IndusInd Bank Q2 Net Profit up by 30% at Rs.560.04 crore YoY basis

During the quarter, Bank successfully completed a Qualified Institutions Placement (QIP) issue allotting 5,12,18,640 equity shares of Rs. 10/-  each at a price of Rs. 845.00 per share aggregating to Rs. 4,327.98 crores and a  Preferential Allotment of 87,81,360 equity shares of Rs. 10/- each at a price of Rs.857.20 per share to the promoters aggregating to Rs. 752.74 crores.”

The Bank integrated Diamond and Jewellery financing business acquired from Royal Bank of Scotland N.V. involving takeover various assets and liabilities including an advance portfolio of Rs. 4,130.40 crores.

Commenting on the performance, Mr. Romesh Sobti, MD & CEO, IndusInd Bank said, “This quarter, the Bank has shown consistent performance in its bottom lines given the challenging times, both globally as well as in the domestic market.  However, the overall industry sentiment is looking positive. Our Operating Profit rose by 39% and our NIM has grown to a healthy 3.88%. Digitisation continues to be a core area of thrust for us. We remain committed to our promise of Responsive Innovation theme with the introduction of ‘Onthego’ Social Banking which offers customers a host of banking services including transactions through social platforms like Twitter and Facebook without the necessity of downloading an additional app.”

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Jan Dhan Yojna: Banks achieve target of opening 10 cr accounts

Jan Dhan Yojna: Banks achieve target of opening 10cr accounts

Banks have achieved the target of opening 10 crore bank accounts under the Pradhan Matri Jan Dhan Yojna (PMJDY) as target set by the government of India. It is noteworthy, that the government has started the scheme to open bank account of all the citizens to provide them the direct benefit of cash transfer.

The banks have achieved the target before the deadline of January 26, 2015. As of December 26, 2014, around 10.08 crore bank accounts have already been open in various banks in India.

Banks have issued 7.28 crore RuPay Cards as on December 22, 2014. Banks were also asked to complete insurance of passbooks to all account holders, a statement said.

This was reviewed in a meeting attended by executive directors of public and private banks, representatives of IBA, NPCI and UIDAI.

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Doha Bank CEO Honored as “Banking Innovator” at the Indian Innovator Awards

Doha Bank CEO Honored as “Banking Innovator” at the Indian Innovator Awards 

Dubai, United Arab Emirates Dr. R. Seetharaman, Group CEO, Doha Bank, the leading private commercial Bank in Qatar, was distinguished as a ‘Banking Innovator’ at this year's Indian Innovator Awards, Entrepreneur of the Year. The Award function was held at Westin Dubai, on December 09, 2014. Leading Entrepreneurs and Bankers from GCC participated in this event.


Speaking at the event Dr. Seetharaman gave insight on Global and regional economy. He said, “The US economy continues to recover and the dollar index has all reached all time highs recently which acknowledge the same. Japan and Eurozone struggle to recover. The slowdown in Chinese economy has also created concerns in financial markets. The GCC capital markets had fallen recently on account of fall in oil price after no action in the OPEC meeting. The Indian economy is reflecting confidence under the new government and the inflation pressures are easing.”

Dr. Seetharaman gave insight on business and technology trends in the Banking industry. He said “The costs of regulation and competitive pressures will lead to industry consolidation. Technology has transformed the way we bank and is one of the main drivers behind the accelerating pace of innovation in this sector. Online banking, mobile banking, chip and pin have now become part of our way of life for everyday banking. New non competitors have emerged in the financial services industry. Some of them include Walmart, Deutsche Postbank AG, La Banque Postale and Virgin Money. Online banking, payments, personal and business financial planning and credit are just a few of the areas targeted by such firms.”

