IDBI Bank expects lower loan, deposit growth

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.

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.

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

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.

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.

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.

Student loan consolidation important highlights

Accessibility to both federal and private education loans to potential students is such a great financial uplift but with undoubted paybacks later.

If you think about it, the amount to clear a four-year course even if it just covered tuition fees alone must be quite huge for a collage leaver hassling for a placement in today’s competitive job markets.

Student loan consolidation programs are therefore of importance to fresh graduates expected to start making payments to refund their loans.

It involves not just combining multiple loans one could be liable to but the lenders pay them off to your creditors and redraft a fresh one or the consolidation.

But just like always, it is the party in need who should gather all the information necessary to get the best lender for his student loan consolidation.

Why you may need to consolidate

One thing that go without saying is financial strive that many fresh graduates experience after endless efforts to get a job.

In any case unemployment problem is even more rampant following companies move to lay off some workers and others collapsing due to global economic crisis.

Remember your education providers are blind to the situation you may be going through and expect you to clear your monthly payments as usual.

If you are already struggling or foresee a situation of financial problems in the near future, you could opt for consolidation.

As well, having too many types of student loans for which you are struggling to organize a good plan not to default in any of them, this could be the solution needed.

Finally, you might consider applying for a student loan consolidation program if for the above reason or others you have skipped monthly payments severally.

Types of loans to consolidate

Whether you paid your college education using private or federal student loans or both, consolidation programs are available for you.

Normally, private loan programs interest rates charged by loans providers are higher as opposed to the federal ones.

A private student loan consolidation (based on credit) that many would go for is therefore that which guarantee reduced interest rates to allow them to make some monthly savings.

Most lenders for these will ask you to bring a co-signer who should stay until you show that you can be trusted with your monthly payment obligation.

Federal loan consolidation programs have advantages such as low interest rates, monthly payments and longer payment periods.

This means that every month, one can get to save money they were not able to when they paid the loans separately.

How to make applications

If you want a private student loan consolidation program, you can do so with a brand new private lender or stick with the one who helped you pay your education costs.

For federal loans, there is a designated procedure based on type or simply if it a direct federal loan or any other.

Nothing lacks its critics but before you decide on solving your loan payment problem using this method, ensure that you do thorough research to end up making a wiser decision.

(Source:Elitestv)

http://bankingpartner.blogspot.com/2009/01/consolidate-your-student-loans.html

Lloyds bank set to shed 530 jobs

Lloyds Banking Group plans to shed 530 jobs and close one site in the UK. All jobs will go before year-end.

Some 210 people will lose their jobs when a customer service unit in Kent is closed, of which 190 are full-time positions, the bank said.

Another 320 positions will go from other retail operations throughout the UK, but no details of where the cuts would fall were revealed.

The move comes on top of the 625 job cuts announced last month.

Lloyds Banking Group was created through the merger of Lloyds TSB and HBOS at the start of the year.

In May the bank said it would axe 625 posts in the UK as the bank merged its corporate and small-business lending units.

Ged Nichols, general secretary of union Accord, said: "Today's announcement is further bad news for employees of Lloyds Banking Group's Retail Banking Division."

"We believe that UK taxpayers will expect the bank to work in partnership with Accord and the other unions representing its employees to minimise unnecessary unemployment, particularly given the support that UK taxpayers have provided to the bank."

The Treasury owns around 43.4% of the merged bank after it was bailed out by the government.

The firm said the work done at the customer service unit in Chatham, Kent will be transferred to other retail sites across the UK.

"Accord argued with LBG to try to preserve the operation, but, ultimately they decided to press on with closure," the union said.

Banks should review loan policy towards MSMEs: RBI

The RBI on Thursday asked banks to review their loan policy towards micro, small and medium enterprises (MSMEs), badly hit by the economic slowdown.

"One has to be sensitive to the sector and put in a revised policy," RBI Deputy Governor Usha Thorat said in her address at a conference here.

Noting that MSMEs were the "worst sufferers" when disaster strikes, she said there is need to provide special relief to the sector on the lines of the National Equity Fund, recommended by the Chakraborty committee.

MSMEs are facing a slump in demand for exports and services, besides a build-up of large inventory, delayed payments and slowdown in remittances, Thorat said.

About 12.8 million MSMEs provide jobs to over 300 million people and account for 39 per cent of the manufacturing sector output and 33 per cent of exports, she said.

She said the RBI had taken 'unprecedented' measures to ensure liquidity and credit flow to MSMEs to help the sector during the recessionary period now and added that a special refinance facility under Section 17 (3B) was also extended to them.

Ms. Thorat, speaking at a one-day conference 'Learning from recession, saving an economy: Towards an MSME agenda', said the central bank has also given in-principle approval to set up four credit information companies.

Ms. Thorat said the average annual growth rate in the domestic economy in the last five years was 8.9 per cent and it had slowed down to 6.7 per cent in 2008-09.

"There has been decline in exports for five months in a row from October 2008 to February 2009 and subsequent figures also show a fall in exports," she said.

Kerala has been affected by recent global events and all export areas -- spices, marine products and tourism -- have been hit by the meltdown, Ms. Thorat said.

http://bankingpartner.blogspot.com/2008/10/loan.html

ICICI Bank cuts retail floating, lending rates by 50 bps

ICICI Bank, the country’s second largest bank, on Thursday cut its Floating Reference Rate (FRR) for retail loans as well as its benchmark advance rate by 50 basis points each even as State Bank of India, India’s largest bank, said that it has room to further clip interest rates on deposits and advances by 25 basis points.

