YES Bank will be increasing the strength of its employees as it is planning to expand its branch network. Managing Director Rana Kapoor pointed out as there is opportunity for growing business in corporate finance therefore it will be expanding its branch network.
In an interview Kapoor said the bank will be doubling its branch network to 250 by end 2010 and 750 by the end of 2015. Kapoor added, “We will also increase our staff count from the current 2,700 to 3,600 soon”.
Kapoor informed one of the major area at which bank is looking to increase count is the small and medium enterprise (SME) sector which severely needs good bankers.
Kapoor explained, “There is a compelling opportunity in the SME sector. Currently the SME segment accounts for 6 per cent of our loan book. I am hopeful that their share will reach 20 per cent in three years”.
Kapoor restate YES Bank is having indifference to the retail lending, because of enormous risks involved in that business.
Bank is having fewer branches, in comparison to the other private sector peers, might be also restricting plans to expand the retail lending business. At the end of the last financial year in March, YES Bank’s retail advances amounted to Rs 107 crore out of its total loan book of Rs 12,403 crore.
Kapoor further added that interest rates will probably remain stable for some time, or even ease a bit more.
He said, “But they will start inching up again in three to four months, once inflationary pressure begins to build up as a result of increase in prices of various asset classes”.
He informed YES Bank’s prime lending rate at present varies in a range of 7.5-12.5 per cent depending on the tenure of the loan.
Friday, July 3, 2009
Thursday, July 2, 2009
SBI, UBI revised BPLRs
The country’s largest bank, State Bank of India (SBI) has announced cut in its benchmark lending rate by half a percentage point to 11.75 per cent from this home, car and corporate loan customers will be benefited.
SBI informed the Bombay Stock Exchange the BPLR has been reduced by 50 basis points and will be effective from 29 June. At present bank BPLR is at 12.25 per cent. Earlier bank had reduced BPLR in January 2009 by 75 basis points.
It is expected the cut done by SBI will prompt other lenders to follow suit and can lead to greater demand for loans and stimulate consumption.
Before slashing BPLR SBI earlier this month had reduced deposit rates by 25 basis points across all maturities to bring down the cost of funds.
For a period of 181 days to less than one year, the rate has been reduced from 6.50 per cent to 6.25 per cent whereas for one year to less than 2-year, it was cut from 7.25 per cent to seven per cent.
For two-years to less than 1,000 days, the rate has been revised from 7.50 per cent to 7.25 per cent, then for 1,000-day tenure, the rate has been revised from 7.75 per cent to 7.50 per cent.
On the other hand United Bank of India (UBI) has reduced rate by 25 bps. Mr SC Gupta, United Bank of India chairman and managing director made an announcement of a cut in the bank’s BPLR by 25 basis points and will be effective from 1 July. After the revision the BPLR will stand reduced at 12 per cent.
Allahabad Bank a public sector bank informed before taking decision on next round of rate cuts it will take into consideration “several other factors”.
Speaking on the sidelines of a Banking Conclave Allahabad Bank chairman and managing director Mr KR Kamath told reporters, “The rates are being reviewed. The demand that interest rates should be made affordable is there, but several other factors should also be taken into account”.
SBI informed the Bombay Stock Exchange the BPLR has been reduced by 50 basis points and will be effective from 29 June. At present bank BPLR is at 12.25 per cent. Earlier bank had reduced BPLR in January 2009 by 75 basis points.
It is expected the cut done by SBI will prompt other lenders to follow suit and can lead to greater demand for loans and stimulate consumption.
Before slashing BPLR SBI earlier this month had reduced deposit rates by 25 basis points across all maturities to bring down the cost of funds.
For a period of 181 days to less than one year, the rate has been reduced from 6.50 per cent to 6.25 per cent whereas for one year to less than 2-year, it was cut from 7.25 per cent to seven per cent.
For two-years to less than 1,000 days, the rate has been revised from 7.50 per cent to 7.25 per cent, then for 1,000-day tenure, the rate has been revised from 7.75 per cent to 7.50 per cent.