Dr. Seetharaman gave his outlook on GCC Banking Sector. He said “Banks in the UAE have been prime beneficiaries of a revival in which the economy grew by more than 4 per cent last year as interest rates reached new lows and credit growth rebounded. In Saudi Arabia, private sector lending had grown by more than 11 per cent till Sept 2014. Public Sector lending had gone up by close to nine per cent till September 2014. In September 2014, Saudi Arabia's Bank watchdog introduced new regulations that cap retail lending and curb the fees that lenders can charge. In Oman, Lending grown is close to nine per cent till September 2014. Banks are trying to offset lower margins through additional fee generation. Banks lending to the private sector grew close to four per cent YTD till September 2014. In Qatar lending growth is more than ten per cent till Sept 2014.The Retail, Contracting and services sector are the key sectors which contribute to growth in 2014.”

Dr. Seetharaman highlighted the impact of digital banking. He said, “Digital Banking will be new channel to improve revenue growth and cross sell. The financial institutions will aim to improve customer experiences through innovative offerings in digital banking. Banks must connect with their customers every day. To be successful in the market, banks must engage every day, and to do this they must also promote and sell non-financial services. The bank can invites customers through social media channels and make customers emotionally involved. Social network enables Bank to be in close touch base with customers. Local GCC banks appear well positioned to build on a solid online banking trend. The digital banking has revolutionised Bank customer relationships.”

Dr. Seetharaman gave insight on Cyber security and related risk management. He said “Technology has increased many of the traditional Information security risks associated with banking activities. With the significant change on how Bank’s do business these days the rules have changed and the information security risks are greater than ever. The risks have further compounded today due to Privacy concerns, Vulnerabilities, Cyber terrorism, Insider Sabotage, Mobile Computing, Wireless Access and Spyware. Regulations are undergoing change to support managing Information Security Risk for financial institutions. Many Banks have established information security function, as part of its key functions and formed Information Security Councils, supported by the Bank’s executives. Bank’s introduce new Policies and Standards that addresses the dynamic nature of Information Security.”

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Wells Fargo Commercial Banking Primes for Eastern Expansion

Wells Fargo (NYSE:WFC), No. 1 in lead banking relationships with middle-market companies, said today that New York City will serve as its new Eastern Region hub for Commercial Banking. John P. Manning, a 26-year financial services veteran and Wells Fargo executive vice president, will lead the continued expansion of the company’s Commercial Banking business in the Eastern U.S. and Eastern Canada. He is based at Wells Fargo’s Manhattan office, 150 East 42nd St.

Manning succeeds Carlos Evans, a longtime Wells Fargo Commercial Banking leader in Charlotte, North Carolina, who retired last May. Manning most recently led Wells Fargo’s 14-office Commercial Banking division in Southern California. Before that, he oversaw the Greater Los Angeles division. His teams doubled their loan portfolio between 2009 and 2014.

In the last few years, Wells Fargo Commercial Banking has grown rapidly in the East, with new operations in Maryland, Boston, and Toronto, among others. Manning’s new Eastern territory includes 23 Regional Commercial Banking Offices in 13 states, plus the District of Columbia and Eastern Canada. Wells Fargo has identified more Eastern urban and suburban markets for possible Commercial Banking expansion, including New York boroughs and New England communities where middle-market businesses cluster.

“As middle-market companies are feeling more confident about the economy, they’re seeking opportunities to invest in their operations, their people, and their communities,” Manning said. “Wells Fargo’s top priority throughout this region is putting resources on the ground. That means local teams, local decisions, and local lending authority where our customers live and work.”

A native of New Jersey, Manning earned his bachelor’s degree in finance from Rutgers University. He joined Wells Fargo’s Commercial Banking group in 1994 as a relationship manager in Los Angeles. He progressed through the organization and was promoted to head of the Greater Los Angeles division in 2009. Commercial Banking unified its Southern California offices into one region in 2013 with Manning at the helm.

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IDBI Federal backs home grown talent; elevates Vighnesh Shahane as CEO

IDBI Federal Life Insurance, a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe, today announced the appointment of Vighnesh Shahane as the Chief Executive Officer & Whole Time Director of the Company.