The interest rate cuts by ICICI Bank will be effective from Friday. Post the rate cut, the private sector bank’s FRR and benchmark advance rate will be 12.75 per cent and 15.75 per cent, respectively.

Even after the latest round of lending rate cut, ICICI Bank’s benchmark prime lending rate is higher than that of public sector banks such as SBI (12.25 per cent), Punjab National Bank (11 per cent), Bank of Baroda (12 per cent), etc.

The ICICI Bank Chief Executive and Managing Director, Ms Chanda Kochhar, said that the rate cut would not affect the bank’s margins. “Rather than any other specific signal, we look at our cost of funds. Over the last six-seven months, the cost of funds has been going down,” she told a TV channel.

Meanwhile, the SBI Chairman, Mr O. P. Bhatt, said that his bank had room to cut lending as well as deposit rates by 25 basis points. He pointed out that liquidity was abundant in the banking system.

American economist praises RBI's safer home loan norms

Praising Reserve Bank of India (RBI) for having safer home loan norms, American economist Duglas J Young said India does not have much impact of economic slowdown because of RBI's safer home loan norms.  

Economic slowdown's impact in India is less and banks are survived only because of RBI's norms in housing loan, Young said while addressing city's businessmen and professionals at a seminar last night. Indian banks give housing loan 80 per cent which help them to survive dispite discreaing property rates.     

Young said India has achieved 9.5 per cent of GDP rate while other countries in the world had the rate between 4.5 to 6 per cent.    

He, however, expressed fear that Non Resident Indian (NRI) investment in India can be dicreased because NRIs living in Amrecia and European countries are facing the slowdown which forced them to cut short their investmet in India.     

Young, who is also a proffesor in America's Montesa Universty had been here for last two days.     

The seminar was organised jointly by Rajkot Chamber of Commerce and Industry (RCCI) and American Centre, Mumbai.

Loans will get cheaper as ICICI, HDFC reduce rates

ICICI Bank, once a price warrior in the retail loan market, may be getting back in the game. The country’s second-largest bank has lowered interest rates on loan by 50 basis points, making it the second rate cut in six weeks. The move will reduce rates on home and auto loans for new and existing borrowers of ICICI.

Other big lenders are also pruning rates in the absence of a quick loan offtake. On May 7, India’s largest home finance company HDFC lowered its prime lending rate (PLR) — the benchmark rate to which all floating rate loans are linked — by 25 basis points. In a less-publicised move, HDFC also made an additional 50 basis points reduction in interest rates for new borrowers availing loans in the range of Rs 30 lakh to Rs 1 crore. This was done by revising the spread between PLR and the loan rate.

A 25-basis points cut reduces the loan EMI by around Rs 15 for every Rs 1 lakh loan, and a 50 basis points lowers the EMI by Rs 30.

The reduction could have been in anticipation of more rate cuts by State Bank of India, the biggest local lender. Indeed, SBI chairman OP Bhatt on Thursday said there was room to cut rate by another 25 basis points on loans as well as deposits.

More About Loan http://bankingpartner.blogspot.com/2008/10/loan.html

Nedbank In Talks To Buy Imperial’s South African Banking Unit

Johannesburg-based Nedbank Group, South Africa’s fourth-largest lender controlled by Old Mutual Plc, is in talks with Imperial Holdings to buy 50% stake in smaller asset-based financing firm Imperial Bank that it does not own.

Imperial Bank was incorporated into Nedbank in 1996, with Imperial Holdings owning the remaining 49.9%. Under a 2001 shareholder pact, Nedbank provides funding and Imperial Holdings provides access to the bank’s South African clients. The bank has four divisions offering vehicle, property, medical and supplier asset finance.

South Africa’s four major banks have ample cash on hand than regulators need, and have not reported losses, even as the economy plunged into recession. Nedbank said in a statement that further announcements will be made in due course.

India c.bank says no to bank guarantees for bonds

MUMBAI, May 31 (Reuters) - India's central bank said it had asked banks not to provide guarantees or commitments for issues of bonds or debt instruments by companies.

Under existing rules, banks are only allowed to issue guarantees for loans taken out by corporates, it said.

"Guarantees by the banking system for a corporate bond or any debt instrument not only have significant systemic implications, but also impede the development of a genuine corporate debt market," the Reserve Bank of India said in a statement.

Earlier in May, top lender State Bank of India (SBI.BO) guaranteed a 42-billion-rupee bond issue by Tata Motors (TAMO.BO), boosting demand and helping it price the bonds competitively, despite the possibility of a ratings downgrade. 

SBI launches country’s first kiosk bank at Rajkot village

The State Bank of India (SBI) has recently launched kiosk banking service at Mahika village of Rajkot district.

According to an SBI release, chief general manager of Ahmedabad circle T C A Ranganathan launched the service at the village, which has a population of nearly 500.

“This initiative is the first of its kind in the country and is considered a revolution in the Indian banking history. Kiosk banking has brought banking facilities at the doorstep of families living in the remotest of villages. It is critical for achieving 100 per cent financial inclusion in its true spirit,” the release said.

The pilot launch was done by SBI Chairman O P Bhatt at the Vibrant Gujarat Global Investors’ Summit, 2009 earlier this year.

It was subsequently showcased at Haripura village in Surat, the release said, adding that now the commercial test has been launched simultaneously at 19 other centres in Gujarat.

Anglo Irish Bank Posts Massive Loss Of €4.1b

Dublin-based Anglo Irish Bank has reported a massive pre-tax loss of €4.1 billion for the six month period to 31 March 2009, driven by specific and collective lending impairment charges of €3.7 billion and €0.4 billion, respectively.

