State-run IDBI Bank is expecting a loan disbursement growth of 18 per cent and deposit growth of 20 per cent this fiscal, considerably lower than that achieved in the last financial year, a top bank official said here on Friday.
In 2008-09, its loan portfolio grew at 26 per cent and deposit at 56 per cent.
"The economy is not doing too well, so we can't expect the same growth to take place this year," IDBI Chairman and Managing Director Yogesh Agarwal told reporters on the sidelines of the ongoing Banking Conclave.
The bank expects loans increased 15 per cent year-on-year and deposits by 20 per cent in the first quarter this fiscal.
The net interest margin of the bank is expected to be at one per cent in 2009-10, up from the present 0.8 per cent.
Talking about the bank's future plans, Agarwal said: "Reserve Bank of India has given us the permission to start an asset management company (AMC) and we are going through all the approvals required for that."
The AMC is expected to be set up in a year, he said, adding that IDBI has now applied for permission to set up a private equity venture.
Saturday, July 11, 2009
India didn’t use $20 bn of external loans: FM
New Delhi: India failed to make use of $19.7 billion (around Rs95,500 crore) of loans sanctioned by overseas institutions including the World Bank and Asian Development Bank (ADB) as on 31 March, finance minister Pranab Mukherjee said.
The unused loan amount for the World Bank and ADB is Rs57,200 crore against the sanctioned loan amount of Rs1.19 trillion, Mukherjee said in a written reply to a question in Parliament on Tuesday. All funds cannot be used at one go, minister of state for finance Namo Narain Meena said in Parliament.
India paid a commitment charge of Rs113 crore in the fiscal ended 31 March for not using the amount, Mukherjee said.
The unused loan amount for the World Bank and ADB is Rs57,200 crore against the sanctioned loan amount of Rs1.19 trillion, Mukherjee said in a written reply to a question in Parliament on Tuesday. All funds cannot be used at one go, minister of state for finance Namo Narain Meena said in Parliament.
India paid a commitment charge of Rs113 crore in the fiscal ended 31 March for not using the amount, Mukherjee said.
Monday, June 29, 2009
Financial Debts to be Closed with Credit Consolidation
Credit consolidation loans have come to the rescue of many people facing unfortunate financial debts. These loans also known as debt consolidation loans can be found being widely advertised in various types of media.
Whether print or the electronic media, including online sources, you can find credit consolidation companies trying to woo customers with their advertisements. With so many companies in fray, very often the process of choosing one from amongst all of them is a difficult task indeed.
You should always choose a loan consolidation company based on the services that they offer and the fee that they charge towards their services. Ideally a reputable loan consolidation company will ask you to pay a small flat fee per month. Remember that a reputable loan company will always have your best interests in mind and will therefore try and keep your costs as low as possible. This is the reason why you should always go in for the services of a well reputed loan company.
A good debt consolidation company should have extensive experience in dealing with credit consolidation.
This is an important aspect that you must always look into. This is so since there could be companies which could be dealing with a wide variety of loans of which credit consolidation loans are one of them. For instance a company which more or less specializes with home loans could also be offering credit consolidation loans. In this case they may not be having enough experience in the line of credit consolidation. It is for this reason that you must always choose a company which has experience in this particular field.
The specified payment date, when you need to repay is an important aspect that you should not neglect. This is so since the date, on which you need to pay the installment towards the loan, may clash with any other payment that you may have to make on the same date. It is for this reason you must always ask for the date of payment each month, before you choose a loan consolidation company. All these factors will help you in choosing the right loan consolidation company.
The internet is a useful tool in locating a credit consolidation company. A simple online search is all that you need to do in order to find a loan company near you. You can also get several types of useful information on loan consolidation at most of these websites. The websites of loan consolidation companies usually come along with an online application. You will just need to fill up the form online and wait for the customer representative to contact you. Shopping around is the key with these loans. Try and get in touch with multiple loan companies. This will help you to compare and then go in for loans that best suit your financial situation.
With intense competition prevailing among loan consolidation companies in the market, you can also find companies which offer loans to even those who have a bad credit history. There are certain non-profits too in some countries which offer these types of loans at a much lower rate of interest these days. You will need to carefully look into all these factors when choosing a credit consolidation company.
Article Source: http://www.articlesnatch.com
Whether print or the electronic media, including online sources, you can find credit consolidation companies trying to woo customers with their advertisements. With so many companies in fray, very often the process of choosing one from amongst all of them is a difficult task indeed.
You should always choose a loan consolidation company based on the services that they offer and the fee that they charge towards their services. Ideally a reputable loan consolidation company will ask you to pay a small flat fee per month. Remember that a reputable loan company will always have your best interests in mind and will therefore try and keep your costs as low as possible. This is the reason why you should always go in for the services of a well reputed loan company.