Speaking on the occasion, R. K. Bansal, Executive Director, IDBI Bank, who in the interim had taken additional charge as the Acting CEO, IDBI Federal, said, “At IDBI Federal, we believe in recognising talent and creating leaders from within the organisation. In his capacity as a channel head, Vighnesh has brought about a positive change and under his leadership, the Bancassurance channel registered unprecedented growth.” Mr. Bansal added, “We are at a defining point in the life insurance industry in India. Despite the challenging macro economic conditions and dynamic regulatory environment, our economy promises huge potential for life insurance in the longer term. Vighnesh, with his diverse exposure across various facets of business, will play a key role in leading IDBI Federal towards achieving its goals.”

Speaking about his new role, Vighnesh said, “IDBI Federal is a young company that has embarked on a journey to change the way life insurance is sold and bought in the country. It is this approach that has helped us withstand the challenge of the times and emerge as a growing company despite these challenges. It is my honour to lead this dynamic company through its next phase of growth.” Having represented Mumbai in the prestigious Ranji Trophy, Vighnesh has modelled his leadership style on team work and collective contribution.

In his career spanning over 20 years, Vighnesh has worked with leading financial organisations across geographies. He brings with him, a rich experience in various facets of business like sales management, strategy and new business development.

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HDFC Ltd Financial Results for the Nine Months Ended December 31, 2013, Consolidated and Standalone

The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its unaudited consolidated and standalone financial results for the third quarter of the financial year 2013-2014, following its meeting on Wednesday, January 22, 2014 in Mumbai. The accounts have been subject to a limited review by the Corporation’s statutory auditors in line with the regulatory guidelines.


CONSOLIDATED FINANCIAL RESULTS

For the nine months ended December 31, 2013, the consolidated profit after tax stood at Rs. 5,533.12 crores as compared to Rs. ­­­4,556.59 crores in the corresponding period last year – an increase of 21%.

The consolidated profit after tax for the nine months ended December 31, 2013 does not consider the charge in respect of the redemption premium on Zero Coupon Debentures amounting to Rs. 268.42 crores (net of tax) {Rs. 355.49 crores for the nine months ended December 31, 2012}.

Had the aforesaid charge been considered, the profit after tax for the nine months ended December 31, 2013 would have been Rs. 5,264.70 crores compared to Rs. 4,201.10 crores, representing an increase of 25%.

The share of profit from subsidiary and associate companies in the consolidated profit after tax grew to 33% for the year ended December 31, 2013 compared to 28% in the corresponding period of the previous year.

 Performance Highlights

• 21% increase in the consolidated profit after tax to Rs. 5,533 crores for the nine months ended December 31, 2013 -- 25% increase (after reducing the redemption premium on Zero Coupon Debentures)
• Standalone profit before dividend, sale of investments and tax increased 17% to Rs. 4,502 crores for the nine months ended December 31, 2013
• Standalone Net Interest Margin for the nine months ended December 31, 2013 at 4.0%, spread on loans at 2.25%
• 27% growth in the individual loan book (after adding back the loans sold in the preceding 12 months)
• Gross non-performing loans reduced by 2 basis points to 0.77% of the loan portfolio as at December 31, 2013

STANDALONE FINANCIAL RESULTS

Financials for the Nine-months ended December 31, 2013

For the nine-months ended December 31, 2013, the profit before dividend, sale of investments and tax stood at Rs. 4,501.83 crores as compared to Rs. 3,863.23 crores in the corresponding period previous year, representing a growth of 17%.

The profit after tax for the nine-months ended December 31, 2013 stood at Rs. 3,717.14 crores as compared to Rs. 3,293.13 crores in the corresponding period previous year, representing a growth of 13%.

Financials for the quarter ended December 31, 2013

For the quarter ended December 31, 2013, the profit before dividend, sale of investments and tax stood at Rs. 1,646.78 crores as compared to Rs. 1,403.60 crores in the corresponding quarter of the previous year, representing a growth of 17%.

