Tuesday, August 28, 2018

SBI branch shuts after minister tells it to ‘wind up’

Rajkot, August 28 (Express News Service): Civil Supplies and Consumers Affairs Minister Jayesh Radadiya on Monday ordered officers of State Bank of India (SBI) branch in Jetpur town of Rajkot district to shut down after telling them that they were not clearing crop insurance claim dues of farmers. After the warning from the minister, the bank remained closed to public in the evening.

Radadiya, who is a BJP MLA from Jetpur, went to the SBI branch on Junagadh Road of Jetpur Monday afternoon and demanded bank officials to pay crop insurance to farmers who were accompanying him. After the bank officials told them that the crop insurance claims were still being processed, the minister lost his cool and ordered the bank to shut down.

Aa badhu sankelo kar. Have kai kam nathi tamaru (Wind up all this. You are not required here),” Radadiya is heard in video clips of the incident that were shown on local TV news channels.

After the minister’s visit, the branch remained closed to public in the evening hours.

Radadiya who himself is chairman of Rajkot District Cooperative Bank, said that the SBI branch had failed to clear crop insurance due to farmers for the year 2016-17. “Around 150 farmers had paid their premium for insuring their groundnut crop. But the bank has not cleared their insurance claims even after 10 months. Farmers have paid premium to the bank, which in turn, is supposed to pass it on to the insurance company. Now when the insurance is due to farmers, the bank is not paying them. Either the bank or the insurance company is responsible. Being a representative of the area, it is my duty to make representation on behalf of people,” Radadiya told The Indian Express.

He said that around 150 farmers who had got their crops insured via the SBI branch on Junagadh road were waiting for around Rs 1.75 crore insurance claims. “More importantly, there is another SBI branch in Kanakiya plot area of Jetpur. Farmers who had availed of insurance and loan from that branch have got their insurance due. But the Junagadh branch has been dragging its feet,” the minister added.

Radadiya claimed that around three months ago he had called a meeting of farmers and officers of the Junagadh Road SBI branch. “At that time, the bank officers told me that they had notified the insurance company about the pending calls. When I went to the bank branch, officers gave me the same answer. This cannot go indefinitely,” Radadiya said, adding that farmers of around a dozen villages were waiting for their crop insurance claims.

Ravi Parmar, the manager of the SBI branch, said that no police complaint has been filed against the minister. “I was on leave. I’m returning to Jetpur. But no police complaint has been filed for today’s incident so far,” he said.
by The Indian Express Published on August 28, 2018

Tuesday, May 22, 2018

State Bank of India PRESS RELEASE Q418 RESULTS : net loss of Rs. 7,718 Cr during the Quarter.

Q4FY18 OVER Q4FY17
 The Bank incurred a net loss of Rs. 7,718 Cr during the Quarter.
 Bank’s net loss is attributable to:
▪ Lower Trading Income and significant MTM losses due to hardening of
bond yields
▪ Incremental Provision during the quarter for NPAs.
▪ Higher provisioning on account of Wage Revision and enhancement in
Gratuity ceiling.
 Bank has not availed the benefit of RBI dispensation with regard to amortization of
MTM losses.
 Operating Profit declined by 8.24% from Rs. 17,309 Cr in Q4FY17 to Rs. 15,883 Cr
in Q4FY18.
 Net Interest Income declined by 5.18% from Rs. 21,065 Cr in Q4FY17 to Rs. 19,974
Cr in Q4FY18, contributed mainly by reduction in MCLR & Base Rate and increase in
NPAs.
 Interest Expenses on Deposits was down by 6.28% YoY from Rs. 35,431 Cr in
Q4FY17 to Rs. 33,206 Cr in Q4FY18 despite a growth in Deposits by 4.68% YoY.
 Non-Interest Income improved by 2.23% from Rs. 12,222 Cr in Q4FY17 to
Rs. 12,495 Cr in Q4FY18, driven mainly by higher fee income and recovery in written
off accounts.
 Fee Income is up from Rs. 7,434 Cr in Q4FY17 to Rs. 8,430 Cr in Q4FY18, a YoY
growth of 13.40% with significant contribution from Cross Sell income which registered
a growth of 65.83% during the period.
 Recovery in Written-Off Accounts registered a robust growth of 21.18%.
 Increase in Staff Expenses was contained at 3.82% from Rs. 8,914 Cr in Q4FY17 to
Rs. 9,254 Cr in Q4FY18, despite higher provisions for wage revisions and gratuity.
 Increase in Overhead Expenses was contained at 3.79% from Rs. 7,064 Cr in
Q4FY17 to Rs. 7,332 Cr in Q4FY18.
 Increase in Operating Expenses was contained at 3.80% YoY.

