Bharosa Gold Loan will offer a loan amount of up to 140% of gold’s valuation
HDFC Bank has launched ‘Bharosa Gold Loan’, a product tailor-made for the rural customer. This is an important step in the Bank’s mission to provide ‘Viable Finance’ to the millions of underprivileged who do not have access to credit lines offered by organised finance channels.
The product will offer a loan amount of up to 140% of gold’s valuation. Over the next six months, the Bank will take ‘Bharosa Gold Loan’ to 1,300 branches in over 950 locations across the country. A vast majority of this expansion will take place in semiurban and rural regions. The objective is to cater to 5 lakh potential rural and underprivileged customers in 10,000 villages, aiming to meet their credit needs and help move into mainstream banking.
As part of the process, the customer is given a detailed valuation certificate mentioning a) the itemised description of gold, b) weight and c) amount lent. This is then signed by the customer and the Bank to ensure complete transparency. Every customer is met by a bank officer to ensure customer education on the loan prior to taking the funds. Finally, the jewellery is sealed in a three-layered tamper-proof manner and put in a vault, in line with the best safety standards. Further, the bank contacts the customer on maturity to help the customer renew the loan or repay. This communication ensures customers do not miss their maturity date and risk sale of their gold in the custody of the bank.
Dhiraj Relli, branch banking head, South-2, said: “While we’re rolling out ‘Bharosa Gold Loan’ nationally, we’ll ensure that it is available in every part of rural Kerala through our rapidly expanding branch network. We’ll use gold loans to bring more customers into mainstream banking, particularly in smaller, developing regions of the state.”
HDFC Bank has a Board-approved plan to bring 10 million families into the banking fold in five years through its ‘Viable Finance’ initiative. As part of this, the Bank has held over 400 grameen loan melas in the hinterland in the last two years, extending credit in the form of two-wheeler loans, commercial vehicle financing, gold loan, etc, to people who require them the most.
Describing the decision as harmful, agriculture minister Sharad Pawar said the cotton growers in Gujarat, Andhra Pradesh and Madhya Pradesh are in great distress as traders have stopped buying cotton from them after the decision
New Delhi: Seeking prime minister Manmohan Singh’s intervention, agriculture minister Sharad Pawar on Tuesday said he was not consulted on the commerce ministry’s decision to ban cotton exports, reports PTI.
“I was kept in dark on the issue. I came to know about this only after a notification was issued by DGFT (Directorate General of Foreign Trade) on Monday,” Mr Pawar told reporters here on the sidelines of ICAR conference.
Mr Pawar said he has written a letter to the prime minister seeking revocation of the ban on cotton exports.
He said that such a decision, which would impact lakhs of farmers, should have been taken after proper consultations either in the Cabinet Committee on Economic Affairs or Cabinet Committee on Prices, like it is done in the case of wheat and sugar.
Describing the decision as harmful, Mr Pawar said the cotton growers in Gujarat, Andhra Pradesh and Madhya Pradesh are in great distress as traders have stopped buying cotton from them after the decision.
“Export of cotton has been prohibited till further orders,” the DGFT said in a notification on Monday.
The exports against registration certificates already issued would also be prohibited, it added.
The move is aimed at boosting domestic supply.
Mr Pawar as well as the textile industry was surprised by the decision. The move has also come in for a sharp criticism from Gujarat chief minister Narendra Modi, who said in a letter to prime minister that he was ‘shocked’ over the decision that would prove ‘disastrous’ for farmers.
With the acquisition of 4.41%, LIC’s stake in ONGC has gone up to 9.48%. As per the Insurance Regulatory and Development Authority’s (guidelines, an insurance firm’s holding should not exceed 10% in any company
New Delhi: Exploration and refining major Oil and Natural Gas Corporation (ONGC) today said the government’s holding in the company has come down by 4.91% to 69.23% following stake sale last week, reports PTI.
Prior to the Offer for Sale, the government had 74.14% stake in ONGC.
The government sold 42.04 crore shares in ONGC and garnered Rs12,766 crore, ONGC said in a filing on the BSE.
Of the 42.04 crore shares auctioned last week, state-owned insurance giant Life Insurance Corporation of India (LIC) picked up 37.71 crore shares in the company and its total holding has gone up to 9.48%.
Taking into account the average price of Rs303.67 a share, the country’s largest insurer would have invested around Rs 11,450 crore during the first ever auction of PSU shares on 1st March.
LIC has bought 37.71 crore shares representing 4.41% stake in ONGC through open market purchase.
The government auctioned 5% of its stake, or 44.77 crore shares, in ONGC on 1st March.
While the ONGC auction was subscribed 98.3%, LIC had picked up over 84% of the shares on offer. The remaining was bought by institutional and retail investors.
With the acquisition of 4.41%, LIC’s stake in ONGC has gone up to 9.48%, the filing added. As per the Insurance Regulatory and Development Authority’s (IRDA) guidelines, an insurance firm’s holding should not exceed 10% in any company.