As on Jun. 22, 2007, the credit paid out by scheduled commercial banks arose 24.6% (Rs 3,746.74 billion) on a year-on-year basis.
The Reserve Bank Of India (RBI) in its weekly statistical supplement of Jul. 6, 2007 reported that the disbursals as on this date were Rs 18,958.01 billion.
In the corresponding period of 2005-2006, the bank credit rose 31%. Therefore, the development in credit abridged for the week ended Jun. 22, 2007, entailing that RBI’s decision of lessening the monetary policy has produced worthy outcomes.
The Leader in the private sector lending – HDFC Bank has hiked the interest rates on its NRE deposits W.E.F. from July 1.
Now, the Deposits of 3 to 5 years maturity will earn an interest of 5.45 % as against the earlier 5.29 % while those of 2 to less than 2 years maturity will earn 5.43 % as compared to 5.31 %.
The deposits of maturity between 1 and 2 years will earn 5.42 % rate of interest as against the earlier 5.39 %.
The BSE 30-share Sensex penetrated the sensitively important 15,000 mark during the afternoon trades.
At 13:36 IST, the Sensex was 74 points to 14,936. The benchmark index came across an all-time high of 15,007.22 at 13:21 IST
The Sensex took seven months to cover up this level from 14,000 to 15,000. On December 2006, the stock index hit 14,000 mark for the first time. On the contrary, it had taken just 26 trading sessions to reach the 14,000 level after it had first struck the 13,000 mark on 30 October 2006.
Mumbai: SBI Mutual Fund has crossed Rs 20,000-crore mark in assets under management (AUM) as on 30 June, 2007.
According to a release the AUM of SBI MF stood at Rs 20,272 crore as on June 30 and it is placed sixth among existing fund houses. SBI Mutual funds Achieves Milestone
While commenting on the milestone achieved Syed Shahabuddin, Managing Director and CEO, SBI Mutual Funds stated, “SBI Mutual Fund's excellent run is a reflection of the fund house's ability to understand the needs of investors and introduce products suited to their needs.”
SBI MF has an investor base of over 35-lakh spread over 40 schemes.
BSE's banking share index ‘Bankex’ had surged 153.28 points, or 1.92%, to 8,143.76 in noon trades on anticipations that interest rates may diminish because of lower inflation.
The existing level is a record high for the Bankex. It also hit a low of 8,019.66 during the day. On 19 July 2006, the Bankex had touched a 52-week low of 4,032.39.
State Bank of India (SBI) boosted 3.21% to Rs 1580, ICICI Bank 1.64% to Rs 966.25, HDFC Bank 0.34% to Rs 1150, Bank of India 0.26% to Rs 228.20, Punjab National Bank (PNB) 2.55% to Rs 541.80.
On the other hand, ICICI Bank, State Bank of India and HDFC bank showed weightages of 40.36%, 17.12% and 13.83%, correspondingly, in the Bankex.
On the back of an increase in interest and fee-based income, ABN Amro Bank has recorded a growth of 59 per cent in its net earnings to Rs 385.35 crore in 2006-07, as compared to Rs 241.68 crore in the previous year.
The overall turnover of the bank increased by 36 per cent to Rs 32,077 crore as against Rs 23,539 crore in the corresponding period of the last year.
Mumbai: Union Bank of India (UBI), Bank of India (BOI) and State Bank of India (SBI) have altered the rate of interest on FCNR (B) and NRE (rupee) depository terms w.e.f July 1, 2007.
In case of FCNR (B) deposits, the rate of interest on dollar deposits of different tenure periods include; 4.68 per cent for one to less than two years from 4.64 per cent, 4.68 per cent for two to less than three years from 4.57 per cent, 4.71 per cent for three to less than four years from 4.55 per cent, 4.75 per cent for four to less than five years from 4.55 per cent and 4.79 Per cent for five years from 4.57 per cent.
The interest rate for NRE deposits are: 5.43 per cent for one to less than two years from 5.39 per cent, and 5.43 per cent for two to less than three years from 5.32 per cent.
Hyderabad: State Bank of Hyderabad (SBH) has augmented interest rates on non-resident external (NRE) term deposits with effect from June 1.
According to the bank release, the interest rate has been augmented to 5.39 per cent from 5.3 per cent on deposits from one year to less than two years, on the other hand, the rates for maturities from two to less than three years has been altered to 5.32 per cent (5.06 per cent) and from three to five years 5.3 per cent (5.01 per cent).
Punjab National Bank (PNB) has increased the rates of interest offered on Non-Resident Indian deposits wef June 1.
