1. The Finance Ministry will soon initiate steps to catalogue the activities, both legislative and administrative, that need to be undertaken to make Mumbai an International Financial Centre (IFC).The recommendations in the report of the Government-appointed High Powered Expert Committee (HPEC) on ‘Making Mumbai an International Financial Centre’ would form the basis for such an exercise.
2. Canara Bank has launched two new schemes for high net worth individuals. A bank release said that the schemes branded as SB Gold (savings bank account) and Can-Premium (current Account) come with value added services that include free debit/credit cards, Internet/telebanking facilities, issue of demand drafts at concessional charges and concessional electronics funds transfer facilities and name-printed cheque books. To avail themselves of the services, customers would nee d to hold an average monthly balance of Rs one lakh in their operative accounts.
3. Union Bank of India has announced cuts in rates for new home and car loans only for August and September in Kerala to coincide with the Onam festival season. The interest rate on home loans has been reduced by one per cent. The prevailing rates are 9.25 per cent for loans up to five years; 9.50 per cent for 10 years; and 9.75 per cent for above 10 years.The bank has also reduced interest rate on car loans by half percent during the festival season. The offer is applicable only in the 147 branches across the State of Kerala.
4. Central Bank of India made its debut on the Bombay Stock Exchange at Rs 130.10, at a premium of 27.54 per cent, against the offer price of Rs 102. It touched a high of Rs 133.25 and a low of Rs 114 on the BSE before closing at Rs 115.4. Total volumes were 2,43,85,904.
5. Led by roads and ports, power and telecom sectors, credit disbursement by banks to the infrastructure sector has grown in the last two years at 43 per cent and 36 per cent, respectively, according to industry chamber Assocham. The chamber conducted a study covering financial years 2000 to 2007 on sectors such as iron and steel, construction, petroleum, power, telecommunication, roads and ports.
6. Bank of India is looking at revamping its credit card business and is considering the options of having it either in-house or floating a subsidiary or roping in another bank to enhance its business from this segment.
The bank’s credit card base currently is about 7 lakhs. The bank has appointed KPMG as the consultant to conduct a study on the same.
The bank’s credit card base currently is about 7 lakhs. The bank has appointed KPMG as the consultant to conduct a study on the same.
7. ICICI Bank has signed an agreement with Export-Import Bank of Korea for a line of credit of $200 million. ICICI Bank would use the funds to meet the foreign currency requirements of corporates having business connections with Korean companies. These corporates could be Indian firms or those from neighbouring countries. This is the first time that Korea Exim Bank has extended such a line of credit to any bank. This two-step loan is not specifically tied to any sector and can be used across any sector. Sectors that are likely to benefit from this line of credit include consumer durables, automobile, power and shipping.
8. The Indian Institute of Banking and Finance (IIBF) has launched Diploma in Banking and Finance which is open to all graduates in distant mode.
Till now, the content of the course is being extended to the members of the institute (employees of the banks) as JAIIB. In view of the needs of the industry, it is now extending the programme as DBF to graduates in any discipline. The institute has tied up with Manipal University for exam delivery and organising virtual lessons. In addition, its own faculty will also conduct live classes via Internet. The total fee payable is Rs 6,500 (Rs 5,000 without access to virtual classes).
Till now, the content of the course is being extended to the members of the institute (employees of the banks) as JAIIB. In view of the needs of the industry, it is now extending the programme as DBF to graduates in any discipline. The institute has tied up with Manipal University for exam delivery and organising virtual lessons. In addition, its own faculty will also conduct live classes via Internet. The total fee payable is Rs 6,500 (Rs 5,000 without access to virtual classes).
9. The Lok Sabha on Monday passed a Bill to replace the Ordinance promulgated on June 21 to facilitate the Centre’s buyout of the Reserve Bank of India’s shareholding in SBI.On June 29, the Centre acquired 59.73 per cent stake of RBI against total payment of Rs 35,531.33 crore drawn from the Consolidated Fund of India.
10. SBI has chalked out an innovative strategy to widen its network and reach out to the remotest villages of India. It has decided to tie up with post offices for this purpose. SBI is tying up with post offices to give credit to remotest villages of India. With over 9,000 branches, SBI has the largest bank branch network in the country. SBI has already launched pilot projects in Maharashtra in association with postal department.
11. Tamilnad Mercantile Bank (TMB) has sanctioned loans to the tune of Rs 10.28 crore to 661 self-help groups, under a specially arranged priority sector loan sanction camps through all its 189 branches, on the eve of Independence Day.
