export growth at 15%

In the trade policy for 2009-14 the government has set the target of export growth at 15%For first two year and at 25% per annual in the last three years

ICICI BANK LAUNCHES iMOBILE

iMobile is a breakthrough innovation in banking where practically all internet banking transactions can now be simply done on mobiles phones. iMobile is a small software called Rich Client Based Application, that is downloaded on your mobile phone. When installed on your phone, it embeds the ICICI Mobile Banking option on your phone menu. The application covers Savings Bank, Demat, Credit Card and Loan accounts. We continually add services on the application which are made available through an upgrade link available within it.
You can pay your utility bills and insurance premium through this facility. Place service requests and access the help menu for further information on your mobile. ICICI Bank offers this facility free* of charge to customers.
iMobile ensures security through secure authentication. To access your account using your mobile phone without using 'key words', download iMobile. Choose the most convenient route to download iMobile on your handset

IDBI Fortis Life to pay claim in case of swine flu death

Mumbai: IDBI Fortis Life Insurance will clear the claims of next of kin if any policyholder died of swine flu, a top company official said, despite the disease not being listed as one of those for which such a payment can be made."Insurance will be given in the case of death due to the H1N1 virus even though the disease has not been mentioned at the time of buying the policy," IDBI Fortis Life Insurance Managing Director and Chief Executive Officer G V Nageswara Rao said in Mumbai.The company has listed 17 diseases for which policyholders can claim insurance and swine flu is not on the list, he said. Despite this, the company will pay if any policyholder died of swine flu.However, the disease will continue to be out of the firm's policies, Rao said. IDBI Fortis Life Insurance is a joint venture between IDBI Bank, Federal Bank and Europe-based bancassurer Fortis. IDBI Bank holds a 48 per cent stake while Federal Bank and Fortis hold a 26 per cent each in this venture. The company, which earned Rs 319 crore as first-year premium last fiscal, is bullishabout its growth during this fiscal. "We are in the growth phase," Rao said

No more than Rs 10k from other ATMs

NEW DELHI: RBI has put a cap on third-party ATM withdrawal (When a cardholder is using other bank’s ATM) at Rs 10,000 per transaction and also limited the number of such transactions to five in a month. For more than five third-party transactions in a month, one has to pay Rs 20 per transaction. However, there will be no such limit when a cardholder is using his/her own ATMs.

A senior official, who heads the ATM operation of a private sector bank, said the new scheme will be effective from October 1, 2009. RBI has already made all ATM transactions, including third-party ones, free of any extra charge. This has led to increase in the number of transactions taking place at third-party ATMs. The banker said that many customers started misusing the provision by withdrawing small amounts — even Rs 100 and that too almost almost daily.

Your bank pays around Rs 20 per transaction to the other bank when you use its ATM to withdraw money. Even if you withdraw Rs 100 from any other ATM, your bank pays Rs 20 to that bank. This increases cost of operations for banks substantially.

So, banks requested RBI to put a cap on the number of third-party withdrawals. Banks had also asked for a minimum withdrawal amount of Rs 1,000 for third-party transaction. But, RBI did not accept this demand as it would have affected small depositors.

HDFC Bank slashes India's FY10 growth outlook to 5.8 pc

NEW DELHI: HDFC Bank has slashed India's growth outlook for the current fiscal to 5.8 per cent from its earlier projection of 6.5 per cent because

of the deficient monsoon.

"Kharif sowing picking up but likely to be lower than last year. (We) see agricultural output falling by 3 per cent in 2009-10 against previous forecast of 3 per cent growth," the bank said in a research report.

The outlook of a negative growth in agriculture comes on the back of the Indian Meteorological Department's revised rainfall forecast and uncertain impact of mitigants such as ground water harvesting and modification of cropping patterns.

"Reports of expected reduction in kharif output of up to 10 per cent have prompted us to revise our agricultural growth forecast lower," the bank said.

