SBI firm about keeping teaser loans

State Bank of India made it clear that it is not going to step down from the teaser rate home loans scheme.

In teaser loans scheme, initially the borrower pays EMI at very low interest rate that increases eventually after a few years.

The head of the largest lender of the country State Bank of India, Mr Om Prakash Bhatt said "Every quarter we look at the data. It is data-based. If it's good, then I would extend it. The NPAs on my loans are the lowest and I also have the collateral of the customer's house."

Mr Bhatt believes that the teaser loan scheme has primarily benefited the common middle class families of the country. He said "About 2.92 lakh people have got loans. Where is the tease in the product? There is no risk and there is no opacity. There is no dilution of loan appraisal norms or documentation. Every Indian is eligible."

10 days vigilance leave for SBI employees

Some of the employees of State Bank of India might find it as very refreshing news but for some it is going to be as bad as a bad dream. The State Bank of India has instructed all the employees of the bank to go for a 10 day compulsive leave during a year that would also be known as preventive vigilance leave, a very common trend followed by MNCs.

During a study it was found that a lot of the employees that have established a very good reputation for their regularity and sincerity for work were found to be indulged in some kind of fraud. Such employees tend to use their good reputation and good relationship with the customers to commit a well planned fraud.

The employees that do not utilize the leaves earned by them are probable suspects as they want to keep their wrongdoings a secret and in due course of time such employees converts the fraud money into real money by corrupting the record.

The State Bank of India took this step in order to strengthen their internal processes and to keep check on scams.Some of the State Bank employees might find it as very refreshing news but for some it is going to be as bad as a bad dream. The State Bank of India has instructed all the employees of the bank to go for a 10 day compulsive leave during a year that would also be known as preventive vigilance leave, a very common trend followed by MNC Banks.

During a study it was found that a lot of the employees that have established a very good reputation for their regularity and sincerity for work were found to be indulged in some kind of fraud. Such employees tend to use their good reputation and good relationship with the customers to commit a well planned fraud.

The employees that do not utilize the leaves earned by them are probable suspects as they want to keep their wrongdoings a secret and in due course of time such employees converts the fraud money into real money by corrupting the record.

The State Bank of India took this step in order to strengthen their internal processes and to keep check on scams.

“Bank on Bike”: another creative move from SBI

State Bank of India has come up with another creative move to make the Financial Inclusion Plan a success . The bank has launched a new project known as “ Bank on Bike” at Cheriyal in Medak on pilot basis for a period of one month.

Through this service the bank plans to benefit the customers in the unbanked areas of the district. If the project proves to be a success then the bank has planned to expand this service further to 400 villages by March this year.

For the purpose the bank has appointed Business Correspondents, these correspondents would carry laptops and a data card to access the SBI site. It is based on biometric system to avoid any kind of fraud and due to this, even illiterate people will be able to access their bank account safely.

According to the official this project aims at providing the banking facilities to the people that are in unbanked areas with less cost and within short time span.

SBI working on next overseas venture

In a bid to expand globally State Bank of India has announced that it is in final stage of dealings to open a bank office in Doha. State bank of India is the largest bank in India and is ranked 8^th in Asia.

A senior official informed that "The talks and procedures for setting up of a wholesale banking unit in Doha are in the final stages,”

Opening a branch in Doha is very critical step to tap business opportunities in the gulf region. The bank further plans to expand the network in the country as well as in the Gulf region.

The bank officials believes strongly that the country has a lot of potential and the bank expects that the Doha branch will start registering profits by the end of the first year of operations.

The bank is presently ranked 62^nd globally. The overseas profit earned by the bank is around 16 percent of the total business by the bank. The bank aims to increase the overseas business share in the total profit to 25 percent.

The services would include collecting large commercial deposits and making big loans to high net worth corporates and individuals, offering bank guarantees, counter-guarantees, Lines of Credit among others. The bank also plans to offer investment and retail banking services to tap into the presence of a large number of Indian and Asian business entities and expatriates in Qatar.

The bank presently have 152 branches in 32 countries and plans to increase the total number of overseas offices of the banks to 1,000 in next couple of years.