The State Bank of India country’s largest public sector lender is expanding its physical and technological network by opening around 80 branches and 150 ATMs in the states of Jammu and Kashmir, Himachal Pradesh, Punjab and Haryana, and the Union Territory of Chandigarh in 2010-11.
At present, in the region the bank is having 875 branches and 32 processing centers.
Speaking on the sidelines of the launch of the off-line trading in Chandigarh Circle, Chief General Manager S K Sehgal told Business Standard the physical expansion will be mainly done in the under-banked regions, mostly in the hinterland. He added the bank has been taking up various awareness activities in the suburbs for the promotion of banking through technology that is via ‘business correspondents’ as it is more cost-effective.
He said that major physical expansion will be done in Himalaya (Leh and Drass) and this will help in catering the banking needs of defence personnel.
Tuesday, February 9, 2010
Tuesday, January 19, 2010
SBI to install 6 lakh ‘point of sale terminals’ across country
State Bank of India (SBI) will be installing 6 lakh point of sale (PoS) terminals, across the country where shoppers can make payments by swiping their credit, debit or pre-paid cards.
At present there are 4.5 lakh PoS terminals in the country, out of which few belong to SBI.
Brajesh Varma, deputy general manager - new business, SBI said, “We have select PoS terminals installed in Manipal University and Indian Institute of Management - Ahmedabad, where the installations were done on request to benefit students. But right now most are at colleges and universities.”
The bank also have plans to start a separate company to take care of the card payment network, for this bank has short-listed 3-4 joint venture partners, including global players.
Varma informed, putting to rest speculation about SBI having shelved the plan, “The timeframe is yet to be finalized, but in two years we should have around 6 lakh merchant terminals”.
Sachin Khandelwal, senior general manager, ICICI Bank has been recently nominated the chairman of the Prepaid International Forum, said, it’s a huge target.
SBI will be installing large number of PoS terminals in smaller cities.
Verma stated, “Tier-I cities have already been covered by the private sector banks. We will build this network in Tier-II and Tier-III cities”.
According to plan, the joint venture partner name will be finalized in a couple of months and the company will start operations in 6-8 months.
The bank will not wait for the new company to be formed it will start installing terminals.
SBI’s plan is close to private sector ICICI Bank who is selling its network to First Data Corporation. It is expected the Reserve Bank of India will allow to cardholders to withdraw cash from PoS terminals installed with shopkeepers, mall stores, etc.
It is believed that SBI has changed the name it had initially decided on for the venture.
At present there are 4.5 lakh PoS terminals in the country, out of which few belong to SBI.
Brajesh Varma, deputy general manager - new business, SBI said, “We have select PoS terminals installed in Manipal University and Indian Institute of Management - Ahmedabad, where the installations were done on request to benefit students. But right now most are at colleges and universities.”
The bank also have plans to start a separate company to take care of the card payment network, for this bank has short-listed 3-4 joint venture partners, including global players.
Varma informed, putting to rest speculation about SBI having shelved the plan, “The timeframe is yet to be finalized, but in two years we should have around 6 lakh merchant terminals”.
Sachin Khandelwal, senior general manager, ICICI Bank has been recently nominated the chairman of the Prepaid International Forum, said, it’s a huge target.
SBI will be installing large number of PoS terminals in smaller cities.
Verma stated, “Tier-I cities have already been covered by the private sector banks. We will build this network in Tier-II and Tier-III cities”.
According to plan, the joint venture partner name will be finalized in a couple of months and the company will start operations in 6-8 months.
The bank will not wait for the new company to be formed it will start installing terminals.
SBI’s plan is close to private sector ICICI Bank who is selling its network to First Data Corporation. It is expected the Reserve Bank of India will allow to cardholders to withdraw cash from PoS terminals installed with shopkeepers, mall stores, etc.
It is believed that SBI has changed the name it had initially decided on for the venture.
Wednesday, January 6, 2010
SBI opened `SBI Sona Ghar' first exclusive gold banking outlet
The State Bank of India (SBI) first exclusive gold banking outlet `SBI Sona Ghar' in the country was inaugurated by the Minister of State for Human Resource Development D Purandeswari. Bank’s main branch is in Koti.
