The shine of India is dimming. With high inflation, plunging stocks and a weakening rupee, the Indian growth story appears to have gone a little out of track.

Banks confirm the bad news. The first quarter bank loan numbers surely point towards a slowdown in the economy. Bank loans do continue to grow, but at a very slow pace. Even though speaking in absolute terms, loans, in the first quarter of (Q1) 2008-09, have done...

Following the increase in the interest rates, the country’s largest lender, State Bank of India decided to hike the processing fee on loans. State Bank of India (SBI), as part of its strategy to enhance the non-interest income, has decided to increase the processing fee on loans. This new fee hike would hold for both corporate and retail loans.

Talking about this hike, Mr Ashok Mukand, Deputy Managing Director, State Bank of India said...

Following the 24th June decision by the Reserve Bank of India, the country’s largest bank, State Bank of India, has decided to increase its floating home loan rate by 50 basis points across all tenors. This new rate has been into effect from 27 June, the day on which the bank had increased its PLR by 0.5 per cent.

SBI said in a release that for home loans of up to Rs. 30 lakh with...

After the hike in the BPLR would have hit the home loan customers, Allahabad bank is trying to heal their wounds by providing term loan facilities for housing loan customers of their bank. For this purpose, Allahabad Bank has tied-up with Tata AIG Life for providing term loan facilities for housing loan customers of the bank on a credit basis.

The Kolkata based bank has tied up with Life Insurance Corporation of India (LIC) for...

The foundation day of the State Bank of India came with a pinch of salt for its customers as the bank’s chairman hinted at a home loan rate hike in a week. The bank was celebrating its foundation day on 1st July, when it launched 101 branches and also became the first public sector bank to utilize mobile banking services.

Speaking on this occasion, State Bank of India (SBI) chairman, OP Bhatt, said that the...

Following the lead of various public and private sector lenders, including the highest public sector lender, SBI, the Canara Bank, has decided to hike its benchmark prime lending rate (BPLR) by 50 basis points. However, Canara Bank has done this with a difference. Announcing it on Friday, the bank has decided to leave home loans and auto loans out of the purview of the hike in the interest rates.

Talking on behalf of the...

LIC Housing Finance Ltd is entering new sectors of business. It has decided to start a subsidiary for the purpose of selling financial products. These would include home loans, mutual funds and insurance policies. The new company would be called LIC Financial Services Ltd (LIC HFL) and is expected to start operations in the next two to three months.

Mr R.R. Nair, newly appointed Director and Chief Executive, LIC Housing Finance Ltd (LIC HFL), said,...

Defending the RBI’s move, the government said that the decisions to hike key rates on Tuesday would not affect investment, as is being alleged. The government said that it would not hurt growth and investment demand. However, they have found few takers for this proposition. Most analysts and bankers are of the opposite view.

Trying to ease the growing tension, the finance ministry, said in a statement, "The objective of the RBI is to moderate...

If there is one sector which has been hit most severely by the inflation, then that is the small savings schemes. However, the RBI’s move of a double hike, which as most experts believe, would lead to an increase in the deposit rate of banks, would worsen their problems. Investments in small savings schemes are already at a very low level. Not only have they slowed down, but now as bank deposit rates will rise,...

As was expected, the RBI’s double hike, in CRR and repo rate, is going to percolate down to the consumers. However, this might happen sooner than people would anticipate it. As soon as Wednesday, bankers were meeting to decide on their banks’ stand on this new RBI move. On Tuesday night, the central bank, had hiked the repo rate and the CRR by 50 basis points. This will have an effect on every type of...

The after effects of the double digit inflation that India was dreading are becoming worse. If hike in lending rates wasn’t enough bad news, there is a feeling that home loan rates might also increase. With the current status of inflation, having crossed the 11% mark, it is possible that the commercial banks might increase the home loan interest rates.

Two years ago, Navin Jaiswal, a senior executive in a private company, had taken a...

In a shocking incident that has gripped West Bengal people and police alike, it was learnt that a 45-year-old city-based entrepreneur has duped 6 banks of over 5 crore rupees. Indrajit Chatterjee, who is a citizen of West Bengal, is on the run after the police realized that he was responsible for allegedly duping six banks of more than Rs 5 crore in the last two years.

The search is on for Chatterjee, who introduces...

Hyderabad police have come across a trio who use their intelligence to cheat banks. The police have nabbed a software engineer, who is the brain behind the whole cheating process, while a search is on for his two accomplices. The three of them have already cheated banks to the tune of Rs 28 lakh by submitting fraudulent documents. The software engineer, Bandi Durga Prasad was working in a firm at Panjagutta in Hyderabad. He joined...

In news that should come as a respite to customers, banks have started increasing their deposit rates to cope with inflation. This new move follows the steps taken by several banks in increasing their lending rates. This newest development will definitely bring some cheer for depositors — particularly for the retired persons and those who mainly depend on interest income.

The reason that the banks have increased their deposit rates is because of the high rate...

In a move that would make it easier for urban cooperative banks to extend housing loans, the central bank of the country, Reserve Bank of India, relaxed the risk provisioning norm for purchase of residential properties up to Rs 30 lakh.

This notification issued by the central bank is in pursuance of the annual credit policy announcement made by the Reserve Bank Governor Y V Reddy on April 29.

This step also follows a similar step taken...

Following the rise in repo rate by the RBI last week, banks have begun offering better rates to bulk depositors. However, at the same time, banks are hesitant to pay a higher rate of interest on retail deposits. The interest rates being offered on the certificate of deposits (CD) have gone up in the past 3-4 days.

Banking sources say that against 8.75-9% offered earlier, most banks are paying in the range of 9.25-9.50% for...

Keeping pace with the advent of new technology in the lives of people, banks are making many changes in the way people bank. Online banking and Mobile banking are finally gaining momentum, and an increasing number of people are gaining from the experience.

Syndicate Bank, a public sector bank headquartered in Manipal, has launched a new online service to enable customers apply for loans online. The filled-in application in the prescribed format, once posted...

Indian Bank has decided to set up 100 new branches in the current financial year. Out of this, the Chennai-based public sector lender has decided to dedicate 15 to micro lending.

Confirming the news, Indian Bank Chairman and Managing Director MS Sundara Rajan told reporters on the sidelines of a seminar organised by Skoch, "We have sought approvals from the Reserve Bank of India for the new branches."

Rajan also said that the bank would be emphasizing...

In the face of surging inflation, the Reserve Bank of India hiked its short-term lending rate to banks by 0.25 per cent to 8 per cent. This development may have an effect on consumer, home, auto and other loans, making them costlier.

This increase comes in the wake of inflation reaching a 45-month high of 8.24 per cent. The central bank said the decision was taken to contain inflationary expectations as the rate of rise in...

Reacting to certain reports saying that other banks might follow State Bank of India’s lead by increasing their interest rates, ICICI Bank managing director & CEO, KV Kamath, indicated there is no pressure on banks to raise interest rates, given the prevailing comfortable inter-bank liquidity. This follows a move by State Bank of India (SBI) announcing its plans to raise interest rates for medium- and longer-term deposits.

"The systemic liquidity is comfortable now in the...