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Tuesday, September 16, 2014

SBI revises deposit rates by 0.25% in two buckets

Country's largest lender State Bank of India today cut its interest rate offering for medium-term deposits by 0.25 per cent to 8.75 per cent, citing slower-than -expected pick up in advances.

However, it increased rates for shorter tenor deposits of 180-210 days by 0.25 per cent to 7.25 per cent per annum.

"In view of abundant liquidity coupled with slower-than- anticipated credit pick up, State Bank of India ( SBI) has decided to cut the deposit rates by 0.25 per cent to 8.75 per cent," the bank said in a statement.

The downward revision of rates is for deposits between one and three years and is applicable from September 18, it said.

The bank added that with the inflation trending down -- consumer price inflation for August eased to 7.80 per cent -- the rate adjustment will continue to ensure that the depositors are compensated "adequately with a positive real rate on their deposits."

It can be noted that banks have been complaining about issues in credit offtake, even as the sentiment has improved following the formation of a stable government at the Centre.

The system's year-on-year increase in credit stood at 10.94 per cent for the fortnight ended August 22, which is almost at par with the 10.61 per cent observed in 2009 in the aftermath of the financial crisis.

Source : Economic Times
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Allahabad Bank seeks Rs 900 crore capital from government

State-run Allahabad Bank said here today that it has sought a Rs900-crore capital infusion from the government during the current financial year.

"We have asked for Rs 900 crore from the government. Usually it comes after September," Allahabad Bank's Chairman and Managing Director Rakesh Sethi told reporters on the sidelines of an annual banking event organised by FICCI and IBA here today.

The government has budgeted only Rs 11,200 for capital infusion in public sector banks during this fiscal.

Sethi further said the bank has board approval to raise Rs 320 crore from the government and a decision would be taken only if there is higher demand for credit.

"We have permission for a Rs 320 crore QIP, but (since) there is no demand for credit now, what do I do with that money," he asked.

When asked whether the bank plans to cut its lending rates, Sethi said that the decision would be taken by the asset liability committee.

The largest bank, State Bank of India cut the deposit rate today by 25 basis points to 8.75 per cent in the one to three years category, effective from September 18.

SBI has also increased its deposit rate by 25 basis points in the 180 days to 210 days category.

When asked whether Allahabad Bank plans a festive season offer on loans, Sethi said, "Our base rate is already at 10.25 per cent. So, how much lower can we go".

Source : Economic Times
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Canara Bank bags award, Allahabad Bank gets second prize in Indira Gandhi Rajbhasha Shield Scheme

Rajeev Kishore Dubey, CMD of Canara Bank, received the 1st Prize under the Indira Gandhi Rajbhasha Puraskar Yojana from the President of India, Pranab Mukherji, at the Rashtrapathi Bhavan Auditorium in New Delhi, the bank said in a statement.

Kolkata-based Allahabad Bank was awarded the second prize in “region ‘C’” banks for the year 2012-13 under the Indira Gandhi Rajbhasha Shield Scheme of Department of Official Language, Ministry of Home Affairs.

According to a release issued by Allahabad Bank, its Chairman and Managing Director, Rakesh Sethi, received the shield from the President, Pranab Mukherjee, at a function help in the Rashtrapati Bhavan on September 14.

Union Home Minister Rajnath Singh also graced the occasion.

Allahabad Bank is celebrating the month of September as Hindi month, the bank said in a release.

Source : The Hindu
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J& K flood relief: Oriental Bank staff donates 1-day salary to PMNRF

Oriental Bank of Commerce (OBC) staff numbering 20,157 have contributed their one-day salary to Prime Minister's National Relief Fund (PMNRF) for the ongoing relief work in Jammu & Kashmir, which has been devastated by floods.

An amount of Rs 2.15 crore has been contributed to PMNRF on this count, a release issued by the bank said.

Source : The Hindu
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Bank of Maharashtra plans to raise Rs 1,000 cr this year

State-run Bank of Maharashtra today said that it plans to raise around Rs 500-1,000 crore by issuing Basel III-compliant Tier-I bonds this year.

“We will look at raising Basel III-compliant additional Tier-1 capital instead of taking up further equity right now. We may raise around Rs 500 crore to Rs 1,000 crore during this financial year,” bank Chairman and Managing Director S Muhnot told reporters here on the sidelines of an event organised jointly by FICCI and the Indian Banks’ Association (IBA).

Currently, the city-based bank’s capital adequacy ratio is around 11.

The bank sees its credit growth to moderate to around 12 per cent to 15 per cent this fiscal.

“We are looking at around 12 per cent to 15 per cent growth this financial year as compared to 18 per cent to 20 per cent last year,” Muhnot said.

He said there are some signs of improvement in the manufacturing sector, adding that it would take one or two quarters for it to translate into growth in the banking system.

Source : The Hindu
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