State Bank of Patiala has also extended its teaser rate scheme of 8% on Home Loan and has re-introduced Ezee Car Loan Scheme till 30th June, 2010. Under its home loan scheme, SBOP is offering fixed rate of interest of 8% for the 1st year and 9% for 2nd and 3yrd year and after that the prevailing rate linked with BPLR/ Base Rate will be applicable. The maximum tenure of the loan is 25 years.
Bank has also re-introduced its Ezee Car Loan Scheme which will be effective from 7th May, 2010. Under this scheme bank is offering fixed rate of 8% for the 1 st year and 10% for 2 nd and 3 rd year and thereafter prevailing rate linked with BPLR/ Base Rate will be applicable. The maximum tenure is 7 years.
Bank said it will not charge repayment penalty if borrower offers to pre-pay the loan at the time of reset in both house and car loans.
Thursday, May 20, 2010
Wednesday, May 19, 2010
SBI installs ‘Tiny Branch’ at its hilly region branch office
SBI has installed ‘Tiny Branch’, at its hilly region branch of Seiling in Mizoram. Earlier bank was finding difficulty in tapping customers in the naxal-hit Dantewada or the hilly region of Seiling in Mizoram, thus it was looking for a solution which is low-cost, safe and easy to operate. When Anurag Gupta, founder and director of the Zero Mass Foundation (ZMF) approached SBI with his idea of the ‘Tiny Branch’, the bank accepted it.
The Tiny Branch costs Rs 15,000 per installation and comprises of a mobile phone and a fingerprint scanner. A Nokia phone has been designed specially for ZMF to identify RFID tags; it also has an inbuilt application that helps in new account opening and to carry out other banking transactions.
The phone will be able to hold data of up to 50,000 customers for a period of five years. The phone will also take pictures of the customer for making the account card and records his name in his own voice as a voice tag, to be used later for verification purposes.
Along with written details, during enrolment, five fingers are scanned and the fingerprints recorded. The equipment can record details in 11 languages including Arabic.
Once bank completes it procedure in all villages, ZMF will step in, looking for help from the village elders or the Panchayat to appoint Customer Service Points (CSPs). CSPs equipped with mobile phone and fingerprint scanner, will be responsible for acquiring customers and also undertake banking transactions in the village.
Gupta explained, “We mostly recruit women, preferably with matriculate level of education.” There are 24,000 CSPs that the assist ZMF to carry out the bank’s business out of which 98% are women. It is essential that local branch should be near for the Tiny Branch to deliver cash, form submissions/collections and issuing of new account cards.
The devices work on a battery that can be charged using a solar panel so there is no problem in the installation of the devices. Similarly there is no need of internet connectivity for enrolling customers or carrying out transactions. However, transactions have to be backed up on an hourly basis through GPRS. Sometimes there can be connectivity problem?
“CSPs sometimes tie the mobile phone to a bamboo stick and hoist it on top of their house to transmit data,” says Gupta about the ingenious ways used in difficult conditions.
Gupta has been always innovative, from being an architect to creating smart systems like mchek — a mobile payment platform to the GO Mumbai smart card. He said, “The Tiny Branch is one of our most important creations and I had to let go of others in order to concentrate on this.”
Although Rs 15,000 might be low-cost, Gupta is far from being satisfied. He has brought down the cost of the system, he also hopes to install 250,000 of these Tiny Branch’s across Indian villages.
The Tiny Branch costs Rs 15,000 per installation and comprises of a mobile phone and a fingerprint scanner. A Nokia phone has been designed specially for ZMF to identify RFID tags; it also has an inbuilt application that helps in new account opening and to carry out other banking transactions.
The phone will be able to hold data of up to 50,000 customers for a period of five years. The phone will also take pictures of the customer for making the account card and records his name in his own voice as a voice tag, to be used later for verification purposes.
Along with written details, during enrolment, five fingers are scanned and the fingerprints recorded. The equipment can record details in 11 languages including Arabic.
Once bank completes it procedure in all villages, ZMF will step in, looking for help from the village elders or the Panchayat to appoint Customer Service Points (CSPs). CSPs equipped with mobile phone and fingerprint scanner, will be responsible for acquiring customers and also undertake banking transactions in the village.
Gupta explained, “We mostly recruit women, preferably with matriculate level of education.” There are 24,000 CSPs that the assist ZMF to carry out the bank’s business out of which 98% are women. It is essential that local branch should be near for the Tiny Branch to deliver cash, form submissions/collections and issuing of new account cards.