The quantity and quality of the Bank's customer and market funding has deteriorated resulting in an increased reliance on support from central banks. The total regulatory capital ratio at 31 March 2009 was 8.2%, including temporary discretions and derogations granted by the Irish Financial Regulator in advance of the Government's recapitalisation of the Bank. The marked deterioration in the banks asset quality over the last six months is a result of rapidly declining property values, particularly relating to land and development assets in Ireland, combined with the worsening economic environment in each of its core markets.

Mr. Donal O’Connor, Executive Chairman of Anglo Irish Bank said: “This has been a most difficult period for Anglo Irish Bank culminating in the reporting of a pre-tax loss of €4.1 billion. This is as a result of significant impairment charges on the Bank’s loan portfolio following continued deterioration in the economic environment in each of our core markets and further declines in property values.”

“Clearly the Bank made mistakes in some of the lending decisions taken in recent years, particularly in relation to property development in Ireland. Our rate of growth and risk appetite at the top of the economic cycle was imprudent and the stark evidence of this is seen in the figures announced today,” he added.

Describing the banks’ loss as the worst in the country’s banking history, Brian Lenihan, Finance Minister, said that the government, which nationalized the bank in January 2009, plans to deposit up to €4 billion into the bank subject to European Union regulatory approval. “It is important to remember that this is the first time we have put money into Anglo Irish Bank although we signalled our readiness to do so last December before the bank was nationalised," he said in a statement.

The Irish regulator has temporarily exempted the bank from some capital requirements.

Fortress To Enter Into Retail Banking

In a move that can establish a foothold in the US retail banking industry, Fortress Investment Group, a private equity and hedge fund company with $26.5 billion assets, is joining hands with other private equity investors, Crestview Partners and Lightyear Capital, to inject $800 million in fresh capital into First Southern, a Florida bank.

Of late, private equity firms have been exploring opportunities in the regulated banking world by rushing to purchase failed banks but regulatory restrictions and public criticism kept them away. However, the sale of Florida-based BankUnited and California-based IndyMac Bancorp to a consortium of private equity and hedge fund investors backed by Federal Deposit Insurance Corporation (FDIC), has given private equity players an indication that the government was open to this kind of deals.

However, compared to BankUnited and California-based IndyMac Bancorp, First Southern has a relatively strong balance sheet with about $400 million in assets, making it a good vehicle for banking acquisitions in the future.

The First Southern deal, although requires regulatory approval, does not involve any government support. FDIC is preparing guidelines for private equity firms regarding their role while investing in failed banks.

(source- Banking Business Review)

Antwerp banks agree on diamonds as collateral

Banks lending to Antwerp's indebted diamond traders will create up to 1 billion euros ($1.36 billion) in new credit vehicles by accepting diamonds as collateral, the Antwerp World Diamond Centre (AWDC) said on Tuesday.

The deal is meant to pump needed liquidity into Antwerp's $50-60 billion, debt-dependent trade, by getting banks to take diamonds, not just receivables, as lending insurance.

With little appetite to buy diamonds in the downturn, Antwerp's more than 1,800 registered diamond traders have been selling at losses, and sometimes have not been getting paid on time or at all, leaving them scarce collateral to borrow funds.

"Additional funds will benefit all stakeholders of the diamond sector -- diamond dealers, banks and mining companies -- and will restore the confidence in the diamond trade," said Freddy J. Hanard, Chief Executive of the AWDC in its statement.

Antwerp's import and export volumes of polished diamonds have plunged 32 percent and 28 percent, respectively, in January to April compared to 2008. Import and export volumes of rough diamonds have dropped 45 percent and 30 percent, respectively.

An AWDC official said the drops have been even more severe in other diamond markets.

Dutch state-controlled bank ABN Amro, the Antwerp Diamond Bank, the State Bank of India, the Bank of India and India's ICICI Bank were the main players signed on to the agreement.

Led by ABN Amro, they are the most important financiers of the Antwerp trade, which handles about 80 percent of all rough diamonds and more than half of all cut stones traded globally.

Under the deal announced on Tuesday, the banks will provide new credit facilities up to 1 billion euros, for a period of two years, in exchange for diamond stocks, not normally used as collateral in the industry.

"The AWDC will be in charge of the valuation for the securities and the transparency of the operation, so as to secure the position of the banks," the AWDC said.

The scheme must still be approved by Belgium's banking and finance regulator.

In addition, the Flemish regional government was considering a request for a temporary additional guarantee of 200 million euros.

New bank notes of Rs 1000

The Reserve Bank of India will shortly issue Rs 1000 denomination banknotes with `L' inset letter in both numbering panels in Mahatma Gandhi Series - 2005 bearing the signature of Dr D Subbarao, Governor, said RBI release issued here.
Except for the change in the inset letter, the design of these notes to be issued now is similar in all respects to the banknotes in Mahatma Gandhi Series -2005, with additional or new security features issued on October 21,2005.

All banknotes in the denomination of Rs 1000 in Mahatma Gandhi series issued by the Bank from the year 2000 will continue to be legal tender, it said.

Union Bank offers home loan at 8%, matches SBI’s rate

Public sector lender, Union Bank of India matched the special home loan rate of State Bank of India (SBI) by offering home loans at 8 per cent for all new loans up to Rs 50 lakh for the first year. Interest rates for existing home loan borrowers will remain unchanged. Maximum tenure of the loan will be for 20 years.


“As property prices have stabilised in the tier II and tier III cities, the demand is likely to pick up strongly in these pockets. So it is a good time to expand our portfolio now. The bank expects to disburse

Rs 1,500 crore of home loans under the new scheme. The bank home loan book is 8 per cent of its total advances at Rs 7,000 crore,” said TY Prabhu, executive director, Union Bank of India.