However, it said price impact of a deficient monsoon can be reigned in by drawing down food stock buffer, extension of tax-free sugar imports, limits on grain exports and crackdown on hoarding.

Finance Minister Pranab Mukherjee today reiterated there would be no exports of foodgrains from the country at a joint meeting of state agriculture ministers on drought here.

Though the bank's agricultural outlook has come down, its impact on India's overall growth forecast has been partially mitigated by the rise in forecasts for growth in industry and services for the current fiscal.

INTEREST RATES TO GO UP

The country’s largest private sector lender ICICI Bank today said lending rates will start going up any time now, quite contrary to the SBI Chairman’s projection that borrowers can breathe easy till Diwali.
“I really believe that interest rates are not going to go down from here. Gradually they would go up. When? Would really depend on how fast the credit growth takes place”, ICICI Bank CEO and Managing Director Chanda Kochhar said.
Her statement comes a day after SBI Chairman O P Bhatt said that rates would not rise till Diwali and may even soften by 25-50 basis points before the busy season in October.
In April, ICICI Bank was the first to reduce lending and deposit rates by 50 basis points after announcement of the annual credit policy by the Reserve Bank of India (RBI).
Replying to questions on impact of the large government borrowing on the financial system, Kochhar said, “The amount is large. I don’t think that amount is small. It does have its own impact on interest rates and financial system. I am sure there is a thought behind it.”
In order to step up expenditure to stimulate the economy reeling under the impact of the global financial meltdown, the government decided to raise Rs 4.51 lakh crore through market borrowings this fiscal, up from Rs 3.1 lakh crore in 2008-09.
Expressing concern over the high government borrowing, RBI Governor D Subbarao had recently said that it was impairing the ability of the central bank to further lower the interest rates through monetary measures.
Pointing out that there is more clarity on the market borrowing programme of the government, Kochhar said, “What will happen to the interest rates. Is more dependent on how the credit growth picks up. As far as the government borrowing is concerned, now that there is so much clarity. The market has already built in whatever the impact will be.”
The centre has decided to borrow 70 per cent of its requirement during the first half, she said, adding that the important message that the government gave out was that it would bridge the revenue-expenditure shortfall, if any, by raising taxes and not through more borrowings.
Moreover, she added, “The private sector plans depend not so much on government borrowing. Their plans depend more on their own performance. And their belief... To raise debt and equity.”
The data for the last three months indicate improvement in capacity utilisation by India Inc, Kochhar, ranked the world’s 20th Most Powerful Woman by Forbes, said and added that since the commodity price correction, these people are coming back to restart their projects.

Aviva Life to hire 1,500 sales executive in 7 months

Aviva Life Insurance is planning to hire 1,500 sales managers and 13,000 sales agents in the next seven months in order to expand and improve their business prospects, according to Managing Director and CEO T R Ramachandran.
Currently, the company has an employee base of 7,000 with around 37,000 advisers. The company saw its business decline by 19 per cent in the first quarter of the current financial year compared with the corresponding period in 2008.
Ramachandran announced that the company would launch five new products in the current financial year, out of which three would be unit-linked insurance based products and the other two conventional insurance schemes. The company was also planning to sign contracts with two banks to form bank insurance models.
It has come out with a survey which has revealed that a majority of people give priority to their children’s education as against retirement, marriage or after death liabilities. Hence, the company’s major focus areas are microfinance products and products centered around child education.
The company launched one of its corporate social responsibility “street to school” programmes in partnership with two non- government organisations — CRY and Save the Children India.
In the first year, they will reach out to 20,000 children through nine projects in five states.
The company’s counterpart in the United Kingdom has committed $500,000 for the project over a period of three years, while employees of the organisation in India have volunteered to forego a day’s salary.

NEW PURPOSAL FOR IDBI BANK

IDBI Bank has revived the proposal to sell IDBI Home Finance, its wholly-owned subsidiary, to Dewan Housing Finance, nearly seven months after it had to put the plans on hold due to a last-minute government intervention.

