Canara Bank & CARE sign MoU

Canara bank, a public lender signed a Memorandum of Understanding (MoU) with Credit Analysis & REsearch Limited (CARE), a premier credit rating agency.

CARE has been endorsed by Banks and Financial Institutions, provides credit rating, financial and advisory services to various corporate and financial bodies in India.

With this signing of MoU Canara Bank will certain the fulfillment of the guidelines for Standardized approach of RBI's New Capital Adequacy Framework (Basel-II). According to these guidelines, the capital requirement for a corporate exposure is based on the credit rating assigned by the recognized rating agencies such as CARE.

This MoU will allow clients of Canara Bank to approach CARE for getting their facilities with the Bank rated. The bank clients will get benefited from the rating exercise at a discounted rate. All these ratings will be carried out after obtaining authorization from the Bank’s clients/prospective clients.

CARE carry out objective and independent assessment of borrower’s credit quality, and share logical approach on various industries and evolving economic environment with the Bank.

Canara Bank increases term deposit rates by 50bps

Canara Bank a Bangalore-based public sector lender has raised its interest rates on domestic term deposits by 50 basis points for the period ranging from 91 days and above to 2 years. The new rates will come into effect from October 10

As per revised interest rate for the tenors of 91 days and above to 179 days the increase has been done from 7 per cent to 7.50 per cent, 180 days to less than 1 year has been raised from 8.25 per cent to 8.75 per cent. On the deposits of one year and above to 499 days the raise has been done from 9.75 per cent to 10 per cent and 500 days to 2 years the increase has been done from 10 per cent to 10.50 per cent.

According to bank press release the bank will be offering 0.50 per cent more for senior citizens on the revised rates.