Tuesday, July 31, 2012

HOME LOANS - INTEREST RATES

Interest Rate For Home Loan (House Building Loan)
All Rate are floating only

(Base Rate= 10.00% p.a.)


Loan Amount                   Linkage with Base Rate over    Effective Rate
                                        the tenor of the loan

Upto Rs. 30.00 lacs         0.75% above Base Rate           10.75% p.a.*

Above Rs. 30.00 lacs      1.00% above Base Rate           11.00% p.a.*
and upto Rs. 75.00 lacs

Above Rs. 75.00 lacs      1.25% above Base Rate           11.25% p.a.*

No fixed rate option in any limit bracket.


* A concession of 0.25% in card interest rate over the tenor of Home Loan is available under ongoing special Home Loan campaign upto 30.09.2012.

revised interest rates for Domestic Term Deposits : 1st July 2012

The revised interest rates for Domestic Term Deposits

‘Below Rupees One Crore’ effective from the 1st July 2012

would be as under:



Tenor
Below Rs.15 Lakhs
Rs.15 lakhs to less than Rs. 1 Cr
Existing Rates
w.e.f. 08.06.2012
Revised rates
w.e.f.
01.07.2012
Existing Rates w.e.f. 08.06.2012
 
Unchanged
7 days to 90 days
7.00
7.00
8.00
8.00
91 days to 179 days
7.00
7.00
8.00
8.00
180 days
7.00
7.00
8.00
8.00
181 days to 240 days
7.25
7.25
8.00
8.00
241 days to less than 1 year
7.50
7.50
8.00
8.00
1 year to less than 2 years
9.00
9.00
9.00
9.00
2 years to less than 3 years
9.00
9.00
9.00
9.00
3 years to less than 5 years
8.75
9.00
9.00
9.00
5 years and up to 10 years
8.75
8.75
9.00
9.00

Monday, July 30, 2012

State Bank of India's asset quality improving: Chairman


Mumbai, July 27 (Reuters) - State Bank of India's asset quality is improving compared to last year, Chairman Pratip Chaudhuri said on the sidelines of a news conference after announcing its $1.25 billion bond issue. He did not give any further details citing a silent period ahead of the earnings. India's biggest lender will post April-June quarterly results on Aug. 8, Chaudhuri added.
The comments came after SBI shares slumped as much as 3.8 percent on Friday as a rise in non-performing assets at Punjab National Bank and Union Bank sparked concerns about asset quality in the government-run banking sector.

SBI Chief Pratip Chaudhuri says repo rate cut won’t be sufficient


Mumbai, July 27:  A cut in the cash reserve ratio (CRR) could serve as a mood elevator for the markets, according to the State Bank of India Chairman, Mr Pratip Chaudhuri. CRR, currently at 4.75 per cent, is the slice of deposits that banks have to maintain with the Reserve Bank of India (RBI). “Perhaps there should be a 50 basis points CRR cut (to 4.25 per cent). I don’t know what kind of liquidity signals are being looked at.
“I do not agree with this that the total borrowing under the LAF (liquidity adjustment facility) is a ‘measure of the street’. The ‘measure of the street’ is at what price banks are issuing certificates of deposits (CDs),” said Mr Chaudhuri at a press meet to announce the conclusion of the bank’s $1.25-billion five-year overseas bond offering. LAF is a facility extended by the RBI to banks to avail themselves of liquidity in case they face deficit or park funds with the RBI in case they have surplus funds on an overnight basis against the collateral of government securities.
Mr Chaudhuri said that if banks are continuing to issue CDs at 9 per cent and 9.2 per cent, it obviously indicates that the liquidity situation is not comfortable.

‘Strong case for rate cut’
“Last time they (the RBI) skipped CRR cut. So, there is a strong case for it now. Globally, the monetary authorities have taken upon themselves the task of rejuvenating the economy. One thing that they can contribute is by moderating the interest rates,” reasoned the SBI chief.
The interest rate differential between Indian and overseas markets opens up carry trade. “Rupee is a good currency for deposits but not-so-good currency for bonds. We think there is case for bringing down the CRR and that will have a cooling effect on interest rates, especially for customers,” said Mr Chaudhuri.
In case of a repo rate cut, the benefits (for banks) are little. If there is no benefit, then banks cannot pass on any interest rate cut, he explained.