Sources close to the development said the bank had approached the finance ministry with a fresh request to sell the company though the government was yet to decide on the issue.

The latest move comes after IDBI Bank pumped in Rs 20 crore into the home finance company to shore up its capital base to meet the National Housing Bank-prescribed norms.

While IDBI Bank did not respond to a questionnaire sent on Friday afternoon, Dewan Housing Finance Chairman and Managing Director Kapil Wadhawan said he did not want to comment on the issue. Sources said the bank proposed to sell its shares in the home finance arm at Rs 21.46 each and the total consideration would be a little over Rs 350 crore.

In August 2008, IDBI Bank had valued IDBI Home Finance at Rs 351 crore, which was lowered to Rs 333 crore in early January on the grounds of poor market conditions.

The exercise conducted in January, included IDBI Home Finance’s value per share of Rs 22.95 and a premium was also built in. Dewan Housing had emerged as the highest bidder, but its bid was Rs 21.46 and the total consideration offered was Rs 311.12 crore.

Tata Capital was the second highest bidder (Rs 225 crore), followed by Religare (Rs 221 crore).

Since January, the market had improved and IDBI Bank had also pumped in additional equity, a source pointed out. For instance, based on its market capitalisation Dewan Housing’s valuation has shot up by over 40 per cent from Rs 707 crore on January 6, when IDBI Home Finance valuation was undertaken, to Rs 990 crore now.

IDBI Bank, which was to take up the proposal in late January, had to defer a decision on a last-minute missive from the finance ministry. In March, the government cited the low bids to advise the bank against selling IDBI Home Finance.

“The highest bid received (Rs 311.12 crore) is even lower than the revised valuation (Rs 333 crore). It is felt against this background that the timing of the bids is inappropriate. Markets are weak,” the government said.

While suggesting IDBI Home Finance’s merger with the bank, the finance ministry pointed out that IDBI acquired the mortgage company to de-risk its portfolio and move from being a development financial institution to a universal bank.

The ministry had also said that the sale would result in a breach of IDBI Bank’s single-party exposure norm of Rs 2,000 crore.

“There is also no guarantee that Dewan Housing Finance would (a) keep the (192) employees (b) not do what it wants with the acquired company, including sale at a profit,” it added.

INDIA'S BANK OF BARODA TO HIRE 3,500 PEOPLE BY MARCH 2010

Bank of Baroda is going to recruit about 3,500 people by March 2010 including 2,000 clerks and 1,000 probationary officers," Bank of Baroda chairman and managing director M D Mallya told PTI.

Besides, the bank is going to do campus recruitment, he said, adding, "we are planning to go to reputable institutes like IIMs and IITs".

As many as 200 management students and engineers will be hired during the year, he said.

In addition to this, the bank will recruit 250 agriculture officers.

Royal Bank Of Scotland's Bed Debts Overshadow Return To Profit

Shares plunge as RBS chief executive warns of two hard years ahead for the bank and the wider economy

ING RESULT DOWN 96.3 PERCENT

Dutch banking and insurance group ING on Wednesday reported a 71 million euro net profit for the second quarter against a net profit of 1.95 billion euros during the same period of last year.

TATA AIG JOINS HANDS WITH POLICYBAZAR>COM FOR SALE OF ITS INSURANCE PRODUCTS

Policybazaar. com, India's leading online non-life and life insurance aggregator, has tied-up with TATA AIG Insurance Ltd, the country's largest insurer to sell its products on the internet. It should be noted that it for the first time ever, when TATA AIG Insurance has tied with an insurance portal.

The move will enable consumers to get detailed information on company's insurance products.

ICICI PRUDENTIAL LAUNCHES NEW INSURANCE POLICY

ICICI's insurance arm, ICICI Prudential Life, has introduced a post-retirement pension scheme, Life Stage Assure Pension (LSAP), in a bid to provide post-retirement security to customers, through their small savings. The new policy carries partial withdrawal facility after five years, ensured addition of about 200 per cent premium after one year, and a number of other attractive features.

