Canara Bank, a Bangalore-based public sector lender, established on November 19, 1906, in Mangalore has opened 104 new branches across the country in view of celebration of 104th anniversary of the bank. The bank target is to increase the number of its branches across India from 2966 to 3,000 branches by December 2009. Union Finance Minister Pranab Mukherjee inaugurated 104 branches in New Delhi.
Out of 104 branches, 24 have been opened in Karnataka and 14 in Tamil Nadu, while 7 in Andhra Pradesh. Whereas bank opened one branch each in Bihar, Jammu and Kashmir, Delhi, Punjab, Tripura, Uttarakhand, Meghalaya Chandigarh and Dadra & Nagar Haveli. And four branches each in Gujarat and Kerala, five each in Orissa, Himachal Pradesh and Uttar Pradesh. Three each are in Rajasthan and Madhya Pradesh and 11 branches are in West Bengal.
Out of these 104 branches, 36 branches are in metro, 22 in urban and 46 in rural and semi-urban locations. From these, 29 branches have been opened in under-banked districts.
With the opening of these 104 branches, the bank has added 233 domestic branches during the present year including 3 overseas branches in London, Hong Kong and Shanghai.
Tuesday, November 24, 2009
Thursday, August 13, 2009
Canara Bank revised auto loan rates as low as 8.50 per cent
Canara Bank a public sector lender has reduced its interest rates on vehicle loans sanctioned on or after August 1, 2009.
As per revised rate, bank will charge 8.50 per cent for vehicle loans during the first 12 months, 9.50 per cent during the next 24 months and 10 per cent for period above 36 months to 60 months.
According to bank press release for the period above 60 months bank will charge 10.50 per cent interest rate. By end June 30, 2009, bank’s auto loans have seen a rise of almost 26 per cent to Rs 1,200 crore as compared to the corresponding quarter of the last financial year.
As against the March 2009 quarter, the bank’s auto loans have grown by just around 8 per cent to Rs 1,200 crore in the June quarter of 2009.
As per revised rate, bank will charge 8.50 per cent for vehicle loans during the first 12 months, 9.50 per cent during the next 24 months and 10 per cent for period above 36 months to 60 months.
According to bank press release for the period above 60 months bank will charge 10.50 per cent interest rate. By end June 30, 2009, bank’s auto loans have seen a rise of almost 26 per cent to Rs 1,200 crore as compared to the corresponding quarter of the last financial year.
As against the March 2009 quarter, the bank’s auto loans have grown by just around 8 per cent to Rs 1,200 crore in the June quarter of 2009.
Tuesday, May 5, 2009
PSU banks reducing interest rates on consumer loans
Senior officials of the public sector banks (PSBs) informed that banks are working on the process of cutting down the interest rates on consumer loans (home, education and auto) by another 50 to 100 basis points.
There is low demand for corporate loans therefore banks are having a cash surplus of Rs 1.60 lakh crore, which they desire to lend to retail borrowers.
A banker told, “Sluggish demand from the companies gives us ample scope to grow the retail assets, which until now the public sector banks were slow to grow”.
Over the next month the banks will be reducing the benchmark lending rates for best customers by 25 to 100 basis points. Currently, the benchmark lending rates of PSBs range between 11 per cent and 12.25 per cent.
A senior SBI official informed, “State Bank of India (SBI) is likely to revise its benchmark lending rate for best customers by at least 25 to 50 basis points from the present 12.25 per cent”.
In December 27 public sector banks jointly announced to market the special home loan package but most of the banks are not interested in this it is compulsory to fix the interest rate for the first five year. In its place the banks are dedicated to lower floating interest rates. While home loans on floating rates are likely to be cheaper by 100 basis points.
A senior IDBI Bank official explained, “With rates falling below the floor rate of 9.25 per cent announced in the special home loan package, the package is losing relevance. All further rate reductions can only be kept floating. We have a head room of reducing rates by another 50 basis points”.
Under the special home loan package interest rates were fixed at 8.5 per cent for loans up to Rs 5 lakh and at 9.25 per cent for loans up to Rs 20 lakh for a period of five years. PSBs are also offering free insurance cover for the loan and waiver of pre-penalty charges.
