document.writeln("

Banks expect rate hike of 0.5-1 per cent
Mumbai: A survey conducted by Federation of Indian Chambers of Commerce and Industry, (Ficci) has found that the banking industry expects interest rates to rise by 0.5-1.0 per cent.

Bankers also say unanimously that the highest growth in credit seen in 55 years, seen last year can be sustained for another three to five years.

96 per cent of the respondents to the survey said the current growth of non-food credit is sustainable for the next three-five years.

64 per cent of the participants expected a rise in interest rates in the near future. Of them, 74 per cent foresee a 0.5 per cent hike in interest rates, while the remaining 26 per cent expect it to increase by 1 per cent.

Bankers say the rise in interest rates would have an adverse impact on lending to corporates, particularly to AAA-rated borrowers that currently borrow at sub-prime lending rates.

The survey says that two-thirds of credit flow in the period under review was due to retail, housing and other priority sector loans.
Back to News Review index page  

ICICI Bank hikes NRE deposit rates
Mumbai: ICICI Bank has increased interest rates on its NRE savings accounts by 52 basis points (bps) from 3.71 per cent to 4.23 per cent. Interest rates on NRE fixed deposits have been increased by up to 20 bps for various maturities, while the rates on FCNR deposits have been increased by 21 bps for various maturities.

The last time rates on NRE savings accounts were revised was in July, while the rates for the NRE fixed deposits and FCNR deposits were revised in September according to a press release from the bank.

In the case of NRE fixed deposits, the rate for deposits of 12 months to 18 months has been increased to 4.94 per cent from 4.74 per cent; for 18-24 months the rate has been increased to 5.02 per cent from 4.84 per cent; for 24-36 months the rate has been increased to 5.1 per cent from 4.95 per cent; and for 36-120 months to 5.12 per cent from 4.99 per cent.
Back to News Review index page  

SBT revises FCNR, NRE term deposit rates
Thiruvananthapuram: State Bank of Travancore (SBT) has revised the interest rates on FCNR and NRE term deposits and NRE savings bank accounts with effect from October 1, 2005.

SBT has also increased the interest rate on NRE savings bank accounts from 3.70 per cent to
Back to News Review index page  

Canara Bank expects 18 per cent growth in FY-06
New Delhi: PSB Canara Bank expects to achieve 18 per cent growth in business at about Rs1,85,000 crore this fisca from
Rs1,57,000 crore in 2004-05.

Canara Bank posted a net profit of Rs1,110 crore in the last fiscal, expects loan portfolio and deposits to log handsome growth.
Canara Bank deposits stood at Rs97,000 crore and advances at Rs60,000 crore in 2004-05.

The bank's capital adequacy is over 12 per cent and is well placed to meet Basel II norms when it comes into effect.

The bank raised about Rs500 crore in Tier-II capital last week and may raise another Rs300 crore by fiscal end.

At present, the government holds 74-per cent equity in the bank and the bank can raise fresh capital and dilute the government up to 51 per cent.
Back to News Review index page  

PNB upbeat on business prospects in Punjab
Ludhiana: Punjab National Bank is expecting to enhance its total business size in Punjab to Rs 27,000 crore by the end of this fiscal as against Rs 25,000 crore in the last financial year. The bank is mainly focused on retail, agriculture, SME and exports sectors for business growth.

Recognising the key role of centralised banking solutions (CBS) branches in providing effective and quality services to its customers, PNB plans to introduce CBS in 76 branches in the State, raising the total number of CBS branches to 200 by the end of this fiscal.

At present it has 124 CBS branches in 28 centres in Punjab, which it plans to increase 200.

PNB has also decided to install six more ATMs in several cities of Punjab, which would increase the number of PNB ATMs to 54 by March 2006.
Back to News Review index page  

UCO Bank opens representative office in Malaysia
Kuala Lumpur: UCO Bank has opened a representative office in Malaysia and plans to follow up by opening a branch in the country soon.

A bank has to invest a capital of $80 million before it can open a branch in Malaysia.

Apart from a nine million-customer base in India, UCO Bank has currently 1,730 domestic and four overseas branches - two in Singapore and two in Hong Kong - and plans to open representative office in China by next March and another in Bangladesh soon.

The bank has also set its eyes on overseas expansion in Dubai, China, Thailand and Sri Lanka, Mr Sridar said. This is the bank's second venture in Malaysia.
Back to News Review index page