Leading private financial players HSBC and ICICI Prudential and the country's largest public sector bank SBI managed to qualify financial bid for managing about Rs 25,000 crore in provident fund of about four crore employees annually.
While giving the confirmation a member of the Finance and Investment Committee (FIC) of Employees Provident Fund Organization (EPFO) said, "Three asset management companies, including HSBC, ICICI Prudential and SBI have qualified in the financial bid round".
Earlier, when bid was announced 10 companies, including Reliance, Birla Sun Life, HDFC, had qualified in the technical round and later seven companies submitted financial bids.
A member of FIC of EPFO said HSBC and ICICI Prudential have quoted the lowest fee of one basis point, or 0.01 per cent, of the fund to be managed.
Regarding short listing of SBI, member said although the fee quoted by SBI and Reliance were almost same, but SBI was able to qualify the financial bid round as it had scored more points on technical grounds.
Three players selected by the FIC can be appointed to manage funds after Central Board of Trustees (CBT) gives its nod which is scheduled to meet on July 29.
The total amount of EPFO is around Rs 2, 40,000 crore with incremental deposits to the tune of Rs 25,000 crore every year.
In the beginning the EPFO will ask the fund managers to manage the incremental deposits only. Sources added once the private players are able to present better returns, they might be asked to manage additional funds.
The sources said this will help the EPFO to offer high interest rate to its subscribers as against 8.5 per cent at present.
Monday, July 28, 2008
Friday, July 18, 2008
NCDRC in its order told banks to pay for delay in cheque clearance
The National Consumer Disputes Redressal Commission (NCDRC) in its July 14 judgment has asked banks to credit local cheques to accountholders account the same day or at the most the next day. The commission in its order said the outstation cheques should be encashed between seven and 14 days, depending upon the distance from the place where the cheque is issued.
The commission in its order said you can claim interest from a bank for delayed encashment of your outstation cheques. “If there is any delay in collection of the said (outstation) cheques beyond the period… interest at fixed deposit rate, or at a specified rate as per the respective policy of the banks, is to be paid to the payee of the cheques.”
The judgment has come on the petition filed by an advocate Atul Nanda. As per the order of the commission the banks will have to pay interest to customers for delayed encashment of local cheques as well. Usually it takes up to three days to be encashed. While Nanda in his consumer litigation has said the delay in crediting the cheques to the consumers’ account was leading to “undue enrichment” of banks, which were earning crores in interest on the customers’ money for the delayed period.
The commission chairman Justice M. B. Shah directed the banks to abide by the order within two weeks. He asked the banks to write in bold letters in every branch’s notice board the salient features of their policies on collection period of outstation cheques and interest payable in case of delay. Justice Shah has asked the RBI to monitor the order.
The commission in its order said you can claim interest from a bank for delayed encashment of your outstation cheques. “If there is any delay in collection of the said (outstation) cheques beyond the period… interest at fixed deposit rate, or at a specified rate as per the respective policy of the banks, is to be paid to the payee of the cheques.”
The judgment has come on the petition filed by an advocate Atul Nanda. As per the order of the commission the banks will have to pay interest to customers for delayed encashment of local cheques as well. Usually it takes up to three days to be encashed. While Nanda in his consumer litigation has said the delay in crediting the cheques to the consumers’ account was leading to “undue enrichment” of banks, which were earning crores in interest on the customers’ money for the delayed period.
The commission chairman Justice M. B. Shah directed the banks to abide by the order within two weeks. He asked the banks to write in bold letters in every branch’s notice board the salient features of their policies on collection period of outstation cheques and interest payable in case of delay. Justice Shah has asked the RBI to monitor the order.
Wednesday, July 16, 2008
Uttaranchal Gramin Bank to open three branches exclusively for women
Soon Uttaranchal Gramin Bank will be opening three branches exclusively for women in the hill state of Uttarakhand. The first such branch has already started operation at Dehradun’s Indira Nagar locality and being fully managed by women only.
