SBI staff defer Strike on 8th and 9th April

The SBI staff have called off their plan to strike the work on 8th and 9th April on the assurance given by management to resolve the issues.

Hitches mark first day of free ATM usage

On day one of free ATM usage across all banks, many customers returned empty handed as machines of many banks simply responded by saying ‘host is off line’. Non-payment of cash from the account of a different bank was also noticed today in some cases. The banks, the ATMs of which did not allow/are not allowing withdrawals from other bank accounts include State Bank of India, State Bank of Hyderabad, Axis Bank and HDFC Bank. When contacted, an HDFC Bank official said the transactions were interrupted for a couple of hours on Wednesday due to the annual closing. Interestingly, all banks are shifting the blame on ‘the bank at the other end’. A senior Andhra Bank official said he had no clue as to why it was happening. “However, as banks have to work out individual agreements with other banks for allowing free-usage of their ATMs, some might have temporarily halted the transactions. But this is not allowed as the RBI directive on free-ATM use has to be implemented,” he added.

Indian Bank, LVB cut term deposit rates

Indian Bank has cut its interest rate on FCNR (B) and NRE deposits with effect from April 1. For FCNR (B) deposits in US dollars, the revised interest rate is 2.97 per cent against 3.12 per cent earlier for deposits of one year and above but less than two years. For deposits over two years and less than three year, rate would be cut to 2.40 per cent from 2.69 per cent. Three years and less than four years the rate would be at 2.70 per cent. Deposits for four years and above but less than five years is fixed at 2.99 per cent from 3.40 per cent while it has been cut to 3.23 per cent for five years from 3.66 per cent. NRE term deposits have been cut to 3.72 per cent for one year and above but less than two years from 3.87 per cent. Banks has dropped it rates to 3.15 per cent from 3.44 per cent for two years and above but less than three years. For three years and upto five years the rates are at 3.45 per cent from 3.82 per cent. Lakshmi Vilas Bank has cut its on domestic term deposits from 25 basis points to 100 basis points depending on the maturity tenure with effective from April 2. For tenure of one year to less than two years it has been cut to 9 per cent from 9.75 per cent. In case of two years and less than three years, deposits rates have been cut to 9 per cent from 9.50 per cent.

United Bank likely to go for IPO in 6 months

United Bank of India plans to go in for an initial public offer in six-to-nine months with an equity issue of Rs 50-60 crore, according to the bank’s Executive Director, Mr T.M. Bhasin. At a premium of Rs 100 a share the bank would be able to mobilise close to Rs 500-600 crore worth Tier I capital. The restructuring would enhance the book value of the bank’s shares to Rs 84-85 (up from Rs 14 at present) and it would further improve to Rs 100 once the bank comes out with an IPO, he said. United Bank today announced reduction in interest rates on FCNR (B) and NRE deposits effective April 1.

TMB cuts domestic deposit rates

Tuticorin-based Tamilnad Mercantile Bank has reduced the domestic term deposit interest rates by 0.25to 1 percentage point on various maturities. Effective from Monday the rate has been reduced by 0.50 percentage point for the maturity period of 181 days and above, by 1 percentage point for the maturity period of 46 days to 90 days and by 0.25 percentage point for the maturity period of 91 days to 180 days. The revised rate of interest for deposits of one year and up to three years is 9.50 per cent and above three years, it is 9.25 per cent.