SBH launches general credit card
Hyderabad: The State Bank of Hyderabad (SBH) has launched the general credit card here. In a press release, the bank said the credit card was aimed at its customers in rural and semi-urban areas to provide hassle-free credit based on assessment of cash flow. Customers with more than three years standing having sizeable deposit or loan accounts that are classified as standard assets are eligible for credit facility, with a maximum limit of Rs25,000. The credit facility would be in the nature of revolving credit. The cardholders would be entitled to draw cash from the specified branch up to the limit sanctioned, the release said.
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Mauritius tax-benefit only for listed cos
New Delhi: To check misuse of the Double Taxation Avoidance Agreement (DTAA) with Mauritius, the government has proposed that only companies listed on a recognised stock exchange can be eligible for capital gains tax exemption under the pact.

In addition, India has proposed that a company should have a total expenditure of $200,000 or more on operations in the residence state for at least two years from the date the capital gains arise.

The objective of the two new clauses is to not let a company benefit from capital gains exemption if its affairs are arranged primarily to take advantage of the benefits of the DTAA.

Also, a shell or a conduit company with negligible or nil business operations will not be allowed to enjoy the capital gains tax exemption in case the clauses are incorporated.
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Andhra Bank to expand in Gulf
Hyderabad: Andhra Bank has firmed up an action plan for a major expansion in the Gulf. The bank is planning to set up its representative offices in Qatar and Kuwait in the near future and spread throughout the region over a period of time. Towards this, the bank has started talking to the Indian Ambassadors in the West Asia and has also applied to the Reserve Bank of India (RBI) for permission. Once the RBI clears its applications, the bank proposes to approach the respective authorities of the Gulf countries.

The bank said it zeroed in on West Asia, since it has a huge workforce from Andhra Pradesh and Kerala. It opened its representative office in Dubai last year.
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Sri Lanka to treat Indian, domestic banks on par
New Delhi: Sri Lanka is offering to treat Indian banks on par with Sri Lankan banks under the proposed Comprehensive Economic and Partnership Agreement (CEPA).

Indian entities would be able to undertake mergers and acquisitions without stringent pre-approval requirements. They would, however, be subject to clear rules of origin which would be worked out by regulators of the two countries.

Sri Lanka has also agreed to examine a request by India that its institutional investors, including insurance companies and mutual funds, be allowed to freely trade in Sri Lankan government securities and other debt instruments.

The country is considering New Delhi's request for waiver of 100 per cent tax for acquisition of property for head offices and branches. New Delhi has, in turn, proposed to fully relax limits for employment of expatriate staff from the island nation in executive positions in Indian branches.

Sri Lanka has offered to increase the number of expatriate staff from three to six executives per bank and one more for each additional $5 million capital.
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Nabard may back Reliance retail push
Kolkata: National Bank for Agriculture and Rural Development (Nabard) is likely to join hands with Reliance to boost its agro retail initiative in West Bengal.

Reliance Retail, the retail arm of Reliance Industries, is planning to set up hitech mandis in West Bengal along with retail malls and would invest close to Rs2,000 crore in the retail initiative in the state.

The managing director of Nabard, K G Karmakar said Nabard it is keen to join hands with Reliance in its agro retail initiative in the state. The Nabard MD met chief minister Buddhadeb Bhattacharjee last week and expressed the bank's willingness to collaborate with the state government in various micro finance initiatives.

According to Karmakar, Nabard could provide back end support to this retail initiative through micro finance initiative to the smaller farmers. He pointed out that the bank is already associated with Reliance group in the latter's agro-initiative in Jamnagar. "We have joined hands with Reliance for medicinal plants. Nabard could do this here too," he added.
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SBI forecasts 25 per cent growth in loans in 2006-07
Mumbai: State Bank of India is forecasting a 25 percent growth in loans in 2006-07 as it feels that the current scenario is dynamic. The forecast is lower than the 30 percent SBI achieved in the year to March 2006 but still higher than the central bank's forecast of 20 percent for the banking sector for the year.

Om Prakash Bhatt the managing director of State Bank of India said, "Although there is strong demand for loans from companies to expand capacity and from individuals to buy homes and cars, bankers say rising interest rates could reduce the growth rate this year."

To fund loan growth and to meet capital requirements, SBI would raise about Rs250 crore ($543 million) in the year to March 2007, Bhatt said. He said he was watching the central bank, which is due to review policy on July 25, to take a call on interest rates.
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