CSIS

CSIS Central Scheme of Interest Subsidy for Education Loans It is well known fact that education is one of the major concerns of the government and nobody should be denied of education only because he is poor. To help the economically weaker section students the central government has introduced an interest subsidy scheme. The Central Government has introduced a scheme to provide Interest Subsidy upto moratorium period of educational loans availed by economically weaker section of students for their technical/professional studies in India conducted by recognized institutions from scheduled banks. The period of moratorium means Course period plus one year OR six months after getting the job which ever is earlier. Economically Weaker Section students means students whose family/parental income from all sources is less than Rs.4.5 lakhs per anum. The income assessing authority will have to be notified by each state as per directives of Ministry of HRD, Government of India. Majority of states have declared Income certificate issued by Tahsildar is valid income proof. The student will get full interest subsidy on his loan amount till course period plus one year or six months of getting job whichever is earlier. The student will also be eligible for getting 1% interest subsidy that he is getting for prompt repayment of interest debited during the month on his education loan account within 30 days of debit. Applicability of student: 1. Economically weaker section students 2. Studies in India 3. Professional and Technical studies 4. From recognized institutions 5. Loans taken from Scheduled Banks 6. Only for students who have taken professional/technical courses after 10 + 2 Interest subsidy if available only once for a student either for graduation or postgraduation. But when the student undertakes integrated course then CSIS is applicable in that case. The subidy will not be available once the student discontinues the course OR expelled from the college or disciplinary grounds. But where the student discontinues the course due to medical reason and if he provides sufficient proof for the same the CSIS can be given. The marks card of the student who had availed CSIS scheme bears a Tag to the effect that the student is covered under CSIS scheme to check for the regular repayment and the employers can identify the loanee. Canara Bank will be the Nodal Bank for the scheme. The Government will request for claim in specified formats. All banks will forward their claims to Canara Bank in those formats which in turn will be claiming it from the Government and the received subsidy will be distributed to member banks as per their claims. Applicability of the Scheme: The scheme is implemented from 2009-10 i.e., from 1st April 2009. All loans taken wef 1st April 2009 which fulfills the conditions set out under the scheme will be covered under CSIS and also the loans sanctioned before 1st April 2009 where part disbursement is made on or after 1st April 2009 which fulfills the scheme guidelines will be covered under the scheme to the extent released after 1st April 2009. The role of Student: 1. If you have taken loan from any scheduled bank and you fulfill the conditions set out to get subsidy kindly visit the bank branch where you have taken education loan to get full scheme guidelines. 2. Provide income certificate to bank authorities as per the formats provided by bank and as per the income assessing authority for your state (mostly Tahsildar). 3. Sign agreement along with your parent and bank to get yourself covered under the scheme. 4. Now you are covered under the scheme. The role of Bank: 1. If any student approaches you kindly verify if he can be covered under the scheme by going through guidelines. 2. If he can be covered then get Income certificate from the student (income of parent/family) 3. Get the agreement as set out by Ministry of HRD, Government of India duly signed by student and his parent. 4. Send the claim (half yearly/ yearly) as called by Nodal Bank (Canara Bank) or your Controlling Office. 5. On receipt of the claim kindly credit to loan account of student.

Bank Stocks

The closing price of Bank Stocks on NSE as on 03-Feb-2012 (Value in Rupees) Allahabad Bank 173 Andhra Bank 110 Axis Bank 1099 Bank of Baroda 763 Bank of India 349 Canara Bank 483 Central Bank 86 Corporation Bank 430 Federal Bank 403 HDFC Bank 506 ICICI Bank 915 IDBI Bank 100 Indian Bank 234 Indian Overseas Bank 88 IndusInd Bank 299 ING Vysya Bank 326 Kotak Mahindra Bank 517 Oriental Bank of Commerce 288 Punjab National Bank 962 State Bank of India 2103 Syndicate Bank 101 UCO Bank 72 Union Bank of India 229 Yes Bank 345

Base Rate

Base Rate is introduced in Indian banking system wef 01.07.2010. The base rate relates to interest charged by the banks on their advances. Before introduction of base rates Indian Banks used to give loans to corporates at very low rates. The amounts involved were also huge. Hence RBI felt the need to floor the rate charged by banks hence base rates were introduced. The base rates relates to the minimum rate that the bank can charge on any loan to anyone. They cannot lend below that rate. The banks were given freedom to fix their base rate based on their cost of funds, liquidity position etc.

Defaulters Photos to be published in newspaper

Are you aware that while signing loan documents banks take a undertaking from you which allows them to publish your photo in whichever mode they like if you default your loan payments. This also allows them to share data with CIBIL and RBI. They can also share your information with any one. Hence Beware. Now, banks are thinking to publish the photos of defaulters in the newspaper.

SB interest calculation

Interest on Savings Bank account is now being calculated on day end balance from 1st April 2011. Thus ending menthod of calculating SB interest on minimum balance during the month from 10th to last day.