SBI and Canara Bank have already announced the home loan package, with rates at 8 per cent and 8.25 per cent, respectively. These rates are being offered on loans up to Rs 30 lakh (the priority sector lending limit under Basel II norms, earlier this limit was Rs 20 lakh).
A senior Canara Bank official informed, “We have headroom to reduce our benchmark rate by 50-100 basis points. All our retail products are priced almost on a par with SBI. The rate of 8.25 per cent is for home loans up to Rs 30 lakh. But we may cut rates depending on the competition”.
On the other hand Punjab National Bank has reduced its benchmark lending rate by 50 basis points to 11 per cent from May 1 -- the lowest in the industry.
PSBs are also planning to cut down their deposit rates further. On Saturday SBI announced cut down in deposit rates by 25 basis points. After the renewal the rate for its 1,000- day deposit scheme is 8 per cent, 150 basis points less than what it was offering till December 1, 2008. Thus the interest rate for its one-year deposit is now 7.70 per cent.
Most of the banks are in the process of consistently bringing down dependence on high-cost bulk deposits. Bulk deposits have dropped to less than 10 per cent of total deposits. The share of bulk deposits in the total deposits of Bank of India, for example, is only 6.5 per cent.
Moreover the cost of funds is also dropping, with most banks depending on the low-cost CASA (current account and savings account).
There is low demand for corporate loans therefore banks are having a cash surplus of Rs 1.60 lakh crore, which they desire to lend to retail borrowers.
A banker told, “Sluggish demand from the companies gives us ample scope to grow the retail assets, which until now the public sector banks were slow to grow”.
Over the next month the banks will be reducing the benchmark lending rates for best customers by 25 to 100 basis points. Currently, the benchmark lending rates of PSBs range between 11 per cent and 12.25 per cent.
A senior SBI official informed, “State Bank of India (SBI) is likely to revise its benchmark lending rate for best customers by at least 25 to 50 basis points from the present 12.25 per cent”.
In December 27 public sector banks jointly announced to market the special home loan package but most of the banks are not interested in this it is compulsory to fix the interest rate for the first five year. In its place the banks are dedicated to lower floating interest rates. While home loans on floating rates are likely to be cheaper by 100 basis points.
A senior IDBI Bank official explained, “With rates falling below the floor rate of 9.25 per cent announced in the special home loan package, the package is losing relevance. All further rate reductions can only be kept floating. We have a head room of reducing rates by another 50 basis points”.
Under the special home loan package interest rates were fixed at 8.5 per cent for loans up to Rs 5 lakh and at 9.25 per cent for loans up to Rs 20 lakh for a period of five years. PSBs are also offering free insurance cover for the loan and waiver of pre-penalty charges.
SBI and Canara Bank have already announced the home loan package, with rates at 8 per cent and 8.25 per cent, respectively. These rates are being offered on loans up to Rs 30 lakh (the priority sector lending limit under Basel II norms, earlier this limit was Rs 20 lakh).
A senior Canara Bank official informed, “We have headroom to reduce our benchmark rate by 50-100 basis points. All our retail products are priced almost on a par with SBI. The rate of 8.25 per cent is for home loans up to Rs 30 lakh. But we may cut rates depending on the competition”.
On the other hand Punjab National Bank has reduced its benchmark lending rate by 50 basis points to 11 per cent from May 1 -- the lowest in the industry.
PSBs are also planning to cut down their deposit rates further. On Saturday SBI announced cut down in deposit rates by 25 basis points. After the renewal the rate for its 1,000- day deposit scheme is 8 per cent, 150 basis points less than what it was offering till December 1, 2008. Thus the interest rate for its one-year deposit is now 7.70 per cent.
Most of the banks are in the process of consistently bringing down dependence on high-cost bulk deposits. Bulk deposits have dropped to less than 10 per cent of total deposits. The share of bulk deposits in the total deposits of Bank of India, for example, is only 6.5 per cent.
Moreover the cost of funds is also dropping, with most banks depending on the low-cost CASA (current account and savings account).
