In response to the hike in the repo rate by the Reserve Bank of India last week, Vijaya Bank today raised the interest rates on deposits offered with ‘one to less than two years’ maturity by 30 basis points from 8.50% to 8.80%. The new interest rates would be effective from Wednesday.

The bank has said in a statement that the revision is with a view to narrowing liquidity gaps under a specific maturity slab. "Our...

The Housing and Development Finance Corporation Limited (HDFC) today inaugurated a branch in the south Kashmir district of Islamabad. This branch is the first in the district and sixth in J&K and is a part of the growing network of HDFC branches across the Valley.

Speaking on the occasion of the inaugural function of the new branch, S Ramakrishnan, branch banking head, North and East, HDFC Bank, said that after J&K Bank, the HDFC Bank...

The Bank of Baroda is increasing its international presence. The bank which already enjoys a prominence in 25 countries with 71 offices is planning to expand its overseas presence by opening up 10 more offices and branches during the current fiscal year. The bank is targeting the Gulf countries, Australia and China for expanding its overseas network.

Of the 71 branches, 46 are its own branches, 21 are the branches of its eight subsidiaries and four...

With the RBI increasing the repo rate, it is known that the interest rates to be charged by banks will increase. The debate has now shifted to the timing of that hike by the banks. This hike of the repo rate is supposed to affect all type of loans, from personal to home to even car loans. This is why the whole country’s attention has been fixed on the decisions to be taken by...

In a considerable shift in their strategy, the ICICI Bank Ltd has decided to go slow on its retail assets expansion after three years of accelerated growth in the segment.

As a result of this new development, consumer loans, mortgages and auto loans, which jointly accounted for about 69% of ICICI’s total loan book two years ago, have now come down to 58%, and are set to decrease even further.

The shift stems from the...

In a great new development, it was learnt that as many as 12,51,000 students have benefited from the UPA's educational loan through banks. The banks have disbursed Rs 12,000 crore since the scheme was launched, Union Finance Minister P Chidambaram said.

"Students could apply online for the educational loan and although this facility was currently available with only eight banks, all banks would introduce the system by the end of this year," he said.

Impressed...

Taking a step in the right direction, the Union Finance minister P Chidamabaram has asked banks to expedite implementation of the farm loan waiver package and complete the scheme by June 30. This step is important at the moment as the plantation of Kharif crop is very near, and Chidambaram hopes to help most of the farmers clear their defaulters’ tag before that.

Speaking at a meeting with bankers at the Reserve Bank of India...

Aiming to reduce the level of bad loans to bare minimum, the Delhi-based Punjab & Sind Bank has put its big-ticket bad loans on block. According to the tender issued by the bank, 73 loan accounts with outstanding dues of over Rs 3,800 crore are to be auctioned.

The bank has opened its books for due diligence while the bidding is scheduled on June 16.

However, this is not the first time that the P&S Bank has...

The Reserve Bank of India, in a new directive to all banks, has allowed the banks to lend more money to state-owned oil companies. This new development comes in the light of many companies finding themselves cash-strapped because of surging crude prices and their inability to pass on the burden to consumers.

The banks, as directed by the RBI, can lend up to 25% of their capital funds to oil companies as against 20% earlier. This...

Six years after the Reseve Bank of India’s initiative to set up a forum for banks- Corporate Debt Restructuring (CDR), the forum has survived a shut down scare. The forum was set up by banks to resolve bad loans. At a meeting of CEOs of large commercial banks held early this week, bank CEOs decided to shoot down the proposal to wind up the Corporate Debt Restructuring (CDR) forum. Recently, the CDR cell had sought...

HDFC Bank has decided to increase its fleet of ATMs in the country. The bank has placed an order for 300 additional automated teller machines with ATM manufacturer NCR. The bank has also renewed its contract with NCR to manage 2,000 ATMs.

This new development corresponds to a change in the consumer behaviour and an increase in the usage of ATMs all over the country. Commenting on the deal, Rahul Bhagat, business head-direct banking channels, HDFC...

There is a new entrant in the asset finance industry, Magma Shrachi Finance. The listed asset finance company has very recently launched its personal loan portfolio. The company plans to offer big-ticket personal loans to customers charging them interest rates between 13 and 22 percent.

Sanjay Chamria, vice-chairman and managing director of MSFL (Magma Shrachi Finance Limited), speaking on the new development, said that the entire sales, credit and recovery operation would be manned by an...

Buckling under pressure from all sides, the country’s largest lender, The State Bank of India (SBI), has withdrawn the circular which aimed at suspending loans to farmers for the purchase of farming equipments. The SBI circular had created quite a furor as it was directed at a very wrong time.

Speaking on the whole controversy, the finance minister, Mr P Chidambaram said that it was "poorly worded and misunderstood", and indicated that he had asked for...

Reacting very sharply to the State Bank of India's (SBI) decision to put on hold loans for the purchase of tractors and other farm equipments, The Bharatiya Janata Party (BJP) slammed the banks’ decision, saying it once again "exposed" the "anti-farmer face" of the Congress-led UPA government and demanded its immediate roll back.

"The Congress-led UPA Government's anti-poor and anti-farmer face has once again come to the fore.... This decision will have an adverse impact on...

In what could prove detrimental to the agriculture industry, the country's largest state-owned bank, State Bank of India, has decided to stop giving loans for the purchase of tractors and other farm equipments. This could prove a big blow to the government which is going all out to project a "pro-farmer" image, promising a Rs 60,000 crore waiver on farm loans and talking big on boosting agricultural credit.

The bank sent a circular to all its...

In a revolutionary move by the HRD Ministry, Arjun Singh, has stated that, the government of India would provide sovereign guarantee to students to help them avail loans for higher and professional studies. This statement comes in light of the forthcoming elections and has been used to highlight the problems associated with the present cumbersome and tedious processes involved in the sanction of educational loans. The insistence of banks on collateral security (security pledged for...

Last month, Finance Minister P Chidambaram presented a written document to the Rajya Sabha members regarding their queries about the application of the Model Education Loan Scheme. He stated that under the scheme, the banks are directed to clear the loan applications within a time span of 15 to 30 days.

He acknowledged that in most of the cases the PSU banks were following the time limit, if the details furnished in the applications were found...

The Reserve Bank of India has directed the banks to extend the time limit on loan repayment, for borrowers owning poultry units, by the end of April.

The decision was taken to provide some relief to the poultry industry, which has been badly hit by bird flu in some states. Along with West Bengal, which is, one of the worst affected, preventive measures are also being taken in neighbouring states of Bihar, Jharkand, Assam and Orissa.

RBI...

To encourage and help the women from the economically weaker section (EWS) of the society, the Chandigarh Child and Women Development Corporation has increased the upper limit of the loan amount from Rs 10,000 to Rs 40,000.The nominal interest on the loan ranges from 4 per cent to 6 per cent per annum.

According to the UT Home Secretary, Krishna Mohan the decision taken by the Corporation would not only encourage more number of women to...

ICICI recently issued this email warning message as its constant endeavour to prevent  phishing and Internet related attacks. These kinds of emails have become common from all banks offering online access and transaction capabilities to its account and credit card holders.

Dear Customer,

At ICICI Bank, we are committed to making your banking with us a wonderful and worry-free experience. Here are a few simple tips that you should follow to protect your money.

1. Never access the...