“Success is simple. Do what's right, the right way, at the right time.”
- SBI offers new, lower rates to old home loan borrowers:
State Bank of India’s old home loan borrowers have a reason to rejoice .The bank has decided to allow these borrowers to switch over to the new floating rates that are lower. Borrowers who have taken loans linked to SBAR (State Bank Advance Rate or the prime lending rate) are paying as much as 2-3 percentage points more than existing floating rates that are linked to the Base Rate. SBI’s Base Rate is currently at 10 percent, while the SBAR is 14.75 percent. Besides, the bank has also reduced the spread it charges over the Base Rate for home loans. There is no restriction on the tenure or the amount of the loan for customers to switch over. The bank is charging a fee of 1 percent of the outstanding amount to switch to the new rate. (Pg-1/BL-21.03.2012) - Motor insurance premiums set to go up from April 1:
Motor insurance premiums are set to go up by 15-20 percent from April 1.Industry experts say that a variety of factors will drive the increase in various categories of motor insurance. A major change will be the dismantling of the motor third party pool from March 31, 2012, which was announced by the Insurance Regulatory and Development Authority earlier. A declined Pool will come into force from April 1, 2012. (Pg-6/BL-21.03.2012) - RBI rejects Dhanlaxmi’s Priority Sector Waiver Request :The Reserve Bank of India (RBI) has turned down Dhanlaxmi Bank’s plea for a one-time waiver of priority sector lending target as tight liquidity forces it to rework its balance sheet, said two people familiar with the development. The banks balance sheet had degrown by about ` 1,500 crore in the past two months. Dhanlaxmi, which is facing management changes, may fall short of `1,400 crore in rural – biased priority sector lending. This figure may come down further to ` 700 crore after some reclassification of loans and last minute disbursements. The central bank has been firm in banks meeting the priority sector target. Recently, it rejected over `5,000 crore worth of loans from top lenders such as ICICI Bank and Axis Bank, citing that loans to commodity traders do not qualify as priority sector lending since it does not benefit farmers directly. (Pg-12/ET-21.03.2012)
- IRDA to decide on letting LIC retain stake in Banks :The Insurance Regulatory and Development Authority will soon decide on whether to allow LIC to retain its holding in public sector banks where it has breached the 10% limit.In the current quarter, LIC has invested over `8000 crore in state-run banks as the government was unable to meet the capital needs of these banks .In over half a dozen banks, LIC has crossed the limit of 10% prescribed by the insurance regulator. “We have asked for information from LIC on their investments in state–run banks. We will examine the data once we get,” said IRDA Chairman J Hari Narayan. LIC has increased stake in Punjab National Bank ,Dena Bank and Central Bank of India .It is looking to hike stake in other banks such as Syndicate Bank ,Indian Overseas Bank and Punjab & Sind Bank.
(Pg-12/ET-21.03.2012) - PNB –Metlife deal fails to meet A/c Norms :Metlife India Insurance may not be able to sell stake to Punjab National Bank, as the structure of the deal does not meet the Indian accounting standards, according to IRDA chief. “Under the accounting standards, self-generated assets can’t be valued.Brand is a self-generated asset, hence it cannot be valued,”said J Hari Narayanan, chairman, IRDA. “It (PNB-Metlife deal) will create a bad precedence for the insurance industry”. He said nobody can acquire share in a company without paying some price. The deal is structured in a way that PNB would buy 30% stake in Metlife India insurance for free.
(Pg-12/ET-21.03.2012) - SBI shareholders approve Rs 7,900 – cr capital infusion :State Bank of India said its shareholders have approved the Rs 7,900 – crore capital infusion by the Government. At present, the Government holds a 59.4 percent stake in SBI and post allotment, its stake would go up by 2-2.5 percent. (Pg-6/BL-21.03.2012)
“Take time to be sure, but be sure not to take too much time.”
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