Dividend and profit on sale of investments during the quarter ended December 31, 2013 were lower at Rs. 110.93 crores as compared to Rs. 141.50 crores in the corresponding quarter of the previous year.

The profit after tax for the quarter ended December 31, 2013, stood at Rs. 1,277.71 crores as compared to Rs. 1,140.10 crores for the corresponding quarter of the previous year, representing a growth of 12%.


TOTAL ASSETS

As at December 31, 2013 the total assets of HDFC stood at Rs. 2,18,286 crores as against Rs. 1,83,770 crores as at December 31, 2012 – an increase of 19%.


LENDING OPERATIONS

As at December 31, 2013, the loan book stood at Rs. 1,92,266 crores as against Rs. 1,60,941 crores as at December 31, 2012. Loans sold in the preceding twelve months amounted to Rs. 3,263 crores. The growth in the individual loan book, after adding back loans sold is 27% (24% net of loans sold). The growth in the total loan book, inclusive of loans sold is 21% (19% net of loans sold).

89% of the incremental growth in the loan book during the nine-months ended December 31, 2013 came from individual loans.

As at December 31, 2013, the total loans outstanding in respect of loans sold/assigned stood at Rs. 16,211 crores. HDFC continues to service these loans under these transactions and is entitled to the residual interest on the loans sold. The residual interest on the individual loans sold is 1.25% p.a. and is being accounted over the life of the loans.


Spreads and Net Interest Margins

The spread on loans over the cost of borrowings for the nine-months ended December 31, 2013 stood at 2.25%.

Net Interest Margin for the nine-month period ended December 31, 2013 was 4.0%.


Non-Performing Loans

Gross non-performing loans as at December 31, 2013 amounted to Rs. 1,478 crores. The non-performing loans reduced from 0.79% of the loan portfolio in the previous quarter to 0.77%. The non-performing loans of the individual portfolio stood at 0.57% while that of the non-individual portfolio stood at 1.18%.

As per the NHB norms, the Corporation is required to carry a total provision of Rs. 1,357 crores.

The balance in the provision for contingencies account as at December 31, 2013 stood at Rs. 1,823 crores of which Rs. 532 crores is on account of non-performing loans and the balance Rs. 1,291 crores is in respect of general provisioning on standard loans and other provisions. This balance in the provision for contingencies is equivalent to 0.95% of the portfolio. The Corporation carries an additional provision of Rs. 466 crores over the regulatory requirements.


Investments

As at December 31, 2013, the unrealised gains on HDFC’s listed investments amounted to Rs. 33,379 crores. This excludes the appreciation in the value of unlisted investments.


CAPITAL ADEQUACY RATIO

Consequent to the reduction in risk weights of mortgages, HDFC’s capital adequacy ratio increased to 19.1% of the risk weighted assets, as against the minimum requirement of 12%. Tier I capital adequacy was 16.6% as against a minimum requirement of 6%. If the investment of HDFC Bank were to be reduced from Tier I capital instead of being treated as a 100% risk weight, the adjusted CAR would be 15.8% of which Tier I: 13.3% and Tier II: 2.5%.


DISTRIBUTION NETWORK

HDFC’s distribution network spans 351 outlets, which include 91 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers additional locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and other third party selling associates.

To cater to non-resident Indians, HDFC has representative offices in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia.

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Top 20 Banks in the World

In the list of top 20 banks in the world as per their total assets as on 30th September 2012, Deutsche Bank of Germany tops with total assets of $USD 2,809.89 billion as on 30th September 2012 (The exchange rate on September 30, 2012)in balance sheet of the bank.

In the list published by relbanks.com, Mitsubishi UFJ Financial Group of Japan is at second position with $USD 2,803.42, and Industrial & Commercial Bank of China of China is at third with total assets of $USD 2,763.59 in the same period.