Indians Pay Over 50% Tax on Fuel, One of the Highest Rates in the World

As on May 21, while the refineries produced petrol at
Rs 37.19 a litre, the state and central government
together made Rs 35.76 for every litre of petrol sold.
New Delhi, May 21:  India’s soaring fuel prices despite relatively stable crude rates is a direct result of more than 50 percent tax levied on petrol and diesel. After the Centre introduced daily revision of fuel rates from June 16 last year to absorb sudden shocks, retail rates have gone up by Rs 11.09 per litre as on May 21 in New Delhi in less than a year.

As on May 21, while the refineries produced petrol at Rs 37.19 a litre, state and central government together made Rs 35.76 for every litre of petrol sold.

According to the price buildup mechanism used by Indian Oil Corp. Ltd, the price of petrol charged to dealers as on May 21 was Rs 37.19 a litre. The rate finally swells to double its value when 25.44 percent excise duty, 4.72 percent dealer commission and 21.26 percent VAT gets added. The final retail price of Rs 76.57 a litre is a sum of 51.44 percent tax addition.

Petrol price in New Delhi is used for all calculations. However, rates in Mumbai and most other state capitals are predominantly higher as these taxes do not fall under Goods and Services Tax (GST) and are subject to revision by state governments. Retail price of petrol in Mumbai on May 21 reached an all-time high of Rs 84.40 per litre.

The same tax rate when compared to other developed economies and South-Asian countries emerges as one of the highest. The US levies a tax of 17 percent in its fuel while India’s immediate neighbour Pakistan taxes petrol at 23.5 percent.

India’s high tax rate also comes in sharp contrast to Bangladesh and European countries. Sharing Eastern borders with India, Bangladesh levies 25 percent corporate tax along with 15 percent on fuel while the average tax rate on petrol in the European nations approximates to 21 percent.

However, Norway and the Netherlands have tax rates higher than India.

Retail prices of petrol, when compared to its neighbours, topped the charts. Save China which has an average petrol rate of Rs 80.83, India has the highest petrol price in all of South East Asia. Pakistan charges Rs 51.64 a litre for petrol with Bangladesh and Sri Lanka selling a litre of petrol at Rs 71.54 and Rs 63.91 respectively.

Indian petrol is also costlier than Malaysia, Indonesia, the Philippines and Nepal along with 89 other countries.

According to weekly prices of petrol tracked in 167 countries, India ranks 90 with an average price of Rs 78.29 a litre. Iran with huge oil reserves sells petrol domestically at Rs 20.43 a litre. Iceland on the other hand petrol rates hovering around Rs 142.78 a litre.

According to a study by Bloomberg, it takes 20.11% of daily wages in India to afford a litre of petrol. India ranked the worst in terms of affordability of fuel. The study surveyed 60 major economies with Pakistan registering the 59th spot.

Crude prices have forever been blamed for the upward curve of retail prices. Average crude oil prices in the Indian basket during the financial year 2016-17 was USD 46.56 per barrel rising to USD 56.43 a barrel in 2017-18. Rates rose to USD 69.30 per barrel in the month of April 2018. Indian Crude Basket is weighted average of Dubai and Oman (sour) and the Brent Crude (sweet) crude oil prices.

The price hike gains further prominence because India is world’s third largest consumer of oil. In the financial year 2016-17, India consumed 194.2 million tonnes of crude, roughly 5 percent higher than the previous financial year. India has 230 million metric tonnes of refining capacity but imports 78 percent of its fuel needs. India spent $70 billion to import crude oil in the last financial year.

Top positions at 8 state-run banks to be vacant soon; four operating without heads

Mumbai, May 21: It has come to light that top positions at 12 state-run banks will be vacated soon, leaving the government with a tough task of filling the slots. While top position holders at eight state-run banks are on the brink of an exit, four others are operating presently without a head, reported The Economic Times. The report, quoting senior officials, suggested that this is the first time such a large number of positions will become vacant. 

