UTI Bank opens lounge for HNI clients
Mumbai: UTI Bank has the bank opened its first priority lounge for its clients in the high net worth category.

Banking officials said the bank will offer a suite of 'sophisticated' banking and investment products to the HNI clients with the ultimate intention of maximising their wealth. Though these include vanilla banking products, sophistication will come through expert advice from the bank's relationship managers who are capable of understanding the complex diversity of the financial market and also the clients' investment needs that are as complex and diverse. The first priority lounge - which is the country's first by any private sector bank- is a 10,000 sq ft idea with spacious lobby area, cosy discussion cubicles and even a play area for children.

The advice will encompass investments in derivatives - including foreign exchange derivatives, cross currency deals, insurance, commodities, stocks as well as loan products specifically tailored for the clients.

The bank categorises those as priority customers who are have an involvement of over Rs6-7 lakh with the bank. The has more than 200,000 of them.

On cards is a Priority Lounge in Bangalore and Hyderabad each. There will be four Lounges by the end of the year 2006-07, and more in the days to come.
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RBI norms hit banks' IPO funding plans
The Reserve Bank of India's (RBI) move to curb banks' exposure to the capital markets has hit banks and non-banking finance companies (NBFCs) extending loans against security of shares for subscribing to initial public offers (IPOs).

Foreign banks and NBFCs, who have traditionally been the most active players in financing IPOs are expected to be badly hit, with RBI restricting banks' capacity to extend loans against shares to a single borrower for subscribing to IPOs to Rs10 lakh as against Rs20 lakh permitted earlier.

The cap of 40 per cent of the networth on the banks' consolidated exposure to the capital markets is expected to curtail the business expansion plans for many banks, which have been aggressively extending funds to consumers through their subsidiaries.
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