Here is the list of the top 20 banks in the world in 2012 as on 30th September 2012 (Balance Sheet):

1. Deutsche Bank, Germany
2. Mitsubishi UFJ Financial Group, Japan
3. Industrial & Commercial Bank of China, China
4. HSBC Holdings, UK
5. Barclays PLC, UK
6. BNP Paribas, France
7. Japan Post Bank, Japan
8. JPMorgan Chase & Co., USA
9. Credit Agricole SA, France
10. Royal Bank of Scotland Group, UK
11. Bank of America, USA
12. Mizuho Financial Group, Japan
13. China Construction Bank Corporation, China
14. Agricultural Bank of China, China
15. Bank of China, China
16. Citigroup Inc, USA
17. Sumitomo Mitsui Financial Group, Japan
18. Banco Santander, Spain
19. Societe Generale, France
20. ING Group, Netherlands

Source: Top Banks in the World 2012

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NPA is reflection of the slowdown in the economy – P. Chidambaram

Photo Credit - The Hindu Business Line

Today Finance Minister P. Chidambaram had a meeting with nationalized bank chiefs about making strategies to recover from the economic slowdown. The FM said to the fellow meeting members that Govt. will be working to make a strategy to help the industry segments which are affected by the economic slowdown.

After the meeting with Bank chiefs FM addressed to the press and said - “If the economy improves and growth improves, the sectors (which are not doing well) will recover. But in the meanwhile, we will have to do some handholding and try to help these sectors recover”. In the above address he also mentioned about the Non Performing Assets (NPAs) where he said: “NPA is reflection of the slowdown in the economy’’. He said Govt. is making strategies to look upon the rising NPAs and find other ways to help them perform better. If we go on to the statistics NPAs of Public Sector Banks (PSUs) has been increased by 0.98 percent in this fiscal year due to slow in industries like construction, telecom infrastructure, textiles, food processing and steel.

There are some positive points mentioned by FM where he included that housing and automobile sectors have been doing well in this subdued economy. FM also mentioned that Government will do some capital infusion of around Rs. 15,000 Crore to PSUs like Indian Overseas Bank, Central Bank of India and Bank of Maharashtra.

Earlier this week it is announced that FM will be meeting National bank chiefs to review the financial performance of some under-performing sectors in this subdued economy. Other than that the agenda also included to review the first half economic numbers, deteriorating assets and how to plan for healthy credit growth. The other attendees of this meeting were SBI Chairman, Pratip Chaudhuri, Punjab National Bank CMD, K.R. Kamath, and Indian Bank Association CEO, K. Ramakrishnan.

Follow us over Twitter @Neel5 or like Business News This Week in Facebook for more updates.

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LIC to invest in Vijaya Bank

Business News: The public sector bank - Vijaya bank cleared on Wednesday about the allotment of shares worth Rs 147 crore to Life Insurance Corporation (LIC) on Wednesday, according to media reports.

Vijaya Bank has allotted 2,28,72,258 shares at Rs 64.27 to the LIC on a prefential basis. The shares of Vijaya Bank were traded at Rs 54.35 at NSE & BSE on Thursday (at 12:30pm). However, the shares were traded at Rs 54.80 on Wednesday because of the allotment of shares to LIC.

The infusion of capital from LIC to Vijaya Bank would help the bank over its performance in the market.

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SBI hikes Int Rate on FDs

Business News: The State Bank of India (SBI) has hiked the interest rate on the short term fixed deposits up to 1 per cent. Now the deposits of seven to 90 days will attract interest of 10 per cent, and similarly the deposits for a the period 91-197 will get 9.75 per cent and 8 per cent on the fixed deposits for 181 to 1 year. The hike in the interest rate will be effective from 28 March 2012.

However, the impact of hike in the interest rates on fixed deposits weighted high on the shares of the State Bank of India, the indices fell by 1.62 per cent at BSE Sensex on Wednesday.

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NPCI launches RuPay the cheapest Debit Card

Business News: National Payment Corporation of India (NPCI) has launched the cheapest debit card - RuPay on Monday. The debit card will have direct competition with the major players like Visa and MasterCard in the financial market.