At a time when banks in the country have been crippled by rising bad loans and gigantic frauds, the government would be looking to expedite the process of filling up the top positions, as leaving them vacant may lead to more internal errors. However, the process of hiring will not be easy, considering the strict regulations or guidelines introduced by the RBI in light of the recent Rs 13,600 crore Punjab National Bank scam. 

Soon after the incident came to light, scrutinising the banking and financial sector shed light on the involvement of senior bankers in scams. According to the report, Dena Bank, Andhra Bank and Punjab & Sind Bank have been operating without an head since the beginning of this calendar year, while Allahabad Bank lost its head Usha Ananthsubramanian, after a CBI chargesheet named her for involvement in PNB or Nirav Modi scam. 

Among others, Bank of Baroda CEO PS Jayakumar is also on the verge of retirement as he will be completing the three-year term this year. Likewise, Central Bank of India CEO and MD Rajeev Rishi is going to complete his five-year term and sources told ET that he is unlikely to get an extension. 

Others whose terms have ended include Canara Bank’s Rakesh Sharma, Indian Bank’s Kishor Karat and Melwyn Rego of Syndicate Bank and PK Bajaj of UBI and RK Takka of UCO Bank. The ET report suggested that there are 19 executive directors available to fill the 12 top slots at different PSUs. 

A senior official told the publication that those (executive directors) who have completed a year plus an additional two years are eligible for the post of CEO. It should be noted that the cut-off date for applying was April 1, 2018. Besides the government-run banks, there are two key positions that are lying vacant – the MD of State Bank of India and Deputy Governor at RBI. 

This government faces a rather difficult task in selecting the heads due to the strict guidelines introduced after a flurry of scams were uncovered. At least 11 such banks are facing restrictions from the RBI due to poor performance – based on an increase in bad loans in the past two years. 

Friday, May 18, 2018

India’s bad-loan levels have peaked, says SBI chairman

Banks now demand substantial equity in projects
to keep controlling shareholders engaged

Mumbai, May 18:  The head of India’s biggest bank has declared an end to a protracted, dramatic rise in the sector’s bad loan ratios, which has forced a huge government bailout and sparked fears for the country’s economic outlook.

Indian banks lent enthusiastically to large-scale industrial projects over much of the past decade, only for many big corporate borrowers to struggle with repayments after their projects failed to meet ambitious forecasts.

The banks’ declared bad debts have risen seemingly inexorably over the past two years, reaching $130bn at the end of March, prompting a $32bn recapitalisation plan for the dominant state-controlled banks and weighing on credit growth.

Now, the recognition of bad loans resulting from that rush of lending is effectively complete, Rajnish Kumar, chairman and managing director of State Bank of India, told the Financial Times.

“As far as the recognition part is concerned that is largely over,” said Mr Kumar, whose bank is by far the largest in India with more than $500bn of assets.

New rules issued by the Reserve Bank of India, the central bank, in February— which some in the banking sector described as excessively rigid —  left “little scope for anyone to hide anywhere”, said Mr Kumar. “So that part is over.”

The RBI’s new rules stipulate that if a debt goes unserviced for 180 days, lenders must take action under India’s powerful new bankruptcy code, forcing the sale or liquidation of the company.

This was just the latest stage in a sustained campaign by the RBI, beginning under former governor Raghuram Rajan, to force lenders to disclose the full extent of their distressed assets — and to end the practice of “evergreening”, whereby banks would repeatedly allow borrowers extra time to repay their debts.

Vital lessons had been learnt from the surge in non-performing loans in sectors such as steel and infrastructure, said Mr Kumar, who spent 27 years at SBI before becoming its chairman in October.

“When the funding for the projects came into the sector eight or nine years ago, we all thought it was a great opportunity for us,” he said. “But honestly we did not realise there are so many pitfalls.”

In particular, Mr Kumar said, banks were now insisting that company “promoters”, or controlling shareholders, put substantial equity into new projects, rather than relying excessively on bank credit.

“Now, when we underwrite any credit, the equity from the promoters [is] being looked into in much more detail,” he said. “We want promoters to be in the game.”

State-run banks by far saw the biggest rise in bad loans, which comprised 13 per cent of their outstanding lending as at the end of December, according to Credit Suisse.

