More and more customers are opting for mobile banking facility. According to banks data in the last two months there have been increase in the number of customers registering for mobile banking facility. The main reason behind this increase is a steep rise in small-value transactions.
A senior SBI official informed that in the last two months more than 20,000 customers have opted for mobile banking and in the future more are expected to add.
The official told press, "Both customers and bank branches have realized the immense potential of this service, especially when it comes to small value transactions. We have seen more number of customers availing this service in the July-August period."
As on date around 33,000 clients have registered for mobile banking with SBI as against 10,000 in May this year.
Wednesday, September 2, 2009
Thursday, August 13, 2009
SBI announce fresh offers in the housing finance segment
The State Bank of India announced fresh volley in the housing finance segment in which it has capped the interest rate at 8 per cent for five years loans of up to Rs 5 lakh.
The bank stated it will offer loans up to Rs 50 lakh at 8 per cent for the first year and 8.5 per cent in the second and third years. Recently SBI has become aggressive in the highly competitive home loan market, which was earlier dominated by HDFC.
Currently HDFC is offering home loans up to Rs 15 lakh at an interest rate of 8.75 per cent. For loans between Rs 15 lakh and Rs 30 lakh and that above Rs 30 lakh, bank is offering 9% and 9.50% for 20-year tenure respectively.
Currently SBI’s home loan offers are the cheapest one in the market.
Earlier in February SBI announcement had astonished the market when it capped the interest rate on all home loans at 8% in the first year. It made the offer more attractive in June when it set a Rs 30 lakh cap for its Easy Home Loan Scheme, under which it fixed interest rates at 8% in the first year and 9% in the second and third years.
Latest SBI has announced a three-month long “SBI My Home Campaign” from August 8 to make easy for home buyers during the forthcoming festival season. The bank stated no processing fees will be charged on home loans.
Thus the individuals can take loan up to Rs 5 lakh under SBI Hi-Five Home Loan at an interest rate of 8% for a period of five years. Therefore the customer gets an option to choose between floating rate of 2.75 per cent below the State Bank Advance Rate (SBAR) and a fixed rate of 1.25 per cent below the SBAR for a further loan term of five years. However the SBAR is the bank’s benchmark rate and stands at 12.25 per cent.
The borrowers who take home loans up to Rs 50 lakh will get an option that at the end of three years they can choose between a floating rate of 2.75 per cent below the SBAR and a fixed rate of 1.25 per cent below the SBAR. But the tenure for these loans can stretch up to 25 years.
P. Nandkumaran, general manager, retail loans at the SBI, in an interview told The Telegraph that in the second scheme the effective interest rate of around 8.71 per cent will be charged for the entire tenure of the loan.
He added, “No bank now offers that kind of rate and if we were to minus the processing charges, the effective rate will come down further by another 10 basis points”.
Nandkumaran informed that home loan sanctions have jumped to Rs 2,100 crore a month from Rs 1,500 crore since its offer of 8 per cent interest rate scheme. He said, “We expect a much better response from this scheme”.
According to analysts although the SBI home loan segment has seen rise in the share over the past six months, but HDFC still continues to be the leader. At present SBI’s market share in the home loan market stands to be a little over 20 per cent. Though the current figures of the country’s largest home loan financier HDFC is not known but the corporation, during the fiscal year ended March 31 had market share of 40%.
The bank stated it will offer loans up to Rs 50 lakh at 8 per cent for the first year and 8.5 per cent in the second and third years. Recently SBI has become aggressive in the highly competitive home loan market, which was earlier dominated by HDFC.
Currently HDFC is offering home loans up to Rs 15 lakh at an interest rate of 8.75 per cent. For loans between Rs 15 lakh and Rs 30 lakh and that above Rs 30 lakh, bank is offering 9% and 9.50% for 20-year tenure respectively.
Currently SBI’s home loan offers are the cheapest one in the market.
Earlier in February SBI announcement had astonished the market when it capped the interest rate on all home loans at 8% in the first year. It made the offer more attractive in June when it set a Rs 30 lakh cap for its Easy Home Loan Scheme, under which it fixed interest rates at 8% in the first year and 9% in the second and third years.
Latest SBI has announced a three-month long “SBI My Home Campaign” from August 8 to make easy for home buyers during the forthcoming festival season. The bank stated no processing fees will be charged on home loans.