On the other hand United Bank of India (UBI) has reduced rate by 25 bps. Mr SC Gupta, United Bank of India chairman and managing director made an announcement of a cut in the bank’s BPLR by 25 basis points and will be effective from 1 July. After the revision the BPLR will stand reduced at 12 per cent.
Allahabad Bank a public sector bank informed before taking decision on next round of rate cuts it will take into consideration “several other factors”.
Speaking on the sidelines of a Banking Conclave Allahabad Bank chairman and managing director Mr KR Kamath told reporters, “The rates are being reviewed. The demand that interest rates should be made affordable is there, but several other factors should also be taken into account”.
Wednesday, June 17, 2009
HDFC Bank tie-up with BIGFLIX.com to enhance net banking
HDFC Bank is India’s leading private bank has signed an agreement with BIGFlix.com DVD Rentals, India’s largest online and offline DVD rental service in order to promote HDFC Net Banking. Bank customers who register for net banking services will get a FREE TRIAL from BIGFlix DVD Rentals for a period of 14 days.
To increase and offer a wide range of experiences through partner benefits to its members, HDFC Bank has tied-up with BIGFlix.com, making it their first entertainment partner in the DVD rentals space. In this recession time HDFC card holders get a reason to rejoice as BIGFlix.com online move rental service has tied-up with HDFC bank under this it is offering all HDFC BANK net banking customers cardholders a special offer on the Rs 375/- one month one disc subscription plan.
The tie-up has come as a blessing for HDFC card holders as watching movies at a multiplex theatre is relatively an expensive affair these days. With BIGFlix.com, one can have the comfort of ordering the DVD of their favorite movies just by logging on to the website and the delivery will given and also picked-up from their doorsteps. Overall BIGFlix.com DVD rental will prove to be a very valuable for money entertainment option for all movie lovers.
‘HDFC Trial’ offer was introduced in 18 branches in Mumbai from 14th June. The procedure is just sign in for the HDFC Net Banking and gets a BIGFlix.com 14 day free trial offer. If the customer cancels the deal within the 14 days BIGFlix.com will pay the entire amount back to him.
Some special offers for payment:
a) If you register with your credit card and BIGFlix.com will credit the amount only after the free trial period is over
b) In case you book with your debit card – then BIGFlix.com will debit your account and then on cancellation before the 14 days free trial period BIGFlix.com will pay the entire amount back
At present the offer is available at the following HDFC Bank branches: Mumbai Central, Dadar, Vikhroli, Kamala Mills EC , Worli, Tulsiani, Hughes Road, Fort, Tirupati Apartments, Sion, CST (VT), Mulund (East), Chembur, Mulund (West), Powai, Parel, Dombivali and Bhandup
To increase and offer a wide range of experiences through partner benefits to its members, HDFC Bank has tied-up with BIGFlix.com, making it their first entertainment partner in the DVD rentals space. In this recession time HDFC card holders get a reason to rejoice as BIGFlix.com online move rental service has tied-up with HDFC bank under this it is offering all HDFC BANK net banking customers cardholders a special offer on the Rs 375/- one month one disc subscription plan.
The tie-up has come as a blessing for HDFC card holders as watching movies at a multiplex theatre is relatively an expensive affair these days. With BIGFlix.com, one can have the comfort of ordering the DVD of their favorite movies just by logging on to the website and the delivery will given and also picked-up from their doorsteps. Overall BIGFlix.com DVD rental will prove to be a very valuable for money entertainment option for all movie lovers.
‘HDFC Trial’ offer was introduced in 18 branches in Mumbai from 14th June. The procedure is just sign in for the HDFC Net Banking and gets a BIGFlix.com 14 day free trial offer. If the customer cancels the deal within the 14 days BIGFlix.com will pay the entire amount back to him.