Wednesday, April 22, 2009
Banks offer cheaper loans for Tata Nano
Banks are offering cheaper loans for Nano in comparison to the regular fare of car finance. The banks which have been identified for providing finance for Nano are planning to offer discounted interest rates which have been inclined to 50 to 150 basis points (bps) lower than the regular car loan rates in view to gain benefit out of Nano euphoria and grow business in the process.
Bank of India (BOI), Canara Bank and Indian Bank to United Bank of India (UBI) everyone is trying to earn maximum share of the Nano financing pie by launching special schemes.
Till now Kolkata-headquartered UBI has launched the most exciting Nano financing scheme. Under the scheme bank will be offering loans at a low as 9% a year for purchasing the small car, the people’s car. The rate is robust 100bps lower than UBI’s card rate for car loans at 10%.
While the Chennai-based Indian Bank has secured its interest rate at 11% which is 75 bps less than its regular car loan rate. UBI and Indian Bank, both of them are offering car loans at a fixed rate. Canara Bank has set interest between 9.5-11.5% for varying tenures, whereas BOI is offering at 10.25-10.75% per annum.
Canara Bank chairman and managing director A.C. Mahajan informed that banks are able to offer a lower interest for Nano because the operational cost will be lower in case of Nano loans. Due to this there will be heavy flow in advances at one go. The CMD informed that banks will just have to refurbish the loans in the future.
Moving further the financials banks also have plans to make maximum gain in terms of Nano financing in order to gain importance.
UBI chairman and managing director S.C. Gupta informed offering loan at lower rates for Nano is not going to cost much to them. On the other hand by offering special scheme for Nano bank is hoping to get popular amongst customers.
However ICICI Bank the largest private bank is not likely to offer any different car loan rate for Nano customers. The ICICI Bank head for vehicle finance Ravi Narayanan informed that yet they have not decided a specific car loan product for the Nano. He added that there are all possibilities that bank rate for Nano loans might not vary from their regular car loan rates.
State Bank of India has been identified as the exclusive booking agent for Nano, is also silent on the issue of interest rates for Nano loans.
Tata Motors have signed an agreement with some 15 banks and non-banking finance companies for financing its latest offering. In fact, banks are trying their best to make use of this opportunity to make big gain in terms of car loan business as well as making its prominence.
On the other hand Canara Bank has decided to fix the interest rate at 9.50% for the first year of the loan for Nano. For the second year the rate will be 10.5% a year and third year and for the next four years of the seven-year-tenure it will be 11.5%. Captivatingly Canara Bank is offering other car loans for a maximum tenure of three years.
With an aim to attain high score on this front, BOI is planning a three-month freeze on interest and principal repayment for its existing customers. It will be charging a floating rate of 10.25% a year for repayment period less than 36 months and a 10.75% rate for 3-6 year loan tenure.
Bank of India (BOI), Canara Bank and Indian Bank to United Bank of India (UBI) everyone is trying to earn maximum share of the Nano financing pie by launching special schemes.
Till now Kolkata-headquartered UBI has launched the most exciting Nano financing scheme. Under the scheme bank will be offering loans at a low as 9% a year for purchasing the small car, the people’s car. The rate is robust 100bps lower than UBI’s card rate for car loans at 10%.
While the Chennai-based Indian Bank has secured its interest rate at 11% which is 75 bps less than its regular car loan rate. UBI and Indian Bank, both of them are offering car loans at a fixed rate. Canara Bank has set interest between 9.5-11.5% for varying tenures, whereas BOI is offering at 10.25-10.75% per annum.
Canara Bank chairman and managing director A.C. Mahajan informed that banks are able to offer a lower interest for Nano because the operational cost will be lower in case of Nano loans. Due to this there will be heavy flow in advances at one go. The CMD informed that banks will just have to refurbish the loans in the future.
Moving further the financials banks also have plans to make maximum gain in terms of Nano financing in order to gain importance.
UBI chairman and managing director S.C. Gupta informed offering loan at lower rates for Nano is not going to cost much to them. On the other hand by offering special scheme for Nano bank is hoping to get popular amongst customers.