The debit card RuPay will be a good option for the banks as well, which can give them big relief from being paying high participation fees to other cards. The customers of five public sector banks - State Bank of India, Axis Bank, Bank of India, Bank of Baroda and Union Bank will have this facility.

However, the RuPay has not been entered into the arena of credit cards, it is believed that by next fiscal the RuPay will launch its credit card making payment options more easier in India. In India there are around 2 lakh RuPay ATM and micro-ATM cards available in India.

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RBI slashes CRR by 0.75%

Business News: The Reserve Bank of India (RBI) slashed the cash reserve ratio (CRR)by 0.75 per cent to 4.75 per cent from 5.5 per cent. The move will help to infuse around Rs.48,000 crore into Indian economy.

The infusion of money into the economy would help to address the inflationary pressure, which is high due to less velocity of funds in the country. The CRR is the portion of deposits that banks need to keep with the apex bank.

The low CRR will also help the banks for having higher liquidity into the market, which ultimately will have greater impact on the economy.

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Airtel Money Magic in Odisha

Bhubaneswar: Aitel Money, India's first of its kind mobile wallet service has been launched in Odisha after the first phase of launch in Delhi, NCR and Chennai in 2011. Now the airtel money will be available in the five cities in Odisha - Bhubaneswar, Berhampur, Cuttack, Jharsuguda and Rourkela. And around 54 outlets will be operated to support the mobile wallet service in Odisha.

On Monday, March 5, Mr. P D Sharma, CEO, Kolkata, West Bengal & Odisha Telecom Circles, Bharti Airtel demonstrated the airtel money at Hotel Hindustan International (A-112, Kharvel Nagar (Janpath), Unit - III, Bhubneswar - 751001, Odisha, India) in Bhubaneswar. The event was attended by media professionals.

Demonstrating the launch of airtel money, Mr Sharma has also shown a live example of ordering a coffee and also recharged a mobile of journalist present there. That

Now the people having airtel connection with their handsets can have the joy of mobile wallet in Odisha too. The features of having mobile wallet service like - Airtel Money would attract more and more people those are having habit of using plastic money.

Earlier, people were reluctant to use plastic money or payments made through using credit or debit cards. But now the scenario has been changed, people prefer to use plastic money, which is also going to dominate the velocity of currency in the country.

With the introduction of mobile wallet services like Airtel Money, those would be easy and secured way to carry money and for the you no need to got to any ATM to withdraw, instead you can pay the money directly to retailers.

No worries if you lost your mobile loaded with Airtel Money package, it is secure and your money will be safe as claimed in the event. There are two kids of airtel money wallet - Express Account and Power Account.

The daily spending limit for Express account is Rs.10,000 while Rs.50,000 for Power Account. According to the press release, Airtel has established merchant partnership with over 1800 brands in India.

Now mobile services would make your shopping very easy and smart. And using the mobile wallet like Airtel Money is the smartest way for shopping across India. Once you activated your airtel money on your mobile device do not forget to carry it with you for shopping, no matter if you have carried your wallet or not!

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SBI cuts Home Loan Processing Fee

Business News: The largest bank of India, State Bank of India has cut the loan procession fee on the home loans. The bank cut around half of the processing fees on the home loans. The move will help to attract more and more home loan customers to choose the bank to finance their home loans.

According to media reports, the SBI will charge Rs. 10,000 as the procession fees for home loans above Rs.75 lakh instead of Rs. 20,000 processing fees. Similarly, the bank has reduced the fees on home loans between Rs. 35 to 75 lakh to Rs.6,500 from Rs.10,000. However, the processing fees for the home loans below Rs. 30 lakh to remain at 0.25 per cent.

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SBI net profit dips to Rs.1,584 crore

The net profit of Sate Bank of India (SBI) dipped to Rs.1,584 crore by 45.7 per cent for the quarter - April to June in the current fiscal, from Rs 2914 crore in the previous quarter.

