UBI signs agreement with tractor-makers
Kolkata: In order to raise agricultural lending, UBI has tied up with L&T John Deere and Eicher Tractors for financing tractors at its rural and semi-rural branches. It has already signed MoUs with these tractor manufacturers.

The bank also proposed to finance modern agricultural equipment such as power tillers. For small farmers, especially those who have comparatively low credit requirement, the effective lending rate will be eight per cent. Talks were ono with a few select consumer durable manufacturers.
Back to News Review index page  

SIB plans more branches with ATM facility
Kochi: The South Indian Bank (SIB), in its Platinum Jubilee year, has opened three more branches with on-line ATMs at Chandigarh (Punjab), Panchukula (Haryana) and Paschim Vihar (Delhi). The branches networked with the centralised data centre here would provide anywhere-banking facilities.
Back to News Review index page  

SBI cuts housing, auto loan rates
Mumbai: State Bank of India (SBI) has decided to make housing loans and auto loans cheaper for its customers by 25-150 basis points from October 1. Apart from slashing interest rates on its retail loans, the bank has also introduced new tenure brackets in the housing segment, SBI officials said on Tuesday. The revised floating rate for home loans of up to five years is 7.75 per cent (eight per cent). SBI has introduced new brackets of 5-15 years and 15-20 years.
The rate for 5-15 years would be 8.25 per cent (8.75 per cent) while that for 15-20 years has been revised to 8.50 per cent (9.25 per cent).

On a fixed basis, interest rates would be higher by 0.25 per cent than those offered on floating rates. Similarly, interest rates on auto loans have been reduced to 9.5 per cent from 11 per cent for tenure of up to three years and 10 per cent for 3-7 years. SBI has been experiencing a slowdown in its rate of growth in housing in some metros. In large part, this has been due to the ruthlessly competitive environment in retail financing, with banks under-cutting each other to capture a larger market share in the wake of little or no credit pick-up in industry segments.
Back to News Review index page  

New India sets premium target of Rs 4,100 crore
Mumbai: New India Assurance Company has set a premium target of Rs 4,100 crore from its domestic operations during the year 2003-2004. This is 19 per cent higher compared to Rs 3,921.24 crore premium earned during 2002-2003 from its Indian operations. In the overseas operations, the company has targeted a gross premium of Rs 935 crore against Rs 891.55 crore in the previous year.

The company has recorded a 14.64 per cent growth in the overall gross direct premium at Rs 4,812.79 crore for the financial year 2002-03 from Rs 4,198.06 crore in the previous year. Indian operations contributed Rs 3,921.24 crore to the overall gross premium. Its overall net premium grew up to Rs 3,516.43 crore (Rs 3,068.33 crore). The highest growth was in the Motor Department, which increased by 28.81 per cent partly due to an upward revision in the motor tariff effective from July 1, 2002.
Back to News Review index page  

Bajaj Allianz eyes Rs 400-crore premium income
Kolkata: Bajaj Allianz General Insurance Company is expecting a premium income of Rs 400 crore in the current financial year. S Ghosh, chief executive officer, said in the first half of the current fiscal Bajaj Allainz had recorded a premium income of Rs 210 crore after selling six lakh policies. "We have been registering a growth of 17 per cent per annum. We are confident of sustaining this growth."

Ghosh was in town to sign a memorandum of understanding (MoU) with Golden Trust Financial Services (GTFS), an insurance selling body. GTFS has agreed to sell Bajaj Allianz's personal accident and householder policies. It has similar agreements with National Insurance and Iffco-Tokio in the general insurance segment. In the life insurance sector, it has agreements with Max New York Life and HDFC Standard Life.
Back to News Review index page  

ICICI Bank set to woo RIB holders
Mumbai: ICICI Bank is all set to tap the Resurgent India Bonds (RIB) proceeds following similar schemes from State Bank of India, Union Bank and Punjab National Bank. The foreign currency deposit scheme for non-resident Indians denominated in dollar, euro and pound sterling will be offered from the bank's offshore banking unit in Mumbai.

The indicative rate of returns vary from 1.62 per cent per annum for one year, 2.27 per cent for two years, 3.01 per cent for three years, 3.35 per cent four years, 4.02 per cent for five years and 4.43 per cent for six years on dollar deposits. The scheme offers term deposits with tenors ranging from three months to six years. The $5.5-billion RIB proceeds are to mature on October 1, 2003 and Indian banks have come out with various deposit schemes in an attempt to keep the monies in the country.
Back to News Review index page  

UBI to join hands with Myanmar bank
Kolkata: United Bank of India (UBI) is joining hands with Myanmar Economic Bank to identify opportunities in the growing trade relations between India and Myanmar. A tie-up with the overseas bank, which is said to be among the largest players in Myanmar's banking industry, will help UBI make its first foray into a foreign market. The idea is to strike a commercial relationship, initially through training and exchange programmes.

The Kolkata-based bank, which has a branch at Moreh near Indo-Myanmarese border, had already trained four officers of Myanmar Economic Bank, said Madhukar, CMD. "UBI is the only bank to be present in that remote sector. The bank is also considering opening new branches, beginning with one in Sikkim."
Back to News Review index page