Kerala banks sweat it out
Thiruvananthapuram: Kerala banks have sweated out 2.74 per cent haul-up in their credit deposit ratio in the state over the last ten months. At the same time, its investment-linked CD ratio (worked out factorising investments to bank advances) has hit an all-time high of 51.45 per cent. According to the report made to the State Level Bankers Committee (SLBC) meeting, convened by Canara Bank, here, the CD ratio has climbed to 45.47 per cent in March 2003. This was 42.73 per cent in June 2002, and 44.6 per cent in December 2002. The Priority Sector Lending (PSL) was feared to go slack since as on December 2002, only Rs 6,674 crore could be achieved. However, amply crossing the Rs 8,912-crore target, PSL has hit Rs 11,867 crore on March 2003. In the March 2002-March 2003 period, deposit growth was only 14.99 per cent. The growth of NRI deposits has been at 16.96 per cent. Advances, meanwhile grew at an appreciable 22.41 per cent, explaining the progress in CD ratio. As on March 2003, the total deposits in Kerala banks is Rs 59,399 crore. Of this NRI deposits account for Rs 28,695.5 crore. The advances total to Rs 27,006.5 crore. In addition, the banks have invested Rs 30,559 crore in securities. From 42.71 per cent in March 2001, the CD ratio had gone up a tad to 42.73 per cent in June 2002. For the last 10 years, the sagging CD ratio had been a sore spot between banks and the successive governments in power in the state.
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RBI dates for line of credit on exports to Sri Lanka
Mumbai: The Reserve Bank of India (RBI) has fixed the terminal dates for opening letters of credit and utilisation of credit by Indian exporters under the line of credit (LoC) of $5 million to Hatton National Bank of Sri Lanka as November 19, 2004 and May 19, 2005, respectively. The credit became effective from May 20, 2003 and is available for financing export from India of capital goods, plant and machinery, industrial manufactures, consumer durables and other items which are eligible for being exported under the Exim Policy and related services to buyers in Sri Lanka, RBI said in a notification to the authorised dealers (ADs) in foreign exchange on Thursday. Export-Import Bank of India (Exim Bank) has concluded an agreement with Hatton National Bank Ltd (HNB), Sri Lanka on February 12, 2003, making available to the latter, a LoC up to an aggregate sum of $5 million.
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NHB sells entire stake in Vysya Bank Housing Finance
Mumbai: National Housing Bank (NHB) has sold its entire stake in Vysya Bank Housing Finance (VBHFL) to the promoters of Dewan Housing Finance Corporation Ltd (DHFL). NHB has around 5.30 per cent holding in VBHFL, which is now under the management control of Kapil Wadhawan-led DHFL, following its acquisition of 85.91 per cent stake in VBHFL. However, sources in the housing finance sector believe that the NHB sold off the stake for a consideration of nearly Rs 1.50 crore, at the rate which DHFL bought out stakes in the VBHFL. DHFL managing director Kapil Wadhawan declined to comment on this issue. DHFL has acquired the total stake in VBHFL for Rs 23.20 crore.
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SBI home loan package for Kerala varsity staff
Thiruvananthapuram: State Bank of India (Kerala circle) has entered into a memorandum of understanding with the University of Kerala, under which the bank proposes to extend housing loans under special package to the university staff (both teaching and non-teaching) with immediate effect. The scheme is similar to the package extended by the bank to employees of the Mahatma Gandhi University, Kottayam, last month. All employees who have put in two years of permanent service are eligible for these loans. The maximum amount of loan that the staff can avail themselves of has been fixed at the equivalent of 60 times the monthly basic pay or 90 per cent of the project cost. Loans are available for construction/purchase of new houses/flats, repairs/renovation and for takeover of existing loan accounts from other institutions. They are repayable over a maximum period of 18 years. The interest rate applicable would be 8.75 per cent per annum (fixed) for loans up to Rs 5 lakh and 9 per cent for loans above Rs 5 lakh.
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New India to extend cover to SBI loanees
Mumbai: New India Assurance Company and State Bank of India have joined hands to provide accident insurance cover to all loanees of the bank availing housing and car loans. The insurance scheme has been designed such that the premium will be entirely borne by SBI, instead of the loanees, said a press release. Housing and car loans disbursed from all the branches of SBI will come under the scope of the agreement from 1 July 2003. If the loanee dies due to accident, the entire outstanding loan with interest as on date of death will be paid by New India Assurance to the bank and the account squared off, the release said. An MoU to this effect has been signed by A V Purushothaman, director and general manager of New India Assurance, and T S Bhattacharya, chief general manager, SBI.
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