Thus the individuals can take loan up to Rs 5 lakh under SBI Hi-Five Home Loan at an interest rate of 8% for a period of five years. Therefore the customer gets an option to choose between floating rate of 2.75 per cent below the State Bank Advance Rate (SBAR) and a fixed rate of 1.25 per cent below the SBAR for a further loan term of five years. However the SBAR is the bank’s benchmark rate and stands at 12.25 per cent.
The borrowers who take home loans up to Rs 50 lakh will get an option that at the end of three years they can choose between a floating rate of 2.75 per cent below the SBAR and a fixed rate of 1.25 per cent below the SBAR. But the tenure for these loans can stretch up to 25 years.
P. Nandkumaran, general manager, retail loans at the SBI, in an interview told The Telegraph that in the second scheme the effective interest rate of around 8.71 per cent will be charged for the entire tenure of the loan.
He added, “No bank now offers that kind of rate and if we were to minus the processing charges, the effective rate will come down further by another 10 basis points”.
Nandkumaran informed that home loan sanctions have jumped to Rs 2,100 crore a month from Rs 1,500 crore since its offer of 8 per cent interest rate scheme. He said, “We expect a much better response from this scheme”.
According to analysts although the SBI home loan segment has seen rise in the share over the past six months, but HDFC still continues to be the leader. At present SBI’s market share in the home loan market stands to be a little over 20 per cent. Though the current figures of the country’s largest home loan financier HDFC is not known but the corporation, during the fiscal year ended March 31 had market share of 40%.
Thursday, August 6, 2009
SBI auto, home loans registered growth of 22% by June end
State Bank of India, during the last one year has witnessed a considerable increase in its retail loan portfolio. Between July 2008 and June 2009 the total retail advances increased by 22.52 per cent which amounted to Rs 112,862 crore.
There has been fastest growth on a year-on-year basis in the education loan segment among the various retail loan portfolios, while auto loans increased by 29.05 per cent and home loan registered a growth of 24.00 per cent on a year-on-year basis.
Bank education loan portfolio registered a growth of Rs 7,162 crore by the end of 2009 as against Rs 5,099 crore in the same period previous year which means a 40% increase in the portfolio.
In India SBI is the largest education loan provider and by the end of March 2009, it had approximately disbursed 24% of the total education loan distributed by all public sector banks put together.
The figures were made public in quarterly report of the bank released on Thursday.
In case of auto loan portfolio by June 30, 2009 the bank had distributed loans amounting to Rs 10,399 crore as against total auto loans of Rs 8,059 crore in the previous year, thus attaining the growth of 29.05 per cent, the highest among all banks.
To increase its market share in the auto loan portfolio SBI this year had launched a special auto loan scheme called SBI Ezee car loans, under which the bank offered 8% per interest for the first year.
While the home loan portfolio registered a growth of 24.00 per cent on a year-on-year basis. The bank by June 30, 2009 had distributed home loan amounting to Rs 57,513 crore as comparison to Rs 46,370 crore previous year.
Earlier this year SBI had introduced a special home loan scheme under which it offered loans at 8% in the first year.
Thus SBI maintains that it has been the fastest growing home loan provider during the first quarter of the present financial year.
Personal loans also come under retail loans but bank did not provide separate figures for this segment.
There has been fastest growth on a year-on-year basis in the education loan segment among the various retail loan portfolios, while auto loans increased by 29.05 per cent and home loan registered a growth of 24.00 per cent on a year-on-year basis.
Bank education loan portfolio registered a growth of Rs 7,162 crore by the end of 2009 as against Rs 5,099 crore in the same period previous year which means a 40% increase in the portfolio.
In India SBI is the largest education loan provider and by the end of March 2009, it had approximately disbursed 24% of the total education loan distributed by all public sector banks put together.
The figures were made public in quarterly report of the bank released on Thursday.
In case of auto loan portfolio by June 30, 2009 the bank had distributed loans amounting to Rs 10,399 crore as against total auto loans of Rs 8,059 crore in the previous year, thus attaining the growth of 29.05 per cent, the highest among all banks.
To increase its market share in the auto loan portfolio SBI this year had launched a special auto loan scheme called SBI Ezee car loans, under which the bank offered 8% per interest for the first year.
While the home loan portfolio registered a growth of 24.00 per cent on a year-on-year basis. The bank by June 30, 2009 had distributed home loan amounting to Rs 57,513 crore as comparison to Rs 46,370 crore previous year.
Earlier this year SBI had introduced a special home loan scheme under which it offered loans at 8% in the first year.
Thus SBI maintains that it has been the fastest growing home loan provider during the first quarter of the present financial year.
Personal loans also come under retail loans but bank did not provide separate figures for this segment.