SBI Chief General Manager Shiva Kumar told the reporter banks’ launch of its new initiative is very timely as more and more people prefer to invest in gold. At new center gold deposit scheme will also be available.
He told through new centre pure gold coins and bars of 999.9 purity of 2 gm to 50 gm in a tamper-proof packaging will be sold. At new center gold deposit scheme will also be available.
The gold coins will be assay certified and are ideal for investment and individual and corporate gifting. At this outlet on bulk purchase of 500 grams and above special discounts will be given.
On deposit scheme 1 to 1.5 per cent interest in gold will be given for a period ranging from three to five years.
For instance on a 500 gram gold deposit for a period of three years, a customer will get 515 gram at the end of the term, he pointed out that the interest earned on the gold deposit is exempted from income tax and the value of gold has been exempted from wealth tax.
Even the appreciation on value of gold has been exempted from the capital gains tax.
Customers can take loan from any SBI branch by pledging gold deposit certificates. There is a provision for premature with drawl of the gold deposit, after an initial lock-in period of one year individual can with draw it.
He said, “We are targeting gold deposits of 500 kg in one year,'' and added that they will contact various temples and trusts to persuade them to deposit the gold which has been lying idle with them.
He informed bank aims to sell 100 kg gold every month. Purandeswari said as the price of gold is very high therefore it is the best investment option.
SBI Chief General Manager Shiva Kumar told the reporter banks’ launch of its new initiative is very timely as more and more people prefer to invest in gold. At new center gold deposit scheme will also be available.
He told through new centre pure gold coins and bars of 999.9 purity of 2 gm to 50 gm in a tamper-proof packaging will be sold. At new center gold deposit scheme will also be available.
The gold coins will be assay certified and are ideal for investment and individual and corporate gifting. At this outlet on bulk purchase of 500 grams and above special discounts will be given.
On deposit scheme 1 to 1.5 per cent interest in gold will be given for a period ranging from three to five years.
For instance on a 500 gram gold deposit for a period of three years, a customer will get 515 gram at the end of the term, he pointed out that the interest earned on the gold deposit is exempted from income tax and the value of gold has been exempted from wealth tax.
Even the appreciation on value of gold has been exempted from the capital gains tax.
Customers can take loan from any SBI branch by pledging gold deposit certificates. There is a provision for premature with drawl of the gold deposit, after an initial lock-in period of one year individual can with draw it.
He said, “We are targeting gold deposits of 500 kg in one year,'' and added that they will contact various temples and trusts to persuade them to deposit the gold which has been lying idle with them.
He informed bank aims to sell 100 kg gold every month. Purandeswari said as the price of gold is very high therefore it is the best investment option.
Tuesday, December 29, 2009
SBI predicts no immediate change in lending rates
The State Bank of India (SBI), country’s largest lender the first bank to launch special home loan scheme offering 8% interest rate, says no immediate change is likely in lending rates.
SBI chairman .P. Bhatt, who was on a visit in Jamshedpur, told the step taken by the bank in the home loan segment has benefited both the customers and real estate developers.
Bhatt said, “We reduced the home loan lending rates to 8 per cent per annum and as a result developers and customers started returning to the market. Other banks were also forced to follow our footsteps.”
He maintained that in market liquidity is in surplus but the credit growth has yet to pick up.
He added, “I don’t see any hike in lending rates of the bank in the next six months. There is enough money available in the market and banks are not facing any difficulties in providing credit to customers at this point of time”.
SBI chairman .P. Bhatt, who was on a visit in Jamshedpur, told the step taken by the bank in the home loan segment has benefited both the customers and real estate developers.
Bhatt said, “We reduced the home loan lending rates to 8 per cent per annum and as a result developers and customers started returning to the market. Other banks were also forced to follow our footsteps.”
He maintained that in market liquidity is in surplus but the credit growth has yet to pick up.
He added, “I don’t see any hike in lending rates of the bank in the next six months. There is enough money available in the market and banks are not facing any difficulties in providing credit to customers at this point of time”.
Monday, December 7, 2009
MoU inked between SBI and Honda Siel Cars
A Memorandum of Understanding (MoU) was inked between State Bank of India (SBI) and Honda Siel Cars India Ltd for providing auto retail financing to prospective customers.