A good debt consolidation company should have extensive experience in dealing with credit consolidation.
This is an important aspect that you must always look into. This is so since there could be companies which could be dealing with a wide variety of loans of which credit consolidation loans are one of them. For instance a company which more or less specializes with home loans could also be offering credit consolidation loans. In this case they may not be having enough experience in the line of credit consolidation. It is for this reason that you must always choose a company which has experience in this particular field.
The specified payment date, when you need to repay is an important aspect that you should not neglect. This is so since the date, on which you need to pay the installment towards the loan, may clash with any other payment that you may have to make on the same date. It is for this reason you must always ask for the date of payment each month, before you choose a loan consolidation company. All these factors will help you in choosing the right loan consolidation company.
The internet is a useful tool in locating a credit consolidation company. A simple online search is all that you need to do in order to find a loan company near you. You can also get several types of useful information on loan consolidation at most of these websites. The websites of loan consolidation companies usually come along with an online application. You will just need to fill up the form online and wait for the customer representative to contact you. Shopping around is the key with these loans. Try and get in touch with multiple loan companies. This will help you to compare and then go in for loans that best suit your financial situation.
With intense competition prevailing among loan consolidation companies in the market, you can also find companies which offer loans to even those who have a bad credit history. There are certain non-profits too in some countries which offer these types of loans at a much lower rate of interest these days. You will need to carefully look into all these factors when choosing a credit consolidation company.
Article Source: http://www.articlesnatch.com
Debt Consolidation Companies: Choose Carefully and Avoid Being Scammed
It’s difficult not to notice the incredible growth that there has been in companies offering debt consolidation programs and solutions over the past few years. Debt consolidation companies are amongst some of the biggest advertisers on the internet and there are now more loan consolidation TV commercials than there ever has been before. However, quite a few of these debt consolidation companies are currently being sued by a number of attorney generals, the IRS, and the FTC over their claims of being ‘non-profit’ organizations.
A debt consolidation company, that will remain unnamed, has actually had a federal lawsuit filed against it and the FTC and five individual states have filed similar lawsuits against the same company. This unnamed company declared Chapter 11 bankruptcy but in actual fact are still operating under different company names.
You may find it interesting to know that many companies in this field no longer call themselves ‘debt consolidation companies’ because of the negative press that this legal action against the unnamed company has generated. It is more likely they use names such as ‘debt negotiation’ companies or ‘debt settlement’ companies now to describe what they do. Irrespective by what name they go by, these companies are likely still using illegal tactics and methods, and should be avoided at all costs.
You should check out all debt consolidation companies you are considering having dealings with, in fact it would be prudent to check out each company you deal with for that matter, with your local independent consumer protection office and the Better Business Bureau in the company’s location or on the internet.
Knowing how to read into the information you gather is important as a good rating awarded to a debt consolidation company may carry very little weight and be totally misleading as over 75% of all complaints received by the Better Business Bureau do not, and will not, count against a company’s rating if the complaint is deemed to have been resolved.
The Better Business Bureau, although a useful source of information, has no power to investigate complaints made against debt consolidation companies and nor does it have the authority to resolve them neither.
Utilizing the internet is an ideal way to broaden your search for a reputable company to use as there are a number of review sites you can visit that have consumer feedback, just cross off those companies that people have complained about.
One final piece of advice is to avoid any debt consolidation companies or organizations that have their address registered in the states of Maryland or Florida because companies registered in these two states are non-regulated. Avoiding those companies registered in Maryland and Florida is quite easy due to the large number of companies supplying this type of service that are registered elsewhere.
Happy home scheme: SBI loans Rs 1,500 cr a month
State Bank of India's disbursements on home loans under its 'New happy home loan scheme' have grown at Rs 1,500 crore monthly. This is about Rs 400 crore more than the monthly average of Rs 1,100 crore it did in the first two months since the scheme was announced.
"Till March we had done Rs 2,348 crore. Subsequently we are sanctioning Rs 1,500 crore every month," P. Nandakumaran, Chief General Manger, Personal Banking, SBI, told Business Line.
In the first week of February, SBI had announced that it will offer an interest rate of 8 per cent for one year - the lowest so far in the industry. In the second year, the rates applicable will be the prevailing rates then.
To stimulate demand
The bank's move was to stimulate demand in the housing market at a time when many buyers postponed their purchasing decisions amid economic uncertainty and fear of job losses. The scheme has now been extended till September.
The bank also offers other schemes, which will be valid till the month-end. Under this, it offers a home loan between Rs 5 and 20 lakh at a fixed interest rate of 9.25 per cent a year for five years, after which rates will be re-set.
SBI, which claims to have the highest growth in its home loan portfolio last fiscal, saw its advances swell to Rs 54,063 crore.