The devices work on a battery that can be charged using a solar panel so there is no problem in the installation of the devices. Similarly there is no need of internet connectivity for enrolling customers or carrying out transactions. However, transactions have to be backed up on an hourly basis through GPRS. Sometimes there can be connectivity problem?
“CSPs sometimes tie the mobile phone to a bamboo stick and hoist it on top of their house to transmit data,” says Gupta about the ingenious ways used in difficult conditions.
Gupta has been always innovative, from being an architect to creating smart systems like mchek — a mobile payment platform to the GO Mumbai smart card. He said, “The Tiny Branch is one of our most important creations and I had to let go of others in order to concentrate on this.”
Although Rs 15,000 might be low-cost, Gupta is far from being satisfied. He has brought down the cost of the system, he also hopes to install 250,000 of these Tiny Branch’s across Indian villages.
Tuesday, May 18, 2010
SBI takes over the possession of the mortgaged property on loan defaulter
The Administrative Office of State Bank of India (SBI), the country’s largest lender located in Civil Lines, Ludhiana has taken over the possession of the property mortgaged in account of Sandali Darwaja Resorts and Restaurants Pvt Ltd. (erstwhile NIF Pipes) having its office at 853, Industrial Area -A, Ludhiana) through Bhagat Singh residing at 510-R, Model Town, Ludhiana.
SBI had given loan against the property which was mortgaged with it through Bhagat Singh. But the borrower defaulted in the repayment of loan amount which amounted to Rs 1,41,32,073 as on November 30, 2009.
The bank before taking this extreme step served 60-day notice to the borrower but the party did not came forward. Bank carried out the process with the assistance of GATS Financial Reconstructions Limited. GATS Financial Reconstructors Limited while revealing this in press release said, “The party had availed of certain credit facilities from the bank and had defaulted in the repayment of the bank dues to the tune of Rs 1,41,32,073 as on November 30, 2009.
The bank had served a 60-day notice to the borrower but the party never came forward. Hence the bank took the possession of the property mortgaged in the aforesaid account.”
SBI had given loan against the property which was mortgaged with it through Bhagat Singh. But the borrower defaulted in the repayment of loan amount which amounted to Rs 1,41,32,073 as on November 30, 2009.
The bank before taking this extreme step served 60-day notice to the borrower but the party did not came forward. Bank carried out the process with the assistance of GATS Financial Reconstructions Limited. GATS Financial Reconstructors Limited while revealing this in press release said, “The party had availed of certain credit facilities from the bank and had defaulted in the repayment of the bank dues to the tune of Rs 1,41,32,073 as on November 30, 2009.
The bank had served a 60-day notice to the borrower but the party never came forward. Hence the bank took the possession of the property mortgaged in the aforesaid account.”
Tuesday, May 11, 2010
SBI becomes the largest lender of the country
State Bank of India has declared itself as the largest lender of the country. The bank has done the total business of over Rs 13, 78,000 crore for the financial year 2009. Up till now no other Indian bank has been able to even nearer this figure in terms of total business achieved by SBI during this period of time.
SBI is followed by Punjab National Bank (PNB). PNB has become the second largest bank of the country by replacing the largest private sector bank ICICI bank. PNB has done the total business of Rs 4, 35,000 crore for the fiscal in terms of total business with total deposits and loans.
On the other hand ICICI Bank has done a total business of Rs 3, 83,223 crore for the same fiscal year.
ICICI Bank total deposits stood at Rs 2, 02,017 crore while total advances were Rs 1, 81,206 crore. However PNB has managed to register a 20% increase in total business during the current fiscal.
The other public sector lenders Bank of Baroda and Canara Bank had also surpassed the Rs 4 lakh crore figures in total business.
SBI is followed by Punjab National Bank (PNB). PNB has become the second largest bank of the country by replacing the largest private sector bank ICICI bank. PNB has done the total business of Rs 4, 35,000 crore for the fiscal in terms of total business with total deposits and loans.
On the other hand ICICI Bank has done a total business of Rs 3, 83,223 crore for the same fiscal year.
ICICI Bank total deposits stood at Rs 2, 02,017 crore while total advances were Rs 1, 81,206 crore. However PNB has managed to register a 20% increase in total business during the current fiscal.
The other public sector lenders Bank of Baroda and Canara Bank had also surpassed the Rs 4 lakh crore figures in total business.
