Coir Board has launches a scheme in Kerala with the cooperation of banks. Through scheme named as REMOT Scheme (Rejuvenation, Modernization and Technology Upgradation Scheme) two categories viz – spinning category and household category will be benefited.
The Memorandum of Understanding has been signed on implementation of REMOT Scheme of Coir Board. On behalf of Coir Board, Government of India MoU was signed by M Kumararaja, and by K Neelakandhan, Assistant General Manager (SME), SBI.
The MoU was signed and exchanged in the presence of A.C.Jose, Chairman, and Coir Board.
On this occasion Jose said, “This is the first time in the history of Coir Board that such a novel Scheme with maximum out lay is implemented in the Coir sector for the benefit of workers in the spinning as well as products sector”.
Jose added Coir Board is implementing a novel Coir centric Scheme to benefit the working class in the Coir sector in the XIth plan.
While the State Bank of India (SBI) has expressed its willingness of full cooperation to Coir Board for the implementation REMOT Scheme and to consider/disbursal of term loan in Kerala as outlined in the Scheme.
Under the scheme any individual, self-help group or a group of persons who want to engage themselves in the coir spinning activity or are already in the coir spinning activity are eligible for the benefit.
The total cost of the Scheme is Rs. 243 crore. The expenditure comprises of Central Government subsidy of Rs.99 crores.
The unit cost for a spinning unit has been worked out at Rs.2.00 lakhs. The beneficiary contribution, either in his individual capacity or in his collective capacity, will be about Rs.10000. The rest of the grant amount of Rs.80000 will be deposited by the Board in the Bank.
The bank will be providing Rs.1, 10,000 as term loan to the unit at a lower interest rate. The term loan obtained from the bank will have a time period of five years from the date of sanction.
Likewise, for the small household sector, the unit cost ceiling has been fixed at Rs.5.00 lakhs. The beneficiary will have to contribute about Rs.25, 000. The Bank will provide Rs. 2,75,000 as term loan with attractive interest which will have set time period of 5 years. The Board will be depositing the grant portion of Rs.2,00,000 with the Bank.
Tuesday, July 29, 2008
Monday, July 28, 2008
State Bank of Saurashtra merger bill passed by Union Cabinet
Finally the State Bank of Saurashtra merger bill has got the approval from Union Cabinet. The State Bank of Saurashtra will be merging with the State Bank of India to enable it to increase in terms of footprint, manpower and other resources.
According to sources the merger will enable the bank to become efficient for facing competition arising from globalization of the economy, along with better management of risk.
The Union Cabinet gave approval to the following proposals for the merger:
1. Issuing of order sanctioning the Scheme of Acquisition of State Bank of Saurashtra by the State Bank of India, in terms of section 35(2) of the State Bank of India Act, 1955
2. to introduce Bill (a) repealing the State Bank of Saurashtra Act, 1950 in the Parliament, (b) to make important amendments in the State Bank of India (Subsidiary Banks) Act, 1959 to remove references to State Bank of Saurashtra wherever it occurs in the State Bank of India (Subsidiary) Banks Act, 1959.
The bill passed by the Union Cabinet will be called namely State Bank of India (Subsidiary Banks) Amendment Bill, 2008.
According to sources the merger will enable the bank to become efficient for facing competition arising from globalization of the economy, along with better management of risk.
The Union Cabinet gave approval to the following proposals for the merger:
1. Issuing of order sanctioning the Scheme of Acquisition of State Bank of Saurashtra by the State Bank of India, in terms of section 35(2) of the State Bank of India Act, 1955
2. to introduce Bill (a) repealing the State Bank of Saurashtra Act, 1950 in the Parliament, (b) to make important amendments in the State Bank of India (Subsidiary Banks) Act, 1959 to remove references to State Bank of Saurashtra wherever it occurs in the State Bank of India (Subsidiary) Banks Act, 1959.
The bill passed by the Union Cabinet will be called namely State Bank of India (Subsidiary Banks) Amendment Bill, 2008.
