The new fund would invest a portion of the portfolio in good quality debt securities and money market instruments
ICICI Prudential Mutual Fund has launched ICICI Prudential Capital Protection Oriented Fund II - Series XI - 12 Months, a close-ended income scheme. The tenure of the scheme is 373 days.
The investment objective of the scheme is to seek to protect capital by investing a portion of the portfolio in good quality debt securities and money market instruments and also to provide capital appreciation by investing the balance in equity and equity related securities.
The minimum subscription amount is Rs5,000. The new fund offer closes 12th April 2012.
The benchmark index for the scheme is CRISIL MIP Blended Index. The fund managers are Chaitanya Pande (debt portion) and Rajat Chandak (equity portion).
While some of the large public sector banks have increased deposit rates, OBC has in fact has reduced it
New Delhi: State-owned Oriental Bank of Commerce (OBC) slashed base rate or minimum lending rate by a marginal 0.1% while fixed deposit rates on select maturities by up to 0.5%, reports PTI.
The bank has reduced the base rate by 10 basis points to 10.65% from 10.75%, OBC said in a statement.
The reduction in base rate will make all kind of loans, including housing, auto loans cheaper by at least 0.1%.
The new rate would be effective from Thursday, the lender said.
As far as deposit rates are concerned, the bank reduced interest rate on fixed deposits with maturity between 1-2 years by 0.25% to 9.50%.
For term deposits worth Rs15 lakh to Rs1 crore with maturity between 46-90 days, the new interest rate will be 0.5% lower than the existing 9%.
Further the bank has increased its rate of interest applicable for senior citizens from 0.5% to 0.6% over and above the card rate.
The new fixed deposit rates would be effective from 16 April 2012.
Interestingly, some of the large public sector banks like Bank of Baroda, Bank of India raised their deposit rates upwards last month.
Increased in the fixed deposit rates by these banks was due to tight liquidity situation.
To improve liquidity in the system, RBI in March had reduced the cash reserve ratio (CRR)-- the portion of deposits banks require to keep with the central bank -- from 5.5% to 4.75%.
With the reduction, the central bank pumped in Rs48,000 crore in the economy.
RBI asked banks to compensate investors at 8% instead of using their own interest rates of savings account
Mumbai: The Reserve Bank instructed banks to compensate investors in Relief or Saving Bonds (government securities) for the financial loss to them due to delay in crediting the interest payments at a rate of 8%, reports PTI.
“...an agency bank should compensate an investor in relief/savings bonds for financial loss due to late receipt/delayed credit of interest warrants/maturity value, at a fixed rate of 8% per annum,” the RBI said in a circular.
Interest on these bonds is paid either through interest warrants by registered post or credited to the investor's bank account. Until now, banks were compensating the investors for the financial loss at their own savings bank rate. The RBI's instructions follow deregulation of interest rate on savings bank accounts in October last year.
Under the present scenario of deregulated interest rate on the savings bank account, the RBI said that "in order to avoid ambiguity and variation in compensation rates across different agency banks" the earlier norms have been reviewed.
Relief/Savings Bonds are issued in the form of stock certificate and Bond Ledger Account (BLA) by the RBI and in the form of BLA by the Agency Banks. Relief/ Savings Bonds provide the investors to opt for cumulative/non-cumulative interest payment.
The RBI further said it may review the compensation rate as and when considered appropriate.