Wednesday, February 17, 2010
SBI “teaser rate” on home loans will continue till March end
State Bank of India (SBI), India’s largest public sector bank, was the first bank to introduce the “teaser rates” on home loans. The bank has made it clear that it will continue with its limited period offer on home loans, popularly known as ‘teaser rates’ till the end of the current financial year, although there have been increasing differences with RBI on the issue.
SBI chairman OP Bhatt speaking on the sidelines of a function in Delhi on Tuesday, said,
“They’ve not objected. SBI would not do anything which RBI objects to”.
Over the past one month the central bank had raised the issue of teaser loans – the special rate home loans.
Meanwhile on Monday RBI deputy governor Usha Thorat had made it clear that banks must have taken whatever message was given by the RBI. Ms Thorat had last month said: “Teaser rates are increasingly being offered, which is a cause for concern.”
Another RBI deputy governor KC Chakrabarty had also expressed his disapproval by stating that the benefits of the scheme should also be extended for the existing customers.
The central bank had also pointed out that banks should provide the information about the implications of such rates to their borrowers and must appraise repaying capacity of the borrowers when the rates go up. Under teaser loans the loans step-up where interest rate is a low fixed rate in the initial years but is benchmarked to market rates after 2-3 years with a minimum floor.
In the next one month the teaser rate scheme of almost all banks is going to expire therefore the banks will be reviewing their limited period offers. Meanwhile Axis Bank has withdrawn the similar scheme after RBI has shown its concern over these schemes.
Moreover RBI’s hike of cash reserve ratio (CRR), the portion of deposits that banks have to maintain with the central bank, by 75 basis points to 5.75% will force banks to withdraw these schemes. The CRR hike is likely to absorb around Rs 36,000 crore from the system.
Mr Bhatt has also indicated that lending rates might be raised from the second quarter of 2010-11. He added, “So far as bank lending rates are concerned, I do not expect rates going up before May-June.”
SBI, this fiscal has set target to achieve loan expansion at the rate of 16-18 %. Mr Bhatt said, “We are already at 17% and there is no immediate pressure on interest rates.” On the other hand according to RBI the credit expansion target will be at 16-18% for this fiscal.
However on Tuesday, SBI launched its new scheme for Naval Personnel, under which it will be offering home, auto and personal loans at 50 basis points lower than the floor rate.
SBI chairman OP Bhatt speaking on the sidelines of a function in Delhi on Tuesday, said,
“They’ve not objected. SBI would not do anything which RBI objects to”.
Over the past one month the central bank had raised the issue of teaser loans – the special rate home loans.
Meanwhile on Monday RBI deputy governor Usha Thorat had made it clear that banks must have taken whatever message was given by the RBI. Ms Thorat had last month said: “Teaser rates are increasingly being offered, which is a cause for concern.”
Another RBI deputy governor KC Chakrabarty had also expressed his disapproval by stating that the benefits of the scheme should also be extended for the existing customers.
The central bank had also pointed out that banks should provide the information about the implications of such rates to their borrowers and must appraise repaying capacity of the borrowers when the rates go up. Under teaser loans the loans step-up where interest rate is a low fixed rate in the initial years but is benchmarked to market rates after 2-3 years with a minimum floor.
In the next one month the teaser rate scheme of almost all banks is going to expire therefore the banks will be reviewing their limited period offers. Meanwhile Axis Bank has withdrawn the similar scheme after RBI has shown its concern over these schemes.
Moreover RBI’s hike of cash reserve ratio (CRR), the portion of deposits that banks have to maintain with the central bank, by 75 basis points to 5.75% will force banks to withdraw these schemes. The CRR hike is likely to absorb around Rs 36,000 crore from the system.
Mr Bhatt has also indicated that lending rates might be raised from the second quarter of 2010-11. He added, “So far as bank lending rates are concerned, I do not expect rates going up before May-June.”
SBI, this fiscal has set target to achieve loan expansion at the rate of 16-18 %. Mr Bhatt said, “We are already at 17% and there is no immediate pressure on interest rates.” On the other hand according to RBI the credit expansion target will be at 16-18% for this fiscal.
However on Tuesday, SBI launched its new scheme for Naval Personnel, under which it will be offering home, auto and personal loans at 50 basis points lower than the floor rate.
Monday, January 18, 2010
SBI Bank held adalat took up loan recovery cases
In Patna State Bank of India (SBI) organized a Bank Adalat in its Gulzarbagh branch in which around 53 cases were disposed of. The proceedings of the adalat were personally monitored by SBI AGM Anjani Kumar Sinha under the direct supervision of DGM T V S Ramana Rao. Hearing of around 53 cases related to loan recovery was taken up and were harmoniously disposed of on the spot, Sinha informed.