Some special offers for payment:
a) If you register with your credit card and BIGFlix.com will credit the amount only after the free trial period is over
b) In case you book with your debit card – then BIGFlix.com will debit your account and then on cancellation before the 14 days free trial period BIGFlix.com will pay the entire amount back
At present the offer is available at the following HDFC Bank branches: Mumbai Central, Dadar, Vikhroli, Kamala Mills EC , Worli, Tulsiani, Hughes Road, Fort, Tirupati Apartments, Sion, CST (VT), Mulund (East), Chembur, Mulund (West), Powai, Parel, Dombivali and Bhandup
Wednesday, April 29, 2009
Few takers of travel loans due to high interest rates and slump bites
This year the tour operators are getting very less bookings for outbound travel even though the season has set in. The reason being there are few takers of travel loans as these loans are clubbed under the personal loan segment and for some banks this segment is not a top priority or have stopped giving personal loans. According to tour operators the decrease in demand may be due to economic slowdown and higher interest rates for travel loans. Tour operators say generally people choose to take travel loans for outbound travel especially to destinations like Europe, US, Australia and New Zealand among others. Summer holidays (April-July) alone account for 60% of the total outbound travel in a year. Last year around 10 million Indians traveled abroad.
According to Karan Anand, head, relationships and supplier management at Cox & Kings, "The concept of travel loans is still at a nascent stage. But it was beginning to catch up. However, we don't expect to see the same kind of growth we saw last year.'' Last year around 5-7% of the total travelers took travel loan, as many believe traveling abroad as a luxury. Cox & Kings has a tie-up with Citibank for the same.
At present there is enough of liquidity in the banking system but banks are unwilling to disburse loans as they fear could be on the default category. Another most important reason why travelers are keeping away from taking loan as the interest rate on personal loans come is high (12-19%) in comparison to housing, auto or education loan among others. Moreover, operators believe that people might be uncertain to undertake expensive holidays, at a higher interest rate, when in India pays are being slashed and also there are job cuts.
On the other hand bankers say that they don't have any data on travel loans, as they club it along with personal loans. An official working with a foreign bank stated, "We don't offer travel loans. Anyone who applies for a personal loan can use it for whatever purpose he wants to. We don't ask them any questions’’. He further added, "All we look at is the person's credentials, history, and his repaying capacity''.
Another private lender pointed out banks might not be interested in disbursing personal loans as they are unsecured and carry a heavy default risk. He added, "When somebody is going through financial difficulties, he or she is not likely to default on the housing loan. Most likely they are going to default on their personal loans first, then the car loan and only then they would think of defaulting on the housing loan. That is why personal loans are considered risky by banks''.
According to Karan Anand, head, relationships and supplier management at Cox & Kings, "The concept of travel loans is still at a nascent stage. But it was beginning to catch up. However, we don't expect to see the same kind of growth we saw last year.'' Last year around 5-7% of the total travelers took travel loan, as many believe traveling abroad as a luxury. Cox & Kings has a tie-up with Citibank for the same.
At present there is enough of liquidity in the banking system but banks are unwilling to disburse loans as they fear could be on the default category. Another most important reason why travelers are keeping away from taking loan as the interest rate on personal loans come is high (12-19%) in comparison to housing, auto or education loan among others. Moreover, operators believe that people might be uncertain to undertake expensive holidays, at a higher interest rate, when in India pays are being slashed and also there are job cuts.
On the other hand bankers say that they don't have any data on travel loans, as they club it along with personal loans. An official working with a foreign bank stated, "We don't offer travel loans. Anyone who applies for a personal loan can use it for whatever purpose he wants to. We don't ask them any questions’’. He further added, "All we look at is the person's credentials, history, and his repaying capacity''.
Another private lender pointed out banks might not be interested in disbursing personal loans as they are unsecured and carry a heavy default risk. He added, "When somebody is going through financial difficulties, he or she is not likely to default on the housing loan. Most likely they are going to default on their personal loans first, then the car loan and only then they would think of defaulting on the housing loan. That is why personal loans are considered risky by banks''.
