SBI ups PLR by 0.50 per cent
Mumbai: State Bank of India, the country's largest lender, has upped its benchmark prime lending rate by 0.50 per cent from 12.25 per cent to 12.75 per cent. The new rate will come into effect from April 9, the bank said in a press release.

Many other banks such as ICICI Bank and HDFC have already raised PLR by up to one percentage points, while Bank of Baroda has increased its PLR by 75 basis points. This is following the RBI's decision on March 30 to hike the repurchase rate at which it lends to banks and the deposits all banks must keep with RBI.
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SBI told to absorb unlisted arms
New Delhi: The finance ministry has asked the State Bank of India (SBI) to explore the possibility of merging its unlisted subsidiaries with itself.

The government has asked the country's biggest bank to look at merging unlisted subsidiaries, including State Bank of Hyderabad, State Bank Of Indore, State Bank of Patiala and State Bank of Saurashtra. This is because the government feels the process of merging an unlisted subsidiary would be easier.

More so, since all the unlisted subsidiaries are wholly-owned by SBI, the process would be much faster even from the regulatory aspect.

As a first step, SBI has created a unified IT platform and ATM network. Although the move to have single IT platform, ATM network and accounting in all SBI subsidiaries was aimed at uniform technological upgradation, it would help in the process.

Officials said the merger with the unlisted subsidiaries will not lead to a large-scale branch rationalisation due to diverse areas of operation. It would, in fact, add value in terms of business as well as enhancing financial acumen and reach of SBI.
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Pension market may double with help of reforms: Study
New Delhi: India's pension market in 2025 will be more than double its size now if the government introduces pension reforms according to a study paper by the Federation of Indian Chambers of Commerce and Industry and accounting firm KPMG on pension reforms in India.

The study said that after reforms, the pension system in India will push the market to around Rs4,06,400 crore in 2025 from Rs56,100 crore in 2002. Without reforms, the size of the market will touch Rs1,80,800 crore in 2025.

According to the study paper, pension liability as a percentage of gross domestic product, has grown from 0.6 per cent in 1993-94 to 1.66 per cent in 2002-03.

The study paper has asked for international investment in a portfolio since it offers better diversification of pension portfolio and higher returns. It said that the benefits of global diversification in emerging market economies are considered to be larger since there is lesser correlation with domestic and international markets.
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