The interest rate on dollar denominated deposits under the foreign currency non-resident (banks) scheme has been increased from 4.55 per cent to 4.64 per cent for maturity of 1 year to less than 2 years, from 4.31 per cent to 4.57 per cent for 2 to less than 3 years, from 4.26 per cent to 4.55 per cent for 3 to less than 4 years, from 4.26 per cent to 4.55 per cent for 4 to less than five years and from 4.29 per cent to 4.57 per cent for five years maturity only.
HDFC Bank has opened 19 branches in a day in Delhi and the National Capital Region (NCR), outdoing its own record of 14 branches in a day in October 2005.
With the launch of 19 branches on Saturday (June 2), the total number of branches in Delhi and NCR has gone up to 116 and to 270 in North India. As on March 31, 2007 the bank had a network of 684 branches and 1,605 ATMs in 316 towns and cities.
HDFC Bank was established in August 1994 as HDFC Bank Limited. As of December 31, 2006, the bank had a India network of 684 branches in 316 cities in India and over 1663 ATM's. The Bank started its operations as a Scheduled Commercial Bank in January 1995.
Housing Development Finance Corporation Ltd (HDFC) has recorded an increase of 28.96% in its net profit at Rs 550.05 crore in the last quarter of the last financial year.
The company directors recommend a dividend of Rs. 22 a share for the year ended March 31, 2007, as against Rs. 20 per share in the previous year.
The bank’s net profit for the whole year boosted 24.9% to Rs 1570.38 crore, as against Rs 1257.30 crore for the year ended March 31, 2006.
Raising $5 billion through a follow-on equity offering may see the country’s largest private sector entity, ICICI Bank breaking into the top 100 financial institutions in the world, in terms of market capitalisation. The bank, whose current market capitalisation is $18.89 billion (Rs 77,834 crore), presently stands at the 111th position among the top 150 financial institutions in the world, when compared on an m-cap basis. Raising $5 billion through the equity offer will take ICICI Bank to a position of 84 in this list.
UTI Bank executive director of corporate strategy, Asok Kumar has announced that they have decided to go in for a fresh equity issue in the current financial year; the bank is aiming around hiking Rs 2,000 crore either through a domestic issue or global depository receipts in order to smarten up its tier-I capital base
State Bank of India (SBI) will not increase interest rates for a range of existing home and education loan customers’.
Even as the shift may be partially influenced by the earlier finance ministry recommendation that banks should not rush through rate increases.
The banks’ asset liability committee (Alco) that gathered on late Thursday evening, has suggested to the bank panel that the standard prime-lending rate (PLR) may be hiked up by 50-75 basis points. At this time, the bank’s PLR is 12.25%.
With RBI rates increase, car loan providers have raised interest rates by 75 to 100 basis points. The enhancement would mean a monthly increase of Rs 50 for a five-year loan having a daily rest basis.
ICICI Bank’s direct selling agents (DSAs) said they have accepted an official report from the bank on the cost increase effective from Monday. Rack rates are inclusive of DSA commissions.
The officials stated, “We used to lend at rack rates of 15% per annum, we are now been told that the new rates will be 16% effective from Monday.”
India’s largest house finance banking company HDFC has announced raised lending rates by 75 basis points for new loan seekers, and on the other hand, the interest rate is up 50 bps for the existing customers.
The 50 bps hike will translate into a Rs 32 hike each month on a loan of Rs 1 lakh borrowed for 20 years. Yet HDFC’s after hike rates are cheaper than its nearest rival ICICI Bank which annunciated a rate hike last Week. Last week, ICICI Bank increased its benchmark advance rate to 15.75%, while Yes Bank hiked its PLR to 14.75%. However, the state-owned banks are yet to consider their lending rates.
The State bank of India announced on Wednesday that there’s going to be a small rise in rates for car loans and personal loans.
The MD of SBI said: “we have announced like in benchmark prime lending rates by 75basis points…Consequently, we will be raising rates by 75 basis points on an average.” Mr. Aggarwal added, “This interest rate cycle has peaked in economy and the rates are likely to stabilize at this level.”
SBI is going to raise interest rates in some schemes. SBI had also announced 0.75 % in its benchmark prime lending rate to 12.25% last month.
The credit card market is emerging at a rapid velocity in India. The RBI’s latest monthly report reveals that approximately, one-fifth of the total retail electronic payments is being conceded through credit cards, whereas, debit cards’ share is just 4%.
The Metro cities like Delhi and Mumbai are highly penetrated by credit cards. The credit card issuers found excellent business prospects in Kolkata, Bangalore, and Hyderabad as well because of their IT/ITeS groups. With increase in the number of commercial activities and the growing swanky malls in smaller cities give bankers another target for their credit card market.