The banks’ problems with asset quality — combined with the concerns raised by an alleged $2bn fraud at Punjab National Bank, one of the biggest lenders — has prompted growing debate over whether the government should privatise the banks, which were nationalised by then prime minister Indira Gandhi in 1969.

Mr Kumar argued that India’s development requirements meant it would need government banks for another two decades to perform important but low-margin work such as extending financial services to the rural poor.

“If we can develop the country in the next 20 years, then the need for state ownership to push development will be less,” he said.

Sri Karthik Velamakanni, an analyst at Investec, said further increases to the default figures could still potentially come from “nagging pain points in the economy” such as construction and power.

The state banks’ weak capital situation was threatening their ability to ramp up their lending to the economy, he added. “There will be a long and painful road ahead.”

Thursday, May 17, 2018

Aadhaar only an add-on, not mandatory for getting pension: Government

Aadhaar is an additional facility to enable the use of technology for submission of life certificate without the need for visiting banks

New Delhi, May 16 (PTI): Aadhaar card is not mandatory for central government employees to get their pension, Minister of State for Personnel Jitendra Singh has said.

In 30th meeting of the Standing Committee of Voluntary Agencies here recently, he said Aadhaar is an additional facility to enable the use of technology for submission of life certificate without the need for visiting banks.

His assertion assumes significance as there were reports of some retired employees facing difficulty in getting the pension in the absence of Aadhaar linkage with their bank accounts.

The minister clarified that Aadhaar has not been made mandatory for getting pension for government employees, according to the minutes of the meeting.

Aadhaar is a 12-digit number, issued by the Unique Identification Authority of India (UIDAI), that acts as identification and address proof.

There are about 48.41 lakh central government employees and 61.17 lakh pensioners.

Singh cited various initiatives started by the central government for the welfare of its employees and pensioners.

"For instance, minimum pension has been increased to Rs 9,000, ceiling of gratuity has been increased to Rs 20 lakh, fixed medical allowance has been increased to Rs 1,000 per month," the minister said.

"Constant attendance allowance has been increased from Rs 4,500 to Rs 6,750 with effect from July 1, 2017. Some benefits relating to income-tax e.g. standard deduction, tax-rebate etc. on interest made available in the Finance Bill, 2018," he said.

Tuesday, May 15, 2018

High Net NPA Ratio: Four more PSBs may face RBI lending restrictions

Mumbai, May 14:  After the Reserve Bank of India’s (RBI) lending restrictions on Allahabad Bank and Dena Bank, at least four other public-sector banks (PSBs) could face similar curbs if net bad loan ratios are anything to go by.

According to data compiled by FE, four PSBs— IDBI Bank (net NPA ratio of 16.02%), Indian Overseas Bank (13.08%), Bank of Maharashtra (12.17%) and United Bank of India (11.96%) have reported higher net NPA ratio than Dena Bank (11.52%) for the December quarter of FY18.

Net NPA ratio is the amount of bad loans as a percentage of net advances. Dena Bank’s net NPA ratio rose to 11.95% in the March quarter. However, most other public-sector banks have not yet declared their Q4 financial results.

On the other parameter of return on assets (RoA), Dena Bank’s stood at -1.27% as on December 31, 2017— the highest among other banks under prompt corrective action (PCA).

The lowest RoA was reported by Oriental Bank of Commerce (OBC) at -3.07%, followed by Central Bank of India (-2.13%), Allahabad Bank (-2.09%) and Corporation Bank (-2%).

Going by analyst estimates, the March quarter of FY18 would see an increase in slippages. This could, in turn, lead to RBI imposing further restrictions on the PCA banks.

Nomura expects the top six corporate lenders to report slippages worth Rs 75,500 crore, up from the Rs 35,000-50,000 crore range seen over the last six quarters. This, in turn, would lead to a 50% y-o-y rise in provisioning.

RBI had released revised PCA norms last year classifying the degree of risk into three categories. It had said if a bank reached the level of ‘risk threshold 3’, it could end up as a candidate for amalgamation, reconstruction or even be wound up.

Among the many metrics that are used to gauge how weak a lender is, are capital, net NPAs, RoA and Tier-1 leverage ratio.

A capital adequacy of less than 3.625% would leave the lender at the risk threshold three.

Today, a bank needs to have a minimum capital of 10.25%.

If net non-performing assets are 12% or more, a bank will find itself classified as threshold three.