The special home loan scheme open up to September 30, 2009, will offer both floating and fixed rates of interest. For the first year, it will remain fixed and then revert to floating rates of interest which will be linked to the a retail benchmark rate referred to as floating reference Rate (FRR).

In February this year, SBI announced a happy home loan scheme with home loans at 8 per cent irrespective of the quantum of the loan, got an overwhelming response. About Rs 2,348 crore of home loans were dispersed under this scheme in the first two months of its launch in February and March.

SBI rates were closely matched by Canara Bank, which offered home loans at 8.25 per cent for the first year and 9.25 for the next four years and then fixed at 10 per cent for the remaining tenure of the loan.

Subsequently, PNB on April 30 announced a special home loan scheme of 9 per cent for all loans up to Rs 50 lakh for the first five years after which a reset clause will come into force.

Public sector banks have been aggressively reducing interest rates on its retail loans specially the home loans in a bid to grow their retail portfolio.

Since the credit offtake is dipping to less than 17 per cent as corporate demand for loans is yet to take off, banks are trying to expand capital by extending finance to retail customers.

SBI to push for mergers of associate banks

After merging State Bank of Saurashtra, India's largest lender State Bank of India might soon start the process of integrating its remaining associates, beginning with two large ones -- State Bank of Patiala and State Bank of Hyderabad.


According to the roadmap set by State Bank, all its associates will merge with the parent entity "as quickly as possible" to make SBI one of the top 25-30 banks in the world.

With the return of the Congress-led UPA to power, without the crutches of the Left and other difficult allies, SBI expects banking reforms to move forward, a top SBI source told PTI.
"The merger-process of State Bank of Saurashtra has already happened and the roadmap is to complete the consolidation process in the shortest possible period," the source said, adding that it could begin with State Bank of Patiala and State Bank of Hyderabad.

Once the new Government extends permission for mergers, the process could happen in the immediate future, the source said. "It will be more feasible now," the source said.

The Patiala and Hyderabad subsidiaries, which are wholly owned by the parent bank, had clocked impressive results in the last financial year. These two subsidiaries are quite large and SBH is now virtually of the size of Canara Bank.

(Economic Times)

RTGS transactions to become more bank customer friendly

The RTGS system implemented by the Reserve Bank has been in operation for more than four years. The system has also stabilised over the years and has been witnessing increased coverage in terms of bank branches and transaction volume.The volume of RTGS (Real Time Gross Settlement System ) transactions is increasing rapidly. RTGS settled 1.94 million transactions in the month of March 2009 as against 0.72 million transactions in March 2008. Customer transactions settling in RTGS presently constitute 89 percent of total RTGS transactions and are growing.


At a recent meeting with major banks, Reserve Bank of India reviewed the entire gamut of RTGS customer transactions with a view to making them more user friendly. Based on these discussions, the following decisions have been taken for implementation by RTGS member banks latest by June 01, 2009.

1. It is treiterated that in a Straight Through Processing (STP) environment, standardization is very much necessary and uniformity in message format is a pre requisite for the success of STP.

2. RTGS Customers have been complaining that there is no uniformity on information provided to the customer in the pass books / account statements by different banks. Some banks merely indicate `RTGS credit’ without details while other banks are giving sender's bank account number or UTR number of the transactions etc. Customer is receiving multiple RTGS credits on a given date, is at a loss to understand the source of funds leading to reconciliation issues.
RBI has therefore, advised that
a) A bank customer receiving RTGS credit shall be provided with the name of the remitter in his account statements / pass book.
b) A bank customer sending a RTGS remittance shall be provided with the name of the beneficiary in his account statements / pass book.
The banks are free to provide any additional information as they deem necessary / useful.

Security, Privacy, and Cost major barriers to mass adoption of mobile banking, says KPMG's US survey

April 8, 2009: U.S. consumers believe mobile banking is important but do no not want to pay for it and also are wary of using their mobile devices such as cell phones, smartphones, and personal digital assistants (PDAs) for financial transactions and online banking, according to results of a survey conducted by KPMG LLP, the audit, tax and advisory firm.
KPMG's third annual Global Consumers and Convergence survey of more than 4,000 people in 19 countries worldwide, which examines trends in the use of mobile technology, revealed that 85 percent of U.S. respondents believe mobile banking is important but they do not want to pay for it. The overwhelming majority of U.S. respondents said they had never tried banking through a mobile device (91 percent).

Of those respondents who have not conducted banking through a mobile device, 48 percent cited security and privacy as the primary reason.

"Mobile banking is another vehicle banks can utilize to make banking more accessible to customers," said Carl Carande, a principal in KPMG LLP's Advisory and Banking and Finance practices. "Consumers value banking services that make their lives simpler and more manageable and mobile banking affords this convenience, so banks that address concerns over security, privacy, and costs may be better able to retain existing customers and attract new ones."

Some 68 percent of U.S. respondents also said that their current bank does not offer banking through a mobile device and only nine percent said they had tried mobile banking.

"The fact that the majority of U.S. consumers are not aware that their current banks offer mobile banking is clearly more perception than reality," added Carande. "Banks will need to work harder to increase customer awareness of the availability of mobile banking and clearly articulate the value proposition of the service before consumers are willing to pay for it -- especially in this economic environment."

Despite the pricing, privacy, and security concerns, 19 percent of U.S. respondents said they are at least "somewhat likely" to use their mobile device for online banking in the next 12 months. In addition, seven percent said they are willing to pay at least a nominal fee to access online banking services from their mobile device.

