SBI opens exclusive branch for corporate salary accounts in Hyderabad

Country’s largest lender the State Bank of India (SBI) is on the move to target special class of the society. Two weeks ago the bank had opened a special branch for high networth individuals, this week on Monday bank launched an exclusive branch for corporate salary accounts at the DLF Cyber Centre at Gachibowli in Hyderabad.

Through this, the bank aims to target mainly the IT and engineering companies which are concentrated around Gachibowli. At this branch full range of services will be available including deposit, loan, insurance, mutual funds and Internet banking.

The branch was inaugurated by Shiva Kumar, chief general manager of SBI (Hyderabad circle), on the occasion he said, bank is expecting to open net 3,000 to 4,000 accounts by March 2011.

He added, “As the DLF premises get occupied to its 16,000-person capacity, the branch will have the first mover advantage in gaining their accounts. We will also consider extending our working hours to suit the 24-hour schedules of the IT industry.”

This branche will offer corporate salary account package in four variants including anywhere banking, zero minimum balance, free Internet banking as well as concessions on interest and processing fee on loans, and on remittance and maintenance charges on demat and eZ trade accounts.

Kumar told at present seven employees have been positioned in the branch, gradually number of employees will be increased, and, added more such branches might be opened in other parts of the state.

The branch also has a Finmart lounge where customers can comfortable sit and discuss products besides carrying out their routine transactions. Other services to be offered at branch include financial planning, advisory services and financial wellness camps.

The other facilities to be provided of particular interest of the targeted class customers will include e-tax, demat and online trading, and e-Invest for ASBA (Application Supported by Blocked Amounts) facility, where an IPO applicant’s account doesn’t get debited until shares are allotted to him.

SBI opens branches at kirana stores

State Bank of India (SBI), country’s largest lender is offering banking services through kiosks branches set up at kirana stores. At these branches you can open an account, deposit cash, withdraw or transfer money and will get a ‘pakka’ receipt for it.

SBI is offering this service in partnership with pre-paid services provider Oxigen Services - a bill payment, mobile recharge and ticketing systems provider.

The bank has opened the first 50 kiosks in Mumbai, including one in Dharavi and will be opening around 1,000 more in the city and another 870 across the state.

According to bank sources 30 kiosks branches have also been opened in Delhi. In Bihar and UP kiosks will start operation by October 2010.

Soon other banks will start offering such service.

The SBI kiosk will offer banking services in six languages.

To open an account at the selected kirana stores a person need to carry a photo ID and address proof. The account will be a no-frills account, where to maintain a minimum balance is not mandatory. The shopkeeper will take a photo of the person using a webcam and also fingerprints with a biometric device.

Pramod Saxena, managing director and chairman at Oxigen said, “The know-your-customer verification process is diluted here; the regular KYC is so stringent that daily wage earners and migrants get excluded from banking facilities.”

If a person who wants to open an account does not have an address proof, then he can get a letter from the mukhiya of his native place or letter from employer stating the place of stay, will serve as address proof. No personal verification will be done as done for a regular bank account and the fingerprints will serve as the main identification.

At a regular SBI bank branch the cost of opening an account comes to Rs400 but at these kiosks branches the cost will be as low as Rs20.

The limit of deposit of cash or withdrawal at these kiosks is up to Rs 10,000 per day, while the total balance in any account can not cross Rs 50,000 at any given point.

There will be no charges for cash deposit but for withdrawal you will have to pay Rs 25 per transaction if it is done at kiosks other than one where you have opened an account.

The money can be transferred from kirana account to the regular SBI account, but you cannot access kirana account through a bank branch.

At present the SBI bank customers having regular savings account cannot access banking through kirana stores.

Gradually micro loans, insurance and remittance will be offered to these account holders.

Riten Ghose, general manager, Mumbai at SBI said, “Through the Dharavi microfinance branch we will be financing Rs50 crore by March 2011.”

Soon other banks follow the path and more kirana stores start offering banking services.

An Oxigen official pointed out, “Other banks, private included have been approaching us. But at least for the next couple of months we do not want to sign on any other bank.”

However Oxigen is offering other services such as bill payments, railway ticket booking, mobile recharge and DTH payments through 20,000 web kiosks and, now banking service has been added to the same network.

State Bank of Patiala opens seven branches in different districts of Punjab

State Bank of Patiala, a public sector lender headquartered in Patiala has opened seven brick and mortar branches in its Bathinda and Jalandhar zones with an aim to provide banking facility to the rural people of Punjab. The new branches have been opened in the districts of Ludhiana, Jalandhar, Hoshiarpur and Amritsar.

Bank managing director Ashok Nayar, told, bank is planning to open 20 branches in the identified villages which will be covered under the financial inclusion drive. Out of these, 11 branches will be opened in Punjab and nine in other states of India. The branches to be opened in the villages under financial inclusion program are provided by the lead bank under the guidelines of Reserve Bank of India.

Through these branches bank will be providing loan and banking facilities to the rural people. The bank is proposed to cover 500 villages during the current year under Financial Inclusion, out of which these 263 villages will be of Punjab. In rest of the villages bank will provide services through business correspondents.

Banks has done all the arrangements for this and the services will be rolled out in the next month. By 30th September, 2010 bank is likely to cover over 150 villages under the financial inclusion program.

According to RBI directives, any village with a population of over 2000 households has to be covered under financial inclusion.

Nayar emphasized that loan should be used for productive purpose also the repayment should be done timely as it will help in recycling the money which is a must for the growth of the economy and the nation. He said people should avail facility of free counseling available at the Financial Literacy and Credit Counseling cell known as Lead Bank opened at Mini Secretariat Bhatinda. The FLCC is providing counseling on responsible borrowing, banking terminologies and restructuring of irregular loans.