SBI SLASHES HOME LONE RATE

The country's leading public sector bank, the State Bank of India, has announced a further cut in the interest rates for home loans, in line with its special three months long SBI My Home Campaign set to start from Saturday. The move will further intensify the home loan war between rivals public and private sector banks, which will leave no stone unturned to woo customers by providing cheap and affordable interest rates.

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BANK STRIKE

ATMs empty as bank stir sparks higher withdrawals





NEW DELHI: A number of ATMs ran out of cash in the city. While ATMs of PSU banks that are on a two-day strike went dry early in the day, some ATMs
of private banks too ran out of money towards Thursday evening as PSU bank customers made a beeline for them.
the strike was called by united forum of bank union which is combination of nine banking unions. In this strike nearly 4000 branches were closed nation wide and the loss of Rs 250 billion is anticipated.
‘‘ It’s a new situation for us,’’ said a private banker. ‘‘ Now that all ATMs are linked and a customer from any bank can withdraw money from the ATM of any other bank, there was huge pressure on the ATMs of banks such as ICICI Bank and HDFC Bank.’’

The banker said the problem would be temporary. ‘‘ All ATMs are monitored electronically . As soon as they run out of money, the bank sends out personnel to replenish them,’’ he said. Private banks noticed higher withdrawals on Thursday and were replenishing the ATMs more frequently.

On Day 1 of the two-day strike, around 10 lakh employees of government owned banks, which control almost 70% of banking operations in India, struck work. These banks had filled their ATMs with cash on Wednesday night. But by afternoon , they went dry
.

Even as major private sector banks provided some relief to customers, the two-day nationwide strike by public sector bank employees over wage revision has left many people in a spot. With public sector banks accounting for 70% of banking business in the country, banking operations in the capital were also severely impacted.

STRIKES IN PUBLIC SECTOR BANKS

Banking services are expected to be affected as employees of public sector banks across the India will go on a two-day nationwide strike on 6th & 7th August, 2009 to press for wage hikes and other issues.

There was a conference between employee unions and the Indian Banks’ Association (IBA) in the presence of the Chief Labour Commissioner. However, it failed to give up any result, United Forum of Bank Unions (UFBU) Convener C H Venkatachalam said.

“We are going ahead with the strike,” he said, adding that the IBA has further reduced the rate of wage hike from the proposed 17.5 per cent to 13 per cent.

At the same time, the IBA further did not concede demands on pension and appointing dependents of deceased employees on compassionate grounds, he said.

Unions have called for strike on August 6 and 7 pressing for an increase in wages and another option to join the Pension Scheme.
Finance Minister Pranab Mukherjee in the Rajya Sabha while replying to a question said, wage revision of officers and staff of the public sector banks are due since November, 2007.

“The wage revision of officers and employees is negotiated by Indian Banks’ Association (IBA) that represents the management of such banks, which have mandated it to negotiate on their behalf, with the Unions or associations representing the employees and officers,” he said.

Meanwhile, the LIC employees throughout the country, including the State observed a two-hour strike preceding lunch recess today to register their protest against introduction of LIC Amendment Bill in the Parliament.

“The real motive behind the Bill, which increases the LIC’s equity from Rs 5 crore to Rs 100 crore is to pave the way for disinvestment of LIC,” mentioned a release from the Guwahati Division Insurance Employees’ Association.

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These insurance product is underwritten by HDFC Standard Life. The details mentioned above are indicative of the terms, conditions, warranties and exceptions contained in the insurance policy. Please refer to the product brochure and policy document for further details or else contact our Relationship Manager at your nearest HDFC Bank Branch. HDFC Standard Life Insurance Company Limited. HDFC Children's Plan. Form No. SN 10.UIN 101N010V01.For more details on the risks factors, terms & conditions please read the sales brochure carefully before concluding a sale. Registration No: 101.Certified Corporate Agent's License No. 933982.

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