19 co-operative banks in India go insolvent during 2008-09

The Reserve Bank's credit insurance arm has paid over Rs 142 crore to depositors of 19 cooperative banks that have gone bankrupt in 2008-09.During 2007-08, as many as 22 cooperative banks closed operations.


The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI, pays a maximum of Rs 1 lakh per depositor in case a bank goes insolvent.

The following is the list of 19 co-operative banks that went bust and claims on which were settled by Deposit Insurance and Credit Guarantee Corporation Claims during 2008-09:

Among the 19 failed cooperative banks, the highest amount of Rs45.41 crore was paid to depositors of Co-operative Bank Ltd, Gonda, UP; followed by The Maratha Co-operative Bank Ltd, Hubli, Karnataka (Rs17.75 crore); Parivartan Co-operative Bank Ltd, Mumbai, Maharashtra (Rs16.71 crore); Ravi Co-op Bank Ltd, Kolhapur, Maharashtra (Rs16.23 crore) and Indira Priyadarshini Mahila Nagarik Sahakari Bank Ltd, Raipur, Chhattisgarh (Rs13.17 crore).

The following is the list of co-operative banks that went burst and claims on which were settled by Deposit Insurance and Credit Guarantee Corporation claims during 2008-09:


1) District Co-operative Bank Ltd, Gonda, Uttar Pradesh (Rs 4,541.12 lakh);

2) The Maratha Co-operative Bank Ltd, Hubli, Karnataka (Rs 1,774.72 lakh);

3) Parivartan Co-operative Bank Ltd, Mumbai, Maharashtra (Rs 1,671.06 lakh);

4) Ravi Co-op Bank Ltd, Kolhapur, Maharashtra (Rs 1,623.20 lakh);

5) Indira Priyadarshini Mahila Nagarik Sahakari Bank Ltd, Raipur, Chhattisgarh

(Rs 1317.17 lakh);

6) Bharuch Nagarik Sahakari Bank Ltd, Bharuch, Gujarat (Rs 715.12 lakh);

7) Shree Janta Sahakari Bank Ltd, Radhanpur, Gujarat (Rs 464.23 lakh);

8) Indian Co-operative Development Bank Ltd, Meerut, UP (Rs 372.58 lakh);

9) The Challakere Urban Co-operative Bank Ltd,(under liquidation), Challakere, Karnataka (Rs 322 lakh);

10) The Harugeri Urban Co-op Bank Ltd, Harugeri, Karnataka (Rs 317.50 lakh);

11) Varada Co-op Bank Ltd, Karjagi, Dist, Haveri, Karnataka (Rs 239.64 lakh);

12) Talod Janta Sahakari Bank Limited, Talode, Gujarat (Rs 234.86 lakh);

13) Kittur Rani Channamma Mahila Pattana Sahakari Bank Ltd, Hubli, Karnataka

(Rs 227.67 lakh);

14) Ichalkaranji Jiveshwar Sahakari Bank Ltd, Ichalkaranji, Maharashtra (Rs 98.22 lakh);

15) Sarvodaya Mahila Co-operative Bank Ltd, Burhanpur, MP (Rs 76.95 lakh);

16) Chetak Urban co-operative bank Ltd, Parbhani, Maharashtra (Rs 68.55 lakh);

17) Nagaon Urban Co-operative bank Ltd. Nagaon, Assam, (Rs 61.31 lakh);

18) The Dakor Mahila Nagrik Sahakari Bank Ltd, Gujarat (Rs 52 lakh);

19) Basavakalyan Pattana Sahakari Bank Niyamitha, Basaganj, Karnataka

(Rs 24.96 lakh);

Mixed reactions from Banks, Economists, India Inc on RBI Annual Policy Statement for the Year 2009-10

Mixed reactions from Banks, Economists, India Inc on RBI Annual Policy Statement for the Year 2009-10


O P Bhatt, Chairman, State Bank of India: "It (the RBI rate cuts) is a very clear-cut signal that interest rates should ease."

K V Kamath, MD & CEO, ICICI Bank: Describing the RBI's stance as an "innovative and far- reaching policy Mr Kamath, said it would have a significant impact on spurring economic growth.

Yogesh Agarwal, CMD, IDBI Bank: The cut in policy rates by RBI was aimed at easing the liquidity situation, but the bank would watch the market conditions before revising its rate-structure.

M D Mallya, CMD, Bank of Baroda: RBI has given a strong signal that interest rates should ease. It is for individual banks to find out how they can balance their asset and liability position, he added. "There would be a downward bias on interest rates. We need to see several things... the cost of deposit has to decline," he said.

M S Sundararajan, CMD, Indian Bank: “It is a signal for softer interest rates and banks will also address correspondingly.”

Romesh Sobti, MD & CEO, IndusInd Bank: The cut in the Repo Rate is a facilitating nudge to the downtrend in lending rates as RBI remains concerned about the lag between cut in Policy Rates and lending rates of banks. The benefit will definitely will accrue to borrowers with a downward shift in rate structure

Rana Kapoor, MD & CEO, YES Bank: The RBI has hit the pause button after four months of persistent monetary easing since October 2008. Slowing growth remains a concern. "With limited headroom in further fiscal accomodation, the onus was largely on monetary policy measures to step up growth," Mr Kapoor said.

Chanda Kochhar, Joint MD, ICICI Bank: The proactive stance in the current environment is commendable and the continued support to systemic liquidity and lower interest rates is welcome. The policy also strikes a good balance between promoting growth and financial sector development and stability. Overall, the policy indicates development of a healthy financial sector and a stable macroeconomic environment, Kochhar said. The credit policy statement is a welcome articulation of a growth oriented policy stance, she added.