Under PCA, banks face restrictions on distributing dividends and remitting profits.

The owner— government in this case— may be asked to infuse capital into the lender.

That apart, lenders would also be stopped from expanding their branch networks. It would need to maintain higher provisions and management compensation and directors’ fees would be capped.

Saturday, May 12, 2018

United Forum of Bank Unions propose to go on STRIKE on CONTINUOUS STRIKE from 30th May-1st June, 2018

United Forum of Bank Unions (AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW, NOBO)  propose to go on strike on 48 hours CONTINUOUS STRIKE from 6.00 am on 30th May, 2018 to 6.00 am on 1st June, 2018 on the following demands:
OPPOSING:
·         IBA’s delay in resolving Charter of Demands
·         Government’s casual approach to wage revision for bank employees/officers
·         IBA’s meagre offer of 2% hike in wage bill towards wage increase
·         Partial mandate given by some of the Banks only upto Scale III Officers

DEMANDING:
·         Expeditious and early wage revision settlement.
·         Adequate increase in salary and improvement in other service conditions
Wage revision settlement to include all officers upto Scale VII

United Forum of Bank Unions (UFBU) propose to go on STRIKE on 48 hours CONTINUOUS STRIKE from 30th May, 2018 to 1st June, 2018

United Forum of Bank Unions (UFBU)  propose to go on STRIKE on 48 hours CONTINUOUS STRIKE from 30th May, 2018 to 1st June, 2018 


OPPOSING:
·         IBA’s delay in resolving Charter of Demands
·         Government’s casual approach to wage revision for bank employees/officers
·         IBA’s meagre offer of 2% hike in wage bill towards wage increase
·         Partial mandate given by some of the Banks only upto Scale III Officers

DEMANDING:
·         Expeditious and early wage revision settlement.
·         Adequate increase in salary and improvement in other service conditions
·         Wage revision settlement to include all officers upto Scale VII

AGITATIONAL PROGRAMME

16-05-2018
UFBU Memorandum to IBA
17-06-2018
Demonstrations before branches in all centres
18-05-2018
UFBU Memorandum to Finance Minister
19-05-2018
UFBU Memorandum to Labour Minister
21-05-2018
onwards
Posters display at all Branches
22-05-2018
UFBU Memorandum to Secretary, DFS, MoF, GOI
24-05-2018
Press Meet in all State Capitals
24-05-2018
Demonstrations before branches in all centres
28-05-2018
Black Badge Wearing
29-05-2018
Centralised Demonstrations in all centres
30-05-2018
All India Strike
31-05-2018
All India Strike



Banks under taxman scanner for GST refund on ATM transactions

Mumbai, May 10:  The indirect tax department’s investigation arm is scrutinising the GST credit availed by banks on taxes paid by their ATM vendors and could soon ask banks to cut the credit availed by them, two people with direct knowledge of the matter said.

The taxmen are examining whether banks are eligible to avail 100% of Goods & Services Tax (GST) credit on services provided by vendors such as ATM withdrawal when a majority of such transactions are not charged to consumers.

The scrutiny started after banks claimed 100% input tax credit on the amount paid to ATM vendors who are responsible for maintenance and cash supply to the machines.

The vendors charge per withdrawal and add GST on the bills submitted to banks. Now, the banks have claimed input tax credit on the amount paid to vendors but this practice has come under the scanner.

The tax officials believe that since banks don’t charge on many withdrawals which are free to customers, 100% input credit should not be claimed.
The investigators have discovered that banks on an average charge only for about 40% of the ATM transactions from their customers. If the transactions are correlated on a one-on-one basis and input tax credit is taken only on those that are chargeable, there would be a considerable loss of credit to the banks.

“The process of investigations has gained pace and banks could get notices/summons asking for clarification and data to enable the authorities to proceed further in the coming months,” said an official in the know.

Explaining the issue further he added, “So if a vendor maintains an ATM and charges say Rs 2 per withdrawal for 100 withdrawals in a month, the total fees would come to Rs 200. On that 18% GST would be levied, most banks avail credit of this GST paid by their vendors when they charge their customers.” “The problem here is, banks do not charge for all the transactions, so how could they claim credit for full GST paid by the vendors?” he asked.