According to company’s press release SBI will be the preferred financier for the entire range of vehicles marketed by Honda Siel Cars in India.
Honda Siel Cars' director (marketing) Tatsuya Natsume and SBI's chief general manager, personal banking business unit, P Nanda Kumaran signed the MoU.
The main aim of signing MoU is to target high-end customers who will be taking car loans of above Rs 5 lakh from the bank. SBI has launched a special scheme called SBI Advantage Car Loan Scheme for this segment. The bank release said the scheme is available for individuals – salaried, professionals, self-employed, businessmen and proprietary/ partnership firms- who pay income tax and whose income/net profit or gross taxable income is Rs2.50 lakh and above.
SBI under its car loan is giving 85% of on-road price of the car with a repayment period of 7 years as maximum applicable to all categories of customers. Bank is charging only 0.50% of the loan amount as processing fee.
The release said, the USP of the product is the loans will be sanctioned on a priority basis.
According to company’s press release SBI will be the preferred financier for the entire range of vehicles marketed by Honda Siel Cars in India.
Honda Siel Cars' director (marketing) Tatsuya Natsume and SBI's chief general manager, personal banking business unit, P Nanda Kumaran signed the MoU.
The main aim of signing MoU is to target high-end customers who will be taking car loans of above Rs 5 lakh from the bank. SBI has launched a special scheme called SBI Advantage Car Loan Scheme for this segment. The bank release said the scheme is available for individuals – salaried, professionals, self-employed, businessmen and proprietary/ partnership firms- who pay income tax and whose income/net profit or gross taxable income is Rs2.50 lakh and above.
SBI under its car loan is giving 85% of on-road price of the car with a repayment period of 7 years as maximum applicable to all categories of customers. Bank is charging only 0.50% of the loan amount as processing fee.
The release said, the USP of the product is the loans will be sanctioned on a priority basis.
Thursday, December 3, 2009
SBT extended home loan scheme, withdrawn car loan scheme
The State Bank of Travancore (SBT) has also extended its Aishwarya Home Loan scheme till March 31, 2010, and has reintroduced processing charges.
Under this scheme the home loans taken during this period will be offered at the rate of 8 per cent (fixed) during the first year, then for the next two years the rate would be 9 per cent (fixed) on up to Rs 30 lakh and for the next two years it would charge 9.5 per cent (fixed) for above Rs 30 lakh.
According to bank press release, subsequently the interest rates for these loans after wards will be at 2.5 per cent below prime lending rate (floating) for limits up to Rs 30 lakh and at 2 per cent below prime lending rate (floating) for limits above Rs 30 lakh.
For the time being SBT has withdrawn its Aishwarya Car Loan scheme from December 1, and consequently the SBT Car Loan scheme will be available at normal rates with processing charges. The normal rates of car loan scheme charged by the bank range from 11 per cent to11.25 per cent for a tenure of up to seven years, the release stated.
Friday, November 13, 2009
SIB authorized to distribute commemorative coins on St Alphonsa
Recently the commemorative coin on India’s first woman Catholic Saint Sister Alphonsa was released by the Union Finance Minister Mr P. Chidambaram. Sister Alphonsa, who spent a quiet life at a convent in Bharananganam village in Kottayam district in the early 20th century, was conferred sainthood by Pope Benedict last year. South Indian Bank (SIB), a Kerala based lender has been authorized to distribute the coins through its branches.
The Rs five coin has the engraving of the Kerala – born nun. The distribution of coin was inaugurated at SIB headquarters in Thrissur where Dr V.A. Joseph, Managing Director and Chief Executive Officer of SIB presented few pieces of coin to Archbishop Andrews Thazhath, a bank press release stated.
The Provincial of Assisi Province of Franciscan Clarist Congregation received the coins; St Alphonsa belonged to this place.
The Rs five coin has the engraving of the Kerala – born nun. The distribution of coin was inaugurated at SIB headquarters in Thrissur where Dr V.A. Joseph, Managing Director and Chief Executive Officer of SIB presented few pieces of coin to Archbishop Andrews Thazhath, a bank press release stated.
The Provincial of Assisi Province of Franciscan Clarist Congregation received the coins; St Alphonsa belonged to this place.
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