LATEST LENDING RATES

Union Bank of India reduced its Benchmark Prime Lending Rate (BPLR) by 50 basis points to 12 per cent from 12.5 per cent with effect from 1st April 2009.
Bank of Baroda cut its benchmark prime lending rate by 50 basis points to 12 per cent from 12.5 percent with effect from. 1st April 2009.

Bank of India has cut its prime lending rate by 50 basis points to 12 per cent from 12.5 percent with effect from 1st April 2009.
 
Punjab National Bank cut its PLR by 50 basis points from 12% to 11.50%. The reduced rates would come into effect from 1st February 2009.
Uco Bank cut its PLR by 50 basis points to 12.50 per cent from 13 per cent with effect from 1st March 2009.
Central Bank of India cut its lending rates by 0.75 per cent to 12.5 percent with effect from 12th January, 2009.
Canara Bank has taken an in-principle decision to cut its BPLR by 75 basis points to 12.5 per cent with effect from 1st January, 2009.
Corporation Bank cut its prime lending rate by 75 basis points to 12.50 percent from 13.25 percent, with effect from 1st January, 2009.

IDBI Bank has reduced its benchmark prime lending rate (BPLR) by 0.75 per cent to 13.50 per cent. The change takes effect from 8th November, 2008 .
Indian Overseas Bank cut its benchmark prime lending rate by 75 basis points to 13.25 percent, with effect from 6th November, 2008.

Syndicate Bank also revised its benchmark prime lending rate by 75 bps to 13.25% from 4th November 2008.
Oriental Bank of Commerce cut its benchmark prime lending rate by 75 basis points to 13.25 percent with effect from 6th November 2008.
Andhra Bank, reduced its benchmark prime lending rate (BPLR) by 0.75% to 13.25% with effect from 10th November, 2008.
United Bank of India also reduced its PLR by 50 bps to 13.50 per cent with effect from 10th November, 2008.
 
PRIVATE SECTOR BANKS


HDFC Bank has reduced its BPLR by 50 basis points to 16 per cent, effective 1st January 2009.

Yes Bank has reduced its prime lending rate by 0.50 per cent which accordingly stands reduced to 16.5 per cent from the earlier 17 per cent.

ICICI bank has cut its lending rates by 0.5 percentage point to 16.75 per cent from 17.25 per cent with effect from 31st December 2008.

OTHERS

Among foreign banks, Citibank lowered its benchmark lending rates by 50 bps to 15% with effect from 6th November, 2008.

Housing Development Finance Corporation (HDFC), the country's premier home loan provider reduced Retail Prime Lending Rate (RPLR) by 0.5 percentage point to 14 per cent from 14.5 per cent with effect from 25th March 2009.

Results of Banks in India-Third Quarter ended December 2008

Axis Bank




Net profit of Axis Bank rose 63.24% to Rs 500.86 crore in the quarter ended December 2008 as against Rs 306.83 crore during the previous quarter ended December 2007. Total operating income rose 65.61% to Rs 2984.77 crore in the quarter ended December 2008 as against Rs 1802.34 crore during the previous quarter ended December 2007. As on 26th February the stock closing price was Rs 346.50, and P/E was 7.8. The stock had 52 weeks High/Low of Rs 1040/343.



Allahabad Bank



Net profit of Allahabad Bank rose 1.21% to Rs 369.47 crore in the quarter ended December 2008 as against Rs 365.05 crore during the previous quarter ended December 2007. Total operating income rose 21.96% to Rs 1898.05 crore in the quarter ended December 2008 as against Rs 1556.23 crore during the previous quarter ended December 2007. As on 26th February the stock closing price was Rs 42.30, and P/E was 2.8. The stock had 52 weeks High/Low of Rs 112/42.



Andhra Bank



Net profit of Andhra Bank rose 33.68%.to Rs 212.58 crore in the quarter ended December 2008 as against Rs 212.58 crore during the previous quarter ended December 2007. The net NPA stood at Rs 86 crore, representing 0.21 per cent of net advances. The NII was higher by 22.09 per cent to Rs 451.87 crore as against Rs 370.13 crore last year. As on 26th February the stock closing price was Rs 43.90, and P/E was 3.7. The stock had 52 weeks High/Low of Rs 92/35.



Bank of India



Net profit of Bank of India rose 70.38% to Rs 872.17 crore in the quarter ended December 2008 as against Rs 511.89 crore during the previous quarter ended December 2007. Total operating income rose 37.83% to Rs 4343.17 crore in the quarter ended December 2008 as against Rs 3151.11 crore during the previous quarter ended December 2007. As on 26th February the stock closing price was Rs 220.80, and P/E was 3.9. The stock had 52 weeks High/Low of Rs 369/189.







Bank Of Baroda



Net profit of Bank of Baroda rose 41.38% to Rs 7,08.37 crore in the quarter ended December 2008 as against Rs 5,01.05 crore during the previous quarter ended December 2007. Interest earned for the quarter rose 36.83% to Rs 41,08.0 crore, while total income for the quarter rose 36.86% to Rs 49,54.49 crore, when compared with the prior year period.As on 26th February the stock closing price was Rs 212.25, and P/E was 4.4. The stock had 52 weeks High/Low of Rs 375/188.



Bank of Rajasthan



Net profit of Bank of Rajasthan rose 16.75% to Rs 49.21 crore in the quarter ended December 2008 as against Rs 42.15 crore during the previous quarter ended December 2007. Total operating income rose 42.01% to Rs 372.63 crore in the quarter ended December 2008 as against Rs 262.39 crore during the previous quarter ended December 2007. As on 26th February the stock closing price was Rs 36.70, and P/E was 4.4. The stock had 52 weeks High/Low of Rs 148/30.