“Putting restrictions on credit eligibility or seeking to establish a transaction level nexus would be hotly contested by banks and would open the litigation floodgates,” said MS Mani, partner, Deloitte India.

The tax department’s move comes around a time of increased scrutiny for banks for service tax payments and the way they claim VAT credits. ET had reported on April 24 that the tax department had issued show cause notices to banks such as State Bank of India, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank among others to pay tax that could be around Rs 40,000 crore. The sales tax demand was retrospective with a 12% service tax claimed since 2012, 18% interest on the amount and a 100% penalty.

The finance ministry is believed to be unhappy with this and is set to strike down the demand but not before a strong complaint from banks.

Separately, the intelligence arm of the indirect tax department had also issued notices to four public sector banks and half a dozen ATM service providers for alleged manipulation of VAT credits.

ET had on March 27 reported that the revenue department’s intelligence unit has launched an investigation into the alleged collusion between select banks and their ATM service providers for avoiding payment of VAT and wrongful claim of tax credit. The investigators are looking into whether the contracts between banks and their service providers are fraudulent or disguised.

Friday, March 9, 2018

Power is a stressed sector for entire banking space, says SBI

Mumbai, March 8:  The power minister has said that State Bank of India is "worried" about its exposure to the Mundra power projects of both Adani Power and Tata Power. He also went on to express concerns over stressed assets in the power sector as a whole. In an interview to CNBC-TV18, Sunil Srivastava, Deputy MD of SBI spoke about the same.

Srivastava said that power is a stressed sector for the entire banking sector. He further said that there is a problem related to distribution and DISCOMS' (Distribution Companies) health. “Addressing these issues in a short possible time of six months is going to be very-very difficult,” said Srivastava.

According to him, there are 34 thermal power plants under stress. DISCOMS looking at buying cheap power over exchange than honouring their contract, he added.

Srivastava also mentioned that Central Electricity Regulatory Commission (CERC) is taking time in revising tariffs. There are still a few power plants that could be classified as non-performing assets (NPAs). However, not all gas-based power plants are under stress, he said.

Thursday, March 8, 2018

RBI slaps Rs 40 lakh fine on State Bank of India for breach of norms on counterfeit notes

Giving the background for the penalty, the banking regulator said that the currency chest inspection of two branches of SBI revealed, inter alia, violation of the instructions issued by RBI.

Mumbai, March 7: State Bank of India (SBI) has been hit with a monetary penalty of Rs 40 lakh for violating RBI rules on Detection and Impounding of Counterfeit Notes.

“The Reserve Bank of India (RBI) has imposed, on March 01, 2018, a monetary penalty of Rs 4 million (Rs 40 lakh) on State Bank of India (the bank)…This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” RBI said in a statement on its website.

Giving the background for the penalty, the banking regulator said that the currency chest inspection of two branches of SBI revealed, inter alia, violation of the instructions issued by RBI on Detection and Impounding of Counterfeit Notes.

“Based on the inspection report and other relevant documents, a Notice, dated January 05, 2018, was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by RBI. After considering the bank’s reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions/ guidelines were substantiated and warranted imposition of monetary penalty,” RBI added.

This comes two days after the central bank penalised Indian Overseas Bank (Rs 2 crore) and Axis Bank (Rs 3 crore) for breaching KYC (know your customer) norms and asset classification (NPA) guidelines, respectively.

Saturday, March 3, 2018

SBI increases deposit rates for various tenors

Mumbai, February 28 (PTI): Country’s largest lender State Bank of India has revised retail and bulk deposits rates by up to 0.75% for various maturities, effective today.

For retail deposits, below Rs 1 crore, rates have been increased by up to 0.50%.

For deposits maturing in one year to less than two years, rates have been raised by 0.15% to 6.40% from 6.25% earlier.

The retail deposit rates for two years to up to 10 years have been changed by 0.5% to 6.5% from 6%. The lender revised its bulk term deposit rates for the third time in as many months.

For Rs 1 crore to Rs 10 crore bulk deposits, maturing in one year to less than two years, the bank raised rates by 0.5% from 6.25% to 6.75%.

For deposits maturing in two to less than three years, the rates have been increased by 0.75% to 6.75%.

For above Rs 10-crore bulk deposits maturing between one year and less than two years, the rates have been raised by 0.5% to 6.75%.

Rates for bulk deposits maturing between two to less than three years is increased by 0.75% to 6.75%.