Disadvantage India
“Interest rate acts as a signal. It is a necessary but not a sufficient condition (for growth). It is a mood elevator. If interest rate comes down, it will trigger enthusiasm (among various participants in the economy). To some extent, most markets are a function of sentiments. Market sentiment will turn positive if there is a reduction in interest rates,” said Mr Chaudhuri.
Pointing out that Indian companies were at a disadvantage vis-à-vis their foreign competitors, the SBI chief said if the promoter of a power plant buys capital equipment from an Indian manufacturer, then he has to take rupee loan, which will come at 10-11 per cent. If the promoter were to go for foreign gear, say, Chinese equipment, which is very common, the interest cost is 4 per cent.

Low-cost Deposits up
According to Mr Chaudhuri, SBI’s retail deposit growth has been quiet good in the first four months of the current financial year. Low-cost deposits in current accounts and savings bank accounts increased by about Rs 30,000 crore in those first four months. However, loan growth has been muted.

NRI Car Loan Interest Rate


State Bank of India: Interest Rates on 1st April, 2012
For the purpose of computing perquisite valuation

Interest rates as on 1st April, 2012 on various loans in Personal Segment advances are as under

 NRI Car Loan

For all tenures
1.25% above Base Rate i.e. 11.25% p.a.

OnlineSBI on Mobile

OnlineSBI on Mobile is internet banking service optimized for mobile browsers. You can connect at https://m.onlinesbi.com. Currently this service is available only for Retail Internet Banking customers.

At present, these services are available
  • Instant Term Deposits – e-TDR/e-STDR
  • View Account Balance 
  • View Mini Statement
  • Fund Transfer to own accounts
Other services would be introduced gradually.

Existing users of www.onlinesbi.com can use this service with their existing username and password. "OnlineSBI on Mobile" is accessible from any mobile phone having internet connectivity.

Sunday, July 29, 2012

New Facilities in Corporate Internet Banking

What's New
  • SMS Based OTP is now mandatory at the time of login for Corporate Administrator and Regulator. Register your mobile numbers if not already done
  • Reset of Transaction password of Corporate User should be generated by Administrator and form C7b should be submitted to branch for approval
  • Supplier payments in Saral can now be scheduled at your convenience
  • Funds transfer group wise limits have been enhanced for Saral.Click here
  • Link to print all the account balances at once is now available in the Corporate User landing page (Accounts Summary page)
  • Input of OTP at the time of transaction will now be done using the keyboard only. Onscreen Keypad will no longer appear
  • Supplier Payment and Bill Payment Modules enabled for Saral Corporates
  • Saral Corporate Users can now apply for IPOs through the ASBA link
  • Now e-cheques approved by approver will display the name of Approver
For login to your corporate internet bankig click here

Saturday, July 28, 2012

SBI expects 50 bps cut in CRR, no change in lending rate

India's largest lender State Bank today said it expects Reserve Bank to lower the mandatory cash reserve requirement of banks or CRR by 50 basis points on July 31 but sees no reduction in the key short-term lending rate.

 "We expect a 0.5 percentage point reduction in CRR (the percentage of deposits that banks park with the RBI) to ease money supply. Also, this will have better effect on monetary transmission than a reduction in the short-term lending rate," SBI Chairman Pratip Chaudhuri told reporters after announcing the successful conclusion of a USD 1.25 billion overseas bond sale.

 RBI will announce its first quarter monetary policy review on Tuesday in the backdrop of slowing growth, poor investment sentiment and persistently high inflation.

Yesterday, SBI had closed a mid-term note or bond issue at a coupon of 4.12%, making it the largest and cheapest bond sale by a domestic lender till date. Chaudhuri said the asset quality of the Government-run
bank has improving compared to last year. He did not give any further details citing a silent period ahead of the earnings.

 The bank will announce its April-June quarterly earnings on August 8. The comments came after SBI shares slumped as much as 3.8% today as a rise in non-performing assets at Punjab National Bank and Union Bank of India sparked concerns about asset quality in the Government-run lenders.

 Explaining the rationale behind why a CRR cut is better at this juncture, Chaudhuri said this will help bank's liquidity, which in turn, will help them lower the lending rates, thus helping the monetary transmission better.