Friday, July 24, 2009
SBI to launch banking plaza – the 24-hour banking
Soon India’s largest lender the State Bank of India (SBI) will be opening a banking plaza at its main branch. This was informed by Sanjaya Dikshit, DGM of the main branch.
On Sunday the DGM held a meeting with customers and non-customers in which he revealed about the plans of opening a banking plaza. He told the banking plaza will be opened at the main building and will work on the concept of 24-hour banking under which customers can avail all the facilities (from operation of account to loan sanction) of banking under one roof.
He told in the meeting there was a good interaction with the customers and got feed back along with suggestions from its respected customers. In the meeting before the interaction session bank officials informed the guests about the various schemes, new schemes and facilities bank is offering. During the interaction session customers gave some good feedback and suggestions which can help the bank in offering better services.
The DGM also informed the guest that bank is giving car loans and housing loans at the rate of eight per cent for the first year, the lowest rate of interest being offered by SBI in the banking industry. Along with him Suresh Sharma and Shashikant Khandekar were also present in the meeting.
On Sunday the DGM held a meeting with customers and non-customers in which he revealed about the plans of opening a banking plaza. He told the banking plaza will be opened at the main building and will work on the concept of 24-hour banking under which customers can avail all the facilities (from operation of account to loan sanction) of banking under one roof.
He told in the meeting there was a good interaction with the customers and got feed back along with suggestions from its respected customers. In the meeting before the interaction session bank officials informed the guests about the various schemes, new schemes and facilities bank is offering. During the interaction session customers gave some good feedback and suggestions which can help the bank in offering better services.
The DGM also informed the guest that bank is giving car loans and housing loans at the rate of eight per cent for the first year, the lowest rate of interest being offered by SBI in the banking industry. Along with him Suresh Sharma and Shashikant Khandekar were also present in the meeting.
Monday, July 13, 2009
SBI get first-stage nod for general ins biz in tie-up with Insurance Australia Group
Insurance regulator Insurance Regulatory and Development Authority (IRDA) has given first-stage approval to State Bank of India (SBI) for its general insurance business.
SBI will start its general insurance business in collaboration with Insurance Australia Group.
IRDA Chairman J Hari Narayan told press, "We have given first-stage (R1) approval to SBI for the general insurance company. There are a total of three stages (of approvals)".
He informed that IRDA SBI will be granted full approval when it will apply for it.
Hari Narayan said, "The ball is in their (SBI) court. It is up to them -- when they apply for the remaining two stages".
SBI will be starting its general insurance joint venture in the fourth quarter of the current fiscal.
SBI, the public sector lender, is already having a life insurance joint venture with BNP Paribhas Assurance--SBI Life Insurance.
SBI will start its general insurance business in collaboration with Insurance Australia Group.
IRDA Chairman J Hari Narayan told press, "We have given first-stage (R1) approval to SBI for the general insurance company. There are a total of three stages (of approvals)".
He informed that IRDA SBI will be granted full approval when it will apply for it.
Hari Narayan said, "The ball is in their (SBI) court. It is up to them -- when they apply for the remaining two stages".
SBI will be starting its general insurance joint venture in the fourth quarter of the current fiscal.
SBI, the public sector lender, is already having a life insurance joint venture with BNP Paribhas Assurance--SBI Life Insurance.
Thursday, July 9, 2009
SBI chairman says interest rates can be hiked in 6 months
On Tuesday the chairman of State Bank of India, the country's biggest lender, said since last October the interest rates have been falling but there are chances that interest rates might get strengthen in six months as credit is picking up. O.P. Bhatt informed reporters as the increase in business activity can be seen which in turn will result in higher loan growth in the second half of the year. He added, "Six months down the line with credit rising and the entire borrowing taking place, rates will either stabilize or even harden".
"There are lots of signs available in the economy that business activity is increasing across multiple sectors. But it is still not showing up in bank lending. We believe that with time lag it is going to happen." Since last October the central bank has cut its main lending rate by 425 basis points in order to boost the slowing economy and state-run banks responded to this by reducing rates by 150-200 basis points. State Bank, along with its associates controls a quarter of the Indian bank loans and deposits; on June 24 it reduced its lending rate by 50 basis points. Since November its benchmark lending rate has declined by 200 basis points since November. In November Indian bank loan growth has come down from around 27 percent in to about 15 percent in June and rates have halved to around 30 percent seen in the financial year to March 2008. Bhatt addressed the reporters after he along with other bank chiefs met the central bank governor, D. Subbarao, before a quarterly monetary policy review on July 28. He told in the meeting the main focus was on the current "liquidity overhang" in the system and managing government borrowing without stress. Finance Minister Pranab Mukherjee said in the budget on Monday the fiscal deficit will touch a 16-year high of 6.8 percent of gross domestic product and the government will have to borrow from the market to reduce the shortfall.
