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.
Tuesday, September 21, 2010
Thursday, September 16, 2010
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.
Monday, September 6, 2010
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.
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.
Thursday, August 26, 2010
SBI looking for merger of 5 associate banks into itself
Country’s largest lender State Bank of India is looking for the merger of five of its associate banks into itself. The five associate banks are powerful at the state levels. Chairman O.P. Bhatt, in a reply to the rumors said he will take up the matter with the government. On the other hand after this rumor, this week the shares of the listed associate banks’ have moved up.
Meanwhile the State Bank of Indore has already been merged with the parent bank the remaining five associates which are up for merger are the State Bank of Bikaner and Jaipur, the State Bank of Hyderabad, the State Bank of Mysore, the State Bank of Patiala and the State Bank of Travancore.
Bhatt while speaking on the sidelines of a Confederation of Indian Industry seminar told reporters, “I will discuss with the government whether we should go ahead with some more banks.”
If the government approves the merger of five associate banks then SBI will approach the associate banks for this. Bhatt said, “If the government answer is yes, as we had done in the past, we will talk to the remaining five associate banks.”
When asked from the listed banks and the unlisted ones which will be merged first, he replied, “It doesn’t matter whether it’s listed or unlisted. What matters is how smoothly we can do it because now we have an experience in terms of modalities—both for listed and unlisted. We can pick either.”
On Thursday finally the merger of State Bank of Indore with SBI will take place. It is expected everything will move smooth as it happened during the merger of State Bank of Saurashtra with its sister banks.
Bhatt added he want all associate banks of SBI should be well capitalized.
Meanwhile the State Bank of Indore has already been merged with the parent bank the remaining five associates which are up for merger are the State Bank of Bikaner and Jaipur, the State Bank of Hyderabad, the State Bank of Mysore, the State Bank of Patiala and the State Bank of Travancore.
Bhatt while speaking on the sidelines of a Confederation of Indian Industry seminar told reporters, “I will discuss with the government whether we should go ahead with some more banks.”
If the government approves the merger of five associate banks then SBI will approach the associate banks for this. Bhatt said, “If the government answer is yes, as we had done in the past, we will talk to the remaining five associate banks.”
When asked from the listed banks and the unlisted ones which will be merged first, he replied, “It doesn’t matter whether it’s listed or unlisted. What matters is how smoothly we can do it because now we have an experience in terms of modalities—both for listed and unlisted. We can pick either.”
On Thursday finally the merger of State Bank of Indore with SBI will take place. It is expected everything will move smooth as it happened during the merger of State Bank of Saurashtra with its sister banks.
Bhatt added he want all associate banks of SBI should be well capitalized.
Wednesday, August 25, 2010
State Bank of Indore branches will become SBI branches from Aug 27
From August 27 onwards, all branches of State Bank of Indore will start functioning as those of State Bank of India (SBI).
The Reserve Bank of India said in a statement, "All branches of State Bank of Indore will function as branches of State Bank of India from August 27, 2010. Customers, including depositors of State Bank of Indore will be able to operate their accounts as customers of State Bank of India with effect from August 27."
A month-and-a-half earlier, the union cabinet approved the merger between State Bank of Indore with its parent SBI, with an aim to help the country’s largest lender to increase its operations and cut costs.
The apex bank added, "The order of acquisition will be effective on and from the close of business on August 26, 2010."
In July the government had issued the 'Acquisition of State Bank of Indore order 2010', according to which the process of amalgamation is to begin from August 26.
Last year, the central board of SBI had given approval for the merger, after this the Centre also gave an in-principle approval.
SBI holds 98% stake in State Bank of Indore, which is having 503 branches, including 437 crore banking branches and 66 branches for NRI services.
After this merger the competition between two entities will also come to end and will lead to easier access to funds at competitive rates.
After this merger SBI will have five associate banks - State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
While the State Banks of Bikaner and Jaipur, Mysore and Travancore are listed companies.
The Reserve Bank of India said in a statement, "All branches of State Bank of Indore will function as branches of State Bank of India from August 27, 2010. Customers, including depositors of State Bank of Indore will be able to operate their accounts as customers of State Bank of India with effect from August 27."
A month-and-a-half earlier, the union cabinet approved the merger between State Bank of Indore with its parent SBI, with an aim to help the country’s largest lender to increase its operations and cut costs.
The apex bank added, "The order of acquisition will be effective on and from the close of business on August 26, 2010."
In July the government had issued the 'Acquisition of State Bank of Indore order 2010', according to which the process of amalgamation is to begin from August 26.
Last year, the central board of SBI had given approval for the merger, after this the Centre also gave an in-principle approval.
SBI holds 98% stake in State Bank of Indore, which is having 503 branches, including 437 crore banking branches and 66 branches for NRI services.
After this merger the competition between two entities will also come to end and will lead to easier access to funds at competitive rates.
