms introduced in the year 2007.

The credit card portfolio acquired by Kotak is estimated to be nearly Rs 250-300 crore and it comprising nearly 2,00,000 cards.

While the deal value is not immediately known but banks in India are required to follow the guidelines of the Reserve Bank of India (RBI) on valuation of stressed asset sale.

Kotak Mahindra Opens New Branch In Kerala

rupeetalk-news — Tue, 31 Jan 2012 11:19:47 +0000

Kotak Mahindra Bank has opened its first branch in Thrissur district, Kerala. The bank has four more branches at the different locations of the state, including, Kochi, Kottayam, Thiruvananthapuram and Kozhikode.

RBI Offers More Leeway To Banks For Rupee Vostro Accounts

rupeetalk-news — Tue, 31 Jan 2012 11:19:11 +0000

The Reserve Bank of India (RBI) has dispensed with the rule under which banks were earlier required to get its approval for opening and maintaining vostro accounts by non- resident exchange houses for their every new client. Vostro can be defined as an account which is hold by one party for another. As stated in the circular issued by the RBI, “To give more operational leeway to the AD Category-I banks, it has been decided to dispense with the need of taking the prior approval of the RBI for opening and maintaining each rupee vostro accounts in India in connection with the Rupee Drawing Arrangements (RDAs).”

The central bank said that approved dealer banks will now take its permission the first time they would enter into such an arrangement with non-resident exchange houses from the gulf nations, Hong Kong, Singapore and Malaysia. “Subsequently, approved dealer banks may enter into RDAs, subject to the guidelines and inform the RBI immediately,” the apex bank said. When the total number of RDAs will reach to 20, the AD Category-I bank may cause a detailed external audit of their internal system in order to make sure that it is working effectively.

“On the basis of satisfactory report, the board of AD Category-I banks may give authorization to more such arrangements. A copy of the board note along with the board resolution in the matter may need to be file with the RBI and new arrangements have to be informed to the RBI.”

IDBI Mutual Fund’s Dynamic Bond Scheme Opens Tomorrow

rupeetalk-news — Tue, 31 Jan 2012 11:18:07 +0000

IDBI Mutual Fund’s new fund offer (NFO) IDBI Dynamic Bond Fund, that would generate income while maintaining liquidity on a minimum investment of Rs 5,000, will be open for subscription tomorrow. The scheme will make an investment in portfolio comprised of debt instruments such as government securities, PSU and corporate bonds and money market instruments. As stated by Mr. Debasish Mallick, Managing director & Chief Executive, IDBI Asset Management, “People are more considered debt to be the best option as compared to equities which is still remains unclear.” He further added, the asset allocation in the debt and money market instruments is not predetermined and it could change according to market conditions.” The open-ended debt scheme will be closed on February 14 and will come with an exit loading of 1 percent if it will be redeemed within a year.