The net profit of SBI plunged following higher provisioning for bad loans and investment depreciation. But the bank’s net interest income (NII) was up by nearly 33 per cent to Rs 9,699 crore.

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Mobile Transactions to increase in India by 2015

According to The Boston Consulting Group (BCG), a global management consulting firm, the mobile phone banking including the payments and transactions in India to grow by Rs.20,250 crore nby 2015.

Internet has brought the revolution in the banking sector too. And the advancement of technology in the telecommunication sector also brought revolution in mobile banking.

The banking industry has been growing as the internet usage for banking transactions.

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Agricultural Bank of China to sell a 15% stake

The Beijing- based Agricultural Bank of China Limited (ABC) will sell a 15% stake i.e 22.235 billion shares in Shanghai and 25.411 billion shares in Hong Kong. ABC is one of the four biggest banks in China and it will come out with the world’s largest initial public offerings in Shanghai and Hong Kong.

In the year 2006 China’s biggest bank the Industrial & Commercial Bank of China raised $21.9 billion but now ABC is going to break this record by raising $30 billion in world’s biggest IPO.

According to the prospectus of Agricultural Bank it had 320 million customers and 23,624 outlets in China at the end of last year but the prospectus did not give a price range for the share sale.

It has been reported by some of the media institutions that ABC has not disclosed its issue price. There is a hike in the bank’s profit by 26 percent to 65 billion yuan ($9.5 billion) in 2009 and it is expected that the net income will rise to at least 82.9 billion yuan this year. This forecasting has been done by some media experts by referring the bank statements.

Agricultural Bank, China’s fourth-largest by assets is now in tough competition with its rivals, ICBC, the Bank of China and China Construction Bank in Shanghai and Hong Kong. It is now aiming to achieve its expected profit.

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RBI Hikes Repo Rate to 5% and Reverse Repo Rate to 3.5%, Intereste Rates by 25 bps

RBI Hikes Repo Rate to 5% and Reverse Repo Rate to 3.5%, Intereste Rates by 25 bps

The Reserve Bank of India (RBI) has hiked the interest rates by 25 bps on Friday evening.


The hike by the RBI was unexpected, but the impact would be high on home loans and auto loans.

 Experts believer that the home loans and auto loans rates will go up following the hike in the interest rate by the Apex Bank.


The RBI has raised the benchmark short-term interest rates - repo (banks pay the repo rate to borrow from RBI) to 5 per cent from 4.75 per cent and reverse repo rates (banks receive parking surplus funds with RBI) to 3.5 per cent from 3.25 per cent. interest rate is the greatest instrument the RBI has to contain the inflation.

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Are you investing in Mutual Funds?

Business News This Week: This question comes to mind obvious as the economy once was in the global downturn, but recovering. During the economic slowdown the investment was considered as  a big concern. The business of investment is also down, in other words the market of mutual funds also down. According to media reports, mutual fund assets shed by four per cent in January this year.  

The investors those had good expectation out of their mutual funds but the result might differ. The decrease in the mutual fund assets shows the clear impact of the global  slowdown. The hoarding of money is mandatory, whenever there is business or market is down. The hoardings by individuals or household weigh high on the investments and particularly on the investments involving risk factors. While on the other hand the reserves in bank or deposits in bank go up during such crisis time.

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SBI plans to hire 27000 staff; may open more branches

Business News This Week: The State Bank of India (SBI) is reportedly planning to recruit around 27 thousand staff and according to media reports the SBI may also open many new branches. This really a good news for the students those aim to associate with banking career.

Students across India have been trying to crack the banking exams. The job options with SBI are given priority by the banking aspirants. Most of the banking students always try to appear the probationary officer exam and also most them try to crack the clerical exam. Clearing any exam of SBI is the first priority for the aspirants. In the meanwhile, the news about fresh recruitment is a great deal for the banking aspirants.

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