Thursday, July 24, 2008
SBI will hire 3,000 marketing and recovery officers
The country's biggest lender, State Bank of India (SBI), will be hiring 3,000 marketing and recovery officers. The lender is carrying out recruitment drive for the second time in less than a year in the midst of the displeasure expressed by the regulators and the judiciary on the high-handedness of agents hired by banks to recover loans.
Looking for the applications by August 16, SBI sources said the position of officer (marketing and recovery) for its rural operations will have a contract period of two years. Earlier in October 2007, SBI had announced plans to hire 3,000 marketing and recovery officers whose job profile would include "soft recovery" of loans.
In addition, these officers will be responsible for marketing of bank’s products, conduct pre-sanctioned survey, file applications and verify the documents. At present it is not clear about the emoluments being offered in the latest hiring drive, whereas in its October announcement the bank had said these officers will be given a compensation package of Rs 2 lakh per annum.
As per SBI's latest annual report, the bank had a total 1,79,205 employees as on March 31, 2008, making it the biggest employer in the country's banking space.
Looking for the applications by August 16, SBI sources said the position of officer (marketing and recovery) for its rural operations will have a contract period of two years. Earlier in October 2007, SBI had announced plans to hire 3,000 marketing and recovery officers whose job profile would include "soft recovery" of loans.
In addition, these officers will be responsible for marketing of bank’s products, conduct pre-sanctioned survey, file applications and verify the documents. At present it is not clear about the emoluments being offered in the latest hiring drive, whereas in its October announcement the bank had said these officers will be given a compensation package of Rs 2 lakh per annum.
As per SBI's latest annual report, the bank had a total 1,79,205 employees as on March 31, 2008, making it the biggest employer in the country's banking space.
Wednesday, July 23, 2008
SBI and its associate bank customers get cash back offer on debit card
Country’s largest bank State Bank of India launched a ‘Cash Back’ offer for its Debit card holders through out the country. The scheme has been launched from 1st July to 31st August 2008. During the campaign period customers of State Bank of India and its Associate bank customers who use their debit cards for making payments for Rs 501/- or above will be eligible to get cash back up to 5% as under.
Bank sources clarified the cash back scheme is not applicable on ATM withdrawals and Internet transactions and the amount will be credited to customers' accounts within 4-6 weeks of the end of the campaign. The maximum amount limit of cash back during the period of offer will be Rs.1000/- per debit card.
State Bank Group is largest debit card issuer in the country having more than 37 million Debit Card holders across the country, who have access to more than 8500 ATMs of the Bank and about 9000 additional ATMs of 13 other banks under bilateral sharing arrangements.
In addition to cash withdrawals and other utilities like fund transfer, donations, mobile top up, payment of fees, etc., State Bank customers gets the facility to use their debit cards to pay for purchases, restaurant bills, hotel bills, airline tickets, etc. Using Debit Cards for payment for goods and services is more convenient than writing cheques and safer than carrying cash. In credit card people tend to spend more but in case of debit cards users have greater control over their expenses with no chance of overspending. On debit card there is no chance of penalty and interest charges for late payment.
Bank sources clarified the cash back scheme is not applicable on ATM withdrawals and Internet transactions and the amount will be credited to customers' accounts within 4-6 weeks of the end of the campaign. The maximum amount limit of cash back during the period of offer will be Rs.1000/- per debit card.
State Bank Group is largest debit card issuer in the country having more than 37 million Debit Card holders across the country, who have access to more than 8500 ATMs of the Bank and about 9000 additional ATMs of 13 other banks under bilateral sharing arrangements.
In addition to cash withdrawals and other utilities like fund transfer, donations, mobile top up, payment of fees, etc., State Bank customers gets the facility to use their debit cards to pay for purchases, restaurant bills, hotel bills, airline tickets, etc. Using Debit Cards for payment for goods and services is more convenient than writing cheques and safer than carrying cash. In credit card people tend to spend more but in case of debit cards users have greater control over their expenses with no chance of overspending. On debit card there is no chance of penalty and interest charges for late payment.
SBI’s first quarter report shows recovery of Rs 2,000-cr bad loan
State Bank of India (SBI) in its first quarter results is likely to report on improvement in its asset quality. As per reports from SBI top sources bank has been able to recover bad loans worth around Rs 2,000 crore during April-June 2008.