Wednesday, April 22, 2009
Private Banks to stop auto loan biz for commercial & passenger vehicles
Private Banks are planning to close the loan segment for commercial and passenger vehicles as they have not received any clear guidelines from the Reserve Bank of India which prevents them from the repossession of the vehicles from defaulting borrowers.
The bankers communicated their views in a recent meeting with RBI and finance ministry officials in the presence of auto industry representatives. On the other hand the government and the banking regulator do not consider repossession as unlawful provided banks carry out this activity according to a set of procedure.
An anonymous finance ministry official informed, “Repossession of any mortgaged property is not illegal as misunderstood by some of the borrowers. The government is working out with the RBI and the auto industry to bring out guidelines, which will help end the ambiguity regarding recovery and repossession”.
In India more than 80% of all the vehicles are financed. According to industry estimates auto loan portfolio of all banks put together stands around Rs 1,00,000 crore.
The official stated, “The RBI will come up with detailed guidelines, empowering banks to auction repossessed vehicles”. He stated, “It may also include norms on getting repossessed vehicle back from the banks”. Even the public sector banks agreed to this that in the absence of proper repossession norms their business has got badly affected. But their better financial position has allowed them to continue offer auto loans in spite of risk involved.
Unwillingness of banks in offering auto loans can clearly be seen in the recent finance ministry data, which indicates that fresh sanctions of auto loans have come down for the 15 days ended March 13. The figures also depict the case of public sector banks. Fresh loans to auto sector have come down to Rs 767 crore for the fortnight ended March 13, from Rs 971 crore for the previous fortnight.
Since last few months’ private sector banks have been experiencing negative growth in their credit flow in almost all sectors, as per the data available with the RBI. Until now none of the private banks have, publicly disclosed their plans to stop offering auto loans.
An anonymous executive working with a Mumbai-based private bank stated, “We are lending on a case-to-case basis. The bank has to keep in mind the creditworthiness of the borrower. We are playing conservatively and going slow”. The matter has also been brought in front of the Cabinet Secretary for the discussion in his recent meeting with the chief of top bankers and industry representatives.
The bankers communicated their views in a recent meeting with RBI and finance ministry officials in the presence of auto industry representatives. On the other hand the government and the banking regulator do not consider repossession as unlawful provided banks carry out this activity according to a set of procedure.
An anonymous finance ministry official informed, “Repossession of any mortgaged property is not illegal as misunderstood by some of the borrowers. The government is working out with the RBI and the auto industry to bring out guidelines, which will help end the ambiguity regarding recovery and repossession”.
In India more than 80% of all the vehicles are financed. According to industry estimates auto loan portfolio of all banks put together stands around Rs 1,00,000 crore.
The official stated, “The RBI will come up with detailed guidelines, empowering banks to auction repossessed vehicles”. He stated, “It may also include norms on getting repossessed vehicle back from the banks”. Even the public sector banks agreed to this that in the absence of proper repossession norms their business has got badly affected. But their better financial position has allowed them to continue offer auto loans in spite of risk involved.
Unwillingness of banks in offering auto loans can clearly be seen in the recent finance ministry data, which indicates that fresh sanctions of auto loans have come down for the 15 days ended March 13. The figures also depict the case of public sector banks. Fresh loans to auto sector have come down to Rs 767 crore for the fortnight ended March 13, from Rs 971 crore for the previous fortnight.
Since last few months’ private sector banks have been experiencing negative growth in their credit flow in almost all sectors, as per the data available with the RBI. Until now none of the private banks have, publicly disclosed their plans to stop offering auto loans.
An anonymous executive working with a Mumbai-based private bank stated, “We are lending on a case-to-case basis. The bank has to keep in mind the creditworthiness of the borrower. We are playing conservatively and going slow”. The matter has also been brought in front of the Cabinet Secretary for the discussion in his recent meeting with the chief of top bankers and industry representatives.