On the contrary, he said a marginal reduction in the repo will not help banks to cut lending rates.The senior unsecured dollar bond issue, due in August 2017, was carried through the London branch of SBI. The issue was rated Baa2 by Moody's and BBB- by S&P.

Deficit monsoon to impact loan re-payment: SBI chief

Amid concerns over rising bad loans, SBI today sounded a note of caution saying that failure of monsoon will not only affect the economy but also banks as re-paying capacity of borrowers will come under pressure.

In view of the deficit monsoon rain, Prime Minister Manmohan Singh has already directed all departments and ministries to coordinate with states to meet any eventuality by monitoring the situation on a weekly basis.

"If the monsoon fail it will (have) a cascading impact on credit growth as well as the economy which in turn will impact the re-paying capacity of borrowers," SBI chairman Pratip Chaudhuri told reporters in Mumbai.

He further said the State Bank of India (SBI) will assess the impact of monsoon after August 10 when the situation will become more clear.

Speaking on the impact of monsoon failure, PNB Chairman and Managing Director K R Kamath said in New Delhi that RBI has clearly defined norms for banks for agricultural credit in drought affected areas.

"If any of the area is affected by drought, there is very clearly defined scheme for restructuring of accounts of that particular area," he said while announcing the first quarter result of the bank.

Kamath does not expect the impact of deficient rains on NPAs related to farm credit to be much as there would re-structuring.

Gross non-performing assets (NPA) of PNB has risen to 3.34% at the end of three-month period ended June 30, 2012 as against 2% during the same period of last fiscal.

NPAs in public sector banks stood at about 3.3% of the assets in 2011-12 against 2.3% a year ago.

Meanwhile, IMD said it expects monsoon deficiency to narrow down in the coming days with improvement in rains.

Monsoon rains have been deficient by about 22% so far this year across the country with a worrisome situation in Karnataka, Maharashtra, Rajasthan and Gujarat.

The government has also set up an Empowered Group of Ministers (EGoM) headed by Agriculture Minister Sharad Pawar to review the monsoon situation.

HDFC Bank overtakes SBI as India's most valued bank


Private sector lender HDFC Bank today surpassed SBI as the country's most valued bank with a total market valuation of about 1,37,500 crore.
SBI shares were seen trading under pressure with a fall of nearly 2% this afternoon, despite an overall uptrend in the market, while HDFC Bank shares gained by more than 3%.
The market benchmark Sensex was trading more than 200 points higher on broad-based buying among blue chips.
As a result, HDFC Bank's market capitalisation rose to Rs 1,37,500 crore, as against SBI's 1,32,700 crore, as per the BSE data.
At close yesterday, SBI was the country's most valued bank with a total market cap of Rs 135,360 crore, followed by HDFC Bank (Rs 133,375 crore), ICICI Bank (Rs 1,04,558 crore), Axis Bank (Rs 41,657 crore) and Kotak Mahindra Bank (Rs 40,178 crore).
At 1415 hrs today, HDFC Bank shares were trading 3.1% higher at Rs 584 after scaling an intra-day high of Rs 588.
On the other hand, SBI was down nearly 2% at Rs 1,977.40 at the BSE, while ICICI Bank was up 2.5%, Axis Bank was up 2.1% and Kotak Mahindra was trading 1.6% down.
In terms of market cap, HDFC Bank and SBI were followed by ICICI Bank (Rs 1,07,221 crore), Axis Bank (Rs 42,541 crore) and Kotak Mahindra Bank (Rs 39,547 crore) at 1420 hours.

Apply Online for Clerical Recruitmet Exam

Recruitment to Clerical Cadre in Associate Banks of SBI (State Bank of India)

Click here to Apply Online

Friday, July 27, 2012

Banks may find it tough to meet indirect agriculture lending target

Mumbai, July 26:  Achieving the indirect agriculture lending target under the revised Reserve Bank of India guidelines on priority sector lending may prove to be an uphill task for banks.

The reason: loans for food and agro processing units will now be classified under the Micro and Small Enterprises (MSEs) category, provided the units satisfy the investments criteria prescribed for the latter, say bankers.

A manufacturing unit is classified as a micro enterprise if investment in plant and machinery does not exceed Rs 25 lakh. If investment in plant and machinery is more than Rs 25 lakh but less than Rs 5 crore then a unit is classified as a small enterprise.