In this branch only women are allowed to open their accounts. This is the 121st branch of the bank. There is a proposal of opening of three more such branches in Pauri and Pithoragarh districts.
A special women centre has also been opened at the head office of the bank. This centre has been started with the help from NABARD. The main drive of the women branch will be to attract Self-Help Groups (SHGs) and Non-Government Organizations (NGOs), having mostly women representatives.
"By opening women branches, we want to salute the women of the hill state who are known as matrishakti' (mothers' power) in Uttarakhand," said Chairman of the Uttaranchal Gramin Bank Threesh Kapoor.
In 2006 Uttaranchal Gramin Bank was formed with the merger of Alaknanda Bank, Ganga-Yamuna Bank and Pithoragarh bank. The bank has made a profit of Rs 8.83 crore before tax this year. This year bank has registered a jump of 233 per cent as compared to the last year.
The exceptional rise in the profit is mainly because of the merger of three banks. The bank is also promoting local artists from the state for this it has set up an art gallery at its head office.
In this branch only women are allowed to open their accounts. This is the 121st branch of the bank. There is a proposal of opening of three more such branches in Pauri and Pithoragarh districts.
A special women centre has also been opened at the head office of the bank. This centre has been started with the help from NABARD. The main drive of the women branch will be to attract Self-Help Groups (SHGs) and Non-Government Organizations (NGOs), having mostly women representatives.
"By opening women branches, we want to salute the women of the hill state who are known as matrishakti' (mothers' power) in Uttarakhand," said Chairman of the Uttaranchal Gramin Bank Threesh Kapoor.
In 2006 Uttaranchal Gramin Bank was formed with the merger of Alaknanda Bank, Ganga-Yamuna Bank and Pithoragarh bank. The bank has made a profit of Rs 8.83 crore before tax this year. This year bank has registered a jump of 233 per cent as compared to the last year.
The exceptional rise in the profit is mainly because of the merger of three banks. The bank is also promoting local artists from the state for this it has set up an art gallery at its head office.
Monday, July 14, 2008
IndusInd Bank offers attractive interest rates at 10 per cent per annum
IndusInd Bank Ltd, a new-generation private-sector bank in India, is offering 400 days attractive fixed deposit rates at 10 per cent per annum from July 2008. Bank in a statement said "We are feeling happy to announce the competitive fixed deposits rates in the industry once again. Bank has also started 200 days fixed deposits rate at 8.75% per annum."
Currently bank has around 180 branches network spread 147 geographical locations in 28 states and union territories across the country. Bank has also established representative office overseas each in Dubai and London.
Since its setting up bank has been driven by state-of-the-art technology. Bank has multi-lateral tie-ups with other banks to provide access to more than 18000 ATMs for its customers.
It enjoys clearing bank status for both major stock exchanges - BSE and NSE - and three major commodity exchanges in the country - MCX, NCDEX, and NMCE. It also offers DP facilities for stock and commodity segments.
According to bank statement bank has been awarded the highest A1+ rating for its Certificates of Deposits by ICRA and the highest P1+ rating for its FDs by CRISIL. CRISIL has also allocated the highest safety ratings to the Bank's Pass through Certificates for securitized assets.
Currently bank has around 180 branches network spread 147 geographical locations in 28 states and union territories across the country. Bank has also established representative office overseas each in Dubai and London.
Since its setting up bank has been driven by state-of-the-art technology. Bank has multi-lateral tie-ups with other banks to provide access to more than 18000 ATMs for its customers.
It enjoys clearing bank status for both major stock exchanges - BSE and NSE - and three major commodity exchanges in the country - MCX, NCDEX, and NMCE. It also offers DP facilities for stock and commodity segments.
According to bank statement bank has been awarded the highest A1+ rating for its Certificates of Deposits by ICRA and the highest P1+ rating for its FDs by CRISIL. CRISIL has also allocated the highest safety ratings to the Bank's Pass through Certificates for securitized assets.
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