Though top SBI executives, refused comment on this. SBI managing director SK Bhattacharyya said: “We can’t divulge details before the first quarter results announcement.”
During 2007-08 SBI’s credit quality had declined, since it had booked fresh bad loans worth Rs 2,700 crore, mainly on account of retail loans, and to some extent, mid-sized corporate loans. As per data, on March 31, 2008, the bank had gross non-performing assets (NPAs) of Rs 12,837 crore as compared with Rs 9,998 crore, a year back.
“On the other hand, the bank is slated to make a provision of around Rs 1,000 crore against mark-to-market (MTM) losses of its investment,” an SBI official said on conditions of anonymity. Official told that out of the available sum, around Rs 700 crore is expected to be provided for against depreciation of bonds the bank received from the government on account of its rights issue.
During April- June 2008 banks booked MTM losses against depreciation of bonds and equity investments. However, it is expected that SBI might click double-digit growth in the first quarter to June 30, 2008 over the corresponding period a year back in spite of the fact that the demands for loans from sectors like commercial real estate and auto has slowed down.
If we look at SBI’s bad loan management, it being said that government’s debt waiver-cum relief scheme will help SBI reduce its bad loans by another Rs 2,000 crore. SBI has waived off over dues of around 25 lakh farmers, aggregating about Rs 7,000 crore. According to SBI inside sources, “It’s estimated that around 30% of the total waived sum had become NPAs”. While as on March 3, 2008 gross NPA stood at 3.04% and the net NPA stood at 1.78%.
Though top SBI executives, refused comment on this. SBI managing director SK Bhattacharyya said: “We can’t divulge details before the first quarter results announcement.”
During 2007-08 SBI’s credit quality had declined, since it had booked fresh bad loans worth Rs 2,700 crore, mainly on account of retail loans, and to some extent, mid-sized corporate loans. As per data, on March 31, 2008, the bank had gross non-performing assets (NPAs) of Rs 12,837 crore as compared with Rs 9,998 crore, a year back.
“On the other hand, the bank is slated to make a provision of around Rs 1,000 crore against mark-to-market (MTM) losses of its investment,” an SBI official said on conditions of anonymity. Official told that out of the available sum, around Rs 700 crore is expected to be provided for against depreciation of bonds the bank received from the government on account of its rights issue.
During April- June 2008 banks booked MTM losses against depreciation of bonds and equity investments. However, it is expected that SBI might click double-digit growth in the first quarter to June 30, 2008 over the corresponding period a year back in spite of the fact that the demands for loans from sectors like commercial real estate and auto has slowed down.
If we look at SBI’s bad loan management, it being said that government’s debt waiver-cum relief scheme will help SBI reduce its bad loans by another Rs 2,000 crore. SBI has waived off over dues of around 25 lakh farmers, aggregating about Rs 7,000 crore. According to SBI inside sources, “It’s estimated that around 30% of the total waived sum had become NPAs”. While as on March 3, 2008 gross NPA stood at 3.04% and the net NPA stood at 1.78%.
Friday, July 18, 2008
SBI Life to launch its individual health insurance plan
SBI Life Insurance Company is a joint venture between BNP Paribas Assurance and the State Bank of India. The company is planning to launch its first individual health insurance plan next month.
U.S. Roy, managing director and CEO, SBI Life Insurance Company informed, “We got the approval of the insurance regulator for the product last month and at present we are upgrading our information technology system for this product. Hopefully, we’ll launch our first standalone health insurance plan in August.”
Foreseeing big business in health insurance, the well established insurance companies like Life Insurance Corporation of India, Bajaj Allianz Life Insurance, Reliance Life Insurance and Tata AIG Life Insurance have already launched their individual plans besides offering critical-illness riders.
Similar to the other life insurers, SBI Life’s health insurance scheme will also have a defined benefit plan where the policy-holder will be given a predetermined sum in the case of hospitalization.
Only Bajaj Allianz has recently introduced a family floater insurance plan under which the hospitalization bills will be reimbursed subject to the sum assured — similar to the mediclaim policies of the general insurance companies.