Bhatt added commercial banks have requested the Reserve Bank of India (RBI) to extend loan restructuring program till December. Last year the central bank has allowed banks to re-set terms of some loans where they are not receiving repayments regularly, except for real estate and personal, to avoid them from being accounted as non-performing loans in the course of an economic downturn. "We have asked RBI to extend loan restructuring deadline as it is taking lot of time as cases of consortium lending involves multiple banks," Bhatt said. Shares in State Bank, which having a market value of $22 billion, ended down 1.1 percent lower at 1,636.35 rupees in a Mumbai market that rose 0.9 percent.
"There are lots of signs available in the economy that business activity is increasing across multiple sectors. But it is still not showing up in bank lending. We believe that with time lag it is going to happen." Since last October the central bank has cut its main lending rate by 425 basis points in order to boost the slowing economy and state-run banks responded to this by reducing rates by 150-200 basis points. State Bank, along with its associates controls a quarter of the Indian bank loans and deposits; on June 24 it reduced its lending rate by 50 basis points. Since November its benchmark lending rate has declined by 200 basis points since November. In November Indian bank loan growth has come down from around 27 percent in to about 15 percent in June and rates have halved to around 30 percent seen in the financial year to March 2008. Bhatt addressed the reporters after he along with other bank chiefs met the central bank governor, D. Subbarao, before a quarterly monetary policy review on July 28. He told in the meeting the main focus was on the current "liquidity overhang" in the system and managing government borrowing without stress. Finance Minister Pranab Mukherjee said in the budget on Monday the fiscal deficit will touch a 16-year high of 6.8 percent of gross domestic product and the government will have to borrow from the market to reduce the shortfall.
Bhatt added commercial banks have requested the Reserve Bank of India (RBI) to extend loan restructuring program till December. Last year the central bank has allowed banks to re-set terms of some loans where they are not receiving repayments regularly, except for real estate and personal, to avoid them from being accounted as non-performing loans in the course of an economic downturn. "We have asked RBI to extend loan restructuring deadline as it is taking lot of time as cases of consortium lending involves multiple banks," Bhatt said. Shares in State Bank, which having a market value of $22 billion, ended down 1.1 percent lower at 1,636.35 rupees in a Mumbai market that rose 0.9 percent.
Tuesday, July 7, 2009
SBI promises promotions to top levels and overseas postings to prospective executives
State Bank of India (SBI) is looking for 500 management executives therefore it is looking for best talent. Therefore bank is promising to its prospective management executives a promotion to top levels as well as postings in overseas branches.
The bank said, it has prepared an “attractive promotion policy to reach the top levels of the bank” along with an “attractive compensation package”.
In addition, “an unmatched opportunity to experience the rich diversity of India through posting at various places and also foreign locations” is also being publicized.
SBI in its recruitment notice for the management executives has stated, “The bank has a massive and unmatched distribution network of 11,655 domestic branches, reaching every nook and corner of the country, 92 foreign offices spread over 32 countries covering all time zones as well as world-class technology base providing st ate-of-the-art virtual banking channels”.
It further added, “On an ever expanding banking horizon, globalization has opened up infinite business opportunities at home and abroad.”
Earlier SBI has mentioned that in the current fiscal, the bank will be recruiting 33,703 new hires of 2008-09 and also has the plan for the recruitment of 13,000 employees in 2009-10.
The bank said, it has prepared an “attractive promotion policy to reach the top levels of the bank” along with an “attractive compensation package”.
In addition, “an unmatched opportunity to experience the rich diversity of India through posting at various places and also foreign locations” is also being publicized.
SBI in its recruitment notice for the management executives has stated, “The bank has a massive and unmatched distribution network of 11,655 domestic branches, reaching every nook and corner of the country, 92 foreign offices spread over 32 countries covering all time zones as well as world-class technology base providing st ate-of-the-art virtual banking channels”.
It further added, “On an ever expanding banking horizon, globalization has opened up infinite business opportunities at home and abroad.”
Earlier SBI has mentioned that in the current fiscal, the bank will be recruiting 33,703 new hires of 2008-09 and also has the plan for the recruitment of 13,000 employees in 2009-10.
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