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Banks mull interest rate cuts, but may hold on
Mumbai: It is a Catch-22 situation. The 50 basis
points (bps) repos rate reduction has led to a fresh discussions
on further easing of lending rates. But bankers feel that
lending rate reductions have to be done simultaneously
with a matching fall in deposit rates. "But we don’t
know, whether a cut in deposit rates will attract any
liabilities," a banker pointed out.
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Union
Bank to defer Rs 250-cr bond issue
Mumbai: Union Bank of India has decided to defer
its proposed Rs 250 crore tier 2 bond issue, with the
repos rate reduction changing the complexion of the market.
Sources with the bank said that it would review the rates
and will come into the market with a revised rate on a
later date.
The bank was planning to raise the funds, to shore up
its capital adequacy, at a coupon rate of 6.20 per cent.
The issue was planned to be privately placed and was expected
to be hit the market on August 27.
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Euronet’s
shared ATM network goes live
Mumbai: Cashnet, India’s first independent
shared automated teller machine (ATM) network went live
on Monday with IDBI Bank and Citibank ATMs. The other
existing founding member banks, Standard Chartered Bank
(StanChart) and UTI Bank are currently being linked to
the network and will join the network shortly. Euronet
expects 2,500 ATMs and 8-10 banks to participate by the
end of this fiscal year.
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HDFC
Bank introduces mobile point-of-sale terminals
Mumbai: HDFC Bank, on Monday launched India’s
first mobile payment solution for all debit and credit-card
holders. It has introduced mobile point-of-sale terminals,
which are supported by code division multiple access technology
in partnership with Reliance Infocomm and PoS terminal
manufacturer Schlumberger. The bank has tied up with ‘SangamDirectSM’,
a supermarket on phone from Hindustan Lever Ltd (HLL)
and with a Pizza Hut franchisee for the commercial launch
of this service.
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WDM
trades touch record high of Rs 13,912 crore
Mumbai: Record trades were seen on the National
Stock Exchange’s wholesale debt market (WDM) segment
at Rs 13,911.57 crore bettering the previous mark of Rs
10,470.92 crore recorded on July 25, 2003. The perk up
in turnover was attributed to the Reserve Bank of India’s
(RBI) move to reduce the repos rate by 50 basis points
to 4.5 per cent, which came into effect from Monday.
"Most traders were sitting light on their books last
week and were not prepared for a cut in the repos rate
which came as a surprise.
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Andhra
Bank, IDBI Bank Tie-up For ATM Sharing
Hyderabad: Andhra Bank has entered into a strategic
alliance with IDBI Bank here on Monday for the shared
ATM network, which enables leveraging each other’s
strengths in order to transfer maximum benefits to the
customers.
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UCO
Bank IPO opens on Sept 3
Mumbai: UCO Bank is aiming at doubling its business
to Rs 100,000 crore by the year 2007, according to V.P.
Shetty, chairman. Plans are also under way to adopt core-banking
solutions for which the bank has earmarked a capital expenditure
of Rs 184 crore for Information technology in the next
couple of years.
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CIFCO,
Sundaram Finance to get $72.5-m IFC loans
Chennai: Chennai-Based non-banking finance companies,
Cholamandalam Investment & Finance Company Ltd (CIFCO)
and Sundaram Finance Ltd, are to get loans from International
Finance Corporation, Washington. According to IFC's website,
CIFCO will get a subordinated loan of $ 27.5 million (about
Rs 100 crore), while Sundaram Finance will get a $ 45
million long term loan.
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Cauvery
Grameena Bank bets big on financing SHGs
Bangalore: The Cauvery Grameena Bank, which recorded
a profit of Rs 1.78 crore last year, hopes to more than
double that figure to touch Rs 4 crore in 2003-04. According
to its chairman, Shantaram Sharma, the bank would focus
on financing self-help groups, reducing NPAs and on selling
life insurance policies to savings and loan account holders
this year.
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IFC
to extend Rs 100-cr credit line to Chola
Chennai: Cholamandalam Inves-tment and Finance
Co Ltd (CIFCL), the non-banking finance arm of the Chennai-based
conglomerate Murugappa group, has lined up Rs 100-crore
credit line from International Finance Corporation (IFC),
Washington. The rupee loan will be used to spruce up the
lending operations of the company.
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