Monday, February 19, 2018

Please stop painting all with same brush….Do not demoralize the industry for the misdeeds of few!!!

PSBs have toiled to keep the economy going.
PSBs suffer internally.

Reality is not known to many..
PSBs are the only organization where the business doubles over years, staff strength halves!!

PSBs have served the country with not less than 20 hours a day during DeMo to monetize the economy..

Farmers, SMEs, Salaried section, MIG/LIG/Weaker Section have easy access to credit facility only at PSBs.

It is PSBs who open Branches even in place where potable water, a cup of tea is not available
It is PSBs who keep branches open even on the days of strike, hartals, risking the life..

It Is PSBs who have liberated rural population from money lenders..
It is PSBs who opened 99% of Jandhan.. Implement Crop Insurance, Pension etc.

PSBs are the only place where late night oil is burnt.
Perhaps bank officers the only section of society who do not attend social events in family. Official work is preferred to socializing..

Perhaps bank officers are only section who work on most of Sundays and holidays..

Do not blame industry for the greed of one or two in it. Handful of dishonest, negligent staff who cannot even be represented in decimals of 5 places (0.00002).

Condemn the guilty and not the Bank or Industry. 
Black sheep are bound to be present here are there.
It is there in every system. 
In Banks it is not as rampant as in other systems!

Nothing happens to surgeon when a surgery fails.  
Nothing happens when an advocate looses case..
Nothing happens to engineers when a building falls…
Nothing happens to scientists when a rocket fails.
Factories provide for errors.

But, for a banker his official life has to be 100% error free.
One error can cost him his life, career and may put him in dock.

Bankers deserve due regards and respect.
Please think twice before embarrassing en-block!

Stop cracking a joke... or forwarding a joke !!

Pl share.... Show unity...

Friday, January 19, 2018

Physical banks will be irrelevant in next 3 years in India: Amitabh Kant

New Delhi, January 18 (PTI): Niti Aayog CEO Amitabh Kanttoday said physical banks in India will be irrelevant in the next 3 years as data consumption growth and data analytics are likely to further boost financial inclusion.

"Days of physical bank will be over...India will throw huge amount of data, Kant said, adding data analytics would boost financial inclusion in the country.

While speaking at a panel discussion here, he said India is the only country with over a billion biometrics.

In the next three-four years, India will have a billion plus smartphones, Kant said.

The Niti Aayog CEO also pointed out that mobile data consumption in India is more than the US and China put together.

Participating in the panel discussion, Paytm founder Vijay Shekhar Sharma said the new banking model in this world will come out of India and Paytm will be early example of that India model.

WhatsApp Pay in Beta Stage, To Go Official Next Month: Report

New Delhi, January 18: WhatsApp is long rumoured to be working on adding a payment feature within the app, but the precise launch date still remains a mystery.

A news report from ET now claims the WhatsApp payment option will go live in India as early as next month. WhatsApp is reportedly conducting the final phase of tests with a select group of users, and the payment feature will roll out most likely by February, ET quoted ‘people aware of the developments’.

“The platform is already in beta stage (testing) with one of its partner banks. We expect the product to go live for consumers by the end of February, depending on how the trials work out,” the publication’s source said.

The widely popular messaging app is working on integrating its Unified Payment Interface (UPI) based payments platform with some of India’s popular banks. WhatsApp has reportedly partnered with Axis Bank, HDFC Bank, ICICI Bank, and State Bank of India.

A banking representative confirmed the same, revealing there are several security concerns that need to be addressed before the integration, especially in regards to the safety of the customer’s data.

“To be able to send money as easily as a text message involves ensuring various levels of encryption to keep the data safe. UPI, by itself, also has a complicated settlement mechanism between various banking partners. These issues need to be attended to before the product goes live.,” ET quoted a senior banking official.

The latest report comes after various traces of the WhatsApp Pay feature were spotted in beta versions of the app. The Pay feature will be added in the Attachment section and users will be able to transfer money from the same screen itself.

A number of leaked impressions of the feature revealed that paying via WhatsApp will be a much easier task. In fact, it is said to be as simple as sharing a contact or photo.

A “Rupee” symbol added in the Attachments option which will allow users to access the feature. The uses could then make a peer-to-peer payment through the one-step process of entering the amount and UPI PIN.