BANKING - 2017 MAY

May 1

SBI reduces term deposit rates by up to 50 bps.
Excess liquidity coupled with tepid credit appetite in the economy has prompted State Bank of India to cut retail term deposit rates of over two years maturity by up to 0.50 percentage points.
With effect from April 29, the interest rate on retail term deposits (of below Rs. 1 crore) between two years and less than three years is 6.25 per cent (against 6.75 per cent earlier).
The bank has also cut interest rates on two other maturity buckets - three years to less than five years and five years and up to 10 years - to 6.25 per cent each, from 6.50 per cent earlier.
Currently, the highest interest rate that the bank offers is 6.90 per cent on deposits in the one year to 455 days maturity bucket. The rate applicable to senior citizens is 0.50 percentage points above the rate payable for all tenors.

Punjab National Bank revises down MCLR by 0.10 - 0.15 per cent from May 1.
Public lender Punjab National Bank has revised down marginal cost based lending rates by 0.10 - 0.15 per cent for various maturities effective from May 1.
The maximum of 0.15 per cent has been affected for overnight marginal cost of funds based lending rate (MCLR) tenure to 8.05 per cent.
For one, three and six months as well as one, three and five years, the new MCLRs have been revised down by 0.10 per cent each.
The new MCLR for one-year tenure is 8.35 per cent and for three years, 8.50 per cent. For the six-month tenure, the new rate is 8.30 per cent.

May 2

ICICI to make 600 villages digitally-enabled in 2017.
The ICICI Group has made 100 villages digitally-enabled in 2017 and plans to transform 500 more by the year-end. Finance Minister Arun Jaitley while inaugurating the 100 ICICI digital villages.
The programme encompasses digitisation of transactions and other commercial activities, besides providing vocational training, credit facility and market linkage to help villagers earn a sustainable livelihood.
The 100 villages which have been transformed into 'ICICI Digital Villages' are located across 17 states in India. These include 16 in Gujarat, 14 each in Maharashtra and Madhya Pradesh, 12 each in Tamil Nadu and Karnataka and 11 in Rajasthan among others.
The villagers can use digital channels for banking and payments transactions. They can also open bank accounts using Aadhar-based e-KYC (electronic Know Your Customer), make cashless payments at retail stores using Point-of-Sale (POS) machines and use an SMS based mobile solution.

FinMomenta launches peer-to-peeronline lending platform Tachyloans.
Even as a final set of regulations is yet to be firmed up in the country's burgeoning digital peer to peer (P2P) lending space, a Singapore-based fintech start-up FinMomenta has launched its operations to tap individuals and businesses that are considered 'risky' by the bigger NBFCs and banks.
The company uses a proprietary credit scoring model enabled by Artificial Intelligence and Big Data to assess the creditworthiness of applicants. It also uses e-KYC and Aadhaar for verification of the borrowers that helps lenders to automatically invest in the recommended list of borrowers.
P2P lending service emerges as the next level of online lending in a credit-starved country like India. Individuals and businesses usually struggle to find loans and addressed this need by launching Tachyloans that offers both consumers and businesses significant advantages.
Tachyloans also analyses the social media profiles of its borrowers and uses psychometric analysis to understand their creditworthiness.

Indian Bank to raise Rs. 5,000 crore to fund infrastructure, housing.
Public sector lender Indian Bank will raise Rs. 5,000 crore to support loans for infrastructure as well as affordable housing.
A proposal for issue of long term bonds for financing of infrastructure and affordable housing up to an amount of Rs. 5,000 crore will be taken up for approval.
Providing affordable housing is one of the ambitious projects of the government, 'Housing for all by 2022'. Boosting infrastructure is another key area that has been accorded key priority.

May 3

'RBI, commercial banks spend Rs. 21,000 crore on currency management'.
According to NITI Aayog CEO Amitabh Kant the RBI and other commercial banks spend Rs. 21,000 crore every year on currency management operations.
Visa's report estimates the overall cost of cash upto 1.7 per cent of GDP. As the digital transactions rise in volumes, its costs, mainly in terms of MDR, will come down and will eventually become cheaper than cost of printing, storing, transporting, verifying, distributing and replacing currency.
Referring to the objectives of the government in bringing down the cost of digital payments, the major objective is to increase the adoption and use of digital payments in India so that cash usage drops to 5-6 per cent of GDP.

AIIB grants $160 million for Andhra Pradesh power project.
China-sponsored Asian Infrastructure Investment Bank (AIIB) approved USD 160 million loan for a power project in Andhra Pradesh, the first credit from the bank for an Indian project.
The AIIB, in which India is the second largest shareholder after China, has approved the project with the objective to strengthen the power transmission and distribution system in Andhra Pradesh.
The '24x7 Power for All' project is part of Government of India's 'Power for All programme' that was launched in 2014 to provide an efficient, reliable and affordable electricity to all consumers across selected states within five years from the start of implementation.
The project is co-financed by the World Bank. Andhra Pradesh is one of the first states selected for the roll out of the programme.


<--Back