Post the Reserve Bank of India reducing the Cash Reserve Ratio (CRR) by 50 basis points, speculations about lowering of lending rates were being made. The move from RBI is expected to ease liquidity as well the inflation in the markets.

However, the Managing Director and Chairman of Corporation Bank, Mr. Ajai Kumar has rejected the possibility of any such move.

"The cost of fund has not gone down," said Mr. Ajai Kumar.

"The previous rate hike has...

On the occasion of 9thTriennial General Council of The All India Regional Rural Bank Officers' Federation (AIRRBOF) along with All India Bank Officers' Confederation (AIBOC) has reported its oppositions over the cross merger of RRB's.

AIRRBOF stated that following the government's suggestions, sponsor banks will end up wasting their investments.The conference demanded that the government should extend the pension plans offered to the PSU's to the Regional Rural Banks (RRB's) also.

The General Secretary of AIRRBOF, Mr....

NABARD has plans to integrate 140 state and Central Co-operative banks under Core Banking Solutions (CBS). As a part of it, 4 central co-operative banks have signed a deal with leading technology provider, Wipro.

Latur, Kolhapur, Buldhana and Nagpur Central Co-operative Banks will take the services of Wipro.

In a statement NABARD said, "It is expected that the work relating transfer of data to CBS model in these banks will start very soon and all...

Leading foreign lender in the country, Citibank has indicated laying off 100 of its employees serving at various positions in India. The bank also has plans to take away 4,500 jobs worldwide.

Earlier in December 2011, the bank said that for cost reduction and considering the reducing revenues, the bank will go for job cuts.

In a statement Citi Bank said, "Citigroup continuously reviews its internal processes and organisational structure to right size the organisation for...

The Reserve Bank of India has reduced the Cash Reserve Ratio rate by 50 basis points in the monetary policy review, yesterday. The interest rates were however kept constant.

The reduction in CRR is likely to prompt the lenders to lower the deposit as well as lending rates offered by them.
The Chairman of State Bank of India, Mr. Pratip Chaudhury said, "With so many tax saving instruments offering interest rates in the 8.3-8.5 per...

To provide financial assistance to the farmers for dairy activities, State Bank of Hyderabad has signed an agreement with Tirumala Milk Products Ltd. The consortium will disburse loan for dairy purposes to the farmers recognized by the latter.

The Managing Director of State Bank of Hyderabad, Mr. M. Bhagavantha said, "This will help increase income levels of farmers and also create employment."
A subsidy of 25% will be extended on loans below 5 lakh from...

The Regional Director Andhra Pradesh, of RBI, Mr.A.Sambasiva Rao said that banks must concentrate particularly on the new generation youth. Bank must introduce banking facilities to them and enroll them as account holders.

He said that it is possible only if the banks expand their operations and fund educational activities.

The deadline for the Financial Inclusion Plan set by the Reserve Bank if India is round the corner. It will be only after the due date that...

Leading public sector lender, Indian Bank has been awarded Golden Peacock Innovative Products/Service Award for the year 2011.

The bank was awarded considering its contribution in the promotion of the Self-Help Groups (SHGs). The bank has already disbursed Rs. 1,360 crore to the SHGs in the current fiscal year. The bank stands out in the context from other lenders.

New scheme has been launched by Muthoot Precious Metals Corporation (MPMC) for the purchase of Gold coins and bars. The facility has been christened as Muthoot Kanaka Vrishty Scheme.

To avail this scheme customer will have to buy at least 10 gram gold. The benefit for the customer is that it will shield him from the fluctuating gold rates.
Customer is required to make a minimum monthly payment of Rs. 1,000 for tenure which can...

Leading public sector lender, Indian Overseas Bank is exploring the opportunities in Africa, Australia and New Zealand. To play it safe the bank has decided to take services of Deloitte, a leading consulting firm.

The firm will analyze the markets in the countries and will make recommendations to the bank. The fate of foraying in the markets by the bank will depend on the outcome of the survey.

National Australia Bank Ltd. has forayed in to the country. The first branch of the bank has been opened at Mumbai. The bank intends to tap the vast growth opportunities available in the banking space in India.

The Chief Executive of bank's Asian unit, Mr. Rob Wright said, "We have had demand from our clients to do more in India."

He also said, "We are attracting some very good people who are looking for more stability for...

HDFC Bank, the second largest private sector lender in the country has come up with convincing profits for the December quarter. The banks posed a growth in profits of 31.4% as compared to the same quarter last year.

The loans book of the bank has increases by 22%. It recorded a growth of 29% in the retail loan portfolio. The bank has been introducing various attractive schemes for the customers. It has also been very...

Experts have been speculating about lowering of interest rates in the upcoming monetary policy review. A poll from Reuters has showed that RBI is unlikely to cut rates in this review. However, all the 22 economists expect such an occurrence by the end of June.

About the Cash Reserve Ratio (CRR), 7 out of 20 were in favor that it can be lowered in range of 25-50 basis points. At present it stands at 6.00%.

Recently,...

Leading public sector lender, State Bank of Hyderabad has started offering loans to the customers for buying gold. To apply for the loan, customers can visit the bank's branches.

A customer can borrow a maximum of 15 lakh for duration of 60 months.

The Managing Director of State Bank of Hyderabad, Mr. Bhagavavtha Rao said, "We are targeting a business of Rs 100 crore by the end of June this year.''

Bank of India, a leading public sector bank has invited applications for recruitments on the post of probationary officers. The bank will recruit 1,800 officers across the country.

The bank will consider the score obtained by a candidate in the Common written Exam (CWE). It has set minimum requirement as 130 marks in the exam. Apart from that a candidate also needs to have at least 60% marks in his graduation.

A candidate who has attained...

A camp was organized by the Reserve Bank of India recently, in the remote villages of Tripura state. The apex bank had been constantly emphasizing on extending the banking facilities in the remote areas of the country.

United Bank of India, NABARD and Tripura State Co-operative Bank also participated in the camp. No-frills accounts were opened and loans were also disbursed among the women Self Help Groups. The villagers were also educated about the various...

Leading Indian private sector lender, HDFC Bank has found a place in the prestigious general management magazine ‘Harvard Business Review'. The bank has been listed among 10 companies whose income has grown by 5% every year for the 10 year period.

The survey report said, "These companies have been recognised for prospering over the long-term and being more stable and innovative than their competitors."

"They (the selected companies) make small bets early and diversify their...

A survey conducted by PricewaterhouseCoopers (PwC) has shown that digital banking will soon overtake branch banking. The survey was conducted among 3,000 bank customers across nine developed and developing markets.

A lot of the customers now prefer alternate channels like internet banking and mobile banking to carry out banking transactions. The survey results show that the traffic on these channels with overrun the traffic at bank branches by 2015.

Retail and Commercial Banking partner at PwC, Stephen...

A circular has been issued from the Finance Ministry, in which banks have been asked to not to sanction term loans to Poor women-members of Self Help Groups (SHGs). However, they can avail cash credit on the savings of five years in the ratio of 1:4.

The circular said, "The present practice of giving term loans has a cost to the bank because of the high number of transactions and documentation required. This takes away...

Public sector lender, Bank of Baroda has plans to expand overseas. The bank is planning to open 13 branches outside the country in next six months.

The Chairman and Managing Director of the bank, Mr. M.D. Mallya said, "We have 87 branches now, and we plan to take the number of branches to 100 in six months."

In Malaysia, the bank is planning to form a consortium with Indian Overseas Bank and Andhra Bank for...