The annual targets for both direct and indirect agricultural lending are set at 13.5 per cent and 4.5 per cent of (adjusted) net bank credit (obtaining as on March-end of the preceding year), respectively. Bankers fear that the re-classification of loans to food and agro processing units as loans...

Coming clean on NPAs

A Reserve Bank of India (RBI)-appointed panel has rightly recommended that all bank loans being subject to ‘restructuring’ be classified as non-performing assets (NPA). Currently, such loans are treated as ‘standard’, even when the terms of their restructuring involve banks taking a hit, whether through reduction in interest rates, elongation of repayment period, part waiver of principal or interest, and so on. Whichever way one sees it, restructuring entails borrowers being granted concessions that the banks would not otherwise even consider. Moreover, not treating these loans for what they are — in practical terms, their performance is nothing but ‘sub-standard’ — makes no sense when the amounts involved are not small either. Between March 2009 and March 2011, the gross NPAs of Indian banks rose from around Rs 68,000 crore to Rs 94,000 crore. But restructured advances, technically regarded as ‘standard’, soared even more from just over Rs 60,000 crore...

Foreign investors lap up SBI dollar bonds

Mumbai, July 26: The country’s largest lender, State Bank of India (SBI), has raised $1.25 billion from investors abroad at 4.125 per cent, for five years. This was the second largest single tranche bond sale that garnered overwhelming response, despite recent concerns expressed by international credit rating agencies on the country’s economy.

SBI’s dollar-denominated bonds were subscribed 5.4 times. They got $6.8 billion from around 350 accounts spread over Asian, European and US investors. The lead managers to the issue were Deutsche Bank, Citibank, Barclays, Bank of America Merrill Lynch, JP Morgan and UBS.

In 2010, SBI had raised $1 billion for five years at 4.5 per cent.

“This issuance has certainly provided a window of opportunity to other high-quality Indian issuers to tap the international bond markets,” said Rajiv Nayar, head of capital markets origination at Citi India. He said the SBI notes were priced at the lowest ever coupon...

SBI raises $1.25 b from overseas bond sale

New Delhi, July 26:  State Bank of India raised $1.25 billion from an overseas-dollar-denominated bond sale on Thursday. This is the largest single-tranche offering by a public sector bank from India.

The bank’s London branch issued 4.125 per cent five-year-notes due in July 2017 at 375 basis points, spread over five-year US Treasuries. The notes offer the lowest ever coupon achieved for an Indian issuer in the US dollar bond market in the five-year tenure, said a banker close to the development. The notes, a debt instrument, are rated Baa2 by Moody’s and BBB- by Standard & Poor’s.

This is also the first public sector bank US dollar bond issuance out of India since May 2011. The last dollar-denominated bond offering by an Indian company was in February when Axis Bank raised $500 million (in the form of five-year medium-term notes) at 440 basis points spread over five-year Treasuries. SBI had hired six global giants — Citigroup, Barclays, Bank of...

Download term deposits interest calculator

download link of term deposits interest calculator:
link 1
link 2

State Bank of India (SBI) Fixed Deposits, Time Deposits or Term Deposits Maturity Interest Calculator. The Calculator calculates the Interest or Maturity Amount you will get after maturity of Fixed Deposits or Term Deposits. State Bank of India (SBI) Fixed Deposits, Time Deposits or Term Deposits Maturity Interest Calculator: is an investment planning tool which allows any Fixed Deposit investor to know the effective annual interest, total returns and total interest or Maturity (Future) Value on the Investment to the individual or business enterprise.

Term deposit is a deposit held at a financial institution that has a fixed term.This is an account which allows to deposit money for a fixed time period. The advantages of term deposits compared to usual savings are the higher interest rates as they have a fixed term. Fixed Depositor Term Deposit is a fixed amount of money deposited at a financial institution, for a fixed time period and for a fixed rate of interest throughout the period. The rate of investment on it is decided by the financial institution, and it is usually calculated based on the invested amount and the tenure of the fixed deposit. Once the term is over, a fixed deposit matures and the maturity amount is available for withdrawal.

The general thumb rule about fixed deposits is that the longer the money is invested, the better the returns. Before investing for any fixed or term deposit, the basic calculations to select the the perfect plan is wise. Therefore when it comes to fixed deposits interest calculation, this fixed deposit or term deposits interest calculator assists you to get the calculations done and you get the maturity value as well as interest receivable by yourself. Great Tool or Calculator for calculate term deposits interest & maturity value. This calculator is designed by admin of www.mysbi.tk for the use of people or customer of any Banks or who wants to invest in FD or TD.