Bank of Maharashtra



Net profit of Bank of Maharashtra rose 20.20% to Rs 1,20.66 crore in the quarter ended December 2008 as against Rs 1,00.38 crore during the previous quarter ended December 2007. Interest earned for the quarter rose 24.39% to Rs 11,265.80 million, while total income for the quarter rose 31.10% to Rs 12,926 million, when compared with the prior year period. As on 26th February the stock closing price was Rs 21.70, and P/E was 3.2. The stock had 52 weeks High/Low of Rs 60/21.

2008 Financial Services Outlook Delves Into Hot Banking Trends

In this environment of real-time and speed-to-market emphasis, IT budgets and strategies still are planned relatively far in advance. So there's added pressure on bank technology executives and the partners and solutions providers with which they work to anticipate and respond to sudden market changes and industry upheaval (you know, little things like credit crises and CEO turnover).

The risk is that IT investments can get sidetracked and customer- and growth-oriented initiatives become derailed. It's a tough balancing act, further complicated by CIOs' efforts to try to figure out how their plans compare not only with those of their peers and competitors within the banking industry, but also to the strategies of their counterparts in the securities/capital markets and insurance industries.



In an effort to rationalize the process, Bank Systems & Technology, along with its sibling brands in CMP Technology's Financial Technology Group, went to the experts across the financial services industry to create the 2008 Financial Services Outlook that appears in this issue. Our entire editorial team — BS&T's Nancy Feig and Maria Bruno-Britz; Anthony O'Donnell and Nathan Conz from Insurance & Technology; and Penny Crosman, Ivy Schmerken and Melanie Rodier from Wall Street & Technology — collaborated to report on what technologies and trends will be hot (and maybe not so hot) in financial services in 2008.



We polled a cross-section of industry executives to come up with a preview of IT spending priorities and delved into some of the technologies expected to have the most impact on the business in the coming year. The outlook also identifies several of the challenges different banking business segments are likely to face, as well as some of the executives, companies and industry players we think will be in the headlines in 2008.



One thing you don't need to be a psychic to figure out: There's going to be more scrutiny and demand for deliverables for any kind of technology initiative, whether it has to do with customer experience, mobile banking or risk management. To get a sense of how financial services companies are going to cope, read on.
 
Source: Banktech.com(author:Katherine Burger)

Inter Bank usage of ATMs becomes free

Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India. Charges levied on the customers vary from bank to bank and also vary according to the ATM network that is used for the transaction. Charges for using an ATM of another bank, generally discouraged the customer from using the ATMs of other banks.


From first day of April 2009, entire ATM network—numbering over 40,000 of the domestic banking industry is available to customers from any bank for transactions for no fee at all, irrespective of the banks in which they have their accounts, Now Customers will not be levied any fee on cash withdrawals using ATM and debit cards issued by other banks.

However, the bank whose ATMs are being used may not charge anything to the users who is a customer of another bank, but will be able to charge a fee to the banks which maintains the account of that customer. But the banking regulator, RBI is yet to inform anything to the banks in this regard.

Currently, less than half-a-dozen banks control 85% of the ATM network in India. For larger players the shift would mean higher revenues & ATM usage as customers would tend to use the nearest ATM.


(1) For use of own ATMs for any purpose -- Free
(2) For use of other bank ATMs for balance enquiries -- Free
(3) For use of other bank ATMs for cash withdrawals -- Free

Bad Credit House Loans

With a bad credit home loan, you can get the best option in loans in spite of a bad credit rating but just spending a little time in comparing what various lenders are offering. Bad credit home loans have become a good option for those who suffer from bad credit but want to refinance their mortgage or go in for a new home equity loan. Here's how it works: the mortgage loans themselves are structured in such a way that it helps these bad credit home loan borrowers to do a quick debt consolidation with affordable monthly payments. This generally does away with the need to produce a clean credit record.

Facts about Bad Credit Home Loans

You can get a bad credit home loan if you bear the following points in mind:

• Interest rate: with a bad credit home loan, your interest rates will be higher than if you had good credit. But there are lenders from whom you can get a low interest home loan. Shop around for a vendor that gives you the best rates.

• Loan fees: Here again, you have to look at many lenders before you find one that offers you the lowest loan fees since this amount can be sizeable.

• Type of loan: You need to know the amount of loan that will go up in a variable interest scenario. Variable interest always looks like its low in the long run, but you must look at what you will be paying back eventually.

• Low interest rates may just be offered for a specific time. Get the complete lowdown on your bad credit home loan before you can apply for it so that you get a good deal

Bad credit and Your Home Loan

It is great to have a good credit rating, simply because it matters so much at various stages in life. When you want to apply for a home loan, your creditor study your financial reports and payment history to know whether your payments have been regular, whether you have filed for bankruptcy and various other criteria before they decide to grant you the loan. And suppose they feel that your credit is not good enough for their usual terms, they may negotiate for a higher initial payment or a bigger interest rate for your bad credit home loan.

There is a choice between cash out refinancing where you can get a fresh mortgage on your existing one for extra cash, which can then be used to settle all those loans that charge you the highest interest. It is necessary to be cautious here and realize that by getting a loan against your home, you are actually allowing yourself to loosen your financial hold on your home. You can also go in for a second mortgage or a home equity loan when you are looking for a bad credit home loan. With your home as security, you receive the loan as a single amount with fixed interest rates. Home equity loans are useful to clear offunsecured personal loans like college fees, credit card overdue bills, auto loans etc. So the good news is you can get bad credit home loans even if your credit rating is not up to the desired mark.

