SBI to open 800 branches in 2011-12

Source:PTI:Aug 07,2011:Newdelhi
The country's largest lender State Bank of India (SBI) plans to open 800 more
more branches in 2011-12 taking its total network to over 14,000 branches.


."We are planning to open 700-800 branches in the current financial year against 650 set up during the last fiscal," SBI Managing Director and CFO Diwakar Gupta told PTI.

New branches would be spread across all the 14 circles, he said.

At the end March, 2011, the total number of branches was 13,542 while the number of ATMs stood at 20,084 across the country.

Besides, the bank is also looking at expanding its overseas network.

The bank would look at increasing its presence in the neighbouring countries and CIS (Commonwealth of Independent States) countries, he said.

SBI now has 156 offices across 32 countries, including the US, the UK, Singapore, Canada and Mauritius.

The focus of these offices is India-related business, he said, adding the overseas operations take care of international needs of the bank's foreign customers, in addition to conducting retail operations.

At present, the bank's overseas business contributes about 16 per cent to the bank's total business.

The number of foreign offices increased from 142 as on March 31, 2010, to 156 as on March 31, 2011, spread across 32 countries.

The offices comprises 45 branches, 8 Representative Offices, 93 offices of the six foreign banking subsidiaries and 10 other offices.

GOI plans to set up bank to finance women self-help groups

Source :FC: B Krishna Mohan Aug 07 2011 , Hyderabad:

The Government of India has plans to set up an exclusive bank to finance women self-help groups in the country, according to Union Rural Development Minister Jairam Ramesh.

“The proposal to set up an exclusive bank is on but will take some more time,” he said at press conference in Hyderabad on Saturday. The minister also promised support to Andhra Pradesh government’s plan to start an exclusive loan channel for SHGs. “We will support AP’s proposal not just morally and politically but also financially,” Ramesh said.

There were 2.5 million women SHGs in the country and they were getting loans to the tune of Rs 15,000 crore from commercial banks annually.

It may be recalled that Andhra Pradesh, which brought an Act last year to regulate the MFIs, has sought approval of the union government to float a non banking financial institution dedicated to meet the

microfinance needs of poor borrowers.

The proposed NBFC would have institutional ownership with both the state and central governments as key equity contributors. With initial capital of Rs 400 crore, it proposed to act as a for-profit organisation but lending at rates much below the rate given by MFIs.

Mandal Mahila Samakhyas, Andhra Bank and State Bank of India and National Bank for Agriculture and Rural Development are the other equity partners in the proposed NBFC.

Ramesh also said that Comptroller Auditor General of India has agreed to appoint an exclusive wing to conduct financial auditing of rural development ministry. The rural ministry spends about Rs 90,000 crore per annum, the second largest after the defence ministry and hence there is a need for a special audit, he said.

He said the social audit system in Andhra Pradesh was fairly strong.

Why a Loan Against Property is Beneficial ?

Source:Orson Dixon : Sat 06th Aug 2011
The Reserve Bank of India (RBI) always keeps a tight check on the loan against property segment of the lending business. And rightly so.


 It is the reckless borrowing and lending in this segment that happened in the US that brought the world to the brink of economic disaster. 


However, in India, the case is different. A 30%-35% margin requirement ensures that lenders are safe and prevents asset bubbles from brewing.


 It is with such policies that a loan against property becomes an asset for the responsible borrower. Here are the reasons why this is so.


Benefits of Loan Against Property


It is cheaper: A secured loan is always cheaper than an unsecured one. The obvious reason is that the lender has recourse to tangible property if you default. This is why loan against property can save you a lot of money in interest costs. A 2%-3% drop in the interest rates can save you close to Rs5,000/- to Rs7,000/- per month (assuming a principal amount of Rs50 lakhs). You could use these lower interest rates to get rid of some of the expensive overdraft facilities or factoring for your business or for personal reasons like a marriage in the family.


It is versatile: A loan against property is available for almost any purpose that you may desire funds for. The lender will not ask too many questions about the usage of funds. This also reduces the amount of paperwork required by significantly. You may have to declare your intention about using the funds, but it is neither mandatory nor legally binding. In most cases, it is just for the lender's knowledge, a mere formality.


 It is easily available: When a lender has a tangible security backing their loans, they have very little to worry about. No wonder a loan against property is available at express speed. It usually takes less than a week from your first point of contact to having the funds in your loan account. Professional lenders may do it over a couple of nights.


However, here is a word of caution for prospective borrowers. A loan against property is a good way to borrow at lower interests if you are in control of your finances, i.e., you are sure that you will be able to make the payments even in the worst conditions. Failure to make these payments can have very unpleasant consequences. Just like all financial instruments, it is a tool, use it wisely!


About Author 
If you are looking for a loan against property at attractive interest rates, with complete flexibility and brilliant service, log on towww.online.citibank.co.in. With their professional service and lightning fast execution, they can help you save on your interest costs.