This is a 21-per cent increase from Rs 44,626 crore in the previous fiscal. During the same period, the bank's market share grew to 19.74 per cent from 17.48 per cent.
SBI plans to disburse 50% more car loans
State Bank of India (SBI), which announced an aggressive auto loan scheme on Saturday, hopes to enhance monthly disbursements by 50 per cent from around Rs 300 crore at present. The largest and the most aggressive car financier, SBI is already financing over 10,000 cars every month.
Ever since it launched the special 10 per cent auto loan scheme on February 23, SBI has moved into the top gear. Senior bank officials said they are financing close to 15 per cent of the total cars sold by Maruti and Hyundai. SBI is also mulling over a better scheme for home loans, which already runs an attractive special scheme of 8 per cent for the first year.
“We are already the largest financier of new cars. It is difficult to say whether we will improve our home loan rate or not. It will depend on the market conditions. We are targeting a 50 per cent jump in both our disbursals and the number of cars sold through the new scheme,” said a senior SBI official.
“We are also planning a number of other new initiatives in retail products with innovative pricing,” said P Nandakumaran, ch-ief general manager (pe-rsonal banking business unit) of SBI.
In the previous year, SBI marched ahead in the car financing space and is now the largest financier of new cars. The bank has taken proactive steps to improve the number of cars sold with finance amounts and some of the car manufacturers started showing good growth from March onwards, banking on the strength of the popular interest rate offer from SBI.
SBI car loan scheme offers a repayment period of seven years with no advance equated monthly instalments (EMI) and a free accident insurance cover for loan outstanding up to Rs 40 lakh. The bank will finance up to 85 per cent on the “on road price of the car.” Interest calculated on the daily outstanding balance by SBI reduces the interest burden on the borrower against the monthly outstanding balance or flat rate basis as charged by few others.
Under the scheme, the EMI for a SBI car loan for Rs 1 lakh will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third year. The SBI car loan card rates are 25 to 75 basis points below the bank’s prime lending rate (PLR).
SBI has entered into strategic tie-ups with Maruti Suzuki India and Tata Motors and financing arrangements with all major car manufacturers including Hyundai Motors.
About 70 per cent of the cars sold in India are financed while the remaining is bought outright.
Ever since it launched the special 10 per cent auto loan scheme on February 23, SBI has moved into the top gear. Senior bank officials said they are financing close to 15 per cent of the total cars sold by Maruti and Hyundai. SBI is also mulling over a better scheme for home loans, which already runs an attractive special scheme of 8 per cent for the first year.
“We are already the largest financier of new cars. It is difficult to say whether we will improve our home loan rate or not. It will depend on the market conditions. We are targeting a 50 per cent jump in both our disbursals and the number of cars sold through the new scheme,” said a senior SBI official.
“We are also planning a number of other new initiatives in retail products with innovative pricing,” said P Nandakumaran, ch-ief general manager (pe-rsonal banking business unit) of SBI.
In the previous year, SBI marched ahead in the car financing space and is now the largest financier of new cars. The bank has taken proactive steps to improve the number of cars sold with finance amounts and some of the car manufacturers started showing good growth from March onwards, banking on the strength of the popular interest rate offer from SBI.
SBI car loan scheme offers a repayment period of seven years with no advance equated monthly instalments (EMI) and a free accident insurance cover for loan outstanding up to Rs 40 lakh. The bank will finance up to 85 per cent on the “on road price of the car.” Interest calculated on the daily outstanding balance by SBI reduces the interest burden on the borrower against the monthly outstanding balance or flat rate basis as charged by few others.
Under the scheme, the EMI for a SBI car loan for Rs 1 lakh will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third year. The SBI car loan card rates are 25 to 75 basis points below the bank’s prime lending rate (PLR).
SBI has entered into strategic tie-ups with Maruti Suzuki India and Tata Motors and financing arrangements with all major car manufacturers including Hyundai Motors.
About 70 per cent of the cars sold in India are financed while the remaining is bought outright.
Saturday, June 20, 2009
Bank Of America Board Loses 2 More Directors
Joseph Prueher and Tommy R. Franks resigned from the Bank of America Corp. (BAC) board this week, increasing to seven the number of directors who have left since late April amid calls for improved corporate governance at the banking giant.
The latest departures could deepen scrutiny of Chief Executive Kenneth Lewis, who lost his post as chairman earlier this year. The company earlier this month added four outside directors with experience in banking or financial oversight, a move aimed at satisfying suggestions from federal regulators.
The latest resignations were effective Wednesday. The board now has 16 members.
"Each director's decision to resign was not as a result of any disagreement with the corporation or its management," the company said in a Securities and Exchange Commission filing.