Thursday, July 26, 2012

State Bank of Mysore Q1 net dips 38%


Bangalore, July 25:  State Bank of Mysore posted 38 per cent lower net profit for the April-June quarter at Rs 39.79 crore (against Rs 64.28 crore a year ago), mainly due to higher provisioning.
 
Total income rose 33 per cent over last year to Rs 1,566.7 crore (Rs 1,176.26 crore). Operating profit was Rs 298.57 crore (Rs 255 crore). Interest income grew 22 per cent to Rs 1435 crore.
 
In a stock exchange filing, the bank said it had made an NPA provisioning of Rs 196.9 crore during the quarter, which was well above the Rs 100 crore it provided for a year ago. Gross NPA was at 4.67 per cent (Rs 2.83 per cent) and net NPA 2.43 per cent (1.42 per cent).

State Bank to hire 7,740 clerks for Associate Banks


Hyderabad, July 25: State Bank will be recruiting 7,740 clerks to work in its associate banks. According to a notification hosted on SBI's portal, the online registration of applications will begin on July 30 and will continue till August 13, 2012. The written examination is likely to be conducted in two phases on October 7 and 14, 2012.
A clerk in SBI would earn approximately Rs 14,200 a month. A first division in intermediate or a degree from a recognised university is the minimum educational qualification required to apply. Mr C S  Vepa, Director of National School of Banking, a coaching institute for bank-jobs, says that the notification should bring cheer to job-aspirants as the number of vacancies was higher than last year.
Last year, the banking behemoth hired a little over 6,000 clerks. Further, SBI is the only bank now which conducts its own state-wide competitive examination for recruitment. Other public sector banks are using scores obtained by candidates in a common written examination being conducted by the Institute for Banking Personnel Selection for short-listing candidates for interview.

SBI's $1 billion international bond issue opens


Mumbai, July 25: State Bank of India on Wednesday launched an international five-year bond sale programme to raise at least USD one billion. When contacted, SBI Managing Director and Group Executive for International Banking Hemant Contractor said that the bank on Wednesday launched its benchmark bond sale through book-building route.
"The issue is open and the details like pricing and the quantum of funds being mobilised will be known only by late night," Contractor said. A benchmark bond issue typically aims to raise more than USD 500 million. According to sources, the bond issue is of over USD 1 billion size with a five-year tenure.
The issue's investment bankers include Bank of America Merrill Lynch, Barclays Capital, Citigroup, Deutsche Bank, JP Morgan and UBS. SBI launched a marketing campaign for its benchmark bond issue on July 16 in Hong Kong, Singapore, London, New York, Los Angeles, Boston, Frankfurt and Zurich.
The bank has a board mandate to raise USD 10 billion from overseas markets over the next few years, and it has a headroom to raise nearly USD 7 billion more since it has raised USD 4 billion. The senior notes offering, which has been rated as 'BBB-' by Standard & Poor's, is a dollar-denominated issue. Giving the 'BBB-' rating on the SBI bond sale, S&P had earlier said this reflects the long-term counterparty credit rating on the bank. "The proposed notes will constitute direct, unconditional, unsecured, and un-subordinated obligations of SBI," S&P said.
SBI's move to raise overseas funds comes in the wake of the recent RBI steps to stem the falling rupee value and measures to encourage foreign debt inflows. Earlier, ICICI Bank and India Overseas Bank had initiated their respective dollar bond plans and had also hired investment bankers, but the offerings were delayed amid tough market conditions.
While Indian Overseas Bank was aiming to raise about USD 500 million, ICICI Bank was eyeing USD one billion through a bond sale. A slew of sovereign downgrades in the past few months have made it difficult for domestic companies to raise overseas debt. So far this year, a sum of USD 4 billion has been raised by two corporates -- USD 3.5 billion by Reliance Industries in two instalments in February and May, and USD 500 million by Axis Bank.
The fourth issue which is underway now, is again from RIL, to raise another USD 1.5 billion, for which market making meetings are beginning tomorrow in Singapore. However, domestic companies had raised over USD 8 billion through dollar bonds in 2011.