After this merger SBI will have five associate banks - State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
While the State Banks of Bikaner and Jaipur, Mysore and Travancore are listed companies.
Monday, August 23, 2010
SBI and nationalized banks authorized to accept I-T dues
Now you can pay your income tax (I-T) dues at different branches of the State Bank of India (SBI) and nationalized banks. These banks have been authorized to accept payment of income tax dues in cash or by cheque.
According to press release issued by the public accounts department (PAD), Reserve Bank of India (RBI), these arrangements have been made for the public so that they can easily pay their I-T dues. For the convenience of assesses the list of branches has been displayed in the banking hall of the RBI and it will also be available with the PAD.
According to press release issued by the public accounts department (PAD), Reserve Bank of India (RBI), these arrangements have been made for the public so that they can easily pay their I-T dues. For the convenience of assesses the list of branches has been displayed in the banking hall of the RBI and it will also be available with the PAD.
Monday, August 16, 2010
SBI raises BPLR and deposit interest rates
State Bank of India, the country’s largest lender has raised its benchmark lending rates by 50 basis points to 12.25 per cent, thus home, vehicle and other corporate loans linked with the rate become costlier for the existing borrowers. For the new borrowers bank has set the base rate at 7.5 per cent.
The bank has also raised its deposit rates by up to 150 basis points across various maturities.
Before this various lenders had raised lending as well as deposit rates after the Reserve Bank of India had increased its key rates to control rising prices.
SBI said a filing to the Bombay Stock Exchange, “The bank has revised the benchmark prime lending rate upwards by 50 basis points from 11.75 per cent p.a. to 12.25 per cent p.a. effective from August 17.”
In case of fixed deposits on maturity between 15 to 45 days SBI has raised rates by 1.5 per cent to 4 per cent per annum, this is the highest raise done by the bank among various maturity term deposits.
For tenures between 181 days to less than 1 year the new interest rate will be 6 per cent against existing 5.25 per cent, while for 555 days fixed deposit rate has been set at 7.25 percent, an increase of 1.25 per cent.
On maturity between 3 years to 5 years rates have been raised by 75bps to 7.25 per cent, while for 5 years to 8 years slab the rates have been raised by 25 bps to 7.50 per cent. The revised deposit rates will come into effect from tomorrow.
The bank has also announced that it will be launching floating fixed deposit product linked with base rate with effect from September 6, 2010.
SBI said in the filing, “The bank announced launching of floating rate term deposit products linked to ‘Base Rate’ effective from September 6, 2010.”
Base rate is the lowest lending rate below which the bank cannot give loan to any customer.
It said, for 1 year floating fixed deposit the interest rate has been set to 50 basis points (bps) lower than the existing base rate which is currently at 7.5 per cent.
For 3 years (floating) term deposit the interest rate will be 25 bps lower than the base rate and for 5 years floating fixed deposit the interest rate will be at base rate.
However last month the RBI in its monetary review had raised the short term borrowing (reverse repo) rate by 50 basis points and lending (repo) rate by 25 bps to control inflation.
The bank has also raised its deposit rates by up to 150 basis points across various maturities.
Before this various lenders had raised lending as well as deposit rates after the Reserve Bank of India had increased its key rates to control rising prices.
SBI said a filing to the Bombay Stock Exchange, “The bank has revised the benchmark prime lending rate upwards by 50 basis points from 11.75 per cent p.a. to 12.25 per cent p.a. effective from August 17.”
In case of fixed deposits on maturity between 15 to 45 days SBI has raised rates by 1.5 per cent to 4 per cent per annum, this is the highest raise done by the bank among various maturity term deposits.
For tenures between 181 days to less than 1 year the new interest rate will be 6 per cent against existing 5.25 per cent, while for 555 days fixed deposit rate has been set at 7.25 percent, an increase of 1.25 per cent.
On maturity between 3 years to 5 years rates have been raised by 75bps to 7.25 per cent, while for 5 years to 8 years slab the rates have been raised by 25 bps to 7.50 per cent. The revised deposit rates will come into effect from tomorrow.
The bank has also announced that it will be launching floating fixed deposit product linked with base rate with effect from September 6, 2010.
SBI said in the filing, “The bank announced launching of floating rate term deposit products linked to ‘Base Rate’ effective from September 6, 2010.”
Base rate is the lowest lending rate below which the bank cannot give loan to any customer.
It said, for 1 year floating fixed deposit the interest rate has been set to 50 basis points (bps) lower than the existing base rate which is currently at 7.5 per cent.
For 3 years (floating) term deposit the interest rate will be 25 bps lower than the base rate and for 5 years floating fixed deposit the interest rate will be at base rate.
However last month the RBI in its monetary review had raised the short term borrowing (reverse repo) rate by 50 basis points and lending (repo) rate by 25 bps to control inflation.
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