AGM told, the bank will take severe action against all those people who fail to repay the loan money in time. The banking institution will have to forcefully take legal action against the defaulters under the Bank Act and their mortgaged property will be attached if the defaulters did not repay the loan amount within the specific time, the AGM told and added borrowers must cooperate with the bank and try to maintain good relation with the bank.
The AGM told TOI that the bank is holding Bank Adalat at regular intervals at different places adjoining the state capital in order to help borrowers, especially defaulters, to pay their loan money at their doorsteps. In addition, bank will prefer to get into compromise with defaulters on some genuine points and help them to repay their loan easily, he said and added bank was able to recover around Rs 5 lakh at this adalat and large number of borrowers came to the adalat facing bad weather condition.
At the branch at the time of proceedings Chief Managers B P Singh, Binod Kumar, M P Singh and loan recovery in-charge Ashutosh Narain Sinha were also present.
AGM told, the bank will take severe action against all those people who fail to repay the loan money in time. The banking institution will have to forcefully take legal action against the defaulters under the Bank Act and their mortgaged property will be attached if the defaulters did not repay the loan amount within the specific time, the AGM told and added borrowers must cooperate with the bank and try to maintain good relation with the bank.
The AGM told TOI that the bank is holding Bank Adalat at regular intervals at different places adjoining the state capital in order to help borrowers, especially defaulters, to pay their loan money at their doorsteps. In addition, bank will prefer to get into compromise with defaulters on some genuine points and help them to repay their loan easily, he said and added bank was able to recover around Rs 5 lakh at this adalat and large number of borrowers came to the adalat facing bad weather condition.
At the branch at the time of proceedings Chief Managers B P Singh, Binod Kumar, M P Singh and loan recovery in-charge Ashutosh Narain Sinha were also present.
Wednesday, January 6, 2010
SBI to increase fee-based income through PoS terminals
In 2010-11 State Bank of India (SBI), country’s largest lender will be setting up about 150,000 point of sale (PoS) terminals for debit and credit card payments across India. This way bank will be able to increase its fee-based income. Country’s largest bank, SBI said in its Request for Proposal (RFP), "The present EoI (expressions of interest) is for the purchase of 135,000-150,000 POS terminals across the country during the first year of operations or 2010-11 and also for the managed services during the warranty period or the first year of deployment."
SBI in the first five years of its operations has plans to install around 600,000 PoS terminals for this last year bank floated RFP for the selection of joint venture partner for merchant acquiring business and the selection process is in the final stage. As per the report from SBI the last date for submission of bids is January 25, 2010. The bank is also thinking of acquiring the PoS terminals on an outright purchase basis. Bank is also looking at other options like leasing the terminals as the asset return or non-return and periodical rentals.
To manage the business of the merchants a wholly –owned subsidiary system will be adopted which will include acquiring bank identification numbers (BINs) from the schemes, as well as managing services for PoS terminals, among others. The managed services will include installing PoS terminals at customer location, their replacement, merchant training and maintenance, among others.
Banks’ plan of business circulation based on the new line of operation is focused on a pan-India scale, with metro, urban, semi-urban and rural centers, urban, semi-urban and rural centers, SBI said. At present the State Bank Group has installed more than 18,000 automated teller machines (ATMs) across the country and has issued over 60 million debit cards.
SBI in the first five years of its operations has plans to install around 600,000 PoS terminals for this last year bank floated RFP for the selection of joint venture partner for merchant acquiring business and the selection process is in the final stage. As per the report from SBI the last date for submission of bids is January 25, 2010. The bank is also thinking of acquiring the PoS terminals on an outright purchase basis. Bank is also looking at other options like leasing the terminals as the asset return or non-return and periodical rentals.
To manage the business of the merchants a wholly –owned subsidiary system will be adopted which will include acquiring bank identification numbers (BINs) from the schemes, as well as managing services for PoS terminals, among others. The managed services will include installing PoS terminals at customer location, their replacement, merchant training and maintenance, among others.
Banks’ plan of business circulation based on the new line of operation is focused on a pan-India scale, with metro, urban, semi-urban and rural centers, urban, semi-urban and rural centers, SBI said. At present the State Bank Group has installed more than 18,000 automated teller machines (ATMs) across the country and has issued over 60 million debit cards.
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