Bankers you will surely need this

Auto Classification of Assets

Have you taken any loan from the bank and not so prompt in making repayment, then be cautious as the banks have introduced Auto Classification of its advances as per RBI's Directives. Auto classification means the system automatically downgrades/upgrades your account based on your repayment and the repayment terms of the bank. Till now banks were doing it manually and there were chances that the branch did not make your account as Non-Performing Asset even if your loan is overdue for more than 90 days as stipulated by RBI. Now the system automaticlly does the things and hence more transperancy in NPA declaration by the banks. All banks are mandatorily switched to Auto Classification from December 2011.

Recruitment for Punjab and Sind Bank

Government Sector bank, Punjab & Sind Bank has called applications to fill various vacancies for its offices all over India. Clerks : 300 posts in various states (UR-158,OBC-70, SC-56, ST-10), Pay Scale : Rs. 6200 – 23900, Age : 18-28years Probationary Officer : 450 posts, Pay Scale : Rs. 14500 – 25700, Age : 30 years Hindi Officer : 10 posts, Pay Scale : Rs. 14500 – 25700, Age : 30 years Security Officer : 25 posts, Pay Scale : Rs. 14500 – 25700, Age : 30 years Agriculture Field Officer : 100 posts, Pay Scale : Rs. 14500 – 25700, Age : 30 years Chartered Accountant : 30 posts, Pay Scale : Rs. 19400-28100, 32 years EDP Officer : 50 posts, Pay Scale : Rs. 19400-28100, 32 years Forex Officer : 25 posts, Pay Scale : Rs. 19400-28100, 32 years Forex Officer : 10 posts, Pay Scale : Rs. 25700 - 31500, 35 years EDP Officer : 10 posts, Pay Scale : Rs. 25700 - 31500, Age : 35 year Start of the reciept Online applications : 09/10/2010 Last date for Receipt of Application : 08/11/2010 for more details kindly visit the link below;

How do banks calculate interest on your savings bank account ?

The Annual Review of RBI Monetary Policy on 21st April 2009 touched one important aspect that is calculation of Interest on amount kept by you in your Savings Bank account with the Bank. The RBI has directed the banks to calculate the interest on daily balance. Now the banks are offering 3.50% interest on your balances kept in your Savings Bank account. But the calculation of interest reduces the effective interest paid by the bank to you. The banks calculate interest on the minimum balance between 10th and last day of the month. And this interest is paid to you twice in a year once in February (for the period from August to January) and in August ( for the period from February to July). The example below tells you how the banks calculate the interest; Bank: ABC Bank Account Holder : Mr.X Account Number : 12345 Date Balance 01.08.08 Rs.5000 08.08.08 Rs.25000 12.08.08 Rs.200000 19.08.08 Rs.150000 21.08.08 Rs.50000 28.08.08 Rs.3000 So for the month of August interest will be Minimum balance between 10th and 31st will be Rs.3000 So, Principle X Rate of Interest X Days -------------------------------------------------- Days in a year X 100 = 3000 X 3.50 X 31 ------------------------ 36500 = Rs.8.91 If the interest is calculated on daily balance as directed by RBI, interest will be 01.08.08 tl 07.08.08 = 6 days X Rs.5000 =30000 08.08.08 to 11.08.08= 4 days X Rs.25000 = 100000 12.08.08 to 18.08.08= 6 days X 200000 = 1200000 19.08.08 to 20.08.08 = 2 days X 150000 = 300000 21.08.08 to 28.08.08 = 7 days X 50000 = 350000 29.08.08 to 31.08.08 = 3 days X 3000 = 9000 Total Product 1989000 for 31 days So, 1989000 X 3.50 -------------------------- 36500 = Rs.190.72 See the huge difference for just one month. The major beneficiary will be the customer as he will get interest for variations in balance through out the month. Earlier, banks were taking the minimum balance between 10th and last day, whatever the large amounts you have deposited between 10th and withdrawn subsequently before last day was not earning you anything. But now you get interest on that balance also. But the bankers will be worried as they have to fork out high interest on your deposit

Guidelines soon on pre-paid payment instruments

The Reserve Bank of India plans to permit scheduled commercial banks with the eligibility criteria to issue all categories of pre-paid payment instruments and eligible non-bank entities, including NBFCs, to issue semi-closed instruments. The move is to promote cashless transactions. The Reserve Bank had earlier placed the draft guidelines for issuance and operation of such instruments in public domain for wider dissemination and feedback. Instruments such as smart card, Internet account, mobile account and mobile wallet could be some of the pre-paid payment instruments, the RBI Deputy Governor, Ms Shyamala Gopinath, said.

‘No prior approval needed to set up offsite ATMs’

In a move that would allow banks to expand their ATM networks more easily, the Reserve Bank of India has done away with the requirement of prior regulatory approval for setting up offsite ATMs. RBI had earlier dispensed with the requirement of obtaining regulator permission for onsite ATMs (ATMs at branch premises).