Bank offers schemes for Nano
Tata Nano is said to be a common man car promising value for money with its low pricing. On the other hand banks which are the preferred lenders for the car are offering various schemes. The schemes being offered by the banks are almost uniform in their charges and interest rates; only the quick and efficient service provided by them will help them score over their competitors.
The Nano loan schemes are being offered mainly by the public sector banks, with the big daddy, State Bank of India along with its associate banks is setting the movement in terms of interest rates and down payment. Other public sector banks are Central Bank of India, Union Bank of India, Indian Bank, Corporation Bank and Punjab National Bank. The private sector players include ICICI Bank and Kerala-based Federal Bank.
SBI’s, potential Nano customer is an employed professional drawing Rs 75,000 a year or a self-employed person making Rs 1 lakh a year.
SBI in its scheme is offering a Nano booking loan product with a one-time upfront booking fee of Rs 2,999 for the base model (which has an ex-showroom price of Rs 1.2 lakh in Delhi), Rs 3,499 for the intermediate model (Rs 1.40 lakh) and Rs 3,999 (Rs 1.70 lakh) for the high-end model.
An SBI official pointed out the eligibility criteria has been relaxed as the Tata Nano is designed to meet the demands of low-income customers.
If the customer name gets listed in the list of the lucky ones to get allotment of Nano, then the booking loan can be converted to a SBI Nano car loan. The loan will be provided up to a maximum of seven years at 11.75-12 per cent interest. The margin requirement for the loans will be set to 15 per cent. That is, for Rs 1 lakh loan, the customer would have to pay Rs 15,000 upfront to get the bank to give a loan for Rs 85,000.
Union Bank of India has set the minimum down payment for the base model at Rs 2,950 for the booking amount, for the second model it is Rs 3,459 and for the higher model it is Rs 3,952.
In case a customer wants to take a car loan by himself for the Nano, the bank’s auto loans rate is 11 per cent for three years and 11.25 per cent for three to five years.
An official from the bank told, “We expect very good response from rural and semi-urban areas.”
Corporation Bank has also set Rs 2,999 as down payment for the booking amount of the base model, Rs 3,744 for the second model and Rs 4,231 for the third model. The bank is charging 11 per cent in case the customer opts for a car loan once he or she gets allotment.
An official from the bank explained that at these rates, the monthly repayment will stand to Rs 3,274 per lakh for a three-year loan, Rs 2,187 on a five-year loan and Rs 1,739 for a seven-year loan.
ICICI Bank is hoping to take benefit from on its online booking facility through both the bank’s Web site and ICICI Direct.com, informed Mr N.R. Narayanan, General Manager, retail loans, He added, “We are very bullish about the Nano booking online as it offers huge convenience to our customers. ICICI Direct also has a lot of customers who log on for share trading”. The bank is offering car loans at 13.5 per cent for three to five years.
The Nano loan schemes are being offered mainly by the public sector banks, with the big daddy, State Bank of India along with its associate banks is setting the movement in terms of interest rates and down payment. Other public sector banks are Central Bank of India, Union Bank of India, Indian Bank, Corporation Bank and Punjab National Bank. The private sector players include ICICI Bank and Kerala-based Federal Bank.
SBI’s, potential Nano customer is an employed professional drawing Rs 75,000 a year or a self-employed person making Rs 1 lakh a year.
SBI in its scheme is offering a Nano booking loan product with a one-time upfront booking fee of Rs 2,999 for the base model (which has an ex-showroom price of Rs 1.2 lakh in Delhi), Rs 3,499 for the intermediate model (Rs 1.40 lakh) and Rs 3,999 (Rs 1.70 lakh) for the high-end model.
An SBI official pointed out the eligibility criteria has been relaxed as the Tata Nano is designed to meet the demands of low-income customers.
If the customer name gets listed in the list of the lucky ones to get allotment of Nano, then the booking loan can be converted to a SBI Nano car loan. The loan will be provided up to a maximum of seven years at 11.75-12 per cent interest. The margin requirement for the loans will be set to 15 per cent. That is, for Rs 1 lakh loan, the customer would have to pay Rs 15,000 upfront to get the bank to give a loan for Rs 85,000.