Consolidate Your Student Loans

Personal loans are tricky - you never can quite make out whether it is absolutely necessary or if it is just a luxury you will be paying back for the next few years. That new computer, or that credit card outstanding, or the house refurnishing...the need for personal loans is never ending. We give you the best tips and knowledge on personal loans here; we also believe that you are better off knowing that there are other options out there - loan against property or car refinance spring to mind.

That done, you will find all you need to avail a personal loan in this section. How to apply for one, repayment options, charges applicable, documentation required, all these aspects are covered in this section.

A personal loan can make a real positive difference in your life. It can also make a real difference in your finances. Apnaloan.com gives you all the expertise we have so that you have the maximum of the former and the minimum of the latter.

The irony of the situation here is that every borrower seeks a loan with lowest interest rate whereas every lender with highest interest rate. Risk perception is different in case of different borrowers and ideally is determined from their credit history. Till now we noticed that banks had only their own experiences with customers to fall back on for their assessment. But this is changing now with the entry of agencies that assess the creditworthiness of people.

Need for credit score?

Credit score provides a speedy and objective way to assess risk. This way, financial institutions, lenders and banks can analyze a loan or a credit card application in a speedy manner without having to make complex calculations each time. Instead they have scales that ponder the applicant's standing with several predefined loan or card models and they define the product's variables by matching the rank to the models. Hence, they can easily state in a matter of minutes how much you can borrow, for how long and at which rate, etc.

Credit Score: What is it?

Credit Score comprises of factors like payment history (including any late payments or missed payments that will affect your score negatively), credit card balances (that will be taken into account when the loan amount is determined), bank accounts (including savings and checking accounts) and any other form of credit including all outstanding personal loans, mortgage loans, store cards, etc.

Credit score is simply a number, it is not standardized and each lender, financial institution, risk analyst, etc. can have its own. This number reflects a level of risk that defines whether it is advisable or not to lend money to someone and thus, how much interest should one charge in order to compensate for that risk. The number is created based on inputs from the credit report. Entries from past will be pondered and assigned a value, the summing or deductions of those points will define the credit score.

Even though there is no standardized model of scoring, usually there are many similarities between the models of lenders that deal with the same type of loans, a mortgage lender and a car lender will probably use different scoring models because the risks associated with these two transactions are significantly different.

Your credit score will fluctuate according to the inputs on your debt history that are reflected in the report. Each timely payment will be recorded as a positive input, while late payments or missed payments will impact negatively on the records thus reducing the score count. Though each lender will calculate the grade in different ways the source of information that they will use is the same and thus, one should manage to keep credit report clean, then grade will surely remain in a good stance regardless of the lender.

Some banks give 100 per cent finance on car loans. The truth is that this interest rate is only available to people with perfect credit score. Most people with average to low credit score will have to pay higher interest rates.

Which agency is doing this job of maintaining your credit score?

Now lending banks can source your credit score from Credit Information Bureau (India) Limited (CIBIL), to supplement the information you furnish in your loan application.

Say if you default on a loan from one bank, it will bring down the credit score, which any other bank that you go to will also be privy to. It will determine not only whether you can get a loan, but also the rate of interest you pay on it. So it is important to learn how to keep the credit score high.

Nevertheless, always watch credit score closely and avoid damaging credit history with late or missing payments, too many outstanding loans and too many loan requests. Credit score is the indication of financial health and even when sometimes it can't get a better credit score, if it drops too much the application could be declined.

Both federal student loan consolidation and private student loan consolidation offer the benefit of a significantly lower monthly payment and simplified finances. If you want to consolidate student loans, begin with your federal Stafford, Parent PLUS, Perkins, and all Federal FFELP andFederal Direct Loans that were taken out for your education. Private student loan consolidation is a separate program that allows you to refinance all non-federal, education related debt.

Even if you can make the monthly payments from your original school loans, you may still want to consider consolidating to lower your payments and free up money for bills with higher interest rates. These include credit cards and personal loans, neither of which have tax-deductible interest.

Borrowers Currently Enrolled in school can no longer Consolidate Their Loans

The Higher Education Reconciliation Act of 2005 eliminated the provision that allowed a FFEL or Direct Loan borrower who is enrolled in school on at least a half-time basis to request to enter repayment early on his or her Stafford Loans if the lender approves. Repayment is now defined as not beginning until 6 months and one day after the date the student ceases to carry at least one-half the normal full- time academic workload, as determined by the school. Therefore, a FFEL or Direct Loan borrower who is still enrolled in school at least half-time may no longer request to enter repayment early to apply for a FFEL or Direct Consolidation Loan.

To apply for a Direct Loan Consolidation or an FFEL Consolidation the borrower must contact the lender and complete an application.  Most lenders provide borrowers with the ability to apply on-line or request an application over the telephone.  Once an application is completed and submitted, the lender will request information from the borrower’s other lenders or from its own system to determine the amounts outstanding on the borrowers loans.  The borrower will then receive notification about the consolidation loan, normal consumer disclosures, the amount owed, and if appropriate, where to make payments.

FFEL Consolidation Loan Weighted Average Interest Rate

Consolidation loans have fixed interest rates that are based on the weighted average of the interest rates on the loans being consolidated. A lender can provide a new consolidation loan borrower with the lowest statutory weighted average interest rate for loans by using the lower of the weighted average of the interest rates on the loans being consolidated as of July 1 or the date the lender received the borrower's consolidation loan application. The lender should apply a consistent method of determining when an application is received.

Most federal education loans are eligible for consolidation, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. PLUS Loan borrowers (parent and graduate/professional degree students) can also consolidate their loans. Private education loans are not eligible for consolidation.