ICICI Bank cuts lending, deposit rates

ICICI Bank on Tuesday announced a 50 basis points cut in its corporate and retail lending rates with immediate effect. The bank also said it is cutting fixed deposit rates across various tenors by 25 to 50 basis points, with effect from April 24. ICICI Bank cut its Floating Reference Rate (FRR) for consumer loans, including home loans to 13.25 per cent from 13.75 per cent. All existing floating rate customers will be benefited by the reduction in the FRR. The bank also cut its Benchmark Advanced Rate, for its corporate customers, to 16.25 per cent from 16.75 per cent

RBI's Annual Policy Statement - 2009-10

Consistent with the current assessment of macroeconomic and monetary conditions, the Reserve Bank has decided to: 1) reduce the repo rate under the LAF by 25 basis points from 5.0% to 4.75% with immediate effect. 2) reduce the reverse repo rate under the LAF by 25 basis points from 3.5% to 3.25% with immediate effect. 3)keep the CRR unchanged at 5.0% of net demand and time liabilities (NDTL).

SIB exceeds NPA recovery target by 50%

South Indian Bank has not only managed to contain fresh NPAs but has exceeded its NPA recovery target by 50 per cent. The bank has recovered Rs 150.95 crore, against its annual recovery target of Rs 100 crore Stating that the bank had managed it at a time when serious concerns were voiced about the asset quality in banks, its Managing Director and Chief Executive, Dr V.A. Joseph, said “it is a real challenge at times such as this. Dun & Bradstreet has identified us as the ‘Best Bank’ in asset quality (in the private sector category) and we are determined to maintain the title”. The bank’s gross NPA declined to 1.85 per cent at the end of the third quarter of the just ended fiscal compared with 2.53 per cent a year ago. Its net NPA fell by 0.1 per cent to 0.39 per cent as at end December 2008 compared with 0.49 per cent during the corresponding period of the earlier fiscal.

OBC cuts deposit rates

Oriental Bank of Commerce has reduced its term deposit rates by 25-100 basis points across various maturities. The revised rates will be applicable from April 21. For bulk deposits (Rs 1 crore & above) with maturity of 1 year & above, the interest rate has been reduced from 7.5 per cent to 6.5 per cent per annum. In case of deposits less than Rs 1 crore, the interest rate has been reduced to 8 per cent from 8.25 per cent for the time bucket of 1 to less than 2 years.

Shikha Sharma is new MD and CEO of Axis Bank

The board of Axis Bank on Monday appointed Ms Shikha Sharma, Managing Director, ICICI Prudential Life Insurance Company, as the bank’s new Managing Director & CEO. The appointment, however, did not find favour with the current Chairman & CEO, Dr P.J. Nayak, who quit in protest. Ms Sharma’s appointment, which will be for a period of 5 years, beginning August 1, 2009, is subject to RBI clearance and shareholders approval. Dr Nayak, who has been at the helm of Axis Bank for close to a decade, reportedly wanted an experienced internal candidate to take charge of the bank. He had three more months to go before retirement. Besides Ms Sharma, the other contender for the top position at India’s third largest private sector bank was Mr Hemant Kaul, Executive Director, Axis Bank. Mr V. Vaidyanathan, Executive Director, ICICI Bank, is tipped to take over from Ms Shikha Sharma as the Managing Director of ICICI Prudential Life Insurance Company. Axis Bank reported a growth of 61 per cent in net profit at Rs 581 crore for the fourth quarter ended March 31, 2009, against Rs 361 crore in the same quarter last year, aided by growth in its fee income and trading profits.

RBI defers foreign bank liberalization

The Reserve Bank of India (RBI) has decided to put on hold a proposal to allow foreign banks to operate in the domestic market and buy private banks in the wake of the global financial turmoil that fell some banking giants. The central bank is expected to announce this when the annual monetary policy review is to be unveiled. The RBI was expected to allow foreign banks to acquire stakes in Indian banks from April 2009 as part of the second phase of the banking sector’s opening up plan, termed ‘Roadmap for presence of foreign banks in India.'

BoB to finance Nano loan

State-owned lender, Bank of Baroda, has launched a scheme for financing of Nano car booking advance, under which any one can book a Nano car by availing 100% finance for booking amount from the bank. Upfront charges for a loan of Rs 95000 required for booking of smallest variant of the car is kept at a bare minimal of Rs 2999 which also includes interest for 90 days on the financed amount of Rs 95000.

RBI widens scope of unsecured loans

The RBI tightened the prudential norms for unsecured loans and asked banks to treat the value of all rights, licences and authorisations as unsecured advances and not as tangible securities. Starting April 2009, the RBI has asked banks to disclose the amount of such advances for which intangible securities such as charge over the rights, licences, and authorisations have been taken along with the estimated value of the collateral. Separate disclosures also need to be made in the notes to accounts, the RBI said. The move would result in higher risk weight and increase the provisioning requirement for banks.

SBI mulls further cut in lending rate

State Bank of India (SBI) said that it was examining the possibility of another round of reduction in its benchmark prime lending rate (BPLR), while adding that it was offering the cheapest rates across loan categories. At the same time, the bank’s chairman OP Bhatt told that funds mopped up at higher rates between October and December, and lower credit demand, were putting pressure on SBI’s net interest margins. “In the fourth quarter, NIM (net interest margin) would have dropped to around 3 per cent, from 3.16-3.17 per cent earlier. But we are hoping to keep it at around 3 per cent during the current financial year… Any small variation in margins has a large impact on the balance sheet,” he said.