Prueher, 66 years old, is a retired admiral in the U.S. Navy who was named to the board in January, while Franks, 63, is a retired general in the U.S. Army who oversaw all combat operations in Iraq and Afghanistan in 2003. He joined the board in 2005.
Shares fell 2 cents to $13.20 in after-hours trading and are off 6% so far this year.
Citigroup’s Asia Unit Chief Is Going to MasterCard
Mr. Banga, a longtime executive who was one of Citigroup’s rising stars, was named MasterCard’s president and chief operating officer, putting him in line to run the global payment company.
The move, announced on Friday, is the latest high-profile departure from Citigroup, and underscores the difficulty that Vikram S. Pandit, the chief executive, is having holding his management team together after three government rescues.
Citigroup insiders say there is frustration among the executives just below Mr. Pandit’s inner circle of advisers. These executives feel excluded from crucial management decisions, exhausted by months of long hours and uncertain about the government’s involvement when it secures a nearly 34 percent ownership stake, these people say.
A Citigroup spokesman declined to comment.
Mr. Banga’s exit also could be a blow to Mr. Pandit, who is under pressure to turn around the troubled bank. Regulators at the Federal Deposit Insurance Corporationare conducting a special management review after they raised concerns that Mr. Pandit lacked commercial banking experience. Mr. Banga, who climbed up the
Citicorp ranks, was one of the few high-ranking executives with consumer banking expertise. Previously, he had run the Citigroup international banking franchise as well as its domestic credit card unit and retail banking units. He also helped lead a major brand overhaul for the bank.
Mr. Banga, 49, said he was leaving Citigroup for the chance to run a major public company, not because he was discontented. MasterCard said that Robert W. Selander, its longtime chief executive, was giving up his president’s title in a move that clearly telegraphs the payment company’s succession plans.
Mr. Banga’s departure is the latest in a string of departures from Mr. Pandit’s leadership team.
Gary L. Crittenden, Citigroup’s finance chief, stepped down this spring to deal with an illness in his family. Marty Lippert, the bank’s technology chief, and Sallie L. Krawcheck, Citigroup’s former head of wealth management, also left this year.
Monday, June 15, 2009
Loan pricing in India to evolve on International standards
In an attempt to enhance the transmission of monetary policy effect in the system and bring transparency in the pricing of loans by the banks, the regulatory authority, Reserve Bank of India has appointed a working group for reviewing the existing system of loan pricing.
The group to be headed by Deepak Mohanty, executive director, RBI and would investigate the best international practices in the area, suggest changes for the Indian system. Besides this, the group will also look into the lending rates for loans (up to Rs 2 lakh) extended by the bankers to the exporters. It would also analyze the deviation of actual lending rates from the BPLR and suggest a suitable BPLR for the banks.
The committee will have representative members from the Indian Banks' Association, the Banking Codes and Standards Board of India besides veteran bankers and external experts from the industry.
The step has been taken in view of the increased sub-benchmark prime lendings by the banks. In a statement, RBI said, "The system of benchmark prime lending rate (BPLR) has evolved in such a manner that it has lost its relevance as a meaningful reference rate as bulk of loans are advanced below BPLR."
The statement also pointed that the sub-BPLR lending (Jun 10, 2009) ‘impedes the smooth transmission of monetary signals and makes the loan pricing system non-transparent.'
In recent past, KC Chakrabarty, chief managing director, PNB, who has been notified for appointment as the deputy governor of Reserve Bank of India (RBI) had asked the banks to refrain from lending at below BPLR.
RBI introduced the benchmark prime lending rate system in November 2003 to bring transparency in the system of lending. Most banks have been extending loans at 2.5-3 percentage points below the BPLR.
The annual policy report 2009-10, stated "over time, the system of BPLR has evolved in such a manner that it has lost its relevance as a meaningful reference rate as bulk of loans are advanced at below BPLR. Furthermore, this impedes the smooth transmission of monetary signals and makes the loan pricing system non-transparent".
Tata Motors tie-up with Bank of India
Tata Motors has joined hands with public sector lender Bank Of India to provide retail financing facilities for its Fiat range of passenger cars which were available through the Tata-Fiat dealership network.
As per the MoU, customers can avail special interest rates for loans upto Rs 10 lakh for a Fiat car including the yet to be launched Grande Punto, a company release here said.
Under the agreement, financing facilities would be available at all metro, urban and semi-urban branches of Bank Of India and the 100 sales touch points of the auto-maker.
It would provide consumers a single window for availing loans for Tata Motors-manufactured cars and Fiat cars,it said.
"Tata Motors has always been at the forefront of introducing multiple customer centric initiatives. We felt that the strong product range from Fiat could be leveraged further with easy financing options for customers", Tata Motors Country Head (Fiat Product group) Subodh Marathe said.
Tata Motors currently has operations in United Kingdom, South Korea, Thailand and Spain, the release added.
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