However ICICI Bank the largest private bank is not likely to offer any different car loan rate for Nano customers. The ICICI Bank head for vehicle finance Ravi Narayanan informed that yet they have not decided a specific car loan product for the Nano. He added that there are all possibilities that bank rate for Nano loans might not vary from their regular car loan rates.
State Bank of India has been identified as the exclusive booking agent for Nano, is also silent on the issue of interest rates for Nano loans.
Tata Motors have signed an agreement with some 15 banks and non-banking finance companies for financing its latest offering. In fact, banks are trying their best to make use of this opportunity to make big gain in terms of car loan business as well as making its prominence.
On the other hand Canara Bank has decided to fix the interest rate at 9.50% for the first year of the loan for Nano. For the second year the rate will be 10.5% a year and third year and for the next four years of the seven-year-tenure it will be 11.5%. Captivatingly Canara Bank is offering other car loans for a maximum tenure of three years.
With an aim to attain high score on this front, BOI is planning a three-month freeze on interest and principal repayment for its existing customers. It will be charging a floating rate of 10.25% a year for repayment period less than 36 months and a 10.75% rate for 3-6 year loan tenure.
Wednesday, February 18, 2009
Canara Bank branch directed to pay compensation for dishonoring debit card
A district consumer forum directed the Arumbakkam branch of Canara Bank to pay the compensation for wrongly dishonoring the ATM-cum-debit card of a customer. The bank has been asked to pay Rs 50,000 compensation to a customer for deficiency in service.
Arumbakkam branch of Canara Bank an account holder had filed the complaint in which he stated about the incident. The incident occurred on May 20, 2005 when she went to Mumbai. She wanted to do payment of her purchases through her debit card as she had Rs 68,605 in her account, but her card displayed zero balance in the account, was dishonored.
Due to this incident she had to face mental agony therefore she moved the District Consumer Disputes Redressal Forum, Chennai (South), seeking compensation.
In its defense, the bank said the complainant might have not used the card properly and hence it was dishonored. However, the bank had apologized to the complainant for the embarrassment caused and argued that there was no deficiency in service on its part.
But the forum refused to accept this argument. On examination of the case, the forum found, "The contention of the bank is not acceptable as in its reply to the complainant; the bank had categorically admitted that due to technical reasons the card did not work at that particular time. The bank did not file any documents to disprove the case of the complainant.''
Maintaining the bank responsible for deficiency in service, the forum asked it to pay Rs 50,000 compensation along with Rs 3,000 as case expenditure to the complainant within six weeks time.
Arumbakkam branch of Canara Bank an account holder had filed the complaint in which he stated about the incident. The incident occurred on May 20, 2005 when she went to Mumbai. She wanted to do payment of her purchases through her debit card as she had Rs 68,605 in her account, but her card displayed zero balance in the account, was dishonored.
Due to this incident she had to face mental agony therefore she moved the District Consumer Disputes Redressal Forum, Chennai (South), seeking compensation.
In its defense, the bank said the complainant might have not used the card properly and hence it was dishonored. However, the bank had apologized to the complainant for the embarrassment caused and argued that there was no deficiency in service on its part.
But the forum refused to accept this argument. On examination of the case, the forum found, "The contention of the bank is not acceptable as in its reply to the complainant; the bank had categorically admitted that due to technical reasons the card did not work at that particular time. The bank did not file any documents to disprove the case of the complainant.''
Maintaining the bank responsible for deficiency in service, the forum asked it to pay Rs 50,000 compensation along with Rs 3,000 as case expenditure to the complainant within six weeks time.
Tuesday, February 10, 2009
Canara Bank expands overseas branch office network
Canara Bank,
A bank official notified that these 10 news branches are out of those 21 international financial centers which have been identified for global expansion in the medium term.
During the quarter ended December 31, 2008 Canara Bank had observed increase in business and profits with the net profit increased by 53 per cent to Rs 702 crore as compared to the same quarter in the previous year.
Technical Analyst, E Mathew said that Canara Bank can slip to Rs 155-160 which is next major support for the stock.
On Friday the scrip of Canara Bank had closed at Rs 174, down 15% compared to previous close of Rs 204.
Subscribe to:
Posts (Atom)