In 2007-08, SBI Life earned a total premium income of Rs 5,622 crore, of which income from new policy sales was Rs 4,800 crore. “Our net profit for the year stood at Rs 34 crore compared with Rs 3.5 crore in 2006-07 and Rs 2.02 crore in 2005-06,” Roy said. The life insurer showed a growth in net profit for the third year in a row. It was integrated in March 2001.
“We have shown more than 100 per cent growth in business during the first quarter of the current fiscal. However, since we provide mark-to-market provisioning for our investments as a prudential practice, though it is not required for long-term investments such as life insurance. Our growth in profitability will not be much given the turmoil in both stock prices and interest rates,” Roy said.
In the first quarter of 2007-08 SBI Life earned a premium income of Rs 426 crore from new business. Between April and June this year, the insurer is expecting a first year premium income of between Rs 800 crore and Rs 900 crore.
Roy said, “For the current financial year, our target is to achieve a total premium income of Rs 10,500 crore and a first year premium income of Rs 8,500 crore”. The SBI Life ranks second in terms of market share among private life insurers in the country.
U.S. Roy, managing director and CEO, SBI Life Insurance Company informed, “We got the approval of the insurance regulator for the product last month and at present we are upgrading our information technology system for this product. Hopefully, we’ll launch our first standalone health insurance plan in August.”
Foreseeing big business in health insurance, the well established insurance companies like Life Insurance Corporation of India, Bajaj Allianz Life Insurance, Reliance Life Insurance and Tata AIG Life Insurance have already launched their individual plans besides offering critical-illness riders.
Similar to the other life insurers, SBI Life’s health insurance scheme will also have a defined benefit plan where the policy-holder will be given a predetermined sum in the case of hospitalization.
Only Bajaj Allianz has recently introduced a family floater insurance plan under which the hospitalization bills will be reimbursed subject to the sum assured — similar to the mediclaim policies of the general insurance companies.
In 2007-08, SBI Life earned a total premium income of Rs 5,622 crore, of which income from new policy sales was Rs 4,800 crore. “Our net profit for the year stood at Rs 34 crore compared with Rs 3.5 crore in 2006-07 and Rs 2.02 crore in 2005-06,” Roy said. The life insurer showed a growth in net profit for the third year in a row. It was integrated in March 2001.
“We have shown more than 100 per cent growth in business during the first quarter of the current fiscal. However, since we provide mark-to-market provisioning for our investments as a prudential practice, though it is not required for long-term investments such as life insurance. Our growth in profitability will not be much given the turmoil in both stock prices and interest rates,” Roy said.
In the first quarter of 2007-08 SBI Life earned a premium income of Rs 426 crore from new business. Between April and June this year, the insurer is expecting a first year premium income of between Rs 800 crore and Rs 900 crore.
Roy said, “For the current financial year, our target is to achieve a total premium income of Rs 10,500 crore and a first year premium income of Rs 8,500 crore”. The SBI Life ranks second in terms of market share among private life insurers in the country.
Wednesday, July 16, 2008
SBI plans to start film ticket vending through its ATMs
Country’s largest public sector bank the State Bank of India (SBI) senior official informed on an experimental basis is planning to start film ticket vending through its automatic teller machines (ATMs) in Uttar Pradesh.
Chief General Manager Shiv Kumar said SBI is having talks with technical service providers and multiplexes in some of the major urban centers in the state in this regard.
Kumar informed media, "We are looking at the feasibility of the plan but are confident we will be the first bank to offer this service".
He added, "Considering our large network of ATMs, our customers will have the option to buy film tickets from anywhere, without worrying about the long queues at cinema hall counters."
Chief General Manager Shiv Kumar said SBI is having talks with technical service providers and multiplexes in some of the major urban centers in the state in this regard.
Kumar informed media, "We are looking at the feasibility of the plan but are confident we will be the first bank to offer this service".
He added, "Considering our large network of ATMs, our customers will have the option to buy film tickets from anywhere, without worrying about the long queues at cinema hall counters."
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