2. 1. Special Deposit schemes return with high interest. 14 Banks have reintroduced these special liability products to lure small savers as they are facing poor growth of 14.4%. These products come for special term like 390 days, 790, 1000 days 7 carry higher interest rates as compared to interest rates attached on regular deposit.
3. 2. EPFO to pay 9.5% for FY11 on hidden surplus. Labour Minister MalliKarjunKhargedeclared on higher PF rates at 9.5% for 2010-11. Reason for increase in EPFO is it discovered hidden surplus of Rs. 158 cr. EPFO= Employee Provident Fund Organisation.
4. 3. SBI mulls holding co. for Banks & arms. SBI in talks with RBI to form a Holding co. which will control the equity of the Bank its associates 7 subsidiaries. SBI Group controls close to 1/4th of Country’s market for loans & deposits & is well positioned among Banks to go for Holding co. structure.
5. 4. RBI may tighten Interest rates in policy review. RBI is likely to tighten key policy rates. Will raise Repo & Reverse Repo rate by 25 Basis Pts.
6. 5. ICICI finally integrate BOR employees with itself. BOR(Bank of Rajasthan) employees are offered 2 stages increase in wages for accepting ICICI HR Policy which include - Dropping out of trade union membership . - Adhering to the Bank’s 9 to 6 work hrs. BOR employees salary increases by 20-25%. Wage bill of BOR gone up from 150 cr. To 185 cr. ICICI staff close to 50,000 & BOR employees are only 4000.
7. 6. Oxigen, SBI tie up to reach out the unbanked Electronic Service Provider Oxigen had tied up with SBI to open 1,00,000 points across country by FY,13. This will help people especially rural & poor, to open a/c ,avail loans &make investment through web-based kiosks and that will be connected with SBI core Banking System by Oxigen web retailers. Oxigen (CEO&MD) = Mr. PramodSaxena
8. 7. Loans to pinch more as RBI hikes key rates. Loans for corporate & individuals set to be costlier. RBI increases Repo Rate(lending rate) BY 25 bps to 6% & Reverse Repo Rate (borrowing rate) by 50 bps to 5%. This narrowing of difference between these two policy rates is expected to bring stability in call money market.
9. 8. Food Inflation jumps to 15% on supply constraints. Inflation in food articles in the new series with 2004-05 base was 15.1% for week ended sep 4 as compared to 14.6% in week before. There are some supply side constraints due to rains . Areas like Punjab, Haryana, Maharashtra have seen huge disruption by rains.