Union Bank of India has set the minimum down payment for the base model at Rs 2,950 for the booking amount, for the second model it is Rs 3,459 and for the higher model it is Rs 3,952.
In case a customer wants to take a car loan by himself for the Nano, the bank’s auto loans rate is 11 per cent for three years and 11.25 per cent for three to five years.
An official from the bank told, “We expect very good response from rural and semi-urban areas.”
Corporation Bank has also set Rs 2,999 as down payment for the booking amount of the base model, Rs 3,744 for the second model and Rs 4,231 for the third model. The bank is charging 11 per cent in case the customer opts for a car loan once he or she gets allotment.
An official from the bank explained that at these rates, the monthly repayment will stand to Rs 3,274 per lakh for a three-year loan, Rs 2,187 on a five-year loan and Rs 1,739 for a seven-year loan.
ICICI Bank is hoping to take benefit from on its online booking facility through both the bank’s Web site and ICICI Direct.com, informed Mr N.R. Narayanan, General Manager, retail loans, He added, “We are very bullish about the Nano booking online as it offers huge convenience to our customers. ICICI Direct also has a lot of customers who log on for share trading”. The bank is offering car loans at 13.5 per cent for three to five years.
Wednesday, March 25, 2009
Home Loan: It’s Need in Building a New Home
It is the dream of every individual to have his own home. If you are planning to build a new home, it is best to avail a good home loan. With the help of home loan, you not only get a home of your own but also save money in the long run.
What is a home loan?
Home loan is a plan in which a lender offers money to the borrower to build his home. On the other hand, the borrower has to pay back the loan amount with interest according to the terms of the agreement within a fixed period of time.
Nowadays, people often avail home loan while building a new home. It not only helps the borrowers to reduce taxes but also saves money. To help borrowers with different financial budget, different home loan companies have come up with generous lending rates and schemes. For those who cannot afford to pay the initial down payment, there are many organizations offering “zero down payment option”.
What are the documents needed in a home loan?
There are various types of home loans available in the market. Different financial organizations offer different loan plans to suit the need of their customers. But to avail a home loan, there are certain documents that you will need. Given below is the list of some of the documents that are needed in home loan:
• Personal id proof such as passport, driver’s license etc
• Photograph (passport size)
• Proof of date of birth
• Residence proof such as rent receipt or loan statement
• Current liability proof which include credit card statements, loan statements etc
• Income proof such as salary slips, financial statements etc
Before you avail a home loan, check out the interest rates offered by various banks and finance organizations to know about the current scenario of the market. You can also take the help of online information to be up-to-date about the home loan quotes. Avail a good home loan option and fulfill your wish of building a new home.
What is a home loan?
Home loan is a plan in which a lender offers money to the borrower to build his home. On the other hand, the borrower has to pay back the loan amount with interest according to the terms of the agreement within a fixed period of time.
Nowadays, people often avail home loan while building a new home. It not only helps the borrowers to reduce taxes but also saves money. To help borrowers with different financial budget, different home loan companies have come up with generous lending rates and schemes. For those who cannot afford to pay the initial down payment, there are many organizations offering “zero down payment option”.
What are the documents needed in a home loan?
There are various types of home loans available in the market. Different financial organizations offer different loan plans to suit the need of their customers. But to avail a home loan, there are certain documents that you will need. Given below is the list of some of the documents that are needed in home loan:
• Personal id proof such as passport, driver’s license etc
• Photograph (passport size)
• Proof of date of birth
• Residence proof such as rent receipt or loan statement
• Current liability proof which include credit card statements, loan statements etc
• Income proof such as salary slips, financial statements etc
Before you avail a home loan, check out the interest rates offered by various banks and finance organizations to know about the current scenario of the market. You can also take the help of online information to be up-to-date about the home loan quotes. Avail